By Carlos Hank-González – Chairman of Board of Directors and Marcos Ramírez – Chief Executive Officer
Grupo Financiero Banorte (GFNorte), as the largest Mexican financial institution, has always sought to respond quickly to market transformations as well as to the growing expectations of its investors regarding corporate governance.
To achieve this, the financial group has carried out multiple exercises, not only from an internal perspective but from the best international practices - especially, those developed by highly regarded comparable companies. All of this, has set a roadmap of which Banorte is proud, becoming a benchmark both domestically and internationally.
The commitment of senior management
Leadership within Banorte has been an important catalyst in corporate governance matters. Carlos Hank-González, chairman of the board of directors, and Marcos Ramírez, chief executive officer, share a vision of adopting best practices as a symbol of transparency and efficient management.
Both lead the way in the process of not only knowing and attending to market tendencies in this matter, but also transforming and adapting the group to the best international practices.
The path to best practices
GFNorte is pioneering in aspects such as independence in the board and its committees and the continuous search for governance structure practices in line with investors’ expectations. The Group has also made a deep effort on transparency, redesigning its website to inform investors and to give more visibility to the information that the market demands.
Likewise, in order to stay at the forefront of monitoring good practices, GFNorte has implemented new processes, such as the evaluation of its board.
This will enhance the efficiency and proper functioning of the board. Moreover, training programs will be implemented, directed to board members, in matters specific to their activity, such as governance, sustainability, digital transformation and risk.
Additionally, the Group has worked hard to adopt new policies aimed at regulating operations and providing to the market greater transparency. Themes in which the Group can distinguish include:
- Policy for transactions with related parties
- Process and rules for selecting board members
- Auditor rotation policy
- Anti-corruption policy
- Regulation of the assemblies
- Greater transparency on the remuneration system
Sustainability at the centre of operations
Likewise, the development of the Group’s sustainability plans deserves special attention, recognising the growing interest from our investors about the development of environmental, social and governance (ESG) matters. Among others, the Group is especially proud of the following:
- Creation of a Sustainability Committee to manage the ESG strategy and its alignment with the group’s strategy and its vision and business interests
- Reorganisation and creation of a multidisciplinary team of experts in environmental, social and corporate governance issue
- Definition of a sustainability model based on corporate governance, environmental and social issues, and a transversal axis on sustainable finance
- Alignment of our operations, products and services to the Sustainable Development Goals
- Rating by the main ESG rating agencies, such as MSCI, Bloomberg, FTSE Russell and Vigeo Eiris
- Periodic publication of integrated reports, thus combining financial and non-financial performance. Since 2016, we have adopted the most recent version of the GRI Standards, as well as the framework proposed by The International Integrated Reporting Council (IIRC) and recently the SASB (Sustainability Accounting Standards Board) guidelines were incorporated
- Inclusion in the main sustainability indices, such as FTSE4Good Emerging Markets Latam, MSCI ACWI ESG Universal / MSCI ACWI Climate Change, MSCI EM ESG Universal / MSCI EM ESG Focus, Dow Jones Sustainability Index MILA / S&P Total Mexico ESG and BIVA FTSE4Good Mexico
- Adherence to different national and international initiatives, such as the United Nations Global Compact, CDP – Disclosure Insight Action, Equator Principles, Principles for Responsible Investment, Principles of Responsible Banking and the Net Zero Banking Alliance
Grupo Financiero Banorte, led by Hank-González, Ramírez and the rest of the board, is considered one of the best companies in Mexico by the investment community. Currently, the Group is evaluating its actions to continue underpinning its corporate governance excellence and optimal alignment with international expectations in ESG matters.
Likewise, in an effort to stay at the forefront of many different aspects, the Group has set the strategic route for the next three years, which will guide the efforts of those who power GFNorte. This strategy consists of a) continuing to strengthen the services that Banorte provides to its current clients through digital transformation and b) reaching more families through a joint venture with Latin American delivery app Rappi. The common denominator in both strategies is ‘hyperpersonalisation’.
The Group is diligently moving forward with this strategy, and the results of this strategy will soon materialise. Banorte is characterised for being a well-capitalised bank with a great strength of its balance sheet and this will continue to be one of its priorities within its overall business strategy.
About The Authors:
Carlos Hank-González (left) is currently Chairman of the board of directors of GFNorte, a position he has held since January 2015. He holds a Bachelor’s Degree in Business Administration, specialised in Finance from Universidad Iberoamericana. He joined the board in October 2014.
Marcos Ramírez (right) has been CEO of GFNorte since November 2014. Joining in 2010, he served for four years as General Director of Wholesale Banking and Casa de Bolsa Banorte Ixe. He holds a degree in Actuary from the Universidad Anáhuac, a specialisation in Finance at the Autonomous Technological Institute of Mexico and a Master’s in Business Administration from ESADE in Barcelona.
About The Company:
Grupo Financiero Banorte S.A.B. DE C.V. (GFNorte) doing business as Banorte is a Mexican banking and financial services holding company with headquarters in Monterrey and Mexico City. It is one of the four largest commercial banks of Mexico by assets and loans, and the largest retirement fund administrator. It offers savings accounts, credit cards, payday loans, mortgages, commercial loans and auto loans and also performs insurance, pension, leasing, and brokerage activities.