RSE - Reporte de Sustentabilidad de Vitro 2008/2009

8/7/2019 RSE - Reporte de Sustentabilidad de Vitro 2008/2009

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SUSTAINABLE DEVELOPMENT REPORT | 2009

TABLE OF CONTENTS

GRI 3.12

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER .......................................................................................................... 2

VITRO: THE GLASS COMPANY ........................................................................................................................................ 4

FINANCIAL HIGHLIGHTS ............................................................................................................................................ 5

INTERNATIONAL PRESENCE ....................................................................................................................................... 6

AN ACCREDITED COMPANY....................................................................................................................................... 6

THE VITRO WAY ......................................................................................................................................................... 7

SUSTAINABLE DEVELOPMENT MODEL ...................................................................................................................... 8

PRINCIPLES THAT GOVERN THIS REPORT ................................................................................................................ 10

2009 HIGHLIGHTS .................................................................................................................................................... 11

RESPONSIBLE CORPORATE MANAGEMENT ................................................................................................................. 11

CONSOLIDATION OF CORPORATE GOVERNANCE ................................................................................................... 11

COMMITMENT TO TRANSPARENCY .................................................................................................................... 12

CORPORATE OPENNESS ...................................................................................................................................... 14

COMMITMENT TO OUR ECONOMIC IMPACT .......................................................................................................... 15

VITRO IN NUMBERS ............................................................................................................................................ 16

SOUND HUMAN PROGRESS ......................................................................................................................................... 21

QUALITY OF LIFE ...................................................................................................................................................... 21

JOINING TALENT ................................................................................................................................................. 21

INDIVIDUAL SKILLS PROMOTION ........................................................................................................................ 24

COMMUNITY WELL-BEING ...................................................................................................................................... 25

JOINING FORCES ................................................................................................................................................. 26

FEASIBLE ENVIRONMENT ............................................................................................................................................ 28

RESPONSIBILITY FOR OUR PRODUCTS ..................................................................................................................... 28

VITRO PRODUCTS AND SERVICES ........................................................................................................................ 28

SUSTAINABLE PRODUCTION .................................................................................................................................... 32

IMPLEMENTATION OF EFFICIENT PROCESSES .................................................................................................... 32

REDUCING OF OUR ENVIRONMETNAL IMPACT .................................................................................................. 35

ATTACHMENTS ............................................................................................................................................................ 38

THIRD PARTY VERIFICATION .................................................................................................................................... 39

GRI INDEX ................................................................................................................................................................ 41

FOR FURTHER INFORMATION ................................................................................................................................. 43


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MESSAGE FROM THE CHIEF EXECUTIVE OFFICERGRI 1.1 and 1.2

In times of great challenges such

as the world is now living,

sustainable development is not an

opportunity but rather an

obligation.

To reach our first hundred years of existence is an evident proof of the talent, commitment and loyalty

of the people who have been part of Vitro throughout its history. Furthermore, it is an example of the

vision, determination and enthusiasm we inherited from our founders and demonstrates more than

ever before that the Company has been built on solid foundations with outstanding human orientation.

The celebration of our first century of operations provides the opportunity to review the footprint we

have made in the lives and development of people and communities we had reached in different

countries. It is also the moment to think about the future and define challenging goals to be achieved

with support and diligence from our staff, customers, suppliers, shareholders and other related

audiences.

We are undergoing a financial restructuring process, during which we have maintained an open dialogue

with our creditors in order to reach a mutually satisfactory agreement, allowing the Company to

continue serving its customers expectations and needs. We recognize the imperative to continue

operating on a daily basis, as well as to move forward with pride by promoting Vitros core values with

our people to strengthen best business practices. Our commitment is to be profitable, thus generating

economic value for both our internal and external stakeholders, as this provides us with the opportunity

to continue developing the initiatives that support the community since 1909.

The current report is a document that consolidates our sustainable development achievements, and alsoreflects a deep and extensive internal review that leads us to define specific guidelines in the subject for

Vitro in the future. Our commitment for 2010 is to prepare an accurate Inventory of Greenhouse Gases

Emissions, which will allow us to determine the environmental footprint of our activities and will guide

us to take actions that improve our performance over the medium and long terms.


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This process will close another cycle in our Sustainable Development Model, which is the key to the

evolution of the Company by making it part of the group of worldwide leading companies that have

joined efforts to reduce the effects of climate change. In addition, this document incorporates

achievements and challenges regarding corporate governance, social responsibility, quality of life, and

social well-being because we bear in mind that under the current highly global and interconnected

reality, it is essential to maintain Vitro as a leading glass Company by reassuring its market positionthrough measuring and understanding its global impact.

Yours Sincerely,

Hugo A. Lara Garca

Chief Executive Officer

Vitro, S.A.B. de C.V.

Vitro: The Glass Company











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VITRO: THE GLASS COMPANY

GRI 2.1, 2.2, 2.3, 2.4, 2.6 and 2.7

Founded in 1909, Vitro, S.A.B. de C.V. (BMV: VITROA), is the leading glass manufacturer in Mexico, and

one of the largest in the world, backed by more than 100 years of experience in the industry.

Headquartered in Monterrey, Mexico, the Company has subsidiaries in 10 countries throughout Europe

and the Americas, through which it offers high quality products and reliable services that address the

needs of two distinct businesses: containers and flat glass.

Vitros manufacturing facilities produce, process, distribute and sell a wide range of glass products that

form an important part of millions of peoples everyday lives. The Company also provides excellent

solutions to a variety of industries, including: food, beverage, wines & spirits, cosmetics, and

pharmaceutical, as well as the automotive and construction industries. In addition Vitro is a supplier of

raw materials, machinery and industrial equipment.

As part of its culture of corporate responsibility, the Company continues to create new initiatives toimprove the well-being of its employees, support the communities in which it conducts business,

preserve the environment, and manage its business with the highest ethical standards and in complete

transparency.

Our corporate structure includes:

Vitro Envases Norteamrica

Compaa Vidriera

Fabricacin de Mquinas

Industria del lcali

Servicios Integrales de Acabados

Vidriera Guadalajara

Vidriera Los Reyes

Vidriera Monterrey

Vidriera Quertaro

Vidriera Toluca

Vidrio Lux

Vitro Packaging de Mxico

Vitro Packaging

Vimxico Cristales Inastillables de Mxico

Distribuidor Vidriero Lan

Vidrio Plano de Mxico

Vidrio y Cristal del Noroeste

Vitro Automotriz

Vitrocar

Vitro Colombia

Vitro Flex

Vitro Flotado Cubiertas

Vitro Vidrio y Cristal

Productos de Valor Agregado en Cristal

Vitro Cristalglass

Vitro America

Super Sky

Cristales Automotrices (In association with

the Posselt family who own 49%)

Grupo Sordo Noriega (In association with

the Ruiz lvarez family who own 45%)

Vitro Chaves (In association with the Chaves

family who own 40%)


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FINANCIAL HIGHLIGHTS

GRI 2.8

Vitro, S.A.B. de C.V. and SubsidiariesFigures in U$D

Income Statement 2009 ** 2008 %Change *

Consolidated Net Sales 1770 2627 (33)

Domestic 824 1157 (29)

Exports 484 600 (19)

Foreign Subsidiaries 461 870 (47)

Operating Income 98 160 (39)

Net Income for Continuing Operations (45) (458) -

EBITDA 237 329 (28)

Balance Sheet

Total Assets 2503 2454 2.0

Total Liabilities 2351 2229 5.5

Shareholder Equity 152 225 (32)

*

**

Percentage change 2009 vs. 2008

The information corresponding to 2009 does not present audited figures and may change.





