We generate value in communities

Corporate social responsibility strategy

At Gentera we are committed to the generation of social value aligned with our strategy, strengthening our entrepreneur culture and financial education, basic attributes of our business model. Therefore, we assign 2% of net annual profits to create the corporate social responsibility fund.

This fund has its own corporate governance body, comprised by an External Relations and Social Responsibility Committee, who reports directly to Gentera’s Board of Directors. In addition, the fund is internally audited as well as the Foundation’s performance, both internal and externally.

Our strategy involves:

1. Fundación Gentera
2. Corporate responsibility in all Gentera’s companies

We permanently seek to contribute more to the community, so we have established goals for 2015 regarding social responsibility.

• Maintain and improve the number of beneficiaries in depth and reach with our education and corporate responsibility project in communities
• Keep long term alliances to delve the impact on education in its three aspects: financial, formal and for entrepreneurs, promoting an entrepreneur culture
• Motivate a donation culture, with 30% employee participation rate
• Drive our volunteering program, which is aligned to strengthen the entrepreneur culture in all communities where we have presence
• Continue aligning our corporate social responsibility actions to the Group’s strategic actions
• Generate and promote financial education programs for the communities where we operate
• Launch the hydro-meteorological and geological risks prevention campaign in all regions where we have presence, action plan and alliances development
• Undertake the community intervention program to reinforce the social organization of some communities

Our goals are oriented to impact on communities (number of people assisted), man-hours destined for projects, number of employees who interacted, as well as the improvement of the beneficiaries life quality (by means of surveys).

In 2014, the corporate social responsibility fund amounted to over PS. 45 million for several projects’ development

With the participation of clients and employees we carry our corporate social responsibility strategies aimed to support the most needed communities through:

• Corporate responsibility programs such as Compartamos with the Community Day
• Financial education training for employees, clients and the community
• Donations and strategic alliances with non-profit organization which spread education in the communities where we have presence
• Fundación Gentera’s volunteering program, through which we promote employees’ participation in their communities and with non-profit organizations
• Sustainable development and actions to protect the environment through the environmental plan

	Education	Corporate responsiblity	Environment	Management costs	Fundación Gentera	TOTAL
Support amount	$20’289,712.76	$10’818,630.89	$1’252,118.79	$757,635.11	$12’146,432.45	$45’264,530.00

PS. 32.1 million donated to several NGO

2014 corporate social responsibility actions:

• Toys collection for children in December; 567 employees participated, five institutions benefited, 601 donated toys
• 409 electronic equipment donated; 4,618 beneficiaries with an investment of PS. 2’762,103
• Contingency Program
  • Aid for damages in employees households due to climate factors in Baja California Sur, Chiapas, Coahuila, Tabasco and Veracruz; PS. 790,500 donated in grocery coupons for 196 affected employees
  • Aid for damages caused by Oldie hurricane in Baja California Sur in alliance with Cadena A.C.; PS. 70,000 donated for 70 water filters and 10,000 people benefited
  • Compartamos with the Community day in San Jose Los Cabos which included the restauration of the San Jose Viejo community park and medical checkups for 80 people, with and investment of PS. 164,661

Fundación Gentera

True to our origin as a non-profit organization and committed to the generation of social, economic and human value we created Fundación Gentera, with the objective to work for financial inclusion supporting education as a welfare and development element in communities. The foundation was launched on November 4, 2014 for employees, and throughout 2015 we will promote it outside the Group.

We allot investments in communities which are aligned to the business strategy, jointly with strategic partners –NGO– to follow, monitor and report objectives of the educational projects to commence.

Thus, not only are we benefiting communities, but also our business and brands are fortified, we make a great impression on our clients’ life, the employees pride and sense of belonging grows and we retain and attract talent.

We believe that the universal access to a quality education, with gender equity is of the upmost importance, so we support educational project based on three institutional principles: inclusion, altruism and transcendence.

