Sustainability Vision and Strategy - KUO

IMPULSE

Message from the Chairman of
the Board and Chief Executive Officer

How to read this report

HOW TO
READ THIS
REPORT

GRI 2-3, 2-4

We present our ninth Integrated Annual Report, in which we reaffirm our ongoing commitment to sustainable management and transparent disclosure, in line with the strategic priorities that shape our Sustainability Model.

In this document, we report on our progress in managing Environmental, Social and Corporate Governance impacts, as well as the most relevant financial and operational results for the year.
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The Report details our sustainability performance during 2025, with a focus on continuous improvement and innovation in our business practices, aimed at generating long-term value for both our shareholders and all our stakeholders.

The printed version of this Report serves as an executive summary of the most relevant messages, results, and milestones of the year. To access the extended and detailed version—including expanded content and technical appendices—we invite readers to visit our website, where the complete Report is available.

Below the title of each chapter, we indicate the applicable GRI Standards and SASB metrics, as appropriate.
The Download section of the digital version includes the appendices corresponding to the main sustainability indicators, the GRI and SASB content indexes and relevant financial information.

For any additional information related to the content of this Report, please visit our website at www.kuo.com.mx or direct further inquiries to:

Corporate Headquarters
Paseo de los Tamarindos 400-B, Piso 31,
Bosques de las Lomas, Mexico City, CDMX,
Zip Code 05120
ir@kuo.com.mx

Leadership and Responsible Management

Sustainability Vision and Strategy

Risk Management and Monitoring

People

Community

Environmental Management

Our 2024 Annual Report (2024 Integrated Annual Report) presented a more detailed description of the process for of the double materiality analysis, as well as the classification of the identified issues according to their relevance and impact.

Sustainability
ModeL

GRI 2-22, 2-23, 2-29, 3-1, 3-2

This initiative strengthened our Sustainability Model, which integrates cross-cutting priorities at the Group level and incorporates business-specific strategies. KUO’s Sustainability Model, reviewed and approved by the board of directors, is structured around five strategic pillars: Corporate Governance, Collaborator Development, Customer Satisfaction, Sustainable Processes and Products, and Operational Efficiency and Continuity, aligned with environmental, social, and governance dimensions. Each pillar has specific lines of action, aligned with the Sustainable Development Goals (SDG).

Through this model, we enhance transparency and discipline in the management of sustainability matters by identifying, assessing, and addressing in a timely manner the risks and opportunities that may impact business performance. This approach contributes to the Group’s resilience and competitiveness and enables us to adapt our strategy in a timely manner in response to regulatory, operational, and market developments.

The management of the model is based on a structured and ongoing dialogue with our key stakeholders—investors, collaborators, customers, suppliers, authorities, and society at large—allowing us to anticipate trends, align expectations, and strengthen strategic decision-making.

Strategic Implementation of the Sustainability Model

At KUO, we implement our Sustainability Model through cross-functional initiatives across the entire Group and specifications aligned with each strategic pillar, thereby ensuring a comprehensive and results-oriented approach.

These cross-functional initiatives reflect our commitment to the environment and the community, strengthen our culture of sustainability, and promote the active participation of our collaborators. Among these initiatives, we highlight that:

• We planted more than 5,000 trees, actively involving more than 1,200 volunteers.

• We organized the collection of approximately 20 tons of waste in coastal areas of Yucatán, Campeche, Quintana Roo, Veracruz, and Tamaulipas.

• We installed waste sorting stations and developed recycling training programs for children's communities.

• We encouraged the participation of more than 100 collaborators in planting approximately 60 species in educational gardens.

The following section describes the main initiatives by focus area, highlighting the most significant progress and their contribution to the Group’s sustainable performance.

We work with specialized teams that drive technological adoption, innovation, and product design, regularly evaluating initiatives based on clear criteria of scope, efficiency, and productivity.

In collaboration with Universidad Panamericana, we delivered the course “Innovation and Transformation in Business” and participated as speakers in various industry forums.

We strengthened the operations of the Pork Meat Business’s call center, which contributed to a 35% increase in home delivery sales in 2025.

Innovation in
the Value Chain

GRI 3-3

The innovation strategy is implemented across the entire Group, and it adapts to the specific characteristics of each business.

Through specialized teams and corporate project committees, we evaluate and prioritize initiatives based on clear criteria of impact, efficiency, cost reduction, and productivity improvement, enabling a disciplined allocation of resources and consistent execution.

During 2025, we made progress in adopting enabling technologies that strengthen our value chain, incorporating approaches such as Design Thinking, Industry 4.0, process digitization, additive manufacturing, artificial intelligence, and hyper-automation. These tools drove the optimization of production processes, increased operational flexibility, and improved product quality and traceability.

We also maintained an active focus on Sustainable Supply Chain management, fostering transparent and mutually beneficial relationships with suppliers and distributors, and incorporated sustainability commitments.

Likewise, we promote a culture of innovation as a shared value within the organization by strengthening internal capabilities, highlighting the following:

Procurement
Practices

GRI 204-1, 308-1, 414-1

At KUO, we manage procurement with a focus on efficiency, resilience, and responsibility, integrating quality, competitiveness, and sustainability criteria into the selection and management of suppliers.

As part of this approach, we measure the proportion of spending allocated to local suppliers, with the aim of strengthening operational stability, reducing supply risks, and improving logistics efficiency.

We are also making progress in integrating environmental criteria into the supply chain through the mandatory signing of an ESG Letter, available on our website, which serves as a mechanism for suppliers to commit to environmental standards. By 2025, more than 560 suppliers had signed this charter, thereby strengthening transparency, traceability, and preventive risk management.