Supporting document N 1

Augusto Bauer, from Aje, on sustainability: “We want this business

model to be more representative every day”
When it comes to sustainability, Aje Group doesn't just talk loud, it acts. This was what the
company's deputy CEO, Augusto Bauer, highlighted during his participation in the IV
Congress of Amazonian Entrepreneurs.

“What we want is for this business model to be more representative and relevant for Aje
every day and to weigh more within its entire basket of products. And it can be done. It
took us several years. It is not easy to create a production chain. There is a lot of work,
there is a lot to do, but it can continue to be done,” said Bauer.

The company has more than 8 thousand workers, is in 21 countries and has just opened a
factory in Cameroon (Central Africa) and began to define its commitment to sustainability
in 2017 and has currently deployed initiatives to protect the Amazon.

Thus, Aje, Bauer explained, is helping to protect 130 thousand hectares of reserves in the
Amazon “in alliance with the authorities,” as part of a public-private effort.

“This is a team, and it is a team that includes local government, regional government,
international governments like the British Government, which is a great ally of us, the
community, the leader of the community. “These are initiatives that have to be done
collaboratively,” he said, adding that the important thing is not only to talk about
sustainability, but to “do sustainability.”

“In a different way, under a sustainable harvest model. We have the opportunity to bring
these super fruits to many markets but under a model where the forest remains standing,
where communities receive a fair income, have a biobusiness with us, keeping the forest
standing, becoming guardians, because we are valuing the wealth under which they are
living. It is not about generating investments or bringing green bonds to assist the basic
needs of the Amazon. It is about creating businesses for communities with what they have
there and that has value (...). We must move from intention to action,” said Bauer.

(Peru21, 2023)
Supporting document N 2
What are the bases that supported the sustainable
management of the company in 2021?
Sustainability has always been present in the company and since its founding, the Añaños
family incorporated respect for natural resources, back in their native San Miguel de la
Mar, in Ayacucho.

Then we developed the AJE sustainability platform, which is based on 3 pillars: People,
Environment and Value Chains, with the aim of contributing to the natural revolution and
promoting the biodiversity of our planet.

The sustainability strategy, which is immersed in the entire value chain, has allowed the
development of different initiatives such as “Superfruits that Conserve Forests”, a project
launched with the support of the United Kingdom embassy in collaboration with
Partnerships for Forests and managed by the NGO Earth Innovation Institute, which seeks
to value the Amazon forests; the Freshwater Turtle Festival of the Peruvian Amazon, with
the objective of repopulating and conserving “taricaya” hatchlings in natural environments
in the province of Maynas, in the city of Loreto; and Machu Picchu Carbon Neutral, in
strategic alliance with England, Green Initiative and the Municipality of Machu Picchu, to
promote a program of activities that mitigate the Co2 footprint and make it the first tourist
destination in the world to obtain the Carbon Neutral certificate.

What were the main sustainability projects launched this year and what achievements did
they generate for the company?

The main sustainability projects launched this year are:

• Release and repopulation of taricayas: Grupo AJE, with its BIO Amayu brand, is part of
this initiative together with other actors such as the municipalities of Maynas, Punchana
and Belén; the communities of San José de Lupuna (Nanay River), Puerto Alegría (Itaya
River) and El Porvenir (Momón River); MINAM, SERNANP, GERFOR, SERFOR, IIAP,
MINCETUR and DIRCETURA. Likewise, in the first part of the year, Grupo AJE joined the
project “Sponsor a taricaya, conserve Pacaya”, promoted by SERNANP, in which it
sponsored 2,500 taricaya turtles, contributing to the conservation of this emblematic
species of the Peruvian jungle and collaborating with 72 families who have not been able
to carry out their activities normally due to the COVID-19 situation.
• Machu Picchu Carbon Neutral: The strategic alliance of Grupo AJE, Inkaterra, Green
Initiative and the Municipality of Machu Picchu is the first step to promote a program of
activities that mitigate the Co2 footprint with the objective of achieving two key goals –
reducing emissions by 45% until 2030 and achieve net zero emissions, or carbon neutrality
until 2050.
The most-- important actions generated by the AJE Group through its water brand “Cielo”
and Inkaterra, was the implementation of two Plastic Waste Compactors for Machu Picchu
Pueblo and the Inca Trail, each with the capacity to process 7 tons of plastic per day. PET
waste. This donation was followed by the implementation of the Biodiesel Plant, which
prevents the arrival of 1,000 gallons of vegetable oil waste into the Vilcanota River,
generating job opportunities in the production of eco-friendly fuel and chemical-free
glycerin.

Other initiatives implemented for environmental care by strategic partners are the Organic
Waste Pyrolizer: It processes organic waste at high temperatures to obtain bio-charcoal
and prevents the emission of Greenhouse Gases (Methane and Carbon Dioxide). The
biochar generated is used by the community as fertilizer and by Sernanp in its
reforestation tasks of the sanctuary. Finally, the Glass Crusher, which produces sand from
crushed glass, which will mitigate the extraction of sand from the banks of the Vilcanota
River in order to reduce the erosion that endangers the integrity of Machu Picchu Pueblo.

(López-Doriga, 2021)
Supporting document N 3
How has the company reaffirmed its commitment to sustainability
and responsible consumption in recent years?

Responsible consumption has become a global priority. Taking this into account, we
develop in our portfolio a category that generates positive impacts on the people who
enjoy them, our conscious users, as well as on the planet, and mainly provides
development to communities. We are talking about our line of Bio Amayu products, which
was born under the Amarumayu movement, a new line of business based on Amazonian
superfruits, which generate health benefits and involve the communities who collect
them, in a sustainable way and respecting the cycles of the nature, the inputs used in its
production, integrating them into our value chain.
We seek, through our brands, to enhance the conservation of the environment and its
ecosystems. Through Cielo and the hand of our allies, we made Machu Picchu become the
first tourist destination and world wonder to obtain Carbon Neutral certification. Likewise,
with the Bio Amayu line, sustainable value chains have been developed with the fruits of
aguaje and camu camu, with 150 families from 9 Amazonian communities of the Abanico
del Pastaza or the Pacaya – Samiria National Reserve. At a global level, for example, we
have participation in 2 communities in the province of Samutsongkram, in Thailand, where
the 4.8 hectare coconut flower plantation produces a supply of 24,000 liters of juice per
month.

Can you explain to us what the so-called “natural revolution” that AJE group has launched
to preserve the environment and the biodiversity that exists in Peru consists of?
Climate change and its consequences on the lives of all of us who inhabit the planet place
us in front of a crisis that leads us to question the relationship we have with the earth. We
are going through an industrial revolution where the excessive consumption of natural
resources to satisfy consumer needs took us to the extreme and today we are at a critical
point. This is where the Natural Revolution is born, based on a new relationship
of the human being with what he consumes. We went from being consumers to conscious
users with an approach we call “triple win”: “good for you”, “good for the environment”
and “good for communities”.
But we are not only concerned about the preservation of the environment in Peru and its
ecosystems, but we are expanding it to our operations in the world. An example of this is
the project we have in the Mayan Biosphere that, in alliance with the Wildlife
Conservation Society, Grupo AJE will help preserve a critical wetland in Laguna del Tigre,
the most biodiverse area in Central America.
On the other side of the world we have signed with UNESCO and the governor of
Ayutthaya, an alliance to protect Historical Park certified by UNESCO as a World Heritage
Site since 1991.

What specific results have been achieved with the “Superfruits that conserve forests”
project in terms of protecting different national reserves in the country?
One of the most important is to conserve the forest and its biodiversity. The global
Amazon is threatened by deforestation and keeping the forest standing is
the safest way to preserve it. Through our Bio Amayu drinks, made from superfruits
collected in the heart of the Amazon communities, using sustainable harvesting practices
and helping to mitigate climate change, we have proposed the ideal strategy to achieve
long-term results and, therefore, way, conserve the protected areas in the country (Pacaya
Samiria, Manu).
We are currently working with 12 Amazonian communities, with a view to reaching 20 by
the end of the year, in which 150 families have benefited. From 2018 to date, more than
700 tons have been purchased directly from the communities, with an approximate impact
of 30,000 total hectares and 8,000 usable hectares.

(Andara, 2022)
Supporting document N 4
What is sustainability management like at AJE?
Gianina: Sustainability is embedded in our DNA; We have been working for approximately
four years to develop a sustainability strategy that is transversal to all our areas. In fact, we
consider it one of the backbones of our business. It is not that we think of sustainability as
an external area or a separate area. What we are looking for is that decisions are made
from all areas thinking or having that vision.

We have achieved all of this by working hand in hand with allies who have helped us build
this path. For us, working in alliances has been very important. As part of this strategy we
have developed the AJE sustainability platform, through which we involve all areas of the
business value chain and set target indicators. This platform is based on three axes of
action: People, Environment and Value Chains.

We seek to align our sustainability strategy with the core of our business, since the idea is
that it is at the center of our actions and decision-making. Along these lines, we developed
nine dimensions of sustainable action that transcend the different areas of the group, each
with KPIs that we have been measuring every quarter.

All this work translates, for example, into the development of products with a sustainable
value chain. Along these lines, we have innovations such as Bio AMAYU, which is precisely
our flagship drink because it links everything that the Natural Revolution means, this new
relationship between human beings and what they consume.

We went from being consumers to conscious users with an approach we call “triple win”:
“Good for you, good for the environment and good for communities.” We say “good for
you” thinking about the people, whom we call our conscious users, who decide to
consume these products because they help their well-being and care for the planet. It is
“good for the communities” because we work hand in hand with the Amazonian peoples,
who are in charge of collecting the Amazonian super fruits that we use in the preparation
of these drinks. This generates sustained income throughout the year, which contributes
to improving their quality of life. And it is “good for the environment” because under this
business model the communities are committed to preserving the forest and harvesting
the fruits in a sustainable way, respecting the cycles of nature. In this way we have
managed to develop a “bio business” that contributes to preserving the planet's
biodiversity.

(García, 2023)
Supporting document N 5
AJE and their sustainability

AJE is a Peruvian MNC founded in 1988 by the Añaños Jeri family in Ayacucho, Peru.
Originally, the company focused on manufacturing fizzy/sparkling beverages which are
similar in flavor to then fleeing-from-conflict foreign competitors and to consumer markets
which foreign competitors would not reach. Eventually, AJE’s success in Ayacucho allowed
country-wide expansion from 1991 up, reaching the country’s capital, Lima, in 1997. It
presented a characteristic policy of “democratization” of prices in contrast of foreign
competition, becoming a trademark for middle to low-income consumers inside of
emerging economies (Grupo AJE, 2014). Since its origins, the founding family understood
the reciprocal relationship between human acts and nature through the concept of ayni
(Grupo AJE, 2020). AJE explains that this was the reasoning behind several pro-
environment activities financed by the company, such as the taricaya turtle repopulation
project in Pacaya Samiria National Reserve, where their raw materials are collected, and
also the successful alliance in Machu Picchu to turn its town into a sustainable city model
for Latin America that can manage 100% of its solid waste.

AJE Group achieved significant growth in the beverages sector as they managed to operate
several plants in most Peruvian cities, including the capital, serving millions of Peruvian
families. Moreover, an ever-expanding business mindset determined new goals that went
even further. As a case study on the internationalization process of Kola Real (their brand
favorite) points clearly: “they have expanded to three more countries in a short period of
time with annual sales exceeding several times those of the country itself, which is simply
spectacular” (Ferre & Natividad, 2003, p. 1). This achievement has become another
cornerstone into the path of the organization building towards future development.

The expansion was characterized not only by AJE’s policy of developing low-cost price/high
quality products which appealed to low-income populations of developing economies, but
by “a clear internationalization strategy of linking with local and already established
partners which provided the necessary market knowledge” (Grupo AJE, 2014). From this
millennia on, AJE has reached multinational status first through regional expansion
(Venezuela in 1999; Ecuador and Panama in 2000; México in 2002; Costa Rica in 2004;
Guatemala, Nicaragua and Honduras in 2005; Colombia in 2007; Brazil in 2007), and then
towards Asian (India, Vietnam and Indonesia in 2011) and African markets (Nigeria in
2013, Egypt in 2015, Cameroon in 2022) (Peru Retail Press Editor, 2022), establishing a
reputation for high performance in international business, sustaining remarkable business
strategies and achievements.

The business model of the Peruvian “multilatina” AJE Group, as mentioned, has led it to
become one of the preferred brands for medium to low-income consumers, offering high
quality products with affordable prices. This model has 92% of its sales to external
distributors and small merchants and 8% to wholesale distributors, which ensures that it
reaches this niche of consumers, which is actually the majority of the population for the
economically emerging countries where it operates (Grupo AJE, 2014).

At the point of AJE’s main period of expansion, unprecedented and accelerated growth
inside of emerging economies had already started to proportionally affect their own
sustainable development, with multinational companies adopting short-term
environmental policies which were mostly ascribed to substantially vague cases of green-
washing or green optics that were in most cases either environmentally ineffective or
economically unsustainable. AJE’s sustainability department, following the company’s
already standing pillars of product democratization and local partnerships/alliances, came
up with Bio Amayu. “Sustainability has always been part of AJE’s DNA: it is its inherent
value differential. Nonetheless, companies change, grow and evolve, for which we are not
an exception” (Grupo AJE, 2020).

AJE Group as an organization is self-reportedly composed of three main pillars:

development, management and innovation; and three fundamental axes for business: the
people, the environment and the value chain. For AJE Group (2020), the conjunction of
these principles expresses itself in nine different dimensions for sustainability that come to
simultaneously satisfy a series of Sustainable Development Goals (SDGs), which are
described and analyzed one by one in the following section.

Positive impact portfolio

AJE’s products are designed to promote healthy living and well-being for everybody at all
stages of life (Grupo AJE, 2020), with a practice of keeping their beverages ingredients,
nutritional values and servings within reasonable limits whilst keeping low or “democratic”
prices. All of AJE’s products promote well-being for most of the population through native
superfruits based products, and upon a vision of large-scale replicable business models for
massive markets that makes it accessible, supporting good health (SDG 3).

Sustainability culture

The same purpose/mission is shared among all members of the organization. This
increases the capabilities of collaborators to contribute to the objectives and live the
company’s culture of sustainability (Grupo AJE, 2020). Given that AJE’s original conception
has permeated its structure through its expansion, sustainability permeates its whole
DNA. Together with sustainability training and the creation of sustainability teams, this
dimension focuses on decent work, economic growth and reduction of inequalities (SDGs
8 and 10, respectively).

Talent for sustainability

Through investment in R&D, together with constant communication of ideas within
executives and teams that work in the field, talent and ideas get their way into many
different sustainability projects. “In AJE, the development of capacities is facilitated, and
spaces are provided to promote, identify and recognize 'disruptive' ideas for sustainability”
(Grupo AJE, 2020). The innovation that comes from this is one the key factors in AJE’s
success, given that it constitutes one of the corporation’s main pillars, which comes in
favor of national industry, innovation and infrastructure (SDG 9).

Positive impact on the environment

AJE’s innovative products are such that they make large-scale high-impact sustainable
action profitable. In this way, they are also able to “promote the sustainable use and
conservation of ecosystems and their services” (Grupo AJE, 2020) to the rest of the world,
and upon that solid base they start to invite the consumers not only as clients, but as
committed citizens requested to join the movement by becoming “guardians of the
Amazon” through marketing campaigns that increase awareness, guaranteeing the life of
land ecosystems and their biodiversity (SDG 15).

(Landeo, 2023)
Bibliografía
(12 de Junio de 2023). Obtenido de Peru 2021: https://peru21.pe/economia/augusto-
bauer-de-aje-sobre-la-sostenibilidad-queremos-que-este-modelo-de-negocio-sea-
cada-dia-mas-representativo-noticia/
López-Doriga, J. (27 de Diciembre de 2021). Stakeholders. Obtenido de
https://stakeholders.com.pe/compromiso-empresarial/rse/la-estrategia-de-
sostenibilidad-del-grupo-aje-mira-la-nueva-era-colaborativa-integrando-a-los-
distintos-actores-del-sector-publico-y-privado/
Andara, D. R. (5 de Agosto de 2022). AJE. Obtenido de https://www.ajegroup.com/la-
estrategia-de-aje-es-integrar-la-sostenibilidad-en-toda-nuestra-cadena-de-valor/
García, P. (5 de Abril de 2023). PERÚ SOSTENIBLE. Obtenido de
https://perusostenible.org/entrevista-a-gianina-jimenez/
Landeo, R. (23 de OCTUBRE de 2023). PUCP. Obtenido de
https://revistas.pucp.edu.pe/index.php/360gestion/article/view/27585/25964