Return to flip book view

Sustainability Report2021

INDEXChief Corporate Officer LetterCorporate Profile HistoryPresenceCorporate GovernanceCorporate ValuesSustainability Strategy Human Rights Complaint Mechanisms Ethics Sustainable SourcingExternal InitiativesSocial PerformanceOur PeopleEquality and No DiscriminationTraining and EvaluationCommunicationSafetyHealthAdditional Benefits34ProductsMarketsAuditsSupply ChainSustainability Strategy – Aztec PlumbingConsultation with StakeholdersPresenceProductsMarketsApplications AppendixEnvironmentEnvironmental PolicyEnvironmental GoalsClimate ChangeWaterCircular EconomyBiodiversityMulticeras ProfileProductsApplicationsPresenceMarketsInnovationAssociationsCertifications, Audits, and AwardsSustainability Strategy – MulticerasConsultation with StakeholdersSupply ChainCandelilla Wax Supply ChainAllies in Social Responsibility Community Engagement Candelillero Communities 5667891010111112131314151616171718202121232324242526272829303132333341414242363737373839434444122240431735GRI Content IndexAbout This ReportContactVolkom ProfileAztec Plumbing Profile

Kind regards,Francisco DíazCorporate DirectorOur vision to become a centenary corporate group leader in innovation and sustainability, inspires us to undertake high-value initiatives that transcend our companies and the mindset of future generations. Our values guide us when making everyday decisions and help us line up our employees' efforts towards our business strategy.On behalf of everyone who participates in Corzen Group, I formalize our pledge to continue developing the Ten Principles of the UN Global Compact within our business strategy, making it part of our corporate culture and everyday decisions in our organization. Chief Corporate Officer LetterDear friends,2021 was defined by the prolongation of the world pandemic and its effects on global supply chains, which created a universal feeling of uncertainty regarding health and the economy. It was a year of logistical challenges, of the scarcity of necessary materials for the industry, and more importantly, it was a year in which our team was able to adapt and boost growth. Entrepreneurial leadership in our companies is and will continue to be fundamental to cover the market requirements in creative ways.The outbreak of new Covid-19 strands forced us to act swiftly and efficiently by reinforcing our sanitary safety measures and implementing actions that allowed us to achieve a steady and reliable operation to respond appropriately to the needs of our clients. Regarding our achievements, the most significant for us this year was the consolidation of our corporate strategy. I am pleased to share with you the evolution of Multiceras Group into Corzen Group, a corporate entity created to organize, operate, and manage our business units under one sole business philosophy.The corporate structure in Corzen Group allows us to collaborate in a swift and dynamic environment to share our competitive advantages and create synergies to offer the most value to our clients. The companies and business units conforming the new group are Multiceras, Aztec Plumbing, Arca Chemicals, and Volkom, all of them privately owned and belonging to the same group of shareholders.We have witnessed the advantages of integrating sustainability in all operations establishing new business relationships with clients that aim to incorporate reliable, trustworthy, and sustainable raw materials into their products. This has motivated us to maintain and reinforce investment in innovation to offer our clients products that allow them to reduce environmental and social impact across their value chain.GRI 102-10, 102-14, 102-15, 102-233

Founded in 1978, Multiceras offers a diversified portfolio of solutions dedicated to the cosmetic, pharmaceutical, and food industries, as well as industrial solutions for the production and coating of cardboard packaging.Aztec Plumbing began as an independent company in 2000. Through a broad portfolio of plumbing solutions, its products are part of the offer of recognized brands in different channels such as: leading hardware and home improvement retailers, wholesalers, toilet manufacturers and cooperatives in various parts of the world.Established in the USA in 2008, Arca Chemicals assists the companies in the corporate group with the purchase of raw materials, import of equipment, and access to funding sources. Additionally, Arca Chemicals commercializes high-quality Mexican products in the USA.Our first Strategic Business Unit, Volkom, develops solutions for the construction industry, such as emulsions and additives for wood and drywall panels, concrete, and asphalt. Focused on custom engineering integration, Volkom also offers lubricants and coatings for the automotive and metal mechanics sectors. Volkom also supplies paper sizing and pulp production solutions, applicable in box coatings such as sizers and defoamers. Since its foundation, Multiceras has been characterized by its focus on growth, diversification, and innovation. After this 43-year journey, the company has developed and is now in a promising position; success in business growth and the diversification of applications has forced us to strengthen our business strategy and evolve towards a corporate that integrates all brands and products.In 2021, the Board of Directors of the Multiceras Group decided to change the corporate name to Corzen Group. This corporation is comprised of the companies Multiceras, Aztec Plumbing and Arca Chemicals, which belong to a Mexican family. Each of the companies serves specific markets, but they are united in their purpose, values, and how they operate and do business.In order to better understand the needs of our customers and focus more efficiently on the industries we serve, we created Strategic Business Units (SBU). Each of the SBUs handles specific markets, clients, and requirements, which allows us to facilitate a more comprehensive development and optimized attention. The first SBU is Volkom, which began in 2020 and is focused on the industrial and building sectors.4PurposeVision“To create solutions that make the world more sustainable and efficient.”“To be a centenary corporate group leader in innovation and sustainability.”IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix Corporate ProfileGRI 102-1, 102-5

HistoryThe company was founded under the name BaldiniThe first production plant was established in Saltillo, CoahuilaThe plant was relocated to Santa Catarina, Nuevo LeónThe company started the production of wax rings for the plumbing industryThe current production plant and corporate offices were built in García, Nuevo LeónAztec Plumbing began as an independent company The company was divided into Multiceras for the manufacture and commercialization of waxes, and Multiquim for the distribution of chemical products1978198119831985199019912000Multiquim was sold to Noveon, Inc.Candelilla Institute was foundedArca Chemicals was established in United StatesMulticeras and Aztec Plumbing adhered to the UN Global Compact and began to present sustainability reports the following yearNew laboratory facilities were created to increase our capacity for R&D and innovationMulticeras Group corporate entity was created to include Multiceras and Aztec Plumbing companies, as well as new Strategic Business Unit, VolkomMulticeras Group was renamedCorzen GroupFaucet brand Grifen was integrated into Aztec PlumbingMulticeras received the Socially Responsible Company award from CEMEFI (Mexican Center for Philanthropy)2002200420082012201320182020202120215IndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix

IndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix GRI 102-3, 102-4The production plants of Multiceras and Aztec Plumbing, as well as their corporate offices and laboratories, are located in García, Nuevo León, Mexico. Corporate Governance PresenceGRI 102-18, 102-19, 102-20, 102-26, 103-1, 103-2The Executive Board of Multiceras Group provides our highest level of governance. It sets strategy, authorizes the annual budget, oversees internal procedures, and monitors progress. Our Advisory Council of independent members provides advice on ethical, legal, and strategic matters. General management is responsible for executing the strategy set by the Executive Board, managing operations, and approving policies. The Chief Executive Officer is supported by the Chief Corporate Officer, Chief Commercial Officer, and other management executives. Each Strategic Business Unit (SBU) has a manager who is responsible for executing the unit’s specific strategy, as well as for its sustainable growth.6

Corporate ValuesGRI 102-16, 103-1, 103-2In 2021, the Board of Directors revised the corporate values and decided to upgrade the value of Safety into Health and Safety. The health of our employees has always been essential for the continuity of our business, but the Covid-19 pandemic showed us that we needed to establish special protocols and change our way of thinking into a more proactive one to ensure the health of all our staff. 7Commitment Creativity Health andSafetyExcellence Service Respect Commitment motivates us to give our all to the team and trust that we can achieve our goals together. Excellence drives us to perform at our highest level. Creativity inspires us to generate ideas, push boundaries, and discover original solutions. Service allows us to anticipate customers’ needs and collaborate with them to create solutions tailored to their business. Our employees are the cornerstone of our business, so their physical and mental health, as well as their safety, are a priority for us.Respect means honoring ourselves, others, and the environment that sustains us all. We live our values with a sense of belonging and responsibility through our corporate cultureIndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix

Sustainability StrategyGRI 102-168Climate AmbitionCorzen Group operates through a sustainable business model Corzen Group operates creating shared value with our stakeholdersseeking permanence in the market through legal compliancerespect and concern for the environment and societyIndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix For Corzen Group, sustainability is the integration of our values and respect for Human Rights, and the preservation of the environment. Our goal is to achieve businesses that create value for our customers while supplying them with raw materials and quality products that help them reduce their social and environmental impact.In 2021, we promoted the consolidation of sustainability strategies both as a corporate group and individually in each company. To achieve this, we determined ourselves to update the Materiality analysis for Multiceras and Aztec Plumbing, considering the corporate development of the business and the strengths of each of the companies.We actively participate with our allies and business associates, which allowed us to work together with the Global Compact in two of their initiatives focused on the Decade of Action:The program SDG Ambition (Sustainable Development Goals Ambition) introduced us to the business reference points for the Decade of Action. We have adopted three of their general goals, each of them with specific objectives.1) Land degradation neutrality, including zero deforestation.2) Net positive water impact in water-stressed basins.3) Science-based emissions reduction in line with a 1.5°C pathway.SDG AmbitionSimilarly, we participated in the Climate Ambition program of the Global Compact, which allowed us to strengthen our strategies to define goals for reducing greenhouse gas emissions based on science in line with a 1.5 °C pathway. We are working with the data obtained, and the mechanisms learned to define the goals and notify all our stakeholders.

For the Corzen group, ensuring respect for human rights is essential; therefore, we support international initiatives, comply with regulations, and promote human rights in our operations and value chain. Human RightsGRI 102-16, 102-41, 103-1, 103-29Our Social Responsibility Policy supports initiatives that prohibit child labor and forced labor within our company and with our suppliers and contractors. Likewise, we recognize the right of collective bargaining and the right of association following the law and applicable regulations inside and outside the company.We integrate into our policies and operations a strict adherence to the Code of Conduct to strengthen our team, contributing to the development of a better quality of life at work, equal opportunities for development and the improvement in the well-being of our employees and their families. In the companies of Corzen Group, we reject any situation of discrimination, abuse, and harassment of all our employees. It is mandatory that all personnel receive training on human rights during their entry to the organization and at least once a year. Additionally, all employees are trained in the Social Responsibility Policy, the Internal Regulations, the Code of Ethics, and the Code of Conduct.In 2021, thanks to an alliance with the Human Rights Commission of the State of Nuevo Leon, 100% of the staff managing personnel received an intensive training program on human rights and the prevention of discrimination. By 2022 and beyond, 100% of our staff must have training to prevent bullying, abuse, and harassment. IndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix

For Corzen Group, ethics must prevail in all the businesses of its companies. Our Code of Ethics integrates the guidelines and behavior in business matters that all our employees must follow, and we categorically reject any corruption, extortion, and bribery. All our personnel are trained in the company's Code of Ethics. In addition, all newly hired personnel receive training in the Code and the different complaint mechanisms. Complaint Mechanisms GRI 102-17EthicsGRI 102-25, 103-1, 103-2, 205-2, 205-3All internal and external complaints are processed confidentially, guaranteeing respect for human rights and no retaliation.The Code of Ethics addresses the following situations and provides protocols to deal with them: • Conflict of interest• Bribes• Fraud• Corruption• Money laundering10We are open to receiving complaints regarding employee violations of our Code of Conduct or our Code of Ethics through one of our emails: cuentanos@multiceras.comethics@aztec-plumbing.comExternal ComplaintsWe have multiple mechanisms that allow employees to provide suggestions, denounce behavior and violations of the Code of Conduct, and give general feedback to the company. For example, we have suggestion boxes located throughout our facilities, and all employees have direct access to Human Resources personnel.Internal ComplaintsWe are open to receiving complaints from any person who detects a violation of our Code of Ethics by any of our employees, through our emails: cuentanos@multiceras.com, ethics@aztec-plumbing.com.During 2021 and in previous years, no cases of corruption or breaches of the Code of Ethics have been detected. We constantly remain vigilant through internal mechanisms and with open complaint lines.IndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix

External Initiatives Sustainable Sourcing GRI 102-12In our vision of integrating sustainability into all the processes of the company's operations, we seek to have a supply chain that shares our values and responds to the ethical, social and environmental expectations that we have defined as a corporate group. All current and potential suppliers must sign and commit to complying with our Supplier Code, which integrates our requirement to fully comply with all applicable legislation on social and environmental matters. They must maintain ethical compliance and offer complaint mechanisms. Our goal is for 100% of all suppliers to sign the Code by 2022.11We believe it is our ethical duty to contribute to Mexico's social and economic development. Therefore, we have undertaken several initiatives and committed to international standards:Since October 2012, we have adhered to the Ten Principles of the UN Global Compact regarding human rights, labor, environment, and anti-corruption. In 2021 we actively participated in the initiatives of Global Compact Mexico to understand our responsibility and scope for the achievement of the United Nations 2030 Agenda. To adopt international standards regarding ethical trading, we have included the ETI Code in our policies.The Global Reporting Initiative is an independent international initiative that helps companies be more transparent and take responsibility for their impacts through a common language, providing a standard for sustainability reporting.Ethical Trading InitiativeGlobal Reporting InitiativeIn 2021, a sustainability questionnaire was sent to all our suppliers, both from Multiceras and Aztec Plumbing. The objective of these questionnaires is to know our suppliers better and develop sustainability projects with them. So far, 41% of them answered the questionnaire. The goal for December 2022 is for 100% of strategic suppliers to answer it. 11United Nations Global Compact IndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix GRI 103-1, 103-2

One of our pillars of social responsibility is our employees. Each employee is key to our success and part of what makes Multiceras and Aztec Plumbing leading companies.We value the commitment of our employees and provide awards to those who meet five-year milestones with the company. In 2021, 14 awards were given at Multiceras and 8 at Aztec Plumbing: We respect the right to collective bargaining, and 100% of employees working in operations have a collective labor contract that local authorities have approved.We outsource some security, cleaning, and first aid services to outside contractors. Social Performance Our People GRI 102-7, 102-8, 102-41, 401-1, 401-3, 407-1Year201986 22 108 32 %1%7%7%2%4 women, 13 men10 women, 5 men3139 %38 %991041721828320202021WomenMulticerasAverage monthly rotationAverage monthly absenteeism New hiresParental permits Aztec PlumbingTotalPercentage of personnel with a collective contractMenYear201915 55 70 83 %88 %84 %97677648211920202021Women TotalPercentage of personnel with a collective contractMenEmployment data for 2021:5 years 10 years 15 years 25 years 35 years 9 people2 people 1 person1 person1 person 7 people1 person5 years 10 years 12MulticerasAztec PlumbingMulticerasAztec PlumbingIndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix

At Corzen Group, inclusion is part of our culture. We seek the development of our employees without any discrimination. In our policies and internal procedures, discrimination due to gender, religion, ethnicity, and sexual orientation, as well as human rights violations, are prohibited.We support equal opportunity for men and women. Women represent 30% of administrative staff, and women hold 22% of key positions within the company.In 2021 no discrimination complaints were filed.We provide employees with resources to acquire knowledge, innovate, and increase productivity. We invest in courses and training to foster employee development. This year, 18 key employees were enrolled in an online Master of Business Administration: ThePowerMBA. All our administrative staff receive performance evaluations. These are the 2021 results.Equality and No Discrimination GRI 406-1Training and Evaluation GRI 103-1, 103-2, 404-1, 404-2, 404-3 149 Courses 2,820Training hours27.12Average hours of training per year per employee417, 908 MXPTotalinvestment 19English scholarships16Masterssholarships1Bachelors scholarship32 104Courses 1,019 Training hours15.20Average hours of training per year per employee51,286 MXPTotalinvestment1English scholarship2MasterssholarshipsMulticerasAztec Plumbing13IndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix

Communication Communication with the CEOThe CEO held several virtual meetings throughout the year to acknowledge staff efforts in dealing with the challenges COVID-19 presented us, and to share company results and successes.14Coffee Talk Human Resources implemented a Coffee Talk program, organizing virtual meetings within different company areas. The sessions were intended to foster interpersonal relationships.In 2021, adapting to the new requirements of Mexican Government norm NOM-035 on the psychosocial well-being of employees, we continued with our Comprehensive Well-being program. This program consists of talks and workshops with mental health professionals who help us raise awareness of the circumstances we are experiencing and recognize the factors for developing personal, family, social, and work well-being.We must foster an environment of transparency and trust. We do this by having continuous conversations through practices and events that allow us to listen to all of our team members. IndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix

Many of our processes involve handling chemicals, hot materials, and steam. To prevent injuries, we perform risk analyses in designated areas, including key personnel. Every incident (minor injury) or accident (major injury) is thoroughly investigated to determine the causes, and the results of the investigation are incorporated into our internal methodologies to prevent future recurrences. In 2021 we had: On November 25, 2021, a company neighboring our facilities suffered an incident that caused a large fire. Fortunately, no injuries or human losses were reported. The personnel of our Firefighters Brigade followed the established protocol and all of them demonstrated admirable commitment and courage. The different departments of state and city Civil Protection and Firefighters recognized the support our employees provided during the extinction of the fire.Following the recommendations to avoid contagion by Covid-19, we carried out the safety training under strict sanitary protocols, where we provided the participants with protective suits and the required distance measures. Likewise, we carried out evacuation drills on time involving all personnel who work in person.3292.6311.84010087,1726.882.290151,972MulticerasAccidents (major injuries)Incidents (minor injuries)Fatalities as a result ofwork-related injuryTotal number of hours workedRate of recordable work-related injuriesRate of fatalities as a resultof work-related injuryAztec Plumbing15The safety of our employees is paramount. We are always investing in infrastructure, and we are continually working with our personnel to improve their preparedness for an emergency. Training is given annually to personnel belonging to our brigades and committees.SafetyGRI 103-1, 103-2, 403-1, 403-2, 403-4, 403-5, 403-9Evacuation Brigade 19 19 22 25 8 18Search and Rescue BrigadeFirefighters Brigade First Aid Brigade Legal Requirements Committee Health and Safety Committee Rate of high-consequence work-related injuries (excluding fatalities)Data 2021Number of people who received trainingIndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix OUR GOAL:0 Accidents201941MulticerasAztec Plumbing202014202132

Employees receive benefits and incentives beyond those required by law, which allow them to have a higher quality of life. Health GRI 103-1, 103-2, 403-3, 403-6, 403-816Additional salary bonusesBonus for birth or adoption of children, death of family members, and marriageChristmas bonus for employees’ children Education aid for employees’ childrenFull days and half days off, additional to those required by lawPersonnel transportation Visual health aidIn 2021, the federal and state governments made available the vaccines that prevent health complications from Covid-19. We started an extensive communication and information campaign based on official and scientific data, promoting the voluntary application of vaccines in our staff and their families. By the end of 2021, we achieved the goal of 100% of our staff vaccinated with at least two doses. During September, October and November 2021, the company provided support so that employees and their families had the opportunity to complete their vaccination schedule against Covid-19 free of charge through the border vaccination program promoted by the government of the state of Nuevo León. We organized four trips. and 25 employees, and 67 family members were vaccinated. In addition, to prevent and reduce the chances of contagion, we reinforced our strategy, maintaining previous actions and promoting new protocols and mechanisms: Restriction of trips, and visits to the premises. Screening protocols upon entering company premises. Access to free certified KN-95 masks to all employees.Despite the COVID-19 situation, we maintained all activities focused on ensuring our employees' occupational health and well-being. 100% of staff enjoy the following benefits:Ambulance serviceFirst aidSmoke-free environmentVaccine campaignsYearly health examsAdditional Benefits Due to the impacts of Covid-19 since 2020 and the appearance of new variants with greater contagion potential, during 2021 the company continued with the measures to prevent our employees from being exposed to the virus. This allowed us to ensure the continuity of the operation, considering the safety and satisfaction of all our stakeholders.The Home-office modality was formalized in the employees’ contracts.Protocols for suspected cases of COVID-19. Random rapid tests are performed on employees for timely detection and prevention. IndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix

At Corzen Group, we are committed to the ideals of innovation and efficiency in our processes, as they allow us to decrease our negative environmental impact.CO emissionsBy 2030, we will reduce 30% of CO emissions into the atmosphere per kilogram of production, considering the year 2019 as a base. Energy By 2030, 50% of our energy will come from renewable sources. At Corzen Group, we are committed to protecting and conserving the environment, preventing injury and illness in the workplace, and providing a safe working environment by complying with legal requirements and best practices.EnvironmentEnvironmental Goals Environmental PolicyIn 2021 we established more precise quantification mechanisms for water, energy, and waste. This monitoring has allowed us to update our environmental goals and set more specific ones aligned with our commitment to the 2030 Agenda. 17IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

GRI 103-1, 103-2, 302-1, 302-4, 305-1, 305-2Climate Change * Includes Greenhouse Gases: CO, CH y NO18At Corzen Group, we are aware of the great negative impact of Greenhouse Gases (GHG) on the atmosphere and their consequences on global warming. We take action to obtain reliable data that allow us to calculate our impacts on climate change. Similarly, we have promoted initiatives to establish GHG reduction goals in all our business areas. Our commitment to the planetEnergy (MWh)Natural gas (m)LP gas (l)Fuel (l)Total595535,02361,42073, 4113001,2121041751,792664531,84461,79038,225660505,52461,07054,1552791,1451031291,6563281,205105911,729Multiceras2019 2020 2021TonCO Eq*Energy (MWh)Fuel (l)TotalAztec Plumbing2019 2020 2021TonCO Eq* TonCO Eq*TonCO Eq*TonCO Eq*TonCO Eq*Our carbon footprint is composed as follows:MulticerasAztec Plumbing1864,20592111031891,2601952,1558258793396IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix FuelLP GasNatural Gas FuelEnergyEnergy

Reduction InitiativesOperationsIn 2019, we installed solar panels, seeking to promote our own electricity generation from renewable sources.Our carbon footprint by scope is composed as follows:At Multiceras, we have a current capacity of 88,202 kWh per year. In 2021 the energy production was 65,080 kWh, representing 10% of the energy consumed.At Aztec Plumbing, we have a current capacity of 37,647 kWh per year. In 2021 the energy production was 14,879 kWh, representing 8% of the energy consumed.19All calculations were obtained through the company's internal measurement system, and using the emission factors available in the National Registry of Emissions of the Ministry of Environment and Natural Resources of the Mexican Government.1,492 300 1,792 1,401 328 1,729 Aztec Plumbing 2019 2020 2021MulticerasDirect emissions of greenhouse gases (GHG) Scope 1 Indirect emissions of greenhouse gases (GHG) Scope 2Tons of CO equivalent 2019 2020 20211,377 279 1,656 11921033939658287IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkomAppendix

We are collaborating closely with energy providers to increase our clean energy consumption. Our goal is to ensure that 50% of the energy consumption of the Corzen Group companies comes from renewable sources by 2030.Logistics and PurchasingWe have established an indicator that allows us to measure the emissions of our supply chain of strategic materials.In 2021, compared to 2020, we were able to reduce Greenhouse Gas emissions by 11% in the key supply routes for the business through strategies to maximize volume and develop strategic suppliers.We carried out an analysis of routes for the supply of Candelilla wax, improving the efficiency of the vehicle fleet required to purchase the wax in the communities.During 2021 we promoted these water-saving initiatives20Additional salary bonusesBonus for birth or adoption of children, death of family members, and marriageChristmas bonus for employees’ children Education aid for employees’ childrenFull days and half days off, additional to those required by lawPersonnel transportation Visual health aidGRI 103-1, 103-2, 303-1WaterEnergy produced by solar panels (kWh)35,991 18 5% Aztec Plumbing 2020 2021Tons of CO Equivalent neutralizedMulticerasPercentage of energy from renewable sources2020 202165,0803210%10,77156%14,87978%Water is a vital natural resource for our operations, as it is necessary for its conversion to steam used to heat our production tanks and as a raw material in some of our products.Control of water consumption, diversifying by sourcesUse of discharge water from softeners to be used in general servicesEstablishment of process control equipment to prevent steam leakage and improve boiler efficiencyInnovation in production processes and new technologies to take advantage of water from alternative sourcesInvestment for the development of new products that require less water, either for their manufacturing or as a raw materialMulticeras8, 327These are our consumptions (m)2019 2020 20217, 783 5, 492Aztec Plumbing9091,109 1,017IndexCorporate Profile Social Performance Environment MulticerasAztec PlumbingVolkom Appendix

GRI 103-1, 103-2, 306-2Circular EconomyWe measure our consumption of materials, apply mechanisms to reduce their use, increase waste recycling, and develop projects to reduce the amount of waste in public landfills or hazardous waste.Candelilla is listed in Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), which regulates its international trade. This is done to avoid harvesting rates incompatible with Candelilla’s survival as a species.To legally export Candelilla, it is necessary to receive a CITES permit from SEMARNAT (Mexican Environment and Natural Resources Ministry), which is responsible for ensuring the lawful origin of the product and compliance with the harvesting permits for each community. Additionally, we provide training to rural producers (Candelilleros) on the requirements of the official Mexican standard (NOM-018-RECNAT-1999 *), which establishes the appropriate procedure for the sustainable use of the Candelilla plant. The agribusiness team of Multiceras supports the Candelilleros in the preparation of the Forest Studies to obtain their harvesting permits to collect the Candelilla plant in their communities. It also processes the obtaining of the CITES permit to be able to export Candelilla wax. *https://biblioteca.semarnat.gob.mx/janium/Documentos/Ciga/libros2009/DO2264.pdf21GRI 103-1, 103-2, 304-2, 304-3, 304-4BiodiversityRecycled waste (tons) We recycle cardboard and palletsHazardous waste (kg)Special handling waste (tons) 298,73262 Multiceras2019 2020 2021835,102 73 551,581 89 Special handling waste (tons)25 Aztec Plumbing2019 2020 202125 40 During 2021 we carried out several reduction initiatives such as the following: Control of material consumption, as well as responsible provision Negotiation with suppliers to improve and reduce the packaging of raw materials received Separating, recycling, and quantifying use of plasticsWe recognize the importance of protecting biodiversity and commit to using natural resources responsibly, operating following national legal frameworks and regulations, and promoting sustainable projects of social and economic benefit to the Candelilla communities. IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

Multiceras is a Mexican corporation specializing in the design, fabrication, and commercialization of natural, synthetic, and petroleum waxes, as well as related products for industrial applications. The company comprises an interdisciplinary team that promotes innovation and creativity, aligned with a sustainability model based on ethics, human rights, and respect for the environment. We aim to develop business solutions that promote the competitiveness of our customers' products and services around the world.To provide reliable and personalized solutions that contribute to the competitiveness of our customers.To be a global competitor and a contributor to the success of our customers, employees, suppliers, and community.MissionVision22IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix 1864,20592111031891,2601952,1558258793396

23ProductsGRI 102-2Candy coating waxes and gum baseCoatings for packaging and paper Exfoliating agents for skin careFood release agentsSpecialty waxes and esters for cosmeticsWaxes and resins for pigments and TTR (Thermal Transfer Ribbon)ApplicationsOur solutions are used in more than 30 different applications, from school, cosmetic or pharmaceutical, to industrial coatings.Aware of the products that reach the final consumer, we are very clear about why we create solutions that transform the world into a more sustainable and efficient one.At Multiceras we focus on developing specific solutions for each client. We offer a broad portfolio in more than 25 countries around the world.IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

Presence and MarketsMarketsStrategic allies24GRI 102-3, 102-4, 102-6, 103-1, 103-2Our production plant is located in García, Nuevo León, Mexico. We have administrative offices in Cuatro Ciénegas and Saltillo, Coahuila.USACanadaColombiaMexicoAdditionally, we have sales representatives in the Bajío Area and Mexico City, as well as different national and international strategic allies:IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix JapanFranceSpainGermanyEngland

Circular EconomyWe incorporate the circular economy as a sustainable model in diversifying high-value products and businesses, developing key alliances that allow us to generate value from the waste generated by industries in the food sector.Natural alternativesWe formulate with natural ingredients to meet current market trends.Use of new species from the Mexican semi-desertWe promote the development of new species located in the Mexican semi-desert through extraction, refining, and fractionating their ingredients. Likewise, we carry out specific studies using in vitro models to determine their main attributes as ingredients in the cosmetics industry.Biodegradable exfoliantsWe develop microspheres made with natural waxes such as Candelilla wax, which can be used as a substitute for polyethylene-based exfoliants.Innovation25IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix GRI 103-1, 103-2

AssociationsGRI 102-13Multiceras participates in various chambers and associations to promote better business practices, share information, and lobby national and international regulatory bodies to support the market.The organizations in which we participate are:26IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

