Corp Financiera Colombiana SA

### 3. Strategic Framework for Climate Management

3.1. Climate governance

Based on Corficolombiana's corporate governance structure, we assigned roles and responsibilities related to the strategic management of risks and opportunities associated with climate change, to formulate, manage and evaluate risks and opportunities at all levels of the organization and in the current investment portfolio and in the decision-making process for new investments.

On the one hand, the board of directors and its associated committees are responsible for the formulation, direction, and oversight of the comprehensive climate change strategy, while senior management is responsible for ensuring that the strategy is properly executed at all levels of the organization. Each subsidiary of the group applies the risk cycle according to the corporate methodology and generates a map that includes identification, evaluation, and management of measures.

The Sustainability Department provides internal support and accompaniment and is generally responsible for monitoring the Strategy and generating reports and disclosures for internal and external use.

Corporate governance structure

|Positions and governance structure|Roles and responsibilities|
|---|---|
|Board of Directors|• It approves the risk threshold and through the specific committee is responsible for approving the climate change strategy and following up on the implementation of the initiatives related to the strategy. • Oversees and monitors that risks and opportunities (including financial impacts) associated with climate change are assessed. • Approves annual budget and financial planning for climate risk management in the corporate strategy.|

|Corporate Governance and Sustainability Committee|• It is in charge of following up on the initiatives developed within the climate strategy and proposes lines of action related to climate opportunities. • Proposes to the Board of Directors, adjustments to the Climate Strategy based on the growing knowledge on climate change.|
|---|---|
|Corporate Governance, Risk and Compliance Committee CGRC|• Assists the Board of Directors in its role of leading and overseeing integrated risk management, including climate change risk. • Analyzes risks and establishes guidelines for risk treatment, monitoring and measure, and reports potential exposures (including costs).|
|President|• It is responsible for the implementation of the climate strategy and relies on the President's Committee to propose and follow up on climate programs, projects, and initiatives. • Presents to the Board of Directors the results of the implementation of the climate strategy.|
|President's Committee|• Its function is the implementation and follow-up of initiatives related to the climate strategy in each of the companies of the sectors in which Corficolombiana invests. • Regularly monitors, at all levels of the organization, the implementation of initiatives related to the climate strategy.|
|Sustainability Management|• Is in charge of implementing Corficolombiana's climate strategy. • Provides information for the organization's strategic planning based on the findings of the climate change scenarios that are useful for decision making. • Conducts socializations and training and capacity building sessions on the topic of climate change (effects, risks, opportunities, among others) at the holding company level and in the companies. • It is responsible for monitoring the implementation of the Climate Strategy and reporting management following the guidelines of the TCFD framework and the CDP (Carbon Disclosure Project) standard.|

|Investment Vice- Presidency|• It is responsible for analyzing new investment projects and integrating climate variables (e.g., an internal carbon price) into the investment process (policies, procedures, criteria). • It is in charge of proposing climate investments as part of the organization's transition plan. • Evaluates current investments taking into account climate criteria.|
|---|---|
|Corporate Vice- Presidency of Governance, Risk & Compliance|• It is in charge of performing at least once a year the climate risk analysis of the holding company. • Conducts socialization and training with Corficolombiana's investments in order to standardize the climate risk analysis process. • Accompanies investments in the analysis of climate risks and their respective financial impact.|

Roles and responsibilities according to position in the corporate governance structure.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Tenemos un Acuerdo Empresarial, que contiene una serie de principios y pautas para el relacionamiento entre Corficolombiana y filiales , en el marco de la estrategia de la Corporación. Dicho acuerdo menciona el compromiso de nuestras inversiones con medir y reducir sus emisiones y tener una estrategia de gestión del cambio climático.

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]Corficolombiana recognizes the real and potential effects that climate change can generate in its operations, considering that its current strategic investment sectors, as well as its future investments, are also vulnerable to climate variability. Corficolombiana also recognizes that its investments contribute to climate change with its GHG emissions. Therefore, this Policy ratifies Corficolombiana's commitment to manage climate risks and implement adaptation and mitigation actions that strengthen the Corporation's climate action framework.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes