Climate Action

Climate governance

Within Mallplaza’s organizational structure, the Corporate Affairs Management plays a strategic role at regional level and reports directly to the General Manager. Its main function is to lead the management of corporate communication, sustainability and environmental relations, ensuring alignment with the company’s vision and objectives. In addition, he is responsible for reporting to the Board of Directors on the progress of the ESG strategy, ensuring fluid and transparent communication. These sessions, which are held annually, are crucial to analyze compliance, monitoring and progress in the implementation of ESG commitments, as well as their integration into the corporate strategy.

In Mallplaza, within our governance, we have a sustainability committee, which is composed of the general manager, executive committee and ESG submanagement, who meet every two months.

This committee oversees compliance with the sustainability policy and monitors the objectives, goals and indicators of our ESG strategy, which involves social, environmental and governance issues, as well as defining the criteria for stakeholder relations.

Regarding environmental issues, the committee is responsible for overseeing and managing issues related to our Climate Action pillar, which is broken down into 3 areas: energy efficiency and carbon footprint, water efficiency, and circular economy and waste management.

Specifically, this Climate Action pillar is associated with 5 time-bound commitments specified in our ESG strategy, for which the committee defines the roadmap and is responsible for monitoring compliance with each one.

Environmental and Climate Change Policy

We seek to promote the sustainable development of our activities, reducing the adverse impact of our operation on the environment. In line with this commitment, we have an Environmental and Climate Change Policy that establishes the general principles that guide the behavior of Mallplaza and its employees in these matters. This Policy has a corporate scope, being applicable to Plaza S.A. and its subsidiaries in Chile, Peru and Colombia, and must be implemented and its compliance required to all employees.

The programs and initiatives that we implement are framed within the framework of this Policy, and cover aspects such as energy efficiency, reduction of consumption and waste, maintenance, etc.

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 strategy. Mallplaza’s KPI methodology includes the cascading of goals from management, which implies that non-executive collaborators from corporate affairs and operations management include the carbon footprint KPI in their performance evaluations. Finally, within operations management, collaborators (non-executives) have compliance with regional water consumption included in their KPIs.

Net Zero Commitment

During 2024 we continued to work on our short-, medium- and long-term roadmap to be Net Zero Scope 1 and 2 by 2035, against our 2021 baseline. This goal follows science-based guidelines, where we plan to achieve at least a 90% reduction of our baseline Scope 1 and 2, and then neutralise the remaining emissions through various offsetting methods. The forms of offsetting will be defined close to the end of the target, depending on the options available at that time and their technical-economic comparisons. In the three countries where we operate, we measure our carbon footprint annually in Scopes 1, 2 and 3, and these measurements are audited by an external entity.

Environmental programmes

Mallplaza has an environmental and climate change policy, which establishes our commitment to develop our operations efficiently, respecting the environment and complying with current environmental commitments and regulations.

This can be seen in the implementation and maintenance of the environmental management system certified since 2011 based on ISO 14001, which currently considers the 26 urban centres in operation within its scope. In addition, water and energy efficiency criteria are incorporated into the design criteria and operational standards, both in the purchase of new elements and in the design and maintenance of new projects/extensions of our assets.

When purchasing new assets, the due diligence performed by Mallplaza includes the regulatory compliance and environmental management instruments that these have had, such as Environmental Impact Statements (EIS), environmental licenses, etc.

On the other hand, the relationship with the different Stakeholders is carried out through different means of communication, one of them being the Stores Portal, where Mallplaza disseminates communications with its tenants on different topics, including environmental issues, where it publishes updated information on new environmental regulations or standards that affect the operations of urban centers, for example, the entry into force of the law on light pollution in Chile.

Focus on promoting climate action

Through our ESG commitments, we are moving towards more efficient, sustainable and circular management with a focus on climate action. To achieve this, we not only conform to international standards of continuous environmental improvement, proactively monitoring and managing objectives, targets and indicators in the strategic areas of the business, but we also have a comprehensive strategy based on three key pillars, each with clear, measurable and defined goals, which allows us to advance in our commitment to sustainability.

• Energy efficiency and carbon footprint
• Water efficiency
• Circular economy and waste management

Energy efficiency

The energy efficiency initiatives developed during 2024 are detailed below.

Electricity generation

Currently, 4 of our Mallplaza shopping centers have been designed to generate their own energy, through photovoltaic panels. These are: Mallplaza Cartagena in Colombia, Mallplaza Arequipa in Peru and, Mallplaza Calama and Mallplaza Copiapó in Chile.

• Mallplaza Calama has more than 2,000 photovoltaic panels covering an area of 3,360 mts2, which generate electricity for the common areas – Mallplaza Copiapó has 1,920 panels with a nominal generation capacity of 816,000 kWh/year, which feed premises and common areas
• Mallplaza Cartagena has 3,269 panels covering an area of almost 5,000 m2, generating electricity for premises and common areas of the center.
• Mallplaza Cartagena has 3,269 panels covering an area of almost 5,000 m2, generating electricity for stores and common areas of the center
• Mallplaza Arequipa has 192 photovoltaic panels whose generation is used for lighting the galleries.

Water Efficiency

At Mallplaza we are concerned about reducing water consumption in our operations. Proof of this is our alignment with LEED, EDGE and ISO 14001 certification standards, which require protocols in the use, disposal and discharge of water in the urban centres operated by the company. We project a 30% reduction in direct water consumption intensity by 2025 compared to the 2019 baseline (m3/GLA). During 2024 we have managed to reduce by 15.3% m3/GLA compared to 2019.

An essential part of our strategy is the continuous search for technologies and opportunities that allow us to implement improvements in the management of water used in our operations. Likewise, measuring our water footprint provides us with valuable information for more informed decision making, associated with the optimisation of this resource.

Mallplaza has implemented various actions, programmes and initiatives to promote water efficiency in its operations by 2024:

Sustainable construction

In 2015, with the construction of Mallplaza Egaña, we certified for the first time one of our urban centers under sustainable construction standards, achieving the highest category of this standard, corresponding to the “Gold” category. Since this achievement, Mallplaza has committed to certify all its new constructions under a sustainable construction standard, seeking to be efficient in the use of resources from the construction stage of our urban centers. Today we already have 6 LEED certified urban centers. Today we already have 6 LEED certified urban centers (Mallplaza Egaña and Mallplaza Copiapó in Chile, Mallplaza Arequipa and Mallplaza Comas in Peru and Mallplaza Manizales and Mallplaza Buenavista in Colombia), and we have another 2 urban centers certified under the EDGE standard (Mallplaza Arica and Mallplaza Los Domínico in Chile), both in the Advanced category.

On the other hand, it should be noted that Mallplaza buildings are not developed in virgin areas because the feasibility of a shopping center project requires population density, real estate development and road infrastructure. In addition, all projects are built based on the use of land approved by the authorities and strictly comply with the current environmental regulations of each country, which defines the standards regarding being able to develop new constructions only in authorized areas and that meet technical feasibility.

Additionally, it is important to note that the vast majority of Mallplaza’s shopping centers have been developed and built in-house, the company has only acquired a previously existing shopping center. For this reason, the programs have evidently not focused on aspects such as due diligence or audits in pre-purchase phases, or in cases of alliances or joint ventures; nor the establishment of baselines in the pre-purchase or acquisition phase. Mallplaza’s environmental programs and initiatives are focused on construction and operation, thus covering all the key areas of our business.

Construction waste management

Within Mallplaza’s operations during 2024, the most important project in terms of construction was Mallplaza Vespucio, which added around 20,000 m2 of new operational space to the facility. The company awarded the construction of this project was responsible for the recycling of all metal structures and iron used in the project and the separation of waste into organic and inorganic categories. Given the magnitude of the construction carried out at Mallplaza Vespucio, this project alone represents more than 50% of the area built in Mallplaza’s operations during the year 2024.

Attributes of building materials

In order to constantly minimise the environmental impact of Mallplaza’s operations, wooden pallets are used to transport products in all the company’s construction projects. These pallets are highly reusable and at the end of their useful life, given their characteristics, they can be recovered in multiple ways. This ensures the recyclability of these materials, reaching recovery percentages of close to 100%.

Energy Efficient Installations

Mallplaza considers as one of its strategic pillars the reduction of its impact on the environment through energy and water efficiency and efficient waste management towards circularity. All these aspects are considered not only in day-to-day operations, but also in the design and construction of assets. Mallplaza’s facilities have been designed from the outset to comply with sustainable construction standards and to achieve international standard certifications.

Thus, since 2013, Mallplaza has worked constantly to ensure the efficient and sustainable operation of its urban centres, achieving to date the certification of 9 of its centres, 7 under the LEED (Leadership in Energy and Environmental Design) standard and 2 certified under EDGE (Excellence in Design for Greater Efficiencies). Within Mallplaza’s operations, in 2024 these urban centres generated 23.5% of the company’s revenues.

Sustainable Services

Within the Mallplaza facilities, we have services for our tenants and the public that help us to control and reduce the impact of our operations, thus fulfilling our commitment to climate action. Some of these services are:

Electric car pumps: In our shopping centres, we have electric car pumps for our customers who visit us in electric cars, in order to encourage the use of these vehicles and to provide comfort and customised services to our customers. This service, apart from helping us to meet our objectives, also provides us with an extra line of income:

Plaza 0: To reduce the impact of our operations in terms of waste, we devised the Plaza 0 project, which aims to minimise the waste generated in the food courts of our shopping centres by replacing single-use plastic with reusable tableware and reusing the organic part of our waste, which is processed to obtain a liquid with a high nutrient content. This project reduces the total amount of waste that must be taken to final disposal, which also results in savings for Mallplaza by reducing the volume of waste to be managed. This in the last 3 years has allowed savings of:

Low carbon services

To offer a low-carbon service, we supply low-carbon energy to the commercial premises. Mallplaza purchases certified renewable electricity, in addition to investing in generating its own energy on-site with solar panels. In this way, we are able to help our customers (the companies that rent commercial premises in our mall) avoid the GHG emissions associated with the energy they consume.

Urban revitalization

Mallplaza has taken an active role in urban regeneration through a revitalization strategy that extends beyond commercial centers. This approach is reflected in projects that repurpose underutilized land, delivering meaningful enhancements to the urban and social fabric of surrounding communities.

A clear example is Mallplaza Cali, built on a site previously used for parking. Transforming this space into a vibrant community hub has not only created over 1,600 direct and indirect jobs but also delivered more than 13,000 m² of green areas and public spaces, contributing to vitality, enhancing safety, reducing urban decay, and promoting sustainable mobility in a socioeconomically vulnerable area. This project not only revitalizes its immediate footprint but also drives the socioeconomic development of the neighborhood through local employment and access to new recreational areas.

Similarly, the remodeling of Mallplaza Vespucio includes a 12,000 m² park integrated into the adjacent Vicuña Mackenna Park, with major improvements in urban connectivity, universal accessibility, and direct integration with public transportation. This intervention supports the environmental and social recovery of the area, reinforcing territorial cohesion with nearby neighborhoods and enabling equitable access to sustainable infrastructure and urban services.

In addition, Mallplaza promotes social initiatives with an urban recovery component, such as the improvement of Plaza Heroes de Iquique through the installation of exercise equipment, tree planting, and community murals. Currently, six additional projects are underway, integrating reforestation, recycling, and the development of community spaces, strengthening social cohesion, inclusion, and urban resilience especially in areas facing social or environmental challenges.

Through these initiatives, Mallplaza positions urban development as an inclusive and sustainable process. These efforts not only seek the efficient use of urbanized land but also aim to strengthen the social fabric, improve the physical environment, and regenerate structurally underserved territories, in alignment with leading international sustainability standards and principles of responsible urban development.

Climate risk management

Climate risks are managed within Mallplaza’s enterprise risk management process. Risks of the following types are analyzed: acute physical, chronic physical, reputational, regulatory and legal, technological and market. The scope analyzed covers own operations, as well as the upstream and downstream value chain. See table with climate risks identified.

Climate risks

Climate opportunities

Adaptation to physical risks

During 2023 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 operations, 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 an analysis in five urban centers (three in Chile, one in Colombia, one in Peru), where we applied the methodology for the survey and characterization of climate threats to prioritize them.

As a result, we identified the most relevant physical hazards to which our centers could be exposed and the effects they can generate:

• Extreme temperatures, which can generate: interruptions in the water supply (water shortage), power outages, intermittent cooling equipment due to overexertion, damage to the health of collaborators, fires in sites adjacent to some urban centers.
• Extreme rains, which can cause: interruptions in the water supply (turbulence in water catchment sources), power outages, damage to roofs, damage to equipment.

We are currently working on the survey of key controls for these specific risks, which integrate both physical and non-physical measures to be mitigated. It should be noted that the global climate change risk has been inherently assessed by Mallplaza so that, once the respective controls/mitigators have been reviewed, we can arrive at a residual risk result. With this, we will be in a position to perform the gap analysis with respect to the accepted risk appetite and, based on the result, define the action plans and associated priorities to be developed.

The action plans, in the case of the Physical Risk of Climate Change, are oriented to establish or improve the design and implementation conditions of the key controls around the specific risks identified and prioritized. The action plans must bring the residual risk to tolerable values or under the defined appetite, depending on the criticality of the risk, which will vary in the definition and implementation times of such plans.