Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Science Based Target initiative (SBTi) validated GFNorte’s targets, making it the first financial group in Latin America to achieve this milestone.

Social Achievements

• Support programs deployed for customers affected by hurricanes, including postponing customer payments.

Governance Achievements

• Incorporated climate risks into the organization’s overall risk management. Created a Climate Change Specialist Team (CCST) and multidisciplinary work groups called “cells” to focus on sustainability projects. Approved risk policies to advance Banorte’s Decarbonization Policy for the portfolio.

Climate Goals & Targets

Environmental Challenges

• Materialization of climate risks as evidenced by Hurricane Otis, causing loss of life, property damage, and business interruption.
• Water scarcity in Mexico, exacerbated by climate change.
• Transition risks affecting various economic sectors, particularly those with high GHG emissions.

Mitigation Strategies

• Developed a climate adaptation plan including a command center for weather monitoring, business continuity plans, and a disaster recovery plan.
• Implemented support programs for customers affected by Hurricane Otis.
• Developed policies for decarbonizing the wholesale portfolio, including defining target markets and incorporating carbon intensity metrics.
• Added variables related to climate risk actions by companies to internal rating models to incentivize climate policy improvements.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (cyclones, floods, storm surges)
• Temperature rise
• Water scarcity

Transition Risks

• Carbon tax
• Emissions trading system
• Climate regulations
• Shift in energy demand
• Changes in agricultural policies
• Water resource scarcity
• Increased costs due to higher energy consumption
• Energy efficiency regulations
• Shift in market preferences

Opportunities

• Increased demand for financing in energy efficiency projects
• Financing business model transition
• Energy diversification
• Operational and technological efficiency
• Value chain innovation
• Increase in revenues due to higher demand for financing
• New projects focused on emission reduction
• Sustainable product offerings
• Sustainable buildings
• Innovation in design and construction
• Investments in sustainable technologies

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)