We have defined climate change as one of our priorities, and built a roadmap to manage and reduce our impacts, with both mitigation and adaptation measures. We are also considering the role of other players in our value chain, for example tenants and visitors, in order to work together and achieve an even bigger impact.
In addition to this roadmap, we measure and publish our carbon footprint annually, breaking down our emissions according to scopes 1 and 2 of the Greenhouse Gas Protocol. Starting in 2017, this information has been available in our Integrated Report, while for the years before it can be found in our Sustainability Reports.
We also publish our direct emissions in detail (scope 1).
As part of our adaptation measures we have developed and published internal guidance which covers water, waste and energy efficiency for both current and future projects; for instance our expansion project for Parque Arauco Kennedy includes an improved building envelope to reduce HVAC energy consumption, a building management system to minimize operational inefficiency and water efficient appliances.
Climate risk management and scenario analysis
In 2019 we started a pilot program, in order to identify and quantify both transition and physical risks in 2 of our Chilean assets. The purpose of this project was to serve as a starting point to integrate climate risks into our corporate risk management process, which we plan to do in the near future.
We used several scenarios based on the IPCC 1.5ºC Report, the Chilean Long Term Energy Plan, and more aggressive mitigation scenarios (below 1.5), in order to quantify the impact the identified risks posed.
We plan to extend this process to the rest of our portfolio in order to ensure long term value creation and better understand the impacts climate change will have on our organization.
Since 2016 we have been working on a master plan to identify and mitigate risk related to the safety of our visitors, contractors and employees.
Part of our efforts have been focused on training: in 2019, 290 employees (2,688 hours of training) and a large number of contractors (over 7,673 hours) participated in these.
During 2019 we did exhaustive audits to ensure our critical systems and equipment were working correctly in 8 assets, which combined represent 45% of our GLA. In 2020 we plan to audit a large part of the remaining assets.
Each asset receives an audit grade, from A to F, which combined with detailed roadmaps will allow them to manage and minimize risk and increase safety.
We care about the environment since the construction of our assets. Our effort to build sustainable assets is reflected in the LEED (Leadership in Energy and Environmental Design) certifications that we have obtained in two of our commercial centers, positioning ourselves as pioneers in the industry of Chile and Peru in obtaining this type of certification, internationally recognized by the stringency of their environmental standards
InOutlet Premium Lurin, Perú:
In early 2017, InOutlet Premium Lurín was officially awarded the LEED Silver certification, which qualifies it as a sustainable building by complying with regulations that guarantee that its operation and structure is environmentally friendly.
This certification positioned us as the first sustainable commercial center of Peru.
Arauco Quilicura, Chile:
A fines del año 2014 conseguimos la certificación LEED Silver en Arauco Quilicura, situándonos como la primera compañía en certificar el diseño y construcción de un centro comercial con sello LEED en Chile.
Environmental Practices during Construction
The engineering and projects area teams are responsible for implementing new developments and determining the type of initiatives that will frame the design and construction of each shopping center. Some of the areas considered in the development of our shopping centers include:
- Placing the Shopping Center in Areas with High Connectivity and Use of Public Transportation
Also includes spaces to encourage the use of bicycles or low-emission cars.
- Unique Design
Adapted to the characteristics of its surroundings and future development conditions. We consider, for example, specific aspects like landscaping or pedestrian routes used by the neighboring communities before the project.
- Water and Energy Efficiency Alternatives
We assess efficiency alternatives based on the type and size of each project and design shopping centers so that their operations optimize natural resources and reduce impact.
- . Identification and Assessment of Project Impacts
Bearing in mind the type and format of the shopping center, we have added consulting services and external studies to ensure compliance with local regulations on specific issues.
- Construction Practices and Definitions
One example is the use of high durability, high quality materials; designing processes for recycling or supplier use of local inputs.
Our challenge to design and build sustainable projects is complemented with proper management of the natural resources required to operate the shopping centers after opening.
In 2016, we partnered with POCH, a consulting firm specializing in environmental management, with offices in Chile, Peru and Colombia, to survey environmental indicators associated with waste, energy and water consumption, and greenhouse gas (GHG) emissions.
The objective was to consolidate and centralize information in order to establish a baseline using environmental indicators. Furthermore, we will be able to establish a metric and priority-based, organization-wide management model from a comprehensive, long-term perspective.
In late 2016, we began gathering information that could provide additional elements with which to understand and evaluate the potential effects of climate change on our shopping centers.
We hired expert consultants to study some of our assets currently in operation as well as projects being built in certain zones in Chile, Peru and Colombia. Background information and projections were reviewed on a case-by-case basis.
We measured the carbon footprint (scope 1 and 2) of all the shopping centers.
Energy Management and Consumption
We have made a commitment to pursuing efficient energy consumption in our facilities and buildings. Our greatest electricity consumption is tied to lighting and air conditioning systems at our shopping centers.
We also supply energy to most of our tenants. Since it is billed on a monthly basis, we can distinguish between shopping center (common areas) and tenant consumption in order to identify the greatest consumers and implement specific optimization initiatives.
Water Management and Consumption
Knowing that water is a scarce resource is a tremendous motivator to use it responsibly and efficiently.
The main uses of water in our shopping centers are:
• Public restrooms
• HVAC systems
• Trash rooms
The water used in our shopping centers is mostly from the potable water main; however, we have gradually begun developing an initiative to recover and reuse naturally available water. The projects involve rainwater collection in the cities of Pereira and Bogotá, Colombia.
Managing Our Waste
Waste management has gradually taken shape at our shopping centers, as we strive to identify the type and quantity of waste we produce.
We have challenged ourselves to raise employee awareness on this issue so that, in the short term, a disposal and separation process will allow our waste to be recycled.
Through this type of initiative, we aim to contribute to our stakeholders and protect the environment.
The cardboard used by tenants is recycled at most shopping centers. In 2016, 1,288 tons—approximately 10% of total waste generated in the three countries—were recycled.
Our suppliers are a key piece in the relationship we build every day with visitors and tentants. It is suppliers that often act as Parque Arauco’s public face, and thus, are a very important ally in the development and operation of our business.
COMPOSITION OF OUR VALUE CHAIN
Our supply chain consists of 2,820 suppliers, in Chile, Peru, and Colombia, which corresponds to a 19% reduction compared to the previous year, mostly due to supply chain consolidation processes.
CONSIDERATIONS PRESENT FOR THE EVALUATION, SELECTION AND MANAGEMENT OF SUPPLIERS DIRECTLY INVOLVED WITH OUR OPERATION
A decisive aspect for the managemente and development of our operation, both in the short and long term, corresponds to the appropriate selection of suppliers. For that, we are working on defining and implementing criteria that are applicable from the beginning of the suppliers selection proecess, until the stages after their services are rendered.
Our general guidelines for the selection of critical suppliers are as follows:
Suppliers with high standards in the following aspects will be prioritized:
• Quality and Risk Management
• Ethics and Transparency
• Environmental topics
• Social themes
It is a requirement that:
• They comply with the current legal framework in each of the countries we operate in
It is expected that suppliers will put an emphasis on:
• Excelence in Operational Continuity
MEASURE WHAT MATTERS
During 2017 we advanced implementing tools that would allow us to strengthen the monitoring of our suppliers’ practices, with a focus on sustainability. Through this, our suppliers have also been able to identify gaps and work on their weaknesses.
To accomplish this, we signed an ageement with Sistema B, B-Corp’s Latinamerican branch, to evaluate our suppliers through the Measure What Matters program. Initially we selected 23 suppliers from Chile and Colombia in 2017, and included 34 more from Chile, Peru, and Colombia in 2018.
In both years, the program’s launch included sensitization workshops, to highlight the importance of measuring and managing sustainability in concrete ways. We also explained our sustainability strategy, to better align our suppliers Parque Arauco’s objectives.
Around 50% of the suppliers invited in 2017 participated in the program, while in 2018 we reached a participation rate of almost 70%. 70%.
WHAT IS THE MEASURE WHAT MATTERS PROGRAM?
It is an initiative developed by B Lab, based on international management standards (ISO 14000, ISO 26000, Fair Trade, FSC), using a virtual evaluation so companies can self-assess their practices. Over 60,000 companies have participated worldwide so far.