Cementos Argos SA

## Management system to align lobbying activities & trade association memberships & governance framework

[In Argos we have a Code of Business Conduct[1] that has a set of rules to know how](https://acortar.link/POPkQ8)
to behave as a company. It includes all the engagement activities with our
stakeholders. This Code must be understood as a tool that has a set of rules to
help us shaping our behavior based on integrity. That is, to always act in a
responsible, honest, upright, reliable, transparent manner and in accordance
with the law and the internal policies of Grupo Empresarial Argos.

This Code defines the governance framework for stakeholder engagement and
covers all jurisdictions where we have operations and guides our lobbying
activities and trade and industry association memberships.

Also, Argos zero tolerance attitude to corruption and the prohibition of bribes in
[any form are contained in this Code (Art. 1, Ch III) and in the Anticorruption](https://acortar.link/OQKszI)
[Policy](https://acortar.link/OQKszI)

The Anticorruption Policy also regulates charitable contributions, stating it
should always have a lawful purpose and never serve to cover up acts of
corruption or bribery. Additionally, this Policy establishes that contributions to
democracy are exceptional, and their sole purpose is promoting democracy and
that these contributions shall be always adjusted to applicable legislation and
should be in accordance with the limits fixed by authorities and will never aim to
obtain undue advantages. Besides, to ensure transparency, Argos has a donations
process which aims to grant that social contributions are aligned with the
Anticorruption Policy and seeks to prevent these contributions are used for the
payment of bribes. Taking this into account, at Argos lobbying activities are
**carried out through trade and industry associations that represent and**
**promote key issues for our company, including climate change and activities**
**aligned with the Paris Agreement.** [...] **The associations assessed are the most significant for our industry and in the countries where we operated in 2023. These organizations were assessed by reviewing their public positions using their websites, media releases, publications, social media, and, when needed, discussions with the employees who have a relationship with the trade associations. The Corporate Affairs Vice President is responsible for approving the engagement, monitoring the progress, and approving the results.**

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]In 2021, Argos signed the Letter of Commitment of the Science Based Targets Initiative (SBTi), in which the Company commits itself to establishing objectives to reduce CO2 emissions, aligned with its criteria in the trajectory of the temperature ambition well below 2ºC (SBT website https://bit.ly/3tBwyoL; IR p. 112 https://bit.ly/3PfFARD). The resources that enable the adoption of 1.5°C-aligned emission reduction targets in the cement industry are not yet available. For this reason, since the end of 2021 SBTi formed an Expert Advisory Group (EAG) to develop a set of science-based target setting methodologies, tools and guidance that will help cement companies set 1.5ºC-aligned targets.

Argos set as ambition to offer carbon neutral concrete by 2050 aligned with the Net Zero ambition plan of the Global Cement and Concrete Association (GCCA) initiative. To achieve the ambition of offering carbon neutral concrete by 2050, Argos has prioritized the mitigation of its scope 1 emissions, given that these emissions correspond to 66% of the company's total emissions. For more than 10 years, Argos has been working to reduce its carbon footprint and has reduced its scope 1 CO2 emissions by 14% from the baseline (year 2006).

It is also highlighted that in 2020 Argos participated through the Colombian Chamber of Cement and Concrete (PROCEMCO, for its acronym in Spanish) and the Ministry of Industry, Comerce and Turism in the update of the Colombia's NDC and in 2021 participated through PROCEMCO and the National Association of Industrialists (ANDI, for its acronym in Spanish) in the revision and comments of the Colombia's Long-Term Climate Strategy to Comply with the Paris Agreement (E2050) and the Climate Action Law (Law 2169 of 2021), documents that adopted the targets and actions established in the NDC. Furthermore, in 2021 Argos signed the Agreement of Wills to join the National Carbon-Neutrality Program in Colombia with the aim of helping to achieve the goals established in the NDC (IR p. 111 https://bit.ly/3PfFARD).

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