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INTERNATIONAL PRESENCE

GRI 2.5, 2.7, 2.8 and 3.6

AN ACCREDITED COMPANY

GRI 2.10

During 2009, Vitro and its subsidiaries were recognized with several acknowledgements corresponding

to quality, innovation, design, corporate social responsibility, and sustainability criteria. Some of these

awards include:

CSR Seal by the Mexican Center for Philanthropy,

H Seal by the Departments of Health and Tourism in Mexico,

3 World Star Awards by the World Packaging Organization,

3 State Quality Awards in Mexico,

4 Clear Choice Awards by the Glass Packaging Institute in United States,

Empresa Sustentable Award by the Mexican Container and Packaging Association,

45 Awards at the XXIV Envase y Embalaje Estelar Contest sponsored by the Mexican Container

and Packaging Association,

Liderazgo Ambiental para la Competitividad Distinction by the Environment and Natural

Resources Department in Mexico,

Mejores Prcticas de Responsabilidad Social Empresarial Distinction by the Mexican Center for

Philanthropy and the Alliance for Corporate Social Responsibility in Mexico,

Several Supplier of the Year Acknowledgements from our customers General Motors, Ford

Motor Company, Procter & Gamble, and Berlin Packaging,

Crystal Achievement Distinction for the most innovative and energy efficient application by

Glass Magazine,

PanamaGuatemalaCosta RicaColombia

Bolivia

United States

FranceSpainPortugal

Mexico


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Named Distinguished Performer by Allstate Insurance, among other distinctions.

THE VITRO WAY

GRI 1.2 and 4.8

We agree on the fundamental need to improve the quality of life of our workforce and other social

stakeholders, by generating well-being and economic prosperity. Hence, we place great emphasis on our

competitiveness, supported by a permanent focus on quality and innovation, while developing specific

initiatives to join the global efforts for sustainable management.

Vitro was founded with a defined Philosophy:

To offer superior quality products and services that generate economic value in complete

balance with the well-being and integral development of our employees and the communities

where we operate.

This mindset has leaded us to pioneer in social security practices, community development and

protection of the environment in Mexico. To continue under this approach, Vitros current Mission is:

To consolidate the Company as a costumer-committed corporation that is dedicated to

providing value-added products and services in profitable and growing markets.

Finally, the Vision that guides the afore-mentioned goal is:

To become the leader in the global glass industry in terms of profitability, efficiency, quality and

service.

In order to abide by our Philosophy and accomplish our Mission, we firmly adhere to our Values:


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SUSTAINABLE DEVELOPM

GRI 1.2, 3.5 and 4.14

As a result of the several economic

its founding, we received the CSR

has implemented a series of initiati

Vitros current Sustainable Develo

years. Ever since our first report on

allowing for its constant evolution

THE EVOLUTIO

The permanent improvement of th

for the continuous upgrading of ou

Renewal

Specific

Objective

I

SUSTAINABLE DEVELOPME

NT MODEL

social, and environmental actions that have accom

Seal for the first time in 2007. Form that momen

ves to consolidate the management of its actions in

pment Model incorporates the experience acquir

this subject, its outline is permanently subjected t

ased on efficiency.

N OF OUR SUSTAINABLE DEVELOPMENT MODEL

is dynamic cycle aims at consistent and periodic re

r policies and practices on sustainability.

Definition of a

Tracking

Methodology

Consolidation of

Information

Strategic

Evaluation

of

s

pementation

of Material

Actions

8

T REPORT | 2009

panied Vitro since

on, the Company

this matter.

d throughout the

strategic analysis

porting, as well as


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PRINCIPLES THAT GOVERN THIS REPORT

GRI 3.1, 3.2, 3.3, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 4.15 and 4.16

Vitro presents this memoir as part of an ongoing effort to track its performance in the management of

the activities focused on the three guiding axes. The period covered by this report goes from January 1st

to December 31st

, 2009 and immediately follows the previous report for 2008. The informationcontained herein includes new actions considered significant in addition to those that have been

reported in annually since 2007, when the Company publically released its first Sustainable

Development Report.

The document describes the activities that took place in the ten countries where the Company has

productive plants, including businesses under direct ownership and those where joint-ventures are in

place. It sought to keep equilibrium with the previous ones by maintaining the periodicity, including all

the initiatives related to sustainability, and bringing together the conditions of exhaustiveness,

comparability, precision, clarity, reliability, and inclusion of stakeholders.

In order to select the content and assure the quality of this report, the Global Reporting Initiative (GRI)

G3 guidelines were followed. The criteria are those commonly used by the most important companies

worldwide to report their actions related to stakeholders and the community at large. The main

limitation to this process is that there is not any Supplement specific to our industry up to date, which

makes measuring procedures difficult to determine.

Previous reports were also considered to verify specific indicators. Furthermore, additional ones were

included responding to improved interest from our stakeholders. The projects for an open corporate

communication have gained strength allowing us to take better care of our internal customers

(employees, shareholders, investors, suppliers, distributors and contractors) who carry on a more direct

relationship with us, but also to become involved the interest put forth by our external customers(buyers, end users, creditors, authorities, neighbors and the community in general).

The consolidation in the coverage of our initiatives for this report has generated a substantial increase in

the quantity of indicators that we monitor, going from 83 in 2008 to 121 in 2009. Hence, this memoir

meets an application level A+ independently verified by Redes Sociales LT, S.A. de C.V. Vitros progress in

the subject is due to a new awareness regarding its responsibility over management focusing on social,

economic and environmental development.

Experience has given us the opportunity to learn, therefore improving our internal procedures for

gathering information through questionnaires and in-depth interviews that allow continuous progress in

our Sustainable Development Model. The incorporation of more internal areas as sources of primary

information supports these procedures while strengthening and reaffirming actions undertaken since

2007.


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2009 HIGHLIGHTS

GRI 2.9

During the period covered by this report, Vitro strengthened the negotiation of its debt by temporarily

naming Claudio Del Valle Cabello as Chief Restructuring Officer in addition to his responsibilities as Chief

Financial and Administrative Officer for the Company. Likewise, Alfonso Gomez Palacio rejoined ourexecutive team as President of the Glass Containers business unit, a position previously held by David

Gonzalez Morales who moved to the position of President of the Flat Glass business unit.

By the end of 2009, Vitro represented:

16,559 direct jobs in 10 American and European countries,

300,000 indirect jobs around the world,

41,303 ha of nature reserves,

529,546 people receiving health and education services, as well as access to cultural and

recreational facilities,

65,000 new planted trees,

47% less accidents in our plants,

328,900 beneficiaries from our health, education, security and environmental campaigns,

152,133 tons of recycled glass.

RESPONSIBLE CORPORATE MANAGEMENT

CONSOLIDATION OF CORPORATE GOVERNANCE

We believe that the observance of the highest corporate governance standards, both mandatory and

optional, strengthens the confidence of stakeholders in the Company. Maintaining this positive

contextual attitude is of utmost importance for us. Therefore, we have taken solid steps to consolidate it

by the implementation of safeguards and supervision checks capable of aligning the incentives of the

management body and majority shareholders, with the remaining shareholders and other related

audiences such as employees, suppliers, creditors and the community at large.

According to our answers in the annual questionnaire for the Evaluation of the Degree of Adherence to

the Code of Best Corporate Practices published by the Mexican Stock Exchange, we can state with

certainty that Vitro has completed its process of institutionalization basically since 2007. Another

instance that backs this affirmation is the recognition of Mejores Prcticas in the category of

Corporate Ethics obtained in 2009 from the Mexican Center for Philanthropy (CEMEFI) and the Alliance

for Corporate Social Responsibility in Mexico (AliaRSE). The project we presented was precisely called

Institucionalizacin y Transparencia.


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COMMITMENT TO TRANSPARENCY

GRI 4.5 and SO3

Our responsibility is to keep all of our decisions and actions within the framework of institutional

transparency. The Business Conduct and Corporate Ethics Code was approved in 2004 to guarantee that

the decisions of our personnel are directly linked to Vitros interests and abide by law. This documentstates how to resolve on situations where conflicts of interest may exist, regulating loans to employees,

facilities management, assets and information use, employee relationships with suppliers, customers

and competitors, among others.

In order to implement this Code, a special on-line course was designed for the development and

orientation of our personnel in ethics and anticorruption issues. By the end of 2009, 100% of our

employees had satisfactorily completed it. This is a clear demonstration of how the commitment to

transparency has permeated throughout all levels of the Company, from its organizational base all the

way up to the Board of Directors.

Board of DirectorsGRI 4.1, 4.2, 4.3, 4.7 and 4.10

Responsible management has been one of Vitros priorities since its founding. In agreement with the

CEO, the Board of Directors defines the strategy of the Company by approving the direction of the

business based on current legislation and previously established internal policies. In this way, Vitro

guarantees a sustainable lasting vision.

The Board of Directors relies on three intermediate Committees for compliance with its functions:

The Finance and Planning Committee evaluates and advices about the strategic long-term

investments and financing.

The Audit Committee verifies the impartial observance of internal and external audit functions

in addition to assuring that the financial information presented by the Company to all

stakeholders is reliable, sufficient and transparent.

The Corporate Practices Committee whose functions go beyond just foreseeing current

legislation as it also monitors the compliance to our corporate social responsibility principles and

business conduct. In addition, it supervises the size and composition of the Board of Directors,

as well as the compensation of its Chairman and the Chief Executive Officer.

The members of last two of the above-mentioned bodies are all classified as independent Directors,accounting for 46% of the Board of Directors. This percentage exceeds the 25% minimum stipulated by

Mexican regulations. The internal process for prerequisites of the independent Directors established in

our policies is stricter than the dictated by the parameters of the Mexican Stock Exchange Laws. It is also

worth to state that the Chairman of the Board has no executive function within the Company.


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The Board of Directors and its intermediate Committees carry out a performance evaluation in each of

their respective functions at least once a year. In order to reinforce this exercise, Vitro has developed a

Guide to the Practice of Functions, Authority, Obligations and Responsibilities Relevant to Vitros Board

issued by the Executive Vice President and General Counsel and approved by the Corporate Practices

Committee in 2009. This document sets out the framework under which the Directors must perform

their duties.

On top of this, each year the Shareholders General Assembly discusses and decides on the approval of

the activities undertaken by the Board of Directors and its Committees during the prior fiscal year to the

date of the General Assembly.

BOARD OF DIRECTORS

Adrin Sada Gonzlez Chairman of the Board of DirectorsChairman, Finance and Planning Committee

Julio Escmez Ferreiro

Alejandro Garza Lagera* Member, Corporate Practices Committee

Toms Gonzlez Sada Member, Finance and Planning Committee

Manuel Gemez de la Vega * Chairman, Corporate Practices CommitteeMember, Audit Committee

Hugo A. Lara Garca Member, Finance and Planning Committee

Ricardo Martn Bringas * Member, Corporate Practices Committee

Carlos Muoz Olea* Member, Corporate Practices Committee

Jaime Rico Garza Member, Finance and Planning Committee

Federico Sada Melo Member, Finance and Planning Committee

Jaime Serra Puche * Member, Audit CommitteeMember, Finance and Planning Committee

Joaqun Vargas Guajardo * Chairman, Audit Committee

Andrs Yarte Cant Member, Finance and Planning Committee

Jonathan Davis Arzac** Financial Expert, Audit Committee

Claudio Del Valle Cabello** Secretary, Audit CommitteeSecretary, Finance and Planning Committee

Alejandro Snchez Mjica** Secretary, Board of DirectorsSecretary, Corporate Practices Committee

Independent Director*

Participant in the meetings but not a member of the Board of Directors**

Vitro: La Compaa del Vidrio


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Strengthening our internal policies

GRI 4.6, 4.8, 4.9, EC6 and SO2

In order to avoid ill-driven practices, Vitro has generated a series of internal policies directed towards

regulation, institutionalization and monitoring of its actions and decisions in both business units. For

example, we abide to a Policy for Suppliers that describes how to implement a transparent selection ofsuppliers and materials, by eliminating discrimination and establishing that the process has to be strictly

based on economic criteria without other influences that could promote irregular situations.

Among the practices recently implemented there is a Policy for Transactions with Related Parties, which

was approved by the Board of Directors in 2009 following the favorable opinion from the Corporate

Practices Committee. Its objective is to establish the guidelines for Vitro and its subsidiaries around

world so they can carry out transactions with non-independent third parties within a framework of

transparency and institutionalism.

This policy is a clear framework that defines which operations require approval from the Board of

Directors. Furthermore, it describes the responsibilities of each party in the case of non-compliance andthe subsequent corresponding sanctions.

CORPORATE OPENNESS

GRI 4.4

For the past few years Vitro has developed several means for internal communication to make our

personnel aware of all strategies, actions, accomplishments and decisions. As the 2009 restructuring

process evolved, we observed the need to implement internal mechanisms to ease two-way

communication between senior management and employees, aiming to deliver regular reports on thenew initiatives that interest our inner stakeholders.

The first step has already been taken with the creation of the public access e-mail address

[email protected] whose inbox is directly administered by Vitros Chief Executive Officer. Through this

channel our employees have the opportunity to ask questions and make suggestions as well as receive

orientation, in the case of specific doubts, from the corresponding executives who reply in a prompt

manner.



Vitro: The Glass Company Vitro: The Glass Company



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Employees Report System

GRI 4.4, 4.6, 4.9, HR4, HR6, HR9 and SO4

Vitro has developed a channel of confidential communication so internal and external stakeholders have

the opportunity to denounce and track any irregularity regarding the Company affairs. This makes part

of the compliance to the Business Conduct and Corporate Ethics Code as well as the differentregulations that govern this issue.

The claim must have a credible basis and can be done from any location in the world through a toll-free

telephone number or the following web site: https://watcher.alertline.com/gcs/welcome. Both tools are run by

the independent company Global Compliance Services, Inc.

After reception, each allegation is investigated by an internal team based on its nature. Consequently, it

can be referred to one of the following specific areas: Legal, Finance, Administrative or Human

Resources. Those that present reasonable grounds are sanctioned according to the severity of the action

and are then handed to the Audit Committee. The sender can track the report at any moment through

the same mechanisms used to make the complaint with a reference number assigned at the moment of

reception.

By the end of 2009, a total of 68 accusations were received, mainly regarding accounting irregularities,

administrative mistakes, conflicts of interest, as well as incidents of discrimination. During this period,neither complaints of violation of human rights nor child exploitation ones were received. The details

on each accusation and its follow-up are strictly confidential to guarantee anonymity.



LOCATION DIRECT TOLL-FREE LINE

Mexico 001-877-532-5823United States 1-877-780-9370Bolivia 800-101-110Colombia 01-800-911-0010Costa Rica 0-800 -011-4114Guatemala 999-91-90Panama 800-0109Portugal 800-800-128Spain 900-99-00-11For other locations go to http://www.business.att.com/bt/tollfree.jsp


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COMMITMENT TO OUR ECONOMIC IMPACT

The creation of economic value is one of our greatest responsibilities as it is the basis for our existence

in the long-term, but it is also a key aspect that maintains the well-being of our stakeholders. This idea

derived from the Philosophy established when the Company was founded in 1909.

VITRO IN NUMBERS

GRI 2.8, EC1, EC3, EC6, EN28, LA1, LA2, LA13, LA14, SO7 and SO8

At Vitro, we are concerned about our employees as well as our business. Thus, we invest in social

benefits, training, and research & development to reinforce the whole production processes. One

example of this is the Policy for the Savings Fund applicable in Mexico, which regulates the contributions

made by the company and employees to that financial instrument for the purpose of maximizing the

returns. This is an externally invested fund, a condition that guarantees the compliance with the current

Mexican legislation. Likewise, in each country where Vitro operates, we strictly adhere to existing

regulations regarding national pensions and retirement.

To fully understand any Company, it is important to analyze its workforce. By the end of 2009, the

combined personnel involved in all of our operations reached 16,559 people. According to their

functions 1.13% held executive positions, 20.03 % performed administrative functions, and 78.84% were

plant workers.

Divided by age groups 29.51% are under 30, 57.29% are between 30 and 50, and 13.20% are over 50

years of age. Geographically speaking 81.09% of our employees are located in Mexico, 11.12% in United

States, 4.01% in the rest of Latin America and 3.78% in Europe. Women account for 17.54% of the

workforce and the ratio of their compensation to that of men for similar performance is identical.

Together with this human capital, our economic resources generate and distribute:

More than $435 million dollars in salaries and benefits for our employees*

More than$1,262 million dollars in the consumption of goods and services from our suppliers*

More than $48 million dollars invested in assets for our production processes*

More than $20 million dollars for pensions to retirees*

More than $380 thousand dollars in activities and initiatives related to the training of our

personnel*

More than $13 million dollars paid in government taxes*

* The information corresponding to 2009 has not been audited and may vary. Data is presented in US dollars. The

amount of taxes does not include the subsidiaries located in the United States.

It is important to point out that by end of 2009 Vitro had neither fines nor any significant sanctions

stemming from non-compliance to any regulation. We wish to specifically state that during the 100

years of our economic activity, the Company has never had any relevant problems related to non-

compliance with any law. This includes regulations on free competition, environmental and labor laws,


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among others. This proofs the conformity of our actions within the framework of our Code for Business

Conduct and Professional Ethics.

SOCIALLY RESPONSIBLE INVESTING

GRI EC1, EC4, EC5, EC8, EC9, EN30, LA3 and HR1

The largest contributions Vitro makes to social well-being are the salaries and social benefits received by

our personnel and their families. These economic payments vary according to the location and the

particular business unit involved. Nevertheless, the Company maintains a favorable ratio with regards to

the local minimum wages according to current legislation in each of our operating locations.

For example, average starting salaries for factory operators in Monterrey is 1.95 times more than the

mandatory minimum wage in this region of Mexico. Through these initiatives, Vitro fully complies with

diverse contracts in which our customers request clauses that call for the respect of labor and human

rights.

Additionally, employees in all of our subsidiaries receive benefits superior to the basic legal andcompulsory ones. For example, Vidriera Monterrey full-time workers have free medical service at Clnica

Vitro, a 13% savings fund and their vacations start with 2 days more than the required by law, they also

receive several bonuses for vacation assistance (118%), Christmas (32 extra-days wage), attendance and

food.

In Mexico, we pioneered in the area of social benefits with the implementation of a mechanism to help

our personnel to apply for housing mortgages. Our project began more than five decades ago as an

internal initiative, today it is a basic format for Mexicos Federal Housing Program. During 2009, we

provided coaching for the application and approval of 1,097 mortgages and 105 co-financing loans.

APPROVED MORTGAGE LOANS FOREMPLOYEES (1953-2009)

Location Number of houses

Nuevo Len 18,529

Distrito Federal 4,001

Quertaro 1,380

Guanajuato 435

Jalisco 554

Baja California 375

Toluca 655

Puebla 123

Other 105

Total 26,167

The Company is truly persuaded of the importance of social involvement. For this reason we have

opened to the public several of our initiatives originally exclusive for our employees, so the community


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can benefit at large. Among those programs we have the Glass Museum (MUVi), Clnica Vitro, Formative

Instruction (FEAC), Wildlife Organization (OVIS) and Vitro El Manzano Park, among others.

Learning history

The Glass Museum (MUVi, Museo del Vidrio) is the only facility of its kind in Latin America, covering

three dimensions of human activity: History, Art and Science. It keeps a permanent exhibition of glassart-pieces and crafts that show the past of Monterrey, of its people and its industry by presenting the

processes and techniques used in the creation and manipulation of this material. Moreover, it actively

promotes a culture of recycling through workshops, guided tours and talks. The museums efforts have

earned it several awards over the years, the most recent during the 2009 Tec de Monterrey Recycling

Fair.

MUVi is an active member of the International Museum Council (ICOM) and the Nuevo Len State

Network of Museums. During 2009, the facilities were visited by 3,471 students from 74 different

private and public institutions. 1,123 additional people participated in its annual and summer

workshops. The museum also supports the community through campaigns covering culture, human

rights, and recycling education. These efforts further benefited 3,648 more people.

Besides, MUVi began working new projects with Social Incubators (IS, Incubadoras Sociales), which

operates a center for information transfer in an extreme poverty urban area. The museum joined this

strategy for social development together with Tec de Monterrey to contribute to the human, economic

and social progress of the communities located in a zone where they lack opportunities to improve their

educational level, generate employment and improve their well-being. The museums provides training

workshops and talks to IS stakeholders.

Excellence in health services

Clnica Vitro is an essential part of our efforts in social responsibility. It began several decades ago as aninternal project, finally opening to the public in 2002. Currently, it is recognized as a first class hospital

sharing agreements with very prestigious Mexican health institutions such as Universitario-UANL, San

Jos-Tec de Monterrey, Christus Muguerza, and OCA. In addition, it is part of Monterrey Health Cluster

due to its active membership in Monterrey Health City Association.

Clnica Vitro has been certified under ISO 9001-2008, and distinguished with the H, ema and CSR

Seals. At the same time our facilities serve as a school hospital for local universities such as UANL

(Universidad Autnoma de Nuevo Len), UDEM (Universidad de Monterrey), and Tec de Monterrey.

In a constant effort to provide high technology services, the hospital recently included new surgical

procedures such as CPRE (gastroenterology), cystoscopy (urology), skull surgery (neurology) and Doppler

echocardiogram (cardiology). Likewise, Clnica Vitro uses the Ris-Pac technology for radiology and

imaging, managing all of its patient files electronically.

During 2009, 2,046 surgical procedures were completed on patients from the community and 990 on

Company employees. At the same time 109,780 people received some type of medical treatment.


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Additionally, Clnica Vitro maintained continuous campaigns on epidemic controls among which the A-

H1N1 one stood out, as it affected large populations in this period.

Education support

Vitro sponsors Formative Instruction (FEAC, Formacin Educativa) since 1942. This program manages

four educational institutions at the pre-school, elementary and secondary levels. All of them opened tothe public in the 1993-94 period. In 2009 alone, FEAC had 1,595 students of which 215 were children of

Vitro personnel.

This year, the elementary school Roberto G. Sada was ranked among the 10 best schools in the state

according to the National Academic Achievement Test (ENLACE), while the elementary school

Industrias del Vidrio and the secondary school Rmulo Garza are ranked number one and two in

their respective school districts. The kindergarten Andrs G. Sada is not included in the listing, since it

only considers elementary grades and higher. Likewise, our student Adalberto Carrillo ranked in 1st place

among 33,500 candidates on the admissions exam for the UANL high-school system.

In September 2009, Vitro and UANL signed a cooperation agreement for the purpose of establishing anacademic program focused on glass uses in architecture and industrial design, contributing to the

students curricular criteria based on sustainability. This agreement joins other Vitro initiatives

undertaken with other academic institutions in Mexico, including the Vitro Faculty Chair at Tec de

Monterrey, the Sustainable Architecture Diseo para el Desarrollo Sustentable Contest at the Iberian-

American University (Universidad Iberoamericana), and the Diseo ms Innovador Glass Containers

Contest that took place in 2009 at Anahuac University (Universidad Anhuac) in its North-Mexico City,

South-Mexico City and Jalapa campuses.

To further support higher education, we have an Internships Program in all of our locations in Mexico,

United States, Spain and Colombia. Just for 2009, 478 students participated in this initiative throughagreements with 53 different universities and institutes of technology. Participants backgrounds include

health sciences, social sciences, administration, marketing, biotechnology, architecture, chemistry and

engineering.

Commitment to sustainable conservation

Vitro firmly believes that the only way to maintain a healthy environment for this and future generations

is to develop projects that are economically and sustainably feasible for the long-term. Therefore, we

have undertaken several productive investments such as Vitro El Manzano Park, a strategic forest of 585

hectares located 60 kilometers south of Monterrey that opened its doors in 1972 to encourage the

creation and consolidation of environmental awareness among our personnel, their families and thecommunity.

Over time we have developed a specialized team to embark on activities for the preservation of wildlife

as well as the prevention, combating and control of wildfires and plagues. For example, in 2009, we

supported the battle against fires in the nearby areas and we made the Parks forests available for the

study of the behavior of pests in coordination with the Cumbres de Monterrey National Park and the

Faculty for Forestry Sciences at UANL.


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Also during this period, 20 hectares of retaining barriers were built for the prevention of soil erosion,

120 gullies were excavated and 50,000 pine seedlings were planted. This as an additional support to our

existing permanent programs for promoting awareness among visitors, soil recovery and feeding of the

endemic wildlife that includes priority species such as the whitetail deer and the black bear. This year

the Park welcomed 46,492 visitors, 26,802 were Vitro employees with their families.

Vitro also takes an active part in the initiatives for Chipinque Ecological Park, which is a nature reserve

covering 1,815 ha located on the outskirts of Monterrey and San Pedro Garza municipalities managed by

an independent association with its own Board of Trustees. This area promotes environmental

awareness, preserves and strengthens the ecosystem, undertakes cultural, educational and sports

activities, and encourages community involved in conservation projects.

Among its most remarkable actions was the Environmental Education Program for guided school visits

that included free transportation and personalized attention for 15,846 students from elementary,

secondary and high schools. In addition, the Yearly Reforestation Program for the Park planted 10,000

seedlings. By the end of 2009 the Park had registered 359,865 visitors.

Vitro also sponsors Wildlife Organization (OVIS, Organizacin Vida Silvestre). This is a non-profit entity

founded in 1996 with the purpose of preserving wildlife through the creation of scientific research

programs for the management of sustainable ecosystems promoting environmental education and

community improvement programs. Currently the organization manages 41,303 hectares in 6 private

nature reserves:

Los banos in Laguna Madre, located in Matamoros, Tamaulipas 3,500 ha

El Plomito in Sierra del Viejo, located in Pitiquito, Sonora 10,375 ha

El Carmen by the Sea of Cortes, located in Loreto, Baja California Sur 15,100 ha

La Mesa in Sierra de Picachos, located in Marn, Nuevo Len 9,328 ha El Caracol located in Caborca, Sonora 3,000 ha

In these reserves OVIS oversees the protection of 1,023 animal species, of which 97 require special

attention according to Mexican regulation NOM-059-ECOL-20 published by the Department of

Environment and Natural Resources (SEMARNAT, Secretara de Medio Ambiente y Recursos Naturales).

In addition to the permanent reproduction and relocation project, this year OVIS worked intensely on

the Program for the Reintroduction of the Mexican Grey Wolf population in La Mesa reserve, in order to

rehabilitate the species into the wild. The organization also provided advisory assistance to SEMARNAT

in the methodology development for the evaluation of the depredation of the Olive Ridley (Lepidochelys

olivacea) nests on the beaches of Rancho Nuevo, Tamaulipas. Besides this program, Ovis backedSEMARNAT in the evaluation on the distribution and population of the Ocelot (Leopardus pardalis), and

other species of the felinae family in the Laguna Madre and Delta del Ro Bravo protected areas, in order

to develop a viable conservation strategy.

Aside of the conservation initiatives, in 2009 the organization coordinates the yearly campaign

Naturalmente Vitro through which the Company donated 5,000 native seedlings to its installations


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worldwide, so the personnel and their families could plant and take care of a tree on an individual basis.

Complimentary to this program, the Collection and Yearly Planting of Acorns Program was launched at

the Santa Engracia estate for the purpose of gathering part of the seeds necessary for the campaign.

OVIS activities have had a significant impact in the evolution of the concept of conservation in Mexico.

As a recognition, it received $830,000.00 pesos from the National Forest Commission (CONAFOR), theNational Commission for Protected Areas (CONANP) and the German Agency for Technical Cooperation

(GTZ) for the diverse programs implemented this year. These resources serve to increase the spectrum

of the actions of the projects and also show the signficance that can be attained from participation of

the private sector in this area.

In the frame of a larger a strategy of involvement in conservation activities, where Vitro is a pioneer in

Latin America, on November 7th the Corporate Commitment for the Conservation of Wilderness Areas

was signed. This document brings together several Mexican companies including Vitro, Cemex, Bimbo,

Alfa, Coca Cola de Mxico, FEMSA, Ferromex, Acciona Energa Elica Mxico, Promotora Ambiental, and

Wal-Mart de Mxico, into a coalition aimed to generate the necessary leadership to launch a national

commitment for the protection of the environment and efficient use of natural resources.

SOUND HUMAN PROGRESS

QUALITY OF LIFE

Vitros Values define our customer as the origin and final destination of our efforts, hence all we do andrepresent aim to meet this end. Our own workforce is one of our main customers, if we understand and

recognize that they are the people who use our internal services most of the time. In this way, our

employees form an integral part of all processes, actions, and accomplishments. Consequently we have

the obligation to offer them the best workplace conditions, individual development and well-being.








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JOINING TALENT

GRI EC7, LA4, LA5, LA6, LA7, LA9, HR2, HR5, HR6 and HR7

If we follow the principle of customer orientation and define our workers as such, our firm belief in

teamwork is a logical conclusion. Fostering a friendly environment among colleagues is the only way to

work for Vitro. We also know that the best approach to attain this spirit is through the encouragementof diversity and openness towards new lines of thinking and improvement in our processes and in our

products.

One example of it is our Policy for Promotion, Transfer, Recruitment, and Hiring of Executive Personnel

that establishes that our top level employees must be hired according to the skills and experience that

the vacant position requires. The guidelines dictate that the underlying merits and experience are above

any other criteria such as ethnicity, gender, geographical location, among others. We continuously work

on consolidating this process.

These practices also apply to all plant personnel. At this level, we rely on an integrated system called

Total Control of Losses (CTP, Control Total de Prdidas) implemented in 1994 with the objective ofpreventing, reducing and controlling the probabilities of personnel, equipment, materials and

environmental damage through a system that identifies loss exposure and risk evaluation. This internal

monitoring method has been consolidated to become a global companion project for the worker from

the moment she or he joins the company.

One of CTPs priorities is to insure that only those persons deemed physically and mentally fit to occupy

the position will be considered to fill in the vacant post. As a result and in compliance with the current

national legislations, there is no evidence of activities that would indicate child exploitation or episodes

of forced labor, as corroborated by our internal audits. This inner process is undertaken at least twice a

year with the support of our operators and supervisors. The system originated due to Vitros interest inavoiding situations of risk and, in the worst case scenario, loss of human lives.

The labor relationship with our personnel is fundamental. As a result, 100% of our workers are legally

registered in our payrolls and covered by collective agreements in those countries where this

mechanism exists. For this same reason, the time-frame for prior notice regarding organizational

changes is followed under the agreed upon a format as established in the contracts.

Our collective workers agreements also consider their physical integrity through periodic revisions and

delivery of safety equipment. In addition, internal safety regulations have been established and

complemented with different benefits and concessions for our employees such as bonus clauses that

cover attendance, good health, and accident prevention.

All of Vitros subsidiaries have formed mixed commissions including executives and workers focused on

issues of safety, quality, training, food facilities as well as environmental performance and recycling.

These groups meet at least once a month and have from 6 to 10 members, according to the company

size. Through these mechanisms we also assure that there are no risks against free association.


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Vitro is always looking after its actions in the supply chain, for which all of its internal policies, especially

those related to CTP, apply to contractors and external suppliers of services. Although there is no

internal policy that requires an analysis of these suppliers in matters of human rights, the company

includes them during its internal audit process to assure they comply with all the guidelines applicable

to the workers in our payrolls.

To encourage and recognize personnel that distinguish themselves for strict adherence to the CTP

processes, we carry out a monthly Persona Mxima Seguridad Distinction to promote compliance.

Another mechanism in place is the Lemas y Carteles Contest, which recognizes the proposal with the

most original and creative design related to accident prevention, tidiness, and cleanliness. This process

is so deeply rooted that in 2009, 7330 employees enthusiastically participated in the competition from

all our subsidiaries.

Along these same lines, all of our Containers manufacturing facilities in Mexico comply with the SA8000

standard for International Social Responsibility (SAI), which defines the working conditions considered to

be the minimum acceptable. This is reflected in a sustained increase in our employee satisfaction as

reflected in the Calidad de Vida en el Trabajo Survey that in 2001 gave us an approval rating of 70.7%

that has since increased to 79% in 2009.

Our Accident Index, which is the ratio between the frequency and seriousness of accidents, is only 321.

This is considerably lower than the minimum established by Mexican Authorities for the glass industry

which is set at 1,360. We also keep detailed records of our health and safety statistics that allow for a

continuous tracking of the Companys performance. As observed in the following table, our accident

indicators have been significantly reduced, while those related to worker performance have begun to

consolidate.

QUALITY OF LIFE(2007-2009)

Indicator 2007 2008 2009Number of accidents 742 706 373Handicapping accidents 243 227 141Lost work-days 7,715 6,635 6,494Accident index 195 320 321






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Internal campaigns

GRI 4.14 and SO1

In addition to all the benefits and projects previously mentioned, Vitro has diverse support programs for

the development and well-being of its personnel, based on the particular needs and interests of each

location. Several have already converted into true traditions among the people in specific facilities, fullyachieving its objective which is to foster integration and consolidate the satisfaction of our workforce

with their quality of life.

For example, to follow up on occupational and family health, 256 campaigns were launched for

employees with the active participation of more than 17,800 people in 2009. The actions focused on the

promotion of themes like hygiene, nutrition, reproductive health, addiction control and emotional

health as well as in the prevention of dental illnesses and chronic degenerative disease such as diabetes,

hypertension, high cholesterol, arthritis, and diverse types of cancer. Also, crusades were carried out for

vaccinations against influenza, dengue, hepatitis, tetanus and human papilloma. Hearing, eyesight and

breathing exams were provided too. This directly supports permanent government programs for integral

prevention, such as PREVENIMSS in Mexico.

To support the integral development of our employees, we also organized 83 internal and external

sporting tournaments for soccer, dominos, ping-pong, billiards, softball, volleyball, basketball, track and

field, fishing and indoor soccer. In addition, we held recreational gatherings on commemorative days

and several guided tours of areas of special interest for our personnel and their families. By December

2009, more than 10,000 persons participated in at least one of these events.

We feel proud of the safety levels in our facilities and the processes that take place within them, as they

are the engine of the company. Therefore, one of our more deep-rooted projects is the Program for

Visits where the families of our employees have the opportunity to visit the workplaces and understandour activities. During their stay, they have a guided tour of the facilities, share a snack, take part of

contests, undertake sporting or recreational activities, and listen to talks on environment, safety or

health. During 2009, 20 different activities of this nature were undertaken with more than 7,000

individuals participating.

The implementation of these campaigns is not limited to being an incentive to the Vitro personnel, but

serves to develop aspects beyond just the labor issue for the employees, as well as their spouses,

parents, and children. The Company has sought to become a social reference within each family

involved in our processes. This has been consolidated to such degree that some of our plants offer

summer courses for the children of the personnel, as is the case with Vidriera Quertaro.


Vitro: The Glass Company Vitro: The Glass

Vitro: The Glass


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INDIVIDUAL SKILLSPROMOTION

GRI LA8, LA10, LA11, LA12, HR3, HR8 and SO3

As we have already mentioned, we believe that teamwork is the only efficient way satisfy and surpass

the expectations of our customers. In order for a group of people to reach their optimum potential at a

particular job, it is necessary that each one of its members has specific skills and that they commit to usethem in a prompt and effective manner. Our diverse policies on human capital, as well as the CTP, define

the parameters for each position and its level within the organization.

For this reason we go beyond just providing a job, by developing skills and consolidating the abilities of

our personnel to guarantee their employability. Examples of support to each individuals potential are

the programs in place for functional diversity. During 2009, we had 152 administrative, supervisory and

operative employees with some form of handicap as defined by the World Health Organization. Another

example of these efforts is the several education programs we have developed. These vary according to

the subsidiary, but establish a general framework to benefit the employees and their children by

covering expenses for tuition and guaranteeing discounts through agreements with specific institutions.

Some schemes also subsidize the purchase of text books and school supplies. Any employee or relative

may apply for the program since the elementary level up to postgraduate studies according to the

specific program in each company. Currently, we have 27 strategies supporting 2,600 people in Mexico,

United States, Spain and Colombia.

Furthermore, in 2009 we offered more than 6,500 training courses that covered specific technical

procedures on the employees functions as well as topics on health issues, first-aid exercises, risk

control, internal anticorruption processes, personal finances, ethics and human rights, social capital, as

well as certifications and internal audits. We developed @utodesarrllate to take this structure to the

next level, offering more than 300 permanent online courses. Through both strategies, more than

1,250,000 hours of instruction were given in total. Our personnels Certified Training Index by the end ofthe year was 3.30 for the Flat Glass business unit and 4.04 for the Containers business unit, representing

an increase of 0.1 and 0.54 respectively if compared with 2008.

To encourage the participation in these programs, we carry out formal performance evaluations through

a tool called Planning and Analysis of Individual Performance (PADI). In 2009, 98.95% of the employees

received an evaluation. As a result of this feedback strategy, 86.42% ofadministrative employees and

100% of operators participate in additional variable compensation plans on top of their salary, based on

the fulfillment of pre-established goals set at the beginning of the year in their respective area of

competence.





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COMMUNITY WELL-BEING

GRI SO1

According to its Philosophy, the Company focuses on economic, social and environmental development

in the communities where it operates. This approach derived from Vitros strong conviction that there is

a need to adjust business practices to social well-being. For this reason, we join diverse initiatives thatdirectly support the community.

JOINING FORCES

GRI 4.13, SO5 and SO6

We have strategic alliances with a large list of educational institutions, non-governmental organizations,

and associations. It is important to point out that the Company maintains an apolitical posture and does

not provide any donations to political parties or other political groups in any of the locations where we

operate. When there is an interest specific to our industry we may participate in the lobbying process

and public policy design indirectly, through the different chambers and associations to which we belong.

During 2009, we kept an active membership in 46 different industrial, commercial, health, quality,mutual benefit, ecological and education institutions that promoted competitiveness, employment,

investment, energy savings, human development, and social responsibility. Some of these organizations

are:

National Chamber for the Transformation Industry (CANACINTRA) in Mexico

Nuevo Len Chamber for the Transformation Industry (CAINTRA)

National Chamber of Commerce, Services and Tourism (CANACO-SERVYTUR) in Mexico

Mexican Employers Confederation (COPARMEX)

Spanish Glass and Ceramic Industry Confederation (CEV)

Mexican Center for Philanthropy (CEMEFI) Glass Packaging Institute (GPI) in United States

American Distilling Institute (ADI) in United States

Mexican Businessmens Council (CMHN)

United States Green Building Council (USGBC)

Mexican Container and Packaging Association (AMEE)

National Glass Association (NGA) in United States

National Chemical Industry Association (ANIQ) in Mexico

National Private Hospitals Association (ANHP) in Mexico

Colombian Association for Manufacturers of Auto Parts (ACOLFA)

Electric Energy Savings Trust (FIDE) in Mexico, among many others.





