Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Energy Efficiency and Renewable Energy
• Water Care and Management
• Innovation and Investment in Local Communities
• Labor Practices
• Commitment and Transparency with Stakeholders

Environmental Achievements

• Replacement of traditional luminaires by LEDs in 53 hotels
• Installation of motion sensors
• Automation of the machine room
• Investment in preventive maintenance of equipment
• Change from central air conditioning equipment to more efficient models
• Installation of air controls
• Low-E glass installation
• Changes in the supply of LP gas to natural gas in 10 hotels
• Water heating pilot from the energy generated by solar panels
• Water Heating pilot system of hydrogen

Social Achievements

• Remodelling of Middle School 122
• Donation of bedding to various civil society associations
• Design of a corporate volunteer program
• 7 new collaborators integrated
• 22% of the staff received training, with an average of 213 hours per trained employee

Governance Achievements

• Structured corporate governance seeking ethical operation and transparency
• Code of Ethics applies to all staff
• Complaint line available for resolving doubts and reporting breaches
• Supervision of Code of Ethics by the Technical Committee, Corporate Practices Committee and Legal, Administrative and Comptroller Managements

Climate Goals & Targets

Environmental Challenges

• Slow economic growth and tourism decrease
• Increased costs and expenses
• Strong competition from other owners and operators
• Staff shortages in some destinations
• Security conditions
• Extreme climatic phenomena
• Transition to low carbon economy

Mitigation Strategies

• Prioritizing responsible investments
• Improving infrastructure regarding energy efficiency
• Searching lower impact energy sources
• Working on further projects for water saving and reducing the use of PET containers
• Distributing hotels throughout Mexico to mitigate impact of local risks
• Working on attracting and retaining talent
• Incorporating technologically advanced solutions and investing in equipment

Supply Chain Management

Responsible Procurement

• Selection and hiring of suppliers managed from FIHO
• Focus on development of innovative products and services looking at guest satisfaction
• Compliance with current regulations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climatic phenomena (hurricanes, storms, droughts), Sargassum

Transition Risks

• Transition to low carbon economy

Reporting Standards

Frameworks Used: GRI Standards: essential option

UN Sustainable Development Goals

• SDG 1
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13

FibraHotel aims its actions to the contribution of economic, social and environmental development, including the priorities established by the United Nations in the 2030 Agenda and integrated into the Sustainable Development Goals (SDGs).

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Corporate ethics and integrity
• Business continuity and risk management
• Energy efficiency and renewable energies
• Financial implications and resilience to climate change
• Waste management
• Maintenance and investment in property and equipment
• Work related practices
• Diversity and equal opportunities
• Innovation and investment in local communities

Environmental Achievements

• Reduced energy consumption intensity by 47% (from 199 kWh/m² in 2019 to 106 kWh/m² in 2020)
• Reduced GHG emissions by 38% (from 46,084 tCO2e in 2019 to 28,703 tCO2e in 2020)
• 71 hotels have Green Key certification
• Several hotels have EDGE, LEED, Blue Flag, and Hydro Sustainable Hotel certifications

Social Achievements

• Employee turnover rate of 3.8%
• 19% of workforce received training (565 hours per employee)
• $1.2 million pesos invested in training programs
• No fatalities, accidents, or illnesses related to company activities
• Implemented COVID-19 safety measures, including home office and flexible schedules
• 100% employee participation in work environment survey, with 96% showing high commitment
• Implemented digital check-in and Guest Room Entertainment System in most hotels

Governance Achievements

• Added a woman to the Technical Committee in 2020
• Established an Anti-Corruption Policy
• No cases of complaints related to FibraHotel’s operations or non-compliance through internal auditing processes

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting hotel operations and revenues
• Climate-related events affecting tourist arrivals and hotel occupancy
• Increased use of technology potentially affecting business travel demand
• Strong competition from other hotel owners and operators
• Team availability and training challenges
• Safety conditions affecting guest arrivals

Mitigation Strategies

• Implemented cost reduction measures, including reducing non-essential expenses and suspending distributions
• Negotiated with lenders to obtain waivers and additional credit lines
• Implemented changes in food and beverage services to improve efficiency
• Implemented strict hygiene and safety protocols
• Developed alternative sourcing strategies
• Accelerated incorporation of technology to improve guest experience
• Strengthened relationships with operators

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Local sourcing initiatives

Climate-Related Risks & Opportunities

Physical Risks

• More intense meteorological phenomena

Transition Risks

• Replacement of services with lower carbon emissions

Opportunities

• More efficient buildings
• Use of low-carbon energy sources
• Development and/or expansion of products and services with low levels of emissions

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: Green Key, EDGE, LEED, Blue Flag, Hydro Sustainable Hotels

Third-party Assurance: Redes Sociales en Línea Timberlan S.A. de C.V.

UN Sustainable Development Goals

• 5
• 7
• 8
• 9
• 11
• 12

FibraHotel's contributions to SDGs through its business model and sustainability strategy

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental
• Social
• Economic Impact

Environmental Achievements

• Reduced water consumption intensity by 13% to 0.41 m³/room night.
• Achieved 87% of portfolio with water-efficient technologies.
• Converted 58% of hotels to natural gas.
• Installed two solar heating systems for swimming pools.

Social Achievements

• 100% of employees completed ethics and compliance training.
• Achieved 82% commitment and loyalty/pride scores in employee work climate survey.
• Average annual training hours per employee reached 7.
• Hotel staff reached 4,434 employees, of which 52% are women.

Governance Achievements

• 100% of directors have variable income linked to sustainability goals.
• Two women were included as independent members of the Technical Committee, achieving 27% gender diversity.
• Updated Materiality Analysis in accordance with international trends.
• Recognized by the Science Based Target Initiative as a committed company.

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 and 2 emissions compared to 2020 due to the COVID-19 pandemic.
• CSA Score (S&P) target not met due to more rigid international questionnaire criteria.
• Did not meet target for satisfied guests.
• Increased employee turnover rate to 21%.

Mitigation Strategies

• Implemented technologies to save energy consumption and transition to renewable energy.
• Developed alternative sourcing strategies.
• Working with operators to implement solutions to achieve guest satisfaction targets.
• Focusing on attracting and retaining talent.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Ethics extended to suppliers.
• Focus on local sourcing and SMEs.

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Earthquakes
• Slope susceptibility
• Thunderstorms
• Drought
• Hailstorms
• Hurricanes
• Cyclones
• Heat waves

Transition Risks

• Market changes in consumer behavior
• Increased investor demands
• National/international policies
• Reputational impact
• Regulation
• Technological changes

Opportunities

• Energy efficiency measures
• Renewable energy initiatives
• Water conservation
• Waste management improvements

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, AMEFIBRA

Certifications: Green Key, EDGE, Blue Flag, PROFEPA, Hydro Sustainable Hotels, LEED Gold (offices)

Third-party Assurance: Redes Sociales en Línea Timberlan S.A. de C.V.

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 16
• Goal 17

FibraHotel's initiatives contribute to these goals through various programs and policies related to education, gender equality, water management, energy efficiency, employment, infrastructure, responsible tourism, and ethical conduct.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Institutionalization
• Sustainable Infrastructure
• Human Factor
• Shared Commitment

Environmental Achievements

• Reduced GHG emissions intensity by 9% (from 64.14 kgCO2e/m2 to 60.09 kgCO2e/m2)
• Reduced energy consumption intensity by 4% (kWh/room occupied)
• 86% of the portfolio (72 properties) obtained some type of certification related to sustainable buildings
• Two LEED Gold certifications (Live Aqua San Miguel de Allende and corporate offices) and two EDGE certifications (Courtyard Toreo and AC Hotel Querétaro) obtained.

Social Achievements

• Launched employee well-being program, resulting in 86% loyalty/pride rating and 85% leadership rating in employee climate survey
• 53% of workforce are women (+6% vs. 2022)
• Total of 2,609 volunteer hours contributed by 925 volunteers across Marriott hotels
• MXN$2.3 million contributed to the Posadas Foundation for health, education, and disaster relief

Governance Achievements

• 100% of directors have variable income based on the achievement of sustainability goals
• CSA Score (S&P) increased to 50 (from 49 in 2022)
• Developed Sustainability Policy, Human Rights Policy, Stakeholder Engagement Policy, Environmental and Climate Change Policy, and Anti-Corruption Policy

Climate Goals & Targets

Environmental Challenges

• Compression in operating margins due to decreased revenue from Fiesta Americana Condesa Cancún, operational deleveraging, and increased operating costs (especially labor)
• Climate-related events such as hurricanes (Otis) impacting hotel operations and causing damage
• Transition risks related to increased investor demands for ESG transparency, changes in consumer behavior towards sustainability, and potential regulatory changes

Mitigation Strategies

• Refinancing at better rates and optimized amortization schedule
• Implementing prevention and mitigation measures for physical risks (e.g., lightning rods, drainage systems, water-saving technologies)
• Investing in technologies to reduce emissions and improve energy efficiency
• Developing a comprehensive climate change strategy and participating in initiatives like GRESB, CDP, and CSA questionnaires

Supply Chain Management

Supplier Audits: 54% of suppliers signed the Code of Ethics (representing 80% of expenditure)

Responsible Procurement

• Code of Ethics
• Local sourcing initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Thunderstorms
• Droughts
• Heat waves
• Hurricanes
• Earthquakes
• Slope susceptibility

Transition Risks

• Increased investor demands for ESG transparency
• Changes in consumer behavior towards sustainability
• National or international policies to mitigate greenhouse gas emissions
• Potential reputational impact due to inaction on climate change
• Increased cost and/or price volatility of inputs
• Entry of new competitors promoting sustainability criteria
• Increased reporting and transparency obligations
• Establishment of limits on operations based on environmental criteria
• Increased exposure to legal proceedings and fines
• Replacement of products and services with lower emission options
• Capital investments in technology development

Opportunities

• Short-distance tourism
• Internal carbon pricing and science-based targets
• Water efficiency projects
• Development of low-emission goods and services
• Renewable energy investments
• More efficient buildings
• Reduction of water use and consumption

Reporting Standards

Frameworks Used: GRI Standards (GRI 1: Fundamentals 2021, GRI 2: General Disclosures 2021, GRI 3: Material Aspects 2021), SASB, TCFD, AMEFIBRA ESG Indicators Manual

Certifications: LEED Gold, EDGE, Green Key, Blue Flag, Tourist Environmental Quality, Hydro-sustainable hotel

Third-party Assurance: Redes Sociales en Línea Timberlan (limited assurance)

UN Sustainable Development Goals

• 4
• 5
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 16
• 17

See Appendix II for details on how initiatives contribute to SDGs

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed