Raúl Escalante Martínez – GC Powerlist
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Mexico 2023

Food, beverages and tobacco

Raúl Escalante Martínez

Vice president legal and corporate affairs | Grupo Modelo

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Mexico 2023

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Raúl Escalante Martínez

Vice president legal and corporate affairs | Grupo Modelo

Team size: Over 100

Could you share an example of a time when you came up with an innovation that improved how your legal team works and did not come at a large expense?

Managing licenses and permits is one of the most relevant tasks in the legal area; ensuring their proper usage guarantees our business’ continuity. Grupo Modelo requires thousands of licenses for the production, sale, storage, and distribution of beer, plus the ones necessary for our over 10,000 stores, Modeloramas.

To address the challenges that licenses and permits represent, we developed Automy, a technology platform that works as a digital registry and inventory of our licenses and permits. This tool allows us to track their status and receive automatic alerts of expiration dates, which helps us carry out procedures within legal timeframes, thus reducing the risk of fines and foreclosures of our operations. The platform also has a dashboard system that lets us identify the specific type of license or permit, its location, assignments, and cost effectiveness, among other valuable information for the business.

What measures has your company taken to embed sustainability practices into its core business operations, and how does the role of the general counsel contribute to driving and ensuring sustainable practices within the company?

Mexico is facing one the most severe water crisis in history, particularly in the north part of the country where draughts hit so hard in 2022 that the federal government limited the water usage to several industries, including beer production.

In Grupo Modelo, we know that there is no beer without water and that is why we recognise that sustainability is not only a part of our business; it is our business itself. A few years ago, we made the commitment to achieve specific sustainability goals for 2025 regarding four key pillars: water stewardship, smart agriculture, circular packaging, and climate action.

As a result of this commitment, in the past ten years, we have reduced water usage in beer production by nearly 30%, and today we treat 100% of our wastewater; we educated over 2,000 barley producers on how to use water smartly; together with the GIZ, we are investing $10m to restore the aquifers of Calera (Zacatecas) and Apan (Hidalgo) where two of our main breweries are located; and recently, we entered into a collaboration agreement with Mexico City’s government to improve water accessibility to the local community.

From the legal team’s standpoint, we are responsible for having a deep understanding of the water and environment regulatory frameworks, are to manage and update our water rights, negotiate cooperation agreements, and advise on legal best practices to guarantee we operate in a sustainable way and comply with the rule of law.

How do you prioritise diversity and inclusion within your legal department, and what initiatives have you implemented to foster a more inclusive and equitable work environment?

In the legal and corporate affairs team, we are committed to promoting a workplace where employees feel appreciated and valued, where they can feel safe and proud to be who they are. This commitment is not only part of our team’s DNA but is an important part of Grupo Modelo’s culture and values. That is why we encourage our colleges to learn more about our policies and become diversity, equity, and inclusion ambassadors inside and outside our company.

Also, in all our recruitment and evaluation processes, we undertake bias breaking training programs to focus objectively on cultural fit and KPIs performance without distinction of gender, race, nationality, education background, among others. We always seek to provide objective and transparent feedback and ensure development opportunities based on meritocracy and adherence to our organisational culture and values.

Raúl Escalante Martínez - Green Mexico 2024

Vice president legal and corporate affairs | Grupo Modelo

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