ANNUAL REPORT

2020

Since its beginning, the pandemic has trans-formed the way we relate to each other. It has transformed the way we work, the way we consume, the way we learn, the way we educate. It has even transformed the way we relate to ourselves.

As a leading bank, our mission is to help our customers adapt, protect their assets and prosper in this new present that we are build-ing every day. A sustainable present, where we are aware that even the smallest actions can have a positive impact on the planet.

A secure present, where we understand that money is not an end, but a means to help our families, our communities and our country develop to their full potential with freedom and stability.

A present where we know that by taking care of our health we take care of everyone’s health. An inclusive present, where we as-sume ourselves as citizens of the world and contribute to the common good. A present where we demonstrate our leadership by pro-moting and sponsoring the protection of nat-ural systems.

A present where we are grateful for the op-portunity to accompany our customers ev-ery day in the evolution of their lifestyle, with sustainable and innovative financial products and services that help them to overcome the challenges imposed by the changing twen-ty-first century.

BUILD YOUR PRESENT

120-14 y 102-15

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2

MESSAGE FROM THE PRESIDENCY

The year 2020 was conditioned by the health and economic crisis derived from Covid-19, but it was also a year of learning and opportu-nities that activated the resilience of our busi-ness model and made us reconsider the im-pact that our actions generate in companies and people who, like us, are seeking a green future for Mexico.

The pandemic tested the adaptability and flex-ibility of our operations, our human resources, and our commitment to society. Thanks to the dedication of more than 3,000 employees and intense teamwork, our network of 220 branches remained fully operational, process-es and work schemes were renewed, and pro-fessional development and social investment programs remained active and evolved to face the new normality.

The ability to anticipate and act upon changes has led us to acquire complementary finan-cial entities and to consolidate alliances with

market leaders to increase the range of prod-ucts and services offered to our Customers. In 2020 we closed the acquisition of the trust portfolio of Evercore Mexico and Deutsche Bank Mexico, which positions us strategically in the Mexican trust market.

The new normal turned projections into actu-al needs and demands a decisive response in terms of digital accessibility, sustainable finance and service experience. Our main digital channels grew steadily, operations in CINet and CIMóvil increased by 17% and 45% respectively, our green portfolio represented 2.3% of the total portfolio and we maintained our Customer satisfaction levels at 97%.

As responsible corporate citizens, we consid-er it essential to facilitate the transition and economic reactivation towards more sustain-able models, which is why we promote and reinforce our adherence to the most represen-tative financial and business sustainability

principles of the sector at a national and inter-national level. In 2020 we were recognized for the fourth consecutive year as a Socially Re-sponsible Company by Cemefi and this report reaffirms our commitment to the principles of the Global Compact and the United Nations Sustainable Development Goals.

2020 was also a year of remarkable progress in terms of environmental sustainability; we were able to start porting renewable energy to more than 70 branches, which represented an 11% reduction in emissions compared to the previ-ous year. In 2021, we will continue to expand the scope of this project and promote environ-mental care in our operations and services. The country’s changing social and political context, the worsening effects of climate change, and the post-Covid-19 economic re-covery will continue to set the public agenda for the coming year. Privileging sustainability as a business axis sets our agenda today and

tomorrow, and with it the added value we give to companies, people and society.

Thanks to our Customers for their preference, to our employees and suppliers for their com-mitment and to all our social and commercial partners for their collaboration; together we build the present.

Lic. Jorge Rangel de Alba BrunelC H A I R M A N O F T H E B O A R D O F D I R E C T O R S

THANKS TO THE EXCELLENT PERFORMANCE OF OUR MORE THAN 3,000 COLLABORATORS AND INTENSE TEAMWORK, OUR NETWORK OF 220 BRANCHES REMAINED FULLY OPERATIONAL, PROCESSES AND WORK SCHEMES WERE RENEWED, PROFESSIONAL DEVELOPMENT AND SOCIAL INVESTMENT PROGRAMS REMAINED ACTIVE.

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3

We provide sustainable financial solutions that favor individuals and companies that seek to positively impact the environment with each of their actions and finances.

We set the green trend with 36 years of ex-perience in the market and a multidisciplinary network of financial vehicles that allow us to offer a comprehensive, adaptable and func-

We see financial services as an important tool for companies and citizens to act more re-sponsibly in the care and conservation of the environment. We believe that sustainability is a profitable business approach that creates long-term value for our shareholders.

VISI

ONMI

SSIO

N To be leaders in Mexico in the financial ser-vices sector that privileges sustainability as a business axis, for the mutual benefit of com-panies and individuals.

VALU

ES • Commitment• Ethics• Professionalism• Service of excellence• Transparency• Fair treatment• Sustainability

INSTITUTIONAL PROFILE

tional service to the changing economic, so-cial and environmental context. In addition to maintaining long-term relationships and trust with customers, employees, suppliers and commercial and social allies to generate val-ue for Mexico and the environment.

4

Provides advice and strategies to grow wealth through investment funds aimed at individuals or companies.

Products

+CIGUB+CIUSD+CIPLUS+CIBOLS+CIEQUS+CIGULP+CIGUMP

Offers loans for the purchase of new or pre-owned cars through dealerships.

Products

• Personal automobile loans.• Corporate automotive loans.• CIArrendamiento.

Offers investment advice and plans through various stock market instruments.

Products

• Corporate financing.• Money markets.• Derivative products.• Investment funds.• Capital market.• Savings fund.

Offers advice and investment plans through various stock market instruments.

Provides financial services and advice in investment banking.

Products

• Mergers and acquisitions.• Corporate financing.• Structured financing.

Master asset managers of structured credit derivatives, whether bank or stock market based.

Products

• Master Management.• Asset Securitization.

¹ CIBANCO, S.A., Institución de Banca Múltiple. Locted in Av. Paseo de las Palmas No. 215, 7th Floor, Col. Lomas de Chapultepec, Z.C. 11000, Mexico City. Its main economic activities include, among others, receiving deposits, accepting loans, granting credit, trading securities, foreign exchange and derivatives, as well as entering into trust agreements. At the end of 2020, it has two subsidiaries: CI Fondos, S. A. de C. V. (CIBanco owns 99.96 % of the corporate capital) and Finanmadrid México, S. A. de C. V. SOFOM (CIBanco owns 99.99 % of the corpo-rate capital)

CIBANCO¹ ALLIED FINANCIAL VEHICLES

2011

1984

2012 2012 2014 2012 2012

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5

$154million in Tax Contribution.

33% of the Board of Directors is independent.

11%of issuancereduction.

3,017 $2.4 MILLION

collaborators

investment in training programs.

7,073 INDIVIDUALSbenefited from social initiatives.

$ 6.6 million in social investment

84%

16%

93,037 Customers

individuals.

companies.

99%

1%

$ 1,803,761,945 used in payments to suppliers

nationals.

foreigners.

2020 IN NUMBERS

6

GOVERNANCE Corporate Governance is the conscience of our actions, which is why at CIBanco, our Board of Directors maintains greater independence than that established by law and is supported by five committees to permeate its decisions throughout the company. In addition to having tools for the management and promotion of an internal culture of ethics and sustainability.

Corporate Governance

Risk management

Cybersecurity

Ethical behavior

Adaptation to regulatory changesMAT

ERIA

L AS

PECT

S

“WE ARE BUILDING A SUSTAINABLE PRESENT,

WHERE WE ARE AWARE THAT EVEN THE SMALLEST ACTIONS CAN HAVE AN IMPACT ON THE

ENVIRONMENT”

Consult the complete curriculum vitae of each of the members of the

Board of Directors here.

7

33%of the Directors are independent.

11,204 hours of training on the ethical and regulatory matters of the transaction.

5 COMMITTEESsupporting the Board:Audit, Communication and Control, Comprehensive Risk Management, Credit and Compensation.

8

BOARD OF DIRECTORS

GOAL 16.5To significantly reduce corruption and bribery in all its forms.

The Board of Directors guarantees efficiency and transparency in the administration of re-sources and business interests to all stake-holders, which is why this control body, in accordance with the business vision, is a stra-tegic mechanism for the sustainable manage-ment of the operation. The Board also facili-tates risk management and control, as well as the consolidation of an ethical and transpar-ent culture among collaborators, executives and directors.

The Board is responsible for defining the stra-tegic vision of the Institution, as well as ex-ecuting, monitoring and evaluating it through its committees. It is also responsible for:• Approve the objectives of the Internal Con-

trol System and the guidelines for its im-plementation.

• Approve the Institution’s Code of Ethics and Conduct, as well as its dissemination and application, in coordination with the General Direction.

• Develop control policies and procedures to guarantee security, integrity, confiden-tiality and continuity in the performance of operations and provision of services to the public through automated data pro-cessing systems and telecommunications networks.

• Establish policies and control mecha-nisms to ensure, regulate and promote the adequate use and exploitation of human, technological and material resources nec-essary for the operation of the Company.

• Implement policies and control mecha-nisms to guarantee availability, confidenti-ality and continuity in the contracting of ser-vices with suppliers and correspondents.

THE AVERAGE AGE OF THE MEMBERS OF THE BOARD OF DIRECTORS IS 58 YEARS OLD.

The Board has five committees that facilitate the implementation, evaluation and control of economic, social, financial and environmental decisions relevant to the business; and are re-sponsible for visualizing and developing strat-egies for adapting the business to regulatory, economic and social changes that could af-fect its operation or profitability. During 2020, the Board and its committees maintained the following structure:

C H A I R M A N D I R E C T O R

Jorge Rangel de Alba Brunel

P R O P R I E T A R Y M E M B E R S

Salvador Arroyo Rodríguez

José Manuel Cadena Ortiz de Montellano

Norman Hagemeister Rey

Roberto Pérez Estrada

Luis Miguel Osio Barroso

Juan Carlos Pérez Aceves

Jorge González Ramírez

Ernesto Marín Rangel de Alba

Luis Alberto Pérez González

I N D E P E N D E N T P R O P R I E T A R Y M E M B E R S

Michell Nader Schekaiban

Fernando Javier Morales Gutiérrez

Christian Mario Schjetnan Garduño

Pedro Enrique Alonso Angulo

Luis de las Mercedes Álvarez y Candocia

A L T E R N A T E S

Mario Alberto Maciel Castro*

José Ignacio Reyes Retana Rangel de Alba*

A L T E R N A T E S

Eduardo Villanueva Ortiz *

E X A M I N E R

Alejandro De Alba Mora

A L T E R N A T E

Ricardo Delfín Quinzaños

S E C R E T A R Y

Roberto Pérez Estrada

* These persons may replace any of the Proprietary Members without distinction

* This person may replace any of the Independent Proprietary Members without distinction.

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1. AUDITING COMMITTEE 2. INTEGRATED RISK MANAGEMENT COMMITTEEDuties

Support the Board of Directors in defining and updating the objectives of the Internal Control System (ICS) and the guidelines for its imple-mentation, as well as in its verification and evaluation.

Review and monitor that the manuals relevant to the operation comply with the ICS.

Follow up on the activities of internal and ex-ternal Auditing, as well as the Internal Comp-trollership of the Institution, keeping the Board of Directors informed.

Supervise that the financial and accounting information is prepared in accordance with the guidelines and provisions to which the in-stitutions are subject, as well as with the ac-counting principles applicable to them.

DutiesApprove, publish and distribute the “Compre-hensive Risk Management Policies and Pro-cedures Manual”. Proposes for the Board’s approval: objectives, guidelines, policies, global limits, capital ade-quacy assessment and the management of the different types of risks.

I N D E P E N D E N T P R O P R I E T A R Y

M E M B E R S

Fernando Javier Morales Gutiérrez C H A I R M A N

Christian Mario Schjetnan Garduño M E M B E R

I N D E P E N D E N T P R O P R I E T A R Y

M E M B E R S

Pedro Enrique Alonso Angulo C H A I R M A N

P R O P R I E T A R Y M E M B E R S

Norman Hagemeister Rey M E M B E R

Luis Miguel Osio BarrosoA LT E R N A T E M E M B E R

Salvador Arroyo Rodríguez M E M B E R

Juan Carlos Pérez AcevesA LT E R N A T E M E M B E R

Luis Alberto Pérez GonzálezA LT E R N A T E M E M B E R

General DirectorM E M B E R

Corporate Director of Compliance and RiskM E M B E R

Integral Risk Management DirectorA LT E R N A T E M E M B E R

Economic Analysis DirectorP A R T I C I P A N T

Economic Analysis DirectorP A R T I C I P A N T

Deputy General Manager Administration and FinanceP A R T I C I P A N T

Credit DirectorP A R T I C I P A N T

Internal Audit DirectorP A R T I C I P A N T

Treasury DirectorP A R T I C I P A N T

Operating OfficerP A R T I C I P A N T

Systems and Telecommunications Director P A R T I C I P A N T

Chief Legal OfficerP A R T I C I P A N T

Director of Changes and CoverageP A R T I C I P A N T

Director of Money MarketP A R T I C I P A N T

Derivatives DirectorP A R T I C I P A N T

Executive Director of Human Capitaland QualityP A R T I C I P A N T

Corporate Director of Internal ControlP A R T I C I P A N T

OPERATIONAL RISK MANAGEMENT MODEL IMPLEMENTED IN 2020.

P R O P R I E T A R Y M E M B E R S

Norman Hagemeister Rey M E M B E R

Salvador Arroyo Rodríguez P A R T I C I P A N T

Luis Miguel Osio Barroso P A R T I C I P A N T

General DirectorP A R T I C I P A N T

Internal Audit DirectorP A R T I C I P A N T

Deputy General Manager Administration and FinanceP A R T I C I P A N T

Corporate Director of Compliance and RiskP A R T I C I P A N T

Corporate Director of Internal Control P A R T I C I P A N T

Management and Finance Director P A R T I C I P A N T

Chief Legal OfficerS E C R E T A R Y

Ricardo Delfín QuinzañosP A R T I C I P A N T ( E X A M I N E R )

Alejandro de Alba MoraP A R T I C I P A N T

( A LT E R N A T E E X A M I N E R )

10

3. CREDIT COMMITTEE 4. COMMUNICATION AND CONTROL COMMITTEE

DutiesEnsure that the institution’s credit evaluation and granting programs and procedures com-ply with current regulations and allow for ade-quate levels of risk and profitability.

Maintain the institution’s credit risk level with-in reasonable parameters for the proper func-tioning of CIBanco.

DutiesOversee and ensure proper compliance with the General Provisions of Art. 115 of the Law of Credit Institutions (Ley de Instituciones de Crédito), as well as the policies and processes for Anti-Money Laundering and Prevention of Terrorism Financing.

P R O P R I E T A R Y M E M B E R S

Norman Hagemeister Rey M E M B E R C H A I R M A N

Salvador Arroyo Rodríguez M E M B E R

Luis Miguel Osio BarrosoM E M B E R

I N D E P E N D E N T P R O P R I E T A R Y

M E M B E R S

Juan Carlos Pérez Aceves M E M B E R

Christian Mario Schjetnan Garduño M E M B E R

P R O P R I E T A R Y M E M B E R S

Norman Hagemeister Rey C H A I R M A N O F T H E C O M M I T T E E

Luis Miguel Osio BarrosoM E M B E R

Salvador Arroyo Rodríguez M E M B E R

Jorge González RamírezS U P L E N T E

Corporate Director of Compliance and RiskM E M B E R

Integral Risk Management DirectorS U P L E N T E

General DirectorM E M B E R

Corporate Director of Internal ControlM E M B E R

Assistant Director of the Control DeskS U P L E N T E

Operating OfficerM E M B E R

SAssistant Director National OperationsS U P L E N T E

Chief Legal OfficerM E M B E R

Assistant General CounselS U P L E N T E

Promotion DirectorM E M B E R

Executive Director Promotion of Change IM E M B E R

Compliance OfficerS E C R E T A R I O

AML Compliance Assistant DirectorM E M B E R

Director of New Business and ProductsM E M B E R

Executive Director Promotion of Change IIM E M B E R

Executive Director Commercial BankingM E M B E R

Metropolitan Regional Assistant DirectorS U P L E N T E

Internal Audit DirectorP A R T I C I P A N T

Audit Assistant Director P A R T I C I P A N T

General Director, Alternate DirectorM I E M B R O

Director of New Business and ProductsM I E M B R O

Credit DirectorM I E M B R O

Chief Legal OfficerS E C R E T A R I O

Corporate Director of Compliance and RisksP A R T I C I P A N T

Executive Director Promotion of Change IP A R T I C I P A N T

Executive Director Promotion of Change IIP A R T I C I P A N T

Corporate Banking DirectorP A R T I C I P A N T

Project Financing Director P A R T I C I P A N T

Director of Corporate Banking IP A R T I C I P A N T

I N D E P E N D E N T M E M B E R S

Federico Carstens CarstensM E M B E R

1 1

5. COMPENSATIONS COMMITTEE

DutiesDefine the operations and personnel that will be subject to the SISREM (Compensation Sys-tem or Sistema de Remuneraciones), consid-ering the operations that generate some type of discretionary risk for the Bank.

Exercise independent judgment, whose deci-sions are based on the evaluation of the risks assumed by CIBanco.

Evaluate quarterly the aspects related to the SISREM.

I N D E P E N D E N T P R O P R I E T A R Y

M E M B E R S

Christian Mario Schjetnan Garduño C H A I R M A N

P R O P R I E T A R Y M E M B E R S

Salvador Arroyo Rodríguez M E M B E R

General DirectorM E M B E R

Exec. Human Capital and QualityS E C R E T A R Y

Corporate Director of Compliance and RiskM E M B E R

Deputy General Manager Administration and FinanceM E M B E R

Internal Audit DirectorN O N - V O T I N G M E M B E R

12

BUSINESS ETHICS103-1, 103-2 y 103-3

102-16 y 102-17

GRI

GRI

CIBanco’s ethical principles are framed in the Code of Conduct, exposed and present-ed to the entire organization through a train-ing program. This document is accepted by collaborators and managers to maintain the compliance and ethics of the operation in ac-cordance with the internal corporate culture and regulations.

The Code provides certainty and confidence to stakeholders regarding CIBanco’s actions, guaranteeing the promotion and monitoring of the guiding principles that align the actions of each employee:

• Fair Competition.• Conflict of Interest.• Information Confidentiality.• Compliance with the Applicable Regulation.• Workplace Conduct Standards.

CODE OF CONDUCT

• Privileged Information.• Intolerance with Corrupt Practices.• Sales Practices.• Preservation of the Company’s Reputation

and Name.• Anti-Money Laundering.

Through internal and external mechanisms for advice and/or complaints in favor of the In-stitution’s ethical conduct, CIBanco has been responsible for emphasizing the correct appli-cation and experience of the Code. Internal-ly, there is an Anonymous Mailbox managed by the Compliance Department, which can be accessed through its portal (INTRANET). Its purpose is to provide employees with an anonymous means of advice and to report op-erations that, in their opinion, could be consid-ered unusual or worrisome.

At an external level and regulated by the Audit Department, there is an Internet access for the general public to send e-mails, where, in addi-

tion to making inquiries or filing complaints, they can report unusual conduct by employ-ees with the client or any other external public.

This Code also sets out the principles of inter-action and relationship with the different stake-holders and, through an induction course, new personnel are trained on the aforementioned code and the different internal processes, to ensure that the values as well as the legal and ethical standards of the organization are dis-seminated and maintained in each process.

In 2020, the Code was updated to support the right of customers and users with Covid-19 or symptomatology to be attended in branches, which is operationally complemented with cleanliness and biosafety controls in line with the provisions of the Mexican health and san-itary authorities.

11,204 hours of trainingon anti-money laundering, anti-corruption and anti-corruption practices for 100% of the personnel.

13

RISK MANAGEMENT AND COMPLIANCE

102-11, 102-20, 102-30

GRI 103-1, 103-2 y 103-3

GRI

Risk management, transparency in the man-agement of Corporate Governance, adapta-tion to regulatory changes, cybersecurity, the compensation system and the ethical behav-ior of the Institution and its collaborators are material issues managed and evaluated by three fundamental areas for the Bank’s busi-ness ethics, the structure and main achieve-ments in 2020 are described below: • Integral Risk Management Department.• Compliance Department. • Regulatory Comptroller’s Office.

The area responsible for Integral Risk Man-agement (IRM) is the Integral Risk Manage-ment Department (IRMD), which is in charge of providing independent support to the Bank’s business areas. The IRMD reports to the Integral Risk Management Committee (IRMC) and indirectly, through it, to the Board of Directors.

In 2020, the IRMD closely monitored the in-terest and principal deferral program for the corporate and consumer portfolios, as well as the operational risk events inherent to the confinement and accelerated migration of the use of technology.

INTEGRAL RISK MANAGEMENT DEPARTMENT

The IRM process at CIBanco is carried out through a set of objectives, guidelines and procedures to identify, measure, monitor, lim-it, control, report and disclose the different types of risks to which the Bank is exposed:• Market.• Liquidity.• Credit.• Operational (including Technological and

Legal risks).

COMMUNICATION AND CONTROL COMMITTEE

COMP

TROL

LER’

S OFF

ICE

RISKS

DEP

ARTM

ENT

COMP

LIANC

E OFF

ICER

RISKS

MET

HODO

LOGY

DEP

ARTM

ENT

CHIEF RISK OFFICER

RISKS COMMITTEE

EXECUTIVE COMMITTEE

14

The guiding principles for the organization of Integrated Risk Management in the Bank are as follows:

Clear definition of objectives, policies and procedures for the management of the different types of risks, whether quantifi-able or not.

Functions aligned by risk type. Transparency of the delimitation of func-

tions, including independence between the IRMD and the business areas.

Clarity in job profiles at all levels. The participation of the following bodies is an essential part of permeating an institutional culture of integral risk management, aligned with the aforementioned precepts: • Internal Auditor: Appointed by the Board

of Directors to review and monitor, inde-pendently of the IRMD, the proper function-ing of and compliance with risk standards and policies throughout the Bank.

• Comptroller: Responsible for identifying and evaluating that the controls promote compliance with internal and external reg-ulations in the performance of its opera-tions, which allow the daily arrangement, documentation, recording and settlement

of transactions to be carried out in accor-dance with the policies and procedures established in the Bank’s manuals and in compliance with the applicable legal pro-visions.

• General Direction: Responsible for pro-moting the IRM culture throughout the or-ganization and for the proper functioning and interaction of the different risk gener-ating areas with the IRMD.

• Business Units: By their nature they are the risk generating units. They have the obligation to follow the policies and proce-dures defined in this manual and to abide by the recommendations of the IRMD for the Bank’s exposure to the different risks.

• External Auditor: Recruited from time to time by the Board of Directors, if deemed necessary, to review and monitor the prop-er functioning of and compliance with risk standards and policies throughout the Bank.

In 2020, the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) published the Guide for the Pre-vention and Detection of Transactions with Resources of Illicit Origin in the Financial Sys-tem (Guía para la Prevención y Detección de Operaciones con Recursos de Procedencia

Ilícita en el Sistema Financiero). As a result of this, some controls were implemented in processes and through the Transaction Mon-itoring System, validations are made in the screening of Customers to identify any re-lated issue; as well as in the analysis of the alerts generated by the same system. Regard-ing politically exposed persons, when they are identified in any process, a stricter monitoring is performed.

GRI 102-11, 102-20 y 102-30

Responsible for ensuring full compliance with the rules established in laws and regulations applicable to the operation, ensuring adher-ence to internal policies and guidelines, in or-der to convey confidence to Customers and users about the products and services. Inter-nal Control promotes an orderly, systematized and transparent environment, guaranteeing the necessary security to mitigate the risks to which the Institution could be exposed. It also contributes to:

• The prevention and detection of fraud, er-rors or negligent and/or fraudulent omis-sions.

• The accuracy and completeness of the ac-counting records of the transactions car-ried out by the Bank.

• Timely and reliable preparation of finan-cial, administrative, operational and legal information.

• The safekeeping and custody of the Bank’s assets.

• Compliance with applicable laws and reg-ulations.

• Proper use of the Bank’s human and mate-rial resources.

COMPTROLLER DEPARTMENT

15

GRI 102-11, 102-20, 102-30, 103-1, 103-2, 103-3 y 205-1

In coordination with the Integral Risk Man-agement Department and the Internal Control Department, this department seeks to consol-idate a culture of compliance by implement-ing processes and quality controls that show shareholders, authorities and other stakehold-ers that the ethical, financial, legal and admin-istrative guidelines that concern the business are being complied with.

CIBanco has a Quality System whose objec-tive is to offer security and customer satisfac-tion, ensuring that operations adhere to best practices in the area of anti-money launder-ing, as well as to national and international regulations in force, and always with a vision of process improvement. Until 2020 this cer-tification was active and in the first quarter of 2021 the recertification was made, without any non-conformity by the external auditor.

The Anti-Money Laundering System is based on three key processes, which, in turn, have a total scope throughout the organization:

COMPLIANCE DEPARTMENTTo ensure that the Institution’s commercial activity is not related to unlawful acts, a man-agement cycle for the prevention and control of money laundering is implemented internal-ly in compliance with applicable regulations. The process is shown below:

Within the Compliance Department, risks re-lated to corruption are also managed and evaluated; by means of a questionnaire car-ried out by representatives of the authority or government, personnel must declare and ex-pose their family, marital or personal ties, with the purpose of identifying politically exposed personnel.

Identified personnel sign a statement assur-ing that their relationship will not interfere with their functions and responsibilities within CIBanco. They are also asked to complete an additional questionnaire to identify the type of relationship or link they have with politicians and public officials.

In addition, the Institution makes available to politically exposed employees a means of communication, reporting and counseling, under the responsibility of the Compliance Officer, where any type of risk related to cor-ruption with governmental entities is attend-ed and prevented. Each of these processes is supported by the policies and manuals of the Anti-Money Laundering System.

ANTI-MONEY LAUNDERING (AML)

Training for process alignment and anti-money laundering.

Internal policy on AML (development, issuance and update).

Automated monitoring of operations overseen by the Communications and Control Committee.

Issuance of Reports Communication and Control Committee, Board of Directors and Regulatory Authorities.

Compliance area

01. CUSTOMER VERIFICATION• Control desk• Systems• Legal

02. MONITORING AND DETECTION OF UNUSUAL, RELEVANT OR WORRISOME OPERATIONS

• Systems

03. TRAINING IN AML MATTERS

• Acquisitions• Human Resources

16

SUSTAINABILITY MANAGEMENT

Sustainability is our way of doing business, a dynamic business, capable of adapting to the needs of its stakeholders. 2020 was a year that transformed the reality of many of the people and companies in our value chain, therefore in 2021 we will update our materiality and with it our sustainability strategy, in order to direct actions and programs to issues that generate greater value and confidence to stakeholders and the business. Our sustainable way of doing business is managed from an internal area, which reports directly to the executive presidency and is supported by an external committee. Sustain-ability results and indicators are monitored and evaluated through an annual report that uses Global Reporting Initiative (GRI) stan-dards and is verified by an independent third party. For six consecutive years we have used GRI to report our performance.

CIBanco’s Sustainability Model integrates our corporate philosophy with our stakeholders, values and impact areas in alignment with the United Nations Sustainable Development Goals, an initiative to which we adhered in 2016 and whose progress report is included in this report.

EXTERNAL SUSTAINABILITY COMMITTEEIt is an independent advisory body to the Bank’s operation that strengthens the inter-nal management system and contributes to the timely achievement of institutional goals. This Committee collaborates with and reports to the Sustainability Department and its main mission is to promote continuous improve-ment in the development of green financial services of the Institution.

FUNCTIONS OF THE COMMITTEE• Contribute to the improvement of the qual-

ity of services offered to users.• Define the necessary strategies to solve

identified opportunities.• Establish the necessary actions to pro-

mote the financing strategy and green products.

• Promote the evaluation and impact of the Bank’s sustainable actions.

• Promote the use of mechanisms to estab-lish a comprehensive diagnosis and make decisions aimed at improving the organiza-tion and operation of services and products.

• Conduct vulnerability analysis of the Bank’s green operation.

MEMBERS OF THE COMMITTEE• Julio Madrazo García

C H A I R M A N O F T H E C O M M I T T E E

• María Isabel Studer Noguez• Gustavo Alanís Ortega• Françoise Lavertu• Rodrigo Villar Esquivel

ECON

OMIC

SU

STAINABILITY SOCIAL SUSTAINABILITY

ENVIRONMENTAL SUSTAINABILITY ETHICS AND CORPORATE GO

VERN

ANCEClients

Shareholders

Autho

ritie

s

Colla

bora

tors

Suppliers

Company

Com

mitm

ent

Ethics

Professionalism

Exce

llenc

e Se

rvic

e

Tran

spare

ncy

Fair work

Sustainability

GOAL 12.6Encourage companies, especially large companies and transnationals, to adopt sustainable practices and incorporate sustainability information into their reporting cycle.

17

WELLBEINGTaking care of the operation means

taking care of the well-being and health of our collaborators,

promoting a respectful and flexible work culture capable of continuous

improvement through training and evaluation.

Talent Development and Retention

Compensation System

Family and Work Life

Corporate Investment

Performance Evaluation

TrainingMAT

ERIA

L AS

PECT

S

“A PRESENT WHERE WE KNOW THAT BY TAKING CARE OF OUR HEALTH WE TAKE CARE OF EVERYONE’S HEALTH”

Consult relevant information about our

Compensation System here.

18

14% annual turnover rate, 12 percentage points less than the previous year.

8.1 average training hours per employee in 2020.

38% of increase in the number of evaluations compared to the previous year.

19

“A SECURE PRESENT, WHERE WE UNDERSTAND THAT MONEY IS NOT AN END, BUT A MEANS TO HELP OUR FAMILIES, OUR COMMUNITIES AND OUR COUNTRY DEVELOP TO THEIR FULLEST POTENTIAL WITH FREEDOM AND STABILITY.”

COVID-19 ACTIONSWELLBEING

EMPLOYEES CUSTOMERS

BRANCHES AND OFFICES• Installation of dividing screens.• Constant sanitization of common areas.• Use of mandatory protective equipment.• Social distancing signaling.• Provision of hand sanitizer.• Temperature measurement with infrared

thermometers.

• Direct line of communication with person-nel affected by Covid-19 operates 24/7.

• 1,071 Safety protocols activated for sus-pected and confirmed cases.

• 66% of personnel worked in the Home Of-fice mode at the end of 2020.

• Installation of dividing screens at worksta-tions and all biosafety measures recom-mended by the authority.

• Defer monthly payments on CIPanel Solar, CIAutomotriz and CIPersonal loans for up to 4 months, 12,612 customers requested this support.

• Credit restructuring.• Free electronic banking transactions.• Home pick-up service and/or cash deposit

on account.• New services enabled through digital

media.

COMMUNITY• 3,000 groceries delivered to informal work-

ers around CIBanco’s offices.• $1.3 million in support to Tabasco regard-

ing the sanitary emergency.

20

GOAL 8.5

GRI

Achieving full and producti-ve employment for all.

WORK CULTURE102-8, 103-1, 103-2 y 103-3

GRICulture determines how an organization works and the way its people are and what they do. The world moves fast and, therefore, it is necessary to move forward and adapt permanently in order to remain a competitive and solid entity. CIBanco promotes individual talent and organizational culture as key inputs for the adaptability and profitability of its busi-ness model.

Our workforce is diverse in gender, age and location, but has one thing in common: in-stitutional values, the pillars of CIBanco’s or-ganizational culture. Our employees adhere to these values from the induction course, reinforce them in each training process, con-solidate them in the performance evaluation process, and consolidate them through the compensation and recognition schemes.

In terms of gender, CIBanco’s collaborators are in equal proportion, despite the 2% reduc-tion in total headcount compared to 2019. We went from 3,072 to 3,017 employees in 2020, which in turn are dispersed in 83 cities nation-wide.

CIBANCO STRENGTHENS INDIVIDUAL TALENT AND ORGANIZATIONAL CULTURE AS KEY INPUTS FOR THE ADAPTABILITY AND PROFITABILITY OF ITS BUSINESS MODEL.

21

DIST

RIBU

TION

BY

REGI

ON

35

88

66

81

1983

197

1 12

1 1 1

712

30

48

38

56

2352

126

1 10

76

9541,666

323

137

104

222187

135

136

65

42

Baja California

Northwest

West

Women

Ciudad de México, Guerrero, Hidalgo

Aguascalientes, Guanajuato, Michoacan, Queretaro, San Luis Potosi, Zacatecas

Campeche, Oaxaca, Puebla, Tabasco,

Tlaxcala, Veracruz

Nuevo León, Tamaulipas

Chihuahua, Coahuila, Durango

Chiapas, Quintana Roo, Yucatán

Baja California Sur, Colima, Jalisco, Nayarit

Sinaloa, Sonora

Tijuana

Edo. Mex y Morelos

Men

Bajío

Metropolitan Area

North

Northeast

State of Mexico

East

Southeast

401-1, 102-8

GRI

22

Metropolitan

State of Mexico

Bajío

Southeast

West

East

Northeast

North

Northwest

Baja California

NEW HIRES (%) RATE

15%

26%

17%

12%

23%18%

20%

8%

21%

8%

TURNOVER (%) RATE

12%

48%

12%

16%22%

18%

18%

6%

14%

15%

23

50% OF HIRINGS AT THE CLOSE OF THE YEAR AND 35% OF EXECUTIVE AND MANAGERIAL POSITIONS ARE HELD BY WOMEN

With respect to changes in the composition of the workforce, in 2020 the fiduciary portfo-lio of two institutions was acquired and with it 25 new collaborators, who were integrated or-ganically and without setbacks, enjoying from day one their benefits as permanent collabo-rators of CIBanco.

99.4% of the Bank’s collaborators are Mexican and only 0.6% are foreigners.

Director 1Manager 1 Administrative 17 and operational

Directors 88Assistant directors 93Managers 411Administrative 2,406 and operational

FOREIGNERS 19 2,998NATIONALS

24

The overall hiring rate was 16%, with a slight decrease compared to the previous year where 507 people were hired, while 478 peo-ple were hired in 2020, i.e., 27 less.

HIRING* 255

223

new hires

new hires

17% (new hires rate)

15% (new hires rate)

1,387

1,411

126

93

Permanent hires

Permanent hires

Temporary hires

Temporary hires

93% of collaborators have permanent con-tracts, nine percentage points more than in 2019, when 86% of the workforce was un-der this type of contract. All employees with permanent or temporary contracts have the same working hours and the same benefits scheme.

Total Hires Hiring Rate

TOTAL NEW HIRES 2020

<30 years

31-40 years

41-50 years

>51 years 18 4%

9%

16%

32%

74

160

226

TYPE OF HIRE 2020

<30 years

Permanent hires Temporary hires

31-40 years

41-50 years

>51 years

602

950

762

484 8

97

80

34

* Formula for new hires among the total number of people in the category by gender and age.

25

Annual turnover in 2020 reached a record low of 14%. There was no major difference be-tween the rate for men and women, however, there was a difference in the age range, with those under 30 years of age being the employ-ees with the highest turnover rate: 26%, i.e., 12 percentage points above the general rate.

TURNOVER*

TURNOVER RATE % 2020

<30 years

31-40 years

41-50 years

>51 years 7%

9%

13%

26%

14%14%

27.00%25.64%

21.37%

26.68%

14.22%

2016 2017 2018 2019 2020* Total formula for departures among the total number of persons in the category by gender and age.

26

CIBanco has a Compensation Committee in charge of implementing and maintaining our Compensation System so that it is competi-tive and of value to all collaborators.

COMPENSATION

Transparency of compensation mechanisms is a law; therefore, all the information can be found in detail on our web site.

CIBanco’s benefits are above those estab-lished by law and although in 2020 many of the benefits and recognition initiatives of the CICalidad de Vida program were postponed due to the pandemic and biosecurity proto-cols, close communication was maintained with collaborators, providing support and rec-ognition for their work, an example was the recognition for seniority, given to 163 collabo-rators and a gift to mothers on their day.

ANNUAL GRATIFICATION 30 days salary per year

VACATIONS12 days the first 4 years

SAVINGS FUND13% of salary with legal cap

GROCERY COUPONS10% of salary with legal cap

FOOD COUPONS$500 monthly pesos

Our human team is one of our greatest assets. If you want to join us click

here

THE INSTITUTIONAL HOME OFFICE PROGRAM AT THE

NATIONAL LEVEL ALLOWED 66% OF THE ADMINISTRATIVE

AND 45% OF THE OPERATIONAL PERSONNEL TO WORK FROM

HOME DURING THE PANDEMIC.

103-1, 103-2, 103-3 y 401-2

GRI

27

12Directors

34Assistant Directors

161Managers

1,297Administrative

and operational

7 hAverage training

hours

5%Percentage with

performance evaluation

77Directors

59Assistant Directors

251Managers

1,126Administrative and operational

9 hAverage training hours

13%Percentage with performance evaluation

<30

year

s31

-40

year

s41

-50

year

s>5

1 ye

ars

544

384

380

196

486

315

416

296

<30

year

s31

-40

year

s41

-50

year

s>5

1 ye

ars

28

COVID-19 ACTIONS

• Internal communications on the Bank’s current situation were created, as well as an internal communication campaign to mitigate infections inside and outside the work area.

• Separation signs and timely information on the care and protection against Covid-19 were installed in corporate and branch of-fices.

• A 24/7 direct communication line was created with the personnel affected by Covid-19 in order to have information and control of the pandemic within the Institu-tion, a system that is still in force.

• Initiatives were created to limit contacts; for example, personalized gift cards were given at the end of the year to avoid parties or exchanges.

IN 2020 OUR OPERATION DID NOT STOP THANKS TO THE COMMITMENT AND TEAMWORK OF ALL OUR COLLABORATORS.

2020 will be forever associated with Covid-19 and the health emergency that has demanded extraordinary measures of care and protection for all economies and people. CIBanco, in the midst of this situation of uncertainty, and in an exercise of responsibility, has reacted de-cisively to help counteract the effects of the pandemic in the first instance among custom-ers and collaborators and therefore in our so-ciety.

The health and safety of collaborators are the key pillar for business continuity in the face of pandemics. For this reason, the Executive Di-rection of Human Capital, Processes and Qual-ity Engineering developed a model of attention to positive and suspected cases of Covid-19 and protocols for the management and han-dling of the health crisis, as well as a wide variety of actions to prevent contagion inside offices and branches in order to safeguard the health of Customers, users and collaborators.

Among the actions, we highlight: • 1,071 protocols of attention to positive and

suspected cases of Covid-19 were carried out.

• Antibacterial gels and separation acrylics were installed at corporate and branch offices.

• The “Home Office” work model was main-tained with great success and by the end of 2020, 66% of the workforce was working under this scheme.

GOAL 8.8Protect labor rights and promote a safe and secure work environment for all workers.

The Chairman of the Board of Directors imple-mented a support program for the informal economy, giving away food on a regular basis to people who work around the Group, in Mex-ico City and in the regions, delivering a total of 3,000 food parcels by the end of 2020.

OCCUPATIONAL HEALTH AND SAFETY29

TRAINING103-1, 103-2, 103-3, 404-1, 404-2

GRI

The Human Resources Department is in charge of managing the processes of selec-tion, development, training and loyalty of per-sonnel in alignment with the growth needs of the business and the applicable regulations.

Through Annual Training Plans developed on a customized basis for each business area, the Management identifies and manages training needs. In 2020 the plans changed their train-ing method to adapt to the new normality and reach all employees virtually, however, the in-vestment and training hours suffered signifi-cant reductions in number, but not in level of compliance, since all regulatory training was fully complied with.

CIBanco provides its training program in three areas: technical, focused on operational pro-cesses and methodologies; regulatory, fo-cused on legal aspects and risk management; and educational, focused on service and gen-eral aspects of the Bank.

TECHNICAL

Comprehensive training that enables specialized technical development.

5,470training hours

1,429trained employees

51%49%

REGULATORY

Anti-money laundering, risk, anti-corrup-tion and sales practices.

11,204training hours

3,335trained employees

50%50%

EDUCATIONAL

Institutional courses on induction, quality, service, ethics and technical management diploma courses.

6,722training hours

1,219trained employees

51%49%

Men Women

THE WAY OF LEARNING AND EDUCATION ALSO CHANGED WITH THE NEW NORMALITY, IN CIBANCO WE ADAPTED AND MOVED TO VIRTUAL MODE TO OUR COURSES AND TRAINING PROGRAMS.

30

20192020

$4,696,440 $2,464,187

$609.53 $388.55

42,482 24,679

13.8 hours 8.18 hours

Investment in training Investment in training

Investment in training per collaborator

Investment in training per collaborator

Total training hours Total training hours

Average training per collaborator

Average training per collaborator

31

THE COLLABORATORS WHO PARTICIPATE IN THE TRAINING COURSES EVALUATE THE TOPICS PREVIOUSLY EXPOSED; THIS ALLOWS TO KNOW IF THE COURSE INFORMATION WAS ASSIMILATED AND THUS IMPROVE THE CONTENT UPDATING PROCESSES AND THE TRAINING PROVIDED.

725

2,732

24,679

20,299

923

TOTAL HOURS OF TRAINING

Managers

Assistant Managers

Administrative and Operational

Directors

11,000Total training hours

13,679Total training hours

ADMINISTRATIVE STAFF AND MEN WERE THE CATEGORIES WITH THE MOST TRAINING HOURS IN 2020.

32

CONTINUOUS IMPROVEMENT OF

PERSONNEL AND WORK PERFORMANCE

103-2, 103-1, 103-3, 404-3

GRICIBanco develops the performance evaluation of its personnel focused on the objectives of each area in alignment with the annual busi-ness strategy, the fulfillment of operational goals and are carried out by the area directors using a quantitative scale that compares the objectives set at the beginning of the year and the results obtained at the end of the year.

Until 2019, this evaluation had only been given up to management levels and in 2020 it reached the administrative level, which allowed increas-ing the number of evaluations by 38% from 205 to 282 evaluations, thus reaching 9% of staff with a formal performance evaluation scheme.

IN 2020, PERFORMANCE EVALUATION REACHED A NEW LABOR CATEGORY, ADMINISTRATIVE PERSONNEL, 3% OF WHOM RECEIVED A FORMAL PERFORMANCE EVALUATION.

40 8

34 20

31

22

78

49

Dire

ctor

sAs

sist

ant

Dire

ctor

sM

anag

ers

Adm

inis

trativ

eWomen

Men 81 201collaborators evaluated

collaborators evaluated

33

ECONOMICWe serve our customers by making the business

profitable, innovating with products and services, but also with the way we listen

to them and approach them.

Economic and financial performance

Technology and innovation in product

development

Customer Satisfaction

Brand and reputation managementMAT

ERIA

L AS

PECT

S“A PRESENT WHERE WE ARE GRATEFUL FOR THE OPPORTUNITY TO ACCOMPANY OUR CUSTOMERS EVERY DAY IN THE EVOLUTION OF THEIR LIFESTYLES, WITH SUSTAINABLE AND INNOVATIVE FINANCIAL PRODUCTS AND SERVICES THAT HELP THEM TO OVERCOME THE CHALLENGES IMPOSED BY THE CHANGING TWENTY-FIRST CENTURY.”

Consult CIBanco’s Audited Financial

Statements from 2020.

34

7% more Customerscompared to the previous year.

97% satisfaction levelin Customers according to external polls.

$253million rises green portfolio contributing to emissions reduction.

35

ECONOMIC AND FINANCIAL INDICATORS

102-2, 102-6, 102-7, 201-1, 103-1, 103-2 y 103-3

GRI

CIBanco is a flexible financial intermediary, which has been able to adapt to commercial and sectoral situations since its inception, thanks to the experience of the control group as a connoisseur of specific market niches and its ability to gradually develop comple-mentary businesses that can meet the needs of the public, the market and the segments in which it participates.

The above, always under a prudent execution, a solvent and enviably liquid structure with the objective of not putting at risk the consolida-tion of efforts and continue gaining ground in the recognition of the provision of financial services; privileging sustainability as a busi-ness axis, for the mutual benefit of the compa-nies and the people who are served.

With a clear orientation to the Customer above the rest of the components of an offer of this nature; the commitment to make financial services an important tool for them to act with greater responsibility regarding the care and conservation of their estate, but also of the environment with which they interact, is fundamental and has resulted in obtaining a Customer profile with much lower risk and commitment to meet their financial and envi-ronmental obligations, just like us.

The extraordinary situation experienced this year has implied adapting our way of listening in order to be closer to our Customers and em-ployees and to promote improvement actions and changes in a more agile way, therefore, processes, means of attention, products and services have been transformed and will con-tinue to evolve to always have the Customer at the center of all our actions.

OUR

ACHI

EVEM

ENTS

IN 20

20

NUMB

ER O

F ATM

S

BRAN

CHES

AND

PROM

OTION

AL O

FFICE

S

CUST

OMER

S 83cities and tourist centers

2020

2019

404

218 86

,849

456

220

93,0

37

36

Another fundamental characteristic of CIBan-co’s business strategy and economic perfor-mance is the diversification of its product portfolio leveraged by alliances and synergies with a multidisciplinary group of financial ve-hicles. This broadens the Bank’s level of influ-ence and its corporate philosophy.

CIBanco is trusted by 93,037 Customers, of which 84% are individuals and 16% are com-panies. At national level, CIBanco is present with 220 physical service points (210 branch-es and 10 promotional offices) in 83 cities and important tourist centers. In addition, it has 456 ATMs, of which 46% are its own and 64% in alliance with third parties.

The profile of CIBanco’s Customers in terms of their location, whether individuals or cor-porations, has not changed, as they continue to be concentrated in the main cities in terms of demographics and contribution to GDP, giv-en that the demand for wholesale foreign ex-change services, corporate financing and the configuration of sophisticated trusts congre-gates predominantly in these locations. While Commercial Banking is focused on people in the A-B segments and governmental agree-ments seek to finance the D segment.

Baja California

Northwest

West

Bajío

Metropolitan Area

North

Northeast

State of Mexico

East

Southeast68 41

18--

11

07

2227

12

04

02 01

0103

--

02

----

01

--Regional Center

2020

Promotional Offices

2019

210Regional centers and branches

10Promotional offices

ASSE

TS*

49,71

1 50,3

78

CAPIT

AL*

3,97

9 3,63

7

NET P

ROFIT

*34

4 575

ICAP

14.78

%

14.11

%

TOTA

L CRE

DIT P

ORTF

OLIO*

10,8

51

11,76

9

*Numbers in millions of pesos

INDIVIDUALS

Commercial Banking focused on people in the A/B segments

Governmental Agreements to finance the D segment

COMPANIES

Advisory and Fiduciary Administration of large issues

Corporate Banking focused on Medium and Large Companies

GRI 102-4, 102-6 y 102-7

37

CIBANCO ECONOMIC VALUE

201-1

GRI

The economic value generated is equivalent to an organization’s income and thus its way of generating value for its stakeholders; in the case of CIBanco, it is equivalent to income from commissions, brokerage and interest. These revenues decreased 11% in 2020 com-pared to 2019.

Distributed economic value is the way in which CIBanco distributes economic benefits throughout its environment and is represent-ed in operating costs, salaries, employee ben-efits, payments to suppliers and government, in 2020 this value was reduced by 29% com-pared to the previous year.

2020 2019

Interest income 2,671 3,656

Commissions and fees charged 631 548

Net trading income 3,106 3,260

Other income from the transaction 659 550

Generated Economic Value 7,067 8,014

Interest expenses 1,413 2,017

Commissions and fees charged 727 736

Administration expenses 4,189 4,177

Income tax payable 154 283

Payment of dividends n/a 2,011

Distributed Economic Value 6,483 9,224

Retained Economic Value 584 -1,210

38

INNOVATION AND DEVELOPMENT OF PRODUCTS AND SERVICES

The CICash Multicurrency card is a product in which CIBanco has been a pioneer and has generated an important awareness of the use of electronic means instead of cash when traveling and transacting with foreign curren-cies. This product has allowed a huge num-ber of Customers to significantly reduce cash portability, reducing the correlated risks and contributing to a more robust and efficient ecosystem of payment methods, seeking to expand its reach.

The year 2020 was a milestone for CIFondos in the consolidation process and the achievement of objectives, stabilizing the fiduciary operation and successfully concluding the process of in-corporating the portfolios of both Evercore and Deutsche Bank Mexico, to put CIBanco at the forefront of the market, taking the value of “As-sets under Management” into account.

In spite of the challenging panorama estab-lished by Covid-19, the business model and

the team that supports it, sheltered by the technological infrastructure, allowed to ma-neuver under an outstanding execution to in-tegrate new Customers and incorporate the aforementioned portfolios.

The process of adaptation to the contingen-cy at the commercial and operational level of CIFondos implied reinforcing the security of human capital with the objective of maintain-ing business continuity, without modifying the collective performance and monitoring the financial health of the Customer portfolio in the event of possible defaults, with an unprec-edented communication dynamic; as a hall-mark of the robust effort to maintain a degree of control and attention.

During 2020, CIFondos maintained the same geographic coverage as in 2019, so that 10% of the Customers are from the interior of the Republic, mostly belonging to the Northeast, North and Bajío regions, specifically in the

states of Nuevo León, Jalisco, Nayarit and Sonora. The general distribution in terms of segments served during 2020, maintains a natural demand and is led by corporate clients with 87.6%, followed by governmental entities with 4.8%, non-bank financial institutions with 4.7% and finally with 2.9%, banking entities with 2.9%.

During the month of June 2020, due to the high demand presented by the ATMs by for-eign users, a new service project called DCC was integrated, this service allows internation-al Customers to process their transactions in the currency of origin of their card, be it debit or credit, making the currency conversion in real time. The Customer, when processing the transaction in the currency of origin of his card, knows with certainty the charges that will be made immediately, giving transparency to the transaction.

102-10

GRI

CICASH MULTICURRENCY HAS AN AGILE

AUTHORIZATION SYSTEM THAT ALLOWS IN MINUTES

TO HAVE AN ACTIVE PLASTIC READY TO BE

TRANSACTED.

39

DIGITAL BANKINGThe digitalization of banking is essential for business continuity, which is why we seek the continuous improvement of our digital tools and innovate with more services. In June 2020 we released the use of softtoken in the CIMóvil App, which reduces the need to go to the branches in case of loss or damage of the physical token, with softtoken only one call is needed to revoke and assign a new softtoken, which in turn reduces the use of plastics in the physical tokens. In only 6 months, 913 cus-tomers were migrated to softtoken, equivalent to 11% of the active customers in the App.

Our transaction level significantly increased thanks to almost four million transactions through electronic teller machines for conve-nience, especially abroad. And as we had fore-seen since 2019, transactions through digital means i.e., CINet and CIMobile, increased by 17% and 45% respectively. And in alignment to the pandemic situation and social distanc-ing transactions through branches decreased by 21%.

IN JULY 2020, A NEW “ HOME MONEY DELIVERY” SERVICE WAS IMPLEMENTED TO PROVIDE OUR CUSTOMERS WITH MORE FACILITIES AND SECURITY IN THE MANAGEMENT OF THEIR MONEY.

10,591,924Transactions in 2020vs 6,135,206 transactions during 2019

DIGI

TAL M

EDIA

TRAD

ITION

AL M

EDIA 20

192020ATM

BANK BRANCH

153

218

1,011,082

1,366,173

161

220

997,802

1,077,121

Owned ATMs, 251 under agreements

Branches

Total Transactions in owned ATMs Total Transactions in owned ATMs

Total Transactions 2019

Owned ATMs, 295 under agreement

RED BLU – 287CASHOLA – 8

799,032 transactions 2019 in ATMs under agreement

4,530,455 transactions 2020 in ATMs under agreement

ATMs propios

ATMs convenio

Branches in 83 cities

Total Transactions 2020

CI NET45,065

1,058,803

47,913

1,235,462Active Customers

Total Transactions 2019

Active Customers

Total Transactions 2020

17%

CI MOVIL7,684

1,900,116

9,786

2,751,084Active Customers

Total Transactions 2019

Active Customers

Total Transactions 2020

45%

-1%

467%

-21%

Var. % 2020/ 2019

Var. % 2020/ 2019

Var. % 2020/ 2019

Var. % 2020/ 2019

40

CYBERSECURITYDigital transformation is vital for the competi-tiveness and efficiency of the banking sector, but it also increases technological risks. In particular, cybercrime has increased in vol-ume and severity, especially in the wake of in-creased online operations in the wake of the pandemic. For this reason, the areas of cyber-security and information protection occupy an increasingly prominent position in the strategy and agenda of the Integral Risk Management Committee; details of the Committee’s initia-tives in these areas are published in the audit-ed report on the 2020 financial statements.

In general terms, in order to face external threats that may arise in this area, and to en-sure the integrity and confidentiality of infor-mation, the availability of computer systems and business continuity, CIBanco constantly monitors the technological environment and applications. In addition, CIBanco performs the pertinent analysis to adapt security proto-cols to new challenges and maintain the qual-ity standards of operation and service.

38%of the Bank’s transactions carried out digitally in 2020.

41

QUALITY AND CUSTOMER SERVICECustomer satisfaction is a material aspect for the Bank’s sustainability; for its measurement and control, surveys are developed since 2017, year in which it began to be reported as a performance indicator in the matter, it has averaged 97%. During 2020 the results were:

In the face of the health emergency, our pri-ority continues to be the satisfaction of our Customers, which is why some processes were renewed to remain close despite the dis-tance. Some services or processes that were only offered from branch offices can now be performed from home with a single email, always safeguarding the information of our customers with an identity validation process and the email itself.

5,186

114

95% 97%

5,072

surveys carried out in 2020 via email.

Internal

Satisfaction level

+37% CIAutomotriz

+19%CINet/CIDirecto

+20% Finanmadrid

-42%CICash Multicurrency

Satisfaction level

External

Professionalism.

Response Time.

Friendly Treatment.

Product Knowledge.

Simplicity of the Process.

SERVICE CHARACTERISTICS SURVEYED

VAR.

% 2

020/

2019

OF

NUMB

ER O

F CO

MPLA

INTS

AND

SUG

GEST

IONS

Procedures that you can now do from home:

Benefits:

CIAuto Credit Assistance.

Card Replacement.

Requests for Account Statements.

Prevent spread and contagion.

Maintain customer satisfaction.

CIBanco has a Customer Service mailbox through which complaints, concerns or re-quests related to the services offered are re-ceived. The Quality area is responsible for the punctual follow-up of each of the requests, which are entered into a matrix in order to per-form a qualitative and quantitative analysis thereof.

The detailed analysis of these requests allows us to detect areas of opportunity in the pro-cesses with the highest number of incidents and thus seek continuous improvement of the organization and its processes, together with the areas involved.

In 2020, the number of complaints filed in-creased in relation to the need to access services regularly offered in person, this is a generalized situation throughout the financial sector in the face of the health crisis, there-fore new means of digital access to services regularly offered in branches were provided in order to maintain the level of satisfaction and a quality service experience. Three products showed a significant variation in the number of complaints:

42

The financial products or services offered by CIBanco, whether new or already established, comply with the legal provisions on adver-tising, promotion, sales and labeling issued by the National Commission for the Protec-tion and Defense of Financial Services Users (Comisión Nacional para la Protección y De-fensa de los Usuarios de Servicios Financieros or Condusef) or other regulatory agencies, thanks to the oversight and review of such provisions by the New Products and Services Committee, chaired by the Bank’s Chief Exec-utive Officer.

Some of the functions of the New Products Committee are:

• Evaluate and approve long and short-term plans that allow managing and aligning Information Technology resources to CIBanco’s strategies and needs.

• Approve and follow up on the fulfillment of highly relevant projects.

• Approve and monitor compliance with the rules and regulations related to informa-tion security.

TRANSPARENT SALE OF PRODUCTS AND SERVICES102-11

GRI

44% INCREASE IN THE NUMBER OF FOLLOWERS IN SOCIAL MEDIA, A CHANNEL USED TO PROMOTE AND PROVIDE USEFUL FINANCIAL INFORMATION AND ADVICE.

43

MARKETINGThe promotion of CIBanco’s financial services and products is aligned with the legal provi-sions in force in the sector and its regulato-ry entities: the National Commission for the Protection and Defense of Financial Services Users (Condusef), the Bank of Mexico (Banx-ico) and the National Banking and Securities Commission (CNBV).

The sponsorships managed by CIBanco through the marketing area have a sports fo-cus and seek to position the brand among its target audience. In 2020, as in previous years, CIBanco sponsored La Etapa México and the Leon Golf Tournament, although some events were postponed due to the pandemic, CIBan-co maintained its support to guarantee the continuity of these events and the promotion of sports.

Also in 2020, the first donation was made from the sales of the CICash Pink credit card, the Bank’s first product with a social cause that seeks to support women with cancer by

providing financial support to first-tier foun-dations with this social purpose. CICash Pink was launched in 2019 with the promise to do-nate USD $10 for each card sold.

CIBanco’s promotional campaigns have the same objective and means of management as sponsorships, but are disseminated through social media; in 2020, two new accounts were opened: Linkedin and Instagram, allowing us to reach record numbers of followers, from 46,631 in 2019 to 66,974 in 2020, an increase of 44%.

38,180 41,312

187 315

8,264 9,362

14,993

992

Followers in 2019

Followers in 2020

Followers in 2019

Followers in 2020

Followers in 2019

Followers in 2020

Followers in 2020

Followers in 2020

Total followers during 2019

Total followers during 2020var 44%

46,631

66,974

8%

68%

13%

44

GREEN PRODUCTSEvery day, thousands of people and compa-nies rely on CIBanco to protect and grow their wealth in the face of the changing trends and challenges of the twenty-first century, through sustainable financial products and services that allow them to align the profitability of their finances with a positive impact on the environment.

Products such as CIPanel Solar and CIAu-to Verde have an impact on the reduction of emissions and promote the responsible use of resources. Using biodegradable cards and offering Sustainable Accounts that provide benefits to both Customers and our environ-ment allow CIBanco to privilege and promote sustainability as a business axis.

At the end of 2020, CIBanco’s total loan port-folio reached $10,581 million, out of which 2.3% was a green portfolio, that is, $253 mil-lion were green loans (CIAuto Verde and CI-Panel Solar) that generate direct and indirect benefits to the environment. Our most repre-sentative service products are:

It is a loan that favors with preferential rates the use of low-emission automobiles. A car is con-sidered low emission when it does not exceed 180 grams of CO2/km. CIBanco grants these loans to people who opt for a car which average emissions are 153 gr of CO2/km or less.

This loan makes it easier for homes and com-panies to use solar panels for self-supply of en-ergy and obtain economic benefits in the me-dium and long term. The average guarantee of the installations is 20 to 25 years and with the savings in electric energy, whoever acquires the solar panels will have a return on the investment in approximately 5 years.

CIAUTO VERDE CIPANEL SOLAR

623 504 14

9,880

2,092 14

$147,866,147 $78,996,146

$25,958,614

Loans granted in 2020 Loans granted to

individualsoans granted to companies

Loans granted between 2012 - 2020

Loans granted to individuals from 2012 - 2020

Loans granted to companies between 2012 - 2020

• Promotes and recognizes responsible consumers.

• Reduced emissions from lower gasoline consumption.

• More homes and companies with efficient and responsible energy consumption.

• Reduction of emissions due to less energy consumption.

Total portfolioTotal portfolio to individuals

Total portfolio to companies

GOAL 7.2Increase the proportion of renewable energy.

10%

31%

59%

CIPanel Solar

Companies 2020

CIPanel Solar

Individuals 2020

CIAuto Verde 2020

CIBA

NCO

2020

GREE

N PO

RTFO

LIO ($

253 M

ILLIO

N)

45

The cards delivered to CIBanco customers are made of BioPVC, a type of 100% oxo-biode-gradable PVC, which upon completion of its operating cycle allows the card to degrade in a more environmentally friendly way and does not generate methane gas, even in an oxygen-free environment. At the end of 2020, a total of 119 thousand credit and debit cards were delivered.

It is an account that offers investment benefits to its Clients, who in turn receive their account statements digitally, thus reducing the use of paper and printing. The total number of sustain-able accounts at the end of 2020 was 6,062 ac-counts.

BIODEGRADABLE CARD CICUENTA SUSTENTABLE

100% OF CIBANCO’S CARDS ARE MADE OF BIOPVC, CONTRIBUTING TO ODS 11 OF SUSTAINABLE CITIES CAPABLE OF REDUCING THE IMPACT OF THEIR WASTE AND POLLUTION.

GOAL 11.6

Goals

By 2030, reduce the per capita negative environmental impact of cities, with particular attention to air quality and municipal and other waste management.

46

SOCIETY We are aware that our

investments have impacts that transcend our financial

statements and contribute to the well-being of our employees and their families, our business

and social partners, and our communities in order to

promote Mexico’s full potential with freedom and stability.

Social investment

Adaptation to regulatory changesMAT

ERIA

L AS

PECT

S

“AN INCLUSIVE PRESENT, WHERE WE ASSUME OURSELVES AS CITIZENS OF THE WORLD AND CONTRIBUTE TO THE COMMON GOOD” Learn about our progress

and sustainable trajectory here.

47

FUNED AND FUNDACIÓN ALMA,

TWO NEW SOCIAL PARTNERS IN 2020.

WE ARE AFFILIATED TO SEVEN DIFFERENT NATIONAL AND INTERNATIONAL SUSTAINABILITY INITIATIVES

99% of our suppliers are national.

48

SOCIAL INVESTMENTThrough social allies, CIBanco manages re-sources to support social initiatives in align-ment with its corporate philosophy and val-ues. Since 2017 we started with a process to identify the impact of these contributions through a questionnaire, which is completed by the institutions that are supported with donations or social sponsorships each year; thanks to this monitoring, we can consolidate relationships of transparency, support and control that allow us to visualize the social impact that as a company we are generating in our community.

6,613,181Total donations

during 2020

2,046,495Community outreach

donations

2,173,979Donations to social

partners

2,392,707Sponsorships with cause

COMM

UNIT

Y LIA

ISON

DON

ATIO

NS This aspect includes all donations made to respond to the demands of social liaison pre-sented to CIBanco by local social organiza-tions, their purposes are diverse but are large-ly focused on solving temporary emergencies, an example in 2020 was the support of $1.3 million given to the DIF of the state of Tabas-co, which consisted of health and person-al hygiene equipment. These donations are not recurrent and are not followed up in the long term, due to their philanthropic nature. In 2019 this category gained important promi-nence with the contribution of $6.9 million for the modernization and refurbishment of CO-NADE’s Mexican Paralympic Center (Centro Paralímpico Mexicano).

This second area of social investment is fo-cused on Sports, as a detonator of wellbeing and social development, this approach is also shared with advertising sponsorship, the dif-ference being that this sponsorship is granted to non-profit organizations, which through the promotion of sports promote social causes. Sporting events were largely cancelled due to the pandemic, but CIBanco maintained its support to give continuity and backing to these social initiatives, an example of this were the Anáhuac Cups (Copas Anáhuac).

SPON

SORS

HIP W

ITH SO

CIAL

CAUS

ES

49

DONATIONS FOR SOCIAL ALLIES

In this last aspect, but no less important, are the support to social allies, which are non-prof-it civil organizations, that are supported in-dividually or as a guild due to the alignment of their social cause with the principles and social interests of CIBanco. Unlike commu-nity liaison donations, donations to allies are monitored for impact and are recurring. This year we integrated two new allies, get to know them:

In 2019, the CICash Pink card was launched and thanks to the sale thereof, support was given to Fun-dación Alma whose vision is: To build and rebuild lives through education programs for the timely detection of breast cancer from an early age and the perfor-mance of breast reconstruction surgeries in surviving patients, thus reducing the mortality rate of this dis-ease in our country.

Funded ProjectPrinting and dissemination of the book “El brasier de mamá”

Description of the projectWith the support of DIF Nopaltepec, Fundación Alma delivered copies of the book “El brasier de mamá” with the purpose of informing, orienting and raising aware-ness in society about what breast cancer is and how to detect it through self-examination. An impact anal-ysis by Fundación Alma has identified that for every book that enters a home, it is read by at least 5 people.

Amount of support in 2020$145,270

People benefited450 beneficiaries, equivalent to the number of copies delivered to children and teenagers in the municipality of Nopaltepec and its neighboring towns: San Felipe Teotitlán and San Miguel Atepoxco.

CIBanco, through its social allies, seeks to contribute to the present and future of Mexico, and the most ef-ficient way to achieve this is through education. In al-liance with Funed, higher education is promoted as a tool to forge a competitive society and solve the chal-lenges Mexico faces.

Funded ProjectFuned integrates in its support scheme international universities, CONACYT and institutions such as CI-Banco that seek to develop Mexican talent. The schol-arships awarded support young people for academic expenses, living expenses and travel.

Description of the projectOne person was sponsored to pursue a master’s de-gree, outside the country, in the field of sustainability.

Amount of support in 2020$187,060

FUNDACIÓN ALMA FUNED

50

The beneficiaries of the social initiatives in 2020 were 7,073 children and young people, slightly more than the almost 4,000 beneficia-ries of last year, who were supported with ed-ucation, culture, recreation and well-being ini-tiatives, throughout the Mexican Republic, and mainly in Mexico City. The distribution of in-vestment and beneficiaries can be seen below:

$675,000

$200,000

$145,270

$60,000

$200,000

$143,000

$33,298

$400,000

$187,060

$119,095

$11,256

720

18

450

5,762

N/R

15

N/R

N/R

1

104

3

2020 Investment

2020 Investment

2020 Investment

2020 Investment

2020 Investment

2020 Investment

2020 Investment

2020 Investment

2020 Investment

2020 Investment

2020 Investment

Beneficiaries

Beneficiaries

Beneficiaries

Beneficiaries

Beneficiaries

Beneficiaries

Beneficiaries

Beneficiaries

Beneficiaries

Beneficiaries

Beneficiaries

COPAS ANAHUAC

FUNDACIÓN BÉCALOS

FUNDACIÓN ALMA

JUGUETÓN

UNA NOCHE DE ARTE

FUNDACIÓN BECAR

SAVE DE CHILDREN

GRUPO DE LOS 16

FUNED

FUNDACIÓN QUIERA

RED FAMILIA

46% OF THE INITIATIVES SUPPORTED IN 2020 HAD A

REACH IN MEXICO CITY.

36%9%

9%

46%

NationalState of Mexico

Morelos

Mexico City

REACH OF SUPPORTED INITIATIVES IN 2020

51

VALUE CHAIN102-9, 102-10

GRIThe composition and distribution of our sup-ply chain in 2020 did not change significantly, even in the face of the Covid-19 contingen-cy. The objective of procurement, in addition to meeting operational needs, is to generate long-term, productive and mutually beneficial relationships with each of the suppliers that make up the supply chain.

The products and services we offer are con-ceived, managed and distributed with the ob-jective of generating the least impact on the environment; a clear example is the biode-gradable plastic of our cards.

We generate value to our supply chain by framing our bidding, selection, contracting, and approval processes in the quality and sus-tainability of the relationship, that is why our suppliers have certifications aligned to sus-tainability, according to their field of action, is relevant. We are aware that our suppliers are generators of employment and economic de-velopment, therefore we seek that our princi-ples transcend the business relationship and are lived through it.

In 2020, procurement expense increased by 13% from $1,569 million in 2019 to $1,803 million in 2020. Our supply chain consisted of 4,347 suppliers, 99% domestic and 1% for-eign. Spending on purchases was distributed in similar proportions, 97% were domestic pur-chases and 3% foreign.

THE SUPPLIER SELECTION AND CONTRACTING PROCESSES SEEK TO ENSURE THAT SUPPLIERS SHOW THEIR SOCIAL AND ENVIRONMENTAL COMMITMENT ACCORDING TO THEIR SPHERE OF INFLUENCE.

GOAL 17.16Promote sustainable public procurement practices.

97% of procurement expenses generate economic development and employment in Mexico.

52

RESPONSIBLE CORPORATECITIZEN

102-12 y 102-13

GRI

Since the change in our philosophy in 2012 and to date, we have voluntarily adopted rel-evant principles and protocols in our sector to promote its competitiveness, responsibility and sustainability, which in turn means devel-opment and well-being for Mexico.

In 2012, we were the first Mexican bank to adopt the Equator Principles, guidelines on en-vironmental risks for project finance. In 2016, we became signatories to the Sustainability Protocol of the Mexican Banking Association and are active members of the association. Also in 2016, we became signatories to the United Nations Global Compact in Mexico, and in 2019 we became signatories to the United Nations Environment Programme Finance Ini-tiative - UNEP FI (UNEP FI). CIBanco is also part of the Mexican Association of Security Companies (Asociación Mexicana de Insti-tuciones Bursátiles) and the French Mexican Chamber (Cámara Franco Mexicana).

PARTICIPATING IN ASSOCIATIONS ALLOWS US TO PRESENT OUR

POSITION TO THE AUTHORITIES AND TO ANTICIPATE AND RESPOND TO

POSSIBLE REGULATORY CHANGES.

EQUATOR PRINCIPLESEquator Principles Financial Institutions (EPFI for its acronym in Spanish).

GLOBAL PACTUnited Nations in Mexico.

SUSTAINABILITY PROTOCOLMexican Banking Association (ABM for its acronym in Spanish).

PRINCIPLES OF RESPONSIBLE BANKINGUnited Nations Environment Program Fi-nance Initiative UNEP-FI

GOAL 17.16Enhance the Global Alliance for Sustainable Development, complemented by multi-stakeholder partnerships.

53

ENVIRONMENTCIBanco has a responsible operation that controls and manages its emissions, chooses environmentally friendly supplies and energy sources, and promotes environmental awareness among all its stakeholders.

Emissions

Energy

PaperMAT

ERIA

L AS

PECT

S

“A PRESENT WHERE WE DEMONSTRATE OUR

LEADERSHIP BY PROMOTING AND SPONSORING THE

PROTECTION OF NATURAL SYSTEMS”.

See our 2011-2020 environmental footprint

history.

54

35% 11% 50% of the company’s branches operate with some form of renewable wind or solar energy.

reduction of greenhouse gas emissions.

of paper purchased is recycled.

55

WIND

POWE

R GE

NERA

TION ENERGY RECEPTION AND

DISTRIBUTIONThrough the Federal Electricity Commission (Comisión Federal de Electricidad or CFE).

707,081 kWhClean energy used during 2020

ENERGY USAGE WIND ENERGY RECEPTION PROCESS

220Branches

22,009

41,249 45,74259,330

81,79096,897

50,165

101,09196,347

112,461

March April May June July August September October November December

2%

84%

14%

Solar energy

Electricity from CFE

Wind energy STAGE / PROGRESS %

A ................................... 100%B .....................................92%C ................................... 100%D ..................................... 81%E ..................................... 77%F ..................................... 75%

56

STAGE STAGE NAME STAGE DESCRIPTION PROGRESS% By the end of 2020

A Communication adaptations completed

Branches that have the necessary adaptations so that a porting meter can have internet communication.

100%

B Electrical adaptations required

Branches that comply with the electrical work required by CFE for this type of project.

92%

C Delivery of meters to the CFE warehouses

Purchase and delivery of meters to CFE for installation.

100%

DInstallation of meters (CFE execution)

Branches that have a porting meter installed.

81%

EMeter communication to CFE server

Branches with installed meter that has a stable connection with the CFE server, which imports consumption data on a daily basis.

77%

FServices reconciled with CFE

Reconciliation of one consumption profile per month to enable energy reception.

75%

14%

11%

35%

of energy consumed by CIBanco in 2020 was wind energy, which meant:

less emissions in 2020

of our branches have a meter enabled for energy porting.

57

The protection of natural systems is every-one’s responsibility to guarantee our present and future. At CIBanco, this protection begins with our operation, we seek to make it environ-mentally friendly by using renewable energies, recycled and environmentally friendly materi-als to reduce our emissions and thus those of our customers and employees, contributing to the well-being of all.

ENVIRONMENTAL FOOTPRINT

856 KGCO₂E EMITTED BY EACH CIBANCO EMPLOYEE IN 2020, A 9% REDUCTION COMPARED TO THE PREVIOUS YEAR.

Since 2011, we have been preparing our en-vironmental footprint report in order to iden-tify the impact of our operation and report in a transparent and voluntary manner the most relevant material and energy flows in the oper-ation; the report also considers the consump-tion of paper, fluids used in the operation of air conditioning and commercial flights, as shown in the following illustration:

National Electrical Network

Air transportation supplier

Land transportation supplier

Waste and wastewater management

Paper recycling

Chemical industry for refrigeration

Fossil fuel industry

INSTALLATIONS

EMER

GENC

Y P

OWER PLANTS AIR CONDITIONING

PAPER ELECTRICITY

INTERNAL OPERATIONS

INTERNAL OPERATIONS

Megabins for paper collection for recycling

Solar panels fo

r s

elf-ge

nera

tion

Vehic

le fl e

et

Outsourced transportation services

Wind energy farms

Limits of the analysis

58

EMISSIONS103-1 103-2, 103-3, 305-1, 305-2 y 305-3

GRICIBanco’s total emissions in 2020 were 2,583 tons of carbon dioxide equivalent (tCO2e). Compared to the previous year, emissions show a decrease of 11%.

83% OF EMISSIONS CORRESPOND TO SCOPE 2,

11% TO SCOPE 1, AND 6% TO SCOPE 3, PRACTICALLY THE

SAME PROPORTIONS AS IN THE PREVIOUS YEAR.

2,122

429

32

2,406

314

169

2,620

262

119229

213

197

201820192020

Number of facilities

SCOPE 1

Includes emissions from the combustion of diesel fuel used in emergency plants, and from LPG and gasoline used in Bank-owned vehi-cles. It also includes fugitive emissions from the operation of air conditioning equipment.

SCOPE 2

Refers to indirect emissions derived from the consumption of electricity from the national electrical system.

SCOPE 3

Includes emissions from outsourced transpor-tation, specifically from commercial flights.

Fuel consumption decreased significantly, as did the number of flights due to the Covid-19 pandemic. But in terms of energy consump-tion there was a slight increase of 4%, the rel-evant point is that 16% of this consumption was renewable energy from a wind farm (14%) and solar panels (2%).

GOAL 13.2Incorporate measures against climate change.

59

SCOPE 1: DIRECT EMISSIONS

In 2020, Scope 1 emissions totaled 429 tCO2e. Emissions from refrigerant gases accounted for just over 70% of the total, while gasoline and LPG consumption for transportation emit-ted the rest. Emissions from diesel consumed in emergency generation plants are very small: barely 1%.

SCOPE 2: ELECTRICITY CONSUMPTION

In 2020, CIBanco purchased 0.7 million kWh from wind farms, reducing 14% of the total consumption it would have made from the CFE network. Emissions reduced by this action are estimated at around 350 tCO2e. In addition to purchasing wind energy, CIBanco self-pro-duces part of its annual consumption. During 2020 it generated 0.1 million kWh of solar en-ergy, 2% of its total electricity consumption.

SCOPE 3: VALUE CHAIN

Scope 3 comprises emissions from the use of commercial flights for the bank’s operations. Emissions in 2020 were 32 tCO2e from 170 flights, the vast majority domestic. Compared to the previous year, these emissions de-creased substantially from about 170 to just over 30 tCO2e.

72%57%

38%

27%1%

2% 2%

1%

Refrigerants

Other facilities

Palmas Corporate –

Metropolitan

Mobile sources

Baja California

Northwest BajíoRegional Center

Stationary sources

305-1 305-2 305-3

60

ENERGYThe total energy consumed in 2020 was 20 million MJ. CFE electric power consumption accounts for 77% of all MJ consumed, pur-chased wind power 14%; gasoline and LP gas consumption follows with 9%. Diesel is less than 1%. For its part, renewable solar ener-gy production accounted for 2% of total con-sumption.

During 2020, 108 MWh of solar energy was generated at four sites: Leon, Monterrey, Gua-dalajara and Cancun. CIBanco began generat-ing solar energy at its facilities since 2015 in the southeast region. Subsequently, in 2017, equipment was installed in the western region and, at the end of 2018 and beginning of 2019, 37.05 kW were installed in the Bajío region and 21.45 kW in the Northwest region. During 2020, production was reduced due to changes in the Cancun facility being reconfigured at an-other site.

Starting in March and despite the pandemic, CIBanco began porting renewable energy to replace consumption from the convention-

103-1 103-2, 103-3 y 302-1

GRI

al CFE network. It purchased 2.5 million MJ, representing 14% of the total electricity con-sumed. 76 facilities are already supplied with wind energy; the average contribution is 39% of total electricity.

DISTRIBUTION OF ENERGY

CONSUMPTION

9%

14%

77%

2%

Energy for transportation

Purchased renewable electricity

Electricity CFE

Solar energy

POWER SOURCE*. 2019 2020 VAR%

Diesel 41,693 30,512 -27%

LP Gas 91,453 21,065 -76%

Gasoline 2,266,275 1,585,243 -30%

Electric energy 17,150,267 15,461,626 -10%

Wind energy -- 2,545,492 --

Solar energy 518,061 387,934 -25%

Total energy consumed 20,067,749 20,031,873 -0.2%

*Figures expressed in MJ

EMISSIONS REDUCED BY SELF SUPPLY OF PURCHASED WIND ENERGY ARE EQUIVALENT TO NEARLY 350 TCO2E, WHILE THOSE FROM SOLAR ENERGY PRODUCTION TOTAL 53 TCO₂E.GOAL 7.2

By 2030, significantly increase the share of renewable energy in the total energy mix.

61

PAPERCIBanco promotes environmental protection among its employees with concrete actions, so in addition to installing water dispensers and a double-sided printing policy, more than three years ago it installed mega mailboxes for the disposal and collection of paper in four region-al centers in the cities of Querétaro, Monterrey, Guadalajara and Mexico City. During 2020, em-ployees collected 2.2 tons of paper for recy-cling. In addition, 50% of the paper purchased during the year comes from recycled paper.

103-1, 103-2, 103-3 y 301-1

GRI

DURING 2020, 2.2 TONS OF PAPER WERE

COLLECTED FOR RECYCLING, EQUIVALENT

TO 5% OF THE TOTAL PAPER CONSUMED.

PAPER (TON) 2019 2020 VAR%

Paper consumed 57 47 -18%

Paper for recycling 4.4 2.2

Paper recovered 7% 5% -37%

GOAL 12.5By 2030, significantly reduce waste generation through prevention, reduction, recycling and reuse activities.

Scope 1 emissions are those derived from direct fuel con-sumption (gasoline, LP gas and diesel) and fugitive emis-sions from air conditioning equipment with refrigerants of some level of global warming potential, as defined by the GHG Protocol. The greenhouse gases resulting from this scope are carbon dioxide (CO2), methane (CH4), nitrous ox-ide (N2O) and refrigerant gases (HCFC-22, HFC-32, HFC-125 and CFC-12). The calorific values were taken from the list of fuels and their calorific values 2021 published by SENER; the emission factors and global warming potentials used were

Finally, Scope 3 emissions are those derived from air travel and in this case the methodology used by the International Civil Aviation Organization (ICAO) was used. As in the case of Scope 2, the calculated emissions are given only in terms of CO2e. The calculation was made considering the approach of previ-ous years. There were no changes in the methodology used for the consolidation of issues, which is financial control.

those reported in the Agreement that establishes the green-house gases or compounds that are grouped together for the purposes of reporting emissions, as well as their warming potentials, published by Semarnat. Scope 2 emissions are those from the production of electric-ity consumed at the facilities, expressed in carbon dioxide equivalent (CO2e). The calculation considered the emission factor of Mexico’s national electricity network during 2020 reported by Semarnat.

METHODOLOGICAL NOTE

62

Build your present, is CIBanco’s sixth sustain-ability report with the Global Reporting Initia-tive (GRI) methodology, on this occasion it was prepared in accordance with the Essen-tial option of the GRI Standards, and for the fourth consecutive year it has external verifi-cation. As of 2016, the reports are prepared annually, the previous one being published in August 2020.

This report does not present significant changes with respect to the previous year in terms of the period covered, the organization of the content or the coverage of the topics.

This report includes all the entities that make up CIBanco in Mexico, CIBanco’s main coun-try of operation. All the material actions and issues described here make up the most relevant actions and initiatives in terms of sustainability and social responsibility of the company in the reporting period (January to December 2020).

The content of this report was determined by the materiality study conducted in 2017, in

ABOUT THIS REPORT102-42, 102-43, 102-44, 102-46, 102-49, 102-50, 102-51, 102-52, 102-54

GRI

alignment with the principles established by the new GRI standards that reflect the most important ethical, social, environmental and economic aspects for CIBanco under two per-spectives: influence on stakeholder decisions and relevance for the company. All issues were validated by the Sustainability Depart-ment and have internal coverage.

See the results of the employee survey or

more details on the 2017 materiality study in the 2017 Report (pages 14 - 16) here.

GOAL 12.6Encourage companies, especially large companies and transnational corporations, to adopt sustainable practices and incorporate sustainability information in their reporting cycle.

63

The 18 material issues reported here reflect the Bank’s most significant internal and exter-nal economic, environmental and social im-pacts, allowing stakeholders to evaluate the Bank’s performance, as each issue is report-ed with accuracy, balance, clarity, comparabil-ity, reliability and timeliness.

The following chart illustrates CIBanco’s ma-terial issues, their relevance to stakeholders and their importance to the business:

This and previous reports are an example of compliance with SDG 12 Responsible Con-sumption and Production and Goal 12.6: En-courage businesses, especially large compa-nies and transnational corporations, to adopt sustainable practices and incorporate sus-tainability information into their reporting cy-cle.

Our reports are also an example of our com-mitment to transparency towards our stake-holders, as are all the means of communica-tion and feedback we have for each of them that allow us to recognize and meet their ex-pectations, and by this means communicate our progress and challenges.

For more information about this report or about issues related to CIBanco’s sustainabil-ity, please contact us by the following means:

jbrunel@cibanco.com

Website

Customer satisfaction

Brand and reputation management

Transparency in corporate governance management

Technology and innovation in product development

Talent development and retention

Energy consumption and savings

Risk management

Ethical behavior

Cybersecurity

Behavior and adaptation to

regulatory changes

Family and work life Volunteer programs

Emissions generation and control

Paper consumption and savings Performance evaluation

and incentives

Regulatory, technical and sustainability

training

Remuneration System

Economic and financial performance

R E L E VA N T

R E L E VA N T

SHAREHOLDERSFace-to-face meetings, telephone and e-mail.

COLLABORATORSAnonymous complaint mailbox, CINews corporate magazine, website, social networks, internet, whiteboards, email and our CICotiza app.

CUSTOMERSCall center, direct dialogue with executives, website, social networks, CIDirecto Telephone Banking, our CIMobile app, email and surveys.

SOCIETYWebsite, social networks, events and email.

SUPPLIERSReports, direct relationship, email and telephone support.

AUTHORITIESOfficial meetings through the legal area, reports and audits.

Periodic communicationIMPO

RTAN

CE T

O ST

AKEH

OLDE

RS

I M P O R TA N C E T O T H E B A N K

102-47 y 102-53

102-40

64

EXHIBITSGRI Table of ContentsVerification LetterEquator Principles

65

GRI TABLE OF CONTENTS

CONTENTS DESCRIPTIONPAGE NO. / DIRECT RESPONSE

OMISSION

G R I 1 0 2 : O R G A N I Z A T I O N P R O F I L E 2 0 1 6

102-1 Name of the organization 5

102-2 Activities, brands, products and services 5, 36

102-3 Location of headquarters 5

102-4 Location of operations 37

102-5 Ownership and legal form 5

102-6 Markets served 36 y 37

102-7 Size of organization 37 y 38

102-8 Information about employees and other workers 21 y 22

102-9 Supply chain 52

102-10 Significant changes in the organization and its supply chain.

39 y 52

102-11 Precautionary principle or approach 14, 15, 16 y 43

102-12 External initiatives 53

102-13 Membership in associations 53

102-55

GRI

CONTENTS DESCRIPTIONPAGE NO. / DIRECT RESPONSE

OMISSION

2. STRATEGY:

102-14 Statement from senior executives responsible for decision making

2 y 3

102-15 Key impacts, risks and opportunities 2, 3, 14 y 15

3. ETHICS AND INTEGRITY:

102-16 Values, principles and standards of conduct 13

102-17 Advisory mechanisms and ethical concerns 13

4. GOVERNANCE

102-18 Governance structure 9

102-19 Delegation of authority 9

102-20 Executive-level responsibility for economic, environmental, and social issues

14, 15 y 16

66

CONTENTS DESCRIPTIONPAGE NO. / DIRECT RESPONSE

OMISSION

102-22 Composition of the highest governance body and its committees.

9, 10, 11 y 12 Directors’ seniority, po-sitions or commitments outside CIBanco are confi-dential and personal infor-mation of each director.No director is affiliated with underrepresented groups or uniquely rep-resents a specific interest group on the Board.

102-23 Chairman of the highest governing body 9The Chairman of the Board does not hold any executive position within the Bank.

5. STAKEHOLDER ENGAGEMENT

102-40 Collective bargaining agreements 64

102-41 Stakeholder identification and selection Omission due to confidentiality of information

102-42 Approach to stakeholder engagement 63 y 64

102-43 Key issues and concerns raised 63 y 64

102-44 Key issues and concerns raised 63 y 64

CONTENTS DESCRIPTIONPAGE NO. / DIRECT RESPONSE

OMISSION

6. REPORTING PRACTICES

102-45 Entities included in the consolidated financial statements. 5

102-46 Definition of reporting content and Subject Matter Coverage

63 y 64

102-47 List of material topics 64

102-48 Restatement of information No restatement of figures compared to what was reported in 2019.

102-49 Changes in reporting No representative changes were made compared to the previous year’s report.

102-50 Reporting period 63

102-51 Date of last report 63

102-52 Reporting cycle 63

102-53 Contact point for questions about the report 64

102-54 Statement of GRI Standards-compliant reporting. 63

102-55 GRI Content Index 66-71

102-56 External Verification 72-73

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MATERIAL ASPECT CIBANCO

GRI STANDARD TITLE

CONTENTS CONTENT TITLE PAGE NO. / DIRECT RESPONSE OMISSION

Economic performance

Management approach

103-1Explanation of the material aspect and its Coverage

36

103-2 The management approach and its components 36

103-3 Evaluation of the management approach 36

Economic

performance201-1 Direct economic value generated and distributed 36 y 38

Ethical Behavior

Management approach

103-1 Explanation of the material topic and its Coverage 16

103-2 The management approach and its components 16

103-3 Evaluation of management approach 16

Anticorruption 205-1 Operations assessed for corruption-related risks 16

Talent development and retention

Management approach

103-1 Explanation of the material topic and its Coverage 21

103-2 The management approach and its components 21

103-3 Evaluation of the management approach 21

Employment 401-1 New employee hires and employee turnover 22

Training and

Education404-2

Programs to improve employee skills and transition assistance programs

30

68

MATERIAL ASPECT CIBANCO

GRI STANDARD TITLE

CONTENTS CONTENT TITLE PAGE NO. / DIRECT RESPONSE OMISSION

Performance and incentives evaluation

Management approach

103-1 Explanation of the material topic and its Coverage 33

103-2 The management approach and its components 33

103-3 Evaluation of the management approach 33

Training and

Education404-3

Percentage of employees receiving regular performance and career development reviews

33

Paper consumption and savings

Management approach

103-1 Explanation of the material topic and its Coverage 62

103-2 The management approach and its components 62

103-3 Evaluation of the management approach 62

2016 Materials 301-1 Materials used by weight or volume 62

Energy consumption and savings

Management approach

103-1 Explanation of the material topic and its Coverage 61

103-2 The management approach and its components 61

103-3 Evaluation of the management approach 61

2016 Energy 302-1 Energy consumption within the organization 61

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MATERIAL ASPECT CIBANCO

GRI STANDARD TITLE

CONTENTS CONTENT TITLE PAGE NO. / DIRECT RESPONSE OMISSION

Generation and control of emissions

Management approach

103-1Explanation of the material aspect and its Coverage

59 y 60

103-2 The management approach and its components 59 y 60

103-3 Evaluation of the management approach 59 y 60

2016 Emissions

305-1 Direct GHG emissions (Scope 1) 60

305-2Indirect GHG emissions from energy generation (Scope 2)

60

305-3 Other indirect GHG emissions (Scope 3) 60

Family and work life

Management approach

103-1 Explanation of the material topic and its Coverage 27

103-2 The management approach and its components 27

103-3 Evaluation of the management approach 27

2016 Employment 401-2Benefits for full-time employees that are not provided to part-time or temporary employees.

27

70

MATERIAL ASPECT CIBANCO

GRI STANDARD TITLE

CONTENTS CONTENT TITLE PAGE NO. / DIRECT RESPONSE OMISSION

Training

Management approach

103-1 Explanation of the material topic and its Coverage 30

103-2 The management approach and its components 30

103-3 Evaluation of the management approach 30

Training and

Education 404-1 Average hours of training per year per employee 30

Risk management

Management approach

103-1 Explanation of the material topic and its Coverage 14

103-2 The management approach and its components 14

103-3 Evaluation of the management approach 14

Organization

profile102-30 Effectiveness of risk management processes 14, 15 y 16

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VERI

FICAT

ION

LETT

ER102-56

GRI

MADRID - A CORUÑA AMSTERDAM – LONDRES – PARIS

ISTANBUL – CIUDAD DE MÉXICO - QUITO

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Independent Review Report on the Contents of the Global Reporting Initiative (“GRI”) Standards

(Translation from Spanish Language Original). This letter has been translated from the Spanish language original and for the convenience of foreign/English-speaking readers – in case of discrepancy, Spanish prevails.

To the Management of CIBANCO, S.A., Institución de Banca Múltiple

We were required by CIBANCO, SA, Institución de Banca Múltiple (hereinafter “CIBanco”), to provide a limited level of assurance on the corresponding information contained in the 2020 Sustainability Report (hereinafter the “Sustainability Report”) (the Principal Matter”) of CIBanco, in accordance with the content proposed by the Global Reporting Initiative standards (GRI Standards or the "Criteria"), which is detailed in Appendix 1, for the period from January 1st to December 31st 2020.

CIBanco responsibilities

CIBanco is responsible for preparing the information subject to our review of the Sustainability Report, including compliance with the requirements of the conformity in the application of the GRI Standards, it is free from material deviations, in accordance with the Criteria and the information contained therein.

CIBanco is responsible for the design, execution, and maintenance of internal control considered necessary to allow the information contained in the Sustainability Report to be free from material misstatement, due to fraud or error.

CIBanco is responsible for preventing and detecting fraud and for identifying and ensuring compliance with the laws and regulations applicable to its activities. Likewise, it is responsible for ensuring that the personnel involved in the preparation of the Sustainability Report, as well as the information systems, are duly updated, being responsible for any change in the presentation of data and / or in the way of reporting the reporting units.

Valora responsibilities

Our responsibility consisted in carrying out a limited review of the Sustainability Report in terms of the verified criteria, listed in Appendix 1 of this Independent Review Report of the GRI Standards.

In order to ensure that the verification process complies with the ethical requirements necessary to ensure the independence of our work as auditors of non-financial information, our work was developed in accordance with the ISAE3000 Standard, Assurance Engagements other than Audits or Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standard Board (IAASB) of the International Federation of Accountants (IFAC), which requires that we plan and carry out our procedures to obtain a limited level of assurance or reliability regarding the indicators subject to review, prepared in all material aspects, in accordance with the Criteria, for the period from January 1st to December 31st, 2020.

The procedures selected depend on our understanding and experience of the Criteria presented in CIBanco's Sustainability Report and other work circumstances, and our consideration of the areas in which material errors are likely to arise.

