Mitigation of our impact on the environment

We promote sustainable real estate development with the construction of stores and buildings with high infrastructure and operation standards, which demonstrate our commitment to and progress regarding climate change, create efficiencies and reduce our impact on the environment.

• During 2020, the Mallplaza Buenavista shopping center in Barranquilla completed its certification process, with which we reached a total of 5 LEED-certified shopping centers in the region, while Mallplaza Comas in Peru, Mallplaza Arica and Mallplaza Los Dominicos are still in the certification process. In addition, the environmental management audits ISO 14.001 and ISO 50.001 for Energy Efficiency were carried out, achieving the recertification of all Mallplaza shopping centers in Chile.
• During 2020, our Falabella Retail Arkadia and Buenavista stores in Colombia, as well as the Arica, Viña del Mar, Independencia, Los Angeles and Valdivia stores were LEED Silver certified. This totals 34 stores with this distinction, which account for 31% of the total department stores in the region.
• Falabella Retail is a member of the executive committee of the Chile Green Building Council, a non-profit organization that aims to promote and drive construction and sustainable development via technological innovation, certification and the promotion of good practices in the efficient use of energy, water and raw materials used for the construction of the assets.
• During 2020, the executive committee promoted instances of discussion and technical round tables on these issues, with a strategic focus on promoting the certification of buildings, articulating public and private efforts, generating innovative projects and supporting the professional training of the various actors that make up the value chain in sustainable construction.
• In Sodimac Chile, during 2020 we continued our plan to replace light fixtures to LED lighting, adding three new stores with this technology. This leaves us with 33 stores at the end of the period with this attribute of energy efficiency, which achieves electricity consumption savings of near 15%. Additionally, with the support of our corporate infrastructure subsidiary, the plan for photovoltaic panels on the roofs of the Sodimac facilities continued to be developed. In 2020, 20 stores were added to this plan, totaling 52 generation plants. This made it possible to supply over 11 million kWh, contributing with over 15% of the energy matrix of Homecenter stores and Sodimac distribution centers in Chile.

Our work in Energy Efficiency essentially refers to the rational use of electrical energy used in stores, distribution centers and shopping centers, without generating an impact on operational processes or store comfort levels towards customers and collaborators. Since 2017, at Falabella we have been increasing the supply of Non-Conventional Renewable Electric Energy (NCRE) for the Falabella Retail, Sodimac, Tottus and Falabella Inmobiliario facilities by an alliance with Acciona Energía in Chile. During 2020, we increased the number of stores supplied by this corporate contract to improve our clean energy matrix.

In Chile:

• During 2020, we managed to reach 100 facilities44 with NCRE supply, by including the Tottus supermarket in Mallplaza La Serena and the Homecenter Quilín store to the Acciona agreement.
• In our retail formats, we reached 54% of the power supply coming from renewable sources.
• In our real estate businesses, the power supply coming from NCRE accounted for 94% of total power consumption.

To manage our generation and disposal of waste we seek strategic partnerships with public and private entities that allow us to increase valuation and reduce generation in line with the international objectives. That is why in Chile we have adhered to various Clean Production Agreements (APL), consisting of the deployment of good practices aimed at reducing the solid waste volumes disposed of at sanitary landfills, by introducing circular economy practices.

• During 2020, we sent more than 38 thousand tons of waste to recycling processes, which accounts for 39% of the total non-hazardous waste generated by our operation in the region. Recycled waste includes a variety of materials, such as paper, cardboard, wood, plastic, glass and textiles, which is possible thanks to our constant search for alliances to recover the waste we generate.
• In total, non-hazardous waste recovered reached more than 46 thousand tons, which accounts for 47% of the total waste generated at the regional level, sustaining a 16% increase in the last 3 years.
• In our operation, the tons of waste managed are determined using various operational practices, including traceability certificates issued by waste managers, scales in our own equipment and facilities, and third-party shipping documents. In Chile, these figures are periodically reported to the relevant authority via the National Waste Statement System and the Hazardous Waste Statement and Monitoring System.

We are making progress in measuring, reducing and mitigating Green - house Gas (GHG) emissions and promoting the rational and efficient use of energy throughout the value chain.

Commitment to expanding the measurement of the Carbon Footprint

Our most urgent action is related to having a comprehensive and standardized baseline throughout our value chain in the region, with uniform standards and calculation methodologies. The above, in order to understand where the greatest impacts are and guide the reduction of our GHG emissions.

Carbon Footprint measurement under scopes 1, 2 and 3, for our operations in Chile and Carbon Footprint measurement under scopes 1 and 2 for our operations in the region

In Chile:

• 188 stores, 100% coverage
• 93 bank branches, 100% coverage
• 26 shopping centers, 100% coverage
• 6 distribution centers, 100% coverage