Grupo Financiero BANORTE - 2017 Annual Report

DISCLOSURE STANDARDS	PAGE pdf	DESCRIPTION	2017 CONTENTS	SUSTAINABLE DEVELOPMENT GOALS (SDG)
102-1	7	Name of the organization	We Are Banorte
102-2	7	Activities, brands, products and services	We Are Banorte
102-3	135	Location of headquarters	Contact
102-4	10	Location of operations	We Are Banorte
102-5	7, 18, 135	Ownership and legal form	We Are Banorte Financial Capital Contact
102-6	7, 10	Markets served	We Are Banorte
102-7	7, 37	Scale of the organization	We Are Banorte Financial Capital Human Capital
102-8	37	Information on employees and other workers	Human Capital Banorte will not report all the 102-8 indicator requirements. The company’s strategy does not manage information based on the GRI Standards methodology; the information reported is based on the materiality of Banorte.	Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all.
102-9	51	Supply chain	Social Capital
102-10	3, 5	Significant changes to the organization and its supply chain	Message from the Chairman of the Board of Directors Message from the CEO
102-11	89	Precautionary Principle or approach	Leaders in Sustainability In 2017 we signed the Principles for Responsible Investment to address environmental, social and governance risks in our investment portfolios. There were no studies on risks and environmental impacts for new investments or products; however, measures were taken in the construction of new branches to mitigate the impact to the environment such as: Separation of solid waste Use of treated water Reuse of water Rainwater catchment Use of ecological toilets Use of materials made from recycled substances Use of lead-free vinyl paint Lighting and air-conditioning control systems. Installation of energy efficient lighting.
102-12	69, 89, 90, 94, 95	External Initiatives	Natural Capital Leaders in Sustainability
102-13	-	Membership of associations	GFNorte has an active presence in different associations, through their respective business units: Association of Banks of Mexico Mexican Association of Afores Mexican Association of Insurance Institutions Mexican Association of Financial Leasing Companies Credit and Factoring AFORE XXI Banorte is a member of: National Commission for the Retirement Savings System Mexican Association for Human Resources Management Mexican Association of Afores
102-14	3, 5, 85	Statement from senior decision-maker	Message from the Chairman of the Board of Directors Message from the CEO Leaders in Sustainability
102-15	3, 5, 14, 72, 85	Key impacts, risks, and opportunities	Message from the Chairman of the Board of Directors Message from the CEO How We Create Value Corporate Governance Sustainable Management
102-16	14, 72	Values, principles, standards, and norms of behavior	How We Create Value To learn more about our Code of Conduct, visit: https://www.banorte.com/codigodeconducta	Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
102-17	-	Mechanisms for advice and concerns about ethics	All employees have access to Ethic Points, an internal and external system to report irregularities that provides transparency on issues of ethics and legality. To learn more about our Code of Conduct, visit: https://www.banorte.com/codigodeconducta	Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
102-18	72	Governance structure	Corporate Governance The Board of Directors is the principal governing body of GFNorte, as well as the entity that decides the necessary actions to ensure a sound corporate governance, thus safeguarding the interests of shareholders, customers, employees, suppliers and the communities it serves. GFNorte has established committees to support the Board of Directors: Audit and Corporate Practices Committee, the Risk Policy Committee, the Human Resources Committee and the Nominating Committee, which include independent members of the Board of Directors and, in some of them, officers of the institution, in accordance with the applicable regulations.
102-19	85	Delegating authority	Leaders in Sustainability
102-20	72, 85	Executive-level responsibility for economic, environmental, and social topics	Leaders in Sustainability
102-21	85	Connsulting stakeholders on economic, environmental, and social topics	Leaders in Sustainability Each Department head leads the relationship and dialogue with the different stakeholders, as often as the natural relationship requires. In case of a topic that, by its importance, should be submitted to the Board of Directors, this is put to consideration of the same.	Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
102-22	73	Composition of the highest governance body and its committees	Corporate Governance	Objective 5.- To achieve gender equality and the empowerment of all women and girls. Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
102-23	-	Chair of the highest governance body	Mr. Carlos Hank Gonzalez does not occupy any position as a GFNorte officer with operational responsibilities.	Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
102-24	-	Nominating and selecting the highest governance body	For more information, go to: https://www.banorte.com/gobiernocorporativo	Objective 5.- To achieve gender equality and the empowerment of all women and girls. Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
102-25	-	Conflicts of interest	Extract from the Code of Conduct: https://www.banorte.com/codigodeconducta “The Board members, officers and employees should at all times avoid actions that counteract or seem to counteract the legitimate interest of GFNorte. They should be especially careful in assessing the probability of a conflict of interest in business or personal relationships with customers, suppliers, associates, employees or competitors (including Board Members, officers and employees) of GFNorte. Any GFNorte Board member, officer or employee who has direct or indirect knowledge of an irregular act, conflict of interest or non-compliance with regulations that may constitute or come to mean damage or destruction to GFNorte, or constitute non-compliance with any of the principles of this Code of Conduct, must report it with discretion, to the Deputy General Comptroller, and/or to the Executive Management’s of Audit of banking and subsidiaries operations or through the Ethic Points system and /or electronic channels established in the institution.” Rules were established to facilitate a better understanding of the objective, scope, assessment and mandatory compliance that can be found at: https://www.banorte.com/ gobiernocorporativo In addition to the foregoing, and in accordance with Articles 64, 64 Bis and 64 Bis 1 and the General Rules for Financial Groups and their financial entities, financial institutions must avoid conflicts of interest between them and their respective business units. The Committees of Audit and Corporate Practices and Audit of the financial institutions, where appropriate, shall implement a system to prevent conflicts of interest and shall ensure at all times that its operation is consistent with the strategies and goals of these financial institutions, taking preventive and corrective measures to remedy any deficiency detected within a reasonable time, addressing the characteristics of such measures. GFNorte decides whether to communicate conflicts of interest; they are dealt with internally.	Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
102-26	72	Role of highest governance body in setting purpose, values, and strategy	Corporate Governance The functions of the Board of Directors seek to promote social responsibility through changes in the mission, vision, values, goals, strategies, policies and objectives of the institution. The above is reflected in GFNorte’s Code of Conduct, same that was approved by the Board of Directors and which can be found at: https://www.banorte.com/codigodeconducta
102-27	85	Collective knowledge of highest governance body	Leaders in Sustainability
102-28	72	Evaluating the highest governance body’s performance	Corporate Governance The evaluation process is internal and confidential.
102-29	85	Identifying and managing economic, environmental, and social impacts	Leaders in Sustainability One of the functions of the Board of Directors is to ensure the establishment of mechanisms for the identification, analysis, management, control and disclosure of risks and operational risk related to the business. To fulfill this function, the Board of Directors relies on the Audit and Corporate Practices and Risk Policy Committees; these in turn verify that the mechanisms for the control of risks are established and review of operations is carried out. In turn, the CEO, through a quarterly report, reports the situation of each of the identified risks to the Board of Directors. On an ongoing basis, the Board of Directors receives relevant information on corporate governance, economic, political and social issues, and other relevant issues that enable them to increase their knowledge and keep updated on current events.	Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
102-30	85	Effectiveness of risk management processes	Leaders in Sustainability One of the functions of the Board of Directors is to ensure the establishment of mechanisms for the identification, analysis, management, control and disclosure of risks and operational risk related to the business. To fulfill this function, the Board of Directors relies on the Audit and Corporate Practices and Risk Policy Committees; these in turn verify that the mechanisms for the control of risks are established and review of operations is carried out. In turn, the CEO, through a quarterly report, reports the situation of each of the identified risks to the Board of Directors. On an ongoing basis, the Board of Directors receives relevant information on corporate governance, economic, political and social issues, and other relevant issues that enable them to increase their knowledge and keep updated on current events.
102-31	-	Review of economic, environmental, and social topics	During the various sessions of the Board of Directors, subject to availability in the agenda, a space is assigned for the review and management of economic, social and environmental impacts, risks and opportunities.	Objective 4.- To ensure an inclusive, equitable and quality education and promote opportunities for learning throughout life for all.
102-32	-	Highest governance body’s role in sustainability reporting	The senior executives of Investor Relations approve the 2017 Annual Report of Grupo Financiero Banorte.
