Built infrastructure plays a central role in urban dynamics. Design trends, material selection and constructive methods, can positively or negatively affect operational costs, availability of products and natural resources. Hence sustainable infrastructure becomes fundamental to quality of life and protecting our natural environment.
Fibra Uno has 63.4% of its portfolio as triple net leases, which indirectly incentivizes tenants to become more efficient, as they have to pay all O&M costs. In addition the company has urban-site investment programs which allows us to benefit from demographic trends, favoring denser walkable urban communities and urban properties near transportation hubs, by investing in urban infill redevelopments and mixed-use properties.
Architectural and structural design, greatly impact the life cycle of a building, having implications on water and energy consumption, their environmental footprint and financial consequences. Therefore, at FUNO we strive to make investment decisions, with their operational costs and eco-efficient potential in mind.
Likewise, we are well aware that location is a decisive factor intensifying energy expenditures, transportation and other related resources; increasing our fossil fuel consumption, unnecessary employee commuting and greater impact on our operations.
Hence, our office and retail estates, are in privileged locations and whenever possible and economically feasible we certified them LEED. It represents a higher initial investment, but we are convinced it will benefit us in the long run, to have better environmental and energy efficiency with effective operational standards, less expenses for our tenants and better comfort to our guests.
Our environmental strategy focuses on:
Environmental management at FUNO follows the same structure as all other sustainability issues. However, our operations vice president and the director of mainainance play a relevant role in executing initiatives.
Some general guidelines we have set for the appropriate environmental management of our portfolios are:
In general, as an organization, we strive to prevent more than remediate environmental impacts; our prevention mechanism spreads across maintenance activities, investing on eco-friendly technologies and acquiring materials with environmental criteria in mind.
Whenever there are threats of severe or irreversible environmental damage which may be result of our operations, FUNO, shall try to employ effective measures at reasonable costs to mitigate environmental degradation.
When we have found polluted soils as part of the acquisition due diligence process, during environmental audits. FUNO has requested the seller to remediate all damage before acquiring the property.
The United Nations Environmental Program (UNEP) published that built infrastructure and particularly buildings account for 1/3 of total global emissions. Buildings are FUNOs business core and we understand the social responsibility we have to measure, reduce and mitigate our emissions.
According to another United Nations report, at least 30% of energy consumption is wasted by inefficiencies. Henceforth we have decided to focus on energy efficiency in our estates and to make this our main sustainability priority and objective.
We believe, this objective not only benefits society and our finances; our effort must go beyond eco-efficient technologies and we strive to generate cultural changes within the organization, to achieve long lasting results.
Since 2016, we began to measure and monitor our electricity, fossil fuel and refrigerant consumption, as well as business travels; in order to determine our most important emission sources.
At FUNO we have identified our main emission sources:
From all of the above, 80% of our emissions come from the first four sources listed. Sources 5-8 amount for the other 20%.
As a result, our reduction strategy focuses on these four sources, since we believe they will produce the best cost- benefit results, and will impact the most in our emissions in the short, medium and long-term.
On the first scope, our emissions vary depending on the estate, some of the main factors affecting our emissions are:
In our initial analysis, we have identified barriers which may arise when executing our strategy, in order to measure, reduce and mitigate our emissions:
Real Estates is perhaps one of those industries where climate change is visible and consequential. The increasing amount and intensity of rain, hurricanes and tropical storms, paired with water scarcity and flooding, are definitely natural phenomena we should be preparing for.
In a natural disaster, LEED scores, toxic free paintings and eco-technologies do little to our business if the infrastructure itself is unavailable to lease, manage or sell. Unfortunately, as real estate managers, there is little we can do to acquire resilient buildings capable of enduring all natural phenomena, given that there are few of such buildings available in the Mexican market. However, we undertake a due diligence process, before acquiring an estate; and it is in this phase, where we analyze each property complies with specific requirements according to the area they are in. For example, in Mexico City a fundamental requirement would be to have seismic reaction mechanisms and in coastal areas we search for protection and reaction safety mechanisms in case of hurricanes.
On those estates where we do have a saying in their design, say those we develop or acquire in their developing stage, FUNO uses state of the art engineering, architectural, design and technology to prevent and react in case of natural phenomena or human made disasters (i.e. Torre Diana, Mitikah and Torre Reforma Latino)
Every single one of our estates have action and reaction plans for different scenarios and we reinforce such plans with structural changes (when needed) to increase their resilience in case of future natural disasters (such was the case in Cabo ley and Gran Patio Pachuca)
In order to reduce emissions and our impact on Mexico City´s pollution problematic; as well as to support efforts made by authorities and the private sector, FUNO created a partnership with different automotive brands, in order to install in our shopping malls, electric-car charging stations. Currently we have them in Mexico City, Guadalajara and Monterrey, our three main metropolitan areas.
We also partnered with Biopappel, which is a company dedicated to collect residual cellulose and transform it into new recycled paper; FUNO gets 9 boxes of recycled paper for office use, for every 5 tons of cellulose delivered to them from our waste paper/magazines/news paper, etc.
All our properties have energy reduction goals.
Through our Vice-president of Operations and in particular through the Director of maintenance services, we regularly monitor and adjust, the use of electricity, gas, refrigerants and other fuels, allowing us to take appropriate measures to reduce our consumptions.
Our reduction strategy, is based on a one-by-one analysis; given that each estate has specific requirements depending on market, climate, location, electricity availability and working hours.
In the following map, we portray data on our energy consumption by state; these may reflect higher concentration of FUNO´s estates or higher consumption due to climatic conditions.
Our strategy to efficiently use energy, includes the following:
At FUNO we put our tenants comfort first, but we are also conscious of the importance of taking care of natural resources and our consumption. Hence through our tenant coordination department, we revise and analyze with each tenant their electricity requirements before they even enter our estates. Always putting out front, tenats needs and energy efficiency per square meter, we do so by:
CAs a result, we are now able to allocate 70 watts per square meter to our tenants, whereas 4 years ago, we gave them 250 watts per square meter in our planning phase. Without compromising comfort nor well-being.
Water availability in Mexico is a major problem and it has become relevant in the last few decades, according to official figures from INEGI, water availability is distributed as follows:
At FUNO we are conscious of such national struggle and of the impact our operations have on those states below average availability. Hence we have taken measures to promote efficient use, reuse and treatment of waste water within our operations.
Such actions, not only preserve an invaluable natural resource, but it also reduces our operational costs and prevents maintenance costs.
Currently our water consumption is distributed as follows.
Our strategy to efficiently use this resource, includes the folowing activities:
70% of our shopping malls have waste water treatment plants: treated water complies with national regulations and NOM-002, it is also constantly monitored and sent for garden watering, municipal sewage system or used for aquifer recharge.
At FUNO, we strive to include eco-efficient technologies in our estates, in order to gurantee optimal use of this resource. Whenever we make improvements or important investments on eco technologies, we prioritize those estates with intensive water use, aiming at better cost-benefit and increased positive impact on the use of water and water availability to communities around.
We also verify our waste water complies with regulation and does not negatively damage ecosystems or surrounding communities.
Together with our tenants and guests, we have executed waste management strategies; some of them are:
100% of corporate waste cellulose (paper, cardboard, etc.) is recycled through a third specialized party.
Although this initiative may seem elemental, its impact is high, because it goes beyond appropriate disposal of office waste, it has contributed to:
Additionally most of our retail estates have implemented cardboard recycling programs; through practices like this, FUNO optimizes its impact generated by solid waste while reducing costs.
In our corporate offices, we separate inorganic wastes with limited use for feminine sanitary wastes. In order to give them a proper waste management, FUNO hires a third specialized party.
With this we:
We collaborate with a specialized party in the collection of vegetable and animal fats; we have installed collectors in some of our food courts and tenant spaces, to gather all waste fat resulting from food production. This fat is collected and eventually transformed into bio-energetics or used in the chemical industry.
This initiative has contributed to:
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.
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:
FUNO has the following LEED certified or Pre-certified estates:
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.
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:
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.
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.
100% of our office and retail estates, 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
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:
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.
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.