WE ARE ALL PART OF THE SOLUTION TO IMPROVE AIR QUALITY

January - February 2020

As part of the dissemination and awareness-raising actions awareness of environmental issues in the metropolitan area of environmental issues in the Monterrey metropolitan area, Transforma Monterrey, Transforma spoke with representatives of the CAINTRA industrial community. of the CAINTRA industrial community.

The ideas and reflections they share with us are an excellent sample to learn more about the to learn more about the industry's role industry as an agent of change for air quality. change for air quality.

TERNIUM

How do they propose to improve in order to favorably influence air quality? air quality?

As part of the integral investment plan for environmental improvements, Ternium inaugurated this year the inaugurated this year the Smoke and Dust Aspiration System at its Puebla plant, with an investment of US$28.5 million. plant in Puebla, with an investment of US$28.5 million. This investment is in addition to the This investment is in addition to the systems already installed in all Ternium plants with a steel plant in Mexico, including the Puebla plant. in Mexico, including the Guerrero plant in San Nicolás, Nuevo León, where this system has been operating since 2016, where this system has been operating since 2016.

Ternium has an active environmental agenda. Through solid sustainable initiatives, we continue to grow together with our communities, thus reaffirming our long-term vision in the country. reaffirms our long-term vision in the country.

Since 2013, the company has invested US$200 million in the following environmental improvement actions:

- Fume and dust extraction systems to operate with higher standards than the current standards in all of Ternium's steel mills.
- Implementation of world leading technology for CO2 capture and monitoring. Ternium is the only company in Nuevo León that captures and reuses this compound that captures and reuses this compound, and, in general, emits less CO2 to the environment in steel production than the World Steel Association's reference standard. the World Steel Association.
- Only natural gas is used as fuel, with systems that guarantee its optimal consumption, and its emission is monitored to ensure better use. consumption, and its emission is monitored to ensure better use.

We know that steel is essential for a sustainable future, so environmental protection is a core value for Ternium. protection of the environment is a primary value for Ternium. We adopt the strictest industry standards, invest in new technologies, and constantly improve our production system. We work day by day to minimize the impact of our operations and maximize the of our operations and maximize resource efficiency. efficiency in the use of resources. We are 100% efficient in our use of materials and our production process reduces waste and waste and prioritizes recycling.

In addition, Ternium unveiled its new projects to new projects to achieve improvements in environmental quality, such as dust capture systems and the planning of a dome for bulk materials at the Guerrero plant in Nuevo Leon. dome for bulk materials at the Guerrero plant in Nuevo Leon. Leon. The latter project represents an investment of The latter project represents an investment of US$28.5 million in its first stage and includes the construction of storage silos for bulk materials in the Guerrero plant in Nuevo León. construction of materials storage silos, improvements to the briquetting system the briquetting system, enclosed conveyor belts for material handling, and a dust aspiration and particle monitoring system. monitoring system.

AS PART OF THE INVESTMENT INVESTMENT PLAN PLAN ENVIRONMENTAL ENVIRONMENTAL IMPROVEMENTS, TERNIUM INAUGURATED THIS YEAR ASPIRATION ASPIRATION SYSTEM FUME AND DUST ASPIRATION SYSTEM AT ITS PUEBLA PUEBLA.

HEINEKEN

What are the key sustainability indicators that reflect your company's air quality actions? your company's air quality actions?

"At Heineken Mexico we have set a goal of using 43% of clean energy in our processes by 2020. of clean energy in our production processes production processes. Today we use biogas, as well as wind and hydroelectric power, and we are working to achieve two-thirds of our energy two-thirds of our energy from renewable sources. from renewable sources. We plan to reduce greenhouse gas emissions by 22% by 2030, thereby contributing to the reduction of 5% of greenhouse gas emissions by 2030. contributing to a 5% reduction in greenhouse gas emissions in 2030. of greenhouse gas emissions in the industrial sector," said Jorge Castillo, environmental specialist at Jorge Castillo, Heineken's environmental and sustainability specialist at Heineken.

