Sustainable Infrastructure

Our estates are the core of our business, hence FUNO places special attention to sustainability characteristics throughout their life cycle, from development, design or acquisition, to their possible sell off or demolishment, including of course maintenance and operation.

The phase of maintenance and operations, is the most significant one, in terms of environmental footprint and social impact. Therefore, it is this phase where we have focus our strategy to reduce energy and water consumption, as well as minimizing our GHG emissions and solid waste.

Developing infrastructure

FUNO has been a referent in Mexico for pioneering innovative and sustainable solutions for the Real Estate market. All properties developed by FUNO and those we have acquired in their construction phase, hence the ones we can influence in their design and planning, are LEED certified or pre-certified by the USGBC. This certification recognizes leadership in environmental performance, including energy efficiency; it is a voluntary certification based on international renowned guidelines, aiming at recognizing high performance and sustainable infrastructure, in 9 basic areas:

1. Integrative process.
2. Location and transportation.
3. Sustainable sites.
4. Water efficiency.
5. Energy and atmosphere.
6. Materials and resources.
7. Indoor environmental quality.
8. Innovation.
9. Regional priority.

34% of our office portfolio in operation has been LEED Certified, while 19.5% of our LEED portfolio in development is pre-certified; the following are the properties which own a LEED certification or pre-certification.

In Mexico certifying infrastructure under sustainable principles, is a new practice which require additional efforts and increased costs from developers which may not be appropriately compensated for its efforts, due to lack of culture or information in the market. Nevertheless, FUNO keeps pushing these practices in the Mexican market and we ratify our commitment with best sustainability practices not only for new developments but also for existing infrastructure. Currently we are evaluating the possibility of certifying more properties in our portfolio.

Acquisition phase

When acquiring new estates, we have strict selection processes, which on top of revising fiscal, financial, legal and architectural requirements, we also include environmental and social aspects such as:

• Transit impact studies.
• Land use certifications.
• Environmental Impact Assessments.
• Generation and registration of hazardous waste.
• Delivery-reception manifesto for hazardous wastes, issued by a competent party, for the transportation and final disposal of such wastes.
• Delivery-reception manifesto for municipal waste.
• Water supply services.
• Discharge of waste water mechanisms.
• Environmental license for GHG emissions.
• Existence or absence of polychlorinated biphenyls, asbestos.
• Existence or absence of environmental fines.
• Existence or absences of soil pollution.
• Others.

In a similar way, during our due diligence process, we make sure owners and property users, have been consulted and/or compensated in a fair and just manner. We conduct at least 3 inspections and site visits, performed by independent parties which validate information and the situation of the properties.

FUNO additionally conducts internal and legal processes with third parties, in order to make timely payments and fair compensations whenever we buy a new property.

Our processes do not discriminate if owners or property users are individuals, collectives, indigenous groups, women, etc.; FUNO respects the rights of its counterparts in all cases, at all times.

To date, FUNO has not acquired properties located inside of indigenous territories. However, we recognize that in Mexico, there may be cases of deficient recognition of women and indigenous groups rights and land ownership, even though their practices and traditions acknowledge their ownership. FUNO is committed to consult, inform and collaborate with affected parties in case we ever want to acquire a property involving them.

Existing Infrastructure

We strive for operational excellence in all our properties. Our main objective is reducing to its minimum our electricity and water consumption, as well as GHG emissions and solid waste production; hence minimizing our environmental footprint.

Provide our tenants with innovative technological solutions is a constant effort within our organization; offering safe and healthy spaces removing what’s wrong (without toxic paints, hazardous chemicals, polluted water) and increasing what is right (natural lighting, double layering in facades, emergency exits, locally sourced materials, endemic biodiversity, and easy access to public transportation)

At our shopping malls, we upkeep responsible consumption standards: we require the use of non-toxic paintings and we have even required our tenants to optimize their floor and space designs in order to reduce energy consumption and maximize natural lighting. As a result of these, we know allocate 70 watts per square meter to tenants, whereas 4 years ago, we allocated 250 watts per square meter.

Transportation

The 100% of our office and retail properties, are located in privileged locations, with reachable, accessible and sustainable transportation alternatives, particularly near multiple-passenger options such as subway, metrobus, public buses, cycling stations and electric-car charging stations.

The privileged locations of our properties are a key element, when deciding whether to acquire a new property or not. Accessibility to our shopping centers and office buildings, as well as the availability of several transportation options, have become crucial in all our acquisition process and as part of our sustainability commitment.

Materials

Carefully selecting materials and inputs, is key to managing and operating sustainable infrastructure. In each of our LEED certified buildings, we comply with all requirements:

• Sourced, recovered and manufactured within 500 miles of the site.
• Including the highest possible percentage of recycled material.
• We strive to include certified wood, coming from sustainably managed forests in Mexico.
• Use of non-toxic compounds, volatile organic compounds and avoid hazardous chemicals which may negatively affect our tenants and their guests.

In case of remodeling or relevant alterations to any of our shopping malls, FUNO promotes locally sourced materials (currently around 80% of our materials come from local sources). This is a significant initiative to reduce costs for FUNO, but also to positively impact local communities.

We also include eco-efficient requirements when sourcing technologies; always trying to minimize our consumption and the impact of our operations. Furthermore, we include weather and climatic stipulations when sourcing materials; such as resistance to natural phenomena, corrosiveness, humidity, durability, easiness of maintenance, etc.

Social Inclusion

Due to the nature of our business, we continually contribute to community development and economic growth.

In many cases, our estates make the part of infrastructure hubs, which bring swage systems, water and electricity grids to surrounding communities, as well as other municipal services. These changes bring about other local businesses and stimulates economy while generating financial gains to societies.

FUNO´s shopping malls are open social spaces and commercial hubs, but also play the part of recreational areas which entice guests into cultural, philanthropic and educational initiatives.

We continuously invest in our shopping malls, to enhance their market standing and to improve guests experiences, but also because we are convinced they have become centers for social cohesion and family recreation.

One of our priorities is to provide infrastructure in order to promote social inclusion for everyone, constantly we strive for new ways to accommodate when necessary, our properties accessibility in order to be comfortable for any community member, regardless of age, or physical circumstances.