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Social support campaigns

GRI 4.12 and 4.17

Besides the afore-mentioned projects regarding internal initiatives for conservation of the environment,

promotion of education and health, Vitro supports external efforts in several areas. Most of these

campaigns form part of government schemes or proposals from the different associations to which webelong, but all of them response to specific needs expressed at different times and circumstances by our

external stakeholders. For example, we welcomed 94 school visits in our plants in Mexico, United States,

Spain, and Colombia. The tours were provided to 50 academic institutions from the elementary,

secondary, and high school levels, involving nearly 3,000 students.

Also during 2009, 74 public health programs were completed, aiming for the detection of chronic

degenerative and cardiovascular diseases as well as preventive campaigns for dental, visual, infant, and

reproductive health. Furthermore, talks on nutrition and addiction prevention were conducted, as well

as campaigns for blood donors and vaccinations for different diseases. Some of our programs were

carried out in cooperation with medical laboratories such as Pfizer, Elly Lilly, and ICON Research,

reaching more than 30,500 people.

Another 82 non-health campaigns were completed, including topics for the promotion of personal

development, safety, and reforestation. These framed the support to several schools and non-

governmental associations. We also undertook food, clothing, and medicines collection campaigns to

help deprived communities suffering from the effects of natural disasters. These projects benefited

more than 258,000 individuals around the world.

Vitro is a Socially Responsible Company. Hence, we are fully aware of the importance of anticipating and

planning for the solution of daily needs, which exist both within and out of the organization.

Nevertheless, we also have the capabilities to carry out decisive actions when confronted with anunexpected event. This was the case for the A H1N1 flu that broke out in Mexico in April 2009, where

immediate prevention campaigns were undertaken in all of our facilities and a subsequent vaccination

program was followed. To summarize and share our experience in this unforeseen event, Clnica Vitro

organized the Influenza A H1N1 Dengue National Congress that November.

Diverse interest groups gathered on the occasion of the Conference to represent the medical

community, nursing groups, health professionals, and the public in general. The 246 participants

attended to discussions on the economic impact of the flu pandemic and exchanged their notions on its

local, regional, and global implications for the purpose of drafting an action profile in the case of future

outbreaks. To meet this end, they analyzed the challenges the disease posed for governments and

society. We cannot predict the future but we are able to prepare for any foreseeable adversities if we

encourage teamwork backed by creativity and innovation, which are two of our five core Values.


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FEASIBLE ENVIRONMENT

RESPONSIBILITY FOR OUR PRODUCTS

As mentioned in the Sustainable Development Model, the evolution of our reporting process has left us

behind diverse experiences with regards to the focus of the Companys actions, decisions and

achievements. For this third memoir we decided to deepen in the references to our brands, as well as to

address more accurately our commitment to the quality, safety, and sustainability of our products and

services, which are key internal and external aspects for Vitro.

VITRO PRODUCTS AND SERVICES

GRI 2.2, 4.11, EC4, EN1, PR1 and PR2

According to our Visual Identity Manual, we have one corporate brand, 4 services brands, 6 commercialbrands for Containers and 47 ones for Flat Glass, making a total of 58. These include 2 completely new

trade-marks developed during the last annual period: Klare and ECOPURE. The first one refers to an

architectural product with exceptional light transmission, due to the quality of the substrates used in its

manufacture. While the second one consists of a self-cleaning automotive glass, resistant and colorless

that enhances vision during and after rain.

Our now broad and traditional range of brands includes Clnica Vitro, Museo del Vidrio, Vitro Cristal,

Vitro Parque El Manzano, lcali, Bikaly, Calli, Salerosa, Sal Hada, Fama, Vitro America, Binswanger Glass,

Crinamex, Vit Vitemco, Vitrocar, VPM, as well as the families of architectural products Color, Decoration,

Safety, Double Pane Glazing, and Low Light Transmission & Solar Control. This last one is the first line ofits type in Mexico. The objective of the Vitro corporate name is to enable the customer to be familiar

with our products and services, so she or he can identify and differentiate them highlighting the quality

of the Company and providing after-purchase satisfaction indicators.

Belonging to a single glass family, all Vitro brands have a common association with this material either

by forming part of its manufacturing process or by being themselves the final product. Remember that

our glass containers are 100% sustainable and a safe packaging option, made from natural raw materials

that can be totally recycled without losing any physical or chemical properties. Each time we include

recycled glass in the manufacturing process, energy requirements can be reduced as much as 32%.

Furthermore, in the case of natural degradation glass does not release aggressive substances into the

environment.


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GLASS MANUFACTURING PROCESS

All of the previous statements are based on remarkable characteristics of the material, which is inert

and hygienic since it does not alter its content when used for packaging. In the case of architecturalglass, it allows visibility and natural illumination while regulating the amount of visible and ultraviolet

lights, as well as infrared energy and excessive heat gain by having thermal insulation characteristics.

These distinctive properties of glass do not delay our commitment with innovation. The Technology,

Engineering, and Product Development Departments continuously work on new ideas, creating original

products and improving the existing portfolio as promoted by our set of Values.

Further embracing our quality assessment, we constantly seek to meet and exceed costumers

expectations. Therefore, the processes for new product development include an exhaustive review of

their performance and environmental impact, in order to minimize any possible risks for their

introduction to the market. It is important to point out that this practice does not compromise ourability to respond to upcoming costumer needs, as we have consistently reached a standard response

time of 64 days for developing a new product. This represents a drop of 35 days for the same indicator

at the beginning of the decade. The standard has been achieved on the basis of a highly specialized team

strengthened by the incorporation of new organizational and technological strategies.

Another example of the excellence of our production process is that we have the only inland plant in the

world with technology for the management of effluents in the processing of sodium carbonate.


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Likewise, our technology in tempering, laminating and annealing have improved glass resistance, while

further improving its acoustical and thermal properties.

The light-weighting of our products is another key factor in our differentiation in the industry, as it

reduces the use of raw materials and ameliorates the product handling and transport, contributing to

savings in the energy consumed in distribution. We are in the process of developing a methodology toevaluate and quantify the impact of glass containers light-weighting in the logistical and distribution

processes, both domestically and internationally. This is a complex task due to diversity of the different

transport systems in use.

During 2009, we concluded 22 container light-weighting projects with the support of our customers,

reducing the consumption of melted glass by 13,222 tons, which represent energy savings for 62,407

million BTUs. In the same line of action, we have sought to make the decorating of our containers more

environmentally friendly, avoiding risks that could possibly harm the consumer. Hence, all of our export

containers use organic paints and are free of heavy metals such as lead and cadmium.

In the Mexican market we reached our annual goal for 2009, using organic paints in 85% of ourcontainers. For 2010, our objective is to increase this indicator to reach 90%. Besides, 100% of our

containers are lead-free and 80% are cadmium-free, exceeding the environmental standards applicable

in Mexico. Working hand-in-hand with our suppliers, we have set a goal to develop the necessary

technology and equipment to make all of our decorated containers 100% cadmium-free by the end of

2010. It is important to mention that in 2009 we received no significant sanction for non-compliance to

any health regulations covering our products.

Another unique example of our efforts and performance in the area of technology is the program for

applying nanometric particles that generate new value-added solutions for the glass industry. Among

the projects included in this application there are the development of functional coatings, thereengineering of complex windshields and side windows for the automobile industry, as well as the

processing of ultra-clear glass for the construction industry. These applications have gained in popularity

within the framework of Nuevo Len Nanotechnologies Cluster, which joins the Center for Research and

Advanced Studies (Cinvestav) of the National Polytechnic Institute (IPN) and Center for Research in

Advanced Materials (CIMAV).

These efforts have consolidated by generating interest from different government levels that, together

with the National Science and Technology Council (CONACYT), donated $ 27,749,225 pesos to the

project. This way Vitro has positioned itself as one of the companies most committed to innovation in

the area of science and technology in Mexico.

Another recent innovation from the Company is the Center for Architectural Design (CDA) that offers

specialized sustainable solutions for facades and interior spaces. Created in 2008 and based in Mexico

City, CDA has been able to develop several significant projects that stand out for their impressive results

in reducing energy consumption and providing better integration of the services they provide for the

community.


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CDAs Argentum, the un-official name for the Zacatecas Government Sector, is a 10 building site that

houses the different local government departments and agencies. It stands out for its innovative

structure that eases access to public services simultaneously providing sustainable solutions both in

maintenance and functionality. Similar to this project, CDA designed the Government Tower for Ciudad

Victoria, Tamaulipas, which is a structure whit heating and solar protection characteristics that

significantly reduce the environmental footprint of the building.

The afore-mentioned ventures are just a small sample of the important contributions of CDA to the

realm of architecture in Mexico, United States, and Ecuador. They represent the way in which Vitro

responsibly integrates its products by offering value-added services that assure the total satisfaction of

the customer, as well as direct benefits for the end-user and the community in general. The Company

permanently works towards implementing solutions that respond to the evolving needs and imply a

direct conscientiousness on sustainable development.

Responsible marketing and customer satisfaction

GRI PR3, PR4, PR5, PR6, PR7, PR8 and PR9

In compliance with its Values of quality and integrity, Vitro makes a concerted effort towards the

customers by providing easy access to precise and clear information regarding its products and services.

This stems from our focus on the fulfillment and satisfaction of the expectations of our economic and

manufacturing activities. Besides, the new conditions of global trade and sustainable imperatives

require an on-going commitment and strict compliance to legal regulations and internal policies with

regards to labeling, marketing, and advertising.

The Company is an intermediate industrial supplier of containers, auto parts, raw and building materials,

as well as machinery and equipment. Thus, our market customer is not the end-user and there are no

specific codes in this area that can be generally applied to our products. Nevertheless and besides ourbranding, we always make sure to include key information in our packaging. For instance, we indicate

the place of origin of the product with distinguishing labels such as HECHO EN MXICO. Also, when

wood is used to prepare our products for distribution we include the HT Seal, which states it was heat

treated to eliminate possible plagues.

We make special mention of the salts processed and sold in Mexico through Industria del lcali. For this

sector we must comply with certain specific labeling regulations, especially in the case of table salt. This

product is regulated by the Mexican Official Norm NOM-040-SSA1-1993 that provides the sanitary

specifications that must be included on the labels for proper use and consumption of iodized salt,

particularly the one containing sodium fluoride.

This is one of the few examples where we have a direct line to the final consumer. As we previously

mentioned, this is due to our position as a midstream supplier in the industry. For the same reason, we

do not have a public satisfaction program but rather handle this area individually with our industrial

customers. Any comment regarding technical and quality satisfaction is resolved expeditiously through

established procedures in our management and strategy software (SAP) in which customers have been

included through special access.


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To benefit this close relationship, we maintain strict control over our sales data since it is vital for the

Companys marketing strategy. The handling and access of this information is based on the guidelines

established by the Business Conduct and Corporate Ethics Code. As a result of the adherence to this

internal policy, we go beyond the legal standards on information protection. In addition, we received no

sanctions for non-compliance to any of the regulating codes for labeling, marketing, or data filtering

during 2009.

It is important to point out that this applies for all of our manufacturing plants, as well as all locations

where our products are distributed or marketed. Providing reliable supply is an essential part of our

Philosophy. Since, we comply with all international requirements on this issue and during 2009 we

received no significant fine.

For example, in the case of automotive safety glass we follow and comply with the supply standards

regulated under the international norms DOT-MVSS205 for North America, ECE-R43 for the European

Union and Taiwan, CNCA-CCC for the Peoples Republic of China, and GS-42 for the Persian Gulf States.

At Vitro we are proud of this accomplishment, as we have been manufacturing these products for 50

years without ever receiving any relevant sanction for non-compliance to these regulations or their

predecessors.

SUSTAINABLE PRODUCTION

As mentioned at the beginning of this report, the Company is aware of the need to maintain itself in a

process of constant evolution. This implies planning in line with its needs and those of its stakeholders,

but Vitro also understands the need to move forward on implementation. Economic and social dynamicsare changing very fast so we must continue to consolidate all of our achievements. For this reason, two

of our Values are precisely quality and innovation.

A global example of these shifts is climate change, which currently accounts for several clear challenges

in our daily lives. This phenomenon was first considered a mere environmental perspective, but has

already manifested its impact in economic, political and social areas. Vitro has sought to anticipate these

changes and adapt its productive activities accordingly.



IMPLEMENTATION OF EFFICIENT PROCESSES

GRI EC2, EN4, EN16, EN17, EN18, EN19, EN20, EN23, EN26, EN27 and EN29

Vitro believes in setting the example, hence our processes are safe and moving forward in emission

control and reduction, resource savings and recycling, all of which aim to support the afore-mentioned

Responsibility for our Products as a path to define our commitment to a Feasible Environment. As an


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instance of our commitment, we had no significant spills of dangerous materials or pollutants such as

fuels, chemicals, or oils during 2009.

Achievements like this result from the implementation of the Vitro

Environmental System (SAV), in plae since 2000. SAV allows for the

monitoring and alignment of our efforts in the preservation of theenvironment. Likewise, it has been stipulated to all our personnel and

those entities included in our value chain that we must oversee the

environmental impact of the operations, comply with current

regulations, anticipate future changes, and make the most efficient use

of their resources.

Successful SAV execution has lead most of our plants in Mexico to be certified as Industria Limpia by

the Federal Environmental Protection Agency (PROFEPA) year after year. As another result of the

system, our five manufacturing facilities for automotive glass located in Mexico and Colombia have been

certified under ISO 14001. Beginning in 2007, we have in place a Policy for the Recovery of Packaging

Materials that prioritizes its reuse to lengthen their useful life and reduce the consumption of raw inputs

such as wood and several kinds of plastics. Achievements in this area are an incentive to continue

focusing on the subject.

Based on similar interests, Vitro has started to work on an Inventory of Green House Gas Emissions

(IEGEI). This monitoring tool will allow us to have an adequate measurement of our footprint in the

process of climate change as established by the Kyoto Protocol. IEGEI is structured to consider two levels

of effects according to the Companys participation in those processes, first there are those totally

controlled Vitro and second those derived from our electrical energy consumption.

The current goal is to finish and approve the document during 2010 so that concrete reduction actionscan be implemented in 2011. This project is a new reference instrument that will provide measurements

that today we cannot have over the gases that contribute to global warming. It will also help us to

understand and calculate the financial consequences that climate change has on our activities, by

enlarging the Company scope in this important area.

We have initiatives already in place for energy savings and emissions control that help reduce our direct

and indirect impact on air quality. Nevertheless, IEGEI will help us develop an integrated project with

expanded reach, consolidating of our efforts to maintain air quality.

The list of projects implemented before 2009 in this area include the Program for Atmospheric

Emissions Reduction, which elaborates chemiluminescence measurements for Nitrogen Oxide (NO) and

gravimetric analyses for Suspended Particles. The projects purpose for this year was to continue a

decremented tendency in the emissions of both byproducts, as shown in the following tables the target

was achieved. Our objective for 2010 is to consolidate this trend through improvements in the glass

melting process together with other preventive actions to assure that our results are well within official

regulations. The challenge in this case is to control the air factor parameters inside the furnaces to

optimize combustion for improved efficiency.

SAV ELEMENTS

Leadership and Planning

Prevention in OperationsRegulatory FrameworkResource OptimizationEnvironmental CultureEvaluation and ImprovementEnvironmental Indicators

8/7/2019 RSE - Reporte de Sustenta

RSE - Reporte de Sustentabilidad de Vitro 2008/2009

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