At the close of 2018, our CO2 emissions decreased 10% compared to 2016, in addition, our product distribution routes made more efficient routing, which reduced emissions by 12.5%. emissions by 12.5%. In addition, more than 9% of our electricity consumption comes from renewable sources. We are We are confident that all of these indicators will show substantial improvements in 2019. 2019. We will share this update in early 2020.

AT HEINEKEN MEXICO HAS ESTABLISHED GOAL, BY 2020, TO USE 43% OF CLEAN ENERGY IN PRODUCTIVE PROCESSES.

JOSÉ DANIEL COSÍO
North Institutional Relations, Heineken Mexico

VITRO

What are the key sustainability indicators that reflect your company's air quality actions? your company's air quality actions?

The company monitors the following indicators, which help to see the trend in emissions, always seeking to comply with the maximum permissible limits established by the nom. Some are monitored on a monthly or monthly or quarterly, and their annual consolidated annual. In the case of glass melting furnaces, In the case of glass melting furnaces, the Cullet used indicator is implemented (the glass that is (the glass that is recycled in the furnace and allows emissions to decrease considerably). emissions are considerably reduced). It can go up to 35% when the product specification allows it.

In addition, a greenhouse gas (gHg) registry is kept, which reports progress in energy consumption reduction plans. (gHg), which reports progress in energy consumption reduction plans. These are the indicators:

- NOx per ton of product
- PST per ton of product
- Total GHG
- GHG per ton of product

In addition, an indicator is kept to reflect the progress or follow-up of programs to reduce progress or follow-up of programs to reduce the consumption of fossil fuels and the development of projects focused on the use of clean energy the consumption of fossil fuels and the development of projects focused on the use of clean energies, to the extent possible. possible.

VITRO CARRIES A RECORD OF THE GREENHOUSE GASES EMITTED GREENHOUSE GASES EMITTED, WHICH REPORTS THE PROGRESS PROGRESS ON REDUCTION REDUCTION PLANS ENERGY CONSUMPTION CONSUMPTION.

LIC. LIZ HAYDEE VARGAS MARTÍNEZ
Legal Compliance at Vitro

TQ GROUP

How do they propose to improve to favorably influence air quality?

The goal is to clean the air of Nuevo León, it's that simple. I have more than 30 years interested in environmental issues and we are always looking for culprits. We have to call a truce and focus on finding viable, achievable, non-threatening solutions, in order to have the We need to take a break and focus on finding viable, achievable, non-threatening solutions, so that we can learn and incorporate best practices in our companies. Especially in SMEs, whose time is absorbed by work and daily problems. by work and by the daily problems of running their businesses. It is not easy to keep abreast of all the changes and rules to be complied with. simplify this task.

I believe that one way to have real achievements is to take one or two companies in each industry with the best environmental two companies in each industry with the best environmental practices, in this case air, and present them to the others as achievable goals. as achievable goals. This will help us to improve in a real and measurable way, and then move on to the next goal and thus help every company in every industry to be clear about what it should be and what it should and what should be applied in their company to be part of the great goal of all: to have clean air in Nuevo León.

In parallel, this same method can be applied to other environmental other environmental issues, depending on the business lines of the companies. companies. Virtuous circles must be encouraged instead of vicious circles. There are not enough laboratories, not enough experts, not enough auditors. experts and auditors. We must all collaborate in a proactive manner and create a chain reaction to achieve our goal of improving the environment for all. our goal of improving the environment for all.

FOR GROUP TQ, YOU MUST COLLABORATE IN A PROPOSITIVE PROPOSITIVELY AND MAKE A REACTION CHAINED IN ORDER TO ACHIEVE THE OBJECTIVE OF IMPROVING THE ENVIRONMENT FOR ALL.

LUIS HOMERO CAÑAMAR
General Manager, TQ Group