Enviromental
FibraShop
Climate Change
Climate change is a global challenge. The amount of carbon emit- ted today has increased the pace of climate change to dangerous levels, resulting in an increase in the frequency and intensity of weather-related events around the world. Leadership and action to slow emissions are essential. At present, market expectations and government policies are shifting to address this challenge.
At FibraShop, we are developing a climate change strategy that focuses on the four recommendations of the Task Force on Cli- mate-related Financial Disclosures (TCFD). In 2020, we conduct- ed a preliminary analysis of physical climate change risks, aligned with the preparation of our 2020 Sustainability Report, in three key locations: Plaza Kukulcán, Puerta la Victoria and Puerto Paraíso. Our analysis centered on our projected exposure to climate risks by 2030, 2050 and 2100 for each site.
The 2021 study quantifies the change in exposure to physical cli- mate risks in 19 FibraShop properties and describes the potential impacts on a regional scale.
Physical climate risks, like shrinking rainfall, heat waves, flooding, tropical storms and rising sea levels, directly affect infrastructure, health, agriculture and productivity. We use prospective tools like scenario analysis and climate models to adapt to climate change be- fore a crisis occurs, in other words, to develop our climate resilience.
Climate Change Risk Analysis
Our study involved analyzing 9 climate metrics, both acute and chronic, incorporating two scenarios for representative concentra- tion pathways (RCP) as defined by the Intergovernmental Panel on Climate Change (IPCC) toward the years 2030, 2050 and 2070.
Metrics and Scope
The following are the physical risks analyzed and the available climate scenarios and horizons. Physical climate hazards were selected based on the availability of robust and exhaustive data.

Future Changes In 2030 Under A High-emission Scenario


Hot Days

Water Stress


Extreme Wildfire Days Under a High-emissions Scenario

Duration of Wildfire Season

Intensity and Frequency of Extreme Rainfall


Hurricane Frequency

Storm Surges
SOUTHERN MEXICO (GALERÍAS TAPACHULA) IS AT GREATEST RISK OF INCREASED FREQUENCY OF STORM SURGES, FROM 1 EVERY 100 YEARS AT PRESENT TO A PROJECTED FREQUENCY OF ONCE A YEAR BY 2050.

Task Force On Climate-related Financial Disclosures (TCFD)
We continued our work on incorporating the four recommendations of the TCFD into our day-to-day opera- tions. In 2021, we had an external diagnosis conducted to determine FibraShop’s current status and pinpoint improvement actions. Based on our ESG strategy and action plan, we had taken on the task of reporting on our progress toward each of the recommendations, starting with this report.

1. Governance
Goal: To report on the organization’s responsible governance of climate-related risk and opportunities.
a) Describe the board’s oversight of climate-related risks and opportunities
b) Describe management’s role in assessing and managing climate-related risks and opportunities
The Technical committee manages climate-related risks and opportunities indirectly, based on the impact of natural disas– ters on our properties. With this in mind, as part of our risk and opportunities strategy, we created an ESG committee in 2021, responsible for approving and overseeing ESG strategy and risk management, for assigning ESG responsibilities and maintaining active communication with our stakeholders. Our commitment is to train the ESG and key members of the or- ganizations in issues relating to climate change.
Improvement actions for 2022-2023:
- Assign responsibilities to Technical Committee members for overseeing climate risks and opportunities.
Active involvement of the ESG committee in managing, monitoring and mitigating climate risks.
Include climate change risks in the Board’s strategy review.
Document the process of reporting to management on climate risks and opportunities.
2. Strategy
Goal: Report on the current and potential impact of climate-re- lated risks and opportunities on the organization’s businesses, strategy and financial planning.
a) Describe the climate-related risks and opportunities
b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning
c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios
We have identified the risks related to climate change for each of our properties under the TCFD framework. We have infor– mation on the impact on business including all of our proper– ties, but do not yet have information on risks and opportuni– ties in our supply chain. Currently, no opportunities have been identified nor have any climate-related financial implications been quantified. We have planned this for our next phase of evaluation of climate change-related risks and opportunities. We know that we must monitor risks through specific metrics and use these to set targets and goals for managing climate risks. In 2021 we approved a new Environmental Policy which marks the start of a strategy in this area, focused on our finan– cial results.
Improvement actions for 2022-2023:
- Identify and quantify potential economic impacts according to TCFD categories.
- Set specific targets and goals for climate change aligned with FibraShop’s strategy.
- Describe climate-related risks and opportunities and their impact on the business, the supply chain, financial planning, etc.
3. Risk Management
Goal: Disclose how the organization identifies, assesses and manages climate-related risks.
a) Describe the organization’s processes for identifying and assessing climate-related risks
b) Describe how these risks are integrated into the organization’s overall risk management
Our study for identifying climate risks involved analyzing nine climate metrics, both acute and chronic, based on two repre- sentative GHG concentration pathways for all of our proper– ties. For each of these risks we broke down the physical risks analyzed as well as the available climate risks and horizons. As a second step in our study, we will be identifying transition risks and opportunities based on climate scenarios and their impact on our financial results. We are currently working on ensuring our mitigation and monitoring results are appropriate– ly managed to meet TFCD requirements as well as of those of international rating agencies.
Improvement actions for 2022-2023:
- Incorporate climate risks into our Policy on Management of Non-Financial Risks.
Approve and apply policies on the environment and climate change.
Implement manuals, procedures and mechanisms for managing and reporting risks, involving senior management.
4. Metrics and targets
Goal: Disclose the metrics used by the organization to assess climate- related risks and opportunities.
a) Disclose the metrics used by the organization to assess climate-related risks and opportunities
b) Disclose Scope 1, Scope 2, and Scope 3 emissions
c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets
Beginning with our 2020 Sustainability Report, we published our environmental KPIs, which we can use to analyze trends such as emissions (scope 1 and 2). We are also reporting oth– er KPIs consistent with industry standards and international methodologies (water, emissions, energy, etc.) through ratios used by the real-estate industry. Our next goal is to link current KPIs with the processes for identifying climate-related risks and opportunities.
Improvement actions for 2022-2023:
- Disclose climate risks for FibraShop’s future performance and positioning.
- Develop key metrics such as those of the SBTi, like investment in climate change adaptation/mitigation and others.
- Report environmental KPIs in the context of a climate strategy.
- Set climate-related targets and goals for the medium and long term.