Commitment to
Corporate Sustainability

Sustainability is embedded in our strategy and is present in the services we offer, the way we operate and the way we manage our investments.

Material topics are the foundation of the sustainability approach, so they must be prioritized, managed, and reported. In this sense, for Peña Verde the following issues are considered with the corresponding priority:

Based on the material topics, five commitments were drafted that will guide Peña Verde’s main sustainability efforts through 2027. These commitments will in turn be aligned with the 17 Sustainable Development Goals:

Grupo Peña Verde promotes the continuous strengthening of environmental, social and corporate governance practices, with the purpose of influencing, directly or indirectly, in a positive way all stakeholders. To this end, the Company maintains permanent contact with these groups, as shown below:

Since our activities are focused on the insurance sector (characterized, among other things, by having an ecological footprint considerably smaller than that of other industries), the environmental impact of our operations is not considered significant. However, at Grupo Peña Verde we are aware of the importance of climate risks, which is why, as of October 2020, we joined the UN Global Compact, the largest global corporate sustainability initiative.

It is also important to highlight that, to reduce its ecological footprint (promoting less waste generation, reuse, and recycling), Grupo Peña Verde continues to develop an Environmental Policy and a Waste Program based on:

• General Law for the Prevention and Integral Management of Waste.
• Mexico City Solid Waste Law.
• Environmental protection standard NOM087-ECOL-SSA-2002.

Regarding energy consumption, the light bulbs used to meet the lighting requirements of Grupo Peña Verde’s offices are LED; in addition, all air conditioning equipment is highly efficient.

Regarding fuel use, the Company uses only what is necessary for transportation equipment and emergency power plants, which also require natural gas.

- 5950 megajoules of nonrenewable fuels used in 2022 -

Regarding water consumption, only that which is indispensable for the operation of the buildings in operation is used, mainly for sanitary, cleaning and garden irrigation (for the latter, there are rainwater collectors that encourage lower water consumption).

Note: Water consumption was determined using the respective bills.

The Company has three areas responsible for the management of environmental issues, as detailed below:

1. Compliance: in collaboration with the operational and service areas of all sites, it is responsible for verifying and ensuring that applicable legislation is fully complied with.
2. Human Capital: responsible for promoting effective internal communication and contributing to the deployment of awareness and training campaigns for every employee.
3. Strategy and Sustainability: is in charge of monitoring the above by considering it within Grupo Peña Verde’s Strategy.

As it does every year, Grupo Peña Verde joined the UNiTE campaign, which seeks to eradicate violence against girls and women by raising awareness of this important issue. Thus, since November 25, the Company and its employees participated in the 16 days of activism using orange garments and elements, as well as disseminating messages that contribute to prevention.

Grupo Peña Verde is convinced that the talent, commitment, capability, discipline, and human values of its employees have been fundamental in achieving the financial and technical strength that has characterized it for more than 65 years. For this reason, the Company plans for the welfare of its people, develops, and promotes a work culture based on integrity, the customer, teamwork, transformation, and personal harmony.

As of December 31, 2022, the Peña Verde community consisted of more than 974 employees, distributed in Mexico, London, the United States and Chile.

- At the date of publication of this report, Grupo Peña Verde was ranked 13th in the Great Place To Work ranking of companies between 500 and 5,000 employees. -

During 2022, 252 employees left the Company and 324 new employees joined, representing a net of 72 additional employees. Thus, the consolidated turnover rate during 2022 was 25% and the consolidated hiring rate was 32%.

The 2022 turnover rates for General de Seguros, General de Salud, Reaseguradora Patria, Servicios Administrativos Peña Verde and CCSS were 25%, 26%, 19%, 19% and 69%, respectively; while the hiring rates were 23% for General de Seguros, 84% for General de Salud, 36% for Reaseguradora Patria, 27% for Servicios Administrativos Peña Verde and 90% for CCSS.

It is important to mention that CCSS's turnover and hiring rate is due to the fact that medical collaborators are generally accepted to study a specialty, which is why personnel is constantly being recruited.

Grupo Peña Verde’s turnover and hiring rate by gender, age group and region is provided below:

GRUPO PEÑA VERDE

GRUPO PEÑA VERDE

GRUPO PEÑA VERDE

Grupo Peña Verde has a Diversity and Inclusion Policy in which it reaffirms its position in favor of equal employment opportunities for men and women.

Grupo Peña Verde has a Training Policy, whose guidelines establish the path to follow to promote the training of employees in each of the subsidiaries. In this sense, this policy positions the employee as the main responsible for defining and complying with its Training Agenda.

As part of the training chain, immediate supervisors and all area managers must provide the necessary support for the training process of the employees under their direction. In addition, the Training and Organizational Development Area is responsible for monitoring and verifying the progress of training programs to ensure compliance with current guidelines, as well as alignment with the objective of providing continuity to the business through succession and career plans.

The different training opportunities to which Grupo Peña Verde employees have access are as follows:

Aware of the importance of a good balance between work, personal and social life, etc., on the physical and mental wellbeing of employees, and therefore on their performance, during the last seven years Grupo Peña Verde has deployed multiple efforts aimed at protecting and promoting the various aspects of health.

As a reflection of this, in 2022, 17 employees (5 men and 12 women) requested parental leave and returned to work at the end of their leave (return to work rate = 100%).

In addition, of the total number of employees who returned to work after parental leave (as of December 2021), 12 continued to be part of the Peña Verde community during the 12 months following their return (retention rate = 71%).

As part of the benefits available to employees, the Company offers access to various health institutions, for example:

• Access to the Social Security Institute
• Major Medical Insurance
• Flexible payroll deduction in case they purchase other health insurance. health insurance

In this way, Grupo Peña Verde makes available to its employees different health institutions to which they can go for work or non-work related issues.

Employees also have access to the “ Wellbeing Line”, a phone counseling service that provides support on emotional, nutritional, administrative, legal and team management issues. The Company also offers access to therapies, as initial support, in cases of emotional problems.

In addition, to promote health prevention, several activities are carried out on a voluntary basis, among which the following stand out:

During June 2022, the NOM 035 survey was completed, and the results will be used to start defining action plans.

To preserve the wellbeing of its employees, the Company has several protocols in health matters, which are concentrated in an internal document that is delivered to all employees. With this, Grupo Peña Verde intends to ensure that all members of its team know the guidelines to be followed and the path to follow in case of any eventuality, for their well-being.

Likewise, all employees have access to the health services provided by the CCSS department during their workday. To promote continuous improvement, the department also gathers feedback from employees on the effectiveness of the service and prepares a report.

1. As a first contact for Medical Phone Orientation, employees should contact the CCSS through the phone number established in the internal document. If, due to the seriousness of the injury, the employee is not authorized to make the call or requires immediate medical attention, this will be done at the place of the accident (aligned with the Medical Care Color System).


2. The doctor will determine if the employee needs to be transferred to the Family Medicine Unit (UMF) or to the IMSS emergency room. In this case, the doctor will notify the contact that the employee has provided within the Integral Human Capital System (SICH) to go to the Company’s facilities to accompany and transfer the employee. If the employee wishes, the transfer will be made to a private hospital, but in this case the expenses will be at the employee’s expense.

iii. The treating doctor will make a record in the “Medical Consultation Report” as a closure of the medical attention and/or assessment provided and will notify the Organizational Development Specialist by e-mail of the cases in which there has been an emotional or psychological affectation, to follow up with the employee.

iv. The report is strictly confidential and will be kept in the control file of the CCSS (department that provides the medical service).

Grupo Peña Verde has a security awareness program, which includes aspects related to cybersecurity and physical security.

For the case of physical security, the Company uses different media, such as newsletters and podcasts, to share the topics that have been determined based on the periodic analysis of open sources carried out by internal personnel, with the support of suppliers specialized in the preparation of this type of reports.

The Company is also responsible for providing HR training to all Industrial Banking Police security personnel assigned to the Company’s facilities.

During 2022, several initiatives were carried out for Grupo Peña Verde employees, among which the following stand out:

• “Educational moments” being informative capsules aimed at all employees with the purpose of raising awareness on various relevant topics related to situations that may arise in the organization’s environment.

• At the end of 2022, the Peña Verde security week was organized. This initiative consisted of a series of presentations with the participation of invited specialists, addressing a wide range of topics, both general and specialized, with emphasis on credential theft and identity theft.


• On an ongoing basis, awareness sessions are held for new employees, as well as training sessions focused on specific topics that are relevant to the organization.

ANDRÉS MILLÁN
DREWS

Corporate Director Asset Management
and Financial Strategy

Career at Peña Verde: Mr. Millán joined Peña Verde as Vice President of Peña Verde’s Asset Management and Financial Strategy Division on November 1, 2019.

Academic and Professional Background: With a degree in Business Administration from the Universidad de los Andes (Colombia) and a Master in International Finance from the University of Amsterdam, Mr. Millán has a vast experience in the financial sector, including work in investment funds and development banking in Colombia; a number of positions in Rabobank International of the Netherlands where he served as Vice President for Southern Europe and Latin America. It is also worth mentioning his successful career at IFC, member of World Bank Group, where he climbed various positions in the Investment Department until becoming Chief Investment Officer.

RENÉ GONZÁLEZ
GONZÁLEZ

Corporate Director of the Business Support
and Transformation Division

Career at Peña Verde: Mr. René González has been Corporate Director of Peña Verde’s Business Support and Transformation Division since January 2020. Prior to his appointment, he performed as Head of Planning and Chief of Staff (2018 to 2020).

Academic and Professional Background: With a degree in Financial and Actuarial Economics from ITAM, Mr. González has experience in both private and public sectors. In the private sector, he worked at MetLife, where he was promoted from financial risk specialist to head of Strategic Planning and later became Director of Valuation, Planning and Strategic Projects at the Mexican Department of Labor and Social Welfare.

FERANDO ÁLVAREZ
DEL RÍO

CEO of the Insurance Division

Career at Peña Verde: Mr. Álvarez joined Peña Verde as CEO of General de Salud in 2017 and as of 2021 he serves as CEO of the Insurance Division

Academic and Professional Background: Mr. Álvarez holds a bachelor’s degree in Economics from Trent University and a master’s degree from McMaster University. Fernando Álvarez has more than 10 years of experience in the insurance industry, having held strategic roles within Mexico’s Secretariat of Health and the National Insurance and Bonding Commission. For 4 years he served as CEO of General de Salud at Grupo Peña Verde.

FRANCISCO FERNANDO
MARTÍNEZ CILLERO

CEO of Reaseguradora Patria
(Mexico and Chile)

Career at Peña Verde: Mr. Francisco Martínez has had a dynamic career at Reaseguradora Patria, where he joined in 2011 as an intern/actuarial analyst, served as a quality specialist (as an associate of Servicios Corporativos Peña Verde) and in 2013 assumed administrative functions as Director. In February 2019, he was appointed Deputy Chief Executive Officer and in April 2021 assumed the position of Chief Executive Officer, both at Reaseguradora Patria.

Academic and Professional Background: Mr. Martínez holds a degree in Actuarial Science. He has spent most of his career at Peña Verde and is also a founding partner and Chairman of the Board of Directors of Fondo de Energía Ilimitada S.A.P.I. de C.V.; Fondo Revolvente 2MAZ S.A.P.I. de C.V.; and RIKAFRAN S.A. de C.V.

To incentivize and compensate the effort, commitment and productivity of its employees, Grupo Peña Verde has 3 compensation policies (bonuses) designed according to the operations of its subsidiaries.

Performance Bonus

The Human Capital Area oversees managing the application process of this policy, which is subject to the approval of the Evaluation and Compensation Committee.

The bonus applies exclusively to employees with a permanent contract and a minimum seniority of 6 months.

The bonus calculation process is performed in February of the year following the evaluation period and payment is made no later than the second half of April of the same year. In this respect, the amount to be received for the performance bonus is linked to the:

• The hierarchical level of the employee
• Result obtained in the performance evaluation
• Salary recorded during the month of December of the evaluated period

Performance is evaluated based on the following factors:

• Compliance with strategic and area management indicators aligned to key results
• Performance evaluation by adherence to culture pillars and/or competencies
• Qualification of Area Strategic Initiatives

The Affinity score is defined based on the attachment to the job profile and cultural pillars.

Grupo Peña Verde values the effort and commitment of its employees and has therefore established a subscription bonus that is calculated based on two fundamental indicators. First, it considers the budgetary compliance of retention bonuses, which reflects the ability to adequately manage the assigned resources. Secondly, the budgetary compliance of the technical result to retention is evaluated, which demonstrates the performance in the

technical and operational areas. Each subscriber is evaluated at company level and in his or her area of responsibility, thus promoting interdepartmental collaboration that fosters joint growth in all areas.

This evaluation scheme ensures that each subscriber contributes to the individual value of his or her area and, in turn, to the overall value of the company. In an equitable approach, each level of compliance

contributes 50% to the subscriber’s total bonus. To ensure a sustainable reward, weighted compliance is multiplied by bonus months and spread over a 3-year period, dividing the bonus into thirds that are paid annually.

With this system, Grupo Peña Verde promotes excellence in performance and teamwork, rewarding the effort and dedication of its employees in a fair and sustainable manner.

This creates an environment of motivation and joint growth that strengthens the solidity and success of the organization.

It is the responsibility of the Human Capital Area to manage the incentive application process based on the report of the commercial goals provided by the Sales Department.

For Branch Managers, Regional Directors and Area Managers, the calculation is based on the last monthly salary of the year to be evaluated, and the incentive allocation process is performed monthly.

For Office Managers and Commercial Executives, the incentive is calculated based on the number of monthly insurance policies and is assigned on a semi-annual basis.

The amount of the bonus to be given to each employee will be authorized by the Human Resources Management and the Sales Management of the Insurance Division; such bonus will be paid in the second fortnight of the month following the evaluated period.

It is important to mention that, on an annual basis, the Sales Management establishes the monthly sales budget, which is submitted to the approval of the General Management of the Insurance Division. The following metrics are applied to this budget for each of the following employee segments:

Office Managers and Sales
Executives

The incentive is paid from 100 policies per month per collaborator (with no growth limit) and is subject to the fulfillment of the assigned sales budget; payment is made per policy, Ps.50 if it comes from a current agent and Ps.100 if it comes from a recruit.

Branch Manager

Regional Directors and
Zone Managers

For the Regional Director and the Zone Manager to receive their commercial incentive, 75% of the managers in their zone must have credited their quarterly incentive at least once with 60% of the target amount.

In addition, the target budget must be exceeded in the following areas:

• Half-yearly sales allocated by industry in their region

Non-compliance per branch will penalize 15% of the incentive; for example, noncompliance in 2 branches will mean a penalty of 30% of the incentive even if there is an overall surplus.

• Channel development in their region

Sales obtained through recruited agents, measured in net premiums collected.