The action lines in which we focus our activities are:

• 1. Formal education: we grant scholarships for teachers and drive education in children, young adults and adults
• 2. Entrepreneurs: e promote adult development through abilities’ improvement in trades and productive projects and we favor a healthy productive inclusion by means of positive models for young adults
• 3. Financial education: we encourage the development of competencies and knowledge in savings, budget, loans and insurance topics
• 4. Volunteering: we drive a service culture that impact communities
• 5. Solidary assistance: we support communities in case of emergencies, like natural disasters

2014 Investment

Fundación Gentera	2014
Donations	$12’146,432.5
Amount exerted	$ 6’149,990.7
Dental health projects in communities where we have presence	$1’164,877.9
Formal, financial and for entrepreneurs education projects	$1’915,826.5
Volunteering	$897,512.1
Other expenses ( operative management and administrative costs)	$2’171,774.2

Education

In 2014 we decided to modify our social responsibility focus, providing support to projects pursuing benefiting education, only attribute in which we base our efforts. It is divided in three aspects:

• Financial education
• Formal education
• Education for the entrepreneur in its business

We want to acquire a deeper knowledge of the communities needs in order to contribute with their social, economic and human development. Therefore, we conducted anthropologic studies regarding education’s impact on money’s perception by our clients and communities, with their results showing that education is highly valued by those audiences whom we have a direct relationship with in the communities, for they see it as an investment and platform to achieve a superior future, through access to better opportunities.

Consequently, we have developed several initiatives for financial literacy and education for the population at the bottom of the pyramid in the communities where we operate.

Educational continuity project

We reiterate our commitment with Mexico’s progress, so we drive actions that promote education –key element for sustainable development–. We believe that the best way to contribute to the population’s development is through an inclusive education, one that helps each beneficiary to obtain a better life quality for himself and his family. For this purpose we collaborate with the public sector, the third sector and private institutions to achieve a quality education, accessible for all population.

Goldman Sachs Foundation’s research have demonstrated that women’s education guides families to obtain more productive and healthier jobs, in addition that communities are more likely to thrivewww.goldmansachs.com. According to these results, jointly with the National Institute for Adult Education (INEA), we established the Educational Continuity project to bring inclusive education to the bottom of the pyramid and make our clients literate.

With this end we have generated synergies with non-profit organizations such as León Trece Foundation, Hogares Foundation and Crecer Foundation in Puebla, Pinotepa, Coatzacoalcos and Mexico City. We strive to create social mobility in women so they can obtain their elementary or middle school’s certificate within a year. We accomplished that 10.57% of our branches participate in this alliance with INEA.

Call for education

For six consecutive years, Gentera has invited non-profit organizations to participate in the call to support education, nominating educational projects based on the aspects of formal education, financial and for entrepreneurs.

This year we also invited employees to join the call through The Vocation of giving calls us campaign. Thus, employees may donate certain amount of their payroll and sponsor educational projects.

• Donate
  We seek to create a donation culture and demonstrate our service vocation. Employees participate donating twice a month a percentage of their payroll to Fundación Gentera, who allocated the collected resources to institutions with educational projects. For each donated peso, Fundación Gentera donates another.
• Sponsor
  Our employees’ role is more significant with these actions, since they can sponsor institutions with educational projects. These nominate their project in the Call for education and, if selected, Fundación Gentera grants a donation for its development and battle against the educational gap in the country.

Social responsibility alliances

According to this new focus and understanding our clients’ context, in 2014 we established several alliances to grant education more people, through three cores:

The first one is an alliance with INEA, through which we support Compartamos Banco clients’ to conclude their basic education. For this project we also have the support of León Trece Foundation, Hogares Foundation and Crecer Foundation.

Secondly, through non-profit organizations we create sustainable projects that promote education actions. Some of them are:

• 1. Fundación Quiera, A.C.

  We supported a generation of 90 young adults who are studying middle and high school so they conclude their studies in the 2014-2015 school cycle. This program was carried out in Oaxaca, Guanajuato, Sonora, Mexico City and State of Mexico.

• 2. ProEducación, I.A.P.

  The “Comprehensive School” program 2014-2015 cycle, is for public elementary schools and promotes the school community’s personal development, as well as the participation and collaboration skills among children. It includes the municipalities of Puebla, Morelos and the State of Mexico. We have benefited 1,200 students, 90 teachers and 725 parents.

