ON OUR WAY TO THE GREAT CHANGE SUSTAINABILITY AND ANNUAL REPORT 2019 Sustainability and Annual Report 2019 Lima Airport Partners S.R.L.
Lima, May 2020
General edition and GRI Standards application: Responde SAC www.responde.pe CONTENTS
THE BEST AIRPORT IN CEO MESSAGE MAIN MILESTONES IN SOUTH AMERICA p.06 2019 p.04 p.08
ONGOING TRANSFORMATION p.09
WE ARE LIMA AIRPORT PARTNERS (LAP) JORGE CHÁVEZ INTERNATIONAL AIRPORT p.10 p.18
OUR PERFORMANCE p.26
ETHICS AND CORPORATE EXCELLENCE EFFICIENT AND LET’S GROW WE PROTECT OUR OUR TEAM MAKES GOVERNANCE SERVICES RESPONSIBLE OPERATION TOGETHER ENVIRONMENT THE DIFFERENCE p.27 p.30 p.41 p.58 p.63 p.73
ADJUSTMENT TO STANDARDS p.85
ABOUT THIS REPORT OUR MATERIAL ISSUES LIST OF GRI CONTENTS GLOBAL COMPACT p.86 p.87 p.88 p.98 Amsterdam Londres
París Montreal
THE BEST AIRPORT Toronto IN SOUTH AMERICA Newark New York Barcelona CEO Madrid MESSAGE Los Ángeles Atlanta MAIN MILESTONES Dallas IN 2019 Houston Orlando ONGOING Fort Lauderdale TRANSFORMATION Miami
La Habana OUR PERFORMANCE Cancún Ciudad de México ADJUSTMENT Montego Bay Punta Cana TO STANDARDS San José THE BEST San Salvador
Cartagena AIRPORT IN Panamá Caracas Medellín Bogotá SOUTH AMERICA Cali Quito 102-7 Guayaquil
La Paz Brasilia PRIVILEGE EXCELLENT Santa Cruz
GEOGRAPHICAL WEATHER Calama Rio de Janeiro LOCATION CONDITIONS Antofagasta Salta Asunción Sao Paulo Tucumán Iguazú IN THE CENTER OF ALL YEAR LONG Mendoza SOUTH AMERICA AND AT SEA LEVEL Córdoba Porto Alegre
Santiago Rosario Montevideo
Buenos Aires Concepción
SUSTAINABILITY AND ANNUAL REPORT 2019 04 FIGURES OF THE YEAR
THE BEST AIRPORT IN SOUTH AMERICA
CEO 0.20 FREQUENCY 50 DIRECT US$2,685.32 MESSAGE INTERNATIONAL RATE DESTINATIONS MILLION LOST TIME ACCIDENT TRANSFERS TO THE PERUVIAN MAIN MILESTONES STATE 2001 2019 IN 2019
ONGOING TRANSFORMATION OUR PERFORMANCE 23,622,146 18 DIRECT US$128.41 TOTAL NUMBER OF PASSENGERS DOMESTIC ARRIVALS, DEPARTURES AND DESTINATIONS MILLION ADJUSTMENT CONNECTIONS EBITDA TO STANDARDS
24 AIRLINES 85 COMMERCIAL 604 OPERATING AT JORGE CHÁVEZ OUTLETS INTERNATIONAL AIRPORT DIRECT JCIA * EMPLOYEES **
197,870 US$388.46 19,919 AIRCRAFT MOVEMENTS MILLION EMPLOYEES REVENUES FROM THE AIRPORT OPERATION IN THE AIRPORT ***
271,326 US$ 560.37 TOTAL CARGO TRANSPORTED MT MILLION INVESTMENTS IN JCIA 2001 2019
(*) December 2019 figures. British Airways is included. (**) It includes direct and indirect employees. (***) Figures of collaborators do not include trainees.
SUSTAINABILITY AND ANNUAL REPORT 2019 05 CEO
THE BEST AIRPORT IN SOUTH AMERICA MESSAGE CEO 102-14 MESSAGE
MAIN MILESTONES IN 2019
ONGOING Dear, TRANSFORMATION Since we were awarded the contract for the Jorge the State handed over the land to us in October 2018 At LAP, we keep the promise to meet deadlines, OUR PERFORMANCE Chávez International Airport concession in 2001, the in compliance with the Concession Contract, we but we are not the only actors in this process. We
ADJUSTMENT history of Lima Airport Partners, a company operated started the environmental remediation activities in know that this project is significantly important to TO STANDARDS by Fraport AG, has been marked by a strong growth the lands of the expansion, with a view to fulfilling our the country, the development of the sector, the in every airport activity: We have worked to offer commitment to Peru. tourism and trade industries, and we are working every passenger and customer a quality service. up to what Peru deserves. The project aims to make Lima the main hub In this scenario of transformation and with the In 2019, we exceeded again the previous year growth airport in South America, generating more challenge of operating the current infrastructure, we with 23.6 million passengers, which means connectivity for millions of passengers and cargo. strengthen our commitment to be a reference of an increase by 6.8% in respect of the 2018 year. In this way, new development opportunities are excellence. We know that it is not an easy task This growth is accompanied by new dynamics offered to the country. This will be a starting point for and are aware that passengers and the airport at the airport and significant changes in the the airport to benefit its environment and will serve community will have inconveniences during this business model: The rise in the number of to integrate businesses, the State and civil society. transition. It requires more coordination with all domestic passengers and the expansion of the low the entities involved in the airport operation and, cost carrier model. The airside will be ready in 2022: we will above all, with the State authorities. have a second runway 3,480 meters long and
These changes occur in a challenging scenario for a new control tower with the latest generation In this regard, since 2019 the Airport is operating our management as operators of the concessioned navigation system. This will make it possible to under the category Level III of the International Air infrastructure, since we are in the initial stage of the increase the frequency of flights. The landside will Transport Association (IATA); which allows us to airport expansion project due to a series of delays in be ready in 2024: we will have a new maintain a high priority in the coordination with the process of expropriation and release of interference passenger terminal with a modular design to airports in the world and in the allocation of slots for from the land. Finally, in March of this year and after quickly respond to future demand. aircraft movements.
SUSTAINABILITY AND ANNUAL REPORT 2019 06 CEO
THE BEST AIRPORT IN SOUTH AMERICA MESSAGE CEO 102-14 MESSAGE
MAIN MILESTONES IN 2019
ONGOING TRANSFORMATION In addition, to meet the growing demand, during obtain the ISO 31001 and ISO 37001 that takes into consideration our social I am proud to say that Jorge Chávez OUR PERFORMANCE the year we took initiatives to improve certifications. During the year, we were and environmental impacts. In 2019 we International Airport is the airport of all Peruvians. ADJUSTMENT infrastructure, such as the expansion of the imposed no sanction by any regulatory body, conducted entrepreneurship workshops, TO STANDARDS domestic arrivals area, the renovation of the food thus demonstrating that we are committed to health campaigns, environmental and road court and VIP lounges, the increase in the number complying with the law and to an excellent safety education programs in our zones of of check counters and the increase in aircraft management. Also, we reaffirm our influence, investing US$650,000. In addition, we parking capacity (ADP), whose capacity, since commitment to compliance with the United created the Technical Committee for Aircraft 2001, has more than tripled (233%). National Global Compact principles. We want Noise Mitigation, which is made up of national the country to be proud of its airport. and local authorities as well as airlines. In these 19 years, we have made direct transfers to the Peruvian State for US$2,685 million. In addition, Safety and security are essential to our activity I take this opportunity to thank the we have invested US$560.37 million in the airport and must be guaranteed every day. Since 2018 airport community for all the efforts they are modernization. In 2019 revenues for US$388.46 JCIA is considered a national critical asset, making with us to meet the high demand of million, that is, 4.8% more than in 2018, were which makes it possible for us to coordinate passengers and visitors in our facilities. I also obtained and were mainly aeronautical revenues. with the State the prevention and protection congratulate the airlines on their These figures prove our sound financial management of the airport facilities. One of the most commitment to continue growing and making and guarantee the sustainability of our business in significant milestones in 2019, which it possible that our country is increasingly the long term. demanded the highest standards of connected to the world. Our more than 600 Juan José Salmón Gerente General security and service, was the Pan American and workers and every single person carrying out Motivated by more transparent management, in2019, Parapan American Games, or which we an activity at the airport make this place the we created the Area of Risk and Compliance. For this received about 8,000 athletes. We maintain a best airport in South America (Skytrax 2019) reason, we have started a process of alignment to sustainable and responsible management system and the best entrance to Peru.
SUSTAINABILITY AND ANNUAL REPORT 2019 07 MAIN MILESTONES IN 2019
THE BEST AIRPORT IN SOUTH AMERICA
CEO MESSAGE
MAIN MILESTONES IN 2019
ONGOING We received an award in the category of airports for 20 to 50 TRANSFORMATION million passengers as part of the Airport Performance Awards We created the Area of Risk and presented by Future Travel Experience y CIRIUM. OUR PERFORMANCE Compliance. Sky Airlines Fraport increased its Pan American and We were granted the Certificate of Technical Inspection in We implemented the 4.0 version of the entered the participation in the Parapan American Building Security by the Provincial Municipality of Callao. ADJUSTMENT Airport Information System (AIS). The market of shareholding by 10% Games. TO STANDARDS scope of the project included the domestic and as a result, it now We were designated a Level III IATA airport, which allows us a exchange of automatic information with flights. has a total participation high interaction with other airports around the world. various systems. of 80.01%.
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
We started Early Works for the We expanded and remodeled We strengthened the We inaugurated 5 domestic We awarded Work Package 1 expansion project and moved forward the food court, increasing the security measures in the remote rooms, 18 check-in for the airport expansion - with Earthworks. installed capacity by 32%. random physical counters, 2 metal detectors Cleaning and Site Preparation screening to detect and 2 turnstiles for the to the Consorcio Nuevo Limat- non-metallic threats with collection of the Unified Tariff ambo, formed by the compa- We received the World Airport Award We received the “2019 Socially criminal and terrorist for Airport Use. nies OHL and COSAPI. from Skytrax as "Best Airport in South Responsible Company Award” purposes. America". from Perú2021. We expanded the domestic baggage collection area and the BHS Outbound Project.
We converted the network from gigabit to 10 G.
SUSTAINABILITY AND ANNUAL REPORT 2019 08 ONGOING TRANSFORMATION
At LAP, we work every single day to position Peru as the best point of connection in South America. It is our commitment to lead Jorge Chávez Airport to its great transformation.
SUSTAINABILITY AND ANNUAL REPORT 2019 09 WE ARE LIMA AIRPORT
THE BEST AIRPORT IN SOUTH AMERICA PARTNERS LAP CEO MESSAGE
MAIN MILESTONES IN 2019
ONGOING OUR COMPANY TRANSFORMATION 102-1, 102-2, 102-3, 102-4, 102-5, 102-6, 102-16, 102-45
WE ARE LIMA AIRPORT 01 PARTNERS (LAP) We are Lima Airport Partners S.R.L. (LAP), concessionaire of the Jorge Chávez JORGE CHÁVEZ International Airport (JCIA) under the Concession Contract signed by LAP and the INTERNATIONAL 02 AIRPORT Peruvian State for the construction, improvement, conservation, and use of JCIA, located in the Constitutional Province of Callao, Peru. We operate since 2001, and we OUR PERFORMANCE have the concession for a 40-year term. ADJUSTMENT TO STANDARDS OUR VISION To be an innovative airport committed to its environment and creator of the best experience in Latin America for the world. To be an inspiring and successful company where every Peruvian dreams to work.
OUR MISSION We manage offering excellence services to our users at JCIA. At the same time, we are building a new airport in order to consolidate Peru as the best hub airport in South America.
SUSTAINABILITY AND ANNUAL REPORT 2019 10 OUR VALUES
THE BEST AIRPORT IN SOUTH AMERICA
CEO MESSAGE
MAIN MILESTONES UNITY COMMUNICATION EMPATHY COURAGE IMPACT IN 2019
ONGOING TRANSFORMATION OUR PRINCIPLES WE ARE LIMA AIRPORT 01 PARTNERS (LAP)
JORGE CHÁVEZ INTERNATIONAL 02 AIRPORT
OUR PERFORMANCE
ADJUSTMENT TO STANDARDS SERVICE INTEGRATED SAFETY INNOVATION SOCIAL AND FINANCIAL QUALITY AND SECURITY AND EFFICIENCY ENVIRONMENTAL SUSTAINABILITY RESPONSIBILITY
OUR SHAREHOLDING 102-10
In May 2019, Fraport AG increased its share by 80.01% 19.99% International 10%, acquiring the share Fondo de Inversión en Finance Infraestructura, Servicios Públicos y Recursos Corporation Naturales (Infrastructure, Utilities and Natural Resources Investment Fund) had for more than ten years. At present, our shareholding structure is the following:
SUSTAINABILITY AND ANNUAL REPORT 2019 11 OUR VALUE PROPOSITION 102-2, 102-7
THE BEST AIRPORT WE CONNECT PEOPLE AND COMPANIES IN SOUTH AMERICA THAT ENJOY A MEMORABLE EXPERIENCE. CEO MESSAGE Our warm people, the quality of our service and our innovative commercial offer allow us to be the best In 2019, we consolidated our management, focused on the concepts of business, team and MAIN MILESTONES airport in Latin America. These features are reflected in all our activities and relationships with processes. Based on the analysis of our risks and a constant look at the international standards, we IN 2019 stakeholders. We also transmit them through our chain of value in the aviation and non-aviation services prepared the strategic priorities for the 2020 – 2024 period, which will guide our management in the ONGOING we provide to airlines, commercial concessionaires, passengers, visitors and companions. coming years. TRANSFORMATION
WE ARE LIMA AIRPORT 01 PARTNERS (LAP)
JORGE CHÁVEZ INTERNATIONAL 02 AIRPORT
OUR PERFORMANCE Aviation activities Activities supporting the business Value proposition ADJUSTMENT TO STANDARDS WE ARE MORE THAN AN AIRPORT
We connect people and companies that enjoy a memorable experience. Our warm people, the quality of our service and our innovative Landing and Services in Services as Services from commercial offer allow us to be the best airport in take-off of the terminal parking concessionaires aircrafts Latin America.
Non-aviation activities
STRATEGIC PRIORITIES
EFFECTIVELY OPTIMIZE GENERATE A BUILD AND MAXIMIZE THE MANAGE REPUTATION TO SUSTAINED AND EFFECTIVELY COMMERCIAL CONGESTION IN MAINTAIN THE PROFITABLE OPERATE THE REVENUES THE CURRENT OPERATING GROWTH NEW TERMINAL Services to Customer ser- TERMINAL PERMIT passengers vice offices
SUSTAINABILITY AND ANNUAL REPORT 2019 12 ECONOMIC VALUE GENERATED AND DISTRIBUTED
102-48, 201-1
In 2019 our revenues had a positive impact on the stakeholders since we shared with them the value we generated. THE BEST AIRPORT IN SOUTH AMERICA Our commitment to the airport development is also reflected in the investments made.
CEO MESSAGE IN MILLION US$ 2017 2018 2019
MAIN MILESTONES DIRECT ECONOMIC VALUE GENERATED IN 2019 Operating revenues from aviation and non-aviation services1 346.71 373.38 388.46 ONGOING Aviation services 252.80 271.72 279.15 TRANSFORMATION Non-aviation services 93.91 101.66 109.31 WE ARE LIMA AIRPORT 01 PARTNERS (LAP) ECONOMIC VALUE DISTRIBUTED JORGE CHÁVEZ INTERNATIONAL TOTAL EXPENDITURES 276.53 270.40 288.59 02 AIRPORT Operating costs: Payments to suppliers of goods and services 2 26.26 25.77 30.67 OUR PERFORMANCE Wages and social benefits of the employees: Total payments to employees and employer’s contributions. Commitments 16.35 18.54 21.48 ADJUSTMENT and future payments not included. TO STANDARDS 3 Payments to suppliers of capital: All financial payments to the suppliers of capital of the organization 29.68 0.18 1.22
Payments to governments: Payments as compensation for the concession, services rendered by the Peruvian State, rates and taxes paid. 204.17 225.14 234.57
4 Investments in the community: voluntary contributions and investment of funds in the community (including donations) 0.07 0.77 0.65
ECONOMIC VALUE WITHHELD BEFORE INVESTMENTS 70.18 102.97 99.87
IN MILLION US$ 2017 2018 2019
Improvements/investments in the airport 23.05 54.76 105.20
102-7 IN MILLION US$ 2017 2018 2019
Total liabilities 72.01 87.13 100.11
Total equity 317.57 409.49 503.83
1 Construction revenues reported in the financial statements in application of IFRIC 12 are not included. 2 As regards year 2017, the amount is mainly related to the early payment of the notes (then in force until June 2022) and the payment of dividends. 3 Payments made to CORPAC in compliance with the business collaboration agreement are included. 4 The variation represents the expenses incurred to implement the Amendment to the Environmental Impact Study (AEIS).
