Sustainable Processes and Products - KUO

We continuously perform a comprehensive evaluation of our product portfolio to analyze the potential impacts on consumer health and safety. As a result of this process, we announced that during this year we did not identify any material non-compliance related to quality or safety in any of them.

GRI - 13.10.4, 13.10.5, 13.11.1, 13.11.2
SASB FB-MP-160a.3, FB-MP-250a.1, FB-MP-250a.2, FB-MP-250a.3, FB-MP-260a.1, FB-MP-410a.3, FB-MP-430a.2

We maintain a firm commitment to quality and safety in food production, generating trust and satisfaction among our customers.

In our Pork Meat Business, we maintain a firm commitment to food quality and safety in all phases of production. Our Quality Policy fulfills the growing global demand for safe food, strictly complying with national and international regulations, from animal genetics to final distribution.

Our production facilities in Umán, Irapuato and Sahé are FSSC22000 certified, which specifies the requirements to ensure food safety standards. Additionally, our operations are backed by certifications such as Good Farming Practices (SENASICA), Federal Inspection Type (TIF) processing facilities and international Animal Welfare certifications. We rigorously apply the HACCP system in all our operational activities, and we adhere to the Global Food Safety Initiative (GFSI).

During 2024, we did not report any quality incidents in our products, which reflects the effectiveness of our food safety policies and procedures. This achievement is a testament to our commitment to excellence and dedication to maintaining high standards for each stage of production.

Animal Welfare
For the last two years we have held Cloverleaf Animal Welfare Certification, backed by external audits performed by internationally recognized experts. This program objectively validates our standards, thus strengthening the culture of animal welfare that we have promoted since the beginning of our operations.

Identification and management of products and ingredients related to nutritional and health concerns of consumers
Our commitment to transparency and food safety is reflected in the approval processes for product ingredients, additives and preservatives. In this way, we guarantee that the ingredients used in the process comply with current regulations and do not contain allergens. For marinated products, which are allergen-free, we make sure to inform consumers about the product's contents, with a detailed list of ingredients on the packaging, following the relevant regulations for the declaration of allergens and sensitizers.

We perform annual evaluations of all our ingredient suppliers, guaranteeing compliance with safety and quality standards, requesting their safety certifications and corresponding reports. If they do not have these certifications, a follow-up audit is performed to verify compliance.

To ensure the quality and safety of value-added products, we conduct analyses in accordance with Mexican standard NOM-051-SCFI/SSA1/2010, which includes the requirement for warning octagons. All ingredients used in our products are duly declared on the label, in compliance with current regulations. This approach guarantees that our consumers are fully informed about the products they consume, thus promoting a lasting relationship of trust with our brand.

SASB RT-CH-410b.1, RT-CH-410b.2, RT-CH-410c.1
SASB TR-AP-250a.1, TR-AP-440a.1

Synthetic Rubber
Our Quality, Safety and Environmental Policy reaffirms our commitment to sustainability, environmental protection and a safe working environment. We implement best operational practices and conduct regular internal and external audits to ensure compliance with the highest standards, continuously identifying opportunities for improvement.

This commitment materialized through the attainment of internationally relevant certifications in all our facilities and brands, including the EU REACH, UK REACH, Korean-REACH and TURKISH-REACH regulations. These certifications not only guarantee the superior quality of our products but also set out strict guidelines and establish limitations in the handling of hazardous substances, thus ensuring the protection of human health and the conservation of the environment.

Polymers
We recognize the importance of quality management, especially considering our presence in various markets, such as food packaging, electronics, medical and pharmaceutical products, all of which demand high standards of quality, safety and performance. To ensure effective management, we maintain a series of certifications in our facilities and brands, including ISO 9001:2015, USP, UL, RoHS and we also have BPI certification. These certifications validate our commitment to excellence and compliance with international regulations.

We have a strategy with specific procedures to manage chemicals appropriately and develop new alternatives. The equipment is designed for the specialized transportation and handling of components to protect our workforce. In addition, in the transformation process, we use advanced technological equipment to reduce the residual monomer content, ensuring that it is below the maximum levels permitted by current regulations.

Every year we conduct online studies of applicable environmental regulations, ensuring compliance with standards. We also implement surveillance and monitoring measures to protect the health of our workforce who work with chemicals, provide them with safe conditions and take preventive action when necessary. These practices demonstrate our dedication and commitment to safety and sustainability across all our operations.

¹ ISO 9001: It is an international standard that specifies the requirements for a quality management system (QMS). This certification focuses on continuous improvement, customer satisfaction, and operational efficiency. USP: Acronym for United States Pharmacopeia, it is an organization that sets standards for the quality, purity, potency, and consistency of medicines and dietary supplements in the United States. UL: Underwriters Laboratories is a global safety certification organization that tests and certifies products to ensure they meet certain safety and performance standards. RoHS: Restriction of Hazardous Substances Directive is a European Union directive that restricts the use of certain hazardous substances in electronic and electrical products to protect human health and the environment. BPI Certification: Refers to the certification granted by the Biodegradable Products Institute, which guarantees that a product is biodegradable and meets established standards for its decomposition under specific composting conditions.

Transmissions
To guarantee excellence, we have implemented a Quality Management System allowing us to maintain high standards in all our products. This system is based on a Comprehensive Policy supported by a Management Manual, detailed procedures and work instructions, as well as plans for continuous improvement and updates at all levels of the organization. This approach ensures that our processes are efficient, and costs are kept under control, without compromising product quality and safety.

Our comprehensive management policy ensures quality at every stage of the process, from design to final delivery, strengthening customer satisfaction and consolidating our position in the market.

Aftermarket
We recognize that our clients' perception of quality is key to maintaining our competitive advantage. For this reason, we comply with international standards, with strategic certifications such as ISO 9001:2015, ISO 17025:2017 and the environmental certification SAE J2975, which ensure integrity and excellence in our management, consolidating our position in the market.

Our proactive approach to quality has led us to implement key improvements: we strengthened controls in vulcanization, completely redesigned this process and incorporated new preventive measures in risk detection and management. These actions ensure operational safety and efficiency, reinforcing our constant commitment to product quality, customer satisfaction and sustainability.

Innovation and Technology

GRI 3-3

At KUO, innovation is fundamental to promoting sustainable development, which is why it is an essential pillar of our business strategy.

We integrate innovation as a crucial part of the corporation to guide the creation of value in our businesses, the various stakeholders and KUO. We have invested in different areas that are key to achieving this objective, such as alliances with technology partners and training in:
‍
- Design Thinking¹
- Industry 4.0²
- Additive Manufacturing (3D Printing)
- Artificial Intelligence
- Hyperautomation

We stay at the forefront by adapting technologies and creative design to products and with specialized work groups. These teams are essential to drive innovation and explore new opportunities. We regularly review progress in project committees at the corporate level and in each of our businesses, ensuring proper evaluation of initiatives proposed each year. We evaluate initiatives according to various criteria, including their scope, efficiency, cost reduction and productivity improvement, adapting to the specific objectives of each project.

Every year we deliver a course on “Innovation and Transformation in Business” as part of the DESC Chair at the Universidad Panamericana, thus maintaining that innovation is a shared value. We actively participate as speakers in various industry events and share our practices and perspectives on the use of technology in the business world.

These initiatives reflect our ongoing commitment to innovation, sustainability, excellence and cost reduction.

¹It is based on a deep understanding of the needs and desires of end users, through empathy, analysis and creativity.

²Industry 4.0 focuses on improving the efficiency, flexibility and personalization of industrial processes, as well as promoting innovation and collaboration between companies through the digitization and interconnection of devices and systems.