Detail of the ESG Management

ANNEX II

Alliances and Memberships

(GRI 2-28)

To generate value, share knowledge and anticipate the most important trends in the industry, we maintain a close relationship with the main chambers of the countries where we operate, as well as with other national and international organizations in the sector.

Business Organizations in Honduras

Honduran Association of Banking Institutions (AHIBA)
Chamber of Commerce and Industry of Tegucigalpa CCIT)
Chamber of Commerce and Industries of Cortés (CCIC)
Honduran Chamber of Insurance Companies CAHDA)
Honduran American Chamber of Commerce (AMCHAM)
Association of Administrators of Pension Funds and Severances of Honduras "ASAFONDOH "
Honduran Council of Private Enterprise (COHEP)

Business Organizations in Nicaragua

Association of Private Banks of Nicaragua (ASOBANP)
Chamber of Commerce and Services of Nicaragua CCSN)
American Chamber of Commerce of Nicaragua (AMCHAM)

Business Organizations in Guatemala

Banking Association of Guatemala

Business Organizations in Panama

Banking Association of Panama

International Business Organizations

Latin American Business Council (CEAL)

Latin American Bank Federation (FELABAN)
International Insurance Network (RIDA)
Inter-American Federation of Insurance Companies (FIDES) International Federation of Pension Fund Managers (FIAP)

Relations with Authorities

We make sure to keep communication channels with government and regulatory entities open. In this way, we maintain a constant dialogue with the authorities.

Government Authorities in Honduras

Central Bank of Honduras (BCH)
National Banking and Insurance Commission (CNBS)
National Congress (CN)
National Electric Energy Company (ENEE)
Economic Cabinet
Property Institute (IP)
Secretary of Finance
Revenue Administration Service (SAR)
Superior Court of Accounts

Government Authorities in Panama

Superintendence of Bank of Panama

Government Authorities in Guatemala

Superintendence of Banks of Guatemala

Government Authorities in Nicaragua

Superintendence of Banks and other Financial Institutions of Nicaragua (SIBOIF)
Revenue General Directorate(DGI)
Nicaraguan Social Security Institute (INSS)
Ministry of Labor (MITRAB)

Alliances Ficohsa Foundation

National

Honduras

• Breadco
• ChildFund
• Clients La Colonia Supermarkets
• Grupo Farinter
• Ferema
• Lacthosa
• Lufussa
• Tigo Foundation
• Zamora Terán Foundation
• Ministry of Education
• National Pedagogical University Francisco Morazán (UPNFM)
• Unitec

National

Nicaragua

• Association ProNiños Quemados de Nicaragua (APROQUEN)
• World Vision Nicaragua
• Ministry of Education

National

Guatemala

• Tigo Foundation
• Ministry of Education

National

Panamá

• Ministry of Education

International

• Bladex
• Copa Airlines
• Darwin Capital, LLC
• Intermex
• Microsoft
• MoneyGram Foundation
• More Money
• Organization of Ibero-American Statess (OEI)
• World Food Programme
• Transatlantic Re
• United Way
• Visa
• Wells Fargo

Our Stakeholders

(GRI 2-29, 2-30)

It is vital for us to identify the different interest groups with which we have a relationship. We try to maintain a constant and close communication, letting them know the main news and changes in the organization, but also to learn about their expectations or any concerns that may arise.

Stakeholders

Subgroups
Stakeholders

Value Proposal

Communication Channelsby Stakeholders

Relevant Issues to Stakeholders

FFG Shareholders

Shareholders
Investors Board of Directors (Internal and External Members)

We provide security in your investment, working on the ﬁnancial stability of the company and the development of the business plan. We also promote a culture of control, ensure transparency of information, and achieve the company’s performance objectives.

• Financial reports
• Sustainability Report
• Corporate presentations and relevant events
• Shareholders' Meeting
• Corporative Secretary

• Structure and functioning of corporate governance
• Culture of ethics and compliance
• Economic performance (ﬁnancial stability)

Suppliers

Technology (Acquisition of equipment, infrastructure, telecommunications)
Information Security Software Development Licensing
Promotional items Marketing
Miscellaneous maintenance (ATM, POS, Hardware)
Legal Advice (Legal Department)
Other services (administrative, consultancy, telephone)
Transport of securities
Lessors
Miscellaneous supplies (Local)

We enable participation in the operation through the products and/or services they provide. We support their development through stable hiring and mutual beneﬁt. We promote high-quality standards and innovation, favoring their competitiveness.

• Performance assessments
• Procurement Department
• Supplier Portal

• Data Privacy and Cybersecurity
• Ethics and anti-corruption
• The client experience
• Prices and credit opportunity
• Payment management and training

Employees

Officials
Chiefdoms
Officers
Assistants
Consultants
Outsourcing
Advisers

We safeguard stability in employment and facilitate their development, including the delivery of training. We ensure their health and safety as well as wellness through different beneﬁts. Fostering a culture of trust and mutual respect.

• Institutional Portal/Intranet
• Ethical culture and complaint hotline
• Café con Neto and other internal meetings
• Satisfaction and Work Climate Surveys
• Training instances
• Performance assessments
• Campaigns and internal communications

• Health and security
• Client Privacy (use of information)
• Ethics and anti-corruption
• Work climate and employee satisfaction
• Economic performance (company ﬁnancial stability)

Clients

Consumers
Entrepreneurs
Companies
Groups and/or Corporations

We drive the prosperity of industries and families, through access to ﬁnance and savings. We offer products relevant to different needs, through multiple channels that facilitate access. We are transparent in the conditions and seek the best use of the products.

• Publicity campaigns
• Social networks
• Satisfaction surveys (NPS)
• Call Center: Attention and suggestions channel.
• Customer service centers.
• ChatBot “SARA”
• App Móvil Ficohsa
• Points of service: ATMs, TENGO.
• Web page.

• Client experience (attention and services)
• Education and ﬁnancial inclusion
• Prevention culture (insurance)
• Client business development
• Product and service innovation,(product portfolio)
• Digitization of processes.

Authorities and regulators

Municipalities
Central Bank of Honduras (BCH)
National Banking and Insurance Commission(CNBS)
Secretary of Finance
Superior Court of Accounts
Revenue Administration Service (SAR)
Property Institute (IP)
Secretaries/Ministries of Education of the countries
Economic Cabinet ENEE
National Congress
Superintendence of Bank of Panama
Superintendence of Banks of Guatemala
Superintendence of Banks and other Financial Institutions of Nicaragua (SIBOIF)
Revenue General Directorate (DGI)
Nicaraguan Social Security Institute (INSS)
Ministry of Labor (MITRAB)
Regulation, Registry and Monitoring of Civil Associations Directorate (DIRRSAC)

We comply with the applicable local legislation, in each of the countries where we have presence. In this way, we safeguard the rights of our clients and other stakeholders.

• Reports on results to regulatory agencies.
• Open dialogue
• Public alliances

• Corporate Governance
• Regulatory compliance
• Experience/relation with the client

Certifiers and verifiers/ auditors

Fitch Ratings/Finance
Moody´s/ Finance
Icontec
Deloitte & Touche S. de R.L.
Horwath Central America
Grupo Gorico
Advisory Group

We comply beyond the law with sector certiﬁcations as well as business-speciﬁc veriﬁcations. Ensuring good management and governance of our operations inside and outside the company.

• Reports and performance reports.
• Open dialogue
• Visits to headquarters and agencies
• Public information on the web.
• Online assessments and questionnaires

• Corporate governance
• Regulatory compliance
• Experience/relationship with client
• Quality of life
• Cybersecurity and privacy of data

Correspondent Banks

JP Morgan
Wells Fargo
Citibank
Bank of America
BNY Mellon
Commerzbank Bladex
Cabei
Deutschebank
Morgan Stanley
Golman Sachs
US Bank
Sumitomo Mitsui Banking Corporation
Bradesco USA

Respetamos y monitoreamos los acuerdos de colaboración con los bancos corresponsales, con el objetivo de garantizar las operaciones y tranquilidad de nuestros clientes.

• Reports and performance reports
• Open dialogue
• Web page
• Email messages and communication
• Responsible of relation with the banks

• Client privacy (use of the information)
• Ethics and anti-corruption
• Economic performances (business ﬁnancial stability)

Development Banks

FMO
Bid Invest
Norfund
DEG
International Financial Corporation (IFC)
OeEB
Finance in Motion
OFID
Proparco
CABEI

We guarantee the ﬁnancing obtained by the Development Banks, through our good corporate governance and sustainability practices in the company’s operations.

• Reports and performance reports.
• Open dialogue
• Public information on the web.
• Questionnaires and assessments

• Corporate governance
• Regulatory compliance
• Experience/relationship with client
• Quality of life
• Cybersecurity and data privacy
• Environment
• Social development

Sectorial organizations (national and international)

Honduran Association of Banking Institutions (AHIBA)
Honduran Council of Private Enterprise (COHEP)
Chamber of Commerce and Industries of Cortés (CCIC)
Chamber of Commerce and Industry of Tegucigalpa (CCIT)
Latin America Business Council (CEAL)
Honduran Chamber of Insurance Companies CAHDA)
Honduran American Chamber of Commerce (AMCHAM)
Banking Association of Guatemala
Banking Association of Panama
Association of Private Banks of Nicaragua (ASOBANP)
Chamber of Commerce and Services of Nicaragua (CCSN)
American Chamber of Commerce of Nicaragua (AMCHAM)
Latin American Bank Federation (FELABAN)
International Insurance Network (RIDA)
Inter-American Federation of Insurance
Companies (FIDES)
International Federation of Pension Fund
Managers (FIAP)

We are part of the business guild, contributing with our participation in priority issues for the sector. Trying to be a benchmark in the region, we promote economic development and the promotion of policies and guidelines that strengthen the practices of the ﬁnancial sector in the countries where we operate.

• Reports and performance reports.
• Open dialogue
• Public information on the web.
• Participation in guild, sectoral and business meetings

• Communication of best practices
• Expertise exchange in the sector
• Transparency and business ethics

CSR and Sustainability Promoting Organizations

FUNDAHRSE
CENTRARSE
SUMARSE
PNUD
United Nations Global Compact
Giving Tuesday

We reaffirm our commitment to CSR and Sustainability by being part of agencies that promote good practices in each of the countries where we have a presence.

• Reports and performance reports.
• Open dialogue
• Public information on the web.
• Participation in events and congresses
• Participation in local and international initiatives related to CSR/Sustainability

• Communication of CSR and Sustainability best practices
• Dialogue and communication with SMEs
• Transparency and business ethics

Media

National
International
Specialized in the sector
Specialized in CSR/Sustainability

We maintain a good relationship with the media, transmitting a sense of transparency that reinforces the Group´s actions at reputational level.

• Reports and performance reports
• Open dialogue
• Public information on the web

• Communication of Sector and CSR best practices
• Transparency and business ethics
• Business credibility and reputation

Diplomatic Relations

US Embassy
Panama Embassy
Guatemala Embassy
Nicaragua Embassy
Honduras Embassy in DC
European Union
Embassy Spain
Embassy Germany
Embassy Holland Embassy

We seek diplomatic relations based on cooperation with the different embassies’ representatives of the countries in which we have operations and respond to requests or requirements.

• Internal department of institutional relations
• Email
• Public offices
• Public events

• Transparency and responsiveness to economic requests from countries.
• Information on major changes in the bank’s operations in the countries

Community

Non-governmental organizations (NGO´s)
Local communities (general population)
Donors (organizations and/or national and international businesses)
Parents
Strategic Allies
Academy
Teachers
Glasswing Honduras

We contribute to social development, through the promotion of inclusion and ﬁnancial education. We attend to the main problems of our environment and support in emergencies, as part of our corporate citizenship and commitment to the environments where we are present. We work in a coordinated manner with different civil society organizations (NGOs)

• Ficohsa Foundation Programs
• Corporate volunteer initiatives
• Dialogue with NGOs and beneﬁciaries

• Education, inclusion and ﬁnancial health
• Childhood education
• Health support
• Job creation and opportunities
• Social investment

Materiality Analysis

(GRI 2-30, 3-1, 3-2)

We maintain as a basis of the strategy the materiality study that we carried out at the beginning of 2021. In that sense, we managed to identify those topics that are relevant to the Group and to our stakeholders, of which we report throughout this report.
Below we illustrate the process by which we identify our topics or material issues of the sustainability strategy.

Identiﬁcation of the set of potentially relevant topics, based on documentary reviews and a reference framework for companies in the sector.

Elaboration of the list of potentially relevant topics, with bibliography referring to:
Sectoral priorities: benchmarks for investment criteria in the sector.
Context of activity: trends in business management, risks and opportunities. Analysis of documents in response to the context of COVID-19 and post-pandemic, both general and sectoral.
Pre-existing queries: Workplace Climate Survey, Internal Customer Satisfaction Survey (IPN).

Prioritization of issues based on the opinion of different stakeholders relevant to FFG, and the company’s strategic perspective.

Priority of stakeholders: prepared through the implementation of surveys to employees and suppliers.
For clients: interviews with those responsible for the relationship with clients in different businesses.

Strategic Company Priority: Interviews with Senior Management: Corporate Managers and Strategy Managers.

Construction of the matrix and validation of relevant issues.

Elaboration of the materiality matrix.
Determination of the set of material topics and correlation with SDGs.
Validation session with FFG.

The following topics are classiﬁed into three main groups:

• Material issues: those that are particularly critical, which form the basis for the sustainability strategy and this report.
• Emerging issues: those that are not yet material but can be so quickly by a change in context and/or in our operation
• Non-material topics: those less relevant, on which we do not have to emphasize.

It is important to note that all the issues that appear in the matrix are managed by the organization, however we prioritize resources in those that we consider as material, forming part of our sustainability strategy, which consists of initiatives along with indicators for the correct monitoring of its implementation.

Since it is a process of continuous improvement, we maintain dialogue with our stakeholders and monitor trends and possible impacts of national and international contexts that may modify our strategic priorities.

That is why by the end of 2023 we will be updating this exercise, keeping it in force to ratify our strategy or if necessary, adjust it to be always at the forefront.