Financial Impact of Climate Change
Financial Impact of Identified Physical Risks:
Based on the assessment of the financial impact of physical risks updated in 2024, priority physical risks were analyzed and the main impact drivers that could affect the properties were identified, as well as the possible consequences arising from these risks.
This analysis was subsequently updated in 2024 to incorporate new properties that joined our portfolio during that year, including Sentura Zamora and Galerías San Juan del Río.
Based on this information, estimates and projections were made regarding potential expected and unexpected losses for each property. This exercise made it possible to identify the assets with the greatest exposure to physical risks and, accordingly, implement mitigation measures, such as taking out insurance policies designed to cover these potential impacts.
Key Areas Where Physical Risks Are Being Considered:
Financial Planning:
When evaluating new investments, renovations, or developments, we integrate sustainability and climate resilience criteria, including exposure to water stress, energy efficiency, and the availability of sustainable mobility infrastructure. This influences CAPEX decisions and project prioritization. In addition, we have begun incorporating assumptions related to future regulations (such as carbon pricing or efficiency standards) into the assessment of financial risks.
Financial Performance:
Although to date we have not faced material impacts from extreme climate events, we recognize that phenomena such as heat waves, floods, or water scarcity could affect the operation of our shopping centers, either through disruptions, increased operating costs (energy, water), or reduced foot traffic. For this reason, we are evaluating tools to measure and anticipate these risks in our financial analyses and projections.
Cash Flows:
In the short term, cash flows have not been directly affected by climate risks. However, we understand that in the future there could be impacts such as higher operating expenses, investments in adaptation, or changes in demand for certain properties. This reinforces the need to continue implementing efficiency projects and environmental certifications that mitigate these effects and strengthen resilience.