The company promotes drip irrigation among its agricultural suppliers, which saves up to 60% of water consumption.

Mexico City, March 22, 2024. In Mexico, 8 out of every 10 liters of concessioned water are destined for agricultural production, and 76% of the total concessioned water in the country[1] is destined for the production of food for human consumption, forage and livestock production. In this context, to commemorate World Water Day, Grupo Herdez reaffirms its commitment to sustainable water management as a leader in the food industry.

Through its sustainability strategy, the company, with 110 years of history in Mexico, contributes to the fulfillment of 7 of the Sustainable Development Goals (SDG) of the United Nations (UN) 2030 Agenda, among which is SDG 6 Clean Water and Sanitation.

As part of this objective, projects are implemented with the necessary measures to guarantee universal access to safe and affordable drinking water by 2030, as well as considerably increase the efficient use of water resources in all sectors.

Through its Sustainable and Regenerative Agriculture Program, Grupo Herdez and its suppliers of fresh raw materials, combine actions and strategies that benefit the generation of quality agricultural products, seeking the conservation of the environment. In terms of water use management, the program promotes the adoption of drip irrigation systems, which have more efficient performance and are more environmentally friendly. With this system, up to 60% of water consumption is saved compared to traditional systems.

Also, as part of the commitments of the 2030 Agenda, we seek to achieve universal and equitable access to drinking water. Globally, between 2015 and 2022, the proportion of the world’s population with access to safely managed drinking water services increased from 69% to 73%, according to the UN. Grupo Herdez has joined these efforts with the Saber Nutrir® program, which facilitates access to drinking water in vulnerable communities.

The scarcity and poor quality of water affect children’s nutrition, so the program has focused on providing cisterns with rainwater collection, purifying wells and bathrooms with biodigesters in the communities. In 2023, 265 stormwater cisterns, 74 hygiene and sanitation systems and 160 purifiers were installed in Chiapas, State of Mexico, Yucatán and Jalisco.

This is how Grupo Herdez promotes, from different fronts, the proper management of water resources: through its suppliers with the sustainable agriculture program, in the communities with Saber Nutrir, and with financial tools, such as the bonus linked to sustainability that issued in 2022 on the Mexican Stock Exchange. The Company’s commitment with this emission is to reduce 25.0% of its water consumption per ton produced by 2030.

In recent years, in the Mexican stock market, bonds linked to sustainability have become popular as a debt instrument that seeks to raise resources that are subsequently allocated to projects or achievements that positively impact the environment and society. Thus, the company that issues them, through an intermediary, must comply with key sustainable performance indicators. In 2023, the Mexican Stock Exchange (BMV) reached the record figure of 131,119 million pesos distributed through 40 thematic bond issues.

• To learn more about the company’s actions on financial and environmental issues, visit the 2022 Results Report.