sustainability report · sustainability report 2015 / 8 we have made progress toward making parque...

Sustainability Report

Parque Arauco 2015

parquearaucoFOR EVERYONE

Sustainability ReportPerformance 2015

8 22 28 43A Message from the Executive Vice President of Parque AraucoJuan Antonio Álvarez

Introduction

Chapter 1

THE VALUE OF WHAT WE ARE

Chapter 2

BUILDING SUSTAINABLE RELATIONSHIPS

Chapter 3

OUR CORPORATEGOVERNANCE MODEL

Chapter 4

OUR CUSTOMERS AT THE HEART OF WHAT WE DO

CONTENTS

7666 90 106 122Chapter 6

OUR COMMUNITY TIES AND RELATIONS

Chapter 7

ENVIRONMENTALLY SUSTAINABLE DESIGN AND OPERATIONS

Chapter 5

SUPPLIER MANAGEMENT, OPPORTUNITIES AND CHALLENGES

Chapter 8

OUR TEAM, THE KEYTO GROWTH

ABOUT THIS REPORTAND GRI TABLE

Sustainability Report 2015

/ 8

We have made progress toward making Parque Arauco a

more sustainable company and this is just the beginning.

I would like to reiterate our organization’s ongoing

commitment to move forward in this area.

Dear Stakeholders:

I would like to begin by touching on the importance our organization places on sustainability. From the

outset, Parque Arauco’s actions and way of doing business have been guided by our respect for people.

This commitment is reflected in our corporate culture and our vision that success is built on excellence in

what we do and genuine concern for our stakeholders. The philosophy that business must be sustainable

has accompanied us throughout our history and we hope to continue expanding on it in the future.

Our concern for sustainability has not always been manifested in a structured plan with clear objectives

and an organization-wide strategy. However, in 2015, we formed a Corporate Sustainability Area to

develop specific objectives that enable us to continue to create better value for our stakeholders and

implement management tools that incorporate best practices in sustainability. This year, we also formed

an Executive Sustainability Committee, comprised of personnel from the Corporate Legal and Corporate

Administration and Finance departments. The committee will work with the sustainability team and

division management in Chile, Peru and Colombia to move forward on these issues.

It is in this context that I have the pleasure of presenting Parque Arauco’s first Corporate Sustainability

Report—prepared in accordance with the Global Reporting Initiative’s principles. This inaugural edition

presents concrete facts and figures regarding our 2015 performance in economic, social and environ-

mental issues.

Our corporate governance model, which is based on integrity, transparency and ethics, guides the way

we do business. We have adopted best practices in this area as well, including expansion of our risk

model and our anonymous reporting hotline, EthicsPoint.

In the social realm, Parque Arauco is a long-time supporter of several non-profit organizations that

perform valuable services in our communities in Chile, Peru and Colombia. Furthermore, we are making

progress on new projects that are integrated with urban and community surroundings, for example, the

public park of over 13,000m2 that we are building in Bogotá.

Juan Antonio ÁlvarezExecutive Vice President>


/ 9

I must also mention our efforts to consolidate our leadership in good labor practices and attract the best

talent. The results of the Great Place to Work rankings, both in Chile and Peru, are a testament to years

of ongoing work in that area.

Finally, the creation of Arauco Quilicura marked an important environmental milestone. This develop-

ment was the first shopping center in Chile to earn LEED Silver certification. We have also undertaken

parallel projects related to water and energy efficiency.

We have progressed toward making Parque Arauco a more sustainable company, but this is just the

beginning. I would like to close by reaffirming our organization’s ongoing commitment to advancing

sustainability in Chile, Peru and Colombia.

Regards,

Juan Antonio ÁlvarezExecutive Vice President Parque Arauco S.A.


/ 10


/ 11

Chapter 1

THE VALUE OF WHAT WE ARE


/ 12

Our Mission

The Parque Arauco competency model is based

on two principles, which are the foundation for

our corporate values: excellence and happiness.

Excellence is the willingness and commitment to

perform every task professionally, with a strong

sense of integrity and focus on leadership in

everything we do.

Our management model places heavy emphasis

on achieving challenging targets, always taking

the ethical path and respecting principles. At

Parque Arauco, we have created a fun workplace,

where employees do their jobs enthusiastically

and cheerfully.

Through everyday actions, we demonstrate

openness and respect for people and genuine

concern for our team. This framework for

happiness is palpable in our positive work

environment; the passion with which we

do our work; and the dedication to working

collaboratively that can be seen throughout the

Company.

Parque Arauco defines itself as a developer and

operator of real estate assets—primarily for

commercial use—in Chile, Peru and Colombia.

Innovation and vision for leveraging strategic

growth opportunities have marked our company’s

history.

We set ourselves apart by developing unique

shopping centers that meet the needs of and

integrate into their surroundings.

We strive to consolidate a business proposal

founded in a deep understanding of our

customers.

We understand that the heart of our business

lies in creating spaces where visitors have

positive experiences. We work to make Parque

Arauco’s shopping centers places for gatherings,

celebration and closeness. In other words, we

create places for experiences and relationships,

where our visitors find what they are looking for

while having a good time.

OUR BUSINESS

> To develop successful

projects in prime locations

with appropriate

infrastructure and a

suitable range of products,

seeking innovative ways

to offer our customers the

best experience.


/ 13

Corporate Values

Through collaboration—the willingness to help

others perform their tasks and meet their objecti-

ves—we create an enriching, respectful, supportive

and cohesive environment.

Openness is disposition and receptiveness to new

approaches. It is the ability to incorporate new

ideas, to make creativity and innovation a normal

part of work, to see difficulties as opportunities and

to propose constructive solutions.

Integrity is consistency between discourse and

deed. It means fulfilling promises and commit-

ments, respecting policies and procedures and

always telling the truth. Integrity means living in

harmony with personal values as well as the values

of the Company and surrounding community.

To surprise the client, we make quality service our

passion, attentively meeting and exceeding the

expectations of our clients—both customers and

internal clients, or tenants. To do so, we carefully

and professionally address aspects that contribute

to the service experience or, for customers, the

purchasing experience.

Collaboration

Openness

Integrity

Surprising the client

Professionalism means fulfilling commitments,

working effectively, admitting mistakes, and re-

cognizing achievements, strengths and weaknes-

ses. It involves anticipating the needs of the team

and the Company, prioritizing organizational

interests and building trust with others.

Continuous improvement includes a willingness to

share knowledge to benefit the learning process

of others and the organization. It also entails

actively working to do things better and providing

excellent service.

We demonstrate passion when we put all our inte-

lligence, skills, talents and energy toward reaching

organizational objectives.

This passion drives us to put the best of ourselves

toward achieving targets.

Leadership means inspiring, mobilizing and

influencing teams to achieve results, encouraging

professional development and building networks

with all stakeholder groups, while complying with

the organization’s principles and values.

Professionalism

Continuous improvement

Passion for what we do

Leadership


/ 14

OWNERSHIP STRUCTURE

Parque Arauco, FACTS AND FIGURES FOR 2015>

Investment Funds

Other

Controlling group

Said Yarur family

Abumohor family

Pension Fund Administrators (AFPs)

Brokerage firms

25,9%

5,9%

2,9%

10,3%

29,2%

18,0%

5,8%2,0%

Mutual Funds Other


/ 15

Total GLA Company-owned GLA Occupancy

Number of shopping centers

Chile/

Peru/

colombia/

Parque Arauco is one of the leading shopping center developers in Chile, Peru and Colombia.

Parque Arauco, AT A GLANCE>

409.500m2

337.500m2

71.500m2

374.825m2

231.380m2

56.650m2

96,1%

94,1%

89,9%

20

15

2

91.639

44.883

9.689



Revenue in millions of Ch$ 2

1 Excludes Marina Arauco2 Revenue from January to December 2015






/ 16

/ Total Revenue

1 Excludes Marina Arauco

2 Revenue from January to December 2015 Exchange Rate: 1 USD = Ch$654.9

62,7%Chile

30,7%Peru

TOTAL IN MILLIONS

OF USD

223

6,6%Colombia

/ Total GLA

INDICATORS, BY COUNTRY

50,0%Chile

41,2%Peru

Totalm2

818.5001

8,8%Colombia

2


/ 17

/ Total GLA

/ Total revenue by format

1 Others includes strip centers and premium outlets

2 Others includes strip centers and premium outlets

83,5%Regional

7,9%Neighborhood

8,6%Other

Totalm2

818.5001

88,1%Regional

4,4%Neighborhood7,5%2

Other

Total US$223 million

INDICATORS, BY FORMAT

Our shopping centers are segmented into the following formats:

» Regional and neighborhood shopping centers

» Premium outlets

» Strip centers


/ 18

PRESENCE AND PORTFOLIO>

Peru

colombia

chile

• Bucaramanga

• Pereira

• Cajamarca

• Chimbote

• Barranca

• Cañete

• Chincha

• Lima

• Pisco

• Ica

• Arequipa

• Curauma

• Santiago

• San Antonio

• Chillán

• Concepción

Peru

Chile


/ 19

Parque Arboleda Parque Caracolí

Parque Arauco has two regional shopping centers in Colombia; the average age of the

portfolio is four years.

GLA (m2)Ownership

%

Company- owned GLA

(m2)Occupancy

Year Incorporated

Parque Arboleda 33.000 55% 18.150 92,9% 2010

Parque Caracolí 38.500 100% 38.500 87,3% 2013

COLOMBIA TOTAL 71.500 81% 56.650 89,9%

/ Operations in Colombia

/ Operations in Chile

GLA (m2)Owner-

ship%

Company- owned GLA

(m2)Occupancy

Year Incorporated

Parque Arauco Kennedy 116.500 100% 116.500 97,6% 1982

Arauco Maipú 75.000 100% 75.000 96,7% 1993

Arauco Chillán 31.500 100% 31.500 97,8% 2007

Arauco Estación 68.500 83% 56.855 97,7% 2008

Arauco San Antonio 28.500 51% 14.535 94,5% 2009

Arauco Express (Stripcenters Chile)1 18.500 51% 9.435 87,4% 2012

Arauco Premium Outlets1 39.000 100% 39.000 88.8% 2012

Arauco Quilicura 32.000 100% 32.000 99,4% 2013

CHILE TOTAL 409.500 92% 374.825 96,1%

Parque Arauco has six regional shopping centers, three outlets and 11

strip centers in Chile; the average age of the portfolio is 17 years.

Parque Arauco Kennedy Arauco Maipú Arauco Estación Arauco Quilicura

Arauco San Antonio Arauco Chillán Arauco Premium Outlets

Megaplaza Norte Megaplaza Express Villa Larcomar

Parque Lambramani Megaplaza Chimbote

In Peru, the Company has six regional shopping centers, six neighborhood

shopping centers, one outlet and two strip centers; the average age of the

portfolio is five years.

GLA (m2)Owner-

ship%

Company- owned

GLA (m2)Occupancy

Year Incorporated

Megaplaza Norte 110.500 50% 55.250 96,7% 2006

Megaplaza Express Villa 7.500 50% 3.750 97,3% 2009

Larcomar 26.000 100% 26.000 89,5% 2010

Parque Lambramani 28.500 100% 28.500 89,6% 2010

MegaPlaza Chimbote 28.000 34% 9.380 94,2% 2012

MegaPlaza Express Villa El Salvador

9.000 50% 4.500 98,3% 2012

MegaPlaza Express Chincha 8.000 50% 4.000 84,6% 2013

Propiedades SCP1 13.000 100% 13.000 83,0% 2013

MegaPlaza Cañete 16.500 50% 8.250 99,2% 2013

MegaPlaza Express Barranca 9.500 50% 4.750 96,9% 2013

MegaPlaza Pisco 14.000 50% 7.000 96,7% 2015

El Quinde Cajamarca 30.500 100% 30.500 92,4% 2015

El Quinde Ica 36.500 100% 36.500 95,0% 2015

Peru TOTAL 337.500 69% 231.380 94,1%

/ Operations in Peru

1 SCP Properties include a premium outlet and two strip centers in Lima.


/ 20

Direct economic value generated 2015

Revenue $ 146.210.509

Finance income $ 3.537.871

Share of profit (loss)of associates $ 8.296.038

Total direct economic value generated $ 158.044.418

Direct economic value distributed

Operating expenses1 $ 15.077.535

Administrative expenses $ 14.955.558

Payroll $ 18.653.545

Finance costs $ 30.189.637

Taxes 2 $ 8.210.406

Donations $167.885

Dividends paid $ 24.569.973

Total direct economic value distributed $111.824.539

Total economic value retained

Total direct economic value generated $ 158.044.418

Total direct economic value distributed $111.824.539

Total economic value retained $46.219.879

ECONOMIC INDICATORS>

1 Excludes payroll2 Includes income tax; excludes property tax and VAT


/ 21

/ Other relevant operating figures for 2015

TOTAL ASSETS

TOTAL LIABILITIES

EQUITY

1.413.758

633.631

776.403

1.671.939

895.536

780.127

2014

2014

2014

2015

2015

2015

All figures are expressed in ThCh$


/ 22

2015 HIGHLIGHTS

January

October

December

March

November

Other important events this year

April

• Acquired the El Quinde

shopping center in

Cajamarca (30,500 m2) and

El Quinde Ica (35,500m2),

thereby expanding our

portfolio in Peru.