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ISTANBUL – CIUDAD DE MÉXICO - QUITO

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Our work also includes evaluating the appropriateness of the Criteria, the suitability of the criteria used by CIBanco, evaluating the appropriateness of the circumstances, but not to express a conclusion regarding the effectiveness of CIBanco's internal control environment. As part of this work, we have not performed any procedures to audit, review or verify the Sustainability Report or the underlying records or other sources from which the information in the Sustainability Report was extracted. The procedures selected depend on our judgment, including the assessment of risks of material error in the Emissions Inventory, due to fraud or error. Scope

The scope of our independent review, as well as the evidence gathering procedures performed, was limited to security, which is less than reasonable security work and therefore also the level of security provided. This report should in no way be understood as an audit report.

The procedures that were carried out are described below:

• Selection of information to verify based on the materiality and prior knowledge of the company. • Review of the data collection, internal control, and consolidation process. • Review of the coverage, relevance and integrity of the information included in the Report based on the operations and material aspects previously

identified. • Review of evidence based on a sampling of the information. • Review of the application of what is required in accordance with the GRI Standards.

Conclusion

Based on our review and the evidence presented by CIBanco, nothing caught our attention to believe that the information contained in the Sustainability Report 2020, for the period from January 1st to December 31st, 2020, has not been provided under reliability, was not adequately presented, that were significant deviations or omissions, or has not been prepared in accordance with the requirements established by the Global Reporting Initiative standards.

We consider that the evidence we have obtained provides a sufficient and adequate basis for our conclusion.

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ISTANBUL – CIUDAD DE MÉXICO - QUITO

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Restriction of use of our report and others

Our report should not be considered adequate to be used or considered by any of the parties who wish to acquire rights against us other than the Board of Directors and the Sustainability department of CIBANCO, S.A., Institución de Banca Múltiple, for any purpose or any other context. Any party other than the Board of Directors of CIBANCO, S.A., Institución de Banca Múltiple that obtains access to our report or a copy of it and chooses to rely on our report (or any part of it) will do so at their own risk. To the extent permitted by law, we do not accept or assume any responsibility and deny any responsibility for our work to any party other than CIBANCO, S.A., Institución de Banca Múltiple, for this independent limited security report or for the conclusions to which we have arrived.

Valora Sostenibilidad e Innovación S.A. de C.V.

Luis Miguel Vilatela Riba General Manager Valora México Mexico City, august 06, 2021

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Our report is issued to CIBANCO, S.A., Institución de Banca Múltiple on the understanding that this report should not be copied, nor refer to it or disclosed in whole or in part without our prior written consent.

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Appendix 1. Detail of the revised GRI Standards.

End of the document

Disclosure Description Disclosure Description 102 - 1 Name of the organization 102 - 22 Composition of the highest governance body and its committees102 - 2 Activities, brands, products and services 102 - 23 Chair of the highest governance body102 - 3 Location of headquarters 102 - 30 Effectiveness of risk management processes102 - 4 Location of operations 102 - 40 List of stakeholder groups102 - 5 Ownership and legal form 103 - 41 Collective bargaining agreements102 - 6 Markets served 102 - 42 Identifying and selecting stakeholders 102 - 7 Scale of the organization 102 - 43 Approach to stakeholder engagement102 - 8 Information on employees and other workers 102 - 44 Key topics and concerns raised102 - 9 Supply Chain 103 - 45 Entities included in the consolidated financial statements

102 - 10 Significant changes to the organization and its supply chain 102 - 46 Defining report content and topic Boundaries102 - 11 Precautionary Principle or approach 102 - 47 List of material topics102 - 12 External initiatives 102 - 48 Restatements of information102 - 13 Membership of associations 102 - 49 Changes in reporting 102 - 14 Statement from senior decision-maker 102 - 50 Reporting period102 - 15 Key impacts, risks, and opportunities 102 - 51 Date of most recent report102 - 16 Values, principles, standards, and norms of behavior 102 - 52 Reporting cycle102 - 17 Mechanisms for advice and concerns about ethics 102 - 53 Contact point for questions regarding the report 102 - 18 Governance Structure 102 - 54 Claims of reporting in accordance with the GRI Standards102 - 20 Executive-level responsibility for economic, environmental, and social topics 102 - 55 GRI content index

103 - 56 External assurance

201 - 1 Direct economic value generated and distributed 401 - 1 New employee hires and employee turnover205 - 1 Operations assessed for risks related to corruption 401 - 2 Benefits provided to full-time employees

404 - 1 Average hours of training per year per employee404 - 2 Programs for upgrading employee skills and transition assistance programs

404 - 3 Percentage of employees receiving regular performance and career development reviews

301 - 1 Materials used by weight or volume302 - 1 Energy consumption within the organization305 - 1 Direct (Scope 1) GHG emissions305 - 2 Energy indirect (Scope 2) GHG emissions305 - 3 Other indirect (Scope 3) GHG emissions

GRI Standards

General disclosures

Environmental disclosures

Social disclosuresEconomic disclosures

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EQUATOR PRINCIPLES REPORT 2020

The management of CIBanco’s business, products and services is subject to the volun-tarily acquired commitment to privilege sus-tainability. The ultimate goal of this commit-ment is to promote and safeguard respect for the environment and people, and in this sense we present the eighth Equator Principles IV report for non-designated countries, covering the period between January 1, 2020, and De-cember 31, 2020.

Since joining the Equator Principles in 2012, procedures have been developed for the iden-tification, evaluation and monitoring of social and environmental risks arising from our ac-tivity with Customers, for their monitoring and control according to their level or category of impact.

The Equator Principles are a set of ten guide-lines under which adopting financial institu-tions commit, on a voluntary basis, to assess and take into consideration the social and en-

vironmental risks associated with the invest-ments they finance, in order to ensure the sus-tainability of the activities financed.

These Principles were established in 2003 with the support of the International Finance Corporation (IFC) of the World Bank. As of August 2020, they have been adopted by 109 financial institutions in 38 countries. Since October 1, 2020, version IV of the Equator Principles has come into force, whose most significant changes are:

• Expanded the scope of application, reduc-ing the amount for Project-Linked Corpo-rate Loans to USD 50 billion, added project refinancing and acquisitions provided they meet certain requirements (the original project was financed under the Equator Principles, there are no material changes to the scope of the project).

• New aspects related to Human Rights are added.

• Follow-up to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) on Climate Change.

Climate change risks are classified into phys-ical risks and transition risks. The former arises as a result of climatic and geological events and changes in the balance of ecosys-tems and can be gradual or abrupt. They may involve physical damage to assets (infrastruc-ture, real estate), disruptions in production or supply chains and/or changes in the produc-tivity of economic activities (agriculture, ener-gy production).

On the other hand, transition risks are asso-ciated with the fight against climate change and the transition to a low-carbon economy. They include factors such as changes in reg-ulations and standards, the development of alternative energy-efficient technologies, changes in market preferences or reputation-

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al factors associated with the activities with the greatest impact.

To incorporate these new guidelines and other recommendations, CIBanco, with the support of a team of external experts, implemented the first phase of the Environmental and So-cial Risk Analysis and Climate Scenarios proj-ect in the second quarter of 2020. This project will have several phases of development over the following years and will allow us to update internal processes and policies to ensure that the business model remains aligned with sus-tainability.

However, the process for the evaluation of in-vestment projects or loans in excess of US$10 million in accordance with the Equator Princi-ples remains unchanged, because although the guidelines to be evaluated in terms of hu-man rights and climate change have been in-creased, the actors and principles involved in the evaluation remain the same.

The process followed at CIBanco for monitor-ing and compliance with these Principles is as follows:

EQUA

TOR

PRIN

CIPL

ES IM

PLEM

ENTA

TION

Corporate loan

Follow-up by independent auditor in conjunction with CIBanco’s sustainability area of the action, prevention or mitigation plans submitted by the Customer.

Loan denial.

AREAS

RESOLUTION

Financial project with significant negative impact and higher risk.

CATEGORY A

Financial project with a lower risk negative impact.

CATEGORY B

Financial project with little or no impact on the environment.

CATEGORY C

Sustainability.

Identification of financial projects in excess of USD 10 million

Follow up of sustainability area of CIBanco.

Review with independent socio-

environmental experts of the highlighted risks. Review with

independent socio-environmental experts

of the highlighted risks.

Application of Form 2 Socio-environmental Questionnaire.

Definition of risk type A, B or C.

7 7

The Bank’s Sustainability Department is re-sponsible for the implementation of the Prin-ciples and, with the support of the Corporate Loan area, the same applies to loans in excess of US$ 10 million. If the loan actually reaches or exceeds this amount, it proceeds to:

Project categorization

The categorization of projects involves the application of a questionnaire to assess the social and environmental risks and to define whether the proposed operation or project presents a high, medium or low probability of incurring in negative environmental or social risks, or having high, medium or low conse-quences that could affect natural resources: Risk A (high), Risk B (low) and Risk C (low or no risk), for more information review the Project Category Exhibit.

Environmental and social risk assessment

Depending on its category, the customer must conduct or not, an environmental and social assessment of the project (category A and category B) and develop an Action Plan that demonstrates how impacts and risks are miti-gated and controlled, disclose information and consult with the project’s affected communi-ties, and establish a grievance mechanism, as appropriate.

This categorization and evaluation are carried out with the support of independent experts, not linked to CIBanco or the Clients, in order to objectively evaluate and control the compli-ance of the projects.

Equator Principles Report 2020

During 2020, CIBanco did not grant loans in excess of $10 million. CIBanco’s loan portfo-lio does not present environmental risks and is consistent with Mexican environmental laws and regulations.

CATEGORY

Total

Sector 0

General manufacturing 0

Infrastructure 0

Oil & Gas 0

Energy 0

Transportation 0

Region

America N/A

Europe N/A

Asia N/A

TOTAL CATEGORY A CATEGORY B CATEGORY CSector 0 0 0General manufacturing 0 0 0Infrastructure 0 0 0Oil & Gas 0 0 0Energy 0 0 0Transportation 0 0 0

RegionAmerica N/A N/A N/AEurope N/A N/A N/AAsia N/A N/A N/A

By country designationDesignated N/A N/A N/ANot designated N/A N/A N/A

Independent ReviewYes N/A N/A N/ANo N/A N/A N/A

TOTAL CATEGORY A CATEGORY B CATEGORY CSector 0 0 0General manufacturing 0 0 0Infrastructure 0 0 0Oil & Gas 0 0 0Energy 0 0 0Transportation 0 0 0

RegionAmerica N/A N/A N/AEurope N/A N/A N/AAsia N/A N/A N/A

By country designationDesignated N/A N/A N/ANot designated N/A N/A N/A

Independent ReviewYes N/A N/A N/ANo N/A N/A N/A

PROJECT FINANCE ADVISORY SERVICES

FINANCIAL PROJECTS PROJECT-RELATED CORPORATE LOANS

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CIBanco has exclusion criteria and with these we refer to those products, services or pro-ductive processes that question a sustainable development of society. In this sense, CIBan-co does not finance projects or undertakings that contribute more than 10% of their activity in the following areas:

Non-sustainable businesses:• Environmentally hazardous substances.

Organizations and activities that produce or sell substances that pose a risk to hu-man life or the environment.

• Pornography. Organizations that sell por-nographic products and/or are involved in activities that promote prostitution.

• Tobacco. Organizations and activities that produce or sell tobacco products or relat-ed products.

• Weapons industry. Organizations and ac-tivities that produce and sell weapons and provide weapons-related services. They include conventional weapons, such as firearms and rockets, and non-convention-al weapons, such as nuclear, chemical, bi-ological weapons and integrated weapons systems.

Non-sustainable processes:• Intensive agricultural production. Organi-

zations and activities that use animals in-tensively for consumption that are not en-vironmentally friendly and do not protect animals. Loans will be granted only to or-ganizations with ecological certification.

• Corruption. Organizations that have been convicted in court for corruption, bribery and money laundering, as well as those entities that have violated codes of con-duct or treaties in the last three years.

• Animal testing. Organizations and activi-ties that use animal testing for non-medi-cal purposes, or that sell non-medical prod-ucts that have been tested on animals.

EXCLUSION CRITERIA PROJECT CATEGORY EXHIBIT

RESULT PROPOSED CATEGORY COMMENTS AND PROPOSED ACTIONS

If you answer YES to one or more of the questions marked with A

A

The operation has a high probability of negative environmental and social impacts, with a significant impact on natural resources, and is classified as level A (High Risk).

The operation must be referred to the Sustainability Committee and the necessary studies or agreements must be consulted:• Environmental Assessment• Environmental Management Plan• Environmental Impact Assessment• Strategic Environmental Assessment• Stakeholder consultation• Information availability requirements• Monitoring (periodic reports)• Socio-environmental risk clauses

If you answer YES to one or more questions marked with a B

B

The operation has a high probability of having local and short-term environmental and social impacts, for which there are effective and accessible mitigation measures; therefore, it is classified as level B (Medium Risk).

The operation should be referred to the Sustainability Committee and any necessary studies or agreements should be consulted:• Environmental and social analysis of identified issues• Environmental Management Plan• Stakeholder consultation• Monitoring requirements (periodic reporting)

If you answer NO to all questions C

It would be an operation with a low probability of presenting an environmental-social impact. It is classified in category C (Low Risk).

It does not require approval

When there is a controversy of level A or B categorization, the category is defined by the sustainability area.

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CIBanco S.A. Institución de Banca Múltiple55 1103 1220

www.cibanco.com