Verification Statement for Corporate Greenhouse Gas (GHG) Emissions Inventory Report 2014

Prepared by:

Grupo Financiero Banorte, S.A.B. de C.V.

Verification Report

1. Scope

Asociación de Normalización y Certificación, A.C., (ANCE, A.C.), through its Validation and Verification Body of Emissions Statements and Greenhouse Gases Projects (OVV-GEI), was contracted by Grupo Financiero Banorte, S.A.B. de C.V. in order to verify its Corporate GHG Emissions Inventory Report under a limited level of assurance, considering the operations for the period covered from January 1^st, 2014 to December 31^th, 2014.

The units comprising Grupo Financiero Banorte, S.A.B. de C.V. are listed below:

• Banco Mercantil del Norte, S.A. (Subsidiaries in Banorte - Ixe buildings)
  • - Banco Mercantil del Norte, S.A.
  • - Casa de Bolsa Banorte Ixe, S.A. de C.V.
  • - Arrendadora y Factor Banorte, S.A. de C.V. SOFOM, E.R.
  • - Ixe Servicios, S.A. de C.V.
  • - Solida Administradora de Portafolios, S.A. de C.V. SOFOM, E.R.
  • - Operadora de Fondos Banorte Ixe, S.A. de C.V.
  • - Fundación Banorte, A.B.P.
• Pensiones y Seguros Banorte, S.A. de C.V.
• Inter National Bank (Subsidiaries in Banorte - Ixe buildings)
  • - INB Financial Corp.
  • - Uniteller Financial Services
• Banorte - Ixe Securities
• Afore XXI Banorte
• Almacenadora Banorte, S.A. de C.V.

The information included in this report considers direct emissions (Scope 1) CO², CH⁴ and N²O emissions from the burning of fossil fuels in stationary and mobile sources (natural gas, diesel, LPG and gasoline) as well as fugitive emissions in air conditioners (R-22) as well as indirect emissions (Scope 2) CO² by the consumption of electrical energy from CFE. These emissions, consolidated at the corporate level in tons of CO²e.

Complementary and independent of total emissions declared, this report also includes indirect emissions (Scope 3), for activities related with the following categories: corporate travels, transmission, distribution and consumption of electricity, extraction and production of fuels, waste disposal, use of paper, printing and publications, office machinery use and computer equipment, messaging and telecommunications, transfers in taxi, motorcycle and car, as well as transfers in urban route.

This statement has been prepared for whoever the final interested part may be.

ANCE, A.C. © All rights reserved. This publication and its constituent parts cannot be reproduced or transmitted under any circumstances, including hard copies or electronic, without the consent of ANCE, A.C.
FOROVV-P01.10.06

2. Responsibilities

Grupo Financiero Banorte, S.A.B. de C.V. is responsible for the development of the Corporate GHG Emissions Inventory Report for the operating period from January 1^st, 2014 to December 31^th, 2014 and the activities associated with the design, preparation, data collection, quantification and final emissions reporting, as well as adequate quality maintenance.

The activities associated with the Validation and Verification Body of Emissions Statements and Greenhouse Gases Projects were only to conduct a verification of the Corporate GHG Emissions Inventory Report prepared by Grupo Financiero Banorte, S.A.B. de C.V, under a limited level of assurance, considering the operations for the period covered from January 1^st, 2014 to December 31^th, 2014.

3. Verification Approach

The verification process performed by the Validation and Verification Body of Emissions Statements and Greenhouse Gases Projects was conducted under the approach defined by:

• NMX-SAA-14064-3-IMNC-2007/ISO 14064-3:2006
  Specification with guidance for the validation and verification of greenhouse gas assertions

To provide a limited assurance that CO², CH⁴ y N²O emissions reported in tons of CO²e and all the information integrating this Corporate GHG Emissions Inventory Report were prepared considering the CDP requirements.

In order to obtain the corresponding findings, the verification team conducted the following activities:

• From the Corporate GHG Emissions Inventory Report prepared by Grupo Financiero Banorte, S.A.B. de C.V, for the period of operations covered from January 1^st, 2014 to December 31^th 2014 integrated by six business units (subsidiaries), the four more significant units in terms of emission contributions were identified through a sampling plan, in addition to a risk analysis carried out with the purpose to have a documental inspection of the historical data, as well as of the information included in the report that, given its representativeness, substantially influences the final data reported by the organization.

  It is noteworthy that the business units identified in this stage represent 99.62% of the reported emissions. These are listed hereafter:

  • Banco Mercantil del Norte, S.A. (Subsidiaries in Banorte - Ixe buildings)
    • - Banco Mercantil del Norte, S.A.
    • - Casa de Bolsa Banorte Ixe, S.A de C.V.
    • - Arrendadora y Factor Banorte, S.A. de C.V. SOFOM, ER
    • - Ixe Servicios, S.A. de C.V.
    • - Solida Administradora de Portafolios, S.A. de C.V. SOFOM, ER
    • - Operadora de Fondos Banorte Ixe, S.A. de C.V.
    • - Fundación Banorte, A.B.P.
  • Pensiones y Seguros Banorte, S.A. de C.V.
  • Inter National Bank (Subsidiaries in Banorte - Ixe buildings)
    • - INB Financial Corp.
    • - Uniteller Financial Services
  • Afore XXI Banorte

ANCE, A.C. © All rights reserved. This publication and its constituent parts cannot be reproduced or transmitted under any circumstances, including hard copies or electronic, without the consent of ANCE, A.C.
FOROVV-P01.10.06

• For each unit referred, emissions calculations were replicated in order to verify the consistency of the data and the collected consumption data were also evaluated according to the basis of calculation provided by the organization.

  Additionally, we verified the structure and content of the Corporate GHG Emissions Inventory Report in accordance with the CDP requirements.

  After the documentary verification, a second sampling was applied following the same approach applied in the 1^st phase to select the two most significant business units (subsidiaries) in terms of contribution of emissions to perform an on-site verification, identifying the units listed below, which represent approximately 93.29% percent of reported emissions:

  • Banco Mercantil del Norte, S.A. (Subsidiaries in Banorte - Ixe buildings)
    • - Banco Mercantil del Norte, S.A.
    • - Casa de Bolsa Banorte Ixe, S.A de C.V.
    • - Arrendadora y Factor Banorte, S.A. de C.V. SOFOM, ER
    • - Ixe Servicios, S.A. de C.V.
    • - Solida Administradora de Portafolios, S.A. de C.V. SOFOM, ER
    • - Operadora de Fondos Banorte Ixe, S.A. de C.V.
    • - Fundación Banorte, A.B.P.
  • Pensiones y Seguros Banorte, S.A. de C.V.

The activities associated with on-site verification were performed according to the following steps:

• Evaluation of controls in the information system.
• Evaluation of all data associated to GHG emissions reported.
• Evaluation of all processes of compilation and communication of information, routines for error control, and review activities carried out by the appointed personnel in the organization.

4. Level of assurance and materiality index

The verification opinion expressed in this statement is based on a limited level of assurance taking into consideration a materiality index of 5 percent at the corporate level, according to the recommendation of the NMX-SAA-14064-3-IMNC-2007/ISO 14064-3:2006.

5. Opinion of Asociación de Normalización y Certificación A.C.

Based on the verification approach and the evidence obtained as a result of activities associated with the verification process, ANCE, A.C. did not detect evidence to assume that the information and data reported in the Corporate GHG Emissions Inventory Report prepared by Grupo Financiero Banorte, S.A.B. de C.V., for the period of operations covered from January 1^st, 2014 to December 31^th, 2014 is materially incorrect for the following results:

• Direct Emissions (Scope 1): 4,128.16 tonCO₂e
• Indirect Emissions (Scope 2): 62,761.36 tonCO₂e
• Total emissions: 66,889.53 tonCO₂e
• Indirect Emissions (Scope 3): 34,181.15 tonCO₂e

AANCE, A.C. © All rights reserved. This publication and its constituent parts cannot be reproduced or transmitted under any circumstances, including hard copies or electronic, without the consent of ANCE, A.C.
FOROVV-P01.10.06

6. Recommendations of Asociación de Normalización y Certificación A.C.

Based on the quantification and reporting requirements established by the CDP and the findings identified during the verification process, we recommend:

• Strengthen actions related to error control processes involved in collection, processing and communication of information associated with quantified GHG within the limits of the inventory.
• Generate a backup, additional and independent for the server in that currently are saved the following information: energy consumption, information and documentary evidence on emissions associated with the Corporate GHG Emissions Inventory Report, in order to anticipate any situation that threaten the security of such information; and
• In order to continue generating new practices in the organization, it is suggested to consider the implementation of a GHG Inventory Management System under the guidelines of the NMX-SAA-14064-1 IMNC-2007 standard.

México City, March 23, 2015

Ing. Martín Flores Ruíz
Director of Conformity Assessment

Ing. Gerardo Carmona Vázquez
Manager of Management Systems Certification

On behalf of Asociación de Normalización y Certificación A.C.
Lázaro Cárdenas Avenue 869, Nueva Industrial Vallejo, Zip code 07700, México City
Telephone numbers: +52 (55) 57 47 45 50 Ext. 4671, 4673 y 4675
e-mail: roberto.sosa@ance.org.mx; perla.cuellar@ance.org.mx; jmontoya@ance.org.mx

This document is subject to the terms and conditions described below:

Asociación de Normalización y Certificación A.C., its branches and their respective directors or employees assume no responsibility or be obliged to any person for any loss, damage or expense caused by reliance on the information provided in this document or any other means, unless that person has signed a contract with ANCE, AC for delivery of this information. In which case, any responsibility and obligation applies only in the terms and conditions set forth in the contract.

Due to the level of assurance limited under which executed the verification process that protects this statement, there is the possibility that substantial discrepancies exist which have not been detected. Also, the verification process under this level of assurance, does not have the ability to identify all weaknesses or significant discrepancies existing in so far as these relate to the requirements of the standard, NMX-SAA-14064-3-IMNC-2007/ ISO 14064-3:2006 because the verification was not performed continuously throughout the years reported, being executed from a sampling plan. Any projection of the data to future periods is likely to contain inconsistencies due to the situations expressed above.

ANCE, A.C. © All rights reserved. This publication and its constituent parts cannot be reproduced or transmitted under any circumstances, including hard copies or electronic, without the consent of ANCE, A.C.
FOROVV-P01.10.06