sustainability report 2013-2014 - al-mansour...
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Abbreviations and Acronyms
ADPF Alexandria for Dairy Products and Foods (Seclam)
AMIDC Al Mansour International Distribution Company (Imperial Tobacco)
AMTDC Al Mansour for Trading and Distribution Company
CFC Chlorofluorocarbons
CSR Corporate Social Responsibility
COGS Cost of Goods Sold
EGP Egyptian Pound
FMCGs Fast Moving Consumer Goods
GRI Global Reporting Initiative
HCID Hayat Company for Industrialization & Development
HR Human Resources
ITG Imperial Tobacco Group
KPI Key Performance Indicators
KZ Kheir Zaman
MCS Mansour Courier Service
MD Managing Director
MDC Mansour Distribution Company (Free Zone)
MDGsMET
Millennium Development Goals Mansour Electronics & Technologies
MFD Mansour Foundation for Development
MG Mansour Group
MHCFI Al Mansour Holding Company for Financial Investments
MID Mansour International Distribution
MM Metro Market
MMC Mansour Manufacturing Company (Free Zone)
MMID El Mansour and El Maghraby Investment and Development
MMTD Metro Market for Trading & Distribution
MTD Mansour for Trading & Distribution
PMI Philip Morris International
USD U.S. Dollars
UNGC United Nations Global Compact
Table of Contents1. Letter from the Chairman 52. About Al Mansour Holding Company for Financial Investments 7 Divisions of Mansour Group 7 Al Mansour Holding Company for Financial Investments (MHCFI) 7 Our Start 8 Diversification 8 MHCFI Companies and Brands 8 MHCFIOrganizationalStructure 93. Sustainability Challenges and Approach 13 Main Challenges 13 Management Approach 144. About this Report 17 Scope and Data 17 Materiality and Level Requirements 18 Our Team 185. Our Economic Performance 21 Equity 21 Profitability 22 Value Added 236. Governance and Approach 25 ComplianceCommittee 29 Our Mission and Values 30 Our Mission 30 Our Values 30 OrganizationofMHCFI 30 Control 31 AssociationsandLobbies 31 ExternalRelations 33 Announcing our Performance Results and Policies 33 GapAnalysisandCommitmentTable 337. Our People 35 RecruitingOurPeople 35 Benefits 36 EmploymentLevelandTurnover 36 Training and Career Advancement 40 Career Advancement 42 Safety 42 Gender 438. Our Community 47 HistoricalMilestonesonOurCommunity-RelatedWork 49 Other Projects 509. Our Environment and Product Responsibility 53 Environment 53 Waste 53 Energy 54 Emissions 54 Diesel 55 Water 55 Electricity 55 Productresponsibility 5710. GRI Disclosure Table 59
IthasbeenachallengingperiodfortheMansourGroupoverthepastfewyears.ThevolatileandunstableclimateinEgyptintheperiodfollowingthe25thofJanuaryRevolution,2011,anditsfollowuponthe30thofJune2013,hastestedthemettlenotonlyofEgypt’sbusinesscommunity,butalsotheverysocialfabricofthecountryitself.AsEgypthastransitionedthroughthisperiodtooneofgreaterstability,optimism,andnationalpride, so toohasMansourGroup.Wehavereaffirmedourcommitment tocontinuedgrowthatalllevels.Ifnothingelse,thepastfewyearshaveclearlydemonstratedthecriticalrelevanceofsustainability.
Asafamily-ownedbusiness,wecontinuetoadheretothesocial,ethicalandmoralstandardsinstitutedbyourfounderover60yearsago.Ourcorevaluesarebasedonintegrity,efficiency,profitability,innovation,sharedvalue,andlast,butdefinitelynotleast,continuedemployeedevelopment.ForMansourGroup,afundamentalcomponentofoursustainabilityisasharpfocusonourgreatestasset:ouremployees.Investinginouremployeesisnotjustaboutensuringhigherperformance,orbuildinganefficientworkforce.Itflowsfromoursenseofresponsibilitytoourstakeholders,andeverypersonworkingatMansourGroupisjustthat-avaluedandvitalstakeholder.Employeedevelopmentisonewayofempoweringourstaff,providingthemwithessentialbusinessandsocialskillsthattheycanleverageontheircareerjourneys.Moreover,MansourGrouphasinstitutedanumberofmechanismstoensureanethicalmanagementprocessthatrespectsstaffatall levels. Following internationalbestpractices,standardizedpoliciesandproceduresareinplace,ensuringfaircompensation,equitabletreatment,transparency,communication,recognitionofachievement,health,andsafetytoallthatworkatourofficesandfacilities.
Anothercornerstoneofoursustainabilityistherecognitionthatwearepartofawidercommunity,onewhichwebelieveourselvesdutyboundtosupport. MansourGroupisactivelyengagedinavarietyofsocial investmentinitiatives,whether implementedthrough our own Mansour Foundation, or by supporting other programs nationwide, through social investments, eventsponsorships,andsocialawarenesscampaigns.Here,wefocusmainlyonpovertyalleviation,education,healthcare,andcapacitybuilding. Intermsofenvironmentalsustainability,wecontinuetopushforwardswithefficientandethicalresourceutilization,responsiblewastemanagement, andenergy conservation.
AsMansourGroupcontinuestodiversify,grow,andexpandtoevermorechallengingmarkets-locally,regionally,andinternationally-ourdedicationtoourcorevaluesensuresthatweremainavisibleexampleofwhatresponsiblebusinessconductcanachieve.
WeatMansourGroupremaincommittedtotheimplementationofthe10principlesoftheGlobalCompact.
Youssef Mansour
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TheseedsoftheMansourGroupwereplantedbyLotfyMansourintheearly1950s,whenheestablishedtheMansour&SonsCottonTradingCompany. Hisentrepreneurialvisioncreateda legacythat iscarriedontothisdaybyhissons.Hiseldestson,IsmailMansour,succeededinsteeringthefamilybusinesstoitspositionasoneoftheleadingcompaniesintheregion.Ismailissucceededbyhisthreebrothers,whoeachhaveaninfluentialroleinmanagingthegroupandcontinuingitstraditionofbusinessinnovationanddiversification.
Divisions of Mansour Group
TheMansourGroup’scontinuinggrowthisaresultofitsabilitytoeffectivelyidentifynewbusinessopportunitiesbyexploringnewareasofdiversificationandforgingsuccessfuljointventureswithglobalbrands-somethingithasbeendoingsuccessfullysincethe1970’s.MansourGroupiscurrentlyakeyregionalplayerinvariousindustriesincludingmanufacturing,marketing,anddistribution.Employingover60,000people,MansourGroupcurrentlyachievesaturnoverofover4billionUSD.
Withaconstantfocusongeographicmarketdiversification,MansourGrouphasapresencein120countriesandoperatesventuresin 13 countries (Egypt, Iraq, Saudi Arabia, The United Arab Emirates, Libya, Chad, Nigeria, Ghana, Sierra Leone, Tanzania, Uganda, Kenya, Angola, and Russia)viaourheadquartersinCairo,andourmainofficeinLondon.Mostactivities,however,remaininEgypt.
MansourGroupiscomprisedofsixholdingcompanies,eachofwhichisresponsibleforanumberofquasi-independentcompanies.Theseholdingcompaniesare:MantracGroup;Manfoods;AlMansourAutomotive;AlMansourHoldingCompanyforFinancialInvestments(MHCFI);ManCapitalLLP(theMansourFamilyGlobalInvestmentArm);andElMansourandElMaghrabyInvestmentandDevelopment(MMID).Together,thesecompaniescoverthefollowingdiversearrayofeconomicsectors:automotive;banking;real estate; consumer goods; education; IT and telecom; equipment andmachinery;media and advertising; oil and gas; andtransportationandlogistics.
AlMansourHoldingCompanyforFinancialInvestments(MHCFI)isthefocusofthisreport.
Al Mansour Holding Company for Financial Investments (MHCFI)
Al Mansour Holding Company for Financial Investments (MHCFI) – one of Mansour Group’s six main holding companies - comprises eight large, semi-independent companies, most of which have have been created to manufacture and distribute local andinternationalbrands inEgypt.
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Our Start
Mansour Group (MG) initially created MHCFI in 1992to manage a license agreement with Philip MorrisInternational (PMI) to produce and distribute PMI’sbrandsinEgypt.ThepartnershipwithPMIlasted23yearsandendedin2014.Laterin2014,MHCFIpartneredwithImperial Tobacco, producing brands including Davidoff,Gauloises and P&S.
MHCFI was established as an autonomous company,semi-independent from Mansour Group. This allowsMHCFI the freedom and authority to rapidly respond to new business opportunities, including the ability toestablishnewcompanies,withouthavingtoreferbacktothe group. Nevertheless, despite its quasi-independentstatus, MHCFI is bound byMansour Group’s corporatepoliciesandstrategies,andiscommittedtothefulfilmentof the group’s strategic goals and Key Performance Indicators (KPIs).
Diversification
As mentioned above, MHCFI was initially created tomanage the PMI account. Over time, MHCFI began todiversify, extending its activities to the foodproductionsector with the purchase of the Seclam dairy productsprocessingfactory.Thiswasfollowedbytheestablishmentof the Hayat-Siwa bottling plant, producing bottleddrinking water.
MHCFI entered the food retail business with theestablishment of Metro Market for Trading andDistribution, successfully introducing the high-endsupermarket chain Metro Market (MM) in the 1990s.Leveraging the overwhelming success and continuedgrowthoftheMetrosupermarketchain,MHCFIopenedtheKheirZaman(KZ)supermarketchain,cateringtothelower income consumer market. Together, the Metrochain (catering to the A consumer segment) and the Kheir Zaman chain (catering to B and C consumer segments) constitutethelargestfoodretailchaininEgypt;covering12 governorates and serving more than 115,000customers daily.
MansourforTradingandDistributionCompany(AMTDC)isthecompanybehindSunshineTunaFishandShrimps,Mario Tuna, Labanita dairy products, Redbull EnergyDrinks,L’OréalcosmeticsandHenkelandHayatdrinkingwater.
MHCFI Companies and Brands
MHCFIiscomprisedofseveralcompaniesthatdistributeanextensive rangeof consumer goods toover 150,000outletsnationwide,makingitbyfarthelargestdistributiongroup in Egypt. The figure opposite outlines the eightcompaniesthatnowmakeupMHCFIaswellthebrandsthat theymanufactureand/ordistribute:
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M H C F I
A L M A N S O U R I N T E R N A T I O N A L
D I S T R I B U T I O N C O M P A N Y( A M I D C )
A L M A N S O U R F O R T R A D I N G & D I S T R I B U T I O N
( A M T D C )
A L E X A N D R I A F O R D A I R Y P R O D U C T S
A N D F O O D S( S E C L A M )
M A N S O U R C O U R I E R S E R V I C E S
M E T R O M A R K E T S T R A D I N G &
D I S T R I B U T I O N
H A Y A T C O M P A N Y F O R
I N D U S T R I A L I Z A T I O N A N D D E V E L O P M E N T
M A N S O U R M A N U F A C T U R I N G
C O M P A N Y( F R E E Z O N E )
M A N S O U R D I S T R I B U T I O N
C O M P A N Y( F R E E Z O N E )
I M P E R I A L T O B A C C O C O M P A N Y
S U N S H I N E T U N A
H E N K E L
R E D B U L L
A S M A K
B O N J O R N O
G I V R E X
L A B A N I T A
Y E S !
U P S
M E T R O M A R K E T SM I N I - M E T R O
K H E I R Z A M A N
H A Y A T
9
57+43NumberofClients/
Company Direct Coverage
60,600 Total AMTDCIndirect Coverage
80,000
AMTDC
NumberofClients/Company Direct Coverage
34,000 Total AMIDCIndirect Coverage
90,000
AMIDC
UPS
NumberofClients/Company Direct Coverage
720
TherevenuesofMHCFI’scompaniesexceeded9.5billionEGPin2014,with270millionEGPinprofit.MHFCIemploysover8,700people,whichamountstoroughly14.5%ofMansourGroup’stotalworkforce.ItiscurrentlyoneofEgypt’slargestprivatesectoremployers.ThefollowingfiguresareestimatesofthenumbersoftradersandkeyclientsservedbyMHCFIcompanies/activities:5+16+13+25+6+10FOOD
HAYAT
SECLAM
REDBULL
FROZEN
NON-FOOD
4,000
13,000
10,600
20,000
5,000
8,000
NumberofClients/Company Direct Coverage
HENKEL & L’OREAL
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MHCFI Organizational Structure
Cairo ishometotheheadquartersofalloftheMHCFIcompaniesexceptforHayatandSeclam,whicharelocatedinSiwaandAlexandria, respectively. However,MHCFI conducts operations all across Egypt.
MHCFImanagesitsoperationsontwodifferentlevels:someactivities,suchaslegalaffairs,corporateaffairs,externalrelations,humanresources,andsecurityandadministrationaredealtwithattheheadquarters;whileothersaredealtwithatacompanylevel.Thisallowsforsemi-independentorganizationalstructuresandflexiblesupportfunctionsthatmeeteachcompany’sspecificneeds.ThefigurebelowillustratesMHCFI’sorganizationalstructure.
MHCFI ORGANIZATIONAL STRUCTURE
S E C L A M G M
C H A I R M A N
A M T D CB U S I N E S S
D E V E L O P M E N TM A N A G E R
A M T D C M DM E T R O & K H E I RZ A M A N
M D
C O R P O R A T EL E G A L
D I R E C T O R
N A T I O N A L S A L E S& T R A D E M A R K E T -
I N G G MA M I D C
A M I D C M DH E A D O F H R
S U P P L YC H A I N
G M
C O R P O R A T EA U D I T I N GM A N A G E R
H E A D O F S E C U R I T Y
H E A D O F C O R P O R A T E
A F F A I R S
I N F O R M A T I O NT E C H N O L O G Y
G M
A M T D C M A R K E T I N GM A N A G E R
H A Y A T M D
F R E E Z O N EM D
G R O U P C E O
C O R P O R A T E T R E A S U R Y
&F I N A N C E G M
C O R P O R A T E A D M I N I S T R A T I O N& I N S U R A N C E G M
5+16+13+25+6+1011
EgypthasfacednumeroussocialandeconomicchallengesfollowingtheEgyptianrevolution.MHCFIwasamongmanybusinessesnegativelyaffectedbyeconomicinstability,yethasmanagedtocontinuegrowingastheeconomicsituationbegantostabilize.OneofthemostsignificantchallengesMHCFIfacedaftertherevolutionwastheoveralllackofsecurity,particularlyevidentwithincreasedrobberies.While robbery risks thendropped significantly in 2013 and2014,MHCFI facednew challenges, highlightedbelow. Main Challenges Overthepastfewyears,lackofsecurityhasbeenanissueofconcernnationwide.In2013,MHCFIwasstillstrugglingwiththerepercussionsoflowsecuritylevelsthatresultedinlossesforthecompany.However,MHCFImanagedtoimprovesecurityin2014,reportingasignificantdecrease inthenumberofrobberiesaffectingthebusiness. Predictably,newchallengeshaveemergedwhichweareplanningonfacingthisupcomingyear.
The Economic Challenge
Asof2015,Egyptcontinuestoexperiencemanyeconomicchallenges.Oneofthemostpersistentproblemsisthesteadyincreaseininflation.Thisincreasereflectsdirectlyonthepurchasingpoweroftheconsumer,puttingpressureonaffordablebrandsmoreappropriatetodecreasedconsumerpurchasingpower.Despitetheproblemsposedbyincreasinginflation,Egyptstilllackseffectivepoliciestocounterthisparticularthreat.
ThereisalsotheissueoflackofavailabilityofUSDintheformalcurrencymarkets.Thiskindofsituationforcesbusinesseslikeours,thatrequireUSDtopurchaseimportedgoods,todealwiththeinformalor‘black’market.Thisaffectsprofitabilityduetotheaddedcostofbuyingdollarsathigherratesthanthoseofficiallyquoted.
The Energy Challenge:
Electricityblackoutsandfuelshortagesrepresentachallengetoeverybusiness.InMHCFI’scase,theproblemofenergysupplyaffectsalltheproductionanddistributionphasesofourindustry.Theincreaseinthecostofdieselandgasolinenaturallyaffectsbothtransportationandmanufacturingcosts.Thisinturntranslatesintoanincreaseinthepricesofproducts,directlyimpactingthe consumer’s ability to purchase those products. Increases in the cost ofwater and electricity also affects our capacity tomanufacturewhilemaintainingaprofitmargin.
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Switching Partnerships:
OnJuly1st2014,AMIDCendedalong-termpartnershipwithPhilipMorrisInternational(PMI)andcementedanewpartnershipwithImperialTobaccoGroup(ITG).Thenewpartnershipbroughtinatobaccomanufacturingmarketshareof0.02%whichroseto0.6%marketsharebyendof2014.
This represents a challenge as thepartnershipwith PMI entailed a share amounting to 24%of the tobaccomarket. Tofill inthe revenue gap, MHCFI has been looking into adding new tobacco-related businesses and retaining the workforce.As a first step, we are looking at restructuring the tobacco business to ensure more effective business management. Management Approach Thevolatilesituation inEgyptover thepast fewyearsappears tohavesubsided,andthecountry isnowturning itsattentiontowardsstabilizingthenationaleconomy.Onestrategybeingactivelyimplementedbythecurrentleadershipsistostressamoreattractiveandsupportiveinvestmentclimate.Accordingly,MHCFIiscommittedtosupportingthegrowthofthenationaleconomythroughnewinvestmentsandexpansion.Wearehopefulthattheelectionofanewparliamentwillprovideclearpublicpoliciesregardingthetypesofinvestmentneededfortheeconomytostabilize.
Whilethecompanyisawarethatweremaininatransitionalperiod,whereuncertaintiesarepresent,MHCFIisequippedwithateamofexperiencedprofessionals implementingabusinessplandesignedtohelpusadapttothechallengesthat lieahead.ThisincludestheinstallationofanewriskassessmentmechanismthatwillenableMHCFItoforeseeupcomingrisksanddevelopeffectivestrategiestominimizethem.
Our main priority focus is to capitalize on MHCFI’s manpower. This is reflected by a management approach that seeks toaddressemployees’individualwell-being,seenasofequivalentimportancetothatofthecompany’sown.MHCFIiscommittedtomaintaining a solution-oriented approach to ourmanagement strategies, focusing on sustainablemanagement techniquesdesigned tohelpprotectouremployees -ourmainassetand thestakeholdersofMG. Intermsofenvironmentalsustainability,wearedeterminedtolookforsolutionstotheenergycrisisEgyptisfacing.Thiscomeshandinhandwiththedevelopmentofourownenergyconservationandmanagementplan,andtheadoptionofnewapproachestohowenergyisusedinallouractivities:inouroffices,outlets,andproductionfacilities.Thefollowingtablesummarizesoursustainabilityapproachbyperformancearea:
Performance Area Approach
Economic Sustainability Wearecurrentlyfocusedonmaximizingefficiency,reducingproductioncosts,andsecuringaffordableandsustainableenergyresources.
Social Sustainability Wecontinuetosupportanarrayofcivilsocietyorganizationsandsocialenterprisesacrossthecountry.OurMansourFoundationforDevelopment,haspioneeredalocally-drivenandboldapproachtosocialinvestmentsasitfocusesonkeysocialneedsincludingresearchandprogrammaticinterventionsintheareasofeducation,povertyalleviation,civicengagement,socialentrepreneurship,amongothers,inneighboringcommunitiesandbeyond.Weplanonmaintainingandexpandingoursocialinvestmentportfolio,inanefforttocontributetoEgypt’ssustainabledevelopment.
Human Capital Ouremployeesareoneofourprimarystakeholders;wecontinuetoinvestintheirgrowthanddevelopment;tofurthertheirgrowthandthegrowthofthecompany.Weplanonachievingamoregender-balancedmanagerialteambyinvestingintheleadershippotentialoffemalemiddlemanagement.
Human Rights Wecontinuetobecommittedtoazero-tolerancepolicytowardschildlaborandarecommittedtotheadoptionofaminimumwagepolicy.
Environmental Sustainability Theprogramfocusthisyearrevolvedaroundmitigatingtheenvironmentalimpactofouroperations.Thescalingofusageforbiodegradableplasticbagsandenergyreductionhavebeenthecenterfocusofthisyear’sprogram.
Product & Client Responsibility
Togetherwithouremployees,ourclientsareotherkeystakeholders.Wecontinuetofocusonclientsatisfactionandsafetythroughstringentsafetyandqualitymanagementsystems.Wealsomaintainanopencommunicationsystemwithourclientsthroughmultiplefeedbackmechanisms.
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MHCFIispleasedtopresentourfourthsustainabilityreport,coveringactivitiesovertheperiodfrom2013to2014.Thepurposeof this report is tokeepboth thepublicandour family shareholdersengaged in,and informedabout,ourachievementsanddevelopment.Wehavemanagedtoovercomehardshipsaffectingourbusinessoverthepastfewyears,andweplanonmovingforwardbybeingmindfulofourstakeholdersandbusinesspartners.ThisreportpresentstheseupdatesagainstthemeasuresandindicatorsoftheGlobalReportingInitiative(GRI-G3.1),levelB.
Wehavecompiledthereportathandwithadualpurposeinmind:toupdatethepublicaboutourperformance,andtousetheassessmentsandconclusionsofthereporttoimproveourperformanceinthefuture.Wecommittedourselvestoundertakethisreportingexerciseonabiennialbasisbackin2010,andhavesucceededinpublishingthreereportstodate.
Inthecurrentreport,wehavemadeeveryefforttoimproveouranalysesandexpandthescopeoftheinformationcovered,andwehopetocontinueimprovingourdisclosurelevelinthefuture. Scope and Data Thescopeofthisreport is limitedtoAlMansourHoldingCompanyforFinancial Investments(MHCFI), includingtheaggregateactivitiesoftheeightcompaniescomprisingMHCFI.Accordingly,theanalysispresentedherefocusesonthedirectcommunityandstakeholdersofMHCFI.ThereportthusaddressesneitherthepracticesoftherestofMansourGrouptowhichMHCFIbelongsnortheuniversesofMHCFI’ssuppliersandoutsourcedoperations,onwhichwehavelittleinfluenceatthemoment.Wehopetobeabletoextendourmonitoringanddisclosurecapacitytopartsoftheseuniversesbythenextreportingcycle.
Incompilingthedataandthecalculationsdisclosedbelow,wefollowedbasicinternationalmeasurementstandards.Theinformationthatweprovidehereisextractedfromourdatabases,bills,internalreports,andexternallyauditedstatements.SomeinformationhasalsobeenextractedthroughinterviewingrelevantpersonnelfromMHCFI.ThisallowsustocovermostoftheinformationthatreflectsonMHCFI’sindicators,aspertherequirementsofGRIlevelBdisclosurestandardsandthegeneralGRIreportingtradition.
InreportingonthejointperformanceoftheeightcompaniescomprisingMHCFI,wereliedmostlyonourconsolidatedstatementsandreports.Thecompilationof thesestatementsandreportsprogressedsmoothly,as thesecompaniesshareseveral centraldepartmentsandaregovernedbyacommontopmanagement(pleaseseethegovernancesectionformoreinformation).Inotherwords,MHCFI’scompaniesutilizethesametopmanagementreportingsystem.
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DespitethetremendouschallengesMHCFIfacedsincetherevolution,weareproudtosaythatwemanagednotonlytomaintainbutalsotoexpandoursustainabilityreportingefforts.Likemostcompanies,however,weareabletoreportonlypartiallyonsomeoftheGRIindicators.Wehavehighlightedtheseindicatorsinasummarydisclosuretableattheendofthisreport,andwehopetobeabletoreportonthemmoresystematicallybythenextreportin2016.Nevertheless,thisisunlikelytoposeproblemsforfutureperformancecomparisonsfortwomainreasons.First,thereportlabelsestimatesassuchandexplainsthebasisuponwhichwearrivedatthem.Second,wehavenotundergoneanymajorre-statementsofinformationprovidedinearlierreports.Theonlysignificantchangefrompreviousreportingperiods inthisregardliesperhaps inthefactthatwehaveexpandedourreportinginitiativebyprovidingmoredetailedinformationinseveralfieldsincludingEnergyconsumptionandGenderrepresentation.
Furthermore, although our sustainability case requires rather straightforward measurements, a number of environmentalindicatorsrequirecapacitieswehavenotyetacquired.Nevertheless,incomparisontopreviousreports,environmentaldatahasbeenexpanded.This includes thesteps taken tocounteranynegativeeffectsofMHCFIoperationson theenvironment.
Informationdisclosedonemployeemovementinsidethecompanyhasalsobeengreatlyexpandedcomparedtopreviousreports.Thehiringandresignationdisclosureismoredetailed.Likewise,informationonemployeetrainingconductedin2013/2014isalsomoredetailed.
Materiality and Level Requirements
WedesignedthisreporttosatisfyGRIlevelBdisclosurerequirements.ThisdisclosurelevelrequiresacompanytoreportonallGRIprofileindicatorsinadditiontoreportingfullyonaminimumofany20performanceindicators.Theseperformanceindicatorsincludeatleastonefromeachof:economic,environment,humanrights,labor,society,andproductresponsibilityindicators.
In addressing these requirements, we undertook a materiality exercise, as per the GRI’s methodology. The nature of thesustainabilitychallengesthatwearecurrentlyfacingandthevolatilebusinessenvironmentthatweliveinledustobelievethatsome performance areas are of paramount relevance to us, overshadowing others.
TheGRIsummarydisclosuretablesummarizestheresultsofourmaterialityexerciseattheendofthisreport.
Our Team
OurSustainabilityDepartmentcompiledthisreportwiththesupportofanexternalconsultingfirm.Todevelopthisyear’sreport,wedevelopedanumberofreportingmechanismstomonitorsomeofthebasicindicatorsonaregularbasis.Wehopethatbydoingsowewillbeabletoinstitutionalizeoursustainabilitymonitoringandimprovementeffortsatadeeperlevel.OurCorporateAffairsManager,SeifElBatanouni,ishappytoprovideanyadditionalinformationandelaborationsonrequest.
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g
MGremainsoneofthebiggestprivate investmentgroups intheregion,generatingrevenueupto4billionUSDannually.Thisleavesusinanexcellentfinancialsituation.Asmentionedinprevioussections,MHCFIismadeupofeightdifferentcompanies.Takenasawhole,theconsolidatedfinancialperformanceofthecompanyhasbeenexcellentsinceitsinception;aperformancethatthecompanyhasbeenabletomaintaindespiterevolutionaryinstabilities.
Ourcurrentconsolidatedoperationproceedswith5billionEGPofcurrentassetsand1.35billionEGPofnon-current (or longterm)assets.Theseassetsarebalanced,inpartby1.98billionEGPworthofequity.Ontheotherhand,in2014,ourconsolidatedrevenuesreached9.5billionEGP,andourprofitreached270millionEGP.
Equity
TheBalanceSheetprovidedbelowdemonstratesthevaluesofMHCFI’svariousassets,liabilities,andequitytypes,brokendownbyourdifferentbusinessunits(companies),asofDecember31,2014.
As of December 31st, 2014 EGP (Millions)
MHCFI Consolidated Balance Sheet MID MMTD MTDC MCS HCID MET MDC MMC
Total Current Assets 3864.90 268.30 579.85 34.91 29.88 3.63 168.97 60.57
(-)TotalCurrentLiabilities 1199.59 449.66 298.02 10.89 35.42 0.49 34.72 179.93
Working Capital 2665.31 -181.36 281.83 24.02 -5.55 3.15 134.25 -119.36
(+)TotalNon-CurrentAssets 133.81 852.88 162.68 9.88 42.55 6.55 8.76 136.44
Total Investment 2799.12 671.52 444.52 33.90 37.00 9.69 143.01 17.09
TotalNon-CurrentLiabilities 2000.15 158.73 10.00
Owners’Equity 798.97 512.78 434.52 33.90 37.00 9.69 143.01 17.09
Total Investment 2799.12 671.52 444.52 33.90 37.00 9.69 143.01 17.09
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As of December 31st, 2013 EGP (Millions)
MHCFI Consolidated Balance Sheet MID MMTD MTDC MCS HCID MET MDC MMC
Total Current Assets 2046.72 210.59 503.86 34.18 34.54 3.92 220.85 56.10
(-)TotalCurrentLiabilities 1565.92 543.19 268.06 14.85 38.30 0.66 101.27 146.42
Working Capital 480.81 -332.60 235.79 19.33 -3.76 3.26 119.57 -90.32
(+)TotalNon-CurrentAssets 135.78 884.84 160.67 9.58 34.20 7.00 8.89 109.06
Total Investment 616.59 552.24 396.46 28.90 30.44 10.26 128.46 18.75
TotalNon-CurrentLiabilities 7.80 49.22 10.00
Owners’Equity 608.79 503.02 386.46 28.90 30.44 10.26 128.46 18.75
Total Investment 616.59 552.24 396.46 28.90 30.44 10.26 128.46 18.75
Profitability
Increased stability in Egypt has had a positive impact on the economy. ForMHFCI, thismeans better financial performance,resultingingreaterprofitability,vis-à-visMHFCI’sperformanceduringEgypt’sinstabilityoverthepastcoupleofyears.Thisreportdedicatesadetailedchapter(above),tothechallengesthathaveemergedsincethepoliticalupheavalsofJanuary2011began.Forthepurposesofthissection,however,wewouldliketooutlineourmainfinancialresultsandhighlighttheimpactofthispoliticalandsocialclimateonthem.
MHCFIassetsarebalancedinpartby1.98billionEGPworthofequity.Ontheotherhand,ourconsolidatedrevenuesreached9.5billionEGPin2014,andourprofitreached270millionEGPforthesameyear.
Year 2014 EGP (Millions)
Income Statement MID MMTD MTDC MCS HCID MET MDC MMC
Net Sales 5,501.86 1,978.24 1,793.03 30.93 66.18 0.51 114.97 9.36
Gross Profit 235.89 12.08 393.50 11.27 26.02 (0.18) 11.35 2.97
Net Profit For Period 190.19 15.97 48.06 4.99 6.56 (0.56) 7.60 (2.68)
MHCFIwitnessedanimprovementintermsofequityin2014.MHCFI’srevenuesandprofitsfortheyear2011were6,649.3millionEGPand222.7millionEGP,respectively.Betweentheyearsof2011and2012,ourrevenuesincreasedby1,409.2millionEGP,andourprofitsby71.5millionEGP.
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MID MansourInternationalDistributionMainBrands:PhilipMorris(Marlboro,L&M,etc.)
MTDC MansourforTrading&DistributionCompanyMainBrands:SunshineTuna
ADPF AlexandriaforDairyProductsandFoods(Seclam) MainBrands:Labanita
MCS MansourCourierService MainBrands:U.P.S.
MMTD MetroMarketforTrading&Distribution MainBrands:MetroMarket,KheirZaman
HCID HayatforIndustrialization&Development MainBrands:Hayat
MET MansourElectronics&Technologies MainBrands:Bang&Olufsen,Roamworks
MMC MansourManufacturingCompany (FreeZone)
MDC MansourDistributionCompany (FreeZone)
KEY
MansourInternationalDistribution(MID)accountedforthebulkofoursalesandprofit.OtherMHCFIcompaniesexperiencedmixedperformance.Whilesomecompaniesdemonstratedatrendofhighsalesandprofitability,othercompaniesexperiencedadropinsales,andbyextensionprofitability.
Thetablebelowillustratesourconsolidatedincomestatementfortheyear2013,brokendownbybusinessunit.
Year 2013 EGP (Millions)
Income Statement MID MMTD MTDC MCS HCID MET MDC MMC
Net Sales 6,478.46 1,877.33 1,258.84 28.55 90.70 0.47 900.69 2.26
Gross Profit 950.90 95.48 280.86 9.15 37.80 (0.15) 125.71 (0.16)
Net Profit For Period 438.19 73.67 21.23 4.24 15.33 (0.74) 121.29 (3.90)
Astheabovetableshows,ourcompaniespaidabout119.68millionEGPinincometaxesintheyear2014.Wearemoreproudofthesepaymentsthananyotherpaymentswepreviouslymade.TheEgyptiangovernmentissufferingfromanimmensedeficitproblem,andwearehappytohavecontributedtonarrowingitdownbysuchanamount.
Value Added
MHCFIanalyzesthevalue-addedcomponentsofitsoperationsalongtwodifferentdimensions.First,wedivideourcommoditiesinto(1)merchandiseandservicesthatexperiencesomemanufacturingand/orservicestransformation,and(2)merchandiseandservicesthataddonlyretailvalue.WecanthenclassifyourCostofGoodsSold(COGS)accordingtothesetwocategories.ThetablebelowsummarizesourCOGSclassificationbybusinessunitintovalue-addedandretail-basedfortheyear2014.
Year 2014 EGP (Millions)
COGS Classification MID MMTD MTDC MCS HCID MET MDC
Value added COGS 5,266 - 245 - - - -
Retail based COGS - 1,966 1,155 20 40 0.6 104
Total 5,266 1,966 1,400 20 40 0.6 104
Thesecondvalue-addeddimensionthatwealsotrackisourabilitytoaddvaluetoourproductioncapacity.Wegenerallyreducethistypetoourcapitalinvestmentsinagiventime-frame.Thefollowingtablescompareourcapitalinvestmentsintheyear2014withtheirequivalentintheyear2013.
Capital Investments EGP (Millions)
MID MMTD MTDC MCS
2014 2013 2014 2013 2014 2013 2014 2013
17.35 10.05 146.23 48.44 27.72 48.73 1.11 0.75
Capital Investments EGP (Millions)
HCID MET MDC
2014 2013 2014 2013 2014 2013
13.68 3.53 0.00 0.00 0.39 0.34
Ourtotalcapital investments in2014and2013were206.5millionEGPand112millionEGP,respectively.Whiletheeconomicdownturn has seenmany companies considering exiting from Egypt,we continue to pride ourselves on our commitment toinvesting in our economy.
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MansourGroupisaprivatefamilybusiness;anditssharesarenotlistedinthestockexchange.Assuch,itisnotobligatedtoanyminorityshareholders.However,MansourGroupisengagedinanumberofjointventures,andthereforeneedstoaddresstheinterestsofitspartners.
AlthoughtheseventuresdonotnecessarilyaffectMHCFI,theMansourGroupimplementsasystemofformingaBoardofDirectorstogoverneachofitsdifferentdivisionsandthecompaniesthatcomprisetheminsuchawaythatagivenboardalwayscontainsindependent members. The philosophy adopted is that independent board members bring a wider perspective and variedviewpointsintothegovernanceofthegroupasawhole,andthisincludesMHCFI.Moreover,MansourGrouphasstandardizedasinglemanagementapproachacrossallofitscompanies.Thus,whiletheapproachlistedbelowgovernsMansourGroupasawhole,itgovernsMHCFIbyextension.MansourGroup’sBoardMembersandManagersarelistedbelow.
Company Board Members and Managers
Metro Market for Trading and DistributionName Position
AtefAboShady Chairman and Managing Director
Youssef Mansour ManagingDirectorforFinancialAffairs
Yasseen Mansour BoardMember
MostafaAbboud BoardMember
Mohamed El Amin Ismail Mansour BoardMember
MahmoudLotfyIsmailMansour BoardMember
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Mansour International DistributionName Position
AtefAboShady Chairman and Managing Director
Youssef Mansour ManagingDirectorforFinancialAffairs
Mohamed Mansour BoardMember
MostafaAbboud BoardMember
Mohamed El Amin Ismail Mansour BoardMember
MahmoudLotfyIsmailMansour BoardMember
Mansour Trading and DistributionName Position
AtefAboShady Chairman
Youssef Mansour ManagingDirectorofFinancialAffairs
Mohamed Mansour BoardMember
Yasseen Mansour BoardMember
NabilBarghash Managing Director
MostafaAbboud BoardMember
Mohamed El Amin Ismail Mansour BoardMember
MahmoudLotfyIsmailMansour BoardMember
Mansour Dairy & Food Company “ Seclam”Name Position
AtefAboShady Chairman
Youssef Mansour ManagingDirectorofFinancialAffairs
Mohamed Mansour BoardMember
Yasseen Mansour BoardMember
NabilBarghash Managing Director
Mohamed El Amin Ismail Mansour BoardMember
MahmoudLotfyIsmailMansour BoardMember
HayatName Position
AtefAboShady Chairman
Youssef Mansour ManagingDirectorofFinancialAffairs
Mohamed Mansour BoardMember
Yasseen Mansour BoardMember
NabilBarghash Managing Director
MostafaAbboud BoardMember
Mohamed El Amin Ismail Mansour BoardMember
MahmoudLotfyIsmailMansour BoardMember
Mansour Electronics and TechnologiesName Position
Youssef Mansour ManagingDirectorofFinancialAffairs
NabilBarghash General Manager
Mansour Courier ServiceName Position
Youssef Mansour GeneralManagerofFinancialAffairs
Tony Costa General Manager
Free ZoneName Position
Youssef Mansour GeneralManagerofFinancialAffairs
AhmedEssamTawfik General Manager
Compliance Committee
Toensure compliancewith local and international regulations, and internationalbestpractices, a compliance committee is inplace,andconsistsofseniormanagementfromtheAuditing,Financial,HumanResources,Personnel,CorporateAffairs,andLegalAffairsDepartments.Thecommitteeconvenesonamonthlybasistoreviewperformance,policies,andprocedures,aswellasto identify and address any gaps. The committeedirectly reports to theGroup’s Chairman, andengages relevant companies’ManagingDirectorsasneeded.
29
a
Our Mission and Values
MHCFI’s governanceapproach restson sevenmainpillars: customer satisfaction; employeedevelopment; integrity;quality inachievement;profitabilityandefficiency;innovationandcreativity;andmutualbenefit.MHCFIstrivestoabidebythesestandardsandusesthemasbenchmarkswheneveritevaluatestheperformanceofanyofitsdivisions.
Our Mission
MHCFIiscommittedtothemanufacturing,marketinganddistributionofhighqualitybrandedconsumerproductsthatmeettheneedsofawidevarietyofconsumersandcomplimentstheirlifestyles.
Weaccomplishthisbyensuringthatourtalentedandeffectiveteamsbasetheirdecisionsonsoundinformationandareabletoexecuteusingupdatedandeffectiveprocesses.Wewillfairlyrewardourpeoplefortheirachievements,andwillcontinuetopursueanactiveroleinadvancingthewelfareofourcommunity.
Ourfutureisinspiredbythelegacyofourfounder,hiscompassionforhisemployees,andhisdriveforcontinuedexcellenceandachievement.
Our Values
Customer SatisfactionOurfirstandforemostresponsibilityistosatisfyourcustomers.Wewillfocusoureffortsonofferingthemhighqualitybrandsandservices,whichgivethemgoodvaluefortheirmoney,andthiswillbethedrivingforceinfluencingourdecisions.
Our PeopleAsacompany,werecognizethatourpeoplearethebuildingblocksofoursuccess.Wewillworktodevelop a highly skilled andmotivated team through rigorous selection, continuousdevelopment,andbyofferingfairopportunityforadvancement, improvedqualityof life,andthechancetoseizeopportunities leading topersonal andorganizational triumph.
IntegrityWewillmaintainthehigheststandardsofethicsandintegrityinallourdealings.Wewillworkhardtomaintainhonestandopenrelationshipsbuiltonmutualtrust.Wewillhonorallcommitments,internalandexternalwhetherverbalorwritten.
Quality in AchievementWewillfocusnotonlyonachievement,butalsoontheprocesswhichleadstothatachievement,withthehighestpossiblestandardofquality.Throughcontinuousimprovementandcollectiveeffort,wewillbecomethefirstorsecondineverymarketinwhichwecompete.
Profitability & EfficiencyOurprofitabilitywilldetermineourabilitytogrow.Inoureffortstoexcelwewilloptimizetheuseofourresourcesandkeepwastetotheminimum.
Innovation & CreativityWeencourageinitiativesbasedoncreativity,andtheinnovationsthatwillmakeusbetteratwhatwedo.Wewillbeflexibleinourapproachtowork,andwillallowforthebrilliantexceptionsthatflourishinanenvironmentofcalculatedrisk.
Mutual BenefitWewill conduct business in a fashion that benefits our company, and all its stakeholders.Wherecollectivebusinessbenefitsexist,wewillworktopromotetheminawaythatensuresthatthebenefitsaremaintainedforthelong-term.
Organization of MHCFI
EachofMHCFI’scompanieshasitsownManagingDirector(MD),whoisendowedwithfullauthoritytoleadhis/hercompany.TheMDrepresentstheChairmanofMG,YoussefMansour,inwhichevercompanytheymanage.MGsetsannualtargetsforeachMD,andtheperformanceofeachcompanyislaterevaluatedagainstthesetargetsattheendoftheyear.
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Inrunningitscompanies,MHCFIalsoadoptsamatrixstructureorganizingthemanagementofthecompanyalongtwolevels.Ontheonehand,theholdingcompanycentralizesseveralsupportfunctionsthatallcompaniesshare,includingHumanResources,PolicyformulationandControl,SupplyChainManagement,Audit,Administration,Security,andLegalandCorporateAffairs.Ontheotherhand,eachcompanyhasitsownoperationalstructure,andwhenneeded,itsownsupportfunctions.Forexample,securityisorganized inMetroMarketonthecompany level;butcorporatesecuritydealswith thesecurityaffairsofall theremainingcompanies.
Control
ThemissionandvalueslistedabovegoverntheworkofallcompaniesinMHCFI.Ontopofthat,thecorporatesystemthatweadopt(previoussection)islaidoutinawaythatsuppliesourcompanieswiththeindependencethattheyneed,whilesimultaneouslyassuringareasonablelevelofcorporatecontrol.
Inadditiontotheseelements,MHCFIisalsogovernedbymanyinternalandexternalstandardswhichsafeguardourperformanceandhelpusoperateinacorruption-freeenvironment.Thesestandardsaredeployedandassuredbyrigorousinternalandexternalfinancialandperformanceauditingsystems.MHCFIhas,infact,anindependentcorporatedepartmentdedicatedtoundertakingsuchaudits.
Manyofourcompanieshavecertifiedpartsoftheirmanagementsystems,accordingtotheirindividualneeds.SeclamandHayatforexample,havebeenawardedthefollowingcertificates:
MHCFIiscurrentlystudyingthedevelopmentofanti-corruptionpolicies.Giventhatallofouractivitiesarecarriedoutintransparentenvironments thatprovide littlespace forcorruption,wegenerallydidn’tconsidersuchpoliciesurgent in thepast. Sincetherevolution,however,combatingcorruptionhasbecomeoneofthemainaspirationsofEgyptiansociety,andMHCFIisplanningtohonorthisnationalgoalwithrenewedvigour.
Associations and Lobbies
BeforetheprotestsbeganinJanuary2011,Egyptiangovernmentbodiesusedtomeetregularlywithbusinessassociationsandrepresentativestodiscussoptionsfordealingwiththeirregularproblems.Backthen,weusedtosufferfromthecomplicationsandbureaucracyofproceduresforobtainingpermitsandlicenses.Thismechanismcollapsedaftertheprotestsandcurrentlythereisanothersysteminthemaking.Wearehopefulthataftertheelectionofanewparliament,wewillbeabletoregainourpositionasactivemembersinthemeetingsbetweentheprivateandthepublicsector.
Asoftoday,westandasactivemembersinseveralbusinessassociations,includingthefollowing:
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I S O22000
I S O18001
I S O14001
I S O17025
EgyptianChamberof
Commerce in Alexandria
ChamberofFood
Industries
GermanArabChamberofCommerce
American ChamberofCommerce
UnitedNationsGlobal
Compact
I S O9001
External Relations
ThroughitsCorporateAffairsdepartment,MHCFIconstantlyengageswithmostofitsgovernmentalstakeholders,includingtheMinistryof Finance, theMinistryof Supply, theMinistryof Tradeand Industry, theMinistryofHealth, theTaxAuthority, theCustomsAuthority,andtheConsumerProtectionAgency,onfiscalandregulatorymatters.Thisisdoneinordertoensurealongtermlevelplayingfieldwhenitcomestoproperandethicalmarketcompetitiveness.MHCFIalsoengageswithmanyoftheseauthoritiesinordertofindcommoninitiativesthatserveboththenationandourcorebusinesses.
Announcing our Performance Results and Policies
Giventhatourcompaniesarenotlistedinthestockmarket,publishingourfinancialstatementsisnotrequired.Nevertheless,wearealwayshappy to share themwithany stakeholder interested in suchaccess.WeemailourSustainabilityReport toallrelevantstakeholdersregularly.Thisincludesallstakeholdersdirectlyandindirectlyaffectedbyouroperations,includingrelevantgovernmentalorganizations,privatesectorsclientsandpartners,andcivil societypartners.Wealsopublish thereportonourwebsite.
We regularly update our policies and communicate any changes and updates to our employees. Changes and updates areinitially announced to everyone involved using our internal email system. New updates are also highlighted in our internalnewsletters.Moreover,announcementsareaddressedandcommunicateddirectlytothedifferentdepartmentmanagerswhointurncommunicatethemtotheirstaff.Thelatestversionsofallourpoliciesandproceduresareavailableonaregularlyupdatedelectronicdatabase thatall staffmembers caneasilyaccess.
Gap Analysis and Commitment Table
Mansour Group is continuously seeking to improve itsmanagement of economic, environmental, and social performance inaccordancewithinternationalandregionalstandards.Tothisend,thecompany’smanagementhasidentifiedtherelevantgaps,withtargetdatesregardingwhentheywillbeaddressed,inordertomitigaterisks,seizeopportunities,andensurethecompany’scompliancetothosestandardsandprinciples.
Wehavelistedthemaincommitmentswearepromisingourstakeholdersbelow-
Commitment Target date
DevelopanInternalTrainingProgramforManagersonSustainabilityIssues 2014 – 2015
DevelopacomprehensiveAnti-CorruptionPolicyandoutlineanti-corruptiongoals 2014 - 2015
CreateanInternalSustainabilityCommittee 2014 - achieved
CreateanInternalSustainabilitymonitoringandreportingsystemforallinvolvedde-partments 2014 – achieved
Develop a comprehensive Stakeholder Engagement Plan 2014 - achieved
Developing a uniform Waste and Energy Monitoring System for:
1-Monitoringtheamountsofwastebytype,weight,andvolumegenerated;2-Monitoringdirectandindirectenergyconsumption;3-Trackinghowcontractorshandlecollectedwaste;4-Trackingtheimpactofenergysavinginitiatives;and5-Monitoringtheportionofmaterialsthatarerecycled.
1,2,and3achieved;4&5tobeachievedin2015.
DevelopacomprehensivePolicyonProductResponsibilityacrossthegroup 2014 – achieved
Implement stakeholder engagement plan 2015-2016
Continueresearchandbusinessdevelopmentfornewbase of the pyramid investment opportunities 2015
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Our People
AtMHCFI,webelieveinouremployeesandstaffandregardthemasthecompany’smostimportantassets.Weareproudtohavedeveloped,overtime,arobustmechanismforattractingthehighcaliberworkforcethatweneed,andtohavedevelopedasystemthatsafeguardstheirinterestsandbuildstheircapacities.
Asamatterofprinciple,weseektodevelopourpeoplefromthemomenttheyjoinMansourGroup,preparingthemtoeventuallybecomeapartofourseniormanagement.Wehavethereforedevelopedahighqualitycapacitybuildingsystemthathasbeenproveneffectiveovertheyears.
Ourrecruitmentsystemisbased,firstly,onapullsystem,wherebyrecruitmentensueswheneveraneedforacertainpositionemergesinourcompanies.Secondly,weadoptedasalaryschemethatpegsourpayaccordingtothemiddlepayinthemarket,whilehonoringourminimumwagepolicywhenwefind that themiddlemarketpay is too low.Thirdly,wearecommitted tosafeguardingtheinterestsofouremployees,andthisisensuredthroughourspeciallydesignedHumanResources(HR)policiesandformalcontracts.Finally,weintensivelytrainouremployeesandstafftobuildtheircareerswiththeaimofkeepingthemindefinitely,ifpossible,ortoqualifythemforexcellentjobsinthemarketifkeepingthemprovesimpractical.Wearealsoadamantonprovidingourworkforcewithfair,transparent,andperiodicperformanceevaluations.
Recruiting Our People
MansourGroupadvertisesforvacanciesthroughnationalandlocalmedia,andthroughappropriatecommunities.Relevantstaffmembers,incooperationwiththeHRdepartment,thenscreenalljobapplications.Jobsareawardedtothoseapplicantsmostqualified.Allourrecruitmentactivitiesaregovernedbypublicizedpoliciesandprocedures.
Withrespecttopay,wedeterminesalariesaccordingtomarketsurveysofthefast-movingconsumergoodssector(FMCGs),ourmainfield,conductedbythirdpartiesandspecializedfirms.Wegenerallytargetasalaryscaleinthemiddleofthemarketspectrumforthesameposition,aspertheseexternalstudies.
Thesesalariesarethenmodifiedaccordingtothelevelofexperienceofthecandidate,andourminimumwagepolicy.GiventhatEgyptdoesn’tapplyaminimumwagelaw,MHCFIwentontoadoptaminimumwageof1,000EGP,whichis400EGPmorethantheminimumwageinthegovernmentalsector.
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Benefits
Inadditiontoourcompetitivesalaries,MHCFIprovidesitsstaffandemployeeswithaddedbenefits,alwaystryingtoexceedtheminimumrequirementssetforthbyEgyptianlaw.Egyptianlawsregulatetheminimummedicalinsuranceforworkersaswellastheirpensionschemes.MHCFIhonorstheselawsandprovidesitsstaffwithfurtherbenefitsincluding:
• Mansour Medical Care unit – An internal Health Insurance system for Mansour Employees;• Mealsorallowanceformealsformanufacturingworkers;• Transportationallowancewhentraveling,andacompanycar,accordingtograde;• Companytransportationforourfactories;• Mobilephoneallowance,accordingtograde;and• Specialrewardsforoutstandingperformance.
Detailsonthenumberofemployees,theirsalaries,andtheirbenefitsarebrokendownbyeachcompanyandcanbefoundinthefollowingtable:
Company Name
Salaries without Incentives(EGP)
Incentives(EGP)
Total Expenditure(EGP)
Number of Employees
Vehicles TransportationAllowance
PersonswithDisabilities
MID 53,964,196 8,986,508 62,950,704 30 129 3
MTD 42,142,707 7,747,335 49,890,043 173 2 2
Seclam 25,141,707 4,934,250 30,075,958 7 2 16
Seclam Sales 7,129,995 1,389,327 8,519,323 38 0 0
Hayat 6,980,947 803,874 7,784,821 1 1 0
MMC 1,454,121 145,289 1,599,410 5 0 0
MET 84,755 7,141 91,896 0 1 0
MDC 700,979 133,917 834,896 0 0 0
Metro Market 128,965,857 20,105,740 149,071,598 75 136 59
Total 269,889,116 44,292,651 314,181,768 330 271 81
Inaccordancewithourpolicy,MHCFIprovidesallitsemployeeswithformalcontracts.ThisprovidesourworkerswithalevelofjobsecuritythatmanylackinEgypt,whereworkinginformallywithoutacontracthasbeenendemicinrecentyears.
MHCFIalsofollowstherelevantlaborlaws:providingitsfemalestaffwiththreemonthsmaternityleave;awardingallemployeeswithaone-monthnoticeperiod;andfollowingEgyptianlawwithrespecttopenalties.
Employment Level and Turnover
MHCFIcurrentlyemploys8,723employees,upfrom8,400employeesmentioned inthe lastreport,makingaturnoverof500employeesduringthelastyear.TheMetroMarket/KheirZamanCompanyoperatesalabor-intensiveactivitybasedonregularentryoftransientlabor.Itthereforeaccountsfor61%ofouremployment,eventhoughitaccountsforonly13%ofourprofits.Mostofthe500thatleftthecompanywereworkersatoursupermarketchains:MetroMarketandKheirZaman.
TheturnoverrateinthesupermarketbusinessisgenerallyhighinEgypt,asitisworldwide,asmanytreatthesejobsastemporaryortransitionaluntiltheylocateamorestableorlongtermjob.Withtheexceptionofoursupermarketchains,wehaveotherwisebeenabletoretainouremployees.
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60+637+531+4 33+1
EMPLOYEE TURNOVER
EXITS2013
ENTRIES2013
17 2
EXITS2014
ENTRIES2014
155 163
Mansour International Distribution
EXITS2013
ENTRIES2013
23 28
EXITS2014
ENTRIES2014
186
301
Mansour for Trading and Distribution
1+0 4+0EXITS2013
ENTRIES2013
0 0
EXITS2014
ENTRIES2014
1 21
Mansour Manufacturing Company – Free zone
EXITS2013
ENTRIES2013
EXITS2014
ENTRIES2014
Mansour Distribution Company – Free zone
38
EXITS2013
ENTRIES2013
1337
EXITS2014
ENTRIES2014
4924
Mansour for Trading and Distribution - SECLAM
EXITS2013
ENTRIES2013
2 6
EXITS2014
ENTRIES2014
55 64
Hayat Company for Industrialization & Development
39
Metro Market for Trading and Distribution
EXITS2013
ENTRIES2013
17655
EXITS2014
ENTRIES2014
1442
538
Training and Career Advancement
ThetrainingandcareerdevelopmentofouremployeesisadeeplyingrainedpartofMHCFI’scorevalues.Careerplanningandtrainingsessionsareconductedbythecompanyonadailybasis.Wearecommittedtodevelopingouremployeesandbuildingtheircapacity,notonlyassistingthemtoreachtheirfullpotential,butalsoequippingthemwiththeskillsandknowledgethattheyneedtoadvanceupthemanagementladder.
Wedivideourtrainingprogramsbytypeandbymanageriallevel.Duringtheyear2013weconducted1,439trainingsessionsintotal.Thisnumberwasincreasedto2,022trainingsessionsin2014,thedetailsofwhichareasfollows:
Type of Training Managers Mid-Level Subordinate Totals Managers Mid-Level Subordinate Totals
Technical Skills 24 32 45 101 12 77 47 136
Soft Skills 16 61 23 100 45 180 237 462
Business Needs 13 115 116 244 15 17 30 62
Certificates & Diplomas 17 17 10 1 11
MBA & Mini MBA 3 3 3
Overseas Training 1
English Courses & Microsoft Skills 4 5 17 26 6 50 36 92
Induction (Product Knowledge) 1 10 45 56 6 40 25 71
Total 2013 547 Total 2014 763
Training Details:
Technical SkillsInnovative Positive Mindset Workshop - Business Writing Fundamentals of Project Management - Evaluation & Selection of Suppliers - Programming in Visual Basic 2010 - Logistics Management & Strategy - Advanced Management Skills - Project Management Preparation - Business Decision Simulation - Certified in Production & Inventory Management CPIM - Advanced Certified International Trainer - Project Planning & Controlling Techniques - Management of Project Resources - Project Bids & Contracts - Project Budgeting & Financial Control - FESTO - Apples & Oranges - Supply Chain Certificate - Introduction to Java Script - Material Handling & Warehousing - Advanced Logistics Management - Performance Management - Labor Law Negotiation Skills - Problem Solving & Decision Making - Media & Public Relations – Inventory Management – Procurement Management Techniques.
Soft SkillsTeam Building & Leadership - Communication Skills - Presentation Skills - Work Place Organization - Business Etiquette - Proactive Co-operation - Coaching for a Gold Medal - Time & Stress Management - Effective Management Skills - Negotiation Skills Project Management.
Business NeedsSix Sigma Orange Belt - Good Manufacturing Practice - Basic PLC Course - Advanced PLC Course - Trouble Shooting PLC Course - Introduction to HSE - Coping with Change - Food Safety & Hygiene - Utilizing Manpower as Resources - Methods of Examination and Testing of Liquid and Dried Dairy - Water Treatment Processing – Handling of Expired Food Products - Training for Capacity Building in the Area of International Trade Agreements.
Certificates & Diploma’sSales Management - Strategize Program - Procurement & Supply Chain Management - Total Quality Management - Advanced
40
Warehouse Management - Project Management Diploma – SPHR.
Overseas TrainingAchieving Outstanding Performance - Leading Effective Sales Force - Strategy Execution Program.
English Courses & Microsoft SkillsMicrosoft Excel - Advanced Microsoft Excel - PowerPoint - Basics of Microsoft Office - IT Oracle & SAP courses.
ThefollowingtabledetailsMetroMarket’strainingsessionsfortheyear2013:
Type of Training Managers Mid-Level Subordinate Totals Technical Skills 2 1 3
Soft Skills 2 1 3
Business Needs 36 102 138
In-house Programs for Sales & Marketing 285 285
Induction 463 463
Total 2013 892
Technical Skills: How to Measure Training Results
Soft Skills: Coaching & Mentoring
Business Needs: Meat Hygiene & Inspection - Civil Defense & Fire Fighting - Food Hygiene
In-house Programs in Sales & Marketing: On-the-Job Training
Induction: Product Knowledge
41
ThefollowingtabledetailsMetroMarket’strainingsessionsfortheyear2014:
Type of Training Managers Mid-Level Subordinate Totals Technical Skills 16 74 6 96
Soft Skills 25 1 44 70
Business Needs 51 153 204
In-house Programs for Sales & Marketing 18 113 131
Diploma(H.R diploma ) 1 1
On Job Training 35 260 295
English Courses 25 41 12 78
Induction 384 384
Total 2014 1,259
Technical Skills
Business Writing - Talent Acquisition - Social Insurance & Labor Law - Certified Assessment Center Analyst - Certified Performance & Competency Developer - Impact Space Management - Train The Trainer - Talent Management - Storewars.
Soft Skills
Customer Service - Emotional Intelligence Skills - Becoming a High Performance Manager - Management Competencies - Advanced Management Skills - Performance Management System - Decision Making & Problem Solving
Business Needs
Meat Hygiene & Inspection - Civil Defense & Fire Fighting - Food Hygiene
In-house Programs for Sales & Marketing
Awareness Session - New Products
Career Advancement
MHCFI’scommitmenttoemployeedevelopmentisperfectlyillustratedbyourinvestmentinoursupermarketchainemployees.Employee trainingwasdesigned to address thehigh turnover in this sector, and to showour employees thatwe care abouttheir long-termcareers.Allofour current storemanagers startedoutatentry levelas storeworkers thatdemonstratedhighperformance,receivedextratraining,gainedexperience,excelled,andwereeventuallypromotedtostoremanagerpositions.Wedon’tneedtorecruitnewstoremanagersfromoutsideouroperations;theyareall internallypromotedworkers.
Todoso,notonlydoweneedtotrainourworkers,butwealsoneedtoprovidethemwithobjectiveKPIsandappraisetheirperformanceperiodicallyandtransparently.Ourendofyearappraisalsinformourstaffabouttheirstrengthsandweaknesses,andprovideuswiththemaininstrumentsbywhichwedetermineannualstaffbonusesandpromotions.
Safety
Allouremployeesaretrainedinevacuationsteps,andinfacingcrisissituations;themajorityofemployeeshavealsobeentrainedinfirefighting.Althoughouractivitiesgenerallydonotputouremployeesatrisk,wehavenonetheless identified36 jobsthatrequirehighsafetyprecautions.Workersinthesepositionsreceivedspecialtrainingandwereallprovidedwithsafetywearlikegoggles,gloves,helmetsandsafetyshoes.
MHCFIcurrentlymonitorsonlymediumandseriousworkinjuries,ofwhichwehavehadnoneduringthepasttwoyears.Wearecurrentlyinvestigatingtheexpansionofamonitoringsystemtoincludemildinjuriesaswell.
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Gender
While we do not have a written anti-discrimination policy,salariesaredecidedbaseduponqualifications;leavingnoroomfor gender biases . Nevertheless, there is a significantly largernumberofmales than femalesacrossour companies,which issomething we are looking to address. The reason behind thepredominance of males in MHCFI is not a result of discriminatory policiesonthepartofourcompany,butratherreflectsaculturalvaluesystemthatdictatesthatfemalesarenotsuitedtoworkinheavyindustries. Wearecurrentlyworkingtowardsenhancingthemanagement gender ratio; but achieving amore balancedgenderbalanceattheblue-collarlevelrequireslonger-termshiftsin socio-cultural values.
The followinggraphs showgenderdistributionfiguresacrossanumberof our companies:
GENDER DISTRIBUTION
70+30 77+23 99+1 91+9Mansour International Distribution Co.
TOTALWORKFORCEMIDDLE MANAGEMENTUPPER MANAGEMENT
95264621985
84+16 90+10 97+3 95+5TOTALWORKFORCEMIDDLE MANAGEMENTUPPER MANAGEMENT
Mansour for Trading & Distribution Co.
116992421332
43
67+33 95+5 100 98+2TOTALWORKFORCEMIDDLE MANAGEMENTUPPER MANAGEMENT
Hayat Company For Industrialization & Development
219155586
100TOTAL
Mansour Free Zone – Manufacturing
53
82+18 85+15 94+6 92+8TOTALWORKFORCEMIDDLE MANAGEMENTUPPER MANAGEMENT
Mansour Dairy & Food Company (Seclam)
91371015152
88+12 89+11 96+496+4TOTALWORKFORCEMIDDLE MANAGEMENTUPPER MANAGEMENT
Metro Market For Trading & Distribution Company
5332501527950
44
MansourGroupishighlycommittedtoresponsiblebusinesspractices.Itundertakesmanyactivitiestopromotethewelfareandsocio-economicdevelopmentofEgyptiansociety,throughavarietyofmechanisms.OneoftheseistheMansourFoundationforDevelopment (MFD),which isdedicated to theeradicationof illiteracy,poverty,anddisease,byeffectivelyworkingwith,andcontributingto,thedevelopmentoflocalcommunities.
Ourcommunity-relatedworkhasundergoneaprocessofevolutionovertheyears.Thefollowingsectionbrieflyhighlightssomeofthemilestoneswithregardstoourcommunitydevelopmentinitiatives.
Historical Milestones on Our Community-Related Work
MansourFoundationforDevelopmentisanindependentlegalentitythatisfullyfundedbytheMansourfamily.Ithasaseparatebudget fromtheMansourGroupanddoesnotacceptanyfinancialaid fromnationalor internationaldonors.MFDalsohasaseparateBoardofDirectors fully dedicated tophilanthropic activities. MFDworks to centralize the communitydevelopmenteffortsofallMansourGroup inordertomaximizetheir impact.MFD isanexpressionof thegratitudefeltbyMansourGrouptowardsthepeopleofEgypt,andweexpectnotax-deductiblereturns.
MFD’sstrategyofsustainablemanagementisbasedonsharedvaluecreation.ThecorporatesuccessofMansourGroupandthesocialwelfareofEgyptareinterdependent.Inanefforttosustainourfoundation,weinvestinthecreationofahealthy,educatedworkforce,andinsustainableresources-bothofwhichguaranteeeffectivegovernanceoftheorganization.Forsocietytothrive,competitivebusinessesmustbedevelopedtocreateincome,wealth,andtaxrevenues,andpracticephilanthropy.
MFDisdedicatedtophilanthropy.Asagrant-makingandco-executingfoundation,thefoundationundertakesmanyactivitiestopromotethewelfareandsocio-economicdevelopmentofEgyptiansociety,deployingtothisendavarietyofmethodstoeradicateilliteracy, poverty, anddiseasewhile raising thepublic awarenessof active citizens.MFD’s team identifies concrete goals andobjectives,prioritizesissuestobeaddressed,anddevelopsdefinedbudgetsforprogramimplementation.
Ourstrategichighpriorityareasinthefieldofhumandevelopmentare:
47
Social EntrepreneurshipEducation
Health
Capacity Building
Academic Research
Arts&Culture
Human Relief
Wehavealsoidentifiedfourprioritysegmentsthatwewanttofocuson,whichareasfollows:
Our Objectives:
• Leverageacademicresearchinsocialentrepreneurship&youthengagement• Preserve&revivetheEgyptianIdentity• Bringcreativity&innovationtobigsocietybysupportingyouthentrepreneurshipfromcoretoshell• Upgradepubliceducationalfacilitiesandbuildings• Supportpoorand/ordisabledstudents• ProvideeducationalscholarshipsinEgyptandabroad• Prevent girls from dropping out of school• Combatilliteracy• Develophealthfacilitiesthatcatertounderprivilegedpeople• Supporthealthactivitiesindeprivedhospitals• Providemedicaltreatmentforpeoplewithdisabilities• ProvidetechnicalsupportforNGOs’staff• Provideeducational,technical,andeconomicsupporttomarginalizedsectors• Supportpeoplewithspecialneedsinthefieldofsports.
Ourapproachissimplyintegrationandinclusion.Ourpillarsarepassion,purpose,andpeople.
Wecannot fulfillourgoalswithoutadoptingstandardpoliciesandprocedures thatensure thedeliveryofutmostqualityandtrustworthiness throughout the lifecycle of our projects and activities. MFD’s approach is based on developing the humanelementinsociety,andisthereforebasedoncommunity-drivenprojects.MFDseeksnotonlytoapplyMansourGroup’sbusinessmanagementmodel in itscommunitydevelopmentactivitiesbutalso to transfer it toourrecipients.
InhabitantsofRemote AreasYouth Women Children
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2013-2014 Portfolio of programs
Corporate Volunteerism:
AtMFD,weengagecommunitymembers involunteer-ismasoneofthemost importantcornerstonesofpromotingcorporatecitizenship. Employee volunteers are perhaps the greatest asset companies can leveragewhen seeking to affect surroundingcommunities.Corporatevolunteer-ismprovidesgreatbenefits toacommunitywhilegeneratingbusinessvalue in the formofincreasing employee engagement and expanding opportunities for team-building.
Civic Education:
Initsbroadestdefinition,“civiceducation”meansalltheprocessesthataffectpeople’sbeliefs,commitments,capabilities,andactionsasmembersorprospectivemembersofanygivencommunity.Forciviceducationtoachieve itsutmostpotential, theinstitutionspresentinthecommunityneedtoactandbehaveinacertainmannerthatcanlaterbetransmittedtotheremainingmembersofthecommunityovertime.CivicEducationiscertainlynotlimitedtoschoolingortheeducationofchildrenandyouth.Families, governments, religious institutes, andmassmedia are just some of the institutions involved in the process of civiceducation,whichweatMFD,understandtobeanongoingprocess.
