Grupo Financiero Banorte SAB de CV

**PUBLIC AFFAIRS** The understanding and adequate management of public affairs are increasingly necessary for companies. The public agenda is an increasingly decisive factor in business. Our objective is to offer a competitive advantage to the institution to take advantage of opportunities and mitigate risks. The Public Affairs Department is focused on understanding the environment and having key actors set prominent and pertinent positions to **build bridges with relevant actors and promote** **and create programs consistent with the narrative** of the institution. We provide permanent monitoring of the public agenda through our different innovative strategies for senior management and our government and commercial banking. This year we informed the organization promptly by delivering more than 600 analysis reports and alerts on political, social, legislative, and electoral issues. **TRADE ASSOCIATIONS ATTENTION TO** **LEGISLATIVE ISSUES** Since 2021, we have chaired the Mexican Bankers' Association's Communication and Legislative Liaison Commission. The Public Affairs Department followed up on 19 initiatives impacting the banking sector, and our group and over 200 were monitored. On the other hand, through trade associations, we could participate in the legislative process of some of these associations.

Our governance bodies have been buttressed to address the markets' current demands in terms of sustainability, and our commitment to transparency and accountability is key to our strategy. [...] Through Fundación Banorte, we help build strong families with comprehensive program covering housing, women's empowerment, nutrition, education and health, benefiting more than 20,000 people in seven states of Mexico. [...] Our corporate governance system is characterized by transparent and accountable decision making. Our proactive approach to sustainability is supported by the leadership of senior management and the Sustainability Committee, who ensure compliance with our environmental, social and governance policies.

###### Governance bodies

GFNorte holds the firm conviction that effective corporate governance must incorporate climate change, and its risks and opportunities into decision-making by bodies at all levels of the organization. Climate governance in our Group is spearheaded by the Board of Directors, the Risk Policies Committee, the Sustainability Committee, the Climate Change Specialist Team, and, beginning in 2023, by various multidisciplinary work groups called "cells" that focus on execution of all sustainability-related projects. [...] GFNORTE CLIMATE GOVERNANCE STRUCTURE

Board of Directors

Risk Policies Committee

Sustainability Committee

Sustainability Macrocell

Climate Risk Cell

Climate Change Specialist Team [...] ###### Board of Directors

The Board of Directors is the financial group's highest governance body. It is made up of 14 members, 9 of whom are independent. The diversification of members' areas of expertise ensures appropriate alignment with institutional strategies. In order to ensure an open communication channel between the organization and the board, some board members sit on the Risk Policies and Audit and Corporate Practices Committees, where the most relevant ESG aspects are discussed on a monthly basis [...] ###### Risk Policies Committee

The purpose of the Risk Policies Committee (RPC) is to manage the risks to which the institution is exposed and ensure that transactions are conducted in keeping with the desired risk profile, the comprehensive risk management framework, and risk exposure limits approved by the board. The RPC meets monthly. It is made up of regular and alternate board members, the CEO of GFNorte, the Managing Director for Product Development, Adjunct Managing Director for the leasing and factoring subsidiary, Adjunct Managing Director for Markets and Institutional Sales, Adjunct Managing Director of Investment Banking, Managing Director of Risk Management and Credit, Chief Legal Officer, Managing Director for Wholesale Banking, Managing Director of Operations Administration and Finance, Adjunct Managing Director for Corporate Banking and Financial Institutions, Managing Director for Commercial Banking and the Chief Audit Executive. The RPC reports directly to GFNorte's Board of Directors. [...] ###### Sustainability Committee

GFNorte's Sustainability Committee (SC) is in charge of defining the Group's sustainability strategy, aligning it with institutional objectives, and implementing it through environmental, social, and governance (ESG) initiatives led by the strategic departments that are part of this organism. Regarding climate change, the SC has the authority to approve the climate strategy and validate action plans for its execution. It sets goals for reducing GHG emissions and decarbonizing the loan portfolio, incorporates physical and transition risks into the comprehensive risk analysis, and promotes strategic partnerships and employee involvement. The SC reports to the Risk Policies Committee, which in turn reports to the Board of Directors. Additionally, the Committee authorizes and reviews proposals from the Climate Change Specialist Team, the Sustainability Macrocell, and the Climate Risk Cell. [...] ###### Climate Change Specialist Team

The Climate Change Specialist Team (CCST) was created to propose the Group's climate strategy, establish the transition plan, and suggest actions to implement this strategy while complying with global initiatives, primarily the TCFD, TNFD, NZBA, SBTi, CDP, and PCAF. The CCST is comprised of representatives from the Risk and Sustainability Departments, in 2023 particularly, it was strengthened by the addition of specialists in risk, climate change, modeling, and nature. This allowed it to fine-tune aspects such as quantifying the bank's carbon footprint, defining climate goals, modeling scenarios, developing stress tests, estimating the financial impact of climate-related risks, and evaluating tools.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]We regularly participate in Sustainability Committees, working groups and projects focused on climate change through the Bank of Mexico (BM), the Mexico Banks Association (ABM), the Mexican Stock Exchange (BMV), the Green Financial Advisory Council (CCFV) among others. These organizations are responsible for permeating global trends in the matter and consulting with member banks on the viability of initiatives to act in accordance with institutional plans and strategies. Additionally, as part of our adherence to initiatives such as the Principles for Responsible Banking, the Equator Principles, the Principles for Responsible Investment, TCFD and the NZBA, we continuously train through webinars. In all cases, the process we follow includes:
1. The review of initiatives according to their importance and contribution to our sustainability and climate strategies.
2. The evaluation of needs in terms of resources, time, collaborators, budget
3. The presentation of the initiatives to our executive management and, if necessary, the senior management for validation.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes