Climate Change Data

Environmental Metrics

ESG Focus Areas

• Clean Transportation
• Energy Efficiency
• Renewable Energy
• Sustainable Waste Management
• Access to Essential Services
• Small, Medium and Micro Enterprises (MSMEs)
• Women’s Empowerment and Socioeconomic Progress

Environmental Achievements

• Not disclosed

Social Achievements

• 13,336 credits amounting to MXN 22.3 billion directed towards sector-based programs to assist MSMEs in 2020
• 478 loans amounting to MXN 653 million through its Support for Women Entrepreneurs programme
• 388 loans amounting to MXN 162 million through its Young Entrepreneurs programme

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Risks associated with controversial companies and/or projects they may finance
• Possibility of financing activities that have negative social or environmental impacts from large-scale infrastructure development projects, worker health and safety, impacts on local communities

Mitigation Strategies

• NAFIN’s Environmental and Social Management Systems Coordination Unit oversees compliance of beneficiaries with environmental and social obligations.
• Implementation of the Bank’s Social and Environmental Risk Management Systems
• Voluntary adoption of the Equator Principles and the International Finance Corporation (IFC) Performance Standards
• Code of Conduct
• Occupational Health and Safety guidelines (Condiciones Generales de Trabajo)
• Responsible Lending Policy (Reglas de Operación del Programa de Crédito de Primer Piso)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, UN Sustainable Development Goals (SDGs)

Certifications: Null

Third-party Assurance: Sustainalytics

UN Sustainable Development Goals

• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 11

Investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Social

Social Achievements

• MXN 9,304,482,800.00 Social Bond proceeds were fully allocated as of December 31st, 2022 to refinance eligible expenses incurred during 2021. This supported 73 MSMEs, 231,258 jobs, and created 288 new jobs. Of these, 618 credits (MXN 6,995,145,205.39) were disbursed in municipalities highly vulnerable to climate change, supporting 23 MSMEs, 158,579 jobs, and creating 217 new jobs.

Climate Goals & Targets

Environmental Challenges

• Low participation of MSMEs in domestic value chains (4.6% of total value of goods).
• Lag in productive competitiveness due to low technology adoption, training, and management skills.
• Low access to funding due to insufficient access channels, low financial education, high informality, high risk aversion from financial institutions, high funding costs, and lack of trust in financial institutions.

Mitigation Strategies

• NAFIN contributes with 30% of commercial credit and, through guarantees, approximately 65% of the loans granted to MSMEs. NAFIN’s strategy seeks to serve Mexican enterprises based on a sectorial model according to priority sectors and regional vocations of each State, aiming to strengthen competitive areas and enhance financial inclusion.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ICMA Sustainability Bond Guidelines (SBG) 2021, Green Bond Principles (GBP) 2021, Social Bond Principles (SBP) 2021