• Signed an agreement

to purchase Plaza Jesús

María shopping center in

Lima (14,000m2 of leasable

space).

• Finalized the agreement

to buy interest owned by

our partner in Peru, Los

Portales, thereby gaining

access to 100% of InOutlet

Faucett in Lima (7,500m2);

the Viamix Chorrillos

and Viamix Las Malvinas

(6,000m2 in total) strip

centers; the Viamix

Colonial project (3,000m2)

and 19,500m for future

projects.

• Opened MegaPlaza

Pisco (14,000m2 of

leasable space), our sixth

neighborhood shopping

center in Peru.

• Announced acquisition of

45% interest in Inversiones

Inmobiliarias Arauco

Alameda S.A.S. from

Bancolombia, thereby

accessing: 55% of Parque

Arboleda (Pereira),

100% of Parque Caracolí

(Bucaramanga), 100% of

Parque La Colina (Bogotá),

and 100% of 46,000m2 plot

of land in Valledupar.

• Made progress on the strip centers in Recoleta, Ciudad Empresarial

and Antofagasta, which will add 14,500m2 to the Arauco Express

portfolio in Chile.

• Continued development of the Parque La Colina project in Bogotá

and began construction of our first outlet in Colombia.

• Made progress on construction of the first premium outlets in Lurín

(8,500m2), just outside Lima. The project has been built to meet LEED

certification standards.

• In April, we announced the

development of two projects

in northern Chile: the area’s

first premium brand outlet,

Arauco Premium Outlet

Coquimbo, and the Arauco

Antofagasta shopping

center.

• New projects and

expansion of shopping

centers in Peru: MegaPlaza

Norte, MegaPlaza Chimbote,

MegaPlaza Express Chincha

and MegaPlaza Express Villa

Chorrillos.

• Also in April, we conducted

the largest bond issuance

in company history (UF 6

million).


/ 23

RECOGNITION IN 2015

- Latin American Shopping Center Awards 2015 Category: Traditional Marketing - Cause Related Marketing (Silver) Project: “Da Gusto Compartir”. MegaPlaza, Lima, Peru

Proyect: “Esta Navidad, Yo Regalo Educación” Parque Arboleda and Parque Caracoli, Colombia-

- Top-100 Companies with the Best Reputation. Merco Chile.

45th place

- Corporate Reputation, Chile. H+K GFK Adimark 2015. L41th place

- Great Place to Work. Chilean and Colombian operations (combined),

39th place. Peruvian operations, 11th place.

/ 23


/ 24


/ 25

Chapter 2

BUILDING SUSTAINABLE RELATIONSHIPS


/ 26

STAKE-HOLDERS

HOW WE ENGAGE

Shareholders and Other Capital Market Representatives

Trade Groups, Chambersand Other Associations

Authorities and PublicInstitutions Communities

Parque Arauco strives to maintain open, timely and comprehensive communication with our diverse

stakeholders through the following channels and practices:

Shareholders' meeting

Annual report

Corporate website

Investor Relations Area

Meetings and

conference calls

Other extraordinary

meetings

Contact through

trade groups

Meetings and reports

on information

requested by the

Superintendency

of Securities and

Insurance and other

regulatory bodies

Corporate website

Annual report

Meetings with civic

associations

Contact through foundations and social institutions

Meetings with community representatives, arranged through municipalities through municipalities

Participation in

meetings, assemblies

and round tables

STAKEHOLDERS>


/ 27

Customers

Call Center

Information desk in

our shopping centers

Shopping center

websites

Corporate website

Social networks:

Facebook, Instagram,

Twitter, Pinterest

Satisfaction surveys

and indicator

measurements

Detalle, our digital

magazine

Our tool for dealing with any question or report related to our operations and issues

that could endanger ethics or good practices open to all stakeholders.

Employees Tenants

Intranet

Corporate e-mail

One-on-one meetings

and feedback sessions

Area meetings

Breakfast meetings

to introduce strategic

issues

Organizational climate

survey

Events and

celebrations

Meetings with Head of Commercial

Operations from each

shopping center

Division commercial area meets with potential new tenants

Division commercial

area meets with

current clients to

discuss growth

opportunities,

expansion and

contract renewal

Individual shopping

center websites

• International Council of Shopping Centers• Chilean Chamber of Shopping Centers• Chilean Chamber of Construction• Chilean Chamber of Commerce• ICARE• SOFOFA• Generación Empresarial• Unión Social de Empresarios Cristianos• Santiago Chamber of Commerce

• Smart Building Chile, a project supported by the Chilean Development Corporation (CORFO) and the Chilean Chamber of Commerce

• Chilean-Peruvian Business Council• National Advertising Association (ANDA)• Direct and Digital Marketing Association, Chile• Colombian Shopping Center Association• National Merchants Federation of Risaralda

(FENALCO; Santander, Colombia)• Global Compact, Chile• Peruvian Shopping Center Association (ACCEP)

/ Institutions or trade groups in which the company participates

To learn more about

EthicsPoint, see

page 37.

Suppliers

Contact form on website Invitation-

only and bid proposal evaluation

meetings

Introductory and exploratory

meetings with potential new

suppliers

Direct contact for operational issues

through the corresponding contract

administrator

Direct supplier service hot line:

• Chile: +56 22 299 0777

(Hours: 8.00 a.m. a 18.30)

• Peru: +51 1 610 4643

(Hours: 6.00 a.m. a 15.30)

• Colombia: + 57 1 322 1645

(Hours: 6.00 a.m. a 15.30)


/ 28

METHOD AND DEFINITIONOF OUR MATERIAL ASPECTS>As we prepared our first Sustainability Report, we made progress toward organizing and adopting

an organization-wide approach to managing our organization’s sustainability-related challenges

and opportunities. From its outset, Parque Arauco has undertaken initiatives that implicitly manage

sustainability across the entire Company.

Now, we want to go a step further and develop a comprehensive strategy in line with our sustainability

priorities. To do so, we have worked to understand our stakeholders’ concerns and expectations as well

as their connection to relevant aspects of our business. With this information, we established material,

priority issues on which to focus management and reporting efforts in the short, medium and long term.

Best practices and issues relevant to the commercial real estate leasing industry in Latin America and

other countries around the world.

In-depth interviews with executives, strategic area and process leaders and management in the three

countries where we operate.

A survey inviting other stakeholders to express their expectations for Parque Arauco’s sustainability

management. These stakeholders included: employees at all levels of the organization, strategic suppliers,

tenants from some of our shopping centers, financial analysts, foundations and civic organizations.

» DATA ANALYSIS

17

Methodology:

INDUSTRY BENCHMARKS

VIRTUAL STAKEHOLDER ENGAGEMENT

EXECUTIVE INTERVIEWS

Sources of information

In-depth interviews with executives

Surveys analyzed

We analyzed information from three different sources:

/ The model for identifying our material aspects

101

12


/ 29

Material and priority sustainability aspects were extracted from these sources of information. Aspects that

were frequently mentioned by different sources were categorized, then cross-referenced with their impact

on business strategy:

MATERIAL ASPECTS IDENTIFIED

RELATED OR APPLICABLE ASPECTS

Corporate Governance

Ties with surrounding communities

Managing environmental impact

Sustainable design

Ability to attract and retain talent

Supplier and contractor management

Ability to anticipatechanges inconsumer preferences

Ethical and transparent decision making; monitoring

and follow-up of ethical, compliance and risk

management principles.

Trust and good community relationships; being a

good neighbor and corporate citizen; creating value

for neighboring communities.

Environmental management focusing on water,

waste and energy efficiency.

Developing innovative construction

models that address the environmental

challenges of the future.

Managing issues like diversity, inclusion, skill

development, high performance, well-being, job

security, culture and organizational climate.

Productivity; standards and practices that anticipate

risk in the value chain; sustainable selection criteria

and joint sustainability initiatives.

Monitoring and managing customer service

excellence; analysis and anticipation of consumer

behavior—the drivers that make our shopping

centers places for gathering and experiences.

For additional information on this topic, please see

P.

28

P.

76

P.

101

P.

90

P.

106

P.

66

P.

43


/ 30


/ 31

Chapter 3

OUR CORPORATEGOVERNANCE

MODEL


/ 32

Parque Arauco is a publicly-traded corporation

managed by a nine-member Board of Directors. In

accordance with company bylaws, these directors

serve three-year terms and may be subsequently

re-elected.

The directors are responsible for analyzing different

business opportunities as well as their potential impact

on the economy, environment and society. Likewise,

the Board of Directors is charged with reviewing and

managing all potential business risks, and requesting

and evaluating information in order to mitigate and/

or resolve issues that arise.

The criteria for appointing and electing board

members are set forth in the Corporations Law (No.

18,046) and company bylaws.

As of year-end 2015, none of the directors held

executive positions at Parque Arauco

>>

José Said SaffieChairman

B.A. in Law Tax ID No.: 2.305.902-9

Attendance in 2015: 100% Monthly stipend: UF 200

>>

Orlando Sáenz RojasDirector

B.S. in Civil EngineeringTax ID No.: 3.599.669-9

Attendance in 2015: 92,30%Monthly stipend: UF 100

>>

René Abumohor ToumaDirector

Financial Investor Tax ID No.: 3.065.693-8


>>

Rafael Aldunate ValdésDirector independiente

B.A. in Business Administration Tax ID No.: 5.193.449-0

Attendance in 2015: 100%Monthly stipend: UF 100

Board structure AND RESPONSIBILITIES>


/ 33

>>

Guillermo Said YarurDirector

B.S. in Civil Engineering Tax ID No.: 6.191.544-3


>>

José Domingo Eluchans UrendaDirector

AttorneyTax ID No.: 6.474.632-4


>>

Salvador Said SomavíaDirector

B.A. in Business AdministrationTax ID No.: 6.379.626-3


>>

Rosanna Gaio CuevasDirectora independiente

B.A. in Accounting Tax ID No.: 6.934.528-K


>>

Joaquín Brahm BarrilDirector independiente

B.A. in Business Administration Tax ID No.: 7.052.386-8


The criteria for appointing and electing board members are set forth in the Corporations Law (No. 18,046) and company bylaws.


/ 34

Our Company is governed by the Corporations Law, which

sets forth the conditions for our directors to be considered

independent.

Directors’ Committee

INDEPENDENCE ANDTHE BOARD

In accordance with article 50 bis of the Corporations Law, we have a Directors’ Committee, which met 12

times in 2015. It is structured as follows:

Joaquín Brahm Barril Yes 92% UF 65

Rafael Aldunate Valdés Yes 100% UF 65

Guillermo Said Yarur No 100% UF 65

DirectorIndependent

Member2015

Attendance

Monthly Stipend for Committee Participation

Any financial, professional,

credit or business connection,

interest in or dependence on the

Company or other companies

within the same group, its parent

company, or directors, managers,

administrators, senior executives

or advisors at any of these

companies.

Any kinship relationship, up to

the second degree by blood

or marriage with any of the

individuals referred to in the

previous point.

Been a director, manager,

administrator or senior executive

of non-profit organizations

that have received significant

contributions or donations from

the individuals listed in point 1.

Been a partner or shareholder with

direct or indirect control over 10% or

more of the capital of entities that

have provided legal or consulting

services for significant amounts; or

external auditors for the individuals

referred to in point 1 or for the

Company’s principal competitors,

suppliers or customers; or served as

director, manager, administrator or

senior executive of these entities.

The law establishes that independent directors of corporations may not have:

1. 2. 3. 4.

To be considered independent, directors must have met all these requirements for the 18 months prior to their appointment.


/ 35

Evaluating external audit reports, balance

sheets and the financial statements

presented to the shareholders.

Preparing an annual management report

with the main recommendations to the

shareholders.

Reviewing and following up on certification

of Law 20,393.

Evaluating proposed external auditors and

risk rating agencies for assessment by the

Board and subsequent presentation at the

respective shareholders’ meeting

Evaluating records relating to transactions

with related parties, in accordance with

the Corporations Law.

Analyzing and approving the risk

management methodology.

In addition, the Committee is responsible

for everything required by law and company

bylaws as well as specific tasks assigned to it

by the shareholders or the Board.

Conducting a thorough review of the

remunerations system and compensation

plans for the Company’s managers and

senior executives.

Meeting with the internal audit team every

month to monitor and follow up on the main

audit findings.

The functions of this Committee include:

1. 4. 7.

2. 5. 8.

9.3. 6.

INTEGRITY AND TRANSPARENCY

RISK MANAGEMENT BY THE BOARD

Our Code of Conduct describes our clear

commitment to complying with the laws, rules

and regulations in all the places we operate.

All Company employees and officers, including

board members, must observe and uphold the

commitments set forth in that Code.

The Company has implemented a Crime

Prevention Model, which was audited by an

external company, BH Compliance. In accordance

with Law 20,393—which establishes criminal

liability for legal entities that commit the crimes

of money laundering, financing terrorism or

bribery—the model is a preventive mechanism to

monitor and control processes or activities that

could represent risk.

The Board reviewed and unanimously approved

both the Crime Prevention Model and the Code of

Business Conduct. These integrity tools

and non-negotiable practices guide our corporate

management efforts.

The Department of Internal Control and Audit

monitors the Company’s board-approved risk

methodology.

Directly or through the Directors’ Committee, the

Board analyzes the risk management process. It

establishes procedures to identify, analyze, mitigate,

quantify and monitor risk in order to influence

development and fulfillment of organizational

objectives of any nature, including financial,

environmental and social objectives. In addition, the

Company uses its map of critical processes and risks

to draft its annual master plan and internal audit

program.

The senior executive team is responsible for

presenting the Company’s investment projects as well

as business and management strategy to the Board.

To learn more about. the Company’s

risk methodology and matrix,

see page 40.


/ 36

ManagementExecutives >

The Company’s senior executives consider the economic, environmental and social effects of the initiatives

submitted to the Board for analysis. The teams take these variables into account during project development,

striving to create maximum value for all stakeholders with each decision.

>>

Juan Antonio Álvarez AvendañoExecutive Vice President

Attorney Chilean

>>

Eduardo Herrera VázquezChief Executive Officer, Peru Division

B.A. in Industrial Engineering Peruvian

>>

Andrés Torrealba Ruiz-TagleChief Executive Officer, Chile Division

B.A. in Business AdministrationChilean

>>

Juan Pablo Romero RestrepoChief Executive Officer, Colombia Division

B.A. in Business AdministrationColombian


/ 37

>>

Carolina Galletti VernazzaniCorporate Human Resources Manager

B.A. in Business AdministrationChilean

>>

Duncan Grob UrzúaCorporate Legal Manager

Attorney Chilean

>>

Claudio Chamorro CarrizoCorporate Chief Financial Officer

B.A. in Business Administration ChileanChilean

>>

Marco Henríquez EspinozaCorporate Audit Manager and Controller

B.A. in Accounting ChileanChilean


/ 38

Since the Company’s founding, its business policies

and practices have been based on ethical behavior

and regulatory compliance, influencing our

stakeholders’ perceptions and how we build long-

term business relationships.

Our Code of Business Conduct is an additional tool

that specifies the basic, non-negotiable behavior,

whether acting individually or collectively, that is

mandatory for everyone in the Company and its

subsidiaries.

Ethics and compliance, ELEMENTS THAT IDENTIFY US>

/ Code of business conduct: doing What’s right

REGULATORY COMPLIANCE

CONFLICTS OF INTEREST

USE OF INSIDER INFORMATION

ANTITRUST AND LEGAL TRADE

HANDLING CONFIDENTIAL INFORMATION

FRAUD AND INTEGRITY

ASSET PROTECTION

BRIBERY, MONEY LAUNDERING AND TERRORISM FINANCE

DONATIONS

HARASSMENT AND DISCRIMINATION

CONSUMPTION OF ALCOHOL, TOBACCO AND ILLEGAL DRUGS

COMPLIANCE

REPORTING ILLEGAL CONDUCT AND NONCOMPLIANCE

The Code is provided to all employees and is

available through several Parque Arauco Human

Resources Area channels. Here are some of the

points it covers:


/ 39

/ Reporting hotline: ethicspoint

OUR CODE OF BUSINESS CONDUCT IS A TOOL THAT ESTABLISHES THE BASIC, NON-NEGOTIABLE BEHAVIORREQUIRED OF EVERYONE WHO BELONGS TO OUR ORGANIZATION.

EthicsPoint, a tool operated by the international supplier NAVEX, is available to all our stakeholders

(customers, tenants, users, employees, suppliers, investors, shareholders, neighbors and the general

community). This simple, anonymous and confidential hotline can be used to report any event that may

involve irregularities, misuse of company assets or resources, abusive behavior, breaches of the law or

corporate policy.

Upon receipt by the Ethics Committee, the Executive Vice President and the Directors’ Committee,

complaints are studied on a case-by-case basis. Depending on the information available, an

investigation is initiated or additional background information is requested to better assess the

situation. The Ethics Committee investigates any irregularity reported through this hotline and

communicates the results to the Directors’ Committee and the Executive Vice President.


/ 40

REPORTING HOTLINE

24,5%Internal

complaints(Employees)75,5%

External complaints

• In the Code of Business Conduct section of our shopping centers’ websites

• On our corporate website: www.parauco.com under Corporate Governance/Governance and Transparency

Practices/Anonymous Reporting

• Through the corporate Intranet available to all employees in Chile, Peru and Colombia

The following is a general summary of the complaints processed through EthicsPoint since its implementation:

98 TOTAL COMPLAINTS

98,9%Internet

1,1%Internal channels

How to access - REPORTING HOTLINE: ETHICSPOINT>

98 TOTAL COMPLAINTS


/ 41

TYPE OF COMPLAINT

41,8%Anonymous

58,2%Not

anonymous

LANGUAGE OF THE COMPLAINTS

99%Spanish

1%English

All stakeholders may utilize our anonymous reporting tool, EthicsPoint. The Ethics Committee is responsible for processing any irregularities reported through this hotline.

98 TOTAL COMPLAINTS

98 TOTAL COMPLAINTS

The ethics committee:OBJECTIVE, STRUCTURE AND FUNCTIONING>The Ethics Committee was created to lend support, objectivity and rigor to the process of investigating reported

situations that directly threaten the Company’s ethical principles or put the Company at risk of poor practices

that affect the integrity of our business.

The committee, comprised of executives from the Controller’s office and the Legal and Human Resources areas,

reviews each case on the basis of information received and data gathered through inquiries. The process ends

with a report containing conclusions and measures to be adopted as a result of the complaint.


/ 42

We focus on generating a process and policy that help us review

and define controls related to internal risk management. This

process observes and is based upon international best practices

and standards.

Our risk MANAGEMENT MODEL>

FACT-FINDING DESIGN CONSTRUCTION IMPLEMENTATION ONGOINGmonitoring

STEPS IN THE RISK MANAGEMENT PROCESS

ACTIVITIES FOR EACH STEP

DELIVERABLES

• Surveys

• Internal audits

• Process-

subprocess

mapping

• Redefine

taxonomy

• Qualitative and

quantitative

classification

• Accounting-

process

relationship

• Risk rating and

weighting

• Process rating

and weighting

• Impact and

probability

levels

• Tool assessment • Ongoing

monitoring

• List of risks

• List of

processes

• Risk Policy

• Updated Risk

Methodology

• Definitive

Taxonomy

• Process Mapping

• Risk Mapping

• Risk-Process

Matrix

• Risk system • Ongoing

monitoring

Reporte de Sostenibilidad 2015

/ 42


/ 43

Matrix of Identified RisksThe three categories of risks are classified, defined and cross-referenced on a map of internal controls and

management. Each category is directly or indirectly related to environmental, social or economic issues

affecting operations.

The process of identifying the Company’s risk matrix involves prioritizing and developing control

mechanisms, then assessing the efficiency with which they mitigate potential risks.

General Risks

ProcessRisks

InformationRisks

• Competition

• Client needs

• Technological innovation

• Shareholder relationships

• Availability of capital

• Operating risks

• Financial risks

• Authority risks

• Technological risks

• Integrity risks

General risks, also called environmental risks, are the result of external factors

that could trigger significant changes in the basis for the business’s objectives

and strategies. Among other issues, they include:

Process risks are those that are inherent to managing and administrating the

business. They refer to issues that could affect the Company’s creation of value:

• Commitments undertaken

• Drafting reports

• Environmental context

and analysis

• Business portfolio

• Valuation

Information risks are related to management, accuracy and backing up of

information relevant to the Company’s strategic decision making. They include:

• Performance measurement

• Planning

• Life cycle

• Business model

• Sovereign and political risk

• Legal and regulatory risks

• Industry risks

Process of identifying AND ASSESSING RISKS>


/ 44

Risk Prevention

We focus efforts on communication and training activities that help our operations avoid any risk situation or

poor practice.

The Controller and the Corporate Human Resources Area design prevention initiatives aimed at all levels of

the organization, including the Board of Directors and senior management.

Detection and Response

This point includes reviewing reports of possible irregularities as well as the findings from internal audits and

other established monitoring mechanisms.

Communications and improvement processes are triggered as a result of detected breeches, while

investigations seek to identify solutions and disciplinary measures.

/ Actions Related To The Crime Prevention Model

Our Crime Prevention Model consists of ongoing monitoring through controls on processes and/or

situations that could pose a risk in terms of the provisions of Law 20,939 (money laundering, terrorism

finance and bribery).

The Head of Crime Prevention is responsible for coordinating with the Company’s main executives to

implement the model.

Our Crime Prevention Model is evaluated by an independent certification firm, which corroborates

compliance with related policies, standards and procedures.

Crime PREVENTION>


/ 45

Total visits to information available on the Intranet (2015)

Percentage of visits or sessions from Chile

Percentage of visits orsessions from Peru

Percentage of visits or sessions from Colombia

34.88288,34%6,71%4,96%

An interactive course to reinforce the Code of Conduct is also available on the intranet. Fifty percent of the

employees who joined the Company in 2015 have completed the course.

One hundred percent of the employees who joined the Company in 2015 received a copy of the Code of

Conduct, which includes information related to Law 20,393.

Employee participation in this type of online training is as follows:

Our Intranet offers several options for training our employees and keeping them up-to-date on issues related to ethics and risk/crime prevention.

In 2015, we worked to build an internal framework and guidelines for fair competition issues. To that end and

with the aid of specialized external antitrust consultants, we have drafted a manual that addresses issues like:

• Free market competition: concept, scope, regulation and characteristics

• Examples of the main figures or situations that could threaten free market competition, such as horizontal

and vertical agreements or unfair competition

• The main commitments that employees of Parque Arauco and its subsidiaries must uphold

The Antitrust Manual was approved by the Parque Arauco Board of Directors in March 2016. It was

subsequently distributed to employees and published on the website

Actions to promote AND SAFEGUARD FREE MARKET COMPETITION>


/ 46


/ 47

Chapter 4

OURCUSTOMERS

AT THE HEART OF WHAT WE DO


/ 48

Parque Arauco Kennedy was the first shopping mall in

Chile (1982). Recognized as an icon by locals and tourists

alike, it continues to set trends and innovate in its

customer relationships.

Our experience as pioneers in the business in Chile has

facilitated transfer of our model and learning to other

places in Chile and abroad.

We are pioneers in the SHOPPING CENTER BUSINESS IN CHILE>

1994Parque Arauco was the first

Chilean shopping center company to expand its business

beyond Chilean borders.


/ 49

Innovation as a way OF RELATING TO OUR CUSTOMERS >Given the nature of our business, we must develop new elements so that every step of our visitors’

experience—including before they even step foot on our facilities—meets their expectations and makes

them want to return.

To that end, we consider multiple variables: the location and design of our shopping centers, interior design,

the product offer, store selection, access and service personnel. In short, each detail of our shopping center

operations is carefully designed.

Innovation and surprise drive the way we relate to customers and visitors. From the outset, we have striven

to create places that offer much more than just things to buy.


/ 50

1997 2007

2003 2010_

We were the first Chilean shopping center company to include a medical center in its facilities.

_

We pioneered the concept of designating a special design and home décor space.

__

We opened the first open-air restaurant dining area completely transforming the experienceof dining and getting together with others at a shopping center.

_

We offered Chile’s first smart parking system, to reduce the time it takes visitors to easily find available parking spots.

Leadership MILESTONES>


/ 51

2011 2013 2015

2012 2014_

We were the first to include lactation rooms in a shopping center in Chile.

_

We developed Latin America’s first mobile phone pplication with gps in shopping centers.

_

We built Peru’s Lurín outlet in accordance with internationalstandards on sustainable construction

_

We were the first shopping center to develop a parking payment system that is integrated withthe automatic payment device used on Chile’s urban highways.

_

We were the first shopping center in Chile to earn LEED certification for sustainable building.

MALL ARAUCO QUILICURASantiago, Chile

LEED FOR CORE & SHELL

December 2014


/ 52



/ 53

Figures, data and facts EXAMPLES OF OUR EFFORTS TO ENHANCE THE SERVICE EXPERIENCE>

More than 800 parking spaces for bicycles at our shopping centers

Preferential parking spaces for individuals with special conditions

Shopping centers offering Wi-Fi

Lactation areas in our shopping centers

800

320

14

7


/ 54

Larcomar, one of our most famous

shopping centers in Lima, has joined

a campaign spearheaded by the

Municipality of Miraflores to encourage

bicycle use in that part of the city.

We have a special bicycle parking area

that offers users lockers and water.

It is open 24 hours a day, 7 days a week.

Just in 2015, more than 17,000

customers and visitors came to

Larcomar by bicycle.

Through these initiatives, we are

supporting the municipality’s efforts to

promote sustainable transportation in

everyday activities.

At Parque Arauco Kennedy, we have integrated

payment for our parking lots with the electronic

billing system used for urban highways in

Santiago, Chile.

Registered users do not need to take a ticket to enter the parking lot,

avoiding lines and traffic jams during peak times or seasons.

Charges are made through the customer’s monthly highway usage bill. Thus,

customers save time and do not need to have cash on hand.

/ ArAuco TAg,PArking WiThouT Lines or cAsh

VISITORS WHO ARRIVE BY BICYCLE ARE GREETED WITH WATER AND LOCKERS.


990.000We recorded more than 990,000 visits to Parque Arauco

Kennedy using the TAG-integrated parking system. We are

the only shopping center to offer this convenience


/ 55

We have more than 7,900 m2 available for playgrounds

DeDetalle, our digital magazine, is a platform for trends, fashion and tips.

It had more than 293,000 hits in 2015.

CAs part of our commitment to operational excellence, we work to prevent and comprehensively manage our

customers’ and visitors’ safety.

In Chile, we have implemented a strategy that integrates technology with a central risk management platform and

cross-analysis of geographically referenced data. This enables us to anticipate situations and detect risk patterns in order to

prevent unexpected situations at our shopping centers.

7.900

293.000

Safety

m2

www.revistadetalle.cl


/ 56

Shares her view on safety at the Company:

Francisca Osorio, MANAGER OF SHOPPING CENTERS, CHILE DIVISION>

/ What role does safety play in Parque Arauco’s management model and strategy?

/ How does Parque Arauco show concern for its customers’ and visitors’ safety?

1.

2.

Safety is very important at Parque Arauco. This is reflected in our ongoing concern and

management of safety issues in all our shopping centers. As places where a large number of

people work and circulate, it is vitally important that everyone is able to move through the

different areas and sectors safely.

So, we rigorously follow several processes, policies and protocols that are designed to reduce the

likelihood of a dangerous situation. Additionally, we take a preventative stance in the face of any

threat.

We have a Safety and Risk Prevention area that is constantly focused on identifying possible

risk situations, effective solutions and prevention measures. At the same time, we maintain our

equipment in accordance with manufacturer’s recommendations; correct operation is verified

regularly.

We use technology to monitor what is happening in our shopping centers. Among other

tools, we have developed an integrated CCTV camera system and control rooms to monitor

fire detection and prevention systems. All these measures are in compliance with standards

established by different controlling entities.


/ 57

/ What are some of the most important milestones and future opportunities and challenges that Parque Arauco will have to address in terms of customer and visitor safety?

3.

Technology advances every year, offering different tools for prevention and continued preparation.

We are constantly looking for new, efficient tools to include in our everyday operations.

At the same time, we work to strengthen the culture of risk anticipation and prevention. We need to

work with several different players: suppliers, competent authorities, employees, stores and even our

visitors.

Furthermore, we believe that collaboration with competent authorities and institutions complements

our efforts and allows us to respond to the safety challenges we face.


/ 58

/ Overall customer satisfaction

Monitoring and measurement, mechanisms FOR UNDERSTANDING CUSTOMER SATISFACTION>Concrete examples demonstrate our concern for service excellence. As part of the continuous improvement

process, we seek feedback in order to learn about our clients’ perceptions.

We conduct studies that measure overall satisfaction and, in some cases, perceptions regarding specific issues,

like the cleanliness and condition of our restrooms.

/ Estudio 360, customer satisfaction indicators in chile:

The study is called Estudio 360 because it provides

a comprehensive view by accounting for various

elements, including: opinions on stores and the

shopping center’s business mix, whether the

customer would return, and general ratings of the

experience.

In 2015, the study was performed twice for the

following shopping centers:

Parque Arauco Kennedy

Arauco Maipú

Arauco Estación

Arauco San Antonio

Arauco Chillán

Arauco Quilicura

General customer satisfaction is measured with the

following question:

Based on your experience today, how would you

rate your satisfaction with your visit to our shopping

center?

The responses were as follows:

Highly satisfied :Ratings between 7 and 6

Neutral: Rating of 5

Unsatisfied: Ratings between 1 and 4

66%Highly satisfied

26%Neutral

8%Unsatisfied

Total responses

4.320


/ 59

59%Very satisfied

21%Satisfied

9%Unsatisfied

11%Very unsatisfied

TOTAL RESPONSES 398.853

/ 2015 Satisfaction according to restroom feedback system

In addition to general customer satisfaction, we measure certain issues that impact good service

experience. In that regard, Parque Arauco Kennedy was the first shopping center to implement a digital

system for evaluating the perception of restroom cleanliness.

Our customers rate the cleanlinessAND CONDITION OF OUR RESTROOMS ON A DAILY BASIS>


/ 60

chile

Followers on Facebook

Followers on Twitter

Visits to our websites

553.728

61.659

4.235.775

Platforms and social networking enable open, fluid exchange of information with our customers, users and

potential visitors.

The marketing area of each division (Chile, Peru and Colombia) is responsible for managing these

platforms as well as external campaigns and communication.

Our online interaction in 2015:

DIGITALCOMMUNICATION>


/ 63

Peru




860.149

44.137

668.897


/ 64

colombia




156.224

8.124

131.225


/ 65


/ 66

1 A visit becomes a session when the user interacts with the website. Thus, the number of sessions is equal to or greater than the number of visits.

More than 1,500,000 total followers on Facebook

Close to 113,000 total followers on Twitter

More than 5 million visits to our website11

1.500.000

113.000

5.000.000

/ Consolidated social networking and website figures


/ 67

The marketing area is responsible for proper management of personal data and for safeguarding the privacy

of customer data. Our procedures are in alignment with each country’s laws and regulations on these issues.

In 2015, we did not receive any sanctions for failure to uphold regulations on marketing, privacy or personal

data leaks.

Respect for our customers’DATA PRIVACY>


/ 68

Chapter 5

SUPPLIER MANAGEMENT, OPPORTUNITIES AND CHALLENGES


/ 70

Chile

Santiago

Peru

Others

Colombia

2,822 Parque Arauco suppliers in 20151

/ Location of our suppliers

Distribution of OUR SUPPLY CHAIN:>

40%

16%

44%

Total2.822

89%

11%

Our strategic suppliers are proportionally distributed in capital cities and other regions or provinces. In many cases,

our operations support local development of small and medium enterprises in mid-sized cities.

In 2015, payments to suppliers of existing operations totaled ThCh$81,968,761.

chile

1 With at least one payment transaction during the year.


/ 71

Lima

Bogotá

Others

Others

Arequipa

Pereira

Bucaramanga

19% 45%

15%

21%

The graphs include all operations, with the exception of MegaPlaza in Peru.

Peru

colombia

57%

7%

36%


/ 72

We have recently begun the process of identifying and classifying

our strategic suppliers. We are analyzing criteria and the type of

relationship or impact that each supplier has on our operations.

To date, the analysis has included:

The operational continuity category includes the largest number of suppliers. As such, it involves the largest

number of people, who perform their roles through contractors. This supplier classification process has yet

to be conducted for the entire operation; however, we have made progress on identifying the criteria and

categories applicable to some of the operation’s most significant bidding processes in 2015.

Identification and classificationOF STRATEGIC SUPPLIERS>

CRIT

CATE

G

Annual Payments in Excess of US$ 1 Million

Operational Continuity

New Product Development

The supplier contributes to business

continuity. An interruption or flaw

in service threatens shopping center

operations or personal safety. It may

also expose the Company to violations

of laws or regulations.

The supplier is directly involved in

developing the Company’s future

shopping centers.

Suppliers to which annual payments

in excess of US$ 1 million have been

made.

This segment is broken down into five

main categories:

• Utilities: electricity, water and gas

• Maintenance: climate control,

vertical transportation and shopping

center operations

• Housekeeping

• Safety

• Technological infrastructure: web

portal, ERP and complements,

telephone, cloud and Internet,

equipment and servers.

There are two main categories for this

type of supplier:

• Landbank leases

• Construction, architecture and

engineering

The following types of suppliers are also

included in this segment:

• Utilities: electricity

• Security

• Construction

• Maintenance

In addition to these categories:

• Banks

• Service outsourcing

• Insurance


/ 73

Social considerations FOR SELECTING, EVALUATING AND MANAGING SUPPLIERS>

In the most important bidding processes, business divisions and regional services areas use pre-established

criteria and considerations to select strategic suppliers.

In Chile, the broad matrix of criteria used in 2015 to evaluate potential strategic suppliers included pricing,

business stability and soundness, as well as good personnel management practices.

PRICING FINANCIAL BEHAVIOR

SOUNDNESS

This criterion is comprised

of two equally weighted

elements:

1. Business Experience 2. Labor Relations

Years in business Number and frequency of actions meant to support worker well-being

Number of employees Formal personnel selection process

Turnover Training

Records and documentation supporting application of the procedure manual Salary trends

Workforce planning and formal job descriptions

/ The following are some of the criteria applied in strategic bidding processes:

Tax payment history,

regulatory compliance,

liquidity, credit status, etc.


/ 74

In addition, we conduct periodic reviews. Violations of local labor laws result in fines and penalties. We also

check to make sure that mandatory social security payments have been made and review health and job safety

issues at supplier companies.

In 2015, the Controller worked with the Chile Division’s Operations Department to audit four strategic suppliers.

All supplier companies’ behavior and history will be considered in future bidding processes. In 2015, no violations

of the right to organize were identified among our strategic suppliers.

Our formal evaluation includes human rights criteria such as prevention of child labor and work safety issues.

Periodic evaluation of indicators and analysis of company history.

Adequate back-up team to cover operations on weekends and holidays, when required.

Consistent application of the operation’s control mechanism checklist.

LOCATION OPERATING CAPACITYSupplier’s origin, location and

base presence in the same city

as the operation.

This criterion is comprised

of two equally weighted

elements:

1. Control mechanisms, including:

2. Capacidad de Respuesta, considera entre otros:

A team that guarantees monitoring of the service and compliance with human resources standards.

Response in the event of absence.


/ 75

We are experienced at working with our strategic suppliers to institute actions and good practices that result in

better conditions for our own employees and those of our service providers.

These initiatives include setting aside spaces in our shopping centers for contractors to comfortably store their

belongings or, depending on their work schedule, take a few moments to rest or eat.

In parallel, Chile’s Parque Arauco Kennedy has had the pleasant experience of partnering with contractors to

provide work opportunities for persons with different abilities for some years.

A DINING AREA FOR EVERYONE AT PARQUE LAMBRAMANI, PERU

SYMPATRIC ROOM LARCOMAR, PERU

/ Inclusion and collaboration, good social practices with a focus on contractors

We have set up approximately 100m2 with the

implements necessary for Parque Arauco employees

to eat alongside contractors’ and tenants’

employees. We have contracted an outside company

to offer food at a significantly reduced price for those

who care to choose that option.

The room’s name, Sympatric (Simpatría), comes

from the biological term describing different species

that can relate, live in or share the same space

despite their natural differences.

Likewise, this space is meant to be a place for

employees from different service providers to

rest during their work day as well as spend time

together and with employees from other external

companies that work at the shopping center.

The space accommodates up to 20 people per shift.


/ 76

FOR OVER FIVE YEARS, WE HAVE PARTNERED WITH THE LAS CONDES MUNICIPAL EDUCATION AND HEALTH FOUNDATION TO OFFER INTERNSHIP OPPORTUNITIESTO YOUNG PEOPLE ATTENDING ROTARIAN PAUL HARRIS SPECIAL SCHOOL.

“For internship program participants, this is a concrete opportunity to

develop and grow. It enables us to test what they have learned in the real

world, which transcends everyday classroom learning and allows them to

develop technical abilities as well as communication skills while interac-

ting with others, like supervisors, colleagues and customers.”

Alejandra Noemí Lillo Bustos, Occupational Therapist at Paul Harris Special School


/ 76

The objective is to create opportunities for young people with intellectual

disabilities at the school to strengthen their technical, communication and

social skills as part of the school curriculum.

To date, more than 30 young people have completed internships in the

Food Court at Parque Arauco Kennedy. Using a supported employment

model, these students work alongside personnel from the contracted

housekeeping service company and under permanent supervision by a

work skills coach from the school.

In 2015, six young people participated in this experience with four-hour

shifts Monday through Friday.


/ 77

Use of recycled materials (steel and others)

Development and experience in good construction practices

Initiatives to reduce particulate matter during construction

Efficient and differentiated disposal of project waste

Recycling and use of construction debris

Opportunities to use locally sourced materials

We also use environmental criteria in our work

with strategic suppliers. Specifically, we have

prioritized factors needed to develop new projects

in accordance with LEED sustainable construction

standards.

Since the criteria for LEED certification are rigorous

and demanding, our success lies in selecting

suppliers with broad experience in environmental

and social management.

In developing sustainable projects, we consider the

following elements:

Sustainable design and environmental challenges

CONSIDERATIONS FOR SUPPLIERS OF NEW PROJECTS>


/ 78


/ 79

Chapter 6

OUR COMMUNITY TIES AND RELATIONS


/ 80

General considerations REGARDING OUR COMMUNITY RELATIONS>Over the years, we have developed our business and designed processes for relating to neighboring

communities. Implicit in the management of each of our shopping centers is the commitment to maintain

open, constructive relationships with the communities where we operate.

We empower the leaders of each shopping center, called Center Managers, to demonstrate an available,

proactive and responsible attitude toward community concerns and suggestions.

We relate this way from the moment we break ground on a new project. We work with authorities and

local representatives to address each concern and better manage the project, as we responsibly integrate

our shopping centers into their communities.

To learn more about the

new project developmentprocess, see

page 101

Our charitable contributions are directly tied to social causes. We have a Corporate Donation Policy that

formalizes the process of approving and selecting beneficiaries of charitable donations. The policy explicitly

states that we do not make political campaign contributions.

To date, our shopping centers connect with the community and society in general in three ways:

SOCIAL OUTREACH MODEL:

Community activities calendar: Throughout the year, our shopping centers host free sports, culture and

science activities. The objective is to connect with and create value for residents in areas surrounding our

shopping centers.

Matching campaigns: We sponsor campaigns in which our corporate donation is added to our customers’

voluntary contributions. We optimize opportunities for our large spaces to mobilize and sensitize large

numbers of people to social causes.

1. Spaces with a social purpose:

2. Supporting institutions that work to make the world a better place:

3. Social Marketing:

Throughout the year, we make space available so

that various foundations can tell shopping center

customers about their cause.

We make monetary donations to non-profit

organizations in Chile, Peru and ColombiaOur social marketing efforts are divided into two

types:


/ 81

Facts, dates and figures ON OUR DONATIONS OF SPACE>

We made more than 4,800m2 of shopping center

space available for charitable activities in Chile, Peru

and Colombia.

Foundations and organizations used

space in our shopping centers in 2015.

They are broken down as follows:33

Thirteen social

support or community

development

organizations

Seven that work on

children’s issues

Seven that focus on

at-risk populations

and overcoming

poverty

Six that work with

health and persons

with different abilities

4.800m2


/ 82

/ Aldeas infantiles sos chile foundation commented on the space donations it received from parque arauco in 2015:

/ List of foundations to which parque arauco donated space in 2015:

“Having a strategic partner like Parque Arauco has been crucial for Al-

deas Infantiles SOS Chile.

The Aldeas Infantiles stands, set up in donated space, sell charitable pro-

ducts to earn additional support for our shelter and counseling programs

across Chile.”

Carolina Assi SarquisCommercial and Marketing Director at Aldeas Infantiles SOSile

Patronato Nacional de la Infancia, Fundación Las Rosas, Banigualdad, Teletón, Fundación para la Confianza,

Auxilio Maltés, Fundación Mater, Coanil, Techo para Chile, Hogar de Cristo, Coaniquem, Teléfono de la

Esperanza, Fundación Explora, Mujeres Artesanas de Estación Central, Centro IDEACTIVA de Estación Central,

Academia de Baile de la Calle, Quilicura firefighters, Maipú firefighters, Fundación Sagrada Familia, Santuario

de Maipú, vaccination campaign with CESFAM Maipú, Unidos por los Animales Callejeros (UPLAC), Hogar

Niño Jesús, vaccination campaign with Servicio de Salud Ñuble, Asociación para la Asistencia y Protección de

Animales de Arequipa, Asociación Prisma, Lions Club, Senior Citizen program of Municipality of Miraflores,

Fundación Corazón en Parches, Fundación Romelio, Kiwanis Club and Fundación Onda de Sonrisas.


/ 83

Facts and figures on our donations TO INSTITUTIONS THAT WORK TO MAKE THE WORLD A BETTER PLACE>

Ch$167.885.629

27 instituciones

Total contributions and monetary donations to foundations and social causes in 2015

In total, 27 institutions benefited in Chile, Peru and Colombia.


/ 84

TWO EXAMPLES OF OUR FINANCIAL CONTRIBUTIONS DURING 2015

/ Parque Arauco Kennedy donated funds to implement special rooms in four Children’s Hospitals in Santiago, Chile:1.

Last December we launched our “Meaningful

Christmas” drive, which involved different activities

in several of our shopping centers around the

country.

Our customers and visitors from a variety of

locations participated in the campaign. In parallel,

Parque Arauco Kennedy took on the additional

challenge of donating a certain amount of money

to four Santiago children’s hospitals, to be used for

rooms and infrastructure to support and improve

services and care for children.

Donations totaled Ch$40 million. As per our

agreement with each hospital, Parque Arauco will

donate a certain sum directly to each institution.

Each institution will then be responsible for

designing, implementing and completing its project.

This donation was meant to support a project that

is directly linked to the reality and needs of each

institution, based on the information gathered by

and work of each hospital’s team.

Through this process, the beneficiaries of this

campaign have made progress on designing

projects that are tailored to their needs and

maximize the final impact on the children who use

these public health centers every day.

TRANSFORMING THE AREA OUTSIDE THE CHILDREN’S SURGERY WARD:

DESIGNING WAITING ROOM FOR PEDIATRIC SPECIALTY APPOINTMENTS:

INFRASTRUCTURE FOR PATIENTS’ FAMILIES

This hospital decided to use the funds to redesign the area that hundreds of children

must pass through on their way to surgery.

The corridor was set up to simulate a jungle in an effort to relieve the children’s stress

and make them comfortable.

According to the hospital’s prior research, 85% of children surveyed wanted to see

animals and trees in this area before undergoing surgery

Every year, close to 96 thousand children from Santiago and other regions of Chile see

specialists at this hospital.

The project seeks to eliminate the need to wait in hallways and other uncomfortable

areas by providing a calm, specially designed place for children to await their doctor’s

appointment.

The new waiting room will have different areas for reading, crafts, games and movies.

This hospital receives a significant number of patients from outside Santiago.

This project aims to improve infrastructure for parents and family members who

accompany children undergoing lengthy treatments, which can last for days or

weeks.

Improvements will include sofas specially designed for resting located in rooms or

areas where children receive treatment.

At the time this report was being finalized, Félix Bulnes Hospital was still defining the

characteristics of the project to be funded by our donation.

To learn more about the

Meaningful Christmas Drives in our shopping

centers, please see page 89.


/ 85

/ Educational support in peru through the crea+ program2. Over 11,000 children have benefited from this institution’s work in different public

schools across Peru.

Crea+ provides educational intervention and support in vulnerable communities

through a professional volunteer program. More than 2,900 volunteers have donated

their time to develop activities and workshops to improve educational performance in

different Peruvian communities.

In 2015, the Villa El Salvador School was the beneficiary of this program thanks to

funding provided by our operation, MegaPlaza. In addition, Parque Arauco Peru

employees came together to sponsor 17 children in 2016 with classes and extra support

under the Crea+ methodology.

/ List of foundations to which we made monetary donations in 2015:

Quilicura firefighters, Corporación de la Cultura de la Municipalidad de San Antonio, DAR Chile, Corporación

Cultural de Estación Central, Hogar de Cristo, Unión Social de Empresarios Cristianos, Fundación Las Rosas,

Fundación Coordinadora por la Vida, Corporación Yo Mujer, María Ayuda, Fundación Chile Unido, Centro

de Estudios Públicos, Fundación Ronald McDonald, Sociedad Protectora de Ciegos Santa Lucía, Servicio País

Universidad Católica, Corporación Idea País, Corporación para Ciegos, Mano Amiga, Fundación Imagina -

Pequeños Negocios, Fundación Educacional Nocedal, Comunidad Los Pallines del Caserío de San Pedro del

Distrito de Pachacutec, Crea +, Fundación Carina de Santacoloma, Fundación Niños por un Nuevo Planeta,

IWOKA – Asociación Cultural del Café, Fundación Hope, Fundación Amigos de Foscal.


/ 86

Facts and figuresSOCIAL MARKETING IN 2015>

We hosted more than 190 free community activities, including: circus acts, cinema, art expositions, theater performances, concerts, workshops, contests and fairs.

More than 90,000 people participated in the activities held in our shopping centers in Chile, Peru and Colombia.

We hosted nearly 30 workshops on crafts, art for children, origami, painting, storytelling, music, caring for the environment and other topics.

Our 8 fairs we attended by at least 15,000 people.

We hosted more than 125 activities promoting a healthy lifestyle and exercise

More than 11,000 people participated in sports activities at our shopping centers

90.000 30

8 125

11.000

190free

activities

WORKSHOPS

ACTIVITIES

FAIRS


/ 87


/ 88

Close to 10,200 people have

participated in public chess matches

in our shopping centers in San

Antonio,

Quilicura and Estación Central,

in Chile—a clear indication that

community interest in this type of

activity is on the rise

Chess is a comprehensive discipline known to stimulate logical thinking, decision-making capacity, mathematical

skills, concentration and mental exercise.

For several years, we have offered different outreach programs that promote chess in the communities surrounding

some of our shopping centers.

Close to 10,200 people have participated in public chess matches in our shopping centers in San Antonio, Quilicura

and Estación Central, in Chile—a clear indication that community interest in this type of activity is on the rise.

Our most successful experience to date has been at our Arauco Estación shopping center, which is strategically

located in Santiago’s main train station, where thousands of people pass through daily.

Our chess boards—available in this location since 2014—have attracted children, families and senior citizens who

play chess in our food court every Sunday.

Nicolás Gutiérrez, director of the Chilean National Chess Federation, has coordinated this process, stimulating the

competition, teaching beginners and serving as judge in the 36 tournaments held in Arauco Estación, with the total

participation of 1,800 people in 2015.

Nicolás shared the following about the process:

“Many people tell me that they could never learn to play chess. They

have a preconceived notion that it must be really complicated. So when

we install the chess boards, lots of people start showing up. I start to

play and the crowd draws closer. The impact has been huge.”

In addition to the tournaments, a giant chess board is set up every Sunday afternoon in one of the most

frequented parts of Arauco Estación. Like a magnet, it draws crowds. As games get underway, crowd

participation is overwhelming and little-by-little people overcome their fear of playing chess.

The relevant impact of these initiatives lies in providing opportunities for people of different ages and from

different places and walks of life to interact on equal terms, sharing their skills around the chess board. In several

cases, young people who began as apprentices are now moving up in the rankings, which illustrates the positive

results of the process.

This is the type of activity that turns our shopping centers into spaces for social development. We want to

continue to build this type of relationship with the communities surrounding our operations.

PROMOTING CHESS AS PART OF LOCAL COMMUNITY OUTREACH PROGRAMS>

MAE Pendon Ajedrez 0,7x1,95 MT.pdf 1 05-02-16 15:26


/ 89

CHARITABLE INITIATIVESLEIN PARTNERSHIP WITH CUSTOMERS AND VISITORS IN PERU, COLOMBIA AND CHILE>

/ Over 1,000 people participated in the ecological run sponsored by parque lambramani in arequipa, peru:

For the second time, we sponsored the ecological run in conjunction with Asociación Civil Patrulla Ecológica,

which promotes a healthy lifestyle and awareness of the importance of protecting the environment and

preventing deforestation.

Over 1,000 participants ran 7.5 kilometers, crossing the finish line at Parque Lambramani. In exchange

for the registration fee, runners received a kit that included a plant, race supplies and a contribution to

Asociación Civil Patrulla Ecológica that covered planting and caring for one tree per participant.

We provided the awards for each race category, as well as support and publicity for the event.

A total of 2,500 trees were planted in deforestation prevention areas in Arequipa.


/ 90

AVAILABLE FOR PARQUE CARACOLÍ’S SOCIAL CAMPAIGN IN BUCARAMANGA>

This campaign was based on an idea that started in

Brazil and has been held in several different countries

under the name The Empty Project.

For eight weeks, we provide space and any necessary

equipment to make one of the stores in our shopping

center available so that customers and visitors can

drop off clothing or toys. Donations are picked up by

members of the benefiting charities every evening.

At dawn, the store starts out empty and the process

starts all over again. The clothing and other donations

are displayed as though they were for sale, thus

reassigning a value to the goods donated to the

institutions working with vulnerable communities.

The project also engages local celebrities, who work

with foundation representatives to host and manage

the store, to encourage participation and sensitize

those who visit the shopping center during this type of

campaign.

The regional press and the Proyex Group supported the

initiative in Bucaramanga .

Hernando Jiménez, director

of Fundación Romelio, shares

the impact of

The Empty Project:

In eight weeks, over 28,000 items of clothing and toys

were collected in this space, which was temporarily

transformed from a store into a place that symbolically

united the over 5,000 shopping center visitors who

participated in this different way of helping others.

The following institutions were beneficiaries:“Over 1,000 children and adults

who belong to our programs

will benefit from the donations

received through The Empty

Project, a social campaign that

made a significant impact on

our organization. Through

this activity, we increased the

visibility of our work, formed

alliances and found potential

partners or volunteers willing

to give their time for our social

cause.”

60m2


/ 91

Parque arauco chile celebrates A MEANINGFUL CHRISTMAS IN 2015>In December, we traditionally work with customers

and visitors to launch a campaign to support children

receiving help from foundations, social institutions or

care centers in Chile.

This year, our campaign was publicized through a variety

of media outlets. A significant amount of space was set

aside in our shopping centers to receive donations of

gifts for children from designated institutions.

Each shopping center set a goal for the number of gifts

its customers and visitors would provide and committed

to making up the difference if the goal was not met at

the end of the campaign.

As an additional donation, Parque Arauco Kennedy

committed to provide four special rooms for children in

the public hospitals that were chosen as beneficiaries of

the Meaningful Christmas campaign.

In addition, Arauco Quilicura added 980 celebration

dinners for children from the Aldeas SOS project.

The Meaningful Christmas campaign ended with our

employees, high performance athletes who joined this

activity, and some pre-registered customers distributing

gifts to children in these four hospitals.

Overall, we distributed 2,400 gifts. In many cases, we

surpassed the goal and were able to reach a greater

number of children than planned. The institutions the

benefited and the scope of the gift drives are detailed

below:

INSTITUTION GIFTS RESULTS

PARQUE ARAUCO KENNEDY

Hospital Félix Bulnes 200 261

Hospital Sótero del Río 729 527

Hospital Roberto del Río 177 262

Hospital Calvo Mackenna 160 258

ARAUCO MAIPÚ Fundación Sagrada Familia 360 360

ARAUCO QUILICURA Aldeas Infantiles SOS 410 410

ARAUCO SAN ANTONIO

Fundación Coanil 54 54

Aldea de niños Cardenal Raúl Silva Henríquez 48 48

Centro de Diagnóstico y Transición 28 28

ARAUCO CHILLÁN Corporación Llequén 235 235

For more information on Parque

Arauco Kennedy’s

donations to hospitals, see

page 82.


/ 92


/ 93

Chapter 7

ENVIRONMENTALLY SUSTAINABLE DESIGN AND OPEATIONS


/ 94

Sustainable construction and design MILESTONES AND PROGRESS >In December 2014, we achieved one of the most important property development

milestones in company history when we became the first company to earn LEED

certification for the design and construction of a shopping center in Chile.

Earning this certification, which is internationally renowned for its demanding

environmental standards, has made us industry pioneers in Chile. It was especially

significant for the project team that developed the Arauco Quilicura center. That

project’s original purpose was to test the procedures and standards that we were

already using in any type of construction. Thus, earning this certification confirmed

that we were already on the right track.

Peter Templeton (USGBC) presenting the LEED Silver - Core and

Shell certificate for the Arauco Quilicura shopping center

to Andrés Torreabla, CEO of the Chile Division and Fernando Aros,

Manager of Engineering and Projects at Parque Arauco Chile.

WHAT DOES LEED CERTIFICATION MEAN?

LEED is the acronym for Leadership in Energy and Environmental Design. In general, this certification was developed by the US

Green Building Council as a parameter that uses certain criteria to determine that a building or project was developed on the basis of

sustainable indicators.

This type of voluntary standard, applicable in any part of the world, is designed to challenge the building industry to develop

environmentally sustainable projects.

Different types of certifications are available. The following considerations or criteria were required to earn the Silver seal obtained in

our Arauco Quilicura project (Core and Shell):

Sustainable sites:

This considers, for example, the

potential for revitalization

of underused or abandoned land,

connectivity or proximity to public

transportation, the promotion of

alternative forms of transportation,

the protection or restoration of the

habitat and adequate rainwater

management and control in the

selected site.

Materials and resources:

Parameters that should

be considered in selecting

materials for a sustainable

building. For example, use of

materials that are recycled,

locally sourced, renewable

in the short term or have

some form of environmental

certification.

Water Efficiency:

This determines criteria for

efficient water use through

irrigation mechanisms,

selection of species in

landscaping and use of elements

with low water consumption.

Quality of the indoor

environment:

This includes parameters

such as ventilation systems,

temperature and acoustic

comfort, control of

environmental pollutants and

adequate lighting for users.

Energy and atmosphere:

This follows the ASHRAE 90.1-

2007 standard on efficient

energy use.

The project should demonstrate

a percentage of energy savings

over a baseline measurement,

in compliance with the standard.

In addition, it should ensure

appropriate use of building

systems in the future.

Design innovation:

Additional elements incorporated

into the project design to

complement sustainable building

construction.


/ 95

FOUNDED IN 1894, ASHRAE IS A TECHNOLOGICAL SOCIETY FOR THE BUILDING INDUSTRY WITH OVER 50,000 MEMBERS AROUND THE WORLD. THE SOCIETY AND ITS MEMBERS FOCUS ON BUILDING SYSTEMS, ENERGY EFFICIENCY, INDOOR AIR QUALITY AND SUSTAINABILITY WITHIN THE INDUSTRY. BASED ON ITS OWN DEFINITION, THROUGH RESEARCH, STANDARDS WRITING, PUBLISHING, CERTIFICATION AND CONTINUING EDUCATION, ASHRAE SHAPES TOMORROW’S BUILT ENVIRONMENT TODAY.

WHAT IS THE ASHRAE STANDARD?


/ 96

Sustainable features inTHE DESIGN OF ARAUCO QUILICURA, CHILE>

LOCATION AND LAYOUT: It is located next to the Quilicura’s main plaza, at a distance of 400 meters from 2 bus stops,

and has 80 bicycle parking spaces. To promote the use of ecological cars, it offers 21 preferential parking spaces for

these types of vehicles.

The project design includes a special plan to improve soil drainage through a system designed to mitigate any

effects of the building on the site’s original impermeability level.

ARAUCO QUILICURA IS LOCATED AT A POINT OF STRATEGIC CONNECTIVITY FOR THE COMMUNITY

5% of parking spaces are designated for

smart cars. In an effort to encourage use of

this type of transportation, these spots are in

prime locations.

406 Parking spaces, total

Transantiago bus lines

Bus stop 1 (257 meters)

Bus stop 2 (386 meters)

The project is 402

meters from 2 bus stops

serving 4 public bus lines

(Transantiago).

SPACES AND LOCATION FOR SUSTAINABLE MOBILITY:

Medical Center

Quilicura Plaza de Armas

Boulevard open to pedestrians

Municipality

Main public transportation routePublic school

80 bicycle parking spaces, divided between

three locations, and special shower area

available to users as needed

Shower zone

4


/ 97

The design also includes pedestrian walkways in the same areas used by the community prior to construction

for running errands or to reach the Municipality of Quilicura, located across from our shopping center.

WATER EFFICIENCY: Thanks to the inclusion of efficient systems for showers, toilets and kitchens, the design

showed at least 29.9% savings in consumption over the established baseline. It also included a controlled

irrigation system and landscaping with species with low water consumption needs.

ENERGY AND ATMOSPHERE: The project demonstrated potential energy savings of approximately 12.9% in

electricity costs. This includes LED lighting and a lighting management system that monitors lighting levels in

all common areas.

It also includes an efficient air conditioning system, with special equipment for the food court, administrative

offices and other common areas, where consumption is also monitored and controlled.

MATERIALS AND RESOURCES: The project’s first floor includes a designated 113 m2 recycling area. It also has

two areas with three containers each and a final waste compactor.

The project’s management plan for disposal of construction materials enables 75% of these materials to

be recycled or reused through a specialist company.

In addition, more than 43% of materials were provided by local suppliers (located within 805 kilometers

of the construction site).

Special areas and route for storing and

compacting waste. Three recycling zones

with separate containers.

Local species were chosen and landscaping was

designed to reduce sprinkler water usage by 64%

Vegetation Native to Central Chile

AstroemeriaAstroemeria sp.

Green SantolinaSantolina virens

Soapbark tree Quillaja saponaria

NandinaNandina sp.

Peumo Cryptocarya alba

LavenderLavándula angustifolia

Recycling areas

Compactor

Solid waste loading stations

Solid waste circulation route


/ 98

QUALITY OF THE INDOOR ENVIRONMENT: We implemented a plan to protect the environment during construction.

Among other initiatives, the plan included: cleaning equipment periodically, using a moist agent to remove

dust and clearing away accumulated water. We also worked with products that have a low-impact on air

quality. (All adhesives, sealants, coatings and paint were certified low-VOC). We do not use coolants with CFC,

which damage the ozone layer.

DESIGN INNOVATION: While the building’s certification is focused on design and construction, other elements

that boost sustainability were also considered. Many have already been described here and are directly

related to our performance. In addition, a manual containing recommendations was distributed to tenants

along with an additional measurement and verification system in order to maximize potential efficiency

throughout the shopping center.

araucoquilicura


/ 99

Examples of sustainable design IN PERU AND COLOMBIA DURING 20152015 >

This project is located on the outskirts of Lima at kilometer 32 of the Southern

Pan-American highway, in the Lurín district. Once constructed, the shopping

center will boast an area of more than 9,600 m2 and 12,829 m2 in parking lots.

The project has sustainable design elements that meet LEED standards. We would

specifically like to highlight two components:

1. Premium Outlet in Lurín, Peru

Applied to both indoor and outdoor areas and shops, based on international ASHRAE criteria. Parameters consider

efficiencies in air conditioning equipment with ecological HFC refrigerants. Glass with solar control was chosen

for shop fronts, based on studies that demonstrate that the use of this type of glass results in energy savings of at

least 21%, a value well above regular glass.

Finally, the building’s outer shell includes special 10-cm thermal insulation plates on the walls and roof.

1. DESIGN OF AN ENERGY-EFFICIENT SYSTEM:


/ 100

This involves several areas of work:

LANDSCAPING AT LURÍN OUTLETS - PERU

Drinking water treatment system:

Since this project is located in an area near

the ocean with no public potable water

system, it includes a system for extracting salty

groundwater. An inverse osmosis treatment

system was selected because it effectively

reduces salinity with low energy consumption

and operating costs.

Based on projections, the plant will have the

potential to generate approximately 3m3 of

potable water per hour.

Waste water treatment plant

Because there is no public sewage system in the

area, this treatment plant was designed with

a bio reactor. This system produces a second

network with treated greywater for use in

toilets, urinals and landscape irrigation systems,

creating a recirculation cycle that optimizes

water use. According to calculations, this plant

could help generate at least 50.14 m3 of the

water needed for these uses.

Water-saving mechanisms and intelligent

irrigation:

This includes using equipment with timed

flushes, urinals with sensors and efficient fittings

that enable programmed, differentiated use

based on consumption needs. The project

will use an irrigation network with automatic

controls and an automatic on/off drip system.

Sustainable landscaping:

To complement the rest of the water efficiency

measures, a landscaping model was designed

with species that do not need permanent

watering. Plants that are highly tolerant to local

climate were selected.

This proposal is the end result of a quest for a unified landscaping

project that involves several premises and parameters established by

the site and space.

Each volume was incorporated as a module and linked with all other

modules to create a single unit. Each module has a different image

but the same objective: to create large green areas using primarily

plants with low water needs.

In some modules, brown spaces were incorporated as paths between

one space and another. In others, they crossed the module. In all

modules, benches and outdoor furniture were incorporated into the

overall proposal.

INTERIORISMO LURIN

2. COMPREHENSIVE SYSTEM FOR EFFICIENT WATER USE AND TREATMENT:


/ 101

This project is being developed based on sustainable design criteria,

specifically: location and layout, use of materials, quality of the indoor

environment and design innovations.

The following are the most noteworthy among the specific sustainable

design elements:

This point involves several developments that con-

siderably reduce energy consumption. Notably,

the lighting system is entirely LED, resulting in

close to 40% more energy efficiency than tradi-

tional lighting devices. Along this same line, the

window dressing and architecture manuals given

to tenants include a section specifically addres-

sing technical recommendations on the use of

efficient devices and systems to be implemented

when setting up their shops.

Exterior materials include a special drainage

system for shopping center roofs and park designs.

The system will optimize use of rainwater for out-

door maintenance.

In concrete terms, this initiative will provide

approximately 20 m3 of water, collected daily

from the available network—40% of the shopping

center’s total normal daily demand.

1. EFFICIENT ENERGY USE 2. INNOVATIVE DESIGN AND FACADE MATERIALS

2.LA COLINA SHOPPING CENTER - BOGOTÁ, COLOMBIA


/ 102

The waste management plan is part of a compre-

hensive program that also involves other sustaina-

bility measures. It is carried out in conjunction with

a local construction company and in accordance

with the requirements Parque Arauco set forth at

the beginning of the project.

During the construction phase, waste management

includes documentation of all quantities and final

disposal as well as selecting materials that can be

recycled or recovered from landfills. By the end

of project development, we estimate that 75% of

materials will have been recycled or reused.

This system is designed to treat water that will be

later used for watering plants, urinals and toilets.

According to estimates, the rainwater treatment

plant could supply up to 40% of the water needed

to operate urinals and toilets on days of normal

traffic at the shopping center.

The La Colina shopping center project will include the investment, develop-

ment, and future maintenance of a large park adjoining the shopping center.

The park has public access areas that connect to main transportation routes

in the area, such as a bike lane.

The park will be well-connected, which will facilitate access for neighbors

and visitors from other parts of Bogotá. This space will complement existing

neighborhood parks, which together will consolidate a very significant public

network for the sector.

Before designing the park, we determined that the area where the project

is located includes a high percentage of children and a growing number of

senior citizens.

With this frame of reference, we designed the park as a space for gatherings

and interactions for different age ranges. It includes more than 6,600 m2

of native vegetation, which we hope will be the future habitat of birds and

other species.

This is intermingled with playground equipment, a pedestrian walkway and

athletic areas that cover at least 7,500 m2.

The outdoor exercise areas will be equipped with gym bars, exercise ma-

chines, and leg flex and hip swivel machines and complemented with chess

boards, water games and playground areas.

4. RAINWATER TREATMENT PLANT

5. . THE PROJECT INCLUDES OVER 13,000M2

OF PUBLIC PARK SPACE.

3. WASTE MANAGEMENT DURING CONSTRUCTION


/ 103

Additional considerationsIN PROJECT DEVELOPMENT>

Performance and efficiency indicators

FOR OUR SHOPPING CENTER OPERATIONS>

All our projects pass through an internal review and pre-feasibility phase, where, in addition to other

considerations, we account for environmental characteristics and try to minimize potential social and

environmental impacts.

We carry out our processes in compliance with local regulations. In many cases, we exceed basic

standards and voluntarily incorporate international standards in sustainable construction.

Because we are interested in building sustainable relationships with our neighbors and the communities

surrounding our projects, we provide opportunities for interaction and discussion during all stages of

shopping center development and operation.

For the teams that manage everyday operations at our shopping centers, proper use of natural

resources is a top priority.

Our sustainable project designs are complemented by the operating efficiency we are able to achieve.

Consequently, we have gradually begun measuring and managing indicators for energy and water

consumption, emissions and waste management. We have also undertaken initiatives aimed at using

and managing these resources efficiently.


11 meetings as of year-end 2015

16 meetings since construction

2014 2015

Total electricity consumption in kWh 138,351,406 144,331,399

Electricity consumption in common areas 50,578,071 50,564,468

Electricity consumption by tenants 87.773.335 93.766.930

Outlet Lurín, Peru:

ENERGY PERFORMANCE AND CONSUMPTION>

MEETINGS WITH CIVIC ASSOCIATIONS OR COMMUNITY REPRESENTATIVES DURING THEPROJECT DEVELOPMENT PHASE:

>

LA COLINA SHOPPING

CENTER, BOGOTÁ, COLOMBIA:


/ 104

It is important to note that while GLA (Gross Leasable Area) increased approximately 12.63% between

2014 and 2015, total energy consumption rose only 4.32%.

Since generators are necessary in areas that experience electrical instability and isolated blackout

incidents, we also measured generator fuel consumption.

SUCCESS STORIES

/ Changes to air conditioning systems

/ Optimization of cooling systems and replacement of lighting

526.9752014

582.8942015

The initiative began with modulation of the air conditioners in

Chile’s Parque Arauco Kennedy and Arauco Maipú.

The inverters optimize air conditioner operations, adapting

consumption to the real demand produced by thermal load. In

other words, the conditions adapt to the environment, making the

system much more efficient.

At Parque Arauco Kennedy, the project saved 871,961kWh/hour in

2015, the equivalent of reducing CO2 emissions by 340.93 tons.

Meanwhile, at Arauco Maipú 124,325 kWh/ hour were saved in

the last three months of 2015, the equivalent of reducing CO2

emissions by 48 tons.

The chilled water air conditioning equipment works as water passes

through a system of towers and chillers. In recent years, cooling

systems have been replaced, generating significant energy savings

in various shopping centers.

For example, at Peru’s Larcomar shopping center, this type of

improvement generated efficiency of more than 220 kWh/hour

in 2015—the equivalent of reducing CO2 emissions by at least 60

tons.

In addition, lighting was replaced with LED technology. At our

Lambramani shopping center in Peru, power consumption in

common areas in 2015 was down at least 20%

FUEL CONSUMPTIONIN LITERS

/ Examples of energy efficiency initiatives in 2015:


/ 105

Rainwater collection:

Given the climate in the region, Parque Arboleda was built with a rainwater treatment plant in order to

harness this natural resource.

The 2014 and 2015 rainwater collection figures are for this shopping center. We hope to considerably

increase this figure with projects like Lurín, where desalinized water treated in a plant within the

shopping center will be used from the time operations begin.

It is also worth noting that 100% of our shopping centers have systems for treating waste water from

the food courts and restaurants. All our waste water is disposed of through the public sewage system, in

accordance with each country’s regulatory requirements.

Total water consumption m3

Water withdrawn from municipal supply

Rainwater treated for use in the shopping center

Total water consumptionm3

Water withdrawn from municipal supply

Rainwater treated for use in the shopping center

1.456.520

1.446.520m3

10.000m3

1.566.930

1.556.220m3

10.710m3

WATER MANAGEMENT AND CONSUMPTION>

2014>

2015>


/ 106

parque arauco kennedy - chile

parque lambramani - Peru

larcomar - Peru

parque arboleda - colombia

Efficient watering system.

This initiative, which rebuilt one of the shopping center’s green walls, grouped plants by their watering needs and replaced

manual watering with an automated drip system.

This system is programmed seasonally to water for short intervals during the day and at night, depending on the

temperature and the needs of each plant species.

Compared to manual watering, the new system generated savings of approximately 130 liters of water per day, despite a

15% increase in vegetation in the same space.

Changes to restroom services in Lambramani

Old urinals were replaced with waterless models, saving 160 liters of water for each new fixture. Overall, the shopping

center’s restroom water consumption fell 25% in 2015.

In 2015, joint efforts with the car washing company saved more than 178,000 liters of water at Larcomar.

In 2015, we worked with the company that washes cars in the parking lots of Larcomar to implement a new system.

Compared to the traditional method, the new technology reduces water consumption by up to 70%, saving more than

178,000 liters of water in 2015.

On average, 10,000m3 of rainwater are reused in the restrooms at Parque Arboleda in Pereira.

Here, improvements in efficiency stem from a rainwater treatment plant that is part of the shopping center’s original

design. Given the city’s climate, the plant has an annual collection capacity of approximately 10,000 m3—about 20% of the

facility’s annual sanitation demand.

/ Examples of water efficiency initiatives in 2015:


/ 107

Direct emissions(scope 1)1


Intensidad de emisión de GEI



Intensidad de emisión de GEI

531

12.628

36

592

12.316

33

1 Scope 1 refers to the liters of fuel consumed by our shopping centers in Chile and kilograms of coolants released into the atmosphere.2 Scope 2 refers to emissions related to electricity consumed in common areas at our shopping centers in Chile.

GREENHOUSE GAS EMISSIONS AND MEASUREMENT >

In Chile, we have been working with a specialized consulting firm to measure our carbon footprint. The

following are some of our direct emissions figures (measured in tons of CO2 equivalents):

2014>

2015>


/ 108


/ 109

Chapter 8

OUR TEAM,THE KEY TO GROWTH


/ 110

Excellence and happiness,THE FOUNDATION OF OUR CORPORATE CULTURE>We know that the people on our team play an essential role in the growth and sustainable progress of our

business. That is why we strive to build a culture in which our actions are rooted in two concepts: excellence and

happiness.

These concepts underpin the Corporate Human Resources Area’s strategy and provide a focus for processes like

selection, performance and professional development everywhere we operate.

EXCELLENCE

HAPPINESS

All our policies aim to attract the best talent to do an excellent job. These efforts are evident throughout the entire human resource management cycle, beginning with recruiting.

Happiness is directly tied to closeness, respect and concern for people. Along with ensuring that all our actions have a purpose, this translates into good relationships and a work environment that endeavors to promote personal well-being.



/ 111

Our recruiting and selection processes are very rigorous. We are interested in attracting the best talent, but we

also pay special attention to finding people whose abilities and values are aligned with our corporate culture.

We choose people who are focused on the importance of the work environment, collaboration, team excellence

and caring for people. Consequently, our recruitment process is directly related to observing the candidates’ skill

profiles in these areas.

The overall company policy is to offer indefinite contracts. However,

exceptions are analyzed on a case-by-case basis and some fixed-term

contracts are offered.

THIS IS OUR TEAM

Parque Arauco employees in

Chile, Peru and Colombia518

chile perU colombia total

Total workforce

Number of men

Number of women

239

131

108

228

136

92

51

24

27

518

291

227


/ 112

/ Parque arauco’s consolidated data shows that women comprise 43.8% Of our workforce. The percentage of women, by country, is as follows:

45%

chile Peru colombia

40% 53%

THE TOTAL PERCENTAGE OF WOMEN HOLDING BOARD OR SENIOR MANAGEMENT POSITIONS IS 11%


/ 113

/ Percentage turnover:

/ Top management positions Occupied by women are broken down as follows:

6 WOMENchile: 2Peru: 2colombia: 2

Company Total

Company Total 2014

Company Total 2015

General annual turnover

Annual turnover, voluntary resignations

Annual turnover, other(excludes voluntary resignations)

20,27%

11,55%

8,66%

20,42%

9,19%

11,23%

OUR EFFORTS TO WORK WITH PEOPLE WHO LIKE WHAT THEY DO AND THEIR WORK ENVIRONMENT ENABLE US TO ATTRACT AND RETAIN TALENT FOR THE ORGANIZATION


/ 114

Promotion AND INTERNAL DEVELOPMENT>Internal promotion is one the primary drivers of professional

development at Parque Arauco. In fact, any time there is a vacancy,

an internal analysis must be conducted to determine whether the

profile and skills necessary for the position can be found within our

team. This company guideline creates opportunities for internal

promotion and prioritizes professional development.

All internal candidates must undergo an evaluation to ensure that

the decision to promote internally is objective and correct, both for

the candidate and in terms of organizational objectives. In 2014,

there were 38 internal promotions. This figure was 39 in 2015.

/ Performance-based development:

In order to provide opportunities that are truly useful to our

employees, we conduct annual 360° performance evaluations that

include comprehensive questionnaires.

Employees evaluate themselves and receive feedback from their

supervisor(s) as well as two or more peers. For team leaders,

the evaluation also includes feedback from individuals directly

supervised by them.

This objective, organization-wide process reveals strengths and

growth opportunities for our team members.

The 2015 evaluation and measurement tool was available to

100% of the employees in Chile and Colombia. In Peru, 60% of our

employees participated in the process.1

This skill assessment is one of the factors considered in the

Company’s professional development decisions. Parque Arauco’s

four approaches to internal development are:

1. Internal identification of training needs

2. Ongoing training

3. Internal mobility process

4. Financial aid

Each area, with the aid and supervision of the Human Resources Area, is

responsible for identifying training needs.

A comprehensive approach meant to increase our employees’ potential for

continued employability. Parque Arauco offers fully funded opportunities, like

English classes, Microsoft Office training and updates on specific matters.

As previously noted, before beginning any external recruitment process, we

search for candidates internally.

Each year, employees that have been with Parque Arauco for at least a year may

apply for financial aid for university or technical studies. These scholarships are

conditioned only upon high academic performance.

1 Corporate programs and initiatives include all employees in Peru, with the exception of MegaPlaza employees.

1


/ 115

/ Scope of training

2014 2015

Total hours of training1 Total hours of training1

Total employees trained

Total employees trained

Total workforce Total workforce

Training hours per employee

Training hours per employee

Percentage of employees trained

Percentage of employees trained

8.532 6.228

170 130

443 518

19 12

38% 25%

1 The figures for training hours per employee and percentage of employees trained are calculated on the basis of the entire workforce. However, training activities in Peru were not recorded


/ 116


A training success story: Our In-CompanyEnglish Program in Chile, is offered tooptimize and strengthen our team members’ ability to communicate in English. It includes in-office classes during working hours and requires only that the employee’s supervisor approve his/her attendance.

Concern for health AND WELL-BEING>In line with our focus on people, we assign high importance to prevention, well-being and self-care among

team members. As a result, we monitor figures related to those issues in the places where we operate.

In 2014 and 2015, 100% of our workers returned after maternity leave.

In accordance with the labor and safety legislation in each country where we operate, 100% of our

employees are covered by health and safety committees. These are broken down as follows

chile

Peru

colombia

3 Joint Committees on Workplace Safety

3 Committees on Work Safety and Health

3 Workplace Relations Committees

(Bogotá, Bucaramanga and

Pereira)

1 Joint Committee on Safety and

Health in the Workplace (COPASS)

in Bogotá and a representative

that performs COPASS functions in

the rest of the cities

The Company also has a unit staffed with specialized professionals who manage the risks associated

with our business and assess new facilities and activities. These professionals are also trained in

prevention and occupational health.

There were no fatal or serious accidents our employees in 2014 and 2015.


/ 117

Our employee benefits include several that

reflect our concern for offering opportunities and

conditions that promote the all-around well-being

of our team members and their immediate family

members.

Full or partial coverage of premiums for group

health, dental, life and catastrophic insurance.

Preventative medical and eye check-ups: Sporadic

campaigns are held to examine and prevent issues

associated with obesity, tobacco consumption

and general eating habits. We have also hosted

vision campaigns that include special discounts on

corrective lenses.

Bereavement leave, which grants seven days of

paid leave for the death of a spouse or child and

three days for the death of a parent or sibling

Five paid personal days a year, to be used

as needed with authorization from direct

supervisor.

Fruit and healthy snack baskets: Twice a week,

we provide employees with fresh fruit during the

workday. Employees are also given a monthly

subsidy for use in vending machines that offer

water, juice, dried fruit and nuts and other healthy

products.

Paternity leave policies allow flexible scheduling for

fathers during the month following their child’s birth.

Five days off for marriage.

Sports activities that vary by country: yoga, hikes,

bicycle rides, soccer tournaments and others.

Special agreements and discounts with health cen-

ters, optical stores, pharmacies and gyms. These

vary by country.


/ 118

/ Other benefits:

In 2015, we gave our employees more than Ch$ 690,000,000 in financial benefits. This figure includes elements like:(Tax-free remuneration.)

FINANCIAL AID FOR CHILDREN’S EDUCATION

MATERNITY/PATERNITY BONUS

A BONUS FOR THE NATIONAL HOLIDAYS

MARRIAGE BONUS

CLOTHING DURING SPECIAL SEASONS

MEAL STIPEND

GIFTS FOR MOTHER’S DAY AND OTHER CELEBRATIONS

FINANCIAL AID FOR EMPLOYEES’ EDUCATION

DENTAL AND VISION COVERAGE

CHRISTMAS BONUS

BONUS FOR THE BIRTH OF A CHILD

TRANSPORTATION STIPEND

BIRTHDAYGIFTS


/ 119

Well-being and celebrations,IN OUR DNA>We are careful to not let important dates go unnoticed. Since frequent celebrations brighten and

complement the day to day, celebrating a birthday, a special date or an important accomplishment is part of

our internal culture.

Birthdays: We make the day special, decorating the employee’s work space and giving a gift or time off

to celebrate with family.

Frequent contests: In order to promote camaraderie and happiness, we hold Intranet contests with

questions on culture, Parque Arauco’s values or current events (for example predicting results for The

Oscar Awards), where gift cards, tickets to movies or events, chocolates and other prizes are awarded.

Team achievements: Each area is assigned a special budget for celebrating important company and

team accomplishments. Area leaders can use these funds to take their teams out for lunch, happy hour

or dinner.

FEnd-of-year parties: The end-of-year party is undoubtedly our biggest celebration. This enormous

undertaking requires creativity and organization in each of the countries.

Fun Fridays: On Fun Fridays—a Parque Arauco institution for some time—we do something special for

our employees, just for the sake of having a good time.


/ 120

Our work environment, THE TRADEMARK THAT EARNED US A PLACE AMONG THE BEST PLACES TO WORK>We foster and measure a good work environment in Chile, Peru

and Colombia with several initiatives, all of which are tied to the

foundations of our corporate values: excellence and happiness.

The following table shows the change in perceptions of the work

environment in Chile and Colombia. Given the small size of our

operations in Colombia, it is measured using the same survey,

process and indicator as Chile: The Great Place to Work survey.

In 2013, we participated in the small and medium company

category, but in 2014 and 2015, we measured ourselves against

the standards for major companies. In that segment, we placed

41st and 39th, respectively, on the ranking of the best places to

work.

/ Work environment indicators for chile and colombia (measured on the same survey)

2014 2015

of employees are satisfied

of employees participated in the survey

of employees participated in the survey

of employees are satisfied

79%

73%

80%

89%

Peru’s work environment has been surveyed independently of Chile and Colombia for some time. We have managed to remain within the best companies to work in that country as well, placing 14th and 11th in 2014 and 2015, respectively.


/ 121

What is Great Place to Work?

Great Place to Work is

an organization that

conducts diverse analyses

of business management,

leadership and

organizational climate.

We participated in the

annual process, which

uses a methodology

that has been applied to

numerous companies with

employees in different

parts of the world and

operations in different

industries.

Diversity, respectAND EQUALITY>We are respectful. We show openness and the inherent value our organization sees in every individual with

concrete action and without any form of discrimination.

Our Code of Conduct and internal regulations establish preventative and corrective measures as well as

procedures for addressing discriminatory conduct.

In 2015, two isolated internal situations related to diversity and respect were reported. They were

addressed and resolved in accordance with the Company’s pre-established methodology, which

stipulates that any situation or deviation related to these issues be addressed and resolved through

formal channels.

The appropriate internal bodies have investigated and are in the process of finalizing the report, which

will announce the consequences and establish measures to avoid recurrence.

In parallel, there were no complaints regarding labor practices by the Company’s only union—in Chile,

where 20% of the employees are members.

Throughout the organization, respect and openness are cultivated by deep-seated aspects of our

organizational culture: willingness to listen and open, transparent communication across all levels and

locations.


/ 122

360° performance evaluations provide comprehensive, participative analysis of each employee,

providing an opportunity to express opinions or address situations—anonymously, if necessary—

that are part of important feedback as well as the human resources area’s monitoring of each team

member.

The adaptation interview is another opportunity to monitoring the integration process for new team

members. The interview takes place three to six months after the employee joins the Company. The

idea is to address any situation that has the potential to become complicated and to foster trust and

openness in order to facilitate the induction of new team members.

We hold randomized group meetings. This contact between different levels and areas of the Company

provides an opportunity to exchange information and answer questions.

Through our anonymous reporting hotline, EthicsPoint employees and other stakeholders can report

violations of ethics, integrity or values within the Company.

Para más información sobre el EthicsPoint y

nuestro Comité de Ética vaya a la Pág. 37.

COMPENSATION AND COMPETITIVENESS

We strive to meet the demands of a globalized, competitive labor market. In terms of compensation, we

use special tools to ensure we are safeguarding internal fairness and offering competitive compensation.

Our compensation model is based on Global Grading Systems (GGS) standards. This model accounts for

general aspects that define the type or characteristics of the organization, for example: operating flows

and internationality.

A survey of criteria like functional knowledge, business knowledge, leadership, autonomy, problem solving,

nature of impact and interpersonal skills is used to implement the system. Then, three criteria are applied

to establish internal levels: authority, responsibility and influence. All these criteria are added together in

order to determine the level and market compensation for the position.

Finally, in terms of salary differences between sexes, it is important to note that there is no salary gap

between men and women among new hires. Men and women earn exactly the same salary when they are

hired for positions with the same characteristics. With time, differences may arise as a result of elements

considered in determining compensation, but never as a result of gender discrimination. In some cases,

like among executives in Chile, the differences favor men; other times, like among professionals in Peru,

they favor women.

Shaping a culture OF LISTENING AT PARQUE ARAUCO>


/ 123

Chief Executives: Includes first and second tier management positions in all countries.

Senior Managers: Includes deputy managers and center managers.

Area Managers and Professionals: Includes area heads and all professionals and technicians that, given

their specializations, are at the heart of our business: managing shopping centers. This category comprises

55% of the Company’s total workforce.

Non – Management: This category includes all support personnel and those with lower education levels or

less operational responsibility.

Colombia does not have employees in the non-management category.

/ Explanatory notes:

Company Total

chilePerucolombia

Senior Managers

Chief Executives

Area Managers and Professionals

Non - Management

89%105%

116%60%

101%68%

102%78%

90%

102%

98%

97%

93%

90%

-

92%

The ratio of average base salary for women relative to men, throughout the entire company, is as follows:

Remunerations IN 2015>


/ 124


/ 125

Para conocer el detalle de la definición y contenidos

materiales vaya a la página 27.

This document contains information for the period between

January 1 and December 31, 2015. It reports Parque

Arauco’s practices on material aspects (relevant issues) of

sustainability and will be published annually from this date

forward.

The information presented herein is based on the

Global Reporting Initiative’s G4 standard Core option. It

also considers the Construction and Real Estate Sector

Supplement, specifically the additional information

associated with the scale of the organization and CRE8 on

sustainability certification for new construction.

The Corporate Sustainability Area was responsible for defining the content of this report, with support and

contributions from the Company’s different operating areas, which supplied information for each indicator.

In terms of scope, this document includes information from Parque Arauco’s operations, including its offices in

Santiago, Chile, and operations belonging to the Chile, Peru and Colombia divisions.

The indicators that include monetary figures were calculated using the 2015 average exchange rates listed

below:

Ch$/USD: $ 654,89

PEN/USD: $ 3,18

COP/USD: $ 2.745,02

In 2015, a position was created to lead and develop a consolidated sustainability strategy for the Company.

This position reports to the Corporate Finance Division and collaborates with other areas and divisions to

articulate integrated, organization-wide plans and targets associated with economic, social and environmental

factors.

Any questions or comments about this publication may be directed to Ximena Bedoya, Head of Sustainability

Parque Arauco ([email protected]) or Eduardo Pérez Merchant, Corporate Finance Manager (eperez@

parauco.com).

About the report >

/ Report features


/ 126

GRI Table

Indicator no

Brief descriptionOf indicator Pages

G4-1

Statement from the most senior decision-maker of

the organization about the relevance of sustainability

to the organization and the organization’s strategy for

addressing sustainability.

6

G4 -2Description of the organization’s key impacts, risks, and

opportunities.40 y 41

G4-3 Name of the organization Portada

G4-4 Primary brands, products, and services. 17

G4-5 Location of the organization’s headquarters. 123

G4-6 Number of countries where the Company operates. 16

G4-7 Nature of ownership and legal form. 30

G4-8 Markets served. 16

G4-9

Scale of the organization.** Specific/additional information on occupancy rates or percentages and properties segmentedby country or shopping center.

13

G4-10 Total number of employees by employment contract and gender 109

G4-11Percentage of total employees covered by collective

bargaining agreements.119

G4-15

List externally developed economic, environmental and

social charters, principles, or other initiatives to which the

organization subscribes or which it endorses.

25

G4-16

List memberships of associations and national or

international advocacy organizations to which the

organization belongs.

25

Perfil de la organización


/ 127

G4-24Provide a list of stakeholder groups engaged by the

organization.24

G4-25Basis for identification and selection of stakeholders

with whom to engage24

G4-26Organization’s approach to

stakeholder engagement.24

Stakeholder engagement

G4-28 Reporting period. 123

G4-29 Date of most recent previous report (if any).This is

the Company’s first report.

G4-30 Reporting cycle. 123

G4-31Provide the contact point for questions regarding the

report or its contents.123

G4-32 GRI content index. 124

G4-33Organization’s policy and current practice with regard to

seeking external assurance for the report.

Not externally audited.

Report profile

G4-18Explanation of the process for defining report content and

the Aspect Boundaries.26

G4-19 List all the material aspects. 27

G4-20For each material aspect, report the Aspect Boundary within

the organization.27

G4-EC1

Direct economic value generated and distributed, including

revenues, operating costs, employee wages and benefits,

donations and other community investments, 18 retained

earnings, and payments to providers of capital and

government

18


/ 128

G4-34Governance structure of the organization, including

committees of the highest governance body.30

G4-35

Process for delegating authority for economic,

environmental and social topics from the highest

governance body to senior executives and other

employees.

33 y 34

G4-36

Report whether the organization has appointed an

executive-level position or positions with responsibility

for economic, environmental and social topics, and

whether post holders report directly to the highest

governance body.

123

G4-38Composition of the highest governance

30 body and its committees.30

G4-39Report whether the Chair of the highest governance body

is also an executive officer. 30

G4-40Nomination and selection processes 30 and 32 for the highest governance body and its committees.

30 Y 32

G4-42

Highest governance body’s and senior executives’ roles

in the development, approval, and updating of the

organization’s purpose, value or mission statements

strategies, policies, and goals related

to economic, environmental and social impacts.

33

G4-46Highest governance body’s role in reviewing the

effectiveness of the organization’s 33

G4-56

Describe the organization’s values, principles, standards

and norms of behavior such as codes of conduct and codes

of ethics.

36 y 37

G4-57

Internal and external mechanisms for seeking advice on

ethical and lawful behavior, and matters

related to organizational integrity,

such as helplines or advice lines.

37

Corporate governance, ethics and integrity


/ 129

G4-58

Internal and external mechanisms for reporting concerns

about unethical or unlawful behavior, and matters

related to organizational integrity, such as escalation

through line management, whistleblowing mechanisms

or hotlines.

38

G4-SO4Policies and procedures for training and communication

in the fight against corruption36

G4-PR5Results or key conclusions of

customer satisfaction surveys56

G4-PR7Total number of incidents of non-compliance

with regulations and voluntary codes concerning 65

G4-PR8Total number of substantiated complaints received

concerning breaches of customer privacy.65

Marketing communications and consumer relations

G4-12 Describe the organization’s supply chain. 68

G4- EN32Percentage of new suppliers that were screened

using environmental criteria.75

G4-LA15Percentage of new suppliers

subject to impact assessments for labor practices71

G4-HR4

Operations and suppliers in which employee rights to

exercise freedom of association or collective bargaining

may be violated or at significant risk.

Measures taken by the organization in the reporting

period intended to support rights to exercise freedom of

association and collective bargaining.

72

G4- SO9Percentage of new suppliers that were screened

using criteria for impacts on society.71

Supplier and contractor relationships


/ 130

G4-SO1

Percentage of operations with implemented

local community engagement, impact

assessments, and development programs.

78

G4-S06

Total monetary value of financial and in-kind

political contributions made directly and indirectly by the

organization by country.

81

G4-EC7Extent of development and impact of significant

infrastructure investments and services supported.94

Society and community relations indicators

G4-EN3 Direct energy consumption by primary energy source. 101

G4-EN6Energy saved due to conservation and improvements in

efficiency.102

G4-EN7

Initiatives to provide energy-efficient or renewable

energy based products and services, and reductions in

the energy requirements as a result of these initiatives.

94,97,99 and 102

G4-EN8 Total water withdrawal by source. 103

CRE8

Type and number of sustainability

certification, rating and labeling schemes for

new construction.

92

G4-EN10 Percentage and total volume of water recycled and reused. 103

G4-EN15Total direct and indirect greenhouse gas emissions by

weight. (Scope 1).105

G4-EN16Total direct and indirect greenhouse gas emissions by

weight. (Scope 2).105

G4-EN22 Total water discharge by quality and destination. 103

G4-EN27Extent to which environmental impacts of products and

services have been mitigated during the reporting period.94,97,102 and 104

Indicadores ambientales


/ 131

G4-LA1

Total number and rates of new employee hires and

employee turnover by age group, gender and region

(location).

109 and 111

G4- LA2

Benefits provided to full-time employees of the

organization not provided to

temporary or part-time employees, by significant locations

of operation.

114,115 and 116

G4-LA3 Return to work and retention rates after parental leave. 114

G4- LA5Percentage of total workforce represented in formal joint

management-worker health and safety committees 114

G4-LA9

Report the average hours of training that the

organization’s employees have undertaken during the

reporting period.

113

G4- LA10

Programs for skills management and lifelong

learning that support the continued employability of

employees and assist them in managing career endings.

114

G4- LA11Percentage of employees receiving regular performance

and career development reviews..112

G4-LA14 Ratio of basic salary and remuneration of women to men

for each employee category.121

G4- HR3 Total number of incidents of discrimination and corrective. 119

Labor indicators

Nexos comunicacionesEditing

DA Diseñadores AsociadosDesign

Thomas WeddervilleShutterstockParque Arauco Photo BankPhotography

Ograma digitalPrinting

sustainability report · sustainability report 2015 / 8 we have made progress toward making parque...

Documents