Materiality

At Grupo Bafar, we recognize the importance of identifying priority issues to develop a solid environmental, social responsibility and corporate governance (ESG) strategy. Our focus centers on making a significant impact both inside and outside our organization, creating long-term value for all our stakeholders.

We began our materiality process in 2021 and carried out its first update in 2024, incorporating a double materiality approach: in addition to assessing how our operations affect people and the environment, we analyze how sustainability risks and opportunities bear on our financial performance.

This exercise allows us to focus our efforts and resources on managing the most relevant issues and to make strategic and grounded decisions, ensuring that our actions and practices are aligned with our stakeholders' needs and expectations, as well as with the current challenges and opportunities within the ESG scope. A further update of the study is planned for 2026, aimed at strengthening its alignment with the applicable standards and reporting frameworks, including GRI, SASB, IFRS S1 and IFRS S2.

Methodology

Stakeholders

At Grupo Bafar, we have conducted an exhaustive analysis to identify our stakeholders and we have developed a communication strategy and approach that seeks to meet their needs and expectations. In this strategy, we have defined the issues to be addressed, the communication channels and the frequency of communication in order to establish an effective and meaningful dialogue with our stakeholders. Our objective is to maintain a solid and transparent relationship, providing relevant information and promoting the active participation of our stakeholders in our initiatives and decisions.

Risk and Crisis management

At Grupo Bafar, we have conducted a thorough analysis to identify the potential environmental, social and economic risks that our organization could face due to the nature of our activities. Some of the risks identified are the following:

SDG linkage

Each of our relevant issues has been aligned with a Sustainable Development Goal (SDG) to ensure that our actions and approaches contribute to a broad spectrum of sustainable goals. These SDGs range from eradicating poverty and hunger, to mitigating climate change, promoting education, gender equality, protecting the environment and developing sustainable communities and cities, ensuring that no one is left behind. Through our management and initiatives, we have made an impact on the following SDGs, strengthening our commitment to sustainable development: