Corporate governance

GRI 2-9, 2-10, 2-11, 2-15, 2-16, 2-17, 2-18, 2-19, 2-20, 2-23, 2-24, 2-27, 201-2, 205-3, 401-2, 403-2, 416-2, 417-2, 417-3, 418-1

GOVERNANCE
structure

board of
directors

Our Board is responsible for guiding the Group through solid strategic planning, always promoting transparency and ethics in all our actions. It also oversees the performance of the executives and conducts a comprehensive risk assessment.

Likewise, the Board conducts an annual self-assessmentand evaluates the committees. Based on the informationgathered, we identify areas of opportunity and presentthem with the goal of continuous improvement. Thisenables us to contribute to ongoing growth at both the individual and collective level.

Audit
Committee

THE ACTIVITIES OF THE AUDIT
COMMITTEE INCLUDE:

CORPORATE PRACTICES
committee

The activities of the Corporate Practices Committee include:

  • Supporting the Group’s Board of Counselors.
  • Preparing reports related to its area of responsibility.
  • Making observations on the performance of the Relevant Directors.
  • Evaluating transactions with related parties..
  • Reviewing compensation packages granted to the CEO and Senior Executives.

ESG
Committee

Approved on March 7, 2024, the Operational ESG Committee is comprised of 6 Independent Directors.

Its purpose is to drive the integration of environmental, social, and governance (ESG) criteria throughout the Group’s operations, aligning business decisions with the issues most relevant to our stakeholders.

KEY FUNCTIONS:

COMMITTEE ADDED VALUE:

The Committee meets four times a year, promoting a more transparent, proactive, and sustainable management.

Directors

At Grupo Bafar, we are committed to advancing greater diversity at the executive level, recognizing that the talent of both women and men have played a key role in our journey. Therefore, in future rotation processes within senior management, decisions will consciously consider the gender diversity within the organization. This vision reflects our firm purpose of continuing to build a better future for the company, guided by the conviction that inclusion strengthens our path to success.

POLICIES

  • Code of Ethics
  • Conflict of Interest Policy
  • Corporate Integrity and Anti-Corruption Policy
  • Equity and Inclusion Policy
  • Information and Data Security Policy
  • Occupational Health and Safety Policy
  • Corporate Code of Conduct and Ethics Policy
  • ESG Compliance Policy of Grupo Bafar

The Code of Ethics defines the responsibilities of board members, executives, and employees of Grupo Bafar, serving as a guide for proper conduct. It also encourages the reporting of any behavior that violates these principles and ensures the implementation of corrective actions in case of non-compliance, fostering a culture of integrity and accountability throughout the organization.

For more information on the policies:

https://ri.bafar.investorcloud3.net/en/documentos-corporativos

BAFAR
TRANSPARENTE

Bafar Transparente is an open communication channel, available 24/7, that allows employees to report any situation that negatively impacts the work environment, customer service, or puts the Company’s resources at risk. It also enables the reporting of actions that go against the principles outlined in the Code of Ethics. In general, any conduct that contradicts our values and principles can be reported.

WHAT CAN BE REPORTED?

To ensure a secure environment, we operate a direct line called “MY SAFETY”, through which personnel can report any conditions or acts that may represent a risk. Each report is addressed promptly by the designated managers, who implement the necessary preventive or corrective measures.

At Grupo Bafar, no cases of regulatory non- compliance or voluntary code violations were recorded. However, any misconduct or suspicion may be reported through the following channels:

regulatory
compliance

INSTITUTIONAL COMPLIANCE

It is important to highlight that Grupo Bafar has not incurred any violations of current laws or regulations, nor has it received any related penalties or sanctions.

Among the most relevant regulations are the General Law of Ecological Balance and Environmental Protection (LGEEPA), the General Law for the Prevention and Comprehensive Management of Waste (LGPGIR), and the National Water Law (LAN). These frameworks have been essential in shaping our environmental strategy, which is fully aligned within their provisions.

CONFLICTS OF INTEREST

Conflicts of interest may arise when an individual’s personal or financial interests interfere with their duties and assigned responsibilities. At Bafar, we are aware of the potential risk, particularly when dealing with related parties. Therefore, our Human Resources Department is responsible for identifying, managing, and mitigating these risks. This includes notifying the Compliance area of any potential conflicts, especially during the hiring process of board members, committee members, and The flavor that The flavor that executive personnel.