102-33	3, 5	Communicating critical concerns	Message from the Chairman of the Board of Directors Message from the CEO Grupo Financiero Banorte SAB de CV is a financial institution listed in the stock exhange, traded in the Bolsa Mexicana de Valores, as well as in various international exchanges. In this sense, shareholders or interested third parties should be notified in the case of a critical event. GFNorte has established a procedure to notify these institutions of relevant events related to the same. For more information see: https://www.banorte.com/gobiernocorporativo
102-34	-	Nature and total number of critical concerns	The Board of Directors establishes the general strategies of the financial group, as well as general strategies for managing, conducting and executing the business of the institution, its financial entities and, if the case, subcontrollers; as well as monitor, through the Corporate Practices Committee, the management and conduct of the institute, its financial entities, and if the case, its subcontrollers which exercise control over the institute, considering the relevance that the latter has in the legal, administrative and financial situation of the financial group as a whole, as well as the performance of relevant managers, under the terms established in Articles 56 to 58 of the Act to Regulate Financial Groups. The Board of Directors, in exercising its powers, created the following support committees that allow the analysis of those critical issues that will be later on be presented to the Board of Directors: Audit and Corporate Practices Committee Risk Policy Committee Human Resources Committee Nominating Committee These committees are comprised of members of the Board of Directors, with the participation of officials of the institution in some of them.
102-35	-	Remuneration policies	In accordance with Article 44 of the Articles of Association, the Nominating Committee shall submit, for approval by the General Ordinary General Shareholders’ Assembly, together with the proposal for appointment of members of the Board of Directors, the proposal for the corresponding remuneration in accordance with the position to be filled.
102-36	72	Process for determining remunerations	Corporate Governance Remunerations received by members of the Board of Directors of GFNorte are established by the Shareholders’ Assembly in its ordinary sessions, which usually takes place each year in April.
102-37	-	Stakeholders’ involvement in remuneration	The Nominating Committee, within its powers, hired a firm to conduct a study of the remuneration paid to board members at national and international levels, as well as within the financial industry, to determine the remuneration proposal for members of the GFNorte Board of Directors, which was submitted to the Ordinary General Shareholders’ Assembly for approval.
102-38		Annual total compensation ratio	The average of the rest of personnel is 8.21 times the base salary. The methodology consists in grouping together the different managerial levels to obtain an average salary, on the one hand, and grouping together the different levels of the rest of personnel to obtain that average salary. Then, the executive salary average was divided by the personnel salary average to arrive at the indicator.
102-39		Percentage increase in annual total compensation ratio	In 2017 remunerations increased by 4.2% in the categories for: Upper management Middle management Employees
102-40	86, 87	Stakeholder List	Stakeholders
102-41	43	Collective bargaining agreements	Human Capital	Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all.
102-42	87	Identifying and selecting stakeholders	Leaders in Sustainability As a result of the 2016 materiality study, internal and external stakeholders were identified based on the social, ethical and environmental agenda of GFNorte.
102-43	86,87	Approach to stakeholder engagement	Leaders in Sustainability
102-44	85	Key topics and concerns raised	Leaders in Sustainability Internal and external material subjects based on the social, ethical and environmental agenda of GFNorte were identified from the 2016 materiality study.
102-45	7	Entities included in the consolidated financial statements	We Are Banorte
102-46	85, 87	Defining report content and topic Boundaries	Leaders in Sustainability Materiality and sustainability context are found in our sustainability model. Inclusion of stakeholders: through this report we respond to material topics to every stakeholder group. Extensiveness: the scope of this report includes all of GFNorte.
102-47	85, 86, 88	List of material topics	Leaders in Sustainability
102-48	7, 37, 63, 65, 66, 67	Restatements of information	Somos Banorte In 2017, the divestiture of Inter National Bank was completed, which required the reexpression of information in the following sections: Financial Capital Human Capital Natural Capital
102-49	85, 88	Changes in reporting	Leaders in Sustainability
102-50	-	Reporting period	This 2017 Annual Report of Grupo Financiero Banorte includes the period from January 1st to December 31^st, 2017.
102-51	-	Date of most recent report	The edition immediately previous to the present edition was the 2016 Annual Report of Grupo Financiero Banorte.
102-52	-	Reporting cycle	Annually
102-53	136	Contact point for questions regarding the report	Contact
102-54	135	Claims of reporting in accordance with the GRI Standards	We adhere to the comprehensive compliance option, reporting the contents of the Universal Standard 102 (general content), as well as those contained in the Topic-specific Standards (200, 300 and 400 series) related to those topics considered material. We also respond in kind to the contents of the GRI supplement of the Financial Sector. In addition, we are committed to continue working on strengthening compliance with report preparation principles, continue with the materiality exercise and follow up on the material topics during the course of the year.
102-55	97	Gri Content Index	Gri Content Index
102-56	133	External assurance	Attached is a letter from the independent assurance. To learn more about our external assurance process, refer to the statement.
103-1	18, 26, 37, 85	Explanation of the material topic and its Boundary	Financial Capital Human Capital Infrastructure and Technology Capital Leaders in Sustainability Through the Specialized Management of Sustainability and Responsible Investment, establish structures, principles and guidelines for the planning, organization, execution, monitoring, control and continuous improvement of social initiatives were established which seek to achieve sustainable development objectives in which various stakeholders actively participate. For this reason, our social and environmental policies form part of established corporate regulations for the ethical, equitable and impartial acting in sustainability issues to inspire the confidence of stakeholders involved with Grupo Financiero Banorte and its operations, thus improving business performance, products, services and positioning the company as an institution committed to Mexico.
103-2	26, 38, 85	The management approach and its components	Human Capital Infrastructure and Technology Capital Leaders in Sustainability
103-3	18, 26, 37, 85	Evaluation of the management approach	At GFNorte we aim to publicize initiatives that respond to our material issues, as well as our assessment of management, following the International Integrated Reporting Council, IIRC guidelines. These initiatives can be seen in the following sections of the report Financial Capital Human Capital Natural Capital Social Capital Infrastructure and Technology Capital Intellectual Capital
201-1	18, 19	Direct economic value generated and distributed	Financial Capital The retained economic value is not material to this GFNorte report. For more information, refer to the 2017 audited financial statements at: https://www.banorte.com/estadosfinancieros2017	Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all. Objective 9.- To build a resilient infrastructure, promote inclusive and sustainable industrialization and encourage innovation.
201-3	38, 41	Defined benefit plan obligations and other retirement plans	Human Capital
201-4		Financial assistance received from government	In 2017 Banorte did not receive any aid from the Government in regards to rebates and tax credits, grants, royalties, i.e. aid related to tax exemption.
202-1	-	Ratios of standard entry level wage by gender compared to local minimum wage	Human Capital In 2017, our employees received salaries that were 50% higher than the minimum wage established in Mexico City.	Objective 1.- To end poverty in all its forms throughout the world. Objective 5.- To achieve gender equality and the empowerment of all women and girls. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all.
203-1	10, 11, 49, 50, 52	Infrastructure investments and services supported	We Are Banorte Social Capital	Objective 5.-To achieve gender equality and the empowerment of all women and girls. Objective 7.- To ensure access to affordable, safe, sustainable and modern energy for all. Objective 9.- To build a resilient infrastructure, promote inclusive and sustainable industrialization and encourage innovation. Objective 11.- Ensure that cities and human settlements are inclusive, safe, resilient and sustainable.
203-2	3, 5	Significant indirect economic impacts	Message from the Chairman of the Board of Directors Message from the CEO According to the National Banking and Securities Commission, GFNorte is an institution of systemic importance for the stability of the Mexican financial system. For more details, see: https://www.gob.mx/cnbv/acciones-y-programas/bancos-de-importancia-sistemica	Objective 1.- To end poverty in all its forms throughout the world. Objective 3.- To ensure a healthy life and promote the well being for people of all ages. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all. Objective 10.- To reduce inequality within and between countries. Objective 12.- To ensure sustainable consumption and production modalities. Objetivo 17.- To strengthen the means to implement and revitalize global alliances for sustainable development.
205-1	-	Operations assessed for risks related to corruption	In GFNorte, we have the anonymous reporting system, Ethic Points, which enables the financial group to receive complaints from any of its 16 units: GFNorte, NorthernTerritorios, Southern Mexico, Northern Mexico, West, Central, Northwest, Peninsular, South, Consumer, Business, Banorte USA, Banorte - Ixe Securities, Casa de Bolsa, Warehouse, Leasing, Factoring, Insurance, Annuities, Afore, Assistance and Solida. Allegations are classified by topics related to Internal Control or Human Resources.
205-2	-	Communication and training about anti-corruption policies and procedures	In 2017, we updated the Prevention of Money Laundering clause in our Code of Conduct, in order to strengthen our commitment against financing and investing in illicit activities. This update was communicated to all our employees through internal mail and the intranet, who confirmed their acknowledgement through their electronic signatures. In addition, we have a strong policy framework and a Manual of Prevention of Money Laundering and Financing of Terrorism in our institutional regulations portal. We also provide online training relating to the prevention of money laundering in which 20,310 employees were trained, representing 68% on issues of prevention of money laundering in GFnorte. (Governing entities are not included). We have a reporting system called Ethic Points where directors, officers and employees who have direct or indirect knowledge of an act of non-compliance to regulations, can report it via our intranet or by logging into the supplier’s web site of the system on the internet. Reports are reviewed depending on the nature of the information by the areas of Control, Human Resources or Audit, with the latter being the tool’s administrator. Every six months the audit area informs the Audit Committee or the reports received and the actions taken to address them. The Ethic Points system aims to ensure that users can report illegal or unethical activities, in a secure and honest manner, while at the same time maintaining anonymity and confidentiality. Our Ethic Points provider is Safe Harbor certified through the United States Department of Commerce, for having security measures to meet European Union privacy initiatives and other privacy regulations around the world. In general, the resolutions implemented since 2008 until 2017 for cases attended through the Ethic Points complaints system, from both Human Resources and Internal Control were: No action taken due to lack of fundamental information: 52.9% Relocation of the condemned: 3.2% Reprimand of condemnet: 23.7% Suspension without pay: 3.1% Termination of employment: 11.6% Others: 5.4% In 2017, 276 complaints were received, 79% related to Human Resources and 21% to Internal Control issues. 233 complaints were resolved, that is, 84% of the cases received.
205-3	-	Confirmed incidents of corruption and actions taken	In 2017 no cases of corruption were reported.
301-1	67	Materials used by weight or volume	Natural Capital
302-1	63	Energy consumption within the Organization	Natural Capital	Objective 7.- To ensure access to affordable, safe, sustainable and modern energy for all. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all. Objective 12.- To ensure sustainable consumption and production modalities. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate).
302-3	63	Energy intensity	Natural Capital	Objective 7.- To ensure access to affordable, safe, sustainable and modern energy for all. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all. Objective 12.- To ensure sustainable consumption and production modalities. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate).
302-4	63, 64	Reduction of energy consumption	Natural Capital	Objective 7.- To ensure access to affordable, safe, sustainable and modern energy for all. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all. Objective 12.- To ensure sustainable consumption and production modalities. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate).
303-1	68	Water withdrawal by source	Natural Capital	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 12.- To ensure sustainable consumption and production modalities. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate). Objective 14.- To conserve the oceans, seas and marine resources to use in a sustainable manner for sustainable development. Objective 15.- To protect, restore and promote sustainable use of terrestrial ecosystems, carry out a sustainable forest management, combate desertification, stop and reverse the degradation of land and halt the loss of biological diversity.
304-1	69	Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas	Natural Capital	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 12.- To ensure sustainable consumption and production modalities. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate). Objective 14.- To conserve the oceans, seas and marine resources to use in a sustainable manner for sustainable development. Objective 15.- To protect, restore and promote sustainable use of terrestrial ecosystems, carry out a sustainable forest management, combate desertification, stop and reverse the degradation of land and halt the loss of biological diversity.
304-4	-	IUCN Red List species and national conservation list species with habitats in areas affected by operations	Among the 72 species of Mexican plants that grow in our green roof garden, 18 of them are listed in the NOM-059-SEMARNAT-2010 environmental protection standard: Agave titanota, Agave victoriae-reginae, Ariocarpus kotschoubeyanus, Ariocarpus retusus, Astrophytum capricorne, Astrophytum myriostigma, Astrophytum ornatum, Cephalocereus senilis, Coryphantha elephantidens, Echeveria elegans, Echeveria laui, Echinocactus grusonii, Echinocactus platyacanthus, Ferocactus histrix, Graptopetalum macdougallii, Mammillaria bocasana, Mammillaria plumosa and Thelocactus bicolor.	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 12.- To ensure sustainable consumption and production modalities. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate). Objective 14.- To conserve the oceans, seas and marine resources to use in a sustainable manner for sustainable development. Objective 15.- To protect, restore and promote sustainable use of terrestrial ecosystems, carry out a sustainable forest management, combate desertification, stop and reverse the degradation of land and halt the loss of biological diversity.