Asadvocatesandactivistsinthefieldofciviceducation,MFDhasimplementedthefollowing:
1. Civic Manners Film Making Workshop2. Children Values Workshop3. Ways Forum for Youth Engagement in Development4. Civic Education Egypt Conference 5. Development Road Show 6. Development Book Fair
Social Entrepreneurship:
Investmentinsocialentrepreneurshipisvitalbecauseitharnessescreativityanddevisesinnovativesolutionstodeeprootedsocialproblems. Itnurturesapooloffuture leaderswhohaveambitiousdreamsofchangeyetmanagetostayrootedandsolution-oriented.Theircommitmenttopositivelyimpactingsocietyiscentraltothemissionofourbusinessandthisiswhywesupportsocial entrepreneurship from core to shell through:
1. Regional Study on Corporate Sustainability and Social Entrepreneurship2. Entrepreneurs’ Stanford Scholarship
Culture & Arts:
Thesignofahealthycommunityisitssimultaneousabilitytopreserveandinventitsculture—thatis,toconserveitshistoryandheritageandhereisourcontributioninthisregard:
1. DCAF2. ElFan Midan3. Qabila Documentary Film Festival4. Wanas Folklore Festival
Health:
MFDhas systematicactivities toprevent and curehealthproblems, and topromotepositivehealth in Egyptians through thefollowing:
1. Hepatitis A vaccination School Campaign2. Annual Cure Support Program
Capacity Building:
OuraimistocreateanenablingenvironmentforappropriateNGOsviainstitutionaldevelopment,humanresourcesdevelopmentandstrengtheningofmanagerialsystemstomaximizethecapacityofNGOstoovercomethechallengesofcommunitydevelopment.MFDcurrentlyprovidesassistancetothefollowingNGOs:
1. Dar Awladi Orphanage2. Elgabal Elasfar (Yellow Mountain) Local Community Development Association
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3. Elsaktiya Local Community Development Association, Upper Egypt4. Bedaya (Start) Charitable Association, Elfayoum Governorate5. Women’s Association for Better Health, Sohag governorate
Advocacy, Awareness & Networking:
OneofMFD’saims is to influencedecisionswithin institutions relevant todevelopmentandsocial systems.Weadvocate thisthroughmanyformsincludingmediacampaigns,publicspeaking,research&papers,andpeernetworking.Ouractivitiesinthisfieldcanbelistedasfollows:
1. Arab Foundation Forum Board of Directors2. Organizing a roundtable about corporate foundations’ role in time of change in Salzburg 3. MFD paper presentation at 10th CSR conference UAE4. Qatar Education Summit 5. Panel discussion on Collaboration, Governance & Engagement Emirates Youth Summit Social Solidarity:
Social solidarity is thebasis formaintaining social cohesionby strengthening the ability of individuals to support eachother.Althoughactivitieslistedbelowperformdifferenttasksandoftenhavedifferentvaluesanddirections,theorderandsolidarityofsocietymembershingesontheirabilitytorelyoneachotherinordertoovercometimesofcrisis.Peoplefeelconnectedthroughphilanthropicandsocialactivities, including:
1. Holy Quran Competition for Factory Workers2. 1,000,000 blankets campaign3. Food Convoys to the Underprivileged
2013-2014 success in figures:
No of beneficiaries: 10,000 peopleNo. of programs: 28No. of governorates served: 6No. of partners: 26
2013-2014Outcomesarefocusedinvalueprepositionandsharedvalue:
• Scale up programs; highly responsive to crisis at the time that deeply affected the development sector.• Join hands with Mansour employees to spread the spirit of corporate citizenship via serving the community.• Fund & execute numerous development activities; that contribute to positive change and building the future.• Address, engage and support youth in all of our programs. • Develop & expand our outreach methods.
Other Projects
InadditiontoMFD’sconsiderablecommunitydevelopmentefforts,MansourHoldingalsohasseparateprojectsaimedatcontributingtoEgyptiansociety.Furthermore,anumberofprojectswere implemented throughcollaborationbetweenMansourHolding’sCorporateAffairsdepartmentandtheMFD.Forexample,35trashbinswereinstalledintheWadiDeglanaturalprotectorateincollaborationwiththeMinistryofEnvironment,andaclean–upcampaignwasundertakeninthearea.Additionally,since2011,theCorporateAffairsdepartmenthasbeenorganizingbi-annualblooddonationcampaignsforcompanyemployees.
Suez Canal Investment Certificates worth 10 million EGP for the Poorest Families in Luxor
TheMinistryofSocialSolidarityandMansourGrouplaunchedaninitiativetosupportthepeopleintheLuxorgovernorate.TheinitiativecomesinlinewiththeimplementationofamemorandumofunderstandingsignedbetweentheMinistryandMansourGroupunderthepatronageofYoussefMansour,theChairmanoftheMansourGroup,aimedatactivatingthepartnershipinitiativetosupportthepoorestfamiliesinthegovernorate.
MinisterGhadaWalyindicatedthattheMinistryisadoptinganapproachthattargetsthesustainabledevelopmentofthemostmarginalizedofareasthroughpartnershipswiththeprivatesector.SheaddedthatthememorandumofunderstandingsignedwiththeMansourGroupisasuccessfulimplementationofsuchanapproachandemphasizeditssuccess.
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TheMansourGrouphasfinancedthepurchaseofonethousandnewSuezCanalinvestmentcertificatesatEGP10,000/certificatewithatotalvalueof10millionEGP,throughtheMinistryofSocialSolidarity,whichwilldistributethesecertificatestothepoorestfamiliesintheLuxorgovernorate,especiallytargetingwidowswhoprovideforchildrenbelow16yearsofage,andpersonswithspecialneeds.
TheSocialSolidarityDirectorate inLuxordeterminedthetargetfamiliesbasedon itsrecordsand itselectedArmantandEsnadistrictsforbeingtheclosesttoBanqueMisr fromwhichthecertificateswerebought.
YoussefMansoursaidthattheinitiativeisapartoftheMansourGroup’sstrategytocontributetosustainabledevelopmentandfindingpromptsolutions forpoverty.HeaddedthatLuxorwasselectedbecause ithasbeenstruckveryhardbythedramaticdeclineintourisminrecentyears.Healsonotedthatitneedsmassiveandcontinuouseffortstocombatpoverty,illiteracy,andothersocialchallengesinordertoriseuptoitsdeservedposition,bothlocallyandglobally.
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p
Thissectionpresentsourenvironmentalandproductresponsibilityperformance.Wedividedthesectionintotwoparts,dedicatingonepart to eachof the two topics.Wealso structuredour explorationof these two areas around the relevantmaterialGRIperformance,asinthepreviouschapter.
Environment
Our environmental footprint is not among our high impact areas; much of the GRI indicators that cover this area are therefore of moderatetolowmaterialityforus.Mostofouroperationsdonotposeanythreattobiodiversityorendangerlistedspecies,arenotlocatedwithinornearprotectedorrestoredhabitats,andproducelittlenon-recyclablewaste.Moreover,ouroperationsaregenerallynotenergyintensive,nordotheyemitlargequantitiesofCFCsorgreenhousegases.Theaspectsofourenvironmentalperformancethatmightbeofhighmaterialitytoouroperationsare,essentially,ourwasteandtransportationactivities.
Waste
Allofourcompaniesdeploywastemanagementsystemsthatcollecttheirwasteandseparateitbytype.Anexternalcontractor(usuallythesupplieroftheoriginalmaterial)thenbuysthemajorityofthiswastefromus,sincemostofthewastegeneratedactsasinputsinotherindustries.
Thetypeofwastethatweproduceincludes:plasticbottles(whicharesoldtoplasticfactories),paper,wood,dusttobacco,rollingpaper,andunsoldsupermarketcommodities.Wealsoproduceotherproduction-relatedwaste,butinverysmallquantities.Ourindirectwasteincludesthepackagingmaterialthatweuseinourproductionordistribution,mainlypaperandaluminumcans,andplasticbottles.
Todatewemonitortheaggregatewasteinoursupermarketchainsonly;andwecalculatethenumbersintermsofapercentageofsales,ratherthanbyweightandvolume.Wealsodonotmonitortheportionofmaterialsusedthatarerecycledbyusorbyothers.Wehavedevelopedacomprehensivewaste-monitoringframeworkthatisbeingrolledoutoverthenexttwoyears.
Waste Management
MetroandKheirZamanSuccessfullyAdopt100%BiodegradablePlasticBags.
OneofthekeyobjectivesoftheCorporateAffairsDepartmentistoadoptenvironmentallysustainablepracticesintheareasofenergyconsumption,wastemanagement,wateruse,andpaperconsumption,inordertominimizeenvironmentaldegradation.
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Inlinewiththisobjective,theCorporateAffairsDepartment,incooperationwiththeProcurementDepartmentatMetroMarket,begantoexaminewaystominimizeenvironmentaldegradationthroughpracticalapplicationsin2013.Theybeganbylookingattheuseofplasticbagsatall99MetroandKheirZamanstores.Thestores,locatedin12governorates,useapproximately80millionplasticbagsperyear.Accordingly,effortsbegantoconvertallplasticbagstorecyclableplasticbags.
Through cooperationwith SymphonyEnvironmental Ltd., based in theUK, theD2W technologywas adopted to convert old-fashionedplasticbagsinto100%biodegradableplasticbags.TheD2Wmarkwasaffixedonallplasticbagstoencouragecompetitorstoadoptthesametechnologyinordertoreducethecollectiveharmfuleffectsthatplasticshaveontheenvironment.
Future Plans
Wearecurrentlyputtinginplaceanewwaste-monitoringsystemthatmonitorswastebytype,weight,andvolume.Thisshouldsupplyuswithcrucialinformationthatwestilllack.Wearealsomovingtoexpandthiswastemanagementsystemtothewholecompany.Furthermore,wehavebeenofferingproductsthatweremovefromourinventorieswellbeforetheirexpirydatestoouremployeesatheavilydiscountedrates.
Energy
Electricityremainsourprimarysourceofenergy,withallofourcompaniesoperatingonelectricity,andconnectedtothenationalelectricitygrid.OurHayatCompanyistheonlyexception,asitgeneratesallofitselectricityin-housebecauseitoperatesinanareathatlacksaccesstothenationalgrid.Furthermore,toovercomeissuesofblackout,wehavesecuredanumberofgeneratorsforcompaniestooperateonwhenthepowerisout.Whileallofourcompaniesoperateonelectricity,andmanyofthemownandoperateemergencygeneratorstocoverelectricityblackouts,wedon’thavegeneratorsinoursupermarketstores.
Wehaveexpandedourreportingonallofourdirectandindirectenergyconsumption.Westillneedtofurtherexpandtherelevantdatafromourvariousdatabases.WehavealsostartedworkingonreducingourenergyconsumptionbystudyingtheadvantagesofconvertingallourconventionallightstoLED’s.Inaddition,weaggregatemostofthefuelconsumedbythefleetsofourdifferentcompanies,whichrepresentsourlargestenvironmentalimpact.ThefollowingtablesummarizesourfuelconsumptioninEGP.
Fleet Consumption
Company Fleet Diesel Consumption Fleet Gasoline ConsumptionYear 2013 2014 2013 2014
Unit Liters/ Value EGP UNIT VALUE UNIT VALUE UNIT VALUE UNIT VALUE
MID 885,429 972,379 799,727 1,143,025 493,835 1,010,762 468,276 1,050,133
HAYAT 170,689 188,510 148,058 216,056 11,519 20,939 17,821 39,280
Mansour Trading & Distribution 2,547,775 2,818,837 3,024,121 3,975,310 132,155 240,051 132,542 286,791
UPS 13,253 14,579 24,991 36,487 84,342 153,166 78,600 169,776
Metro Markets 1,831,905 2,180,809 2,349,832 3,394,625 484,776 744,766 478,557 883,849
Total 5,449,051 6,175,114 6,346,729 8,765,503 1,206,627 2,169,684 1,175,796 2,429,829
Thetableillustratesourincreasedfuelbill,whichamountstoroughly18%overthepastyear.Thisincreasethisyearwascausedbyanincreaseinthepriceoffuel.
Emissions
OuremissionsaremostlylimitedtothefuelconsumedbyourtransportationfleetsandthefuelusedtogenerateelectricityinourHayatfactory,Inadditiontotheelectricityconsumptionofour99MetroandKheirZamansupermarkets.Wehaveexpandedourmonitoringongreenhousegasemissionscomparedtoourpreviousreport.Thefollowingtablesshowthetotalexpensesforourdiesel,water,andelectricityconsumptionin2013-2014:
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D i e s e l
Company DieselYear 2013 2013 2014 2014
Units / Value EGP UNIT VALUE UNIT VALUE
MID 40,710 44,780 63,612 101,780
HAYAT 774,737 852,200 536,750 858,800
SECLAM 2,759,600 3,533,651 2,310,000 3,535,360
Mansour Trading & Distribution 10,545 11,600 21,991 35,186
Metro Market 97,940 195,880 41,044 82,089
Total 3,683,532 4,638,111 2,973,397 4,613,215
W a t e r
Company WaterYear 2013 2013 2014 2014
Units / Value EGP UNIT VALUE UNIT VALUE
MID 76,616 153,233 47,745 95,489
HAYAT 98 195 126 252
SECLAM 369,404 1,138,863 341,994 1,599,936
Mansour Trading & Distribution 10,244 20,488 22,442 44,885
UPS 6,473 12,947 4,449 8,898
Metro Markets 280,665 701,663 328,318 820,796
Total 744,000 2,027,389 740,625 2,570,256
*It should be noted that Hayat also donates 8,000m3 of itswater to local farmers to be used for agriculturalpurposes. The rest of our companies generally don’t consumemuch water, and typically recycle none.
E l e c t r i c i t y
Company ElectricityYear 2013 2013 2014 2014
Units / Value EGP UNIT VALUE UNIT VALUE
MID 6284918 1,759,777 6,082,472 2,189,690
HAYAT 12846 3,597 18,802 6,769
SECLAM 11,443,185 3,297,156 12,311,854 4,544,862
Mansour Trading & Distribution 609,307 170,606 1,392,744 501,387
UPS 443,643 124,220 702,675 252,963
Metro Markets 71,513,899 42,564,728 70,883,346 47,948,045
Total 90,307,798 47,920,084 91,391,893 55,443,716
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MIDHAYATSECLAMMANSOUR T&DUPSMETRO MARKETS
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10+1+49+1+1+38 6+1+45+3+1+442014
MIDHAYATSECLAMMANSOUR T&DUPSMETRO MARKETS
2013
Water Consumption Units / Year
740,625Units744,000Units
1+21+74+1+3 2+18+76+2+22014
MIDHAYATSECLAMMANSOUR T&DMETRO MARKETS
2013
Diesel Consumption Units / Year
2,973,397Units3,683,532Units
7+1+13+1+1+77 7+1+13+2+1+7620142013
Electricity Consumption Units / Year
91,391,893Units90,307,798Units
Product responsibility
MansourGroupenforcesallthenecessaryprecautionsinordertoensurethesafetyandqualityofourproducts.
Oneofourcompanies–SeclamDairyFactory–producedacomprehensivequalitypolicydocumentthatdefinedtheinternationalhygienestandardsthatarematerialandapplicabletoSeclam’smanufacturingsites.Thesestandardsfocusedstronglyonminimizinganyrisksofproductcontamination,andensuringthattheproductsmeetthehighstandardsthatcustomersexpectfromanyoftheMansourGroupcompanies,therebyavoidinganymanufacturingdeficienciesthatmightdamagethequalityoftheproductsorthatofthehealthofourcustomers.TheassociatesofSeclamsharetheobjectiveofmanufacturingsafe,wholesome,andhighqualityproducts.Belowaresomeoftheseproductqualitypolicies:
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Premises & Maintenance
•Topreventproductcontaminationandanyadverseimpacts,premises must be located away from environmentallypollutedareas,areassubjecttoflooding,areaspronetopestinfestations, or areas where wastes cannot be effectivelymanaged.Adequatemeasuresmustbeinplacetoprotectthepremisesfromanypotentialcontaminants,andgoodhygienepractices must be maintained. •Thepremisesmustbedesigned inaway so that it canbeeasilycleaned,adequatelyventilated,andhassufficientpestcontrol procedures. Also, staff facilities must be designedand operated in a way that minimizes the risks of productcontamination.The factorymusthaveregularlyupdatedanddocumented cleaning programs. • Theremust be an adequate system for the collection anddisposal ofwastes,whichwill notbeallowed toaccumulatein food handling, storage, or other working areas inside oroutsidethefactory.Definedwasteareashavetobeestablishedandsegregatedfromproductionactivities,andwastedisposalmustmeetlegislativerequirementsandthusbedisposedofbylicensed contractors.
Control of Operation
• Raw, unprocessed material must be segregated fromprocessedproductstoavoidcontamination,andproductsmusthaveanappropriateshelf-lifecontrol,withexpiredmaterialsbeingsegregatedandscrapped.Furthermore,allrawmaterialsmustbepurchasedfromapprovedsuppliersinaccordancetoaVendorAssuranceProgram,andhavetobestored ingoodcondition thatmaintains their quality.
•Forfoodsafety,ariskassessmentprocedure(HACCP)isusedtodefine foodsafetyCriticalControlPoints (CCP).Moreover,recipes’ production operating procedures and specificationshavetobecontrolledandavailableforreferenceinappropriateareasofthesites.
•Environmentalandprocessmonitoringprogramsmustbeinplace to tracemicrobiological contamination.All facilities forheating,cooling,freezing,oranyotherprocessmustalsomeetthespecifiedconditionsforensuringfoodsafety.
Foodsafetychecksareperformedinaccordancetobiological,chemical,andphysicalspecifications,withtransportandstoragequalityspecificationsalsoexistingforallfinishedproducts.Finishedproductsarestoredseparatelyfromrawmaterials,andrejectedproductsorreturnedgoodsarelabeledandstoredseparately.Furthermore,vehiclesthatmoveproductsmustbeappropriatelytemperature-controlled,hygienic,andclean.
Pest Control
Acomprehensivepestmanagementprogramis inplacetogreatlyreducetherisktoproductsfrompests.Monitoringforpestactivityisfrequentandregularlyreviewedandpestcontrolauditsandtreatmentsarerecorded.Incomingrawmaterialsarealsothoroughlycheckedforpests.
Personnel
Eachsitehasqualifiedpersonnelwiththenecessaryeducation,training,background,andexperiencetoensurethatallactivities,includinghygieneandprotectiveclothing,arecorrectlyperformed.Proceduresareestablishedtoidentifytrainingcompetencyrequirementsforallassociatestocarryouttheirresponsibilities.Managersandsupervisorshavesufficientknowledgeof foodhygienetobeabletojudgepotentialrisksandtaketheappropriatepreventativemeasuresandcorrectiveactions,whileensuringthateffectivemonitoringandsupervisionistakingplace.Thisensuresthatallpersonnelenteringmanufacturingareashaveanappropriateleveloftraininginbasicfoodhygieneandcompanyhygieneprocedures.Furthermore,allpersonnelaremadeawareoftheircontributiontothequalityandfoodsafetyofthefinishedproducts;andofthepossibleconsequencesoferrorsorlackofattentiontodetails.
Customer Satisfaction
Ourcustomercareunithasacallnumberdedicatedtoreceivingcustomerfeedbackandcomplaints.Allreceivedcomplaintsareaddressedwithin72hoursof their receipt.Wealso implementotherprocedures toensureourcustomers’ satisfaction, theseincludetheuseofcustomerfeedbackformsandmysteryshoppersatoursupermarketstogatherdataaboutstaffperformance,quality, among other variables. We compile quarterly reports about received complaints, and communicate them to seniormanagementandourgovernancebodyonaquarterlyandyearlybasis.
ThetablebelowsummarizesMHCFI’sMaterialitypositioninrelationtoeachoftheGRI3.1indicatorsandguidelines.
Indicates an indicator that are Not Material to MHCFI Indicates an indicator that are Material to MHCFI
Disclosureindicatorsarefurtherhighlightedaccordingtothereportinglevelofeachindicator,asfollows:
Not Reported(IndicatesthatarerelevanttoMHCFI,casesthatarecommerciallyconfidential,and/orcases whereMHCFIlacksrelevantinformationatthemomentandiscommittedtoaddressthislackfuturereporting)
Partially Reported(Indicatescaseswhereonlypartoftheindicatormayberelevant,and/orcaseswhere MHCFIcompilessomebutnotallrelevantinformationandisworkingtowardsreportingfullyontheminthe future)
Fully Reported
AlsoseeourDisclosureonManagementApproachonpage14.
STANDARD DISCLOSURES PART I: Profile Disclosures
1. Strategy and Analysis
Profile Disclosure Description Materiality Disclosure Page
number/ referenceLevel of
Reporting
Global Compact Principles
1.1 StatementonSustainabilityfromthemostseniordecision-makeroftheorganization. Pages 5
1.2 Descriptionofkeyimpacts,risks,andopportunities. Pages:5,13-14
2. Organizational Profile
Profile Disclosure Description Materiality Disclosure Page
number/ referenceLevel of
Reporting
Global Compact Principles
2.1 Nameoftheorganization. Pages: 7
2.2 Primarybrands,products,and/orservices. Pages: 7 - 11
2.3Operationalstructureoftheorganization,includingmaindivisions,operatingcompanies,subsidiaries,andjointventures.
Pages:9
2.4 Locationoforganization’sheadquarters. Pages 7 - 11
2.5
Numberofcountrieswheretheorganizationoperates,andnamesofcountrieswitheithermajoroperationsorthatarespecificallyrelevanttothesustainabilityissuescoveredinthereport.
Pages 7 - 11
2.6 Natureofownershipandlegalform. Pages:7–11,25–29
2.7Marketsserved(includinggeographicbreakdown,sectorsserved,andtypesofcustomers/beneficiaries).
Pages: 7 – 11
2.8 Scaleofthereportingorganization. Pages: 18 – 23
2.9 Significantchangesinthereportingperiodregardingsize,structure,orownership. Pages :17-18
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2.10 Awardsreceivedinthereportingperiod. None
3. Report Parameters
Profile Disclosure Description Materiality Disclosure Page
number/ referenceLevel of
Reporting
Global Compact Principles
3.1 Reportingperiod(e.g.,fiscal/calendaryear)forinformationprovided.
Everytwoyears;SeePages: 17-18
3.2 Dateofmostrecentpreviousreport(ifany). Year 2010;See Pages: 17-18
3.3 Reportingcycle(annual,biennial,etc.) Annual
3.4 Contactpointforquestionsregardingthereportoritscontents.
3.5 Processfordefiningreportcontent. Pages: 17-18
3.6
Boundaryofthereport(e.g.,countries,divisions,subsidiaries,leasedfacilities,jointventures,suppliers).SeeGRIBoundaryProtocolforfurtherguidance.
Pages: 17-18
3.7Stateanyspecificlimitationsonthescopeorboundaryofthereport(seecompletenessprincipleforexplanationofscope).
Pages: 17-18
3.8
Basisforreportingonjointventures,subsidiaries,leasedfacilities,outsourcedoperations,andotherentitiesthatcansignificantlyaffectcomparabilityfromperiodtoperiodand/orbetweenorganizations.
Pages: 17-18
3.9
Datameasurementtechniquesandthebasesofcalculations,includingassumptionsandtechniquesunderlyingestimationsappliedtothecompilationoftheIndicatorsandotherinformationinthereport.Explainanydecisionsnottoapply,ortosubstantiallydivergefrom,theGRIIndicatorProtocols.
Pages: 17-18
3.10
Explanationoftheeffectofanyre-statementsofinformationprovidedinearlierreports,andthereasonsforsuchre-statement(e.g.mergers/acquisitions,changeofbaseyears/periods,natureofbusiness,measurementmethods).
Pages: 17-18
3.11Significantchangesfrompreviousreportingperiodsinthescope,boundary,ormeasurementmethodsappliedinthereport.
None.Pages:17-18
3.12 TableidentifyingthelocationoftheStandardDisclosuresinthereport. Thistable
3.13 Policyandcurrentpracticewithregardtoseekingexternalassuranceforthereport. Pages: 17-18
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4. Governance, Commitments, and Engagement
Profile Disclosure Description Materiality Disclosure Page
number/ referenceLevel of
Reporting
Global Compact Principles
4.1
Governancestructureoftheorganization,includingcommitteesunderthehighestgovernancebodyresponsibleforspecifictasks,suchassettingstrategyororganizationaloversight.
Pages: 25-33
4.2 Indicatewhetherthechairofthehighestgovernancebodyisalsoanexecutiveofficer. Pages:5,25-33
4.3
Fororganizationsthathaveaunitaryboardstructure,statethenumberofmembersofthehighestgovernancebodythatareindependentand/ornon-executivemembers.
Pages: 25-33
4.4Mechanismsforshareholdersandemployeestoproviderecommendationsordirectiontothehighestgovernancebody.
Pages:33.Boardmeetingsfor shareholders due to the nature of the company’sownershipand employee grievance systembasedattheHRdepartment.
4.5
Linkagebetweencompensationformembersofthehighestgovernancebody,seniormanagers,andexecutives(includingdeparturearrangements),andtheorganization’sperformance(includingsocialandenvironmentalperformance).
Pages:36Nodataregardingcom-pensationsforseniormanagersandexecutiveshasbeencollected
4.6Processesinplaceforthehighestgovernancebodytoensureconflictsofinterestareavoided.
Pages: 25-33Currentlybeingdeveloped.
4.7
Processfordeterminingthequalificationsandexpertiseofthemembersofthehighestgovernancebodyforguidingtheorganization’sstrategyoneconomic,environmental,andsocialtopics.
Pages: 25-33Proprietaryinformation.
4.8
Internallydevelopedstatementsofmissionorvalues,codesofconduct,andprinciplesrelevanttoeconomic,environmental,andsocialperformanceandthestatusoftheirimplementation.
Pages:30-31,57
4.9
Proceduresofthehighestgovernancebodyforoverseeingtheorganization’sidentificationandmanagementofeconomic,environmental,andsocialperformance,includingrelevantrisksandopportunities,andadherenceorcompliancewithinternationallyagreedstandards,codesofconduct,andprinciples.
Pages:5,13-14,29,31-33,57
4.1
Processesforevaluatingthehighestgovernancebody’sownperformance,particularlywithrespecttoeconomic,environmental,andsocialperformance.
None
4.11Explanationofwhetherandhowtheprecautionaryapproachorprincipleisaddressedbytheorganization.
N/A 7
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4.12
Externallydevelopedeconomic,environmental,andsocialcharters,principles,orotherinitiativestowhichtheorganizationsubscribesorendorses.
Pages:31,57 1
4.13
Membershipsinassociations(suchasindustryassociations)and/ornational/internationaladvocacyorganizationsinwhichtheorganization:Haspositionsingovernancebodies;Participatesinprojectsorcommittees;Providessubstantivefundingbeyondroutinemembershipdues;orViewsmembershipasstrategic.
Pages: 31 1
4.14 Listofstakeholdergroupsengagedbytheorganization. Pages: 33
4.15 Basisforidentificationandselectionofstakeholderswithwhomtoengage. Pages: 33
4.16Approachestostakeholderengagement,includingfrequencyofengagementbytypeandbystakeholdergroup.
Pages: 33
4.17
Keytopicsandconcernsthathavebeenraisedthroughstakeholderengagement,andhowtheorganizationhasrespondedtothosekeytopicsandconcerns,includingthroughitsreporting.
Pages: 33
STANDARD DISCLOSURES PART II: Performance Indicators
Economic
Perfor-mance Indicator
Description Materiality Disclosure Page num-ber/ reference
Level of Reporting
Global Compact Principles
Economic performance
EC1
Directeconomicvaluegeneratedanddistributed,includingrevenues,operatingcosts,employeecompensation,donationsandothercommunityinvestments,retainedearnings,andpaymentstocapitalprovidersandgovernments.
Pages: 21-23
EC2Financialimplicationsandotherrisksandopportunitiesfortheorganization’sactivitiesduetoclimatechange
N/A 7
EC3 Coverageoftheorganization’sdefinedbenefitplanobligations. Pages:36
EC4 Significantfinancialassistancereceivedfromgovernment. None
Market presence
EC5Rangeofratiosofstandardentry-levelwagebygendercomparedtolocalminimumwageatsignificantlocationsofoperation.
Pages: 35We pay EGP 1000 as a minimumwage;morethanthenationalmini-mum
6
62
EC6Policy,practices,andproportionofspendingonlocally-basedsuppliersatsignificantlocationsofoperation.
Preference is given to local suppliers as long as qualitystandardsaremet.Percentage of spending on local suppliers not aggregated.
8
EC7
Proceduresforlocalhiringandproportionofseniormanagementhiredfromthelocalcommunityatsignificantlocationsofoperation.
Mostofourstaffandmanagers are locals 8
Indirect economic impacts
EC8
Developmentandimpactinfrastructureinvestmentsandservicesprovidedprimarilyforpublicbenefitthroughcommercial,in-kind,orprobonoengagement.
Pages: 47 – 51
EC9Understandinganddescribingsignificantindirecteconomicimpacts,includingtheextentofimpacts.
We didn’t conduct this exercise yet
Environmental
Perfor-mance Indicator
Description Materiality Disclosure Page num-ber/ reference
Level of Reporting
Global Compact Principles
Material
EN1 Materialsusedbyweightorvolume. Datanotavailable 7,8
EN2 Percentageofmaterialsusedthatarerecycledinputmaterials. Datanotavailable 8,9
Energy
EN3 Directenergyconsumptionbyprimaryenergysource. Datanotavailable 7,8
EN4 Indirectenergyconsumptionbyprimarysource. N/A 8
EN5 Energysavedduetoconservationandefficiencyimprovements.
Savingsresultingfromsucheffortsnotyetaggre-gated.
8,9
EN6
Initiativestoprovideenergy-efficientorrenewableenergybasedproductsandservices,andreductionsinenergyrequirementsasaresultoftheseinitiatives.
Page:54.Savingsresultingfromsucheffortsnotyetaggregated.
8,9
EN7 Initiativestoreduceindirectenergyconsumptionandreductionsachieved. N/A 8,9
Water
EN8 Totalwaterwithdrawalbysource. Pages:55-56 8
EN9 Watersourcessignificantlyaffectedbywithdrawalofwater.
UndergroundWaterinSiwa 8
EN10 Percentageandtotalvolumeofwaterrecycledandreused. N/A 8,9
63
Biodiversity
EN11
Locationandsizeoflandowned,leased,managedin,oradjacentto,protectedareasandareasofhighbiodiversityvalueoutsideprotectedareas.
N/A 7,8
EN12
Descriptionofsignificantimpactsofactivities,products,andservicesonbiodiversityinprotectedareasandareasofhighbiodiversityvalueoutsideprotectedareas.
N/A 8
EN13 Habitatsprotectedorrestored. N/A 8
EN14 Strategies,currentactions,andfutureplansformanagingimpactsonbiodiversity. N/A 8
EN15
NumberofIUCNRedListspeciesandnationalconservationlistspecieswithhabitatsinareasaffectedbyoperations,bylevelofextinctionrisk.
N/A 8
Emissions, effluents and waste
EN16 Totaldirectandindirectgreenhousegasemissionsbyweight.
NeedstobecalculatedfromourtransportationFuelConsumption;seePages:53-56
8
EN17 Otherrelevantindirectgreenhousegasemissionsbyweight. N/A 8
EN18 Initiativestoreducegreenhousegasemissionsandreductionsachieved. None 7,8,9
EN19 Emissionsofozone-depletingsubstancesbyweight. N/A 8
EN20 NOx,SOx,andothersignificantairemissionsbytypeandweight. Datanotavailable 8
EN21 Totalwaterdischargebyqualityanddestination. DatanotAvailable 8
EN22 Totalweightofwastebytypeanddisposalmethod.
Awastemonitoringframeworkhasbeendevelopedandwillbeimplemented over the next2years.
8,9
EN23 Totalnumberandvolumeofsignificantspills. Therewerenosuchspillsduringthereportingperiod
8
EN24
Weightoftransported,imported,exported,ortreatedwastedeemedhazardousunderthetermsoftheBaselConventionAnnexI,II,III,andVIII,andpercentageoftransportedwasteshippedinternationally.
Hazardoussubstancesare neither imported nor exportedbythecompany
8
EN25
Identity,size,protectedstatus,andbiodiver-sityvalueofwaterbodiesandrelatedhab-itatssignificantlyaffectedbythereportingorganization’sdischargesofwaterandrunoff.
N/A 8
Products and services
EN26 Initiativestomitigateenvironmentalimpactsofproductsandservices,andextentofimpactmitigation.
Page53.Impactnotaggregated. 7,8,9
64
EN27Percentageofproductssoldandtheirpackagingmaterialsthatarereclaimedbycategory.
Datanotavailable 7,8,9
Compliance
EN28
Monetaryvalueofsignificantfinesandtotalnumberofnon-monetarysanctionsfornon-compliancewithenvironmentallawsandregulations.
None 8
Transport
EN29
Significantenvironmentalimpactsoftrans-portingproductsandothergoodsandmate-rialsusedfortheorganization’soperations,andtransportingmembersoftheworkforce.
Pages:54-56 8
Overall
EN30 Totalenvironmentalprotectionexpendituresandinvestmentsbytype. Data not aggregated 7,8,9
Social: Labor Practices and Decent Work
Perfor-mance Indicator
Description Materiality Disclosure Page num-ber/ reference
Level of Reporting
Global Compact Principles
Employment
LA1Totalworkforcebyemploymenttype,employmentcontract,andregion,brokendownbygender.
Pages: 35-44
LA2Totalnumberandrateofnewemployeehiresandemployeeturnoverbyagegroup,gender,andregion.
Pages: 35-44 3,6
LA3
Benefitsprovidedtofull-timeemployeesthatarenotprovidedtotemporaryorpart-timeemployees,bysignificantlocationsofoperations.
Pages: 35-44 6
LA15 Returntoworkandretentionratesafterparentalleavebygender Data not aggregated 1,3
Labor/management relations
LA4 Percentageofemployeescoveredbycollectivebargainingagreements. None 1,3
LA5Minimumnoticeperiod(s)regardingsignifi-cantoperationalchanges,includingwhetheritisspecifiedincollectiveagreements.
N/A 3
Occupational health and safety
LA6
Percentageoftotalworkforcerepresentedinformaljointmanagement-workerhealthandsafetycommitteesthathelpmonitorandadviseonoccupationalhealthandsafetyprograms.
Involvement not moni-toredsystematically 1
LA7
Ratesofinjury,occupationaldiseases,lostdays,andabsenteeism,andnumberofwork-relatedfatalitiesbyregion,andbygender.
Page 42 1,2
65
LA8
Education,training,counseling,prevention,andrisk-controlprogramsinplacetoassistworkforcemembers,theirfamilies,orcom-munitymembersregardingseriousdiseases.
Notmonitored 1
LA9 Healthandsafetytopicscoveredinformalagreementswithtradeunions. N/A 1
Training and education
LA10 Averagehoursoftrainingperyearperemployeebygenderandemployeecategory. Pages: 40-42 1
LA11
Programsforskillsmanagementandlifelonglearningthatsupportthecontinuedemployabilityofemployeesandassisttheminmanagingcareerendings.
Pages: 40-42 1
LA12Percentageofemployeesreceivingregularperformanceandcareerdevelopmentreviews.
100%ofemployeesreceive performance appraisals.70%receiveannualreviews,and30%receivequarterlyreviews.
1
Diversity and equal opportunity
LA13
Compositionofgovernancebodiesandbreakdownofemployeespercategoryaccordingtogender,agegroup,minoritygroupmembership,andotherindicatorsofdiversity.
Pages 44 -43 13,6
Equal remuneration for women and men
LA14Ratioofbasicsalaryandremunerationofmentowomenbyemployeecategory,bysignificantlocationofoperations.
Salaryislinkedtojob;genderdoesn’tinfluencesalaries
1,3,6
Social: Human Rights
Perfor-mance Indicator
Description Materiality Disclosure Page num-ber/ reference
Level of Reporting
Global Compact Principles
Investment and procurement practice
HR1
Percentageandtotalnumberofsignificantinvestmentagreementsandcontractsthatincludeclausesincorporatinghumanrightsconcernsorthathaveundergonehumanrightsscreening.
N/A 1,2,3,4,5,6
HR2
Percentageofsignificantsuppliers,contractors,andotherbusinesspartnersthathaveundergonehumanrightsscreening,andactionstaken.
Altogether5firmsareN/A 1,2,3,4,5,6
HR3
Totalhoursofemployeetrainingonpoliciesandproceduresconcerningaspectsofhumanrightsthatarerelevanttooperations,includ-ingthepercentageofemployeestrained.
N/A 1,2,3,4,5,6
Non-discrimination
HR4 Totalnumberofincidentsofdiscriminationandcorrectiveactionstaken.
Nosuchincidentswerereported during the reportingperiod
1,2,6
66
Freedom of association & collective bargaining
HR5
Operationsandsignificantsuppliersidentifiedinwhichtherighttoexercisefreedomofassociationandcollectivebargainingmaybeviolatedoratsignificantrisk,andactionstakentosupporttheserights.
Collectivebargainingflowswithease 1,2,3
Child labor
HR6
Operationsandsignificantsuppliersidentifiedashavingsignificantriskforincidentsofchildlabor,andmeasurestakentocontributetotheeffectiveabolitionofchildlabor.
MHCFI cannot employ children given the nature ofbusinessandEgyptianlaborlawsbywhichweabide.
1,2,5
Forced and compulsory labor
HR7
Operationsorsignificantidentifiedashavingsignificantriskforincidentsofforcedorcompulsorylabor,andmeasurestocontributetotheeliminationofallformsofforcedorcompulsorylabor.
N/A 1,2,4
Security practice
HR8
Percentageofsecuritypersonneltrainedintheorganization’spoliciesorproceduresconcerningaspectsofhumanrightsthatarerelevanttooperations.
N/A 1,2
Indigenous rights
HR9Totalnumberofincidentsofviolationsinvolvingrightsofindigenouspeopleandactionstaken.
N/A 1,2
Assessment
HR10Percentageandtotalnumberofoperationsthathavebeensubjecttohumanrightsreviewsand/orimpactassessments.
N/A 1,2
Remediation
HR11Numberofgrievancesrelatedtohumanrightsfiled,addressedandresolvedthroughformalgrievancemechanisms.”
None 1,2
Social: Society
Perfor-mance Indicator
Description Materiality Disclosure Page num-ber/ reference
Level of Reporting
Level of Reporting
Community
SO1Percentageofoperationswithimplementedlocalcommunityengagement,impactassessments,anddevelopmentprograms.
Pages: 47-51
SO9 Operationswithsignificantpotentialoractualnegativeimpactsonlocalcommunities. None
SO10
Preventionandmitigationmeasuresimplementedinoperationswithsignificantpotentialoractualnegativeimpactsonlocalcommunities.
Noneneeded
67
Corruption
SO2 Percentageandtotalnumberofbusinessunitsanalyzedforrisksrelatedtocorruption.
Monitoring not conducted systematically 10
SO3Percentageofemployeestrainedinorganization’santi-corruptionpoliciesandprocedures.
None;Full policy and accompa-nying strategy currently beingdeveloped
10
SO4 Actionstakeninresponsetoincidentsofcorruption.
Nonewererecordedduringthereportingperiod.
10
Public policy
SO5 Publicpolicypositionsandparticipationinpublicpolicydevelopmentandlobbying. Pages: 31-33 1,10
SO6Totalvalueoffinancialandin-kindcontributionstopoliticalparties,politicians,andrelatedinstitutionsbycountry.
None;The company doesn’t fundanypoliticalorgani-zations
1,10
Anti-competitive behavior
SO7Totalnumberoflegalactionsforanti-competitivebehavior,anti-trust,andmonopolypracticesandtheiroutcomes.
None 1,10
Compliance
SO8Monetaryvalueofsignificantfinesandtotalnumberofnon-monetarysanctionsfornon-compliancewithlawsandregulations.
None
Social: Product Responsibility
Perfor-mance Indicator
Description Materiality Disclosure Page num-ber/ reference
Level of Reporting
Level of Reporting
Customer health and safety
PR1
Lifecyclestagesinwhichhealthandsafetyimpactsofproductsandservicesareassessedforimprovement,andpercentageofsignificantproductsandservicescategoriessubjecttosuchprocedures.
Notanalyzed 1
PR2
Totalnumberofincidentsofnon-compliancewithregulationsandvoluntarycodesconcerninghealthandsafetyimpactsofproductsandservicesduringtheirlifecycle,bytypeofoutcomes.
None 1
Product and service labeling
PR3
Typeofproductandserviceinformationrequiredbyprocedures,andpercentageofsignificantproductsandservicessubjecttosuchinformationrequirements.
100%ofrelevantproductsarelabeledaccordingtothe requirements of the EgyptianOrganizationForStandardization&Quality.
8
PR4
Totalnumberofincidentsofnon-compliancewithregulationsandvoluntarycodesconcerningproductandserviceinformationandlabeling,bytypeofoutcomes.
None 8
68
PR5Practicesrelatedtocustomersatisfaction,includingresultsofsurveysmeasuringcustomersatisfaction.
Pages: 57
Marketing communications
PR6
Programsforadherencetolaws,standards,andvoluntarycodesrelatedtomarketingcommunications,includingadvertising,pro-motion,andsponsorship.
We have developed an in-ternalTobaccopromotionstandardthatbanstarget-ingchildren,non-smok-ers,ortheprovisionoffreesamples.
PR7
Totalnumberofincidentsofnon-compliancewithregulationsandvoluntarycodesconcerningmarketingcommunications,includingadvertising,promotion,andsponsorshipbytypeofoutcomes.
None.Anymarketingeffortisapprovedbythe Legal and Corporate AffairsDepartmentstoensurecompliance.
Customer privacy
PR8Totalnumberofsubstantiatedcomplaintsregardingbreachesofcustomerprivacyandlossesofcustomerdata.
N/A 1
Compliance
PR9
Monetaryvalueofsignificantfinesfornon-compliancewithlawsandregulationsconcerningtheprovisionanduseofproductsandservices.
None 2
69
k
For more than half a century, the Mansour name has continued to be known and trusted as a leader in business. Today, we are proud to carry on that tradition, and proud of our accomplishments, both commercial and social.
Al Mansour Holdings Company is not just a business, but a family, and we continue to forge ahead as a family business, embracing not only what’s good for business, but what’s good for our larger family of employees, and ultimately, what’s good for the generations of Egyptians to come.
HEADQUARTERS
Zahraa El Maadi, Industrial Zone, P.O.Box 97New Maadi 11435, Cairo, Egypt.Tel: + (202) [email protected]
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