Transcription
Impacto SocioeconómicoCreating opportunitiesAnnual Report162016 Annual Report1
2BBVA Bancomer
IndexIndexAbout this ReportGroup ProfileGroup Profile Corporate Philosophy Mission and Vision Corporate Governance Corporate Governance System Corporate Structure Management Committee Board of Directors Code of Conduct Business Model Materiality and Dialog with Stakeholders Tools for Consultations and Discussions with Stakeholders Materiality Analysis Materiality matrix and material issues 2016 Responsible business model Social, environmental and reputational risks Ecorating Equator Principles Anti-money Laundering and PreventingFunding of Terrorist Activity Transformational Presence Importance of BBVA Bancomer in the Mexican economy n of the Board of Directors Deputy Chairman of the Board of Directors and CEO 2325Business UnitsSales Network Business Development Wholesale Banking Global Markets Support Units Internal Auditing Legal Services Finance Risks Engineering Talent and Culture CRR advertising campaigns and communication 293030303131313131313132Economic ImpactEconomic Impact Analysis and Discussion of Business Development Commercial activity 333333Social and Environmental Impact Local Single “Internal” Development Environment 373742505759Prizes and Awards 65Social andEnvironmental ImpactAwardsAppendicesGlobal Reporting Initiative (GRI) Table of Contents Independent Review Report Global Compact and Sustainable Development Goals Achievements in 2016 and Goals for 2017 Glossary 2016 Annual Report1920212268737677913
About this Report102-1, 102-5, 102-10, 102-45, 102-50, 102-51, 102-52, 102-54About this ReportThe 2016 BBVA Bancomer Annual Report shows the results of the activities carried out by GrupoFinanciero BBVA Bancomer S.A. de C.V. in the economic, social, and environmental fields fromJanuary 1 to December 31, 2016.CoverageBBVA Bancomer, S.A.The Report covers the following companies that makeup the BBVA Financial GroupCasa de Bolsa BBVA Bancomer, S.A.de C.V.BBVA Bancomer Servicios Administrativos, S.A.de C.V.BBVA Bancomer Operadora, S.A.de C.V.ContentsFor information gathering and quantification, BBVABancomer uses internal BBVA software, which allowslocal and global data to be matched.This year the Global Ecoefficiency Plan has begun a newmeasurement period, so 2016 is taken as the base yearfor future measurements.Hipotecaria Nacional, S.A.de C.V.BBVA Bancomer Gestión, S.A.de C.V.Seguros BBVA Bancomer, S.A.de C.V.BBVA Bancomer Seguros Salud, S.A. de C.V.Pensiones BBVA Bancomer, S.A.de C.V.The Investor Relations Department and the CorporateResponsibility and Reputation Department are responsible for preparing the Annual Report.StandardsThe most recognized international standards have beenfollowed in preparing this Report: the Global ReportingInitiative (GRI), AA1000 and Global Compact.The 2016 Annual Report has been drawn up inaccordance with GRI Standards comprehensive option,including the supplement indicators for the financialsector.We fulfill the 10 GRI Principles for drawing up of reports:Principios de contenidoQuality principlesParticipation ofStakeholdersAccuracySustainability abilityReliabilityPunctualityWe use the set of AA1000 standards which helps us ensure that the report upholds the principles of inclusiveness, materialityand responsiveness, so as to ensure greater accountability with our stakeholders.Lastly, we work with the Global Compact of the United Nations to present this report as an advanced Communication onProgress. We are also aligned with the Sustainable Development Goals (SDG), reporting our contribution to them.Independent ReviewThe BBVA Bancomer 2016 Annual Report has been assured by a third-party, in this case by Deloitte (for further details of thescope of the review read the Independent Review Report). It has used the GRI Content Index which is designed to ensure thatthe GRI Table of Contents is in line with the GRI Standards.4BBVA Bancomer
Group Profile102-16Group ProfileCreation of Long-term ValueCorporate PhilosophyOur new Resolution –To bring the age of opportunity to everyone, we need to use all the technology and datatools available to make people’s and businesses’ lives easier. This is a way of showing the profound changes thatBBVA Bancomer is applying in its way of doing things.Our Mission Generate trust by providing a more extensive and better service for our customers with transparency andintegrity, and always offering the highest quality products and services. Provide our employees with the best conditions to fully fulfil their potential. Be solvent and offer attractive returns to our shareholders. Support social welfare as an outcome of business activity.Our VisionWe work for a better future for people.This vision will always be key; it is a permanent reference point for everything the bank does. Thus, the bank’sday-to-day activity is governed by the following corporate principles: The customer at the heart of the business. Teamwork as a creator of value. Management style as the driver of enthusiasm. Ethical behavior and personal and professional integrity as a way of understanding and performing our activities. Innovation as a driver of progress. Corporate social responsibility and commitment to development.2016 Annual Report5
Group Profile102-18, 102-19, 102-21, 102-24, 102-25, 102-26, 102-28, 102-35, 102-36, 102-20, 102-29,102-31, 102-32, 102-33, 102-34Corporate GovernanceCorporate Governance SystemThe corporate governance system is thelinchpin of corporate integrity and one of thekeys to understanding BBVA Bancomer’s ethicaland efficient operation.The Board of Directors is made up of 9 proprietaryDirectors and 8 replacement Directors, 6 ofwhom are independent Directors. They areappointed by shareholders in the special AnnualGeneral Meeting held for that purpose.Article 49 of the Bylaws of BBVA Bancomersets out in detail the different situations inwhich conflicts of interest could arise betweenDirectors, their relatives and the entities withwhich they are related, as well as the financialentities which make up the Group. It describesthe procedures to be followed in such casesto prevent any form of conduct arising whichwould not be in the institution’s best interests.The duties of the Board of Directors includecharting the Group’s strategic course andinforming Society and the market in general, ofthe financial position, as well as providing accessto the public information issued by the Group.As compensation for the performance of theirduties — after attending each meeting of theBoard — both Directors and Statutory Auditorsof the Company receive the amount obtainedby multiplying the price of two 50 pesos goldbullion coin (called “Centenario”) by 1.42857.The Annual General Meeting is responsible forassessing the Board’s performance throughthe approval of the Board’s Annual Report, theFinancial Statements and also ratifying them asmembers of the Board.Shareholders voice their major concerns to theBoard through the Annual General Meeting, thecompany’s highest corporate body, which isfully authorized to direct and decide upon themost important questions of the Company. Thememorandum of the General Meetings heldduring the year describe the number and natureof major concerns which were conveyed to theBoard. They can be read and consulted in theinformation for investors/regulatory informationsection at www.bancomer.com.The Board has two auxiliary committees: theAudit and Corporate Practices Committee andthe Executive Committee.Responsible Business ManagementThe committee in charge of making decisionson environmental and social issues is theResponsible Business Committee, whosemain purpose is to promote and monitorthe company’s responsible business plan.It is chaired by the Chairman of the Board ofDirectors and the CEO of BBVA Bancomer and6composed of nine Deputy Directors, eight AreaDirectors, with the CRR Director serving ascoordinator, who in turn liaises with the CRRarea of the BBVA Group.The Responsible Business Committee sat ontwo occasions in 2016.BBVA Bancomer
Group ProfileCorporate StructureDivisionChairman of the Board of Directors andthe Communication and InstitutionalRelations Division.SupportAuditingFinanceBusinessLegal ServicesWholesale and Investment BankingEngineering MXCommercial Banking NetworkTalent and CultureGlobal Markets MexicoGlobal Risk ManagementBusiness DevelopmentInsurance PoliciesManagement CommitteePosition Chief Executive OfficerEduardo Osuna OsunaDeputy Chairman and CEOLuis Robles MiajaChairman of the Board of DirectorsÓscar Coppel TiradoCommercial Banking NetworkLuis Ignacio de la Luz DávalosFinanceFernando Díaz CastañaresLegal ServicesFernando Eguiluz LozanoTalent & CultureFrancisco Xavier Leyva RubioEngineering MXLuis Morales EspinosaInsurance PoliciesBlanca Cecilia Muñoz MartínezGlobal Risk ManagementHugo Daniel Nájera AlvaBusiness DevelopmentNatalia Ortega GómezAuditAdrián Otero RosilesWholesale and Investment BankingÁlvaro Vaqueiro UsselGlobal Markets Mexico2016 Annual Report7
Group Profile102-22, 103-1, 103-2Board of Directors1. Andrés Alejandro Aymes Blanchet *2. Alberto Bailleres González3. Fernando Gerardo Chico Pardo *4. Arturo Manuel Fernández Pérez5. José Francisco Gil Díaz6. Francisco González Rodríguez7. Ricardo Guajardo Touché *10. Eduardo Osuna(Deputy Chairman and CEO)11. Alejandro Ramírez Magaña *12. Luis Robles Miaja (Chairman)13. Vicente María Rodero Rodero14. Jorge Sáenz-Azcunaga Carranza15. Carlos Salazar Lomelín16. Jaime Serra Puche *8. Fernando Gutiérrez Junquera17. Carlos Torres Vila9. Enrique Medina Fernández ** Independent DirectorsSecretaryDeputy secretaryJosé Fernando Pío Díaz CastañaresAlfredo Aguirre CárdenasPrincipal Statutory AuditorAlternate Statutory AuditorJosé Manuel Canal HernandoJorge Evaristo Peña TapiaComplianceThe Group’s Compliance System constitutes one of the basesupon which BBVA Bancomer consolidates its institutionalpledge to conduct all its operations and business inaccordance with strict codes of ethical conduct.In line with the principles set forth by the Bank for InternationalSettlements (BIS) and the EU’s Markets in FinancialInstruments Directive (MiFID), Compliance continues toarticulate its business around the promotion of policiesand procedures, dissemination and training in matters ofcompliance and the identification, assessment and mitigationof potential compliance risks, which are understood to bethose that affect the following issues: Conduct on the markets Dealing with conflicts of interest Anti-money laundering and preventing funding of terroristactivity Personal data protection Anti-corruption8BBVA BancomerBasic pillars ofthe modelAppropriate organizationalstructurePolicies and proceduresMitigation processes andcompliance controlsTechnology infrastructureCommunication and trainingmechanisms and policiesMonitoring metrics andindicatorsIndependent regular review
Group Profile102-12, 102-13, 102-16, 102-17, 103-3, 205-2, 417-2, 417-3Code of ConductHPD (internal system):“WhistleblowerChannel”Email: canaldenuncia.mexico.mx@bbva.comTelephone:55 5621-4188 or 01800-001-0011Global email:canaldenuncia@bbva.comGlobal telephone:(34) 9153 77222The new BBVA Bancomer Code of Conduct,which was approved by the Board of Directorsin 2015, is applicable to members of theGroup, but also to suppliers and third parties.This reflects the approach to integrity in BBVABancomer, and is a crucial tool to implement aculture of respect for the law.In accordance with the principles of the GlobalCompact, the Code contains an anti- corruptionpolicy stating that BBVA tolerates no form ofcorruption or bribery whatsoever in any of itsactivities. It also reiterates a commitment torespect human rights thus promoting respectfor human dignity and fundamental rightsthereof.The behavior patterns to treat customers, Groupmembers, the Company itself and society aredetermined within five chapters. Using a clearand direct language, its content is adapted tomodern requirements, including new conceptson financial inclusion, presence in socialnetworks, rules on sanctions, seizures, and antiboycott regulations, among others.Our system for making claims or complaints,which is called the “Whistleblower Channel”,forms an essential part of compliance. Thesechannels are an effective channel for reportingany infringements of the Code of Conductwhich collaborators, customers, supplierand colleagues spot when going about theiractivities.Legal complianceAs of December 31, 2016, BBVA Bancomer had no fines or penalties for breaches of legislationor regulations related to environmental issues,its operations in society or the supply anduse of products and services which might besignificant regarding its equity, financial situationand consolidated results. Likewise, therewere no legal suits detected relating to actsof discrimination or violation of human rights,or significant legal complaints with regard toworking conditions.International commitments signedAt BBVA Bancomer we continue to support the followinginitiatives: United Nations Global Compact United Nations Environmental Program Finance Initiative(UNEP FI). * Equator Principles. * United Nations Principles for Responsible Investment.*These initiatives are supported at BBVA Group levelWe are part of the following associations: Mexican Banking Association (ABM) Asociación de Desarrolladores Inmobiliarios (PropertyDevelopment Association) (ADI) Asociación Mexicana de AFORES (Mexican Association ofAFORES) (AMAFORE) Asociación Mexicana de Internet (Mexican InternetAssociation) (AMIPCI) Asociación Mexicana de Intermediarios Bursátiles(Mexican Stock Broker Association) (AMIB) Mexican Association of Insurance Institutions (AsociaciónMexicana de Instituciones de Seguros) (AMIS) Bolsa Mexicana de Valores (Mexican Securities Market) (BMV) Cámara Nacional de la Industria de la Vivienda (NationalChamber of the Housing Industry) (CANADEVI)2016 Annual Report9
Group Profile2016 DevelopmentsThree courses were carried out focused onknowledge of and adhesion to the new Codeof Conduct: the corporate course on the newCode of Conduct, in which employees formallyadhered to the Code; the Integrity in businessworkshop, which this year was largely aimed atthe members of Vitamédica; and a new coursewhere we will train Group members in managingand preventing conflicts of interest, leadershipstyles, prevention of fraud and other subjectwhich concerns forms of conduct where themost serious issues are reported or breaches ofthe Code of Conduct, scheduled for 2017.There were 13% fewer complaints received in2016 compared to 2015, undoubtedly dueto our having more robust areas and controlprocesses, and also because the effect of thetraining contents in integrity and the Code ofConduct have brought down the number ofcomplaints on infringements. The positioning ofthe Discipline Committees and the New BBVADisciplinary Regime have also played a role inbringing down complaints.The main types of complaint in 2016 were asfollows:In 2016, 22,435 employees carried out theonline course, bringing the total percentage ofGroup employees who have done the courseto 59%.Every month, communication initiatives weremade through different media largely reinforcingthose forms of conduct where the most seriousproblems are detected, and where we havedecided to act to prevent and correct them.14 %Other concepts8%36 %Other typesManagement Style9%Respect16 %Improper useof resources17 %Treatment of conflictof interests10BBVA Bancomer
Group Profile102-2, 102-21, 102-40, 102-42, 102-43, 102-44Business modelCommercial business modelGrupo Financiero BBVA Bancomer (GFBB)is a world-class group offering a wide rangeof services ranging from simple loans tointernational structured products.The main subsidiary of GFBB is the bank (BBVABancomer)—a universal bank serving customersdifferently through specialized products andservices. The bank is aware that much ofits success as a bank depends on customersatisfaction. That is why it is constantly changingin order to be able to offer the best bankingservices in Mexico and maintain a long termrelationship with customers.The business model is based on serving eachcustomer segment in a different and customizedway, through networks of specialized executivesto be able to offer a high quality service. Themodel is also based on an efficient distributionnetwork with an extensive coverage, whichis key for providing easy and secure accessto financial services. Lastly, it is a businessmodel that is firmly committed to technologyand major investments in transformation andinnovation projects.This model has underpinned the recurrent natureof BBVA Bancomer’s earnings and its strengththrough outstanding performance characterizedby a clear philosophy of risk control with the aimof maintaining long-term profitability.As a result, BBVA Bancomer has consolidated itsleadership in Mexico and is in an ideal positionfor future growth.CorporateMiddle-market nessesBankingExpressInsurance PoliciesMateriality and Dialog with StakeholdersIn BBVA Bancomer, we identify our stakeholdersbased on the level of influence they haveon the activities of BBVA Bancomer in theeconomic, social and environmental spheres.We select six main groups of stakeholders:shareholders, customers, employees, suppliers,regulators, and society, with whom we establishcommitments.We have set up dialog mechanisms which weuse to gauge their expectations, so we canreinforce our ties with them.2016 Annual Report11
Group ProfileTools for Consultations and Discussions with yeesSuppliers12Commitment ofBBVA BancomerCreating morevalue in asustainable wayover timeSeeking the bestsolutions whichmake BBVABancomer theirbest optionA managementstyle thatmakes peopleenthusiasticand whichis beneficialfor training,motivation andpersonal andprofessionaldevelopmentDialog ChannelsFrequencyAnnual General MeetingAnnuallyAnnual reportAnnuallyQuarterly Financial InformationQuarterlyContact websiteDailyBranchesDailyLínea BancomerDailyWebsite: http://www.bancomer.comDailyPress channels (newspapers, magazines,fliers, direct mails, TV and radio, andothers)DailySatisfaction surveyAnnuallySocial mediaDailyOpinion studiesPeriodicFocus groupsAnnuallyIn-depth interviewsAnnuallyFor you Portal From HRDailyBancomer TVDailyBreves weekly bulletinWeeklyConecta-T MagazineMonthlyEmailDailyGreat Place to Work working climatesurveyAnnuallyInternal RepTrackAnnuallyFocus groupsAnnuallyAdquira electronic portalDailyComplaints and suggestions boxDailyEmailDailySatisfaction surveyAnnuallyFocus groupsAnnuallyIn-depth interviewsAnnuallyActing withintegrity andstrictly abiding bylawsBBVA bankingDigital ntMethodsTalent andCultureCRRTransformationCRR
Group Profile102-46, 102-47RegulatorsSocietyFinding an ally formutual benefit inBBVA BancomerPlaying an activerolein the sustainabledevelopment ofthe society inwhich we odicMessagesPeriodicIn-depth interviewsAnnuallyWebsite web www.fundacionbbvabancomer.orgDailyMeetings withCivil Society OrganizationsPeriodicSocial mediaDailyOpinion studiesAnnuallyReptrackSix-monthlyFocus groupsAnnuallyOnline surveysAnnuallyIn-depth interviewsAnnuallyTalent andCultureCRRBBVA BancomerFoundationCustomer InsightCRRMateriality AnalysisEvery year, the CRR Department performs astudy to identify the most important subjectsfor the organization and its stakeholders. Theresults of this study - the material issues - areintegrated in our strategy and used to define thecontents of our report.In 2016, the BBVA Bancomer materiality studywas aligned with the BBVA global methodology,which consists of three phases:1. Identifying issues: 25 issues which havebeen detected as being material, through anumber of different studies and queries;2. Prioritizing issues: assessing each issue’smateriality for stakeholders and their impacton business3. Exercise validation: review and approval bythe BBVA Group CRR area.2016 Annual Report13
Group ProfileMateriality matrix and material issues 20166.05226Importance for stakeholders5.024 25 212.03.020184.05.0Importance for businessProducts with good value for money (no abusive14. Ethical conductclauses, etc )15. Responsible procurement/outsourcing2.Communication and marketing practices16. Good Corporate Governance3.Customer service quality17. Solvency and financial management4.Address society’s demand for credit18. Respect for human rights5.Security, privacy and customer protection (including19. Contribution to the development of local societies1.big data)(job creation, support for SMEs )6.Deal with customers facing difficulties20. Financial Inclusion7.Employment quality (temporary, outsourcing,21. Community involvementrelocations )22. Diversity and work/life balance8.Respect for employee rights9.Training and talent development10. Remuneration of top management and members ofthe Board of Directors11. Responsible social and environmental funding12. Anti-money laundering/preventing funding ofterrorist activities13. Compliance with tax regulations14BBVA Bancomer23. Climate change24. Digitalization25. Financial literacy26. Transparency27. CRR communication28. Education29. Eco-efficiency
Group ProfileImpacted StakeholderScopeInitiatives byBBVA BancomerProducts with goodvalue for moneyShareholdersCustomersGFBBFinancial InclusionCommunication andmarketing practicesCustomersRegulatorsGFBBCustomer service qualityCustomersEmployeesGFBBCustomer experienceCustomer security,privacy and protectionCustomersSocietyGFBBCustomer securityAnti-money laundering/preventing funding ofterrorist ney launderingRegulatorsGFBBRegulatory ry mentClimate change(GEP)DigitalizationCustomersGFBBBusiness developmentFinancial FBBRegulatory complianceTCR CommunicationIndependent reviewletterEco-efficiencyShareholders,Employees, SocietyGFBBGlobal Eco-efficiencyPlan (GEP)Material IssueCompliance with taxregulationsEthical conductResponsibleprocurement/outsourcingClimate changeTCR CommunicationGFBB: Grupo Financiero BBVA BancomerResponsible business modelBased on the Corporate Social Responsibility Policy, our responsible business model is underpinnedby three interdependent pillars which define its strategic framework:Customers:Banking for people.Consists of conducting our financialactivity keeping people in mindCommittedemployeesConsists of promoting a cultureof social commitment and sharedvalues among the Group’semployeesSociety:Education and scienceConsists of carrying out initiativesprimarily in education, but also inscience and culture2016 Annual Report15
Group ProfileThe three strategic priorities of the responsible business Plan are:PrioritiesInitiativesTransparent, clear and responsible (TCR)communicationTCR CommunicationEducationFinancial literacyGranting scholarshipsProducts with high social impactFinancial InclusionSupporting entrepreneurshipMejora Mutualista (housing rescue plan)Fondo B Educa2016 DevelopmentsThe CRR Department and involvedareas monitored the initiatives setout in the Responsible Business Planand took part in the committeescreated for that end.We conducted a reputational riskdiagnosis to identify the mostimportant risks for the bank, and,based on the results, set up anaction plan.We launched the “BBVA withhuman rights” project so as todeal with the possible impacts onhuman rights generated by thefinancial sector. We analyzed thereal and potential impact causedby BBVA’s activity in the differentareas and businesses on humanrights. We also arranged a practicaland interactive workshop whichwas attended by 20 areas fromthe bank, and which was used topromote reflection and discussionabout what it means to apply theinternational human rights agendain the day-to-day activities in thosedepartments and areas.169candidates submitted applications100entrepreneurships received face-to-face training30 hours of online training by the Monterrey Tec20 special entrepreneurships received additional training from the IPADEBusiness School mxn 4,157,785.71 billion investment in funded entrepreneurships20 active mentorsWe launched the IV MomentumProject, a BBVA Group globalinitiativetosupportsocialentrepreneurship, in alliance withthe New Ventures Mexico andEGADE Technological BusinessSchool in Monterrey.BBVA Bancomer was given the“Socially Responsible CompanyAward” (SRC) for the sixteenthconsecutive year, and SegurosBancomer also received the sameaward for the eighth year in a row.With the assistance of the Talentand Culture area, this year we wereawarded the Responsible FamilyCompany Prize, which confirmsthat our Torre BBVA and ParquesBBVA Bancomer headquarters16BBVA Bancomerpromote good working practices,specifically referring to actionsand policies which help the bank’semployees to live a culture basedon three principles: a good work/life balance; equal opportunitiesand combating violence and sexualharrassment in the workplace.At sector level, we have continuedto support the social responsibilityinitiatives which have been createdthrough the Mexico BankingAssociation (ABM): Green protocoland measuring carbon footprint,and other social responsibilityinitiatives, and we collaborate inthe AMB 2016 Banking SocialResponsibility and SustainabilityReport.
Group Profile102-11, FS2, 205-1Social, environmental and reputational risksAs a financial institution, BBVA Bancomerhas a direct impact on the environment andsociety, through the consumption of naturalresources and relations with its stakeholders,and indirectly, through our funding activity andthe projects we finance. These impacts causedirect, indirect and reputational risks.These non-financial risks may affect borrowers’credit profile or the projects we finance, andthus the quality of the risk and the repaymentof the loans.To manage these risks, BBVA Bancomertakes into account environmental,socialand reputational factors as well as traditionalfinancial variables, in risk management. Thesefactors are integrated in risk management inaccordance with the principle of prudence thatgoverns BBVA’s activity, through a number oflines of action.This year we conducted a reputational riskanalysis, through which we were able to identifya list of risks. These included anti-moneylaundering, local funding, being environmentallyresponsible and respect for human rights, aswell as a number of other issues.Responsible lendingESG stands for environment, social andcorporate governance. We integrate thesevariables into our risk management system,alongside other traditionally managed aspects.These ESG variables manage non-financialrisks that might affect the credit profile of aborrower or financing project and consequentlyjeopardize debt repayment.EcoratingWe have designed the Ecorating tool, whichwill be used to evaluate the environmental riskof companies. Each customer is assigned anenvironmental risk level depending on severalfactors: some of the most important arelocation, polluting emissions, use of resources,the company’s environment which is likely to bedirectly or indirectly affected by the company’sactivities, legislative pressure and tax treatmentof environmental issues.The objectives are:1. To individually identify the level of a customer’sor prospective customer’s environmental andsocial risk.Ecorating consists of a 6-question questionnairereferring to the following issues: Permits for drinking water Permits or indication for use of soil Permits for electricity supply Special permits (licenses) issued by the stateor municipality Administrative environmental fines Environmental Management System accordingto ISO 140012. To set up controls which minimize thecustomer’s possible ecological impacts onthe environment.2016 Annual Report17
Group ProfileFS1, FS10,Equator PrinciplesThe BBVA Group has been a signatory of theEquator Principles (EP) since 2004. They area set of standards promoted by the WorldBank, through its subsidiary, the InternationalFinance Corporation (IFC), to determine, assessand manage social and environmental risks inproject finance.Based on the IFC social and environmentalpolicies and standards and the World Bank’sEnvironmental, Health and Safety generalguidelines, the EP are applied to the funding ofnew projects for an amount equal to or higherthan 10 million dollars, to the expansion of projectswhich cause significant impacts and assessmentin project finance. In BBVA Bancomer, we do nottake into account the minimum threshold, in factwe apply the EP to transactions of any amountand no matter what the purpose of the fundsapplied, not only to new projects or significantexpansions but also to building of projects,acquisition, refinancing, etc.EP analysis is part of our internal projectstructuring and approval processes. Thisprocess includes social and environmental duediligence that starts with assigning a category(A, B or C) which, based on the InternationalFinance Corporation (ICF) categories, and whichrepresents the level of environmental and socialrisk in the project.To approve any project finance transaction, apartfrom the preliminary category assignment, thereport must include an EP compliance reportreviewed by the unit responsible for approving it.2016 DevelopmentsDeals funded using the Equator Principles in Mexico in 2016Category (1)Sector of transactionsAmount funded by BBVA Bancomer(million
4 BBVA Bancomer About this Report 102-1, 102-5, 102-10, 102-45, 102-50, 102-51, 102-52, 102-54 About this Report The 2016 BBVA Bancomer Annual Report shows the results of the activities carried out by Grupo Financiero BBVA Bancomer S.A. de C.V. in the economic, social, and environmental fields from January 1 to December 31, 2016.
