Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental

Environmental Achievements

• Implementation of good energy savings practices (98% LED lighting)
• Installation of automated systems for turning equipment on and off
• Beach clean-up initiatives at multiple hotels
• Sea turtle protection program
• Reforestation of 1.5 hectares in La Huasteca
• Implementation of a data metering and storage system (Hunt System) to evaluate energy consumption
• Initiated a process to analyze and compare sources of renewable energy supply

Social Achievements

• Obtained the Socially Responsible Company Distinction granted by CEMEFI for the fourth year
• Participation in PNUD pilot program to calculate sustainability to comply with Sustainable Development Objectives
• Implementation of various initiatives to improve employee well-being and reduce turnover (scholarships, incentives, improved benefits)
• Promotion of gender equity and inclusion (sign language workshops, gender equity training)
• Various community investment initiatives (YCI program, food donations, linen donations, support for Casa Hogar, blood donations, support for elderly, animal shelter donation, support for indigenous communities, collection of games)

Governance Achievements

• Implementation of relevant Anti-Corruption measures
• Development of an Anti-Corruption Manual
• Anti-corruption training provided to 100% of Corporate Governance area members
• Integrity policy presented and approved by the Board of Directors and the Audit Committee
• Improved regulatory compliance in money-laundering prevention

Climate Goals & Targets

Environmental Challenges

• Lower profitability at Reflect Krystal Grand properties due to external factors (sargassum seaweed, safety perceptions, economic deceleration)
• High turnover rate in the hotel sector (especially at beach destinations)
• Individual and autonomous waste management processes at each hotel
• Lack of standardized processes for waste management

Mitigation Strategies

• Creation of competitive salaries and working conditions to reduce employee turnover
• Development of a corporate-level procedure to standardize waste management processes
• Implementation of the 100-point savings program to improve resource efficiency
• Ongoing communication program between work teams and maintenance providers to optimize equipment operation

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Hiring providers who comply with established criteria
• Purchasing products according to responsible criteria
• Improved acquisition protocols and implementation of a Purchasing Committee at each hotel

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Socially Responsible Company Distinction (CEMEFI)
• High Technology recognition (Hilton Puerto Vallarta, Krystal Ixtapa, Krystal Grand Cancún, Krystal Puerto Vallarta, Hilton Guadalajara)
• RCI Gold Crown (Krystal Puerto Vallarta, Krystal Cancún)
• AAA 3 Diamond Award and AAA 4 Diamond Award (Krystal Puerto Vallarta, Hilton Puerto Vallarta, Krystal Grand Punta Cancún, Hilton Guadalajara)

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental

Environmental Achievements

• 17 hotels implemented waste-monitoring and reduction processes
• 13,848 turtles released in Cancún through the sea turtle protection program

Social Achievements

• Creation of the Stay Safe & Clean program to ensure safe reopening
• 100% of complaints resolved through anonymous tip line
• More than 200 hours of anti-corruption training provided
• More than 30 hours of transferable skills training per person
• Received the SRC (Socially Responsible Company) Award for the fifth consecutive year
• Reduced existing salary discrepancies

Governance Achievements

• All board members, directors, and employees know the Company’s Code of Ethics
• Improved and updated Code of Ethics

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations, leading to temporary closures and staff reductions
• Supply chain disruptions due to the pandemic
• Delays in implementing renewable energy projects due to legal and policy changes

Mitigation Strategies

• Implementation of Stay Safe & Clean program
• Creation of financing schemes with suppliers
• Increased purchasing from local providers to mitigate supply chain issues
• Continued focus on energy-saving initiatives despite pandemic

Supply Chain Management

Responsible Procurement

• Code of Ethics letter signed by 80% of strategic providers (target)
• Sustainability questionnaire answered by 25% of strategic providers (target)
• Ethical and social responsibility training for 80% of local strategic providers (target)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Essential option), UN Global Compact

Awards & Recognition

• Socially Responsible Company Award (5 consecutive years)

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Social Responsibility
• Ethics and Governance
• Community Engagement
• Biodiversity

Environmental Achievements

• Protected 7,426 sea turtle eggs with an 87% hatch rate.
• Organized beach clean-up activities collecting over 45 kg of waste.

Social Achievements

• Launched Talent Development 2023 program with 60 participants.
• Achieved 78.02% employee approval rating in working environment survey.
• Ranked 11th in Super Empresas for Women Expansión 2023.
• Ranked among the top three companies in the Hotel and Tourism sector in Súper Empresas 2023.

Governance Achievements

• Strengthened anticorruption protocols and initiatives.
• Achieved 100% compliance with official provisions of the Federal Law for the Prevention and Identification of Transactions using Illegal Funds (LFPIORPI).
• Implemented Front Desk standardization training (2,048 hours).

Climate Goals & Targets

Environmental Challenges

• Hurricane Otis impacted Krystal Beach Acapulco, affecting quarterly results.
• Decreased tourism in Mexico due to falls in airport traffic.

Mitigation Strategies

• Provided additional support to employees affected by Hurricane Otis (bonuses, temporary employment, etc.).
• Continued to pay employees full salaries and benefits at Krystal Beach Acapulco during the recovery phase.
• Developed a personnel recruitment platform (“GHSF Jobs”) to address talent demands.

Supply Chain Management

Responsible Procurement

• Ethical guidelines and criteria; Code of Ethics for Suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (e.g., Hurricane Otis)

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals, UN Global Compact

Certifications: AAA Diamond Award (Krystal Grand Puerto Vallarta, Krystal Grand Nuevo Vallarta, Krystal Vallarta), Distintivo H (Krystal Grand Puerto Vallarta, Krystal Grand Nuevo Vallarta, Krystal Grand Suites Insurgentes)

Awards & Recognition

• Súper Empresas 2023 (Top 20, 4th in Hotel and Tourism sector)
• Socially Responsible Company Distinction (CEMEFI, 9th consecutive year)