Banorte Earns Higher ESG Score in Sustainable Fitch Review

Fitch Ratings’ Sustainable Fitch unit has reaffirmed Banorte’s Entity Rating at “3,” indicating an average sustainability profile, and raised its Entity Score to 60 from 58, citing incremental environmental and social improvements  linked to the bank’s ongoing sustainability strategy. Sustainable Fitch said the score increase reflects “minor positive environmental and social adjustments,” driven by the continued implementation of the bank’s sustainability plans.

Banorte is Mexico’s second-largest bank by market share, holding around 15% of the country’s total loan portfolio. The bank serves approximately 13 million customers and operates about 1,200 branches nationwide, accounting for roughly 14% of total deposits in Mexico’s banking system. Banorte is part of Grupo Financiero Banorte, which reported audited assets of MX$1.83 trillion (US$106.21 billion) as of Dec. 31, 2024.

Despite the improved score, Fitch noted that green and environmentally sustainable loans represent less than 5% of Banorte’s consolidated loan book. “The modest proportion of environmentally impactful lending is a key factor in the rating,” the agency said. Fitch added that Banorte’s plans to progressively phase out financing for coal, oil and non-conventional gas sectors are central to the group’s strategic plan through 2025, although it cautioned that materially changing the composition of the loan portfolio will take time.

Separately, Banorte’s pension fund, Afore XXI Banorte, announced new sustainability targets last year ahead of the COP30 climate summit in Belem, Brazil. These include a 42% reduction in absolute greenhouse gas (GHG) emissions and a commitment to aligning its investment portfolio with a 1.5°C global warming limit, in line with international climate goals.

On social factors, Sustainable Fitch assessed Banorte’s profile as strong, supported by its focus on financial inclusion in Mexico and its significant exposure to mortgages and lending to small and medium-sized enterprises. The agency said this activity generates a positive social impact by expanding access to credit for households and businesses.

Fitch also highlighted the bank’s governance practices, citing effective risk management, solid financial reporting and a high level of board independence at Grupo Financiero Banorte. Additional strengths include a publicly available code of conduct, transparent processes for handling customer complaints, and the absence of any identified use of tax havens, which the agency said supports strong transparency and risk management standards.