We have mechanisms and processes in place to select or screen and renew our suppliers, considering the following criteria for our commercial relationships:

• Environmental and social: protection of the community and the environment, human rights, safe and healthy workplaces, and respect for the fundamental labor rights (decent conditions, freedom of association, elimination of harassment, discrimination, child and forced labor).
• Governance: ethics and integrity, anti-corruption practices, unfair competition and anti-money laundering.
• Business relevance: commercial performance, legal compliance and quality of the products and services provided.

The contracting processes outlined in our policies and codes require all our suppliers to meet the following requirements:

1. Sign the Code of Conduct for Business Partners (Grupo México) or the Code of Conduct for Suppliers, Contractors and Relevant Business or Commercial Partners (Americas Mining Corporation).
2. Accept the Grupo México General Human Rights Policy.
3. Register their personnel with the social security agency or equivalent in the countries where we operate.
4. Provide proof of good standing with the corresponding tax authorities.
5. Sign the data protection notice, letter of consent, and related parties disclosure statement.

Additionally, our Mining Division has adopted the Dow Jones Risk & Compliance tool, which provides a due diligence process for verifying the integrity of our supply chains and business partners as a requirement for doing business with us. The process includes the following criteria:

• Corporate governance
• Money laundering
• Prompt payment
• Social responsibility
• Sustainability

We conduct periodic reviews of our suppliers and contractors, focusing on assurance that compliance is being met with applicable regulations and our commercial requirements.

We have also adopted international practices to strengthen the assessment of our business partners in terms of sustainability, with particular focus on human rights, work conditions, the environment and anti-corruption.

These assessments are conducted considering the following levels of application:

1. Assessment of commercial performance.
2. Onsite audits and assessments by the procurement departments of our divisions or consultants contracted by the company.
3. Sector assessments and certifications.

(For more information, see Evaluation.)

For reporting purposes, our suppliers are classified as follows:

• Tier 1 – Direct suppliers: representing 100% of our annual procurement spending
• Significant suppliers in Tier-1: those who supply critical or essential products or services for operations and who also account for 80% of the company’s expenditure
• Non Tier-1 suppliers: refers to suppliers that provide their products and services through Tier-1 suppliers to the company

We offer a variety of development programs, technical support services and mechanisms for receiving concerns to encourage suppliers and contractors to adopt commitments to doing business in a more ethical manner and to support their sustainable growth:

• Suppliers Portal (AMC): to track payment processes.
• Shared Services Center: administrative team that supports supplier and procurement processes.
• Community Care Service: mechanism for open communication between the community and Grupo México, receiving grievances and concerns from the community, including suppliers.
• Forjando Futuro (Forging Futures) – Suppliers: company program that supports the development of local supply and training, operating in the Mining Division in Mexico and Peru.

The Forjando Futuro (Forging Futures) program offers local suppliers ESG skills training and development.