SUSTAINABILITY AND ANNUAL REPORT 2019 13 OUR SUSTAINABLE MANAGEMENT
THE BEST AIRPORT WE OPERATE A SUSTAINABLE AND RESPONSIBLE AIRPORT. IN SOUTH AMERICA We understand that sustainability is the way how to the generation of social and environmental our management during the year. Our CEO MESSAGE we manage our business. For this reason, we opportunities in the neighboring community and priorities will be updated in 2020 in order to guarantee that Peru’s space of connection with help to mitigate the impacts caused by our have them aligned with our new strategic plan. MAIN MILESTONES the world is economically, socially, and operation and infrastructure. In this way, we will rely on goals and objectives IN 2019 environmentally responsible. Thus, we consolidate that will make it possible to measure our ONGOING our leadership in the region and strengthen our In 2019 we identified seven relevant issues in contribution. TRANSFORMATION competitive advantages. Likewise, we give priority our sustainability management that have guided WE ARE LIMA AIRPORT 01 PARTNERS (LAP)
JORGE CHÁVEZ INTERNATIONAL 02 AIRPORT
OUR PERFORMANCE
ADJUSTMENT TO STANDARDS EFFICIENCY, INNOVATION AND GUARANTEE OF THE CONDITIONS GENERATION OF RELATIONSHIPS WITH OPTIMIZATION OF OPERATIONS REQUIRED TO START THE THE NEIGHBORING COMMUNITY AND AIPORT EXPANSION PROJECT STAKEHOLDERS IN LIMA AND CALLAO
FAMILIARITY WITH THE ENVIRONMENTAL MANAGEMENT TRANSPARENCY AND INTEGRITY TAIRPORT COMMUNITY
INFRASTRUCTURE MANAGEMENT
SUSTAINABILITY AND ANNUAL REPORT 2019 14 OUR STAKEHOLDERS
102-40, 102-42, 102-43, 102-44 / 103-1, 103-2, 103-3 Relationships with the communit RELATIONSHIPS WITH STAKEHOLDERS and stakeholders 103-1, 103-2, 103-3 Airport community THE BEST AIRPORT MATTERS IN SOUTH AMERICA STAKEHOLDERS FREQUENCY Since we started our operations, we identified OF INTEREST MECHANISM OF RELATIONSHIP AND INQUIRY CEO groups and subgroups of stakeholders of LAP and MESSAGE JCIA. In this stage of the concession, which is Organismo Supervisor de la Inversión en Communications): Coordination meetings about Infraestructura de Transporte de Uso Público several issues related to the expansion project and MAIN MILESTONES leading us to the commencement of the airport (OSITRAN) (Supervisor of Investment in the current operation of JCIA IN 2019 expansion, the Amendment to the Environmental Public Transport Infrastructure): Presentation Ministry of Economy and Finance: Coordination Expansion project of projects, upholding of tariffs and meetings and follow-up of the progress of the ONGOING Impact Study (AEIS) has made it possible for us to Regulatory compliance, coordination. expansion project. TRANSFORMATION update our map of stakeholders and propose new which includes the commit- Dirección General de Aeronáutica Civil Ministry of Transport and Communications, As needed ments and obligations under (DGAC) (General Bureau of Civil Supervisor of Investment in Energy and Mining and WE ARE LIMA AIRPORT spaces and dynamics of relationships. STATE 01 PARTNERS (LAP) the AEIS Aeronautics): Coordination of slots, bilateral Provincial Municipality of El Callao: Specifically, Ethics and transparency agreements, potential new operations and related to the fuel project. JORGE CHÁVEZ coordination meetings about INTERNATIONAL Every day we reaffirm our commitment to maintain Financial results 02 AIRPORT regulatory-aeronautical issues. a fluent, authentic and transparent dialogue about Ministerio de Transportes y Comunicaciones OUR PERFORMANCE the progress of the project and of our operations. (MTC) (Ministry of Transport and We know that this brings our stakeholders and us ADJUSTMENT Personal meetings TO STANDARDS closer together, allowing us to meet their Supervision visits expectations. Comité del Aeropuerto de Lima (COMALIM) (Lima Airport Committee) Expansion project As needed Meetings with operators Working meetings with maintenance workers and operators The organizations forming part of the airport AIRPORT OPERATORS Meetings with potential new operators community, those carrying out operations at the Inspections in the areas of operators airport and those supporting the airport operations and the commercial activities are worth Personal meetings Lima Airport Committee (COMALIM) mentioning. We share the everyday activities of Telephone calls the airport with these organizations and join efforts Communiqués of tasks and news with them for a better satisfaction of the Workshops (counters, buses and fuel) E-mails passengers and visitors. In addition, we closely Expansion project Routes Americas meeting AIRLINES As needed manage the safety and security issues, and the Airport regulation World Routes meeting Cute Club meetings social and environmental impacts for which the Meetings with station managers airport is responsible. Meetings with the planning areas of the main airlines Meetings with potential new airlines Negotiation meetings for the updating of regulated tariffs Working meetings with maintenance areas and airlines
SUSTAINABILITY AND ANNUAL REPORT 2019 15 MATTERS STAKEHOLDERS FREQUENCY MECHANISM OF RELATIONSHIP AND INQUIRY OF INTEREST
Expansion project Personal meetings Operations in the current THE BEST AIRPORT Lima Airport News bulletin terminal IN SOUTH AMERICA Web page Presentation of services or At the request Antidrug Committee materials offered of buyer or CEO Telephone calls Approval and due diligence supplier MESSAGE E-mails Improvements in perfor- Environmental and Occupational Health and Safety Committee (CASSO for its abbreviation in Spanish) SUPPLIERS / mance MAIN MILESTONES CONTRACTORS Questions in LAP web page IN 2019 Negotiation
ONGOING With every TRANSFORMATION Registration as LAP new supplier Web page supplier for its Evaluation WE ARE LIMA AIRPORT registration 01 PARTNERS (LAP)
JORGE CHÁVEZ Daily INTERNATIONAL Relationship Notice boards Bulletin every 02 AIRPORT LAP news: Milestones, Workplace Inquiries two months benefits, events, among Fraport World bulletin Climate survey COLLABORATORS Weekly notice OUR PERFORMANCE others. Displays boards ADJUSTMENT TO STANDARDS Expansion project Social programs (health, Web page Telephone calls Social promoters local manpower, goods and Daily Social media E-mails (visits and meetings) services and evacuation Permanent information office Mobile module COMMUNITY route)
Expansion project Annual report Resource management As needed Monthly accident reports PARTNERS Financial results Partners’ meeting
Information displays Satisfaction survey Airport infrastructure and Daily Customer service module Social media services PASSENGERS AND Suggestions box COMPANIONS
As needed Working meetings Marketing Committee Expansion project Bulletin Lima Airport News bulletin Mass media Airport infrastructure and every two Environmental and Occupational Health and Safety Committee (CASSO) Contests or direct negotiations COMMERCIAL services CUSTOMERS months Service satisfaction survey Presentation of results
Web page Working meetings Expansion project As needed Official LAP social media Contests Lima Airport City INVESTORS Presentation meetings
SUSTAINABILITY AND ANNUAL REPORT 2019 16 OUR COMMITMENT TO THE SUSTAINABLE DEVELOPMENT THE BEST AIRPORT GOALS SDGS IN SOUTH AMERICA MEMBERSHIPS Aligned with the management strategies of our partners (Fraport AG and IFC), we 102-12, 102-13 CEO OBJECTIVES ACTIONS STAKEHOLDERS MESSAGE aim to contribute to the achievement of the SDGs. We mainly contribute to the attainment of the following goals: MAIN MILESTONES INDUSTRY, INNOVATION AND Airport Information Collaborators IN 2019 INFRASTRUCTURE and airport System (AIS) Association for the Promotion of ONGOING community National Infrastructure) TRANSFORMATION 10G network OBJECTIVES ACTIONS STAKEHOLDERS WE ARE LIMA AIRPORT 01 PARTNERS (LAP)
JORGE CHÁVEZ HEALTH AND INTERNATIONAL Occupational health Collaborators, SUSTAINABLE WELFARE CITIES AND Local development 02 AIRPORT and safety community, COMMUNITIES Peruvian-German Chamber of since compliance with Communities Commerce and Industry Air quality passengers and OUR PERFORMANCE companions the MEIA Noise management ADJUSTMENT TO STANDARDS
CLEAN WATER AND SEWAGE RESPONSIBLE Passengers Latin America and Caribbean Water saving initiative Passengers and PRODUCTION Waste recovery and companions, Airports (ACI-LAC) companions and AND CONSUMPTION for the areas with commercial customers, collaborators more consumption collaborators
DECENT WORK State, collaborators, ALLIANCES IATA - Internacional Air AND ECONOMIC Economic value TO ACHIEVE Alliances with public Collaborators, GROWTH community, GOALS Transport Association (IATA) communities generated for the commercial institutions and State stakeholders customers
Global Compact (member since 2016)
SUSTAINABILITY AND ANNUAL REPORT 2019 17 JORGE CHÁVEZ INTERNATIONAL AIRPORT
THE BEST AIRPORT IN SOUTH AMERICA THE AIRPORT
CEO MESSAGE STRATEGIC POSITION TO CONNECT THE WORLD
MAIN MILESTONES Jorge Chávez International Airport (JCIA) was location, in the middle of the west coast of South area under roof of 90,150 m2, 44 departure In parallel, we continued with the development of IN 2019 inaugurated 55 years ago, in December 1965. It is America, and to articulate its diverse actors to turn lounges, 19 loading bridges and 142 passenger the conceptual engineering and design of the ONGOING located in the Provincia Constitucional del Callao it into the hub of South America. In this way, we check-in counters. airside and landside. TRANSFORMATION (Constitutional Province of El Callao) and is more seek to create the first and last best impression of
WE ARE LIMA AIRPORT than an air terminal: It is the entrance to Peru, the Latin America for the world. After waiting for several years and receiving the PARTNERS (LAP) 01 connection of our country with the world. corresponding lands from the Peruvian State, in JORGE CHÁVEZ INTERNATIONAL As to 2019, we are operating on an area of 2.51 2019, we started the first environmental remediation 02 AIRPORT For this reason, since 2001, year in which the million m2, which comprises a runway 3,508 activities in the whole area of the expansion project. 174% OUR PERFORMANCE concession of Jorge Chávez was given to LAP, we meters long, an apron of 402,600 m2, 60 aircraft Increase in assumed, as our main task, to promote its strategic parking positions, one passenger terminal with an aircra ADJUSTMENT movements TO STANDARDS
128% Terminal growth 144% 233% Increase in the Apron growth number of aircra parking positions
Accumulated data from 2001 to 2019.
SUSTAINABILITY AND ANNUAL REPORT 2019 18 THE BEST AIRPORT IN SOUTH AMERICA The expansion project comprises the following: HOW DOES THE AIRPORT CONTRIBUTE TO THE ECONOMIC DEVELOPMENT?
CEO JCIA is an economic driver for Peru. It does not only make possible that millions of tourists have MESSAGE A NEW TERMINAL. access to the cultural offer of the country, but it is also an entrance to resources that promote MAIN MILESTONES With a total area of 260,000 m2, about 120 check-in counters, more than domestic production and an exit to the export market. IN 2019 60 boarding gates (fixed and remote) and a capacity to serve 35 million passengers per year, once the new infrastructure has been put in ONGOING operation. TRANSFORMATION According to the International Air Transport Association (IATA), air transport generates 341,000 jobs, contributes to the Peruvian economy and represents WE ARE LIMA AIRPORT US$5 billion of gross value added 01 PARTNERS (LAP) 2.6% of the gross domestic product (GDP). JORGE CHÁVEZ INTERNATIONAL 02 AIRPORT SECOND NEW CONTROL RUNWAY. TOWER. In the recent years, the tourism sector has been consolidated as an outstanding development OUR PERFORMANCE agent. At present, in Peru, it represents 3.9% of the GDP, as reported by the World, Travel & ADJUSTMENT Tourism Council (WTTC). TO STANDARDS
Popular destinations, such as Machu Picchu or the National Reserve of Paracas, have experienced a more significant growth. In 2019, the National Reserve of Paracas received 8.1% NEW MAINTENANCE THE FIRST AIRPORT more visitors than in 2018. This increase in the number of visitors remarkably benefits the AREAS FOR CITY IN SOUTH Peruvian economy. Domestic tourism generates 1.4 million jobs in Peruvian regions (Prom Peru, AIRCRAFTST. AMERICA. 2019).
In this way, we will demonstrate our commitment to Peru, the millions of passengers, In 2020, Peru aims to attract 4.85 million foreign tourists. To achieve this goal, an adequate and the neighboring community, which will benefit from new development opportunities. infrastructure is essential. At LAP we are committed to provide a world-class infrastructure that continues contributing to the economic development of the country.
SUSTAINABILITY AND ANNUAL REPORT 2019 19 THE EXPANSION PROJECT
102-10, 103-1,103-2,103-3 Conditions required for the expansion project 103-1, 103-2,103-3 Infrastructure management MAP OF THE EXPANSION PROJECT
THE BEST AIRPORT IN SOUTH AMERICA JCIA EXPANSION: ONE OF THE MOST IMPORTANT
CEO INFRASTRUCTURE PROJECTS IN THE COUNTRY MESSAGE FAUCETT AVENUE With the expansion project, the current size of the MAIN MILESTONES EXISTING TERMINAL IN 2019 airport will triple. The infrastructure and the larger capacity will allow us to receive much more ONGOING
TRANSFORMATION passengers and airlines, improving, at the same EXISTING RENEWED RUNWAY time, the connectivity inside the country and with WE ARE LIMA AIRPORT 01 PARTNERS (LAP) the world. In addition, it will be an important source JORGE CHÁVEZ INTERNATIONAL of jobs that will revitalize the airport sector and the 02 AIRPORT neighboring community, generating development SANTA ROSA BRIDGE MAIN ENTRANCE OUR PERFORMANCE opportunities for all the involved actors. TAXIWAYS RÍMAC RIVER TO THE AIRPORT
ADJUSTMENT FUEL PLANT MORALES DUÁREZ AVENUE TO STANDARDS The Jorge Chávez Airport expansion will be carried NÉSTOR GAMBETTA AVENUE out on an area of about 6.76 million m2, as established in the Concession Contract. It comprises, among others, the construction of a second runway, a new control tower, and a new passenger terminal. We will also expand the airside and the landside and will promote the development AIRSIDE LANDSIDE of the first airport city in the region: Lima Airport A NEW CONTROL TOWER A NEW PASSENGER TERMINAL City. 65 meters high More than 60 boarding gates (fixed and remote). 2 large entertainment areas in the SECOND RUNWAY domestic and international zones. 3.480 meters long 120 Check-in positions approximately. 260 thousand m2 of total area of the new terminal.
SUSTAINABILITY AND ANNUAL REPORT 2019 20 The expansion project has been divided into three work packages in order to carry out the work more efficiently and quicker. MAIN PROGRESS
THE BEST AIRPORT Packages 1 and 2 (air side) include land preparation work (environmental remediation) In March 2019, we started the project with early works previous to the main activities on-site, IN SOUTH AMERICA as well as construction of the new control tower and the second runway. including the following, among others:
CEO Package 3 (landside) comprises the construction of the new passenger terminal. MESSAGE
MAIN MILESTONES STAGES AND COMPONENTS OF THE EXPANSION PROJECT IN 2019 SOIL SURVEYS Detailed soil surveys, such as topography, geotechnics and hydrogeology. ONGOING TRANSFORMATION
WE ARE LIMA AIRPORT PARTNERS (LAP) AIRSIDE 01 ENVIRONMENTAL REMEDIATION PACKAGE 1 PACKAGE 2 • Second runway Cleaning, remediation and/or disposal of environmental liabilities at the expense of the Peruvian State. JORGE CHÁVEZ Top soil, demolitions, Runway, control tower, advanced midfield apron • Taxiways INTERNATIONAL material loan, etc. (AMA), etc. 02 AIRPORT • Midfield Advanced apron Invitation: October 2019 Invitation: January 2020 • Control tower Deadline of tender: December 2019 Deadline of tender: May 2020 • Fire station OUR PERFORMANCE Award of contract: December 2019 Award of contract June 2020 • Duct bank ACCESS FROM GAMBETTA AVENUE ADJUSTMENT 2019 2020 2021 Provision of an exclusive access for vehicles to the worksite. TO STANDARDS
PACKAGE 3 New terminal, apron, services LANDSIDE plant, etc. • New terminal DEWATERING Invitation: May 2020 • Apron Temporary drainage to mitigate the water outcrops in the construction area to make way for End of tender: October 2020 • Services plant the final drainage system of the project (on lands expropriated by the MTC). Award: November 2020
PERIMETER FENCE Installation of a provisional perimeter fence, as well as the initial phase of construction of the work camp. During 2019, we worked on the design of the proj- contract for the first work package of the airside to ect with Aecom, an American company with the Nuevo Limatambo consortium, made up of
25-year experience in this field. This company has companies: OHL and COSAPI. EVACUATION ROUTE participated in international major construction proj- Provision of a land strip to be used as evacuation route in case of tsunami by the communities in the west zone. ects, such as the Abu Dhabi (Arab Emirates) and In 2020, we will complete the awarding of contracts Schiphol (Amsterdam) airports. On the other hand, for the other packages and will move forward with after a rigorous tender process, in which the bids the expansion. The airside will be completed in from eight local and foreign construction companies 2022 and the landside will be delivered in 2024. were evaluated, by the end of 2019 we awarded the
SUSTAINABILITY AND ANNUAL REPORT 2019 21 FAUCETT AVENUE LIMA AIRPORT CITY FAUCETT
FRONT NORTH ZONE
THE BEST AIRPORT At LAP we have a clear vision of the Lima airport IN SOUTH AMERICA development based on the concept of airport CEO city, which we will call Lima Airport City. We MESSAGE Existing runway estimate that it will be implemented in 110 SANTA ROSA MAIN MILESTONES hectares in a period of three decades and will be IN 2019 the first project of its kind in airports in South ONGOING America, which will consist of four mega plots TRANSFORMATION that are currently named: Cabecera Norte, WE ARE LIMA AIRPORT Faucett, Santa Rosa and Gambetta. 01 PARTNERS (LAP)
JORGE CHÁVEZ MORALES DUÁREZ AVENUE INTERNATIONAL For the airport industry, a modern airport is more 02 AIRPORT than the place where passengers or air cargo Second runway OUR PERFORMANCE embark or disembark: an airport is a modern city ADJUSTMENT that offers a short but pleasant stay. It hosts a RÍMAC RIVER SANTA ROSA TO STANDARDS BRIDGE great variety of companies and services, which MAIN ENTRANCE TO THE AIRPORT taking advantage of the airport's connectivity NÉSTOR GAMBETTA AVENUE platform, offer diverse business platforms for Peru and the world; it is a city where everyone is GAMBETTA welcome; and, it is a place that operates 24 hours a day, 7 days a week.
Thus, the new Jorge Chávez airport will be more Offices than an airport: It will be a modern and vibrant become a commercial exchange platform that Hotels Logistics city surrounded by runways. It will be an will be perfectly integrated with the city and will international hub with a wide offer of forms of Cargo City Retail Lima Airport City make it possible to revitalize the Constitutional USES Cargo transportation for people and cargo. In addition, Province of El Callao. Parking Aviation it will comprise numerous facilities for aviation Hangars, aviation activities Additional Uses and non-aviation activities, such as a logistics and cargo area, hangars, offices, warehouses, parking lots, hotels, shops, among others. It will Subject to changes depending on the demand from third parties (investors) and future needs of the airport.
SUSTAINABILITY AND ANNUAL REPORT 2019 22 CONNECTIVITY, ACCESSIBILITY AND MULTIMODALITY
THE BEST AIRPORT The success of the new Jorge Chávez airport also IN SOUTH AMERICA depends on connectivity, accessibility and the CEO available multimodal means of transport (car, train MESSAGE and bus). In a new, modern and efficient airport, it is MAIN MILESTONES essential that passengers, visitors and workers IN 2019 must arrive and leave the airport quickly and easily. ONGOING TRANSFORMATION For this reason, we closely coordinate with the local WE ARE LIMA AIRPORT and regional governments and with the central 01 PARTNERS (LAP) government so that new road projects are carried JORGE CHÁVEZ INTERNATIONAL out to connect the city and the airport properly and 02 AIRPORT quickly. To execute these important road works the OUR PERFORMANCE support and the commitment of the entities ADJUSTMENT responsible for their construction and starting up TO STANDARDS are essential.
Compared to other airports in the region, such as El Dorado (Bogota), Arturo Benítez (Santiago) or Guarulhos (Sao Paulo), JCIA needs more multimo- dality and a mass transport solution that includes trains and integrated bus sys- tems.
SUSTAINABILITY AND ANNUAL REPORT 2019 23 NÉSTOR GAMBETTA AVENUE
CONNECTIVITY AND ACCESSIBILITY Independencia
There are 8 infrastructure projects, some of which are in the planning stage for THE BEST AIRPORT better connectivity to the new Jorge Chávez from Lima and Callao. IN SOUTH AMERICA Line 4 branch TOMÁS VALLE AVENUE CEO MESSAGE 1 Costanera road (continuation to Lima) 2 Costanera road (continuation to Callao) to Santa Rosa avenue MAIN MILESTONES IN 2019 They will connect La Punta and Chorrillos in only 25 minutes.
New FAUCETT AVENUE Continuation of Línea Amarilla ONGOING Jorge Chávez 3 TRANSFORMATION Santa Rosa avenue (fitting out) airport 4 Santa Rosa avenue (highway) WE ARE LIMA AIRPORT PORT 01 PARTNERS (LAP) RIMAC RIVER They will allow to have the first OF CALLAO 8 JORGE CHÁVEZ highway from the airport to the city. 5 INTERNATIONAL 7 02 AIRPORT 6 5 Línea Amarilla (continuation to Gambetta avenue) CALLAO OUR PERFORMANCE Santa Rosa avenue A second highway to the It will reach the port of LIMA ADJUSTMENT airport from the east of Callao and benefit the TO STANDARDS Metropolitan Lima will be logistic cargo transport. 3 available.
4
6 Faucett and Morales Duárez exchange
Vehicle flow from Faucett avenue to the Línea 2 Metro Lima new terminal will be smoother. LA MARINA AVENUE
2 7 Gambetta and Morales Duárez exchange San Miguel Costanera road Vehicle flown between Gambetta and Morales 1 Duárez avenues will be smoother. JAVIER PRADO AVENUE
COSTANERA AVENUE 8 Connection of subway with new terminal Vías actuales Proyectos Víales Multimodality will be increased to provide an efficient mass transport system.
SUSTAINABILITY AND ANNUAL REPORT 2019 24 ACCESS ROADS TO THE AIRPORT
THE BEST AIRPORT The access roads to the airport serve vehicles How do our passengers and workers IN SOUTH AMERICA (1) transporting passengers and visitors, airline come to the airport? - Modal Split CEO employees and other operators and tenants of MESSAGE Rimac the airport as well as air cargo, mail, goods and MAIN MILESTONES ARRIVING AND DEPARTING PASSENGERS IN 2019 services and are used for the maintenance, operation and construction of the airport. 63% ONGOING TAXI TRANSFORMATION 25% OUR STRATEGY A large portion of the airport operation depends 7% WE ARE LIMA AIRPORT PRIVATE 01 PARTNERS (LAP) on these roads. For this reason, the road 4% VEHICLE JORGE CHÁVEZ INTERNATIONAL operations must be efficient and safe for the 1% We collaborate with the authorities to 02 AIRPORT CENTRO HISTÓRICO have better access roads from and to airport success, in particular when the number of PRIVATE OUR PERFORMANCE Lima and El Callao. We aim at transport passengers and visitors continues increasing. BUS multimodality for vehicles, buses and ADJUSTMENT WORKERS OF THE AIRPORT COMMUNITY TO STANDARDS future trains or subways that benefit 2% PUBLIC passengers, users, companions and BUS 8% employees of the airport community. 16% 69% OTHERS We will encourage the expansion of 4% efficient and mass transport services to La Victoria ensure the sustainability of everybody’s airport.
At LAP we provide the Airport Express service. It is a safe and reliable bus service that transports passengers from the airport to the districts of Miraflores and San Isidro and vice versa every hour. In 18 months of operation, this service attracted almost 2% of the CENTRO Jorge Chávez modal split. FINANCIERO
(1)Study “Measurement of Variables related to the Modal Split in JCIA”, prepared by Pontificia Universidad Católica del Peru (PUCP) (Pontifical Catholic University of Peru), 2019. San Isidro The results are shown as an aggregate of means of transport to arrive to and leave JCIA.
SUSTAINABILITY AND ANNUAL REPORT 2019 25 OUR PERFORMANCE
In 2019 we continued working with a view to expand the Jorge Chávez airport without neglecting the efficient management of the operations and the quality of our services.
SUSTAINABILITY AND ANNUAL REPORT 2019 26 ETHICS AND CORPORATE GOVERNANCE
THE BEST AIRPORT IN SOUTH AMERICA Ethics and integrity in our operations RISK MANAGEMENT are the main core of the transparency CEO AND COMPLIANCE SYSTEM MESSAGE we offer to our stakeholders. With the 102-16, 205-1, 205-2 MAIN MILESTONES aim that every decision we adopt UN Global Compact – Principle 10 103-1, 103-2, 103-3 Transparency and integrity IN 2019 contributes to strengthening our
ONGOING competitiveness and reputation on a The airport operation entails a great In addition, we updated the “Integrated Risk During the year we carried out the following TRANSFORMATION worldwide basis, we have achieved responsibility. Every decision we adopt must Management Manual” and the “Process Inventory”. activities: the following: OUR PERFORMANCE contribute to the achievement of the goals and Similarly, we prepared the first version of the “Risk ETHICS AND CORPORATE optimize performance, always taking the values and Control Matrix”. In parallel, in July 2019, we 03 GOVERNANCE RISK that represent us and the unlimited compliance started the process of adjustment of the Compliance EXCELLENCE with the legislation into consideration. Risk System to the ISO 37001 standard (Anti-bribery 04 SERVICES Creation of a Risk and Induction on risk management and internal control management allows us to support a better Management) and the process of identification of to new collaborators. EFFICIENT AND Compliance Area 05 RESPONSIBLE OPERATION decision making, complying with the governance compliance risks and their control in nineteen areas Specific in situ training to collaborators who were LET’S GROW requirements of our partners Fraport AG and IFC of LAP, and in the expansion project. Given the 06 TOGETHER to be ISO audited in respect of the new risk and and aligning with the principles established in the context of the airport expansion project, we carried control matrices created for their processes. WE PROTECT 100% complaints settled OUR ENVIRONMENT on a timely basis Code of Ethics in Business in respect of risk out due diligence process with companies and 07 Internal control training to the protocol staff. OUR TEAM issues, such as corruption, fraud, money consortiums that took part in the tender. 08 MAKES THE DIFFERENCE laundering, terrorism financing, unfair competition and improper treatment of personal data. We know that to ensure an appropriate imple- ADJUSTMENT COMPLIANCE TO STANDARDS 19 regulatory inspections mentation of this system, workers must know, In this regard, in January 2019, we created the share and act in accordance with our ethical First virtual course on the compliance system with Risk and Compliance Area and designated a guidelines. For this reason, we train them to be able a 99% participation of collaborators. dedicated compliance officer. This made it to comply with the policies associated to risk 0 sanctions possible for us to strengthen our management management and compliance. Specific compliance training to sensitive areas. and uplift internal control in the other areas. Also, Induction on the compliance system to new we prepared the risk management and compliance collaborators. 99% participation of system policies, which allow us to align with the Experiential learning workshops on the compliance collaborators in compliance ISO 31001 standard and implement a prevention system e-learning system. model, according to the Peruvian legislation (Act N° 30424, which regulates the administrative responsibility of legal entities).
SUSTAINABILITY AND ANNUAL REPORT 2019 27 PERSONS WHO REGULATORY COMPLIANCE RECEIVED INFORMATION 103-1, 103-2, 103-3 Transparency and integrity COLLABORATORS ABOUT ANTI BRIBERY* In 2019 we spread our whistleblowing system and We are in charge of the management of a public regulator as well as our relationship with the MTC and THE BEST AIRPORT Total employees 604 provided online training on the compliance system. infrastructure. For this reason, we have made other State entities. IN SOUTH AMERICA Percentage 100% The numbers of persons who received information commitments to the Peruvian State under the CEO Managers 26 about anti bribery were the following: supervision of OSITRAN, as set forth in the In 2019 we were not imposed any sanction by MESSAGE Heads 41 concession contract. In case of non-compliance, OSITRAN, which is a proof of our commitment to MAIN MILESTONES Supervisors / coordinators 144 OSITRAN will be the entity in charge of starting a comply with the law. Within the scope of its duty of IN 2019 Analysts / assistants 141 proceeding to impose a sanction against us and supervision, this regulator inspected us on nineteen
ONGOING Collaborators in operating 252 deciding whether a fine is levied on us. occasions to verify compliance with our obligations. areas TRANSFORMATION Compared to the previous year, three additional *Who received information about anti bribery. Our purpose is to make our collaborators aware of the inspections, focused on environmental issues, were OUR PERFORMANCE compliance with the concession contract. For this conducted, which is consistent with the commitments ETHICS AND CORPORATE Continuing with the adjustment to the ISO 37001 standard, for the second half of 2020, we are planning 03 GOVERNANCE reason, we have promoted the use of the compliance made under the AEIS. These nineteen inspections to advise our business partners and directors about our compliance system. EXCELLENCE system to trace the records of entry, approval and exit covered the following: SERVICES 04 of documents related to our obligations to the EFFICIENT AND 05 RESPONSIBLE OPERATION LET’S GROW Whistleblowing system Security inspections: Compliance with the airport security regulations in force. 06 TOGETHER Compliance with the laws in force and with our anonymous reporting system, online and WE PROTECT 4 maintenance inspections: Conservation and execution of maintenance activities in the airport infrastructure, internal guidelines is highly important. In that 07 OUR ENVIRONMENT available to all our stakeholders: The Business compliance with the Minimum Technical Requirements (MTR) and the regulations in force. OUR TEAM regard, we encourage our collaborators and third Keeper Monitoring System (BKMS). Users can 08 MAKES THE DIFFERENCE parties to report any non-compliance through our report the following circumstances: 4 inspections of operations: Services classified as main and secondary operations, Unified Tariff for Airport Use (TUUA) and landing and take-off services. whistleblowing system.To this end, we have an ADJUSTMENT TO STANDARDS 6 environmental inspections: Compliance with the environmental plan and activities carried out for compliance with environmental requirements by third parties. Corruption Breach of the data protection law Failure to comply with LAP’s and failure to comply with the duty values and/or principles 4 commercial inspections: Execution of access agreements, spreading of procedures to make complaints, Theft of confidentiality application of commercial tariffs and policies. Other breaches to laws Fraud, swindle or deception Failure to comply with the occupational health and safety Crimes against property In 2019, 204 requests from OSITRAN, in addition to the obligations established in the compliance matrix, standards were handled and transmitted to the pertinent areas. Likewise, we coordinated the digital platform integration process with the regulator and this will allow us to send them documents through their Digital Other ways to report a complaint or any ethical doubt are e-mails, letters or other forms of Front Desk. communication addressed to the compliance officer. In 2019 eighteen complaints made personally and through the whistleblowing system were investigated and managed on a timely basis. On the other hand, we have started internal coordination for the development of a compliance and prevention policy.
SUSTAINABILITY AND ANNUAL REPORT 2019 28 CORPORATE GOVERNANCE 102-18
THE BEST AIRPORT We form part of the Fraport AG group and our activities and operations are governed by the guidelines and The senior management team of the company is made up of Mr. Juan José Salmón Balestra, Chief IN SOUTH AMERICA standards of the group, which include the Code of Good Corporate Governance. We have an Executive Executive Officer, Mrs. Pilar Vizcarra Albarracín, Chief Administration and Finance Officer, Mr. Turgay CEO Committee made up of four directors designated by the partners: Mrs. Aletta von Massenbach, who serves Kircar, Chief Operating Officer, and Mr. Norbert Onkelbach, Chief Commercial Officer. MESSAGE as president of the Executive Committee, Mrs. Andreea-Diana Pal, Mr. Jorge von Wedemeyer Knigge and MAIN MILESTONES Mrs. Natalie Halich. To comply with the obligations contemplated in the concession contract we have 20 specialized areas, IN 2019 including LAP Project, which is in charge of the JCIA expansion project.
ONGOING TRANSFORMATION Aletta von Massenbach Jorge von Wedemeyer President Director OUR PERFORMANCE Fraport Fraport
ETHICS AND CORPORATE 03 GOVERNANCE Attorney. Director in LAP since June 2016. President Business administrator from the University of Hamburg (Germany). Former President of LAP EXCELLENCE of LAP Executive Committee since March 2018. SERVICES Executive Committee, from February 2008 to March 04 Leader of the Global Investment and Management 2018. Representative of Dresdner Bank EFFICIENT AND area in Fraport. Responsible for the global Lateinamerika (formerly DeutschSüdamerikanische CHIEF EXECUTIVE OFFICER 05 RESPONSIBLE OPERATION investments of Fraport. Also director in Antalaya, Saint Bank) and of Dresdner Bank AG in Peru for 13 years. Current director in Euromotors S.A., Euroinmuebles Petersburg and Xian (China) airports. JUAN JOSE SALMÓN LET’S GROW S.A.C., Altos Andes S.A.C., Comercial del Acero S.A. TOGETHER 06 and other companies forming part of Corporación WE PROTECT Cervesur. 07 OUR ENVIRONMENT OUR TEAM 08 MAKES THE DIFFERENCE
Andreea Pal Natalie Halich ADJUSTMENT LAP PROJECT Director Director ANTON ARAMAYO TO STANDARDS Fraport International Financial Corporation (IFC)
Electrical engineer from the Polytechnic University of MBA from Wharton School. Director of LAP since Bucharest. Since June 2016, director of LAP, and March 2018. Director of Investments at the IFC and since 2017, CEO of Fraport Brazil. CFO in Saint more than twenty years experience in private capital in Petersburg Airport for 7 years and Senior energy, infrastructure and mining, focused on emerging markets. Also director in Pacific Midstream Vicepresident in Fraport AG for 8 years. Ltd., Colombia, and member of the Investment Committee of the Risk Capital group of the IFC.
CHIEF OPERATING CHIEF ADMINISTRATION CHIEF COMMERCIAL OFFICER AND FINANCE OFFICER OFFICER TURGAY KIRCAR PILAR VIZCARRA NORBERT ONKELBACH
SUSTAINABILITY AND ANNUAL REPORT 2019 29 EXCELLENCE THE BEST AIRPORT IN SOUTH AMERICA SERVICES CEO MESSAGE We make sure to build strong 23.6 million passengers attended. MAIN MILESTONES relationships with our customers and 5 new remote rooms for domestic flights IN 2019 have an open and continuous dialogue and 9 double check-in counters. ONGOING in order to provide them with services We recovered the free road under the TRANSFORMATION administration of LAP for better vehicle flow. ensuring the highest quality standards 85 commercial outlets, for 3 of which the OUR PERFORMANCE and exceeding their expectations. contract has been recently awarded. ETHICS AND CORPORATE 03 GOVERNANCE Increase by 32% in the installed capacity of the food court. EXCELLENCE 04 SERVICES EFFICIENT AND 05 RESPONSIBLE OPERATION
LET’S GROW DIFFERENT CUSTOMERS, SAME EXCELLENCE 06 TOGETHER 102-6 / 103-1, 103-2, 103-3 Efficiency, innovation and optimization WE PROTECT 07 OUR ENVIRONMENT Our customers are diverse: Domestic and OUR TEAM 08 MAKES THE DIFFERENCE international airlines, domestic and international Passengers and visitors passengers, companions, concessionaires and Domestic, international ADJUSTMENT and in connection airport operators. We are working for JCIA to give TO STANDARDS them the best experience and allow them to strengthen their businesses and make their opportunities grow. Airlines domestic and international At LAP we aim to constantly measure the satisfaction of our customers. We also work in collaboration with our stakeholders to make improvements and do the necessary follow-up. This is based on the compliance with the Minimum Concessionaires retail Technical Requirements (MTR) established by OSITRAN, in view of our commitments to the Peruvian State.
SUSTAINABILITY AND ANNUAL REPORT 2019 30 PASSENGERS AND VISITORS
103-1, 103-2, 103-3 Infrastructure management
THE BEST AIRPORT NUMBER OF PASSENGERS 2016 2019 (IN MILLIONS) DISTRIBUTION OF PASSENGERS IN 2019 IN SOUTH AMERICA At LAP we make sure to guarantee the (IN MILLIONS) satisfaction of the passengers and visitors and CEO 23.62 MESSAGE continuously improve their experience. In 2019 22.13 18.85 20.61 we exceeded our record of passengers, with a MAIN MILESTONES 10.40 9.91 IN 2019 total of 23.6 million, that is, an increase by 6.5% 9.25 8.41 1.80 ONGOING in respect of 2018. The increase is mainly 6.57 TRANSFORMATION 13.22 4.30 reflected in the domestic passengers and the 10.44 11.35 12.22 6.66 OUR PERFORMANCE explosion of the low cost carrier (LCC) model, 4.30 ETHICS AND CORPORATE 03 GOVERNANCE which transformed the airport dynamics. 2016 2017 2018 2019 Domestic International
EXCELLENCE 04 SERVICES DOMESTIC INTERNATIONAL TOTAL ARRIVALS DEPARTURES CONNECTIONS EFFICIENT AND 05 RESPONSIBLE OPERATION
LET’S GROW 06 TOGETHER
WE PROTECT 07 OUR ENVIRONMENT OUR TEAM 08 MAKES THE DIFFERENCE
ADJUSTMENT TO STANDARDS This growth of passengers means a continuous adaptation and reformulation of our processes in order to manage the present infrastructure and maintain the quality of our services. Since one of our main challenges is the administration of the space available, we are working on the expansion project in a sustained way.
SUSTAINABILITY AND ANNUAL REPORT 2019 31 PASAJEROS Y VISITANTES
In September 2019, JCIA was declared an IATA Level III airport , which allows a constant interaction with airports around the world to ensure In this context, we received an area of 44,603.13 m2 from the THE BEST AIRPORT an appropriate coordination and strict controls. This coordination makes it possible to guarantee that the allocation of slots is managed Peruvian Air Force (FAP) apron. This area was fitted out for its IN SOUTH AMERICA together and not separately. operation, with 8 new aircraft parking positions duly marked and CEO lighted. We also acquired a refueler and a second refueling area We are working on and have invested in several improvements in infrastructure that will make it possible for us to offer a better service: MESSAGE that make it possible to expedite fuel supply to aircraft, which is translated into a reduction in the time required for passengers to MAIN MILESTONES 100% recovery of the free road by relocating IN 2019 the fence through which passengers must New web system for formal services, board. go, expansion of the curve of including requests of information ONGOING the airport access road and on flights, filing of applications placement of new signs and service closure. TRANSFORMATION
OUR PERFORMANCE We added a new jet aircraft refueler to
ETHICS AND CORPORATE supply fuel to aircraft. We now have three 03 GOVERNANCE refueling trucks and a second refueling area that expedite fuel supply to aircraft. EXCELLENCE 04 SERVICES EFFICIENT AND 05 RESPONSIBLE OPERATION
LET’S GROW The first stage of the ACDM (Airport Collabo- TOGETHER Inauguration of 5 new remote Upgrade of the HBS (Hold 8 airport guides who provide 06 rative Decision Making) process started for rooms for domestic departures. Baggage Screening) information and support to WE PROTECT the immediate coordination with airlines OUR ENVIRONMENT 44 rooms to provide services for passengers in the 07 flights. tGrowth by 678 m2 (216 terminal. and and expedited management of OUR TEAM m2 in the first level and 462 take-off and landing, parking and other op- 08 MAKES THE DIFFERENCE m2 in the second level). erations.
ADJUSTMENT TO STANDARDS
Expansion of the check-in area. Increase in the number of We added 44,603.12 m2 from the FAP apron New 9 double counters, waiting seats in to the airport. 8 new aircraft parking posi- making a total of 71 Peru Plaza. (380 m2 more). tions were implemented with lighting and CCTV systems.
It is important for us to comply with the Minimum Technical Inauguration of the interna- tional VIP Sumaq and Requirements (MTR), which compliance is evaluated by OSITRAN. Hanaq lounges. To measure our compliance, we use the service level standards recommended by the IATA. (1) Level III - Coordinator: The airport infrastructure demand exceeds the airport capacity during some operating periods and capacity expansion is not feasible in the short time.
SUSTAINABILITY AND ANNUAL REPORT 2019 32 AIRLINES
THE BEST AIRPORT Passenger experience is a key distinguishing fea- vide them with the resources they require to render IN SOUTH AMERICA ture and an increasingly competitive factor for air- an optimal quality service. They also keep us CEO lines. This means that in the recent years, airlines informed on the trends, within the framework of a MESSAGE are more willing to innovate: They offer more simple transversal management, for their adequate opera-
MAIN MILESTONES digital processes and tailor-made travel models. To tion in the airport. IN 2019 accompany them in this process of transformation, at LAP we capture the needs of each airline and pro- ONGOING TRANSFORMATION
OUR PERFORMANCE NUMBER OF DOMESTIC AND INTERNATIONAL AIRLINES 2015 2019 ETHICS AND CORPORATE 03 GOVERNANCE
EXCELLENCE 04 SERVICES 2015 21 EFFICIENT AND 2016 24 05 RESPONSIBLE OPERATION 2017 27 LET’S GROW 06 TOGETHER 2018 25 WE PROTECT OUR ENVIRONMENT 07 2019 24 OUR TEAM 08 MAKES THE DIFFERENCE
ADJUSTMENT HISTORIC NUMBER OF AIRCRAFT MOVEMENT 2001 2019 (IN THOUSANDS) TO STANDARDS 197.86 192.70 186.80 176.90 166.40 155.10 153.10 148.30 135.10 120.50 105.00 98.70 92.90 77.30 73.30 72.20 72.20 70.30 70.30 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
SUSTAINABILITY AND ANNUAL REPORT 2019 33 Some key actions and guidelines for airline management
THE BEST AIRPORT IN SOUTH AMERICA Follow-up during the Development and proposal of businesses commencement of oper- CEO in new potential routes ations at JCIA, at a com- MESSAGE based on the market mercial and regulatory demand. level. MAIN MILESTONES IN 2019
ONGOING TRANSFORMATION
OUR PERFORMANCE Management, follow-up Management of events ETHICS AND CORPORATE and negotiation of GOVERNANCE for the inauguration of 03 commercials and regu- routes. EXCELLENCE lated contracts. 04 SERVICES EFFICIENT AND 05 RESPONSIBLE OPERATION
LET’S GROW 06 TOGETHER
WE PROTECT Participation in the man- 07 OUR ENVIRONMENT Follow-up of and agement of the airline complement to the growth plan, including the OUR TEAM 08 MAKES THE DIFFERENCE commercial and relevant stakeholders (LAP marketing strategy. Operations and Slot Coordi- nator – DGAC). ADJUSTMENT TO STANDARDS
Commercial management of the improvement pro- cesses of passenger flows inside the airport.
SUSTAINABILITY AND ANNUAL REPORT 2019 34 In 2019 we witnessed a significant increase in the a result of which they positioned as the second larg- low cost carrier model. By the end of the year, est group in the domestic operations, with a 21% DOMESTIC FLIGHTS THE BEST AIRPORT these airlines had transported 4.0 million passen- share, and transported 1.2 million passengers in IN SOUTH AMERICA gers in total, thus growing more than twice (140%) international flights (39% more than in 2018). in comparison to the 1.7 million passengers in CEO CHANGES IN ROUTES AIRLINES THAT CEASED OPERATIONS MESSAGE 2018. This quick expansion enabled these airlines AND AIRLINES THAT STARTED OPERATIONS to have a larger penetration in the local market, as MAIN MILESTONES Reduction by 70% in Avianca operations. SKY started operations with six desti- IN 2019 Avianca cancelled all the routes in the nations (April). local market, except for LIMCUZ (April). Peruvian Airlines ceased operations ONGOING EVOLUTION IN THE MARKET SHARE OF LCCS (October). TRANSFORMATION Sky Airlines started operations to Iquitos, Tumbes and Ayacucho (July). OUR PERFORMANCE LCC LCC LCC Viva Air started operations to Tacna ETHICS AND CORPORATE 0.96 3.96 03 GOVERNANCE 1.65 (April), Cajamarca (April) and Juliaca 4.7% 7.5% 16.8% EXCELLENCE (July). 04 SERVICES Star Peru started operations to Chiclayo, EFFICIENT AND 05 RESPONSIBLE OPERATION (May) and resumed the Cajamarca route (March). LET’S GROW TOGETHER 06 LATAM started operations to Ilo (March). WE PROTECT FSC FSC 07 OUR ENVIRONMENT FSC 19.65 20.47 19.66 OUR TEAM 95.3% 92.5% 83.2% 08 MAKES THE DIFFERENCE 2017 2018 2019 ADJUSTMENT
TO STANDARDS Full Service Carrier (FSC) type service model: They are generally airlines offering a full service to the passenger, that is, the value of the air ticket includes catering, baggage, entertainment, etc. Low Cost Carrier (LLC) type service model: Additional services are generally sold separately. The base price and the additional price for hold baggage, catering, etc. are paid.
The new trends and preferences of passengers cargo flights and in the routes, some airlines have had an impact on the operations of airlines. ceased operations and others started operating in For some of them it was an opportunity to grow, the airport. while others had to stop their operations or reduce the routes offered. At JCIA, significant changes occurred in 2019 in the domestic, international and
SUSTAINABILITY AND ANNUAL REPORT 2019 35 INTERNATIONAL FLIGHTS CARGO FLIGHTS
AIRLINES THAT CEASED AIRLINES THAT CEASED CHANGES IN ROUTES OPERATIONS AND AIRLINES CHANGES IN ROUTES OPERATIONS AND AIRLINES THE BEST AIRPORT THAT STARTED OPERATIONS THAT STARTED OPERATIONS IN SOUTH AMERICA LATAM opened 5 new routes: Cali (January), Tame closed its stations in Lima and Avianca reduced its cargo traffic by 58% in the Viva Air implemented the cargo business CEO Calama (July), Brasilia (November), Porto stopped its operations (April). domestic market, which is related to the reduc- in February, mainly to Iquitos, Arequipa MESSAGE Alegre and Montego Bay (December). tion in its commercial operations. and Cuzco. MAIN MILESTONES IN 2019 Avianca cancelled its operations to six interna- GOL entered the Peruvian market with LATAM continues reducing its cargo aircraft DHL started cargo operations (March). tional destinations: Mendoza (February), Or- a route to Sao Paulo (December). operations to migrate to the commercial cargo ONGOING lando (June), Havana, Cali, Medellin and Santa model. TRANSFORMATION Cruz (November).
OUR PERFORMANCE LATAM increased its capacity for 3 of the 6 ETHICS AND CORPORATE destinations Avianca left: Cali, Medellin and 03 GOVERNANCE Santa Cruz. EXCELLENCE 04 SERVICES Interjet opened the Lima – Cancun route EFFICIENT AND (June). 05 RESPONSIBLE OPERATION Viva Air started operations to Cartagena LET’S GROW 06 TOGETHER (June).
WE PROTECT 07 OUR ENVIRONMENT JetSmart inaugurated the Lima – Concepción route (December). OUR TEAM 08 MAKES THE DIFFERENCE Spirit increased its daily operation from 4 ADJUSTMENT months a year in 2018 to 6 months in 2019. TO STANDARDS Significant additions to Europe: - Iberia added three frequencies, with up to ten daily frequencies to Madrid. - Air France added two frequencies for the winter season (November - March). - LATAM improved its offer of seats to Madrid by 32% due to change of aircraft from B767-300 to B787-900.
SUSTAINABILITY AND ANNUAL REPORT 2019 36 COMMERCIAL PARTNERS
At JCIA commercial customers form part of the travel experience of the passengers and companions. 4 new commercial outlets were also opened: THE BEST AIRPORT For this reason, we demand commercial customers compliance with standards that meet the needs IN SOUTH AMERICA of passengers and their companions and offer them quality services for their businesses to grow. CEO MESSAGE FIGURES OF COMMERCIAL CUSTOMERS IN 2019 MAIN MILESTONES IN 2019
ONGOING TRANSFORMATION 85 49 19 03 From April to June 2019 we remodeled the food us to offer a better experience to the passengers OUR PERFORMANCE court, increasing its installed capacity by 32.1%, and their companions, providing them with a warm from 420 to 555 seats. A modern design was ETHICS AND CORPORATE and pleasant environment before traveling. 03 GOVERNANCE implemented, significantly improving the organization, COMMERCIAL RETAIL RENEWAL OF AWARD OF EXCELLENCE order and quality of the services given, which allowed 04 SERVICES OUTLETS CONCESSIONAIRES CONTRACTS CONTRACTS TO NEW COMPANIES EFFICIENT AND 05 RESPONSIBLE OPERATION
LET’S GROW TOGETHER 06 In 2019 we have 85 commercial outlets, the contracts for 3 of which were awarded to new WE PROTECT companies: 07 OUR ENVIRONMENT OUR TEAM 08 MAKES THE DIFFERENCE
ADJUSTMENT TO STANDARDS
Rosatel Juicy Lucy Safe Bag Euroretail opened its Premium Burger A company Rosatel shop in the opened its Juicy Lucy engaged in public zone of the restaurant in the baggage wrapping international arrival public zone of the with 2 modules in the hall. mezzanine floor. public zone of the check-in area.
SUSTAINABILITY AND ANNUAL REPORT 2019 37 CUSTOMER SATISFACTION
At LAP we make sure to offer an optimal service the surveys are passengers and companions, Satisfaction of airlines THE BEST AIRPORT quality to our customers and for this purpose, we airlines and concessionaires. The satisfaction of airlines significantly increased The airlines agreed that the service rendered by IN SOUTH AMERICA conduct surveys every six months to know the by about 7.4% between the first and second CORPAC has improved. The domestic and CEO opportunities of improvement and execute action In 2019 we modified the satisfaction questionnaire semesters. The best rated items were the following: international airlines also agreed that LAP is more MESSAGE plans. The three customers with which we conducted to make it simpler, with the following results: The location of the maintenance warehouses, the willing to meet the requirements of the customer number of check-in counters, the location of the MAIN MILESTONES and that the duty manager’s performance has IN 2019 delayed baggage checkrooms and the improved. On the other hand, the international and management by the terminal supervisor. cargo airlines agreed with the improvement of the ONGOING GOAL 2018 2019 service provided by third parties. TRANSFORMATION Passengers and companions: 80% of OUR PERFORMANCE the parameters must exceed the value 93.5% 90.3% AIRLINE SATISFACTION WITH LAP of 3.7. ETHICS AND CORPORATE 03 GOVERNANCE Airlines: 60% of the parameters must COMPONENT 2018 2019 EXCELLENCE 60.1% 67.5% exceed the value of 3.3. 04 SERVICES Domestic commercial airlines 18.6% 89.9% EFFICIENT AND RESPONSIBLE OPERATION Concessionaires: 75% of the parame- International commercial airlines 43.5% 91.7% 05 65.6% 80.0% ters must exceed the value of 3.6. LET’S GROW 06 TOGETHER Cargo airlines 40.0% 100.0%
WE PROTECT Note: Customers rate their satisfaction from 1 to 5, where the Top 2 Box is 5 “very 07 OUR ENVIRONMENT satisfied”, and 4, “satisfied”. OUR TEAM Satisfaction of concessionaires 08 MAKES THE DIFFERENCE In the 2019 satisfaction survey the concessionaires strengthened coordination with the company in ADJUSTMENT rating of LAP management and of the JCIA charge of cleaning the restrooms, and in October TO STANDARDS decreased between the first and second we started improvements in the information flow of semesters. To improve our management we have files.
SATISFACTION ABOUT THE RELATIONSHIP WITH LAP GENERAL SATISFACTION WITH JCIA
2018 2019 2018 2019 COMPONENT COMPONENT S1 S2 S1 S2
Concessionaires 93.5% 91.8% Concessionaires 87.1% 82%
SUSTAINABILITY AND ANNUAL REPORT 2019 38 Satisfaction of passengers and companions Complaints The results in the category “companions” Protecting the security of our users is presently In order to continue improving , we followed the regulatory procedures established by OSITRAN THE BEST AIRPORT improved as regards the service provided to not limited to add seats. Finally, we adopted and provided an excellence service to our customers. For this reason, we took their suggestions IN SOUTH AMERICA them by the staff, the information given and the actions together with the Policía Nacional del and/or concerns into consideration, for which we used the following channels: CEO waiting time. However, we observed a light Perú (PNP) (Peruvian National Police) to have MESSAGE decrease in the satisfaction of the other users more policemen in the zone. MAIN MILESTONES with aspects, such as the possibility to find a IN 2019 seat, the lighting in the parking lot and police ONGOING control. In response to this, we measured the TRANSFORMATION Complaint Front lighting in the parking lot and in the walkways book desk OUR PERFORMANCE and thus, we met the regulatory requirements. ETHICS AND CORPORATE 03 GOVERNANCE
EXCELLENCE 04 SERVICES GENERAL SATISFACTION WITH JCIA EFFICIENT AND Attention 05 RESPONSIBLE OPERATION channels LET’S GROW E-mail Complain 06 TOGETHER 2019 form
WE PROTECT COMPONENT 07 OUR ENVIRONMENT S1 S2 OUR TEAM 08 MAKES THE DIFFERENCE Domestic departures 82.7% 82.4%
ADJUSTMENT 85.3% 87.9% TO STANDARDS International departures Web Telephone page for complaints Domestic arrivals 90.9% 88.9%
International arrivals 93.8% 87.0%
Passengers in transit 89.6% 89.3% During the year we improved the web page for the users to have access to the online complaint form in a simpler and more direct way. In 2019 we received Companions 81.4% 84.0%
SUSTAINABILITY AND ANNUAL REPORT 2019 39 Initiatives with our customers In order for the passengers and the customers to be the core of our decisions, in May 2019 we started We worked to strengthen our channels of communication with our customers and generate synergies be- the PAX Monitor, a continuous monitoring study of the demographic, commercial and satisfaction tween LAP business units: THE BEST AIRPORT profile of the passenger , in which more than 4700 passengers were surveyed during the year. The IN SOUTH AMERICA half-year study of the mystery shopper was also optimized to obtain actionable results. CEO MESSAGE In turn we conducted 5 campaigns during the year to consolidate our relationship with our commercial MAIN MILESTONES customers: IN 2019
ONGOING TRANSFORMATION Surprising Mom Mother’s Day campaign covering more than 800 thousand people in social media with the OUR PERFORMANCE participation of 72 commercial outlets. LATAM Airlines was a key partner in the spreading of the campaign. We created two marketing We integrated the retail ETHICS AND CORPORATE 03 GOVERNANCE committees and launched and aviation services busi- the News Bulletin for our retail nesses in a strategic way, EXCELLENCE 04 SERVICES customers. These initiatives incorporating the airlines Pan American and Parapan American Games, Lima 2019 promoted the exchange of into the retail promotions. EFFICIENT AND As the host country of the games, we aimed to make JCIA a welcoming place with a joyful and ideas and allowed us to Thus, drawings were made 05 RESPONSIBLE OPERATION proud environment. The campaign covered more than 1.8 million people in social media. share relevant information together with KLM and LET’S GROW 06 TOGETHER with our strategic partners. LATAM Airlines.
WE PROTECT 07 OUR ENVIRONMENT Golden Ticket A campaign of instant prizes to increase the ratio of buyers in international departures. A total OUR TEAM of 9,200 passengers participated in this campaign in which KLM was our communication partner. 08 MAKES THE DIFFERENCE
ADJUSTMENT TO STANDARDS Finally, in order to become a closer and more direct brand, we started changes and efficiencies to approach Gastronomic Check-in We conducted the first BTL campaign to contribute to increase the transactions of the food our audiences and stakeholders. The most important were the following: establishments. The campaign was carried out in social media as “Almuerza Airport” and covered more than 3 million people. Lima Airport Shopping: This is an extension of the We consolidated our digital assets in Facebook and retail business brand, which was absorbed by Lima Instagram: Thanks to this, we broadened the scope by Airport Partners. This brand will now manage the more than 70.0%. This allows us to continue building a Christmas is Sharing commercial offer of the airport. consistent and integrated strategy in all the platforms. The purpose of this campaign was to improve the passenger experience taking advantage of the joyful environment at the end of the year. This campaign included 27 commercial customers, an emotional video that was seen by more than 1.5 million people and an alliance with LATAM Airlines for drawings for air tickets.
SUSTAINABILITY AND ANNUAL REPORT 2019 40 EFFICIENT AND RESPONSIBLE OPERATION THE BEST AIRPORT IN SOUTH AMERICA Our operations are carefully CEO WORLD CLASS STANDARDS managed in order to offer a top MESSAGE 103-1, 103-2, 103-3 Efficiency, innovation and optimization MAIN MILESTONES quality experience in a hub airport in We aspire to the excellence of our operations and to be a reliable company for our passengers and their IN 2019 Latin America, complying with the companions and for our strategic partners. For this reason, we have established three cross pillars that allow us regulations in force and demanding US$388.46 million ONGOING to operate in an efficient and safe way, thus complying with the existing regulations and commitments.. TRANSFORMATION in revenues from standards and ensuring the welfare of operations OUR PERFORMANCE every person working at our facilities.
ETHICS AND CORPORATE PILARES DESCRIPCIÓN 03 GOVERNANCE EXCELLENCE We use the infrastructure correctly to ensure follow-up of all the processes SERVICES 04 during the operation. We constantly coordinate with the stakeholders, who EFFICIENT AND form part of the airport operation. 05 RESPONSIBLE OPERATION EFFICIENCY LET’S GROW 0 aviation accidents 89.13% of suppliers TOGETHER 06 caused by the airdrome approved the OHSE inspection WE PROTECT We meet the requirements under our contractual commitment, the State 07 OUR ENVIRONMENT requirements and the sector standards. We constantly monitor the results OUR TEAM of time measurements in the key processes of passenger flow and gener- 08 MAKES THE DIFFERENCE COMPLIANCE ate improvements to increase the satisfaction of our stakeholders.
ADJUSTMENT TO STANDARDS We do not give way on safety and security; we identify, manage and miti- gate the risks in order to ensure an uninterrupted operation, aiming to see 21 infrastructure 3 drills of evacuation to the integrity of every member of the airport community, the infrastruc- inspections more in case of earthquake SAFETY AND ture and the equipment. than in 2018 at JCIA terminal SECURITY
Although we have the OHSAS 18001 certification, the three certifications: ISO 9001 (Quality), ISO 14001 occupational health and safety standard in force, we (Environment) and ISO 45001 (Occupational Health aim for continuous improvement. We are transitioning and Safety). 0.40 ratio of bird strikes to the ISO 45001 standard. Our goal for 2020 is to have
SUSTAINABILITY AND ANNUAL REPORT 2019 41 USE OF TECHNOLOGY, INNOVATION AND SAFETY AND SECURITY
THE BEST AIRPORT IN SOUTH AMERICA Information technologies (IT) are an essential IN INFORMATION SYSTEMS: CEO MESSAGE support for the management of the operations of an airport of great importance such as JCIA, MAIN MILESTONES AIRPORT INFORMATION TUUA SYSTEM META4 MOBILE APPLICATIONS IN 2019 which operates 24/7 / 365 days a year, and for SYSTEM AIS E GATES PEOPLENET SYSTEM FOR PASSENGERS the development of its businesses and the ONGOING TRANSFORMATION management of its infrastructure. It enables the automation of the In order to speed up the flow of The Meta4 PeopleNet system was Two mobile geolocation applications integration of the main operational passengers in the airport and reduce implemented to automate the training for passengers were implemented: OUR PERFORMANCE and business processes, which are the queues to enter the departure process. In addition, this system has LIMA AIRPORT and SÍGUEME ETHICS AND CORPORATE In the recent years, with the growth of its planning, control and efficient allocation area, we installed 2 double e-gates in information that integrates data (FOLLOW ME) (for passengers with GOVERNANCE of resources (departure gates, the TUUA control zone in the management to make the interaction visual disability). Both apps are 03 operations, LAP has continued investing in conveyor belts for baggage, check-in mezzanine floor and 1 double e-gate with collaborators dynamic. available to the users and can be EXCELLENCE 04 SERVICES technology and digitization to make operational counters and buses) for flight service. in the northern control zone. 1 double downloaded from the internet. The AIS automatically exchanges e-gate has also been installed in the EFFICIENT AND support processes quicker and simpler, provide It automates and speeds up 05 RESPONSIBLE OPERATION information with these systems: FIDS, zone for transfer passengers and is the life cycle of the These apps allowed our visitors to: a better service to airlines, passengers and PAS, TUUA, web page, Corpac AFTN now being tested. In total, there are 16 collaborator in the company. LET’S GROW and Type-B messaging of airlines and of these equipment, which offers the TOGETHER It provides a friendly interface 06 users and ensure the safety, security and Enjoy the most pleasant and airport partners. This includes the following advantages: for an easier use of the WE PROTECT best guided experience in the integrity of our critical systems and following: internal procedures. 07 OUR ENVIRONMENT airport. It cultivates the loyalty of communications as well as provide efficient More comfort and less time in Quickly find services and OUR TEAM Accurate, reliable and users, giving them a closer 08 MAKES THE DIFFERENCE queues for passengers. commercial outlets. support to the administrative processes. up-to-date data that improve approach to the company. Passengers are counted invoicing efficiency. With the integrated ADJUSTMENT Technological support has been offered to 38 accurately. Automated data exchange functionality of its modules, it TO STANDARDS More security since the services and more than 50 innovation projects that reduces manual tasks promotes talent. ranges established in the and improve quality. have been designed and implemented (Master boarding pass are validated. Quick access to information Plan - Information Communications and that allows an effective management of operations. Technology). Early availability of data that supports a better planning and use of resources. The main projects we implemented in 2019 were the following:
SUSTAINABILITY AND ANNUAL REPORT 2019 42 IN INFRASTRUCTURE, ADMINISTRATION THE BEST AIRPORT AND SAFETY AND SECURITY: IN SOUTH AMERICA
CEO INFRASTRUCTURE ADMINISTRATION MESSAGE AND SERVICES AND SECURITY OF ITCS
MAIN MILESTONES The whole gigabit network was con- Virtualization of applications and IN 2019 verted to 10G with the installation of desks: We implemented a new ONGOING 112 new CISCO equipment. system for remote and direct access TRANSFORMATION We implemented an emergency net- to the internal applications of the com- OUR PERFORMANCE work to maintain the critical airport pany maintaining security. systems operating (CUTE, Migra- Change of secondary perimeter fire- ETHICS AND CORPORATE 03 GOVERNANCE tions, RQ, FIDS) in case of any con- walls: Installation, configuration and
EXCELLENCE tingency. startup of two highly-available new 04 SERVICES New Cisco and Panasonic tele- firewalls. EFFICIENT AND phone exchanges with more capaci- Renewal of VPN SSL: We installed 05 RESPONSIBLE OPERATION ty and new unified messaging ser- and configured two highly-available LET’S GROW 06 TOGETHER vices were installed. new VPN SSL.
WE PROTECT 300 HP computers and laptops were 07 OUR ENVIRONMENT acquired to replace old ones. OUR TEAM 08 MAKES THE DIFFERENCE MAIN IMPACTS MAIN IMPACTS ADJUSTMENT Safer information exchange be- Quicker data transfer TO STANDARDS tween LAP and other companies Less time of response to digital pro- Safe access to data cesses Avoidance of loss of information More speed in digital processes Reduction of stoppage of service Increase in operational efficiency Reduction of stoppage
SUSTAINABILITY AND ANNUAL REPORT 2019 43 FINANCIAL RESULTS
THE BEST AIRPORT Since the beginning of the concession contract, we make commitments to the State, investing in a safe We have always reached all the investment milestones required under the concession contract. IN SOUTH AMERICA set out, through a responsible and prudent man- and efficient infrastructure for the development of Likewise, since 2009, we have invested in the improvement and modernization of the airport CEO agement of our resources, to provide the best ser- our operations. infrastructure. The total investment by the end of 2019 was US$ 560.37 million. MESSAGE vices to our customers and passengers, and also According to the concession contract, we guarantee faithful compliance with our obligations MAIN MILESTONES through a letter of guarantee in favor of the State for a value of US$16.00 million. IN 2019 COMMITMENTS ONGOING In addition, we maintain our aviation and terrorism liability, all-risk insurance, war policy and TRANSFORMATION Since the beginning of the concession until 2019 we regulatory tariff and taxes. Those funds are general and employer's liability insurance policies. have transferred US$2,685.32 million to the Peruvian managed by the Peruvian State and are used for OUR PERFORMANCE State, comprising the compensation for the the development of the airport activity in provinces. ETHICS AND CORPORATE 03 GOVERNANCE concession, the transfers to CORPAC, OSITRAN
EXCELLENCE 04 SERVICES COMPOSITION OF THE TRANSFERS TO THE EFFICIENT AND 05 RESPONSIBLE OPERATION PERUVIAN STATE IN MILLION US$ - 2001-2019
LET’S GROW 06 TOGETHER 671.39 WE PROTECT 07 OUR ENVIRONMENT 25.0% OUR TEAM 08 MAKES THE DIFFERENCE COMPENSATION TO THE PERUVIAN STATE ADJUSTMENT TO STANDARDS TRANSFERS TO CORPAC 37.15 OSITRAN REGULATORY TARIFF 1.4%
TAXES
479.53 1,497.24 17.9% 55.8%
The compensation for the concession paid to the Peruvian State is equivalent to 46.51% of the operating revenues. Transfers to CORPAC: 20% of the international TUUA plus 50% of the take-off and landing revenues. OSITRAN regulatory tariff represents 1% of the total revenues.
SUSTAINABILITY AND ANNUAL REPORT 2019 44 REVENUES Aeronautical revenues passengers), (ii) take-off and landing (TOL), (iii) Our operating revenues in 2019 were US$388.46 million2, representing a growth of 4.0% Aeronautical revenues were US$279.15 million, that is, 71.9% of the total operating revenues, aircraft parking, (iv) baggage screening, (v) compared to 2018. THE BEST AIRPORT representing a growth of 2.7% compared to loading bridges, (vi) cargo, (vii) fuel toll, and (viii) IN SOUTH AMERICA 20183. ramp services. All the tariffs are regulated by OSITRAN through price ceiling4 . CEO MESSAGE Aeronautical revenues are comprised of (i) the EVOLUTION OF OPERATING REVENUES: 2001-2019 (MILLION US$) TUUA (domestic and international departing MAIN MILESTONES IN 2019
ONGOING TRANSFORMATION 400.00 BREAKDOWN OF THE AERONAUTICAL REVENUES (MILLION US$)
OUR PERFORMANCE
ETHICS AND CORPORATE 03 GOVERNANCE 109.31 IN MILLIONS US$ 2018 2019 EXCELLENCE 300.00 SERVICES 04 AERONAUTICAL REVENUES 271.71 279.14 EFFICIENT AND 05 RESPONSIBLE OPERATION Aviation revenues 210.04 215.14
LET’S GROW 279.15 06 TOGETHER 200.00 TUUA 162.42 165.97
WE PROTECT Take-off and landing 43.83 44.68 07 OUR ENVIRONMENT Aircraft parking 3.59 3.65 OUR TEAM 08 MAKES THE DIFFERENCE Baggage security service 0.20 0.84 100.00 Infrastructure revenues 50.82 52.53 ADJUSTMENT TO STANDARDS Loading bridges 16.72 17.63
Cargo 6.78 6.36 0.00 Fuel toll 27.32 28.54
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Ramp services 10.85 11.47
AERONAUTICAL REVENUES NON AERONAUTICAL REVENUES
2 They do not include the construction revenues reported in the financial statements according to the IFRIC IAS. 4 It consists in the application of the RPI formula (US inflation) less the X factor of productivity defined as LAP productivity revenues LAP in relation to the In 2019 US$9.09 million were set aside to reflect the effect of the payments made in excess by LATAM from 2013 to 2019 because the airline declared productivity revenues of the Peruvian economy as a whole. The present X factor estimated by OSITRAN is 3.26%. domestic transfer passengers, who are exempted from the TUAA, as departing passengers. This refund request is being assessed and verified. Without said provision the operating revenues would have been US$397.55 million and the annual growth, 6.5%. 3 Without LATAM’s claim provision, the aeronautical revenues would have been US$288.24 million, that is, 6.1% more than in 2018.
SUSTAINABILITY AND ANNUAL REPORT 2019 45 International TUUA revenues: THE BEST AIRPORT IN SOUTH AMERICA The international TUUA revenues added up to INTERNATIONAL TUUA BY REGION US$110.94 million, that is, 8.1% more com- CEO pared to 2018, which is mainly explained by the MESSAGE 10.5% 9.2% increase in international departing pas- 43.5% MAIN MILESTONES SOUTH AMERICA IN 2019 sengers. The growth of passengers by regions 15.5% was: (i) 9.1% in South America, (ii) 9.5% in CENTRAL ONGOING AMERICA North America, (iii) 10.3% in Europe, and (iv) TRANSFORMATION 6.0% in Central America. EUROPE OUR PERFORMANCE NORTH AMERICA ETHICS AND CORPORATE 03 GOVERNANCE 30.5%
EXCELLENCE 04 SERVICES EFFICIENT AND 05 RESPONSIBLE OPERATION
LET’S GROW 06 TOGETHER The domestic TUUA revenues amounted to DOMESTIC TUUA BY PERUVIAN REGION 5 WE PROTECT US$55.04 million (7.9% below 2018) . The do- 07 OUR ENVIRONMENT mestic departing passengers had an annual 3.9% OUR TEAM 48.7% increase of 6.4%. The intense price competi- SOUTH 08 MAKES THE DIFFERENCE 19.2% tion has benefitted the low cost carriers, such CENTER ADJUSTMENT as Viva Air and Sky, and has made Others, TO STANDARDS such as LC Peru and Peruvian Airlines, with- EAST drew from the market, in November 2018 and October 2019 respectively, while Avianca NORTH reduced its operations. LATAM is still the 28.2% leader in the market with a 61% market share, followed by Viva Air with 13%, Sky, with 9%, Avianca, with 4%, and Star Peru, with 3%.
5 Without the effect of LATAM’s provision, the domestic TUUA revenues would be US$64.13 million, representing an annual growth of 7.3%.
SUSTAINABILITY AND ANNUAL REPORT 2019 46 In turn, the take-off and landing (TOL) revenues were US$44.68 million and have increased by 1.9% in respect of 2018. This is a consequence of the 197,870 movements (2.7% growth 2.7% compared to 2018), with a total of 17.46 million MTOW6 (5.7% growth in respect of 2018), which offset the negativa variation THE BEST AIRPORT of 2.1% in the tariffs with respect to 2018. IN SOUTH AMERICA
CEO MESSAGE BREAKDOWN OF THE INTERNATIONAL AND DOMESTIC TOL REVENUES7
MAIN MILESTONES IN 2019 INTERNATIONAL DOMESTIC TOL REVENUES TOL REVENUES ONGOING In 2019 the international TOL revenues In 2019 the domestic TOL revenues were TRANSFORMATION added up to US$32.14 million. Compared to US$9.92 million and increased by 7.0% com- OUR PERFORMANCE 2018, this represents an increase of 1.2%, pared to 2018. These revenues were generat- ETHICS AND CORPORATE which was generated by 78,376 aircraft ed by 106,885 aircraft movements (growth del 03 GOVERNANCE movements (growth of 2.2%) and 9.13 mil- 3.4%), with a total of 7.44 million MTOWs EXCELLENCE 04 SERVICES lion MTOWs (growth of 3.4%). (growth of 10.6%). EFFICIENT AND 05 RESPONSIBLE OPERATION
LET’S GROW 06 TOGETHER Loading bridge revenues were US$17.63 million, in the period, which reflects an increase by 4.4% in WE PROTECT with an annual growth of 5.4%. In total, 65,114 load- respect of 2018. 07 OUR ENVIRONMENT ing bridge operations were carried out (4.8% more OUR TEAM 08 MAKES THE DIFFERENCE in comparison to 2018), with 111,899 hours of use Ramp services revenues added up to US$11.47 (3.5% more compared to 2018) or an average of million, with an annual growth of 5.7% resulting ADJUSTMENT TO STANDARDS 1.72 hours of use for the operation. from the 98,929 operations (2.7% more in compari- son to 2018). Fuel toll revenues amounted to US$28.54 million and grew by 4.4% in comparison with 2018. This is related to the 337.70 million gallons of fuel supplied
6 The maximum take-off weight, also known as MTOW, is the maximum weight of an aircraft with which the pilot is authorized to take off. The unit of measurement is tons. 7 Additionally, the company had revenues for cargo and other operations for US$2.6 million.
SUSTAINABILITY AND ANNUAL REPORT 2019 47 Non-aeronautical revenues THE BEST AIRPORT Non-aeronautical revenues came to US$109.31 million in 2019, representing 28.1% of the op- Retail revenues grew by 6.4% compared to 2018. This increase is mainly reflected in the following IN SOUTH AMERICA erating revenues, with a growth of 7.5% in respect of the previous year. The commercial reve- items: CEO nues with the largest share are the retail sales, which represent 19.0% of the operating reve- MESSAGE nues. MAIN MILESTONES SHOPPING SERVICES IN 2019 FOOD BREAKDOWN OF THE NON-AERONAUTICAL REVENUES (IN MILLION US$) DUTY FREE RETAIL SALES VIP LOUNGES ONGOING AND BEVERAGES TRANSFORMATION Revenues reached Revenues amounted to Revenues added up to Revenues were US$10.27 IN MILLIONS US$ 2018 2019 OUR PERFORMANCE US$26.85 million, 5.2% US$10.02 million, 3.6% US$13.45 million, 8.9% million, representing a more than in 2018, due more than in 2018, due more than in 2018, due growth of 11.3% resulting ETHICS AND CORPORATE NON-AERONAUTICAL REVENUES 101.66 109.31 03 GOVERNANCE to the better contractual to the better perfor- to the revenues of the from the expansion of the
EXCELLENCE Commercial Revenues 83.67 88.39 conditions. mance of some conces- new operators and a operations area as a 04 SERVICES sionaires. better performance of result of the inauguration Vehicle parking 9.42 9.45 EFFICIENT AND some concessionaires. of the Hanaq Lounge in RESPONSIBLE OPERATION 05 Real property 4.89 5.23 August 2018 and the LET’S GROW Sumaq Lounge in May TOGETHER Fixed income 2.08 2.25 06 2019 as well as the better Utilities 2.81 2.98 WE PROTECT contractual conditions. OUR ENVIRONMENT 07 Retail 69.26 73.71 OUR TEAM 08 MAKES THE DIFFERENCE Shopping 35.21 36.88 Advertising 4.23 4.65 ADJUSTMENT Revenues from aviation services were On the other hand, the compensation to the Services 29.83 32.19 TO STANDARDS US$18.22 million, representing an increase by Peruvian State for the concession amounted to Aviation services 16.59 18.22 9.8% in relation to 2018, which is explained by US$ 158.53 million and the compensation to Other revenues 1.50 2.69 the good performance in catering, storage and CORPAC, to US$ 44.53 million, so LAP’s net peripheral equipment services (lease of electric revenues were US$ 185.40 million or 47.7% refueling equipment for aircraft). from the total revenues. The operating costs reached US$ 56.99 million (a positive variation of 16.0% in respect of 2018).
SUSTAINABILITY AND ANNUAL REPORT 2019 48 EBITDA
The EBITDA was US$128.41 million in 2019, with a margin of 33.1% over the operating revenues. THE BEST AIRPORT IN SOUTH AMERICA
CEO MESSAGE
MAIN MILESTONES VOLUTION OF THE EBITDA 2001-2019 (MILLION US$) ESTIMATED EBITDA AND OPERATING PROFITS: 2018 - 2019 IN 2019
ONGOING 140.00 128.41% 40.0% TRANSFORMATION IN MILLION US$ 2018 2019 120.00 35.0% OUR PERFORMANCE OPERATING REVENUES 373.38 388.46 100.00 30.0% ETHICS AND CORPORATE 33.1% Construction revenues 49.81 99.57 GOVERNANCE 03 25.0% 80.00 EXCELLENCE GROSS REVENUES 423.18 488.03 04 SERVICES 20.0% 60.00 Compensation for the concession -153.20 -158.53 EFFICIENT AND 15.0% 05 RESPONSIBLE OPERATION 40.00 CORPAC fees -42.45 -44.53 10.0% LET’S GROW -49.81 -99.57 06 TOGETHER Cost of the construction revenues 20.00 5.0% WE PROTECT NET REVENUES 177.73 185.40 07 OUR ENVIRONMENT 0.00 0.0% OUR TEAM 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Operating and administrative revenues -49.11 -56.99 08 MAKES THE DIFFERENCE EBITDA 128.62 128.41 ADJUSTMENT EBITDA LEFT AXIS EBITDA MARGIN % RIGHT AXIS TO STANDARDS Depreciation -1.65 -1.85 Amortization -11.46 -9.98
OPERATING PROFIT 115.51 116.58
The EBITDA margin decreased by 0.2% in respect of 2018 for the following three reasons: (i) increase in LAP revenues (+4.0%) boosted by the increase in passenger traffic; (ii) reduction in income due to the effect of provisions and (iii) increase in the operating expenses by 16.0%, mainly due to higher expenses in personnel, maintenance and administration.
SUSTAINABILITY AND ANNUAL REPORT 2019 49 DEPRECIATION AND AMORTIZATION NET PROFIT EVOLUTION 2001-2019 (MILLION US$)
Depreciation and amortization year 2019 added up to a total of US$11.83 million, representing a reduction by 9.8% compared to the previous year. This reduction was mainly because the 100.00 30.0% THE BEST AIRPORT 8 94.34 IN SOUTH AMERICA amortization period of some investments ended in 2019, such as the recapping of the runway 25.0% and the taxiways. CEO 80.00 24.3% MESSAGE 20.0% As a consequence of the above, the net profit in 2019 was US$ 116.58 million, 0.9% more than MAIN MILESTONES in 2018. 60.00 IN 2019 15.0%
ONGOING 10.0% TRANSFORMATION 40.00 NET PROFIT OUR PERFORMANCE 5.0%
ETHICS AND CORPORATE 20.00 GOVERNANCE In 2019 our net profit was US$94.34 million, 2.6% more than in 2018, with a net margin of 24% in 03 0.0% respect of the operating revenues. EXCELLENCE 04 SERVICES 0.00 -5.0% EFFICIENT AND 05 RESPONSIBLE OPERATION LET’S GROW BREAKDOWN OF THE ESTIMATED NET PROFIT 2018 - 2019 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 06 TOGETHER
WE PROTECT NET PROFIT LEFT AXIS NET MARGIN % RIGHT AXIS 07 OUR ENVIRONMENT OUR TEAM IN MILLION US$ 2018 2019 08 MAKES THE DIFFERENCE Operating profit 115.51 116.58 ADJUSTMENT CASH FLOW TO STANDARDS Net financial income 2.24 4.57 The operating cash flow generated in 2019 In years 2018 and 2019 there were no financing Profit before taxes 117.75 121.15 amounted to US$104.15 million, US$8.46 million cash flows because no dividends were paid and no Income tax -25.83 -26.81 less than in 2018, mainly due to variations in the loans were obtained or paid. NET PROFIT 91.92 94.34 working capital9. Consequently, the result of the cash movements in The cash flow used in investments in 2019 reached 2019 was negative by US$1.78 million and the final US$105.93 million, US$59.93 million more than in cash balance was US$179.37 million. 2018, mainly due to investments in the expansion project (US$86.75 million in 2019 vs US$36.43 million in 2018). 8 Integral reinforcement of the runway with asphalt or cement layer. 9 In March 2019 we paid more income tax for fiscal year 2018.
SUSTAINABILITY AND ANNUAL REPORT 2019 50 INVESTMENTS CAPEX 103-1, 103-2, 103-3 Infrastructure management
Up to 2019, the total investments, since the beginning of the concession, reached US$560.37 million. They COMPOSITION OF THE 2019 INVESTMENTS (MILLION US$) THE BEST AIRPORT are distributed in fixed assets (personal property and others) for US$33.22 million and intangibles IN SOUTH AMERICA (infrastructure works of the concession) for US$527.15 million. CEO 16.5 MESSAGE 16%
MAIN MILESTONES IN 2019 EVOLUTION OF INVESTMENTS (MILLION US$)
ONGOING EXPANSION PROGRAM TRANSFORMATION 600 EXISTING INFRASTRUCTURE OUR PERFORMANCE 560.37 500 ETHICS AND CORPORATE 03 GOVERNANCE 400
EXCELLENCE 300 04SERVICES 89.24 EFFICIENT AND 200 84% 05 RESPONSIBLE OPERATION 100 105.74 LET’S GROW TOGETHER 06 0 WE PROTECT 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 07 OUR ENVIRONMENT OUR TEAM 08 MAKES THE DIFFERENCE ACCUMULATED INVESTMENTS INVESTMENTS ADJUSTMENT TO STANDARDS
Investments in year 2019 added up to US$105.74 investments in the existing infrastructure (new million. They were financed with own resources. domestic remote gates, BHS outbound, integration From that amount, US$89.24 million were destined of the Peruvian Air Force apron, improvement of to the expansion project (design, early works, the gigabit 10 G network, implementation of AODB, indirect expenses, management services and RMS, FMS and Middleware, expansion of the consulting services) and US$16.50 million, to domestic baggage claim area, among others).
SUSTAINABILITY AND ANNUAL REPORT 2019 51 SUPPLIER MANAGEMENT NUMBER OF SUPPLIERS TOTAL AMOUNT OF PURCHASES 2017 - 2019 2017 2019 (MILLION US$) 102-9, 204-1, 308-1, 308-2, 414-2 103-1, 103-2, 103-3 Conditions required for the expansion project 54.70 THE BEST AIRPORT Today we work with 726 suppliers in the several During 2019 the suppliers have provided above all 726.00 611.00 IN SOUTH AMERICA 48.20 stages of our operations. Due to the expansion the services required by the areas with more 580.00 4.30 81.00 CEO project, this number will continue growing. It is activity inside the terminal facilities, the most 49.00 36.40 48.00 8.70 MESSAGE essential for us to establish a good relationship and outstanding being maintenance, safety and security 3.90 MAIN MILESTONES communication with all our suppliers and to grow and operations. As regards the location of LAP 645.00 562.00 39.50 IN 2019 hand in hand with them. suppliers, most of them are in Metropolitan Lima 532.00 50.40 32.50 ONGOING and El Callao. TRANSFORMATION 2017 2018 2019 2017 2018 2019 OUR PERFORMANCE
ETHICS AND CORPORATE 03 GOVERNANCE NUMBER OF INTERNATIONAL SUPPLIERS TOTAL AMOUNT OF INTERNATIONAL PURCHASES LAP LOGISTIC CHAIN OF SUPPLY EXCELLENCE 04 SERVICES NUMBER OF DOMESTIC SUPPLIERS TOTAL AMOUNT OF DOMESTIC PURCHASES
EFFICIENT AND TOTAL TOTAL AMOUNT OF PURCHASES 05 RESPONSIBLE OPERATION
LET’S GROW 06 TOGETHER PAYMENT WE PROTECT SUPPLIER TENDER WAREHOUSE RECOGNITION PROCESS 07 OUR ENVIRONMENT MANAGEMENT MANAGEMENT PERCENTAGE OF VOLUME OF PURCHASES OUR TEAM AWARDED LOCALLY (DOMESTIC) 2017 2019 08 MAKES THE DIFFERENCE
Search for Call (specifications) Dispatch/transport Verification of CAPEX with orders ADJUSTMENT suppliers material withdrawal Budget approval Quality verification from warehouse Information TO STANDARDS Approval verification 2017 92.1% Supplier selection Entry to warehouse Verification of completion of Technical and Dispatch of service economic required materials assessment 2018 89.3% Contract Purchase or service order 2019 82.0%
Compared to 2018, the number of suppliers increased by 115, making a total of 726 in 2019. The number As regards the total amount of domestic purchases, the growth in 2019, in respect of 2018, is the of international suppliers, specially of consulting services, was 81 and increased by 32. The number of do- result of the increase in the investments made (Capex) and in the market research and consulting mestic suppliers was 645 and grew by 83. services related to the commercial, environmental management and community relationship areas.
SUSTAINABILITY AND ANNUAL REPORT 2019 52 Selection of suppliers Suppliers are a key element of our chain of value. PROCESS TO REGISTER AS LAP SUPPLIER IN THE RECORD OF SUPPLIERS. IN THIS POINT, THERE IS NO CONTRACTUAL RELATIONSHIP WITH LAP YET. For this reason, we are very strict in our selection THE BEST AIRPORT process. In 2019 we improved the management of IN SOUTH AMERICA suppliers by implementing the Robotic Process ESTIMATED TIME OF THE VERIFICATION PROCESS: 20 BUSINESS DAYS CEO Automation (RPA) system, which allows us to enter MESSAGE and automatically check the data of suppliers, thus saving 2 hours and 30 minutes per day in each MAIN MILESTONES CERTIFICATE IN 2019 process. COMPANY ONGOING COMPLIANCE WITH THE VERIFIED AS TRANSFORMATION Before offering their services at the airport, VERIFIERS AT THE CHOICE GENERAL LEGAL CERTIFICATION QUALIFIED TO BE suppliers must pass the OHSE verification process, OF THE SUPPLIER OBLIGATIONS * OUR PERFORMANCE LAP SUPPLIER which require them to check their safety, FOR ETHICS AND CORPORATE occupational health and environmental systems 03 GOVERNANCE 80%: Approved (*) and have them certified for two years. EXCELLENCE Documents AENOR Between 55% and 79%: 2 04 SERVICES Objected, up to 80% must Visit to the company MEGA be completed YEARS EFFICIENT AND RESPONSIBLE OPERATION Less than 55%: 05 Fail LET’S GROW 06 TOGETHER
WE PROTECT 07 OUR ENVIRONMENT (*) Compliance with 5 requirements considered essential and compliance by 80% with all requirements established are demanded. OUR TEAM 08 MAKES THE DIFFERENCE The verification criteria for the OHSE accreditation From the 92 suppliers that completed the process, ADJUSTMENT are: 82 passed the OHSE verification process, which TO STANDARDS represents 89.13% of the suppliers. In general, Updated Hazard Identification and Risk Assessment (IPER for its abbreviation in Spanish): their performance was 96%, which was considered Routine and non-routine activities in and out their very good. facilities.
OHS Plan and Program as established in the legislation in force.
Certificate of appointment of OHS representative by the employer.
Internal OHSE Regulations, duly approved.
Accident and incident investigation and management procedure.
SUSTAINABILITY AND ANNUAL REPORT 2019 53 INFRASTRUCTURE SAFETY AND SECURITY Infrastructure security THE BEST AIRPORT Infrastructure safety and security is a priority for establish comprehensive measures in response IN SOUTH AMERICA As part of our operations to protect the infrastructure, we conducted security inspections on the the continuity of the operations and the welfare to risks and emergencies and resume the infrastructure. The purpose was to detect failures to comply with the human security standards in areas or CEO of the users, customers and workers of JCIA. operations as soon as possible. Our main MESSAGE facilities leased to the users (concessionaires, airlines or others) or any unsafe condition that may endanger advances in 2019 were the following: the integrity of people. In 2019, the activity program was intensified as a result of the increase in the number MAIN MILESTONES IN 2019 We manage the risks associated to the operation of passengers by 6.8%. using a Safety Management System and a ONGOING TRANSFORMATION Recovery Plan for Disasters, which are aimed to
OUR PERFORMANCE Updating of the Airdrome Safety System Manual Publication of nine bulletins containing rele- ETHICS AND CORPORATE NUMBER OF INSPECTIONS 2018 2019 03 GOVERNANCE according to the regulations, which was accepted by vant information on safety and distributed the General Bureau of Civil Aeronautics (DGAC) in among the airport community through our Commercial and non-commercial outlets 60 71 EXCELLENCE 04 SERVICES June 2019. channels. LAP facilities and common areas 50 60 EFFICIENT AND 05 RESPONSIBLE OPERATION Implementation of six external operating commit- Preparation of the video “Safety and Familiar- LET’S GROW 06 TOGETHER tees to manage risks and adopt mitigation mea- ization with the Airdrome”, which was favor- sures. We revised, together with the airport com- ably received by the airport community. It is In addition, we had an active participation in the On the other hand, in collaboration with the INDECI WE PROTECT 07 OUR ENVIRONMENT munity, the progresses and potential improve- an educational video that shows our opera- execution of drills for earthquakes and tsunamis. We and the PNUD, we updated the GARD (Get ments in respect of safety. tions in order for the personnel working at OUR TEAM also took part in the Lima and Callao Rehabilitation Airports Ready for Disaster) report. Finally, in 08 MAKES THE DIFFERENCE JCIA to become familiar with the airdrome areas. Committee and in the meeting on the early warning September we obtained the Certificate of Technical ADJUSTMENT system for earthquakes and tsunamis, together with Security Inspection of Buildings from the Provincial TO STANDARDS In addition, in 2019 we adjusted our safety indicators by adding one related to accidents on the the Instituto Geofísico del Perú (IGP) (Geophysical Municipality of Callao for the AIJC terminal. airdrome’s responsibility. This allows us to properly align ourselves with the standards established by the Institute of Peru), the Dirección de Hidrografía y International Civil Aviation Organization (ICAO). Navegación de la Marina de Guerra (DHN) (Hydrography and Navigation Bureau of the Peruvian Navy) and the Instituto Nacional de Defensa Civil INDICATOR 2019 (INDECI) (National Institute of Civil Defense). In total, N° of aviation accidents on the airdrome’s 0 responsibility in 2019 we conducted three evacuation drills for N° of movements 197,857 earthquakes. N° of uses of the runway 4
SUSTAINABILITY AND ANNUAL REPORT 2019 54 Bird hazard and wildlife AIRPORT SECURITY 304-2
As part of the safety measures, we adopted bird State for the construction of the new terminal. THE BEST AIRPORT control measures in order to reduce the number of Likewise, we monitor the birds in order to have IN SOUTH AMERICA accidents that may affect the operations and the more information on their behavior and displacement. CEO security of passengers. The Bird Hazard Coordination MESSAGE Committee was responsible for providing prevention In 2019 we implemented three bird hazard and MAIN MILESTONES information to operators, local governments and wildlife committees, trained the Armed Forces and IN 2019 public entities, stressing the importance to avoid the the National Police, conducted inspections at the ONGOING generation of conditions that attract animals, such Rímac river and the Army Aviation Base due to bird TRANSFORMATION as the presence of waste in the public road. hazard and wildlife problems and managed the OUR PERFORMANCE wildlife control program.
ETHICS AND CORPORATE We continue with falconry as one of the main 03 GOVERNANCE actions to disperse birds. It is carried out by flying In respect of our indicators, the ratio was lower than EXCELLENCE over different areas of JCIA, such as the cargo proposed (<=1), which reflects our efforts to 04 SERVICES Security management in each of the activities representatives of State entities and renowned center, the perimeter fencing, the large roof of the strengthen our safety systems. EFFICIENT AND conducted at JCIA is a priority for us. For this experts. In the conference topics, such as threats to 05 RESPONSIBLE OPERATION terminal and the land parcels given by the Peruvian reason, we adopt security measures to reduce the security, the new AVSEC regulatory framework of LET’S GROW 06 TOGETHER risk of occurrence of acts of unlawful interference the DGAC, human factors (safety), recovery plan
WE PROTECT by using an appropriate system to control access for disasters, USAP audit, ICAO - DGAC, first aid – 07 OUR ENVIRONMENT as well as inspection equipment and applying basic life support, crisis management, tabletop OUR TEAM procedures related to high security standards. exercise on acts of unlawful interference, among 08 MAKES THE DIFFERENCE others. NAME DESCRIPTION 2017 2018 2019 ADJUSTMENT Since 2018, JCIA is considered a national critical TO STANDARDS Bird strikes N° of bird strikes 7 5 8 asset. For this reason, we have coordinated with Likewise, we adopted security measures in relation State representatives the prevention in and to the expansion of the new departure lounges and Number of move- N° of aircraft movements 137,999 192,695 197,857 ments (thousands) protection of facilities. Within this framework we the apron expansion. We conducted 9 controlled had 3 coordination meetings with the Lima Airport exercises to assess on a regular basis if the Ratio* (N° of bird strikes x 10 000 0.51 0.26 0.40 Committee (COMALIM) to revise, adopt and carry security system detects unsafe conditions and movements) / (aircraft movement) out security measures with the airport community. verify compliance with the procedures followed by
(*) The ratio goal is <=1. the security personnel. We organized the fifth cycle of conferences on safety and security, which purpose is to promote the exchange of knowledge between our collaborators,
SUSTAINABILITY AND ANNUAL REPORT 2019 55 Everything mentioned above demanded the growth Finally, one of the great milestones in 2019, which Acts of unlawful interference of our support personnel. We increased the number demanded the highest security standards, were the In order to comply with the guidelines of the Airport División de Seguridad Aeroportuaria, Fluvial y de airport guides as part of the passenger sport events carried out in Lima (the Pan American Security Program we have educated and trained Lacustre (DIVSAFL) (Airport, River and Lake THE BEST AIRPORT screening process. and Parapan American Games). About 8,000 security personnel. This allows us to prevent and Security Division) of the National Police to adopt IN SOUTH AMERICA athletes arrived in Lima and were received in our avoid every act of unlawful interference. In security measures. In addition, the International Civil Aviation facilities. This required an organized involvement of CEO addition, we are in constant coordination with the Organization (ICAO) audited the Peruvian State on concessionaires, suppliers, airlines and collaborators. MESSAGE aviation security (AVSEC) at JCIA, since it is an With this experience we managed to implement MAIN MILESTONES important part of the evaluation of compliance with optimal conditions and special security measures IN 2019 the regulations in force in Peru. As a result of said for soccer delegations and fans of the Finals of Access roads ONGOING audit we were able to show our commitment and Libertadores Cup (CONMEBOL) by the end of With our present management and forecasts for we carried out surveillance operations with the TRANSFORMATION our management of the concession as regards 2019. the new airport, we are adopting measures to Provincial Municipality of El Callao, the Peruvian OUR PERFORMANCE compliance with the regulations and execution of reduce congestion in the access roads of the National Police and the MINCETUR and as a continuous improvement actions. ETHICS AND CORPORATE airport. The Ministerio del Interior (MININTER) result, the informal taxi drivers left the airport and GOVERNANCE 03 (Ministry of the Interior) and the Ministerio de their vehicles were taken to vehicle storage EXCELLENCE Comercio Exterior y Turismo (MINCETUR) 04 SERVICES facilities (for failure to comply with the regulations in (Ministry of Foreign Trade and Tourism) have an EFFICIENT AND force). These coordination actions and their 05 RESPONSIBLE OPERATION essential role in the reduction of the presence of execution will continue in 2020. LET’S GROW informal transport in the airport. In that regard, 06 TOGETHER
WE PROTECT 07 OUR ENVIRONMENT OUR TEAM 08 MAKES THE DIFFERENCE Fight against terrorism and drug tracking ADJUSTMENT TO STANDARDS Starting in August 2019 we strengthened the immediately notified on threats related to the random physical screening security measures to different forms of drug trafficking and smuggling. detect non-metallic threats for criminal and terrorist purposes (such as plastic explosives). Likewise, the competent authorities are
SUSTAINABILITY AND ANNUAL REPORT 2019 56 RESCUE AND FIRE FIGHTING TEAM
THE BEST AIRPORT We are ready and trained to act in any kind of technical problems, but were under control. IN SOUTH AMERICA emergency that might occur in the airport, Medical emergencies increased by 4.0% in CEO TYPE OF EMERGENCIES 2017 2018 2019 MESSAGE whether aeronautical, structural or medical, or respect of 2018. This is mainly explained by the related to vehicle rescue, hazardous goods or increase in the number of passengers. Medical emergencies 3,818 4,437 4,614 MAIN MILESTONES IN 2019 other. In 2019, as part of our continuous Aircraft emergencies 151 105 94 improvement system, we updated the Emergency ONGOING TRANSFORMATION Plan, which establishes all the procedures to be followed in case of crisis. Thus, we can apply OUR PERFORMANCE procedures to control any emergencies that may ETHICS AND CORPORATE 03 GOVERNANCE arise at JCIA. EXCELLENCE 04 SERVICES EFFICIENT AND In this regard, we conducted drills related to 05 RESPONSIBLE OPERATION hazardous materials, such as fuel spills, fires in LET’S GROW 06 TOGETHER aviation workshops, among others. This allows WE PROTECT us to have a specialized team for each kind of 07 OUR ENVIRONMENT emergency. We also implemented four OUR TEAM 08 MAKES THE DIFFERENCE emergency committees with the participation of
ADJUSTMENT all the organizations and entities forming part of TO STANDARDS the Emergency Plan. Likewise, we trained aviation firefighters and this training included a fire drill in case of aircraft emergencies.
In 2019 we had a total of 4,614 medical emergencies and 94 aircraft emergencies. Most of them were related to aircraft that reported
SUSTAINABILITY AND ANNUAL REPORT 2019 57 LET’S GROW TOGETHER THE BEST AIRPORT IN SOUTH AMERICA Since social responsibility is a transverse axis of our management, we aim to CEO contribute to the growth of the neighboring locations, generating positive MESSAGE impacts on our area of direct and indirect in uence. MAIN MILESTONES IN 2019 5 health campaigns, with more than 14 entrepreneurship workshops, with 1,500 beneficiaries more than 300 beneficiaries ONGOING TRANSFORMATION 45 educational institutions participating Creation of the Citizen monitoring and in the Environmental Education and OUR PERFORMANCE surveillance committee Road Safety Program ETHICS AND CORPORATE 03 GOVERNANCE Constant communication through the EXCELLENCE main channels of communication: 04 SERVICES o 1 permanent information office EFFICIENT AND o 1 mobile information module RESPONSIBLE OPERATION 05 o Social media LET’S GROW o 12 social promoters engaged in 06 TOGETHER fieldwork. WE PROTECT 07 OUR ENVIRONMENT OUR TEAM 08 MAKES THE DIFFERENCE AREA OF DIRECT INFLUENCE ADJUSTMENT TO STANDARDS 413-1
Within the framework of the expansion project, we During the year, the investment made in local made a firm commitment to the locations neighbor development amounted to US$0.65 million. It to the airport. For this reason, in 2019, we launched should be pointed out that all the commitments several initiatives based on pillars of relationship cover both the construction stage and the building, including education, environment, economic operations of the new infrastructure. development and human aid, with emphasis on vulnerable groups (children and young people). In turn, we aimed to keep people informed of the scope of each of the programs and its schedule of execution.
SUSTAINABILITY AND ANNUAL REPORT 2019 58 AREA OF DIRECT INFLUENCE OF THE JORGE CHÁVEZ INTERNATIONAL AIRPORT EXPANSION PROJECT Our area of direct influence is made up of 46 locations around JCIA, in the following 6 zones: front north, THE BEST AIRPORT IN SOUTH AMERICA adjacent north, center, adjacent south, front south and west. FRONT NORTH ZONE CEO CENTER ZONE MESSAGE ADJACENT 39 42 45 43 SOUTH ZONE 41 37 38 44 46 34 MAIN MILESTONES 3 40 36 35 NEIGHBORING LOCATIONS ADJACENT 29 IN 2019 NORTH ZONE 4 30 33 6 FAUCETT AVENUE 31 ONGOING 1 32 1 Urb. Los Portales del Aeropuerto I Etapa TRANSFORMATION 2 2 Urb. Los Portales del Aeropuerto II Etapa B 26 CURRENT TERMINAL ADJACENT 3 Urb. Alameda Portuaria I Etapa 5 OUR PERFORMANCE NORTH ZONE 4 Urb. Aero Residencial Faucett 5 Asociación Residencial La Taboada D 28 ETHICS AND CORPORATE SANTA ROSA GOVERNANCE 6 Urb. Alameda Portuaria II Etapa 03 BRIDGE 27 C MAIN ACCESS EXCELLENCE TO THE AIRPORT SERVICES A 04 7 Junta Vecinal Los Ferroles 8 AA.HH. Daniel Alcides Carrión 7 25 EFFICIENT AND RESPONSIBLE OPERATION 9 AA.HH. Francisco Bolognesi 05 10 AA.HH. Twinza WEST ZONE LET’S GROW 11 AA.HH. Acapulco 17 06 TOGETHER 12 AA.HH. Villa Mercedes 13 AA.HH. Juan Pablo II 15 VICENTE MORALES DUÁREZ AVENUE WE PROTECT 14 AA.HH. Sarita Colonia RIMAC RIVER 07 OUR ENVIRONMENT FRONT 16 SOUTH ZONE OUR TEAM 15 AA.HH. Gambeta Baja Oeste NÉSTOR 08 MAKES THE DIFFERENCE 8 16 AA.HH. Mariscal Ramón Castilla GAMBETTA AVENUE 19 17 AA.HH. Gambeta Baja Este 9 18 ADJUSTMENT 18 Agrupación Poblacional Max Newbauer TO STANDARDS 19 AA.HH. Andrés Avelino Cáceres 12 13 21 20 AA.HH. René Nuñez del Prado PACIFIC OCEAN 23 24 FRONT 21 Urb. Popular Valentín Paniagua 14 20 22 22 Asociación de Viviendas Ongoy SOUTH ZONE 11 23 AA.HH. 3 de Marzo
24 AA.HH. San Antonio WEST ZONE 25 AA.HH. Santa Rosa 10 26 AA.HH. Todos Unidos KNOW THE PROJECT 27 AA.HH. José Olaya 37 Urb. Las Garzas 28 AA.HH. Manuel Dulanto 38 Urb. Los Lirios A B FRONT 39 Urb. La Quilla Runway Apron NORTH ZONE 40 Urb. Las Fresas 29 AA.HH. 25 de Febrero 41 Urb. 7 de Agosto 42 Cooperativa 7 de Agosto II Programa PNP C D 30 AA.HH. 1ro de Julio Air traffic control tower Terminal 31 AA.HH. El Progreso building ADJACENT 32 AA.HH. Señor de Luren AIRPORT DELIMITATION SOUTH ZONE 33 AA.HH. Nueva Esperanza 43 AA.HH. Población Habitacional Grimanesa 34 AA.HH. 200 Millas CENTER 44 AA.HH. Bocanegra Sector IV 35 AA.HH Hijos de Moradores 25 de febrero ZONE 45 AA.HH. Bocanegra Sector V 36 AA.HH. El Buen Pastor 46 AA.HH. Aeropuerto
SUSTAINABILITY AND ANNUAL REPORT 2019 59 SOCIALLY RESPONSIBLE MANAGEMENT 413-1, 413-2 103-1, 103-2, 103-3 Relationships with the community and the stakeholders
THE BEST AIRPORT During 2019 we carried out several programs established in the AEIS, which respond to studies conducted to control and mitigate impacts arising from the expansion project IN SOUTH AMERICA and the operation of JCIA. Likewise, we considered implementing our own initiatives. CEO MESSAGE In 2019, the 46 locations covered by our Area of Direct Influence (ADI) took part in at least one of LAP’s initiatives or social programs.
MAIN MILESTONES IN 2019 SOCIAL PROGRAMS CARRIED OUT IN ALL THE AREAS OF INFLUENCE OTHER SOCIAL PROGRAMS CARRIED OUT IN 2019 ONGOING TRANSFORMATION PROGRAM ACTIONS IMPACT PROGRAM ACTIONS IMPACT OUR PERFORMANCE
ETHICS AND CORPORATE We trained entrepreneurs and 03 GOVERNANCE Health campaigns, healthy cafeterias, contacted potential customers. For this Workshop for 5 campaigns More than 34 attendees EXCELLENCE healthy life workshops and anemia purpose, we entered into alliances with potential and workshops 3,000 people CONTRACTS FOR authorities, incubators and public suppliers 04 SERVICES and cancer tests GOODS AND institutions. HEALTH SERVICES EFFICIENT AND 05 RESPONSIBLE OPERATION We created a committee (CMVC) LET’S GROW TOGETHER Entrepreneurship skills strengthening made up of representatives of the 06 More than neighbors. They are trained in and 2 training sessions workshops and art and culture 10 workshops 12 participants 3,000 people informed of the monitoring results and and 2 monitoring WE PROTECT workshops ENVIRONMENTAL actions 07 OUR ENVIRONMENT CONTRIBUTION TO MONITORING transmit this information to their SOCIAL DEVELOPMENT locations. OUR TEAM 08 MAKES THE DIFFERENCE
Workshops on solid waste We created a technical committee to ADJUSTMENT management, recovery of green More than establish mechanisms to mitigate the More than TO STANDARDS 10 workshops 10 workshops areas and care of public spaces 300 students CREATION OF THE noise impact on the airport opera- 70 participants ENVIRONMENTAL areas tions. EDUCATION NOISE MITIGATION COMMITTEE
We strengthened the knowledge of the team members so that they Citizenship and road safety More than become aware of the actions they 3 drills in More than 16 workshops workshops 600 students CREATION OF TEAMS must take before, during and after a 3 schools 2,000 students ROAD SAFETY AND ACTIONS IN CASE tsunami. We identified evacuation EDUCATION OF TSUNAMIS routes and meeting points.
All neighbors can participate in the selection processes to work in the 46 locations with Christmas campaign and sports More than project. They must follow the regular 2 initiatives more than 17,500 2 initiatives workshops 7,500 students selection procedure of the contrac- homes CITIZEN OTHERS tor. PARTICIPATION
SUSTAINABILITY AND ANNUAL REPORT 2019 60 Citizen monitoring and surveillance committee The Program of Environmental Monitoring and Surveillance by Citizens forms part of our social commitments to the Peruvian State, as established in the AEIS. This program covers the 46 locations of our THE BEST AIRPORT IN SOUTH AMERICA AID. Its purpose is to promote the social environmental monitoring of neighbors, keep them informed on the project progress and promote their participation as observers of the compliance with the social and CEO environmental commitments. MESSAGE
MAIN MILESTONES The committee is made up of an autonomous team of citizens that does not need the approval of IN 2019 government or private entities to adopt decisions. However, its obligations include that its members take an active part in training and induction sessions on environmental monitoring, occupational safety, ONGOING TRANSFORMATION strengthening of communication skills and technical matters related to the social environmental management of the expansion project. Our role consists in providing logistic and technical support to the OUR PERFORMANCE committee. ETHICS AND CORPORATE 03 GOVERNANCE
EXCELLENCE Every citizen who wishes to become a member of the committee must meet the following requirements: 04 SERVICES EFFICIENT AND Be supported by the authority of Be able to read and RESPONSIBLE OPERATION 05 his/her location and be elected write. LET’S GROW by the representatives of the 06 TOGETHER zone where he/she lives. WE PROTECT 07 OUR ENVIRONMENT Be willing to and interested in OUR TEAM Be of legal age, have the Peruvi- taking part in training sessions, 08 MAKES THE DIFFERENCE an National Identity Document meetings, among others events (DNI) in force and live in any of related to social and environ- ADJUSTMENT the AID locations. TO STANDARDS mental management.
It was determined that the committee would be made up of 6 regular members and 6 alternate members. For this reason, we requested each location to elect its representatives by zone. The selection process started in May 2019 and in June, the committee was already operating and meeting its obligations according to the schedule of activities.
Although at LAP we continue providing support to the committee members to spread these actions, During 2019 we managed the following indicators: they are responsible for the management of the channel for inquiries on the project progress.
4 environmental monitoring training sessions
12 members of the committee attended the scheduled environmental monitoring activities
2 reports prepared with the CMVC representatives on the activities conducted
SUSTAINABILITY AND ANNUAL REPORT 2019 61 STRATEGIC ALLIANCES
In order to promote the development of THE BEST AIRPORT the neighboring locations, we entered IN SOUTH AMERICA into alliances with strategic actors: Adventist Development Communion Promotion National Civil Defense Insti- Pontifical Catholic Univer- and Healthcare Re- Development and Libera- tute (INDECI) for the man- CEO Specialists of the private sector, sity of Peru (PUCP) for the source Agency (ADRA) tion (COPRODELI) for the agement of risks of the MESSAGE programs to contribute to non-governmental organizations and for the implementation development of entrepre- community in the west social development MAIN MILESTONES state actors that can provide of the health campaigns neurship programs zone IN 2019 sustainability along the project. In total,
ONGOING we worked with the following 4 TRANSFORMATION partners:
OUR PERFORMANCE
ETHICS AND CORPORATE 03 GOVERNANCE SOCIAL CHALLENGES OF THE EXCELLENCE 04 SERVICES CONSTRUCTION OF THE NEW AIRPORT 413-2 EFFICIENT AND 05 RESPONSIBLE OPERATION
LET’S GROW The airport expansion project poses FRONT SOUTH ADJACENT ADJACENT 06 TOGETHER several social challenges. WEST ZONE CENTER ZONE ZONE SOUTH ZONE NORTH ZONE WE PROTECT 07 OUR ENVIRONMENT For this reason, we identified the main OUR TEAM 08 MAKES THE DIFFERENCE challenges in each zone covered by the AID. ADJUSTMENT We identified citizen com- We identified a risk of com- the neighbors expressed We warned about orga- There were complaints TO STANDARDS munication and participa- pliance with the programs their concern about the nized crime acts due to about the environmental tion risks. As part of our due to lack of information. A noise generated by the SEDAPAL works on the and health impacts result- plan to mitigate these risks group of representatives of aircraft. In view of this, our Rímac river bank. In view ing from dust generation. and in spite of the initial the neighborhood councils social team shared with of this, we made it sure to Our preventive measures opposition to it, we man- stated that the Executive them all the implications of have a security team included frequent watering aged to install an informa- Board informed them about the goals and operation of during all the social inter- and, in some cases, put- tion module approved by the project activities. Our the Technical Committee ventions in the zone. ting speed signs in the the local community in social team faced the chal- for Aircraft Noise Mitiga- concession lands and order to have effective lenge and tried to generate tion, providing them the controlling the speed of channels of communica- information spaces for the necessary contact details. vehicles and machines. tion. whole community.
SUSTAINABILITY AND ANNUAL REPORT 2019 62 WE PROTECT OUR
THE BEST AIRPORT IN SOUTH AMERICA ENVIRONMENT CEO At LAP we are committed to MESSAGE Total consumption: 39,381,355.00 kwh environmental protection, from the MAIN MILESTONES IN 2019 prevention to the mitigation of the Total emissions of greenhouse gases (GHG) in impacts related to our operations. For 2018: 5,261.75 tCO2 eq. ONGOING TRANSFORMATION this reason, we are working on a 12% savings in water consumption in the pilot permanent basis to implement program OUR PERFORMANCE improvements in the eco-ef ciency of ETHICS AND CORPORATE 16.32% non-hazardous waste recycling, 03 GOVERNANCE our activities and services and to equivalent to 80 tons EXCELLENCE raise awareness in our customers and 04 SERVICES collaborators in respect of 222 remedied environmental liabilities from 301 EFFICIENT AND 05 RESPONSIBLE OPERATION responsible consumption.
LET’S GROW 06 TOGETHER
WE PROTECT 07 OUR ENVIRONMENT ENVIRONMENTAL MANAGEMENT OUR TEAM 08 MAKES THE DIFFERENCE 102-11 UN Global Compact – Principles 7 and 8 103-1, 103-2, 103-3 Environmental management ADJUSTMENT TO STANDARDS We are responsible for our operations and aware of During 2019 our management was based on 4 big the environmental impact we generate. We have a goals: To promote among the personnel an Quality, Social Responsibility and Environmental environmental protection culture, encourage our Policy through which we establish our principles of users or suppliers to comply with environmental contribution to sustainable development. In standards, keep the water consumption per capita addition, since 2003 we have an Environmental and maintain the energy consumption as planned. Management System certified under the international ISO 14001:2015 standard, subject to which we ensure our environmental commitment to identify, prevent and mitigate potential negative impacts.
SUSTAINABILITY AND ANNUAL REPORT 2019 63 ENVIRONMENTAL EDUCATION NOISE UN Global Compact – Principle 8 Within the framework of the commitments established in the AEIS, in 2019 we started the implementation THE BEST AIRPORT We aim to transfer our environmental values to all the actors of our chain of value based on key of the Aircraft Noise Monitoring System, which includes 10 noise monitoring stations in the areas of direct IN SOUTH AMERICA education and awareness raising actions: and indirect influence of JCIA, interconnecting them with a real-time flight tracking system. In 2019 we CEO installed 2 noise monitoring stations. MESSAGE Collaborators We promote among the personnel an This system will be implemented in the municipalities of El Callao, La Perla and San Miguel and will allow MAIN MILESTONES saving, a responsible consumption of paper, IN 2019 environmental protection culture through several waste segregation and use of ecological products. to identify the noise generated by the aircraft landing in and taking off from JCIA. In 2017, according to the environmental education initiatives. For example, Thus, in 2019, 71% of our collaborators AEIS, we estimated that the exposed population is made up of 119,000 inhabitants during the day and ONGOING the Hour of the Planet, in which we give successfully answered our environmental 498,000 at night. In this regard, this information obtained from the monitoring can be used by the relevant TRANSFORMATION recommendations on how to contribute to take surveys, exceeding the goal of 70%10. government authority to improve the environment in the neighboring locations. OUR PERFORMANCE care of our planet and the Good Environmental ETHICS AND CORPORATE Practices awareness raising campaign, through Likewise, we created the Technical Committee for Aircraft Noise Mitigation based on our Social 03 GOVERNANCE which we shared practices for water and energy Management Plan in order to deal with noise at various institutions and adopt together measures that EXCELLENCE 04 SERVICES contribute to its reduction. In 2019 we had three sessions with the participation of airlines and State entities. EFFICIENT AND Contractors and Concessionaires 05 RESPONSIBLE OPERATION We aim to constantly educate our contractors and established standard. After the results had been LET’S GROW 06 TOGETHER concessionaires on environmental and delivered, we conducted a follow-up and
WE PROTECT occupational safety matters. For this reason, the requested the companies that failed to achieve 07 OUR ENVIRONMENT Environmental and Occupational Health and the goal to comply with the requirements they had OUR TEAM Safety Committee (CASSO for its abbreviation in not met. Then, these companies were reevaluated 08 MAKES THE DIFFERENCE Spanish) carried out training sessions on good (RE-ETI), so all our suppliers eventually complied ADJUSTMENT environmental practices, the integrated waste in full. TO STANDARDS management (Taris), environmental monitoring, among others. In parallel, we evaluated that our concessionaires meet all the requirements under the Likewise, we promoted that companies using Environmental Regulations for the operations at JCIA (ramp operators, flight kitchens, airlines or JCIA. According to these regulations, they must concessionaires) or companies providing services send to us information regarding their practices to JCIA comply with the applicable environmental every four months so that we can prepare the standards. For this reason, we carried out Report of Compliance with the Environmental comprehensive technical evaluations through Regulations. In 2019 these companies delivered company AENOR. to us all the information required for the first and second reports. Likewise, we are collecting In 2019 we evaluated 44 companies and 88% of information for the third report. them complied by more than 90%, reaching the
10 306 collaborators were surveyed; those forming part of the expansion project were not surveyed. SUSTAINABILITY AND ANNUAL REPORT 2019 64 AIR QUALITY
During 2019 we monitored air quality and vehicle EVALUATION THE BEST AIRPORT PARAMETER PERIOD VALUE IN SOUTH AMERICA emissions based on the frequency and CRITERIA
Sulfur dioxide (SO ) 24 hours 250 µg/m3 NE more than 7 times a year CEO parameters established in the Environmental 2 MESSAGE Management Plan of the AEIS. The results Particulate material with a diame- 24 hours 100 µg/m3 NE more than 7 times a year ter less than 10 microns (PM ) MAIN MILESTONES obtained from this monitoring actions are reported 10 IN 2019 Annual 50 µg/m3 Annual arithmetic mean on a quarterly basis to the Dirección General de ONGOING Particulate material with a diame- 24 hours 50 µg/m3 NE more than 7 times a year Asuntos Ambientales (DGAAM) (General TRANSFORMATION ter less than 2,5 microns (PM2,5) 3 Bureau of Environmental Affairs) of the MTC in Annual 25 µg/m Annual arithmetic mean OUR PERFORMANCE Carbon monoxide (CO) 8 hours 10 000 µg/m3 Annual arithmetic mean ETHICS AND CORPORATE the reports on compliance with environmental 03 GOVERNANCE commitments. The parameters we monitored, 1 hour 30 000 µg/m3 NE more than 1 time a year EXCELLENCE SERVICES 04 according to the Environmental Quality Standards 3 Nitrogen dioxide (NO2) Annual 100 µg/m Annual arithmetic mean EFFICIENT AND for Air (EQSs – Air) established by the Ministerio 05 RESPONSIBLE OPERATION 1 hour 200 µg/m3 NE more than 24 times a year
LET’S GROW del Ambiente (MINAM) (Ministry of the Ozone (O ) 8 hours 100 µg/m3 Maximum daily mean NE 06 TOGETHER 3 Environment), are: more than 24 times a year WE PROTECT 07 OUR ENVIRONMENT 3 Lead (Pb) in PM10 Mensual 1,5 µg/m NE more than 4 times a year OUR TEAM 3 08 MAKES THE DIFFERENCE Annual 0,5 µg/m Arithmetic mean of the monthly values
3 ADJUSTMENT Hydrogen sulfide (H2S) 24 hours 150 µg/m Arithmetic mean TO STANDARDS Benzene Annual 2 µg/m3 Annual arithmetic mean
Source: Supreme Decree N° 003-2017-MINAM that approves the Environmental Quality Standards (EQSs) for Air and establish Supplementary Provisions. µg/m3: micrograms per cubic meter NE: Not exceeding.
Air quality in 2019 was within the parameters established, except for the last quarter, in which one of the four stations that was monitored had particulate material concentrations exceeding the EQSs mentioned above. The causes of this measurement are related to vehicle traffic and the mechanical processes near the station. The results of the continuous monitoring prove that, under regular conditions, air quality is within the concentrations established in the EQSs.
SUSTAINABILITY AND ANNUAL REPORT 2019 65 ENERGY AND EMISSIONS 302-1 UN Global Compact – Principle 9
THE BEST AIRPORT IN SOUTH AMERICA As part of our operations, we must manage an system (HVAC), which in 2018 only operated at efficient energy consumption, ensuring the 80% capacity. Since it was repaired and started CEO MESSAGE availability of energy and the reliability of operating at 100% capacity, energy infrastructure. All the electric energy we use is consumption increased significantly. In addition, MAIN MILESTONES IN 2019 supplied by electric company ENEL. we started using the 400Hz GPU aircraft battery charging system. ONGOING TRANSFORMATION Our electric energy consumption in 2019 increased in respect of the previous year, OUR PERFORMANCE basically due to the use of the air conditioning ETHICS AND CORPORATE 03 GOVERNANCE
EXCELLENCE 04 SERVICES EFFICIENT AND 05 RESPONSIBLE OPERATION COMPONENT 2017 2018 2019 LET’S GROW Total consumption in kWh 39,467,497.30 36,753,601.30 39,381,355.00 06 TOGETHER
WE PROTECT Number of passengers 20,604,250 22,127,752 23,622,146 07 OUR ENVIRONMENT OUR TEAM KPI electric energy con- 1.91 1.66 1.66 08 MAKES THE DIFFERENCE sumption / number of passengers ADJUSTMENT TO STANDARDS
In spite of the increase, we kept energy consumption within the established parameters (planned baseline) during most part of the year. To determine this baseline, we took the number of passen- gers, the number of days in the month and the temperature into consideration.
SUSTAINABILITY AND ANNUAL REPORT 2019 66 As shown in the chart above, we achieved the established goal every month of 2019, except for February and April. In these two cases, we adopted successful reduction measures: Savings in the HVAC system and the lighting system.
THE BEST AIRPORT IN SOUTH AMERICA RESULT CEO MESSAGE DESCRIPTION JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER MAIN MILESTONES IN 2019 Actual Consumption 3,863,185 3,761,323 3,898,535 3,487,253 3,246,867 2,827,249 2,936,453 2,833,024 2,833,024 3,026,312 3,137,680 3,478,044 of Electric Energy (kWh) ONGOING Electric Energy Planned TRANSFORMATION 4,009,160 3,729,934 3,932,705 3,443,306 3,392,037 3,102,626 3,140,107 2,983,986 2,996,607 3,093,601 3,145,444 3,544,915 Baseline (kWh) OUR PERFORMANCE Index 0.9636 1.0084 0.9913 1.0128 0.9572 0.9112 0.9351 0.9670 0.9454 0.9782 0.9975 0.9811 ETHICS AND CORPORATE 03 GOVERNANCE
EXCELLENCE 04 SERVICES EFFICIENT AND 05 RESPONSIBLE OPERATION GLP consumption Diesel and common ethanol fuel mixtures consumption LET’S GROW At present LPG is used at JCIA by tenants working with TOGETHER In addition to the LPG, at JCIA diesel is consumed for the 06 industrial stoves and for LAP operations in its autoclave system. WE PROTECT operation of vehicles and generating sets and gasohol for the use 07 OUR ENVIRONMENT This system processes non-hazardous waste from international of vehicles by managers. OUR TEAM flights to eliminate any potential pathogen and make it inert. 08 MAKES THE DIFFERENCE Consumption was as follows: ADJUSTMENT Consumption was as follows: TO STANDARDS DIESEL CONSUMPTION 2017 2018 2019 GALLONS LPG CONSUMPTION 2017 2018 2019 Diesel B5-S50 Consumption 2,250.75 2,238.67 2,489,583 GALLONS
Tenants 88,829.80 112,270.20 109,652.52 COMMON ETHANOL LAP Operation (Autoclave) 14,861.50 15,680.0 15,630.50 FUEL MIXTURES 2017 2018 2019 CONSUMPTION GLN
Common Ethanol Fuel Mixtures Consumption 4,419.52 4,904.99 3,781.48
SUSTAINABILITY AND ANNUAL REPORT 2019 67 EMISSIONS 305-1, 305-2, 305-3, 305-5
At LAP we have a Carbon Footprint Policy that in scope 1 changed and the availability and quality We managed to reduce the total GHG emissions The total passengers recorded in 2018 (PAX) were THE BEST AIRPORT 11 IN SOUTH AMERICA establishes our commitment to the reduction of of the activity levels improved. In addition, verifiable compared to 2017 . considered specific parameters of the organization. greenhouse gas (GHG) emissions and the and representative data of said year are available. In turn, the intensity of the GHG emissions CEO measurement of our corporate carbon footprint. We We generated a total of 3.18 tCO eq in biogenic estimated for 2018 was 0.00026 tCO eq/PAX. MESSAGE 2 2 make said measurement every year following the Our estimated 2018 Corporate Carbon Footprint emissions due to biomass combustion in fixed MAIN MILESTONES principles of the ISO 10464-01 standard and the includes the following gases: Carbon dioxide (CO2), sources and 8.89 tCO2eq due to biomass IN 2019 GHG Protocol. We make these estimates using the methane (CH4) and nitrous oxide (N2O). The Global combustion in mobile sources. ONGOING methods detailed in the guidelines for the Warming Potential (GWP) was taken from the IPCC TRANSFORMATION preparation of national inventories of the Fifth Assessment Report - AR5. We also applied OUR PERFORMANCE Intergovernmental Panel on Climate Change the operating control approach to delimit the GHG
ETHICS AND CORPORATE (IPCC). quantification. 03 GOVERNANCE EXCELLENCE 2018 was chosen as the historic base year because LAP corporate carbon footprint in 2018 was 04 SERVICES although the carbon footprint is being measured for 5261.75 tCO2 eq, as shown below: EFFICIENT AND 05 RESPONSIBLE OPERATION some years now, the emission sources considered LET’S GROW 06 TOGETHER
WE PROTECT 07 OUR ENVIRONMENT OUR TEAM 08 MAKES THE DIFFERENCE COMPONENT 2016 2017 2018 ADJUSTMENT Total GHG Emissions (tCO eq) 12,794 7,119.01 5,261.75 TO STANDARDS 2
Scope 1 (tCO2 eq) 752.17 385.62 843.98
Scope 2 (tCO2 eq) 7,962.15 6,733.39 4,417.77
Scope 3 (tCO2 eq) 4,079.07 ------
11 Reference carbon footprint, considering that the data was not verified through an external audit
SUSTAINABILITY AND ANNUAL REPORT 2019 68 WATER AND SEWAGE
The water supplied to us is groundwater from 2 deep wells operating alternately. The airport consumption THE BEST AIRPORT volume in the last three years is shown below: IN SOUTH AMERICA
CEO MESSAGE 2017 2018 2019 MAIN MILESTONES Consumption (m ) 604,541.00 669,217.00 722,248.00 IN 2019 3
ONGOING Passengers (pax) 20,604,250 22,127,752 23,622,146 TRANSFORMATION Consumption per passenger 29.34 30.24 30.57 OUR PERFORMANCE (liters/pax)
ETHICS AND CORPORATE 03 GOVERNANCE
EXCELLENCE 04 SERVICES During the year we aimed to maintain the water consumption per capita by measuring the liters of water EFFICIENT AND consumed by the number of passengers, verifying that the monthly average is not exceeded. This 05 RESPONSIBLE OPERATION occurred from February to May and from November to December. LET’S GROW 06 TOGETHER
WE PROTECT 07 OUR ENVIRONMENT RESULT OUR TEAM 08 MAKES THE DIFFERENCE DESCRIPTION JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER ADJUSTMENT TO STANDARDS Volume of extracted 66,677,450 56,735,500 57,197,000 57,987,000 61,413,000 57,089,000 62,402,000 62,746,000 64,233,225 60,750,350 56,952,000 58,065,750 water (liters)
Passengers (pax) 1,911,310 1,784,584 1,845,266 1,837,146 2,022,175 1,915,591 2,127,131 2,202,498 2,002,336 2,010,738 1,958,597 1,961,228
Real indicato 34.89 31.79 31.00 31.56 30.37 29.80 29.34 28.49 32.08 30.21 29.08 29.61 (liters / pax)
Planned indicator 30.39 32.41 31.86 31.72 30.86 27.72 28.58 25.67 30.66 28.46 31.63 30.77 (liters / pax)
SUSTAINABILITY AND ANNUAL REPORT 2019 69 Based on the results, in the period from June to In view of this, we implemented a water savings October 2019, we identified water consumption pilot program using highly efficient bathroom according to the sector and type of user fittings and accessories in the two restrooms THE BEST AIRPORT (commercial, non-commercial and restrooms). mostly used (restrooms N° 2 and N° 19). This IN SOUTH AMERICA In this way, we determined the zones or users resulted in savings of about 12% in the water CEO that consumed more to be able to design volume and consumption, compared to the MESSAGE reduction programs. It was concluded that the average used in the other restrooms. Based on MAIN MILESTONES highest consumption occurs in the center zone the results of the pilot program, it is planned to IN 2019 (terminal and central building), which represents implement highly efficient accessories for the ONGOING 67% of the airport volume. It was also restrooms of the public zones in 2020. TRANSFORMATION determined that in this zone the user with the OUR PERFORMANCE highest consumption were the restrooms, with ETHICS AND CORPORATE 03 GOVERNANCE an average of 60% of the total water EXCELLENCE consumption in the terminal. 04 SERVICES EFFICIENT AND 05 RESPONSIBLE OPERATION As regards water treatment by the wastewater treatment plant, in June 2019 we completed the plant LET’S GROW improvement project. This project complies with the Maximum Permissible Values (MPV), as 06 TOGETHER stipulated in the regulations. The actual efficiency levels (executed), compared to the design WE PROTECT 07 OUR ENVIRONMENT efficiency (base), are detailed below: OUR TEAM 08 MAKES THE DIFFERENCE
ADJUSTMENT TO STANDARDS JUN JUL AUG SEP OCT NOV DEC
Actua efficiency 83.00% 57.00% 69.00% 71.00% 63.00% 44.00% 60.00%
Design efficiency 31.80% 31.80% 31.80% 31.80% 31.80% 31.80% 31.80%
SUSTAINABILITY AND ANNUAL REPORT 2019 70 WASTE 306-2, 306-4
THE BEST AIRPORT Since JCIA is an airport of great importance, we make sure to properly manage potentially hazardous, As regards waste that must be directly and 892,72 tons of hazardous waste from IN SOUTH AMERICA hazardous and non-hazardous waste, avoiding risks for the health security of our customers and visitors. disposed of, we manage it according to the international flights. CEO legislation in force and we have a contract MESSAGE with a solid waste operating company The total hazardous waste of 387.71 tons was sent
MAIN MILESTONES authorized by the MINAM. In 2019 said to a company authorized to recover waste. 108.45 IN 2019 TYPE OF WASTE DEFINITION TREATMENT company transported a total of 387.71 tons tons were recovered and 279.26 tons were of hazardous waste from domestic flights eventually taken to a security landfill. ONGOING Waste from international flights Autoclave treatment. This kind of waste can contain TRANSFORMATION (potentially bio-contaminated). pathogens that affect health security and transfers OUR PERFORMANCE potential diseases to people. For their proper disposal and the elimination of risks, this waste is sterilized and ETHICS AND CORPORATE POTENTIALLY 03 GOVERNANCE HAZARDOUS then taken to the landfill. WASTE TYPE OF WASTE IN TONS 2017 2018 2019 EXCELLENCE 04 SERVICES Not recoverable 2,553.24 2,798.37 2,785.32 Toxic, corrosive, reactive, flammable, It is temporarily stored in the sanitation area under EFFICIENT AND Non-hazardous 05 RESPONSIBLE OPERATION explosive, radioactive and infectious safe conditions and with preventive measures. It is Recoverable 412.15 465.34 546.05 waste, such as materials contaminated then transported to a sanitary landfill. LET’S GROW 06 TOGETHER by hydrocarbons, vegetable oil used, Domestic 362.35 392.52 387.71 grease trap in kitchen, fuel used, Hazardous WE PROTECT HAZARDOUS among others. International flights 987.54 947.83 892.72 07 OUR ENVIRONMENT WASTE OUR TEAM TOTAL 4,315.28 4,604.06 4611.8 08 MAKES THE DIFFERENCE Airport waste, such as plastic, It is separated in the sanitation area considering if it is ADJUSTMENT paper, glass, among others. Due to made of plastic, paper, glass, among others. Waste TO STANDARDS its characteristics, it can be used for that can be recycled is sent to a recycling plant. The recycling or not. other waste, such as waste from sweeping, wrap- At JCIA we have waste management instructions and procedures, which are published in our web pings, waste from restrooms and waste from domestic NON HAZARDOUS page: Instructions for the primary storage of solid waste generated in the air terminal, and internal WASTE flights, is taken to authorized sanitary landfills. and external procedures for the collection of solid waste and waste from domestic and international flights.
Based on the above, our goal is to maintain the recycling rate at at least 15%. In 2019, we increased the non-hazardous waste recycling rate from 14.26% to 16.32%, which is equivalent to 80 tons of waste that were not taken to the sanitary landfill.
SUSTAINABILITY AND ANNUAL REPORT 2019 71 ENVIRONMENTAL CHALLENGES OF THE CONSTRUCTION OF THE NEW AIRPORT
THE BEST AIRPORT IN SOUTH AMERICA As part of the execution of the works previous to the LIABILITY REMEDIATION CEO PROGRESS MESSAGE main works of the expansion project, we are now cleaning, remediating and disposing of environmental MAIN MILESTONES liabilities at the expense of the Peruvian State. IN 2019 33
ONGOING The remediation activities, according to the 222 TRANSFORMATION Environmental Audit12, apply to 174 environmental OUR PERFORMANCE liabilities associated to 141 groups of liabilities. 46 ETHICS AND CORPORATE 03 GOVERNANCE On the other hand, 127 new liabilities were reported EXCELLENCE 04 SERVICES in November and December. As regards this new EFFICIENT AND group, 13 silos, 18 groundwater wells and 45 05 RESPONSIBLE OPERATION liabilities related to structures and areas with LET’S GROW asbestos were remediated. 06 TOGETHER
WE PROTECT 07 OUR ENVIRONMENT As to 2019 we have remediated 222 environmental OUR TEAM liabilities, 33 of which are being executed and 46 08 MAKES THE DIFFERENCE have not been executed yet. Likewise, 94 REMEDIATED LIABILITIES ADJUSTMENT environmental liabilities have been technically LIABILITIES BEING EXECUTED TO STANDARDS approved by the DGAAM of the MTC.
LIABILITIES NOT EXECUTED
In conclusion, the progress in liability remediation has been very effective as regards battery, hydrocarbons, biological waste, groundwater and structures and areas with asbestos. 26% is pending.
12The Environmental Audit, approved by Official Letter N° 6966-2018-MTC/16 and Report N° 544-2018-MTC/16.01.RST.MPPC, is included in the Amendment to the Environmental Impact Study (Annex 4.10) and was approved on October 11, 2018 by the Servicio Nacional de Certificación Ambiental para Inversiones Sostenibles (SENACE) (National Service of Environmental Certification for Sustainable Investments) through Director’s Resolution N° 00036-2018-SENACE -PE/DEIN and Report N° 00136-2018-SENACE-PE/DEIN.
SUSTAINABILITY AND ANNUAL REPORT 2019 72 OUR TEAM MAKES
THE BEST AIRPORT IN SOUTH AMERICA THE DIFFERENCE CEO MESSAGE We recognize that human management is a key element to provide excellence MAIN MILESTONES services and operate ef ciently and with responsibility. For this reason, we make IN 2019 sure to attract new employees, retain those already working with us and develop ONGOING their skills. TRANSFORMATION Increase in the number of collaborators by 18%, in particular for the expansion project OUR PERFORMANCE 0.20 accident ratio ETHICS AND CORPORATE GOVERNANCE 03 101 training sessions in a total of 18,917 hours EXCELLENCE 04 SERVICES 2 volunteering campaigns EFFICIENT AND 92% compliance with the 2019 Training Plan 05 RESPONSIBLE OPERATION 18% of workers form part of the Sindicato Único de Trabajadores Aeroportuarios LET’S GROW 06 TOGETHER (SUTRALAP) (Single Union of Airport Workers) of Lima Airport Partners
WE PROTECT 07 OUR ENVIRONMENT OUR TEAM 08 MAKES THE DIFFERENCE COMPOSITION OF THE TEAM BY COMPOSITION SEX 2017 - 2019 402 ADJUSTMENT TO STANDARDS OF THE TEAM 102-8 103-1, 103-2, 103-3 Conditions required for the expansion project 331 303 202 In 2019, we increased our personnel as a 179 result of the reorganization of the 158 maintenance team, the strengthening of operating teams to meet the growth of passengers in the current terminal and WOMEN MEN WOMEN MEN WOMEN MEN the creation of a team in charge of the airport expansion project. 2017 2018 2019
Note: All employees are included in LAP payroll (working on a full time basis).
SUSTAINABILITY AND ANNUAL REPORT 2019 73 From our officers and collaborators, 33% are the personnel and had 0 events in the year. COMPOSITION OF OUR TEAM BY POST: 2017 - 2019 women and 71% are between 30 and 50 years old. In addition, all our employees work The team created to manage the airport 252 THE BEST AIRPORT on a full time basis. expansion project is called LAP Project and 214 234 IN SOUTH AMERICA has been reinforced with highly specialized CEO As regards the reorganization of the professionals both local and foreign. At the MESSAGE maintenance area, we hired 32 technicians, end of 2019, the LAP Project team was made 144 141 112 119 MAIN MILESTONES as a result of which we redefined the up of 120 collaborators. 92 104 IN 2019 occupational risk matrix by making a detailed 41 assessment at the beginning of 2019. In this 27 ONGOING 20 26 26 23 TRANSFORMATION way, we determined the controls that will reduce the risk of accidents and incidents of 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 201720192018 2019 OUR PERFORMANCE MANAGERS HEADS SUPERVISOR / ANALYSTS / COLLABORATORS IN ETHICS AND CORPORATE COORDINATOR ASSISTANTS OPERATING AREAS 03 GOVERNANCE
EXCELLENCE 04 SERVICES EFFICIENT AND 05 RESPONSIBLE OPERATION COMPOSITION OF OUR TEAM BY AGE GROUP: 2017 - 2019 LET’S GROW 06 TOGETHER
WE PROTECT 07 OUR ENVIRONMENT 431 OUR TEAM 08 MAKES THE DIFFERENCE 352 ADJUSTMENT 312 TO STANDARDS
91 82 82 77 76 72
<30 YEARS BETWEEN >50 YEARS <30 YEARS BETWEEN >50 YEARS <30 YEARS BETWEEN >50 YEARS 30 AND 50 30 AND 50 30 AND 50
2017 2018 2019
SUSTAINABILITY AND ANNUAL REPORT 2019 74 COMPOSITION OF OUR TEAM BY POST AND SEX: 2017 - 2019 THE BEST AIRPORT IN SOUTH AMERICA
CEO MESSAGE 54 MAIN MILESTONES IN 2019 198 ONGOING TRANSFORMATION 108 OUR PERFORMANCE 63 237 129 252 ETHICS AND CORPORATE 03 GOVERNANCE
EXCELLENCE SERVICES 04 78 EFFICIENT AND RESPONSIBLE OPERATION 