305-1	64, 65	Direct (Scope 1) GHG emissions	Natural Capital	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate). Objective 14.- To conserve the oceans, seas and marine resources to use in a sustainable manner for sustainable development. Objective 15.- To protect, restore and promote sustainable use of terrestrial ecosystems, carry out a sustainable forest management, combate desertification, stop and reverse the degradation of land and halt the loss of biological diversity.
305-2	64, 65	Energy indirect (Scope 2) GHG emissions	Natural Capital	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate). Objective 14.- To conserve the oceans, seas and marine resources to use in a sustainable manner for sustainable development. Objective 15.- To protect, restore and promote sustainable use of terrestrial ecosystems, carry out a sustainable forest management, combate desertification, stop and reverse the degradation of land and halt the loss of biological diversity.
305-3	64, 66, 67	Other indirect (Scope 3) GHG emissions	Natural Capital	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 12.- To ensure sustainable consumption and production modalities. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate).
305-4	64, 65	GHG emissions intensity	Natural Capital	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 12.- To ensure sustainable consumption and production modalities. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate).
305-5	64	Reduction of GHG emissions	Natural Capital	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 6.- To ensure the availability of water, its sustainable management and sanitation for all. Objective 12.- To ensure sustainable consumption and production modalities. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate). Objective 14.- To conserve the oceans, seas and marine resources to use in a sustainable manner for sustainable development. Objective 15.- To protect, restore and promote sustainable use of terrestrial ecosystems, carry out a sustainable forest management, combate desertification, stop and reverse the degradation of land and halt the loss of biological diversity.
305-6	67	Emissions of ozone-depleting substances (ODS)	Natural Capital
306-2	68	Waste by type and disposal method	Natural Capital
307-1	-	Non-compliance with environmental laws and regulations	In 2017, GFNorte did not receive any environmental fines.	Objective 11.- Ensure that cities and human settlements are inclusive, safe, resilient and sustainable. Objective 12.- To ensure sustainable consumption and production modalities. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate).
308-1	51	New suppliers that were screened using environmental criteria	We have no investment agreements. We have 547 contracts with suppliers, who declared their acknowledgement of and commitment to adhering to the Global Compact Principles, which represents 41.9%, (which does not mean that they adhere to it).	Objective 17.- To strengthen the means to implement and revitalize global alliances for sustainable development.
401-1	37, 43	New employee hires and employee turnover	Human Capital	Objective 5.- To achieve gender equality and the empowerment of all women and girls. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all.
401-2	38, 41	Benefits provided to full-time employees that are not provided to temporary or part-time employees	Human Capital	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all.
403-1	42	Workers representation in formal joint management–worker health and safety committees	2017, we trained 3,587 employees, representing 19% of full-time employees, who are Brigadiers in GFNorte buildings and branches in topics such as: First aid Evacuation and crisis management Control and fire fighting Heimlich Maneuvers	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all.
403-2	-	Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities	Rate of absenteeism of male and female employees: corresponds to 0.018 days in 2017. Rate of lost days of male and female employees: corresponds to 0.002 days in 2017.	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all.
404-1	39, 40	Average hours of training per year per employee	Human Capital	Objective 4.- To ensure an inclusive, equitable and quality education and promote opportunities for learning throughout life for all. Objective 5.- To achieve gender equality and the empowerment of all women and girls. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all.
404-2	39	Programs for upgrading employee skills and transition assistance programs	Human Capital On our intranet, we have Defined Contribution Pension and Defined Benefit Pension plans which our employees have access to, to manage their retirement plan.	Objective 4.- To ensure an inclusive, equitable and quality education and promote opportunities for learning throughout life for all. Objective 5.- To achieve gender equality and the empowerment of all women and girls. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all.
404-3	-	Percentage of employees receiving regular performance and career development reviews	19,658 employees (9,846 or 50% of men and 9,812 or 50% of women) received periodic evalutation of ther performance. Technical training for professional development and strengthening of skills is considered.	Objective 5.- To achieve gender equality and the empowerment of all women and girls. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all.
405-1	37, 72, 73	Diversity of governance bodies and employees	Human Capital Corporate Governance	Objective 5.- To achieve gender equality and the empowerment of all women and girls. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all.
405-2	38, 39	Ratio of basic salary and remuneration of women to men	Human Capital	Objective 5.- To achieve gender equality and the empowerment of all women and girls. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all.
406-1	-	Incidents of discrimination and corrective actions taken	In 2017, 67 cases were recorded and analyzed; complaints received were related to labor or sexual harassment and 47% had elements to take actions such as reprimands and dismissal.	Objective 5.- To achieve gender equality and the empowerment of all women and girls. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all. Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
410-1	-	Security personnel trained in human rights policies or procedures	In 2017, 50% of security employees were trained in the field of human rights.	Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
411-1	-	Incidents of violations involving rights of indigenous peoples	No complaints of this type were registered in 2017.	Objective 10.- To reduce inequality within and between countries. Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
412-2	-	Employee training on human rights policies or procedures	Since 2014, 40,681 hours of training activities in the field of human rights were imparted, representing 83% of banking sector employees.	Objective 4.- To ensure an inclusive, equitable and quality education and promote opportunities for learning throughout life for all. Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
412-3	-	Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening	We have no investment agreements that are subject to the evaluation of human rights criteria. In terms of our value chain, we have 547 contracts with suppliers, in which they acknowledge their commitment and adherence to the Global Compact Principles (which does not mean that they adhere to them).	Objective 17.- To strengthen the means to implement and revitalize global alliances for sustainable development.
413-2	-	Operations with significant actual and potential negative impacts on local communities	No complaints of this type were registered in 2017.	Objective 11.- Ensure that cities and human settlements are inclusive, safe, resilient and sustainable. Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
414-1	-	New suppliers that were screened using social criteria	We have no test procedure based on social criteria; however, since the second half of 2012, we encourage our suppliers to maintain healthy human rights, labor, environmental and anti-corruption practices, with the incorporation of a clause in new and renewed contracts, by which their commitment to comply with the Global Compact Principles is declared (without signifying their adherence).	Objective 17.- To strengthen the means to implement and revitalize global alliances for sustainable development.
417-1	26,27,28	Requirements for product and service information and labeling	Infrastructure and Technology Capital At Grupo Financiero Banorte S.A.B. de C.V. and its financial entities, we are a financial services company who protects the personal data of our sustomers in accordance with the Federal Law for the Protection of Personal Data Held by Individuals and the regulations to safeguard the integrity, privacy and protection of personal data. For more information, go to: www.banorte.com/inicio/Banorteinforma/Avisodeprivacidad
417-2	-	Incidents of non-compliance concerning product and service information and labeling	During the year, 128 cases were recorded for a total of Ps 7.7 million, paid in fines or municipal penalties for updating properties awarded to the Bank. Fines from SAT, INFONAVIT, CNBV, CONDUSEF and the Bank of Mexico.	Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
417-3	-	Incidents of non-compliance concerning marketing communications	SEGOB presented three fines for a total of Ps 69,000.	Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
418-1	-	Substantiated complaints concerning breaches of customer privacy and losses of customer data	In 2017, four complaints were received for alleged information leaks; three were resolved against the customer’s and/or user ‘s favor and one was resolved in favor of the user.	Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
419-1	-	Non-compliance with laws and regulations in the social and economic area	During the year, 128 cases were recorded for a total of Ps 7.7 million, paid in fines or municipal penalties for updating properties awarded to the Bank. Fines from SAT, INFONAVIT, CNBV, CONDUSEF and the Bank of Mexico.	Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
FS-1	63	Policies with specific environmental and social components applied to business lines	Natural Capital For more information on our social and environmental policy see: https://www.banorte.com/sustentabilidad/nuestro enfoque/nuestraspoliticas As a result of the restructuring of the area of Sustainability, the issue topic of policies was detained with regards to the regulatory process. In 2017, the only progress was the presentation of the objective of these policies and drafts of the same to the new department, which approved to continue in 2018.	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 5.- To achieve gender equality and the empowerment of all women and girls. Objective 6.- To ensure the availability of water, its sustainable management and sanitation for all. Objective 7.- To ensure access to affordable, safe, sustainable and modern energy for all. Objective 9.- To build a resilient infrastructure, promote inclusive and sustainable industrialization and encourage innovation. Objective 10.- To reduce inequality within and between countries. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate). Objective 14.- To conserve the oceans, seas and marine resources to use in a sustainable manner for sustainable development. Objective 15.- To protect, restore and promote sustainable use of terrestrial ecosystems, carry out a sustainable forest management, combate desertification, stop and reverse the degradation of land and halt the loss of biological diversity.
FS-2	89	Procedures for the evaluation and selection of environmental and social risks in lines of business	Leaders in Sustainability	Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 5.- To achieve gender equality and the empowerment of all women and girls. Objective 6.- To ensure the availability of water, its sustainable management and sanitation for all. Objective 7.- To ensure access to affordable, safe, sustainable and modern energy for all. Objective 9.- To build a resilient infrastructure, promote inclusive and sustainable industrialization and encourage innovation. Objective 10.- To reduce inequality within and between countries. Objective 13.- To adopt urgent measures to combat climate change and its effects (recognizing that the United Nations Framework Convention on Climate Change is the main international intergovernmental forum to negotiate global response to change climate). Objective 14.- To conserve the oceans, seas and marine resources to use in a sustainable manner for sustainable development. Objective 15.- To protect, restore and promote sustainable use of terrestrial ecosystems, carry out a sustainable forest management, combate desertification, stop and reverse the degradation of land and halt the loss of biological diversity.
FS-3	89	Processes to monitor implementation and compliance with environmental and social requirements included in agreements or transactions with customers	Leaders in Sustainability	Objective 10.- To reduce inequality within and between countries. Objective 17.- To strengthen the means to implement and revitalize global alliances for sustainable development.
FS-4	92	Processes to improve personnel competence in implementing environmental and social policies and procedures applicable to lines of business	Grupo Financiero Banorte has an area of Sustainability and Responsible Investment with an experienced staff, who are responsible for training teams distributed across the territories in which we operate, and whose activities are related to the granting of credit. For more information see: https://www.banorte.com/sustentabilidad	Objective 4.- To ensure an inclusive, equitable and quality education and promote opportunities for learning throughout life for all. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all. Objective 10.- To reduce inequality within and between countries.
FS-5	89, 90, 91	Interactions with customers in terms of environmental and social opportunities and risks	Leaders in Sustainability	Objective 10.- To reduce inequality within and between countries. Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels. Objective 17.- To strengthen the means to implement and revitalize global alliances for sustainable development.
FS-8	93	Monetary value of products and services designed to deliver a specific environmental benefit for each line of business by objectives	Leaders in Sustainability	Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all. Objective 17.- To strengthen the means to implement and revitalize global alliances for sustainable development.
FS-10	91	Percentage and number of companies in the institution’s portfolio with which interactions on environmental or social issues have been carried out	Leaders in Sustainability	Objective 10.- To reduce inequality within and between countries. Objective 17.- To strengthen the means to implement and revitalize global alliances for sustainable development.
FS-11	91	Percentage of assets subject to social or environmental review, positive as well as negative	Leaders in Sustainability	Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all. Objective 10.- To reduce inequality within and between countries. Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels. Objective 17.- To strengthen the means to implement and revitalize global alliances for sustainable development.
FS-13	50	Points of access in scarcely populated or economically disadvantaged areas described by type	Social Capital	Objective 1.- To end poverty in all its forms throughout the world. Objective 3.- To ensure a healthy life and promote the well being of people of all ages. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all. Objective 10.- To reduce inequality within and between countries. Objective 16.- To promote peaceful and inclusive societies for sustainable development, facilitating access to justice for all and create effective, accountable and inclusive institutions at all levels.
FS-14	50	Initiatives to improve access to financial services for the disadvantaged	Social Capital	Objective 4.- To ensure an inclusive, equitable and quality education and promote opportunities for learning throughout life for all. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all. Objective 10.- To reduce inequality within and between countries.
FS-15	-	Policies for the design and sale of financial products and services in a fair and reasonable manner	GFNorte has a policy for the evaluation and approval of initiatives and projects for new products and services.	Objective 10.- To reduce inequality within and between countries.
FS-16	49	Initiatives to improve financial literacy and education by type of beneficiary	Social Capital	Objective 4.- To ensure an inclusive, equitable and quality education and promote opportunities for learning throughout life for all. Objective 8.- To promote sustainable and inclusive economic growth, full and productive employment and decent work for all. Objective 10.- To reduce inequality within and between countries.