OUR ESG STRATEGY

Our ESG (Environmental, Social and Governance) strategy provides us with the guidelines we need to govern our actions in order to ensure that our operations are more sustainable in the areas of society, the environment and corporate governance. This allows us to achieve our goals as a company at the same time as having a positive impact on society and the environment.

Corporate Governance

Our corporate governance is underpinned by standards, principles and procedures that allow us to achieve our goals based on our values and philosophy.

BOARD OF DIRECTORS AND SENIOR MANAGEMENT

The experience of the members of our Board of Directors and Senior Management team is clearly reflected in our strategy and decision-making process, allowing us to achieve our goals and safeguard the interests of our shareholders and all our stakeholders.

The Board of Directors is comprised of twelve board members, four of whom are independent.

The members of the Board are appointed by the General Shareholders’ Meeting.

BOARD OF DIRECTORS’ COMMITTEES

360^o CYBERSECURITY STRATEGY

Cybersecurity is a fundamental matter in the digital era. The increase in cybercrimes and incidents has become a major problem that must be addressed through a strategy and a team that specializes in this area. This is why, at Megacable, we have policies, procedures, certifications and a Cybersecurity Department that is tasked with developing a security framework to safeguard information and protect critical infrastructure, under the premise of identifying security standards and guidelines that can be applied in every area within the Organization.

The following are some of the actions that we have taken that are aligned with the industry-accepted standards that govern our operations:

Incident Response Plan

We also have an incident response plan that allows us to monitor and detect problems, contain them, and resolve them without affecting our operations. Based on a protocol and working basis, we are capable of resolving any IT security incident that may happen within the Company.

Response Plan

This plan encompasses 6 general stages that describe how to act in the event of a security incident:

Payments via Internet

In order to offer security to all our customers who make payments via our website, we have implemented strict security measures that include PCI DSS certification (Payment Card Industry Security Standards Council), focusing on networks, systems and other equipment that can process transactions made using bank cards (credit and debit).

The purpose of PCI-DSS and PA-DSS standards is to demonstrate to credit and debit card processors around the world (such as Visa, Discover and AMEX, among others) that the data is being processed correctly and securely, in addition to stating that their commercial and IT operations can be audited.

Employee Training

We constantly offer training opportunities to our employees in order to respond to any IT security incident that may arise.

Based on frameworks such as:

SOCIAL

EMPLOYEES

In keeping with our values, we strive to have a positive impact on the quality of life of our employees and their families, which is why we work hard to offer them optimal working conditions and attractive benefits.

The talent and professionalism of our team is the driving force behind our company as it has enabled us to position ourselves as a leader within the sector and meet the expectations of our customers.

The work we do is based on four guiding principles:

Training

We encourage our employees to continue working on their professional and personal development, which is why we offer a wide-ranging training program that not only bolsters new professional skills but also provides personal training opportunities.

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Recruitment

Despite the challenging situations we faced during the year, we saw significant increases in recruitment throughout the different divisions within our Company, especially among operations and technical staff.

In order to attract the best possible talent to our Company, we rely on two strategies: the first encompasses external publications including recruitment sites, social networks, print media outlets and educational institutions; the second, which represents a higher percentage of our talent attraction efforts, is our Referral Program, which offers employees the opportunity to refer potential candidates to fill vacancies.

We also encourage internal promotion processes that offer employees access to promotions through a selection process and based on their professional achievements.

It is noteworthy that, during 2020, for every new employee that joined the Company, we complied with the corresponding health protocols to help combat the global pandemic.

Furthermore, we offer induction courses and a program called Shoulder to Shoulder, which teams up new employees with an experienced employee to help boost their development within the training process.

Inclusion

The talent of our employees is the driving force behind Megacable’s success, which is why we promote cultural inclusion at both a corporate and a regional level. Through our Code of Ethics and our Non-discrimination Policy, we drive inclusion in every single one of our actions.

Our doors are always open to everyone who wants to work and grow alongside us. For example, we have a system that allows us to analyze the perfect activities for employees who have a disability.

We promote the leadership of women in order to increase their participation in key posts, which is why we have created have the Megacable Women Workshop, through which we focus on issues such as transformational leadership and emotional intelligence. Furthermore, to mark women’s month, we offered a talk entitled VIOLENCE Can Affect Everyone in some areas of the Company.

As part of our respect and support for inclusion and the prevention of violence against women, on Monday March 9th we supported our female employees who decided not to come to work as part of the national movement entitled #UnDíaSinMujeres (#OneDayWithoutWomen).

Reporting Channel

We have a reporting channel that our employees can use to anonymously report any incidences of assault, theft, late payments, mistreatment or any other issue. These reports are received by the CEO, Deputy CEO and the Human Resource Director, who follow up on any situations reported.

Performance Evaluation

In order to improve the way in which we work, we have implemented a performance evaluation process that is based on a skills model and allows us to identify our employees’ growth and areas of opportunity. This system includes 90° and 360° evaluations, meaning that employees are evaluated by their direct leaders, peers and subordinates. This offers us a more wide-ranging overview of their performance and goal achievement based on a number of different levels.

To celebrate the hard work and loyalty of our employees, we recognize their outstanding performance and their years of service, enabling us to highlight the valuable collaboration of our team members.

Furthermore, we remain in constant communication with our employees through meetings, videos and corporate messages, among others.

Health and Safety

Given the public health crisis the world is facing as a result of the COVID-19 pandemic, we implemented a prevention campaign to offer all our employees the informative and operational tools that they need to avoid the risk of infection, including memos, talks and personal protection equipment.

From March, we implemented a remote working model that enabled us to continue operating efficiently.

For employees who had to access our facilities, we implemented a prevention protocol that included the use of face masks, sanitizing mats, gel and disinfection arches, in addition to opportunely registering and following up on any employee who presented any suspected symptoms. We also used PCR tests for employees presenting symptoms, testing more than 13,000 people during 2020 and providing medical support in the event any of these results came back positive for COVID-19.

The health and safety of our customers is one of our major priorities, which is why we implemented a strict control protocol in order to safeguard our employees, our customers and their families when carrying out repairs or installations at their homes.

Our technicians must use face masks, face shields, gloves and gel when they enter a customer’s home. Additionally, and for the protection of our employees, we request that the client sign a letter stating that nobody in their home has been infected with COVID-19.

As a result of these efforts, we can state that this year our health and safety efforts mostly focused on protecting our employees and customers in light of the COVID-19 public health crisis, leading to the suspension of other programs that we will resume in the future in order to continue offering comprehensive health and safety programs to our employees.

We promote an environment of collaboration and respect, and we encourage actions that offer our employees optimum working conditions and attractive benefits.

In order to promote a work-life balance among our employees, we modified our working hours - our corporate employees now finish their working day half an hour early, and we also reduced the length of the working day on Fridays.

As part of the benefits that we offer, we have forged 158 partnerships that help improve the quality of life of our employees, 13 more than there were in 2019. These include discounts for education services, healthcare, accommodation, restaurants, sports, transport and entertainment, among others.

We also rolled out vaccination and awareness campaigns on a national scale to help benefit our employees, including flu vaccinations and information about how to prevent breast cancer.

At Megacable, we also focus on psychological and social risk factors that affect our employees, which is why operate under standards that promote an optimum working environment for all our employees. To achieve this, we are in the process of becoming NOM-35 certified.

As a result of the challenges stemming from the COVID-19 pandemic, our priority is and will continue to be offering people the services they need to continue their activities remotely. This is why we rolled out the At Megacable, We Are With You campaign, through which we offer connectivity to more than 250 social welfare institutions, including children’s homes, shelters and retirement homes located in 74 cities around the country. Additionally, we provide telecommunications service to institutions like the Red Cross and volunteer fire brigades in our communities.

As an act of solidarity with medical, nursing and support staff involved in treating patients with COVID-19, we also donated 2,500 personal protection equipment kits that were distributed to 20 regional public hospitals located in 18 cities around the country, including in Mexico City, León, Veracruz, Morelia, Guadalajara, Colima, Tepic, Hermosillo, Puebla and Tuxtla Gutiérrez, among others.

Each kit included KN95 face masks, surgical caps, disposable coveralls, protective glasses, and gloves, helping protect all our healthcare workers.

We also supported Small and Medium-sized Enterprises facing problems as a result of the pandemic by launching our Reactivate with Megacable (Reactívate con Megacable) campaign, offered internet, fixed telephony and mobile telephony packages at very accessible prices, with special discounts and in some cases debt cancellation.

As part of our efforts to involve our suppliers in our commitment to the community, we have asked them to sign a contract in which they confirm that they do not use any materials that are the result of slavery or drug trafficking, in keeping with our principles and values.

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ENVIRONMENT

At Megacable, we are aware that the future of our planet depends greatly on what we do to protect it today, which is why we promote a culture that safeguards natural resources and promotes environmental conservation through a number of different initiatives:

• Life without Plastic: We have eliminated single use plastics, and we encourage our employees to use metal or polycarbonate containers that can be used on a daily basis.
• Sustainable Disposal of Batteries: We collect batteries and send them to a company specializing in hazardous waste in order to reduce the impact they have on the environment.

We implemented a paper recycling campaign in conjunction with the Te Lo Compro recycling company. We collect all the paper that can no longer be used, such as files that are no longer in use, folders, dividers, newspapers and flyers, among others. Our employees are involved in this campaign, depositing paper waste into the designated containers found within each area.

For every container collected by Te Lo Compro, we receive rewards such as vouchers for pizza, coffee or movie tickets that are given to employees at our corporate offices through prize draws and competitions.

The automation of our processes has also enabled us to reduce our environmental impact by decreasing travel. We have also implemented a program to replace four-wheeled vehicles with two-wheeled alternatives in order to reduce the pollution generated by our operations.

Furthermore, we have modernized our air-conditioning and lighting systems to decrease the amount of electricity we use; we have promoted a paperless campaign among our employees; we recycle waste at our offices; and we ensure that all waste is correctly disposed of.