Climate Change Data

Environmental Metrics

Social Achievements

• Implemented strict sanitary protocols across all worksites and sales areas to address the pandemic.
• Created anonymous reporting channels for employees and third parties to report ethical violations.

Governance Achievements

• Implemented measures for efficiency and a digital transformation process, including new internal systems for decision-making and digitization of processes.

Climate Goals & Targets

Environmental Challenges

• Delays in land registries impacting the recovery of mortgage loans.
• Increased construction costs due to maintaining strict sanitary protocols and scarcity of imported materials.
• Increased administrative and sales expenses due to sanitary protocols.
• Contraction in commercial activity due to economic conditions, higher mortgage rates, and reduced credit terms.
• Potential legal risks due to delays in projects from regulatory interpretations or administrative procedures.
• Potential legal costs from defending lawsuits due to pandemic-related delays or SERNAC procedures.
• Potential legal risks from needing to take legal action against land seizures.
• Risk of inflation impacting demand due to higher interest rates and credit restrictions.
• Risk of pandemic-related delays due to potential increases in employee infections.

Mitigation Strategies

• Continued implementation of safety measures focusing on personnel, operational continuity, commercial strategy, and financial health.
• Implemented measures of efficiency and a digital transformation process.
• Maintained stable long-term relationships with financial entities to monitor financial market trends and facilitate loan negotiations.
• Implemented permanent cash flow control with short and long-term projections.
• Implemented market and product diversification to stabilize cash flows.
• Seeking advice from legal specialists on regulatory changes.
• Developed tools for annual, monthly, and weekly cash flow control to anticipate financing needs.
• Structured commitments based on operation type (short-term for construction, medium/long-term for investments).
• Negotiated fixed interest rates for medium/long-term loans to mitigate interest rate risk.
• Secured supply contracts for construction materials to mitigate exchange rate risk.
• Maintained provisions for post-sale expenses, updated regularly.
• Implemented safety measures and insurance policies to mitigate construction risks.
• Constantly analyzed market conditions to balance income and results across quarters.
• Monitored compliance with business plan timelines to avoid project development fluctuations.
• Maintained a specialized post-sale department to address customer issues.
• Implemented a crime prevention model and anonymous reporting channels.
• Maintained a healthy client portfolio with pre-approved credits and flexible payment options.
• Maintained insurance policies covering damage from strikes, looting, or civil unrest.
• Closely monitored the evolution of conditions and requirements imposed by authorities.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Changes in regulations related to environmental assessment, real estate leasing, tax benefits for construction, changes in the VAT regime, subsidies for real estate supply and demand, modifications to leasing taxation, and potential elimination or reduction of benefits from DFL No. 2 of 1959.
• Risk of legal claims or lawsuits from clients related to after-sales service.
• Risk of legal claims regarding land maintenance.
• Changes in regulations affecting real estate development and macro-lots, such as modifications to the Real Estate Co-ownership Law.
• Construction risks associated with workplace accidents, occupational illnesses, and community relations.
• Risk of increases in construction costs and timelines.
• Risk of fluctuating results due to the cyclical nature of the real estate business.
• Risk of high inflation affecting the purchasing power of homes and the Group's results.
• Risk of restrictions in the mortgage financing market affecting housing demand.

Mitigation Strategies

• Strong relationships with financial institutions for loan negotiations.
• Strict cash flow control.
• Market and product diversification.
• Strengthened after-sales service and technical supervision of works.
• Monitoring of suppliers and subcontractors.
• Enhanced land surveillance and legal advice.
• Monitoring of legislation through industry associations and legal advisors.
• Insurance policies for civil liability and construction all-risk.
• Constant market analysis and income balancing.
• Detailed analysis of the residential and macro-lot real estate market.
• Healthy client portfolio with pre-approved credits.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: NIIF

Certifications: Null

Third-party Assurance: Deloitte Auditores y Consultores Limitada

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed