We promote climate action

We want to be an agent of change by implementing a climate change strategy that ensures we reduce and efficiently manage the natural resources we use in our operations, seeking to neutralize our emissions and raise awareness among our stakeholders in order to protect the environment.

Climate-related incentives

As part of the measures to move forward, Mallplaza defined climate-related incentives for the CEO, Senior Executives and Management. The KPI associated with meeting the regional carbon footprint reduction goal of scope 1 and 2 has a weight of 10% for the CEO and 15% for the Corporate Affairs Management and Operations Management. It is important to note that this KPI is linked to the annual monetary bonus, in addition to generating a relevant impact and forming a key part of our climate change management.

Environmental Management System (ISO 14.001)

In the 17 malls in Chile out of the 25 at regional level (68%) we have ISO 14001 certification - Environmental Management Systems (EMS). This international standard allows companies to demonstrate their commitment to environmental protection through the management of environmental risks associated with their activities, continuous improvement, and the training and awareness of employees regarding environmental impacts. It should be noted that in the remaining 8 malls (32%) that are not certified, Mallplaza conducts internal audits according to the ISO 14001 standard.

Energy Management System (ISO 50.001)

Similarly, in the 17 malls in Chile out of the 25 at the regional level (68%) we have ISO 50001 certification, which aims to maintain and improve an energy management system in an organization.

Sustainable Construction (LEED and EDGE)

We incorporate the necessary actions and technologies in terms of energy efficiency, emissions reduction, waste management and recycling, and water efficiency, in order to achieve certification in the following malls:


GOVERNANCE DOCUMENTS

Climate management

Climate management at Mallplaza is broken down into 3 main focuses:

  • Circular Economy and Waste Management
  • Water Management
  • Emissions and Energy

1. Circular Economy and Waste Management

Commitment:

Achieve 60% of waste valorization at regional level by 2025.
Achieve 100% implementation of Plaza 0 by 2025 in Chile.

Objective: Strengthen waste management by promoting the circular economy for the next five years.

Plaza 0

Plaza 0 is a circular economy and waste management model that transforms Mallplaza's food courts into "single-use packaging free", replacing disposable containers with reusable tableware and crockery, managed by Mallplaza. This initiative is expected to reduce the amount of waste generated by these spaces in the shopping centers that have implemented the model. This initiative is already operating in Mallplaza Egaña, which allowed us to obtain the Zero Waste Award in the Cultural Change Category.

Another pillar of Plaza 0 is the installation of urban gardens, open to Mallplaza communities and commercial partners operating in the food courts. The first of these was developed in Mallplaza Egaña, which consists of 25 beds with vegetable varieties such as vegetables and medicinal herbs.

Recycling

At Mallplaza we promote the valorization of waste in our urban centers, carrying out an integral management promoting recycling and composting and placing at the disposal of our visitors equipment for the collection of cans, Pet, coffee capsules, unused cell phones and clean points.

Hazardous and non-hazardous waste

The following table shows the hazardous and non-hazardous waste generated by country in 2022 with their respective treatments

Circular waste management and construction waste

For the ongoing construction project in Cali, a comprehensive waste management plan has been implemented, aimed at minimizing environmental impacts through waste reduction, reuse, and recycling as strategies to mitigate landfill disposal.

Following an analysis of key waste-generating activities during the construction phase, Mallplaza has identified five primary categories of waste that can be diverted from landfills: Plastic, Cardboard, Wood, Scrap Metal, and General Waste. These materials collectively account for an estimated 75% of total construction waste.

To ensure consistent adherence to waste management protocols, the construction process includes regular inspections for compliance. Additionally, construction workers undergo orientation sessions and specialized training on waste management techniques, overseen by the departments responsible for Health, Safety, and Environmental Management.

In alignment with the objectives outlined in the waste management plan, the Cali construction site is equipped with facilities to facilitate effective waste segregation and management. This includes the use of color-coded bins and signage to clearly designate waste categories.

2. Water Management

Commitment:
Reduce Mallplaza's direct water consumption by 30% by 2025.

Objective:
Implement a water footprint evaluation and management model that ensures efficiency and minimization of impacts

Committed to the care and responsible use of water, at Mallplaza we are aligned with LEED and ISO 14.001 certification standards that require protocols in the use, disposal and discharge of water in its urban centers, in addition to complying with the regulatory requirements of each country where we operate.

Due to the fact that a significant portion of our urban centers are located in areas of water scarcity, we have a significant restriction on the available resource because it could affect operational continuity. For this reason, we have implemented a strategy whose objective is to care for the water resource and which includes the following actions:

  • Renewal of landscaping by species and development of low water requirement according to approved projects.
  • Irrigation of green areas with a technified system.Reuse of gray water in urban centers that are located where the regulations allow it.
  • Operational control of faucet opening with water efficiency criteria in bathrooms with operation under 10 seconds.
  • Telemetry of water consumption through SIMON software for the 17 urban centers in Chile.

Water footprint measurement

We conducted a water footprint measurement to update our corporate learning associated with the optimization of the resource. During 2022, we implemented a working group to define different initiatives that will help us reach our final goal of reducing water consumption in our urban centers by 30% by 2025.

SIMON Water Management Software

In terms of water optimization, in 2021 we initiated a pilot plan with the 24-hour online management system called SIMON, which is responsible for actively and permanently analyzing the data of the water that enters the pond of one of our urban centers, as well as the water that leaves the pond to supply the operations. Thanks to the SIMON software, it is possible to activate corrective action plans if a consumption deviation is identified. During 2021, it was implemented in two urban centers in Chile and in 2022 this initiative was replicated at the regional level.

Water consumption

The following table shows Mallplaza's regional water withdrawal, discharge and consumption for the years 2021 and 2022

3. Emissions and Energy

Commitment:
Carbon Neutral 2030
Net Zero scope 1 and 2 by 2035

Objective:
We seek to implement a climate strategy and energy management that ensures efficiency and minimization of emissions, moving towards being Net Zero scope 1 and 2.

Climate Action Alliance

In 2021 we joined the global effort of the Climate Action Alliance of Chile, which will allow us to address the challenges of the climate emergency, becoming a mobilizing agent for changes that positively impact the environment.

Mallplaza measures the carbon footprint annually -in scopes 1, 2 and 3 - in all the countries where we operate, to then establish mitigation actions. In 2022 we achieved that 100% of the energy consumed in our operations in Chile will come from non-conventional renewable sources (NCRE), while in Peru we reached 25% of NCRE use with the incorporation of our Mallplaza Bellavista. As for the lighting of our urban centers, we are working to achieve -by 2025- the implementation of LED lighting in 100% of them, as well as an efficient air conditioning system through evaporative technology, replacing the R22 refrigerant gases that we still keep in our equipment.

Electromobility

In 2022, we continued our alliance with Copec to provide 38 electric vehicle charging stations in 17 urban centers in seven regions of Chile, which allow charging for different types of electric vehicles. By the end of 2022, we will continue to have this charging network, which together generate savings of 142,915 t/year of CO2 from the circulation of these vehicles versus conventional automobiles. By 2023, we will continue to strengthen our network with fast charging systems.

This commitment to electromobility responds to Mallplaza's ongoing commitment to promote clean transportation and mobility within the city and, in parallel, the interest of raising awareness among people to consider more sustainable ways of living, encouraging changes in daily habits.

Centralized control platform (BMS)

Since 2021, our Operations Center (COP) allows us to centrally optimize (BMS) and online the energy consumption of each of our urban centers in the three countries where we operate through the monitoring, control and management of energy in the climate, power, lighting and air flow systems at a regional level. The centralized control platform (BMS) manages the operation of all the equipment that generates energy consumption, taking into account demand-based scheduling to optimize resources. The Operations Center (COP), which monitors everything that happens in the different malls to ensure that their operation is of a high standard, is also responsible for monitoring the BMS.

Integrating climate risks into the risk management system

With the objective of making our actions transparent and demonstrating that we are a company that cares about lessening the impact of its actions in the face of climate change, in 2021 we conducted a climate risk analysis under the Task Force on Climate-related Financial Disclosures (TCFD) methodology, seeking that our stakeholders obtain qualified and certified information on what we do in this area.

  • TCFD Pillars:

    • Governance

A work plan was initiated to formally include climate change issues in the governance structures. Special work was done on risk governance, in order to include climate risk in a cross-cutting manner throughout the risk management processes.

During the year 2022, the high-level risk analysis and dual materiality initiative was started, which aligns the visions of risks that impact the company and the risks of company activities that impact third parties. The high-level risks were raised based on interviews and analysis with Mallplaza executives, establishing a list of 20 main risks, one of which corresponds to climate change. The next steps, by 2023, will be to evaluate the risks at an inherent level (without controls), assign risk managers, identify controls/key mitigation actions, and assign risk indicators (create if applicable). The instances for the review of risk management are quarterly presentation to the Directors' Committee and the Risk Committee, which meets bimonthly.

Additionally, we are evaluating the creation of a new risk category specific to climate change, in order to individualize this risk. It is currently part of operational risk management. In this context, in the first half of 2022, the risk of water shortage in Chile, in areas where there are Mallplaza facilities, was specifically assessed and evaluated, generating actions to mitigate it in case it materializes.

Integrating climate risks into the risk management system

  • TCFD Pillars:

    • Strategy

In 2021, we made progress in the analysis of risks associated with climate change to identify and evaluate current and potential threats and opportunities that could affect our operation, as well as our assets and value chain in this area.

In detail, as part of the project to implement the recommendations issued by the TCFD, we conducted a pilot analysis in our Mallplaza Norte urban center, where we applied the methodology for the survey and characterization of climate threats to prioritize them.

As a result, we identified the following physical risk as the most relevant to which our center could be exposed:

  • Heat waves.
  • Temperature increase.
  • Water scarcity.

For the assessment section of these hazards, we performed a quantitative analysis using the IPCC RCP (Representative Concentration Pathways) 8.5 scenario.

On the other hand, we were able to identify the following transition threats as the most relevant to which our Mallplaza Norte urban center could be exposed:

  • Increase in the price of Greenhouse Gas (GHG) emissions and application to other sources (carbon pricing).
  • Regulation of energy efficiency.
  • Costs for the transition to low GHG emissions technology.
    • Rising raw material costs.

For the advisory section of these threats we performed a quantitative analysis, using the IEA (International Energy Agency) and PELP (Chile Long Term Energy Planning) scenarios. In addition, we developed a quantitative analysis in which we included the use of climate models and scenario analysis to prioritize some risks.

Integrating climate risks into the risk management system

  • TCFD Pillars:

    • Risk management

We worked on a methodology to identify, evaluate and prioritize climate risks, as well as to integrate them into the company's operational risk management systems. In addition, opportunities for improvement were identified to continue strengthening climate risk management in the future.

  • Metrics and targets

We started working together to define parameters that will allow us to manage and, eventually, report on our action on climate change.

Carbon Footprint

The following tables present the emissions generated by Mallplaza in 2022 for the different scopes in the 3 countries where we operate, along with the breakdown of scope 3 emissions by category. It is important to note that all this data is verified by a third party.



To determine indirect emissions in Mallplaza we defined five criteria to assess significance: magnitude, influence, availability of information, transparency and timeliness. In addition, we developed a Significance Matrix, where we evaluated the inclusion or exclusion of indirect emission sources. The exclusions were verified during the audit exercise and it was evidenced that the criteria for exclusion were met.Translated with www.DeepL.com/Translator (free version).