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Private S ector Value Proposition

Private S ector Value Proposition. Align priorities/nexus Create shared value Reduce community, operational and institutional risks R educe transactions costs. USWP Roles: Creating the enabling environment for commercialization/innovation and solutions

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Private S ector Value Proposition

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  1. Private Sector Value Proposition Align priorities/nexus Create shared value Reduce community, operational and institutional risks Reduce transactions costs • USWP Roles: • Creating the enabling environment for commercialization/innovation and solutions • Co-creation with various stakeholders • Intermediary role for co-investment • “Coordinator/developer” role with menu of solutions • Issue promotion, education, and outreach • Thought leadership and knowledge transfer

  2. Social InvestmentMaking a betterfutureforall

  3. A STORY OF SHARED VALUE Since its origin as a local brewery in 1890, FEMSA has committed to act responsibly engaging both community and environment. WE HAVE GONE BEYOND OUR LEGAL OBLIGATIONS, LEADING THE INDUSTRY IN SUSTAINABILITY EFFORTS STAGE I STAGE II STAGE III STAGE IV Governmentsestablishguidelinestoregulatecompany and societyrelations Social Responsibilityisseen as anethicor moral problemthatmustbefacedwithprinciplesorcreeds. CSR becomesrelatedwiththephilanthropy and thecivicalliances of companies CSR isconceived as a “social investment” • Private medical service • (1890) • Housing support (1906) • Internal training (1912) • SCYF foundation (1918) • ITESM foundation (1943) • 44 medical centers in the country (1980s) • Expansion of social development to 8 Latin American countries (2000) • Update of Social Development Model (2004) • 2008 • IMSS (1945) and • INFONAVIT (1975) • Recognized as a Socially Responsible Company & • First Sustainability • Report in FEMSA (2005)

  4. ABOUT FUNDACIÓN FEMSA OUR STRATEGIC AREAS • We are a social investment instrument that supports the conservation and sustainable use of water resources and the improvement of quality of life in our communities through applied education, science, and technology. SUSTAINABLE DEVELOPMENT OF WATER RESOURCES Throughitsthreeprograms: 1.- Capacity Building and Applied Research 2.- Water and Sanitation 3.- Watershed Conservation QUALITY OF LIFE Throughitstwoprograms: 1.- Capacity Building and Applied Research 2.- Education in Nutrition and Physical Activity

  5. OUR FOCUS WE CAN NEVER DO IT ALONE • THIS IS WHY WE ONLY WORK THROUGH STRATEGIC ALLIANCES • Wegobeyondthetraditionaldiologuewithkeyaudiencestobuildstrategicpartnershipsthatgiveus a betterplatformtoensuresuccessfulinterventions. • Ouralliances are builtuponcommenobjetctives, transparency, and open communicationchannelstoaddvalueand maximizeefforts.

  6. SUSTAINABLE DEVELOPMENT OF WATER RESOURCES Throughitsthreeprograms: 1.- Capacity Building and Applied Research 2.- Water and Sanitation 3.- Watershed Conservation

  7. Capacity Building and Applied Research With the goal of addressing regional challenges of the water community, the Center, a joint initiative from Tecnológico de Monterrey, FEMSA Foundation and the IDB, was born in 2008. It offers comprehensive solutions through research, training, and technological development. RESULTS +1500 TRAINED PROFESSIONALS 40 PUBLICATIONS 23 COURSES http://www.centrodelagua.org/

  8. In threeyearsWater Links willpermanentlybenefit 110,000 peopole in Colombia, Guatemala, Mexico, Honduras, and Nicaragua. GOALS IN 3 YEARS EverycommunitybenefitedbyWater Links are rural, some of them in remoteregions, and many of themhavehighpovertyrates. +110,000 peoplebenefitedpermanently 5 countries improvements in wateraccess, sanitation, and hygiene

  9. WaterFunds are aninnovative way of payingfortheserviceswereceivefromnatureand reinvestingtheseresources in conservationactivities. 16 WaterFunds in differentoperationstages BENEFITS OF WATER FUNDS 7 • They align activities in watersheds. • Theyguaranteethesustainability of interventions. • Tey are based on science. • Theymakebusinesssense • They can influencepublicpolitybyimprovingcoordinationbetweenpublic and privateinvestments. • Monitoring is mandatory. • They evaluate their impact. Itsmaingoalisforpeople and naturetoprosperthroughthecommitment and jointefforts of stakeholders. 7 countrieswith WaterFunds RESULTS 2013

  10. MEXICO • Semilla de Agua, Chiapas 2012 • Fondo de Agua Metropolitano de Monterrey – 2013 • ECUADOR • Fondo para la Protección del Agua – FONAG, Quito –2000 • Fondo del Agua para la conservación de la cuenca del río Paute – FONAPA, Azuay –2008 • Fondo de Páramos Tungurahua y Lucha Contra la Pobreza, Tungurahua – 2008 • Fondo Pro-Cuencas, Zamora - 2006 • VENEZUELA • Fondo de Agua de Mérida – 2013 • BRASIL • Fondo de Agua PCJ y Alto Tete, Sao Paulo – Brasil, 2005 • Productores de Água da Floresta, Guandu – 2008 • Fondo de Agua de Pipiripau, Brasilia –2012 • Pago por Servicios Ambientales Espíritu Santo , Espiritu Santo –2008 • Pago por Servicios Ambientales Camboriu, Camboriu –2013 • COLOMBIA • Agua Somos, Bogotá – 2008 • Agua por la Vida y la Sostenibilidad, Valle del Cauca – 2010 • Fondo de Agua Cuenca Verde, Medellín, 2013 • PERÚ • Aquafondo, Lima – 2012

  11. Thankyou! Vidal Garza, Director, FEMSA Foundationvidal.garza@femsa.com.mx Carlos Hurtado, WaterResources Manager carlos.hurtado@femsa.com.mx www.femsafoundation.org

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