• 3. AMNU Jóvenes

  The 2014-2015 “Gentera Joint Strategy of Community Development – Sports for Sharing” seeks to strengthen values and civility for children in elementary schools, encouraging the UN eight millennium development goals. It takes place in four municipalities of Mexico and Guatemala. It has benefited over 2,000 members of the school community.

• 4. Fundación NEMI, A.C.

  Aiming to promote financial education and environmental protection in children and young adults we put on 252 representations of the “Sharing adventures” play in public elementary and middle schools. Likewise, we gave 500 “Life project and financial education” conferences in middle public schools in Mexico.

• 5. Nuestros Pequeños Hermanos

  We granted scholarships for 37 students in Morelos State to offer them a comprehensive education during the 2014-2015 cycle.

• 6. Bécalos

  We developed two strategies implemented in the 2014-2015 cycle.

• Call to Compartamos clients’ children in Guerrero state to study high school and technic bachelor degrees, benefiting 249 students in a year.
• Though Worldfund, we supported training and preparation for elementary schools directors and teachers; we benefited 34 directors in Jalisco and 34 teachers throughout Mexico.

• 7. Cordem, A.B.P.

  We strive to empower women in Nuevo Leon State offering them a high school and professional education. Also, we provide psychological counseling for the duration of their scholarship to complete this empowerment. 37 benefited women.

• 8. Sistema Desem, A.C.

  The project Financial Park Mobile Drive 2 is a financial education program which includes a 2.5 hours workshop that provides tools for a budget preparation through correct and informed decision making in a simulations. It applies in Puebla, Veracruz, Tamaulipas, Nuevo Leon, Coahuila and Durango; benefiting 15,000 young adults between 15 and 23 years.

• 9. Vida y Familia México, I.A.P.

  We distribute work tools to women beneficiaries. By leaving the household duties, they aspire to better opportunities or can start their own business to achieve financial security and the possibility to offer a worthy life for their children.

• 10. Fundación Televisa

  Though the Children with Value 2014 Project we support the manufacture of 760,000 value books and calendars and professors’ guides to raise awareness and strengthen values in children, teachers and their families in Mexico.

• 11. Unicef

  We are trying to supplement children’s health reports; hence, their families will have more information regarding their kids’ development.

Third, jointly with Proempleo, we granted 2,000 scholarships for entrepreneurs. With the Undertake Workshop we motivate clients –people with talent and attitude– in Mexico City from Compartamos Banco and Yastás who need support to achieve their goals through training and consulting to improve their businesses.

To identify the impact this workshop had, we enquired the beneficiaries via phone survey. The results showed that people value money management learning, since it allows them to organize and understand their business, persona and entrepreneur role.

Corporate volunteering

We promote employees, families and clients volunteering, creating action networks to benefit communities through programs focused on citizen action, environmental protection and conservation and support to non-profit organizations.

We carry out awareness activities in internal events to promote and motivate volunteering culture among our employees.

Our volunteering program is sustained by a financial support policy, which establishes an incentive so employees collaborate in volunteering in their communities. This is only applicable in branches and may take effect for community development, environment and assistance in all Gentera’s companies.

2014 activities:

• Mexico:
  Compartamos with the Community Day
• Peru:
  Chocolatada / Compartamos Chocolatada / Compartamos Financiera organized a gathering with children, elder adults and people in underprivileged communities in each of its Services Offices. Among the activities that took place were children shows, games and dancing; as well as distribution of chocolates, panetones and presents
  Investment $80,265
• Guatemala:
  Children’s day / each Compartamos’ branch organized activities to celebrate this holiday in social institutions in their communities. Employees donated their time, supplying children with joy, fun, candies and toys
  Investment: $84,265

Volunteering with economic resources
Mexico	Branches	298
	Employees	6,889
	Volunteering hours	24,882
	Financial support	$897,512
Peru	Branches	54
	Employees	1,085
	Volunteering hours	3,405
	Financial support	$80,265
Guatemala	Branches	28
	Employees	387
	Volunteering hours	1,435
	Financial support	$84,265

Volunteering (employees)*
Country	Mexico			Peru	Guatemala	Total
Company	Compartamos Banco and Gentera	Yastás	Aterna	Compartamos Financiera	Compartamos S.A.
Volunteering employees	12,136	40	7	1,102	387	13,672
% of participating employees vs 2014 workforce	74%	28%	28%	54%	78%	72%
Number of branches	509			54	28	591
*Total employees who volunteered with and without economic resource.

Volunteering hours*
Country	Mexico			Peru	Guatemala	Total
Company	Compartamos Banco and Gentera	Yastás	Aterna	Compartamos Financiera	Compartamos S.A.
Total volunteering hours	55,949	141	18	3,511	1,435	61,054
*Total volunteering hours with and without economic resource.

Compartamos with the Community Day

This program aims to contribute with the comprehensive development of people and their communities. It seeks to promote families’ wellbeing and health prevention, as well as encouraging a wholesome family union.

We visit communities where we have presence and in one day we refurbish public spaces, like parks and schools to benefit its inhabitants. Additionally, we provide health services and promote family gathering through outdoor movie projections with snacks for every family.

Compartamos with the Community Day includes:

• Refurbishing:
  We restore public spaces like parks, sport clubs and schools with the participation of employees, families, friends, clients and the communities’ inhabitants.
• Preventive health:
  
  • General medical review services
  • Dental cleaning
  • Nutritional valuation: measurement of size, weight, waist size, relation of muscle and fat
  • Sugar test during fast
  • Blood pressure
  • Bone density tests
  • Medical consultation / orientation
  • Sight exams
  • Audiometry

26 Compartamos with the Community Day in 15 states of Mexico

3 Compartamos with the Community Day in three regions in Guatemala

Compartamos withe the community day
Country	Mexico	Guatemala
Volunteer employees	2,135	158
Family, clients and community volunteers	336	231
Volunteer hours	10,675	790
Approximate number of indirect beneficiaries	36,572	1,756
Investment	$8’079,560	$665,008

In order to provide greater benefits to the communities and increase a social impact, we generated an alliance with Hogares Foundation for a pilot test in San Luis Potosi called “Hogares Physical-Urban Intervention Models”. Its goal is to originate community development processes which involve inhabitants in their environment’s transformation, based on their specific needs. The three part alliance comprised by Compartamos Banco-Hogares Foundaion- community allows us to join efforts and resources to increase the community’s welfare.

Through this model we encourage community values that create more social cohesion and local identity. Hence, actions are perdurable due to the generated community’s commitment and the responsibility sense assumed.

This model lasts three months and consists of three stages.

• First stage
  Preparation of a pre-diagnosis to get a general framework of the selected residential project.
• Second stage
  Teaching of planning workshops, which seeks that neighbors are the leaders in their reality’s transformation, identifying their main needs and solutions for them through plans and projects.
• Third stage
  Once solutions are set, a call begins to add neighbors who participate in the project, followed by the creation of different committees which are in charge of previous activities required for the project’s execution.

The results for the 2014 model were:

• 227 household visits
• Two workshops with the participation of 68 children and 21 adults
• 1,800 brochures and 40 posters
• Over 250 services
• 13 active neighbors in the maintenance plan

In 2015 our goal is to replicate this scheme in six additional regions.

Young Adults Project

This is a program focused on the value chain compliance, based on four moments: attract, inspire, transform and drive.

This initiative’s purpose is defined as Young Adults’ Healthy Productive Inclusion (IPS), who during their participation in the program are granted ideal conditions to increase their possibilities to succeed, providing them the opportunity to build their life project sustained on values.

In 2013 the exploration stage began, which entailed 78 interviews to experts on social topics related to young adults; 10 investigations regarding the main subjects related to youth and the execution of four pilots to establish the first direct contact with young adults from diverse backgrounds.

Will the experience and knowledge acquired, the second stage initiated, involving the discovery and representation of the “youth phenomenon” defined as the crucial moment young adults go through in their quest to development, the moment they start making transcendental decisions.

All information provided in the training program allows young adults to manage their reality and intra/inter personal relationships, through experiences and lessons towards their abilities’ development, which lead them to want, know and be able to acquire a comprehensive growth, including the success factor.

During 2014 different content and strategies models were created for the Attraction and Inspiration stages, same that were implemented gradually and fruitfully. Hence, three laboratory test were started in branches –Iztapalapa, Oaxaca and Indios Verdes– which had a significant response to attract young adults to the program.

The initiative is in the process of constant improvement to involve young adults actively in their training process, so their feedback is fundamental to incorporate value to the project permanently.

The 2015 challenge will be to have base content, such as a program of clearly defined skills, material development for young entrepreneurs, financial education linked to teenagers, among others; besides incorporating fun management technologic platforms which support the model, are attractive for young adults and provide the necessary skills and competencies according to each profile.

Environmental footprint

Gentera belongs to the financial services sector, so it has a low impact on the environment; therefore we have generic environmental policies which address the energy, water, emission, waste and biodiversity aspects. Even though we do not have an environmental indicators management system, we are permanently working on the observance of certain variables to understand details regarding our consumptions, savings and opportunity areas to reduce even father our impact.

Evidence of this is our alliance with the National Autonomous University of Mexico (UNAM) through their University Environment Program. In 2011 we diagnosed our environmental performance considering: efficient use of energy, water, waste generation and disposal, procurement policy, the air quality within our branches and greenhouse gasses reduction, focused on responsible consumption. The diagnosis suggestions have been helpful for the implementation of best practices in the Group.

Our most significant initiative is the LEED Certification for Interior Design Project in our corporate building. Throughout its construction several factors were considered to decrease our environmental impact, such as accessible location that reduces pollution due to the numerous communication and transport routs that surround it; water savings, since all rain water is collected, treated and used for cooling towers which maintain the building’s temperature; energy saving, all computer and electric equipment is certified in energy consumption reduction, besides having energy saving systems; emissions reduction, by having a underground parking lot which allows to reduce heat emissions provoked by solar radiation; use of recycled materials and resources among other benefits.

Community and environment investments represent our opportunity to give back, enjoy a better life quality and ensure the business permanence in time (sustainability). Therefore, as a fundamental part for our sustainability and social responsibility strategy we allot human and financial resources for managing and monitoring environmental topics for our Group.

Energy

Energy is one of our Group’s greatest consumptions, even when our operations are different from traditional banking. The facilities for which we consume fuels from non-renewable sources are thermal, acoustic and luminous energy parameters, consisting of ventilation, conditioning, circulation, renewal and air filtration systems, as well as the humidity and temperature control system. The energy we consume with the use of these mechanisms is measured quarterly in Mexico, while in Peru and Guatemala is calculated annually by the corresponding bill.

Water

This natural resource is indispensable for life, so in Gentera we are convinced that by protecting it we guarantee our business’ permanence in the long term. However, due to the sector in which we operate, our water consumption comes from the municipal supply and other suppliers of water and is minimal.

Nonetheless, we calculate our consumption according to standardized quantities and extrapolate it to our workforce, which means, per employee. We do not have quantitative reduction goals, but we seek to install some saving facilities in our corporate building and branches, besides the set objective of our rain water treatment and collection plant startup.

8.3 million m³ of water annually consumed in the corporate building and branches, equivalent to 505 liters per employee

Emissions

Climate change caused by high concentration of greenhouse gas (GHG) emissions is a phenomenon that occurs worldwide and its consequences can have a direct negative impact on population and indirect to our business. It can produce socioeconomic changes such as loss of farmland, floods, hurricanes, epidemics, etc., which would lead to alterations in local economic activity. In contrast, the positive aspects lie in generating modifications in greenhouse gas concentrations in the atmosphere, through mitigation and prevention, causing the feasibility of generating businesses that meet those needs.

Although the General Law on Climate Change has no impact our Group since our emissions are not significant, in Gentera we have received the support of expert consultants for three consecutive years for the measurement of greenhouse gas emissions, either by direct or indirect effect of our operations. This measurement, in addition to identifying our environmental footprint, provides us the basis for planning and management of energy efficiencies and transportation, which are the main factors that increase the generation of greenhouse gases.

The methodology we use to calculate Gentera’s inventory of greenhouse gas emissions for Scope 1 and 2, corresponds to the Corporate Accounting and Reporting Standard developed by the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI), also known as the WBCSD/WRI GHG Protocol. In addition, since 2012 we base calculations for Scope 1 on Petróleos Mexicanos (Pemex), the Department of Energy (SENER) and the Intergovernmental Panel on Climate Change (IPCC), to obtain emission factors, the calorific value and density/liter, respectively. For Scope 2 calculations, the emission factor considered was taken from the GHG Protocol Mexico.

LEED benefits

Reduction of 15.2% in energy consumption for lighting

Use of ecologic refrigerants, without CFC (chlorofluorocarbons) in heating, ventilation, conditioning and cooling systems

Air conditioning ducts designed to optimize efficiency

To consult our Inventory of Greenhouse Gas emissions 2014 Report, please visit:here

A considerable part of the CO₂ emissions generated by a service company like ours is generated from employees’ transportation to work. Therefore, as part of our culture awareness, we have encouraged the promotion of good practices, such as carpooling through the Aventones program.

This initiative, based on environmental policies, is a private network that promotes car-sharing within friendly communities, such as companies, government agencies and universities. It is an online system where people belonging to the same institution organize and communicate with each other to find routes, schedules and voids safely, making the most use of resources, providing as incentive preferential parking spaces for people who share vehicles with three or four employees.

Waste

As a financial services group, our largest source of waste is paper. We have arranged a multidisciplinary environmental workgroup, comprised of different areas which administer and recommend actions in favor of the environment, as well as waste separation and recycling. Each quarter we generate a quantitative report on each project’s progress. Thus, we begin to develop a measurement basis, which in the future will allow us to identify opportunities and implement eco efficiencies.

The waste water we generate comes from our facilities use, not from industrial processes. Every year we conduct a study of the corporate building’s waste water in specialized laboratories, based on the Single Environmental License (LAU) of Mexico City.

We have implemented a waste separation process in our corporate building and in branches, where we place containers for its separation in organic, inorganic and recyclable. During 2014, we conducted a cleaning campaign in these branches to recycle as much waste as possible. Additionally, we give talks to employees and cleaning staff to sensitize and train them in the recycling process and carry out monthly awareness campaigns.

In 2015 we will launch an awareness pilot of waste separation in our branches. Likewise, we will seek to increase the percentage of waste being recycled in our corporate building, taking organic waste to compost.

We ensure that the final destination of recycled waste is proper, as well as generate a social benefit with its sale, so we approached San Ignacio de Loyola Foundation, who in turn request permits to their final suppliers to meet this goal. This foundation collects our aluminum, glass, paper, plastic and cardboard waste. With the proceeds of this sale, we have supported education in the Sierra Tarahumara. In 2014 our waste was:

Biodiversity

At Gentera we align to the applicable law in all our operations and credits granting. However, we are not a company with direct impact on biodiversity. Based on our environmental policy we establish guidelines for the protection of the same.

To reduce our operations’ impacts we have alliances non-profit organizations through which we seek to drive ecosystems preservation actions. Additionally, we analyze the location of our branches in protected areas, possess a product guide establishing the businesses we cannot grant credits to and have the Forest Adoption program.

The analysis results showed that 11 branches in Mexico are in protected areas, in the states of Chiapas, Veracruz, Puebla, Campeche, Tabasco, Tlaxcala and State of Mexico. Hence, we permanently attempt to reduce the impact we might produce in these areas.

In Alliance with Reforestamos México A.C., we encourage the forests’ adoption through the strengthening of entrepreneur abilities in communities who inhabit it, forest management and restauration. Since 2011 we have adopted 16 hectares in the Nevado de Toluca.

With this program’s annual reports we follow the reforestation survival percentage, number of direct beneficiaries and results from productive projects and number of volunteers.