Certifications, Audits, and AwardsGRI 102-12ISO 9001-2015Regarding Quality, since 2000, we have had the ISO 9001 certification, and in 2018 we obtained the ISO 9001-2015 certification. The most recent audit was carried out in July 2021; it had to be done remotely in compliance with health protocols. Social Responsibility Audits Periodically, we seek continuous improvement through internal and external Social Responsibility audits. In 2021 we had a SMETA 6.1 audit of 4 pillars (Labor Standards, Health and Safety, Environment and Business Ethics) in virtual format since we could not accept on-site audits due to our health protocol.EcovadisTo provide our customers with a verification process of their value chain, we are voluntarily evaluated annually by Ecovadis, allowing us to integrate continuous improvement in our social compliance processes and generate excellent value for our customers.Awards In 2021 we received our ninth consecutive Socially Responsible Enterprise Award, granted by CEMEFI (Mexican Centre for Philanthropy). 27IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

Sustainability Strategy – MulticerasGRI 102-41, 103-1, 103-2, 103-3At Multiceras, we are aware of the impact that our operations have on value chains, which is why we focus our sustainability strategy on three lines: 28To complement our sustainability strategy in 2021, we updated our materiality analysis. This is a process used to identify companies' economic, environmental, and social impacts and their value chains. Subsequently, we had to consult our stakeholders to determine the priority of the issues identified. To achieve this, we invited customers, suppliers, employees, shareholders, and the management team to answer the questionnaire.We promote a corporate culture attached to ethics, respect for human rights, and social responsibility. In addition, we encourage the development of our employees and their health and safety. We promote the sustainable use of Mexico's endemic natural resources and the socio-economic development of communities. Within our facilities, we establish projects to responsibly reduce our use of natural resources. Through our innovation team, we seek the integration of technology and the use of new species to meet the needs of our customers and reduce their environmental impact through our products.Culture Sustainable PracticesInnovationIndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

Consultation with StakeholdersGRI 102-21, 102-40, 102-42, 102-43, 102-44To maximize the company's economic value sustainably, to ensure its long-term survival and leadership position in the market, and to comply with the law and ethical considerations.Annual shareholders meetings. Quarterly board meetings. Executive meetings.StakeholdersShareholdersCustomersEmployeesCommunityGovernmentSuppliersExpectationsActions TakenCommunication Channels and FrequencyTo provide customers with trustworthy and personalized solutions that help them compete in their markets.To contribute to the quality of life in our Candelillero communities. To become involved in the communities where we operate.To ensure all operations comply with the law.To establish long-term relationships with strategic partners in our value chain.To guarantee a good working environment, to support initiatives that promote personal and professional development, to ensure employee safety, to promote diversity, and to provide equal opportunities for men and women.Materiality consultation. Establishment and execution of the business strategy. Monthly financial statements.Materiality consultation. Customer audits on quality, safety, environment, management, and social responsibility. Following norms and achieving certifications.Materiality consultation. Bonus and awards program. Code of Conduct. Training programs. Scholarship program. Fulfilling municipal, state, and federal safety and environmental requirements. Adhering to SEMARNAT requirements to ensure Candelilla sustainability. Collaboration with local authorities in areas where we operate or have influence.Materiality consultation. Communication with key suppliers to ensure quality of products and services. Participation in events coordinated by organizations such as American Fuel & Petrochemical Manufacturers and European Wax Federation.Understanding the needs of our Candelillero communities. Volunteering and donations. Getting involved with civic organizations and cooperation with neighboring companies on shared issues.Biannual customer satisfaction survey. Visits to customer premises. Participation in national and international events, such as InCosmetics and Suppliers’ Day.Annual working environment questionnaire. Annual evaluations of performance and values. Open channel for complaints.Annual Candelillero survey. Communication with local authorities and Candelilleros through the Department of Agribusiness. Monthly supplier evaluations. Supplier visits.Communication with SEMARNAT personnel to process permits. Communication with municipal, state, and federal government. Participation in governmental forums and committees.29IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

Supply Chain GRI 102-9The second is our agribusiness supply chain. We collaborate with local independent producers to obtain the raw materials for Candelilla wax, our most emblematic product, through environmentally friendly methods that create value in these communities.National andInternational SuppliersTransportation to MulticerasManufacture of high quality products,meeting customer specificationsSale to nationaland international customersOur Candelilla wax supplier program provides opportunities for the development of communities through the sustainable use of forest resources, allowing us to offer products that are distinct from those of our competitors in how they are responsibly sourced and processed.30At Multiceras, we have two well-defined supply chains. The first one provides us with most of our products, such as emulsions, petroleum-derived products, synthetic waxes, and specific formulations of wax blends. IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

Candelilla Wax Supply Chain Candelillero OrganizationsCandelilla Plant CollectionWax ExtractionTransportation to MulticerasPermits for Exportation and LogisticsSales and Customer ServiceRefinement and Preparation of the Final Product According to Customer SpecificationsIn some communities, Candelilleros have organized into Rural Production Societies, which allow members to access the Mexican Social Security Institute (IMSS).Our team of forestry engineers supports Candelillero communities, helping them obtain harvesting permits that allow them to collect Candelilla plants without harming the sustainability of the species. The equipment needed for the extraction is installed in the community, and the extracting agent is provided. In some communities, citric acid has been implemented as an extracting agent. Our buyers visit the more isolated communities, providing the Candelilleros with guaranteed purchase quotas. Our R&D and innovation teams work with customers to understand their needs and provide solutions through products that have been tailored for them.The exportation of Candelilla wax requires a CITES permit. Our sales department obtains the permits and organizes the logistics needed for shipments.These teams ensure that all requirements are met.31IndexCorporate Profile Social Performance Environment MulticerasAztec Plumbing Volkom Appendix

Allies in Social ResponsibilityIn previous years, our client Yokozeki made donations that allowed improving the quality of life of the Candelilla communities' inhabitants through volunteer work and the installation of rigid roofs in the Candelilla wax extraction units.Last year volunteer activities were impossible, but Yokozeki's donation was used to install roofs on some extraction units.As part of our L’Oreál solidarity-sourcing initiative, we signed the Candelilla Sustainable Sourcing Agreement, which aims to: L'Oréal, concerned about the impact of COVID-19 on the vulnerable communities where the Candelilleros live, donated to buy food baskets distributed in the communities destined for its program, which benefited 349 Candelilleros and their families. 32Provide Candelilleros and their families with access to social security benefits.Improve work safety conditions for Candelilleros through financing the substitution of sulfuric acid with the much safer citric acid in the extraction of candelilla wax. IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

For decades, Candelilla wax has been extracted by the inhabitants of the communities of this region through a process of heating water and adding an extracting agent. All equipment and supplies required for this work are supplied free of charge to Candelilleros, who maintain a buy-sell relationship with Multiceras. The law requires that to harvest the Candelilla plant, it is necessary to submit a technical justification study to the Mexican Environment and Natural Resources Ministry (SEMARNAT), which then issues a harvesting permit. Candelilla wax is extracted from the Candelilla plant, which is native to the Chihuahuan Desert. In Mexico, Candelilla is found in the semi-arid areas in the states of Chihuahua, Zacatecas, Durango, Nuevo León, and Coahuila. Coahuila is where the largest number of Candelilleros are dedicated to harvesting Candelilla and the extraction of the plant’s wax. At Multiceras, we work in various ways to create shared value in all communities where we operate and have influence. In addition, we carry out activities with our employees seeking to increase sensitivity, communication, and closeness with the inhabitants of these communities. GRI 413-1Community Engagement GRI 103-1, 103-2, 413-133In 2021, for the second time, no face-to-face volunteer activities were carried out; however, through the cooperation of some of our customers, food-baskets were delivered to a total of from communities in Nuevo León and Coahuila.349 CandelillerosThe plant generates a wax coating to avoid dehydration due to the desert's harsh temperatures. Candelillero Communities IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

To reduce the risks associated with the Candelilla extraction process and to promote greater economic activity in the region, Multiceras has undertaken various initiatives in the communities:34Financing of Administrative ExpendituresTo support Candelillero communities, we opened a forestry office in 2017. The office has a team of forestry engineers who perform all necessary studies and monitor paperwork. In 2021 expenditures amounted to to MXP$ 2,587,411 (USD$ 127,459).Guaranteed PurchaseWe guarantee our purchase of certain levels of Candelilla wax regardless of international demand, providing Candelilleros with a guaranteed income.InfrastructureWe provide our Candelilleros with the equipment they need to extract the Candelilla wax. We also supply them will all necessary items used during the wax extracting processes, such as the extracting agent and packaging materials. In 2021 for the purchase and repair of extraction equipment, we investedMXP$ 885,759 (USD$ 43,633). For the extraction agent, the investment was MXP$ 2,768,563 (USD$ 136,382).35Communities producing with Citric Acid25%Percentage of Candelilla wax produced with Citric Acid67Candelilleros with IMSS$2.6 MDP(USD$ 127,459)Forestry studies investment$3.7 MDP(USD$ 180,015) Infrastructure and extraction agent investmentUse of Citric AcidIn 2016, our R&D team introduced Citric Acid as an extracting agent, reducing the risks associated with the use of Sulfuric Acid. We currently have 35 communities in which the entire wax production is made using Citric Acid, representing 25% of the total purchases of Candelilla wax.Training of ProducersOur staff provide training to Candelilleros in product quality and sustainable forest use.Social SecurityMulticeras is the only candelilla wax provider that helps Candelilleros access government social security benefits, such as medical services, financial protection in the case of accidents and injuries, and pensions. In 2021 we assisted 67 Candelilleros access social security benefits, with an investment of MXP$ 913,756 (USD$ 45,013).2020202133 35Communities producing with Citric AcidPercentage of Candelilla wax produced with Citric Acid30%More investment compared to 20204 TimesMore investment compared to 2020Through innovation and the development of products from Candelilla wax, Multiceras will continue investing in these communities, supporting the use of forest resources in a sustainable way, and promoting economic growth in the region.20%25%IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

35Aztec Plumbing is dedicated to the manufacture of sealants and lubricants for the plumbing industry, as well as the commercialization of products within the faucets, pastes and oils segments. Aztec Plumbing is one of the companies of Corzen Group and has a strong presence in the markets abroad. Multiceras, also in the corporate group, supplies the wax blend that the company uses in one of its main products. The two production plants are located in García, Nuevo León, Mexico.To supply reliable, private-label products that generate prestige for our customers.To be a global competitor and a contributor to the success of our customers, employees, suppliers, and community.The company comprises an interdisciplinary team that promotes innovation and creativity, aligned with a sustainability model based on ethics, human rights, and respect for the environment. IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix MissionVision

ProductsGRI 102-2We have introduced several new products for the plumbing industry to complement our main offering of toilet wax rings. Some were developed by our research staff with our own technology, including our patented Plumbers Putty. Other products are sourced from carefully selected suppliers. Our portfolio of products offers:Cutting OilLeak DetectorPlumbers Putty PVC cementsSealants and screws for toilet installationTeflon pastePrivate label opportunitiesOutstanding customer serviceExcellent performanceIn 2021 we launched high-quality sink faucets under the Grifen brand to the Mexican market. 36IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

37We periodically seek continuous improvement through Social Responsibility audits requested by our clients. In 2021 we satisfactorily met the requirements of the RESA (Retail Ethical Sourcing Assessment) standard, which is valid for three years. Aztec Plumbing meets and follows the Customs-Trade Partnership Against Terrorism (C-TPAT) Standards. In order to guarantee the integrity of customers’ products, we have implemented specific security procedures aligned throughout our supply chain. In 2020 we successfully completed a remote SCAN (Supplier Compliance Audit Network) audit.MarketsAudits Our supply chain varies depending on the type of product. For our best-selling product, the toilet wax ring, the wax raw materials are supplied by Multiceras, which is located next to our plant. Supply Chain GRI 102-9This has allowed us to improve the wax blend formulations it provides us and ensure the quality and reliability of the product. Local Mexican companies produce other wax ring raw materials. Mexican or foreign companies manufacture some elements for other products, and others are produced in our plant. GRI 102-6 IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

38Sustainability Strategy GRI 102-41, 103-1, 103-2, 103-3At Aztec Plumbing, we manufacture products for the plumbing industry with each client's brand. We are aware of the environmental impact of creating a product that reaches the final consumer, which is why we focus our sustainability strategy on three lines:We promote a corporate culture attached to ethics, respect for human rights, and social responsibility. In addition, we encourage the development of our employees and their health and safety. CultureSustainable PracticesInnovationTo complement our sustainability strategy in 2021, we updated our materiality analysis. This is a process used to identify companies' economic, environmental, and social impacts and their value chains. Subsequently, we had to consult our stakeholders to determine the priority of the issues identified. To achieve this, we invited customers, suppliers, employees, shareholders, and the management team to answer the questionnaire.We continually integrate these principles into company policies and initiatives and analyze and monitor our progress. Through our innovation team, we seek to develop products that reduce environmental impacts.Within our facilities, we establish projects to responsibly reduce our use of natural resources.IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

To maximize the company's economic value sustainably, to ensure its long-term survival and leadership position in the market, and to comply with the law and ethical considerations.Annual shareholders meetings. Quarterly board meetings. Executive meetings.StakeholdersShareholdersCustomersEmployeesCommunityGovernmentSuppliersExpectationsActions TakenCommunication Channels and FrequencyTo provide customers with trustworthy and personalized solutions that help them compete in their markets.To become involved in the communities where we operate.To ensure all operations comply with the law.To establish long-term relationships with strategic partners in our value chain.To guarantee a good working environment, to support initiatives that promote personal and professional development, to ensure employee safety, to promote diversity, and to provide equal opportunities for men and women.Materiality consultation. Establishment and execution of the business strategy. Monthly financial statements.Materiality consultation. Customer audits on quality, safety, environment, management, and social responsibility. Following norms and achieving certifications.Materiality consultation. Bonus and awards program. Code of Conduct. Training programs. Scholarship program.Fulfilling municipal, state, and federal safety and environmental requirements. Collaboration with local authorities in areas where we operate or have influence.Materiality consultation. Communication with key suppliers to ensure quality of products and services. Volunteering and donation. Getting involved with civic organizations and cooperation with neighboring companies on shared issues.Biannual customer satisfaction survey. Visits to customer premises. Participation in national and international events.Annual working environment questionnaire. Annual evaluations of performance and values. Open channel for complaints.Monitoring progress of annual work plan.Monthly supplier evaluations. Supplier visits.Communication with municipal, state, and federal government. Consultation with StakeholdersGRI 102-21, 102-40, 102-42, 102-43, 102-4439IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

40Volkom is the first Strategic Business Unit of Corzen Group; it is focused on technology and tailor-made solution development for industrial markets, such as construction, automotive, paper and metal mechanic. It has an extensive portfolio of emulsions for different usages, such as barriers against moisture.To offer customized solutions and integrated technology that promote the competitive and sustainable development of our clients.To be a global competitor and a contributor to the success of our customers, employees, suppliers, and community.MissionVisionIndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix Construction - Pulp and Paper Manufacturing - Customized Chemical SolutionsIndustries

41PresenceGRI 102-3, 102-4ProductsGRI 102-2The products that Volkom offers are developed to respond to the specific needs of its customers, such as a solution for protection against humidity in the manufacture of wood panels.Volkom products are currently manufactured at the Multiceras facility, located in Garcia, Nuevo Leon, Mexico.AnticorrosivesAntifoamsAsphalt Curing AdditivesBinders Board EmulsionsConcrete Curing Emulsions CoolantsCutting LubricantsDrywall EmulsionsPolyethylene Waxes Synthetic WaxesThermal Treatments Wax CoatingsWax LubricantsIndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

42Markets ApplicationsAt Volkom, we serve different industries with innovative solutions tailored to the needs of each segment. The focus is mainly on panel and concrete manufacturers within the construction industry. For the pulp and paper industry, personalized formulas are offered for paper sizing, pulp production, and products applicable to box coatings, such as glues or antifoams. For the manufacturing industry, custom engineering is developed for lubricants and coatings to manufacturing metals, glass, and electrical components, from coolants to anticorrosives.102-6 IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

GRI Content IndexAppendix 43IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix

About This Report Through this Sustainability Report, we present results, activities, and commitments of the Corzen Group, which includes the companies Multiceras, S.A. de C.V. and Aztec Plumbing, S.A. de C.V., from January 2021 to December 2021. This report is published annually in April, this being the ninth edition approved by the Executive Board.The Sustainability department is responsible for collecting and preparing the information that has been presented in this report. This report was made following GRI 4 guidelines, and we will not request verification of it. As Multiceras and Aztec Plumbing are private companies, this Sustainability Report does not include financial statements. Our Management and Finance departments are responsible for keeping all information documented and archived, as well as following all legal requirements.This report has been prepared to conform with the GRI: Option Essential Standards.ContactGRI 102-3, 102-53Please contact us with any suggestions or to request further information:Mireya MarmolejoSustainability Managermireya.marmolejo@multiceras.comRectángulos No. 100 Colonia Arco Vial. CP: 66023García, Nuevo León, México44Multicerashttps://www.unglobalcompact.org/what-is-gc/participants/17892-Multiceras-S-A-de-C-V- Aztec Plumbinghttp://www.unglobalcompact.org/participant/18081-Aztec-Plumbing-S-A-de-C-V-Past reports are published under the companies’ profiles on the Global Compact website: GRI 102-32, 102-49, 102-50, 102-51, 102-52, 102-54IndexCorporate ProfileSocial Performance Environment MulticerasAztec PlumbingVolkom Appendix