TNFD Recommendations
At FUNO®, we recognize the impact of our activities on the environment and are committed to protecting biodiversity as a key action to fight climate change.
We have a Biodiversity and No Deforestation Policy that formalizes our goal of achieving a net positive impact on ecosystem conservation and deforestation prevention by 2050.
In accordance with this commitment, all of our developments are located on already converted lands, meaning no habitats were transformed. However, some of our properties are located near or within areas of biodiversity value, such as mangroves or even protected natural areas (PNAs).
To contribute to the care and preservation of the environment, as well as to the improvement of the landscape around our properties, at FUNO® we carry out corporate reforestation and help civil society organizations with regeneration, reforestation, and environmental care projects.
TNFD Recommendations
We are signatories of the Task Force on Nature-related Financial Disclosures (TNFD), demonstrating leadership and positioning ourselves as the only signatory FIBRA in Mexico and one of the first three companies in the country to do so. Below, we describe the actions we have taken to address the TNFD recommendations.
GOVERNANCE
The oversight of nature-related risks, impacts, and opportunities is integrated into FUNO® governance through the Sustainability Committee, which reports to the Technical Committee. This body leads the onitoring of environmental management and natural capital across our real estate portfolios, assessing progress in biodiversity, ecosystem services, and risk anagement. Reports, prepared by the Sustainability Department with support from operational areas, enable informed strategic decision-making. This approach allows us to incorporate environmental considerations in investments, acquisitions, and operations, while also fostering an organizational culture that values the integration of nature into decision-making.
The Sustainability Department, in coordination with the Operations, Procurement, and Finance areas, leads the integration of environmental criteria into strategic planning. At FUNO®, key risks and dependency on water, air quality, and climate regulation are identified, and mitigation and adaptation measures are then proposed. Likewise, respect for human rights is a major priority and consultation with local and Indigenous communities takes place when our activities interact with their territories. Transparency, accountability, and ongoing dialogue with key stakeholders are essential to reinforcing responsible and inclusive management, aligned with a sustainable and regenerative economy.
STRATEGY
FUNO®, is in the process of identifying and assessing the main dependencies, impacts, risks, and opportunities related to nature, considering short-, medium-, and long-term time horizons. This analysis is based on the LEAP (Locate, Evaluate, Assess, Prepare) approach proposed by the TNFD.
As a leading real estate trust, at FUNO® we recognize that our operations depend on key natural resources and healthy urban environments. For this reason, environmental criteria has been integrated into our strategy —from project planning to operational management. These actions include selecting locations with lower exposure to risks, using efficient technologies, and incorporating green infrastructure. Sustainable practices are also promoted throughout our value chain and the development of transition plans toward a low-carbon and nature-positive economy.
In addition, FUNO® has begun assessing the resilience of our strategy against various environmental risk scenarios. This analysis considers biodiversity loss, water stress, extreme weather events, and regulatory changes related to ecosystem conservation.
RISK AND IMPACT MANAGEMENT
Processes have been developed to identify, assess, and prioritize nature-related risks and opportunities both across our direct operations and our value chain, aligned with the LEAP approach of the TNFD.
At the property level, our dependency on water and climate, and impacts such as waste generation and resource consumption are all analyzed. Within the value chain, environmental risks among suppliers and tenants are assessed, promoting better practices through ESG questionnaires, contractual clauses, and environmental training.
Environmental performance is consistently monitored with key indicators such as water consumption, emissions, and energy efficiency. These data points are included in reports and complemented by audits and feedback from key stakeholders
Our Sustainability Committee integrates nature-related risks into strategic decision-making matrices by evaluating their potential impact. This approach strengthens the ability of FUNO® to anticipate risks, adapt effectively, and advance toward a more resilient and sustainable business model.
METRICS AND OBJECTIVES
FUNO® has defined key metrics to monitor our environmental performance in line with our sustainability strategy and risk management approach. These tools support informed decision-making, strengthen operational resilience, and drive more efficient environmental management.
Our main metrics include water consumption and efficiency, energy use and the share from renewable sources, GHG emissions (Scopes 1 and 2, with Scope 3 in progress), environmental certifications, and exposure to physical risks. Also tracked is environmental compliance as well as identifying properties located in critical zones. These metrics are reviewed by the Sustainability Department and reported to the Sustainability Committee to establish continuous improvement targets.
In addition, there are specific metrics used to assess our dependencies and impacts on ecosystems, such as regional water stress, carbon footprint, waste generation, and access to ecosystem services. These tools help us identify critical areas and adjust operational actions accordingly.
Clear environmental goals have been set, and our performance against these objectives is reviewed annually and disclosed in comprehensive reports submitted by FUNO®. There are also periodic review mechanisms to adjust goals in response to technological, regulatory, and environmental risk developments —thereby enabling our path forward toward a more resilient, efficient operation aligned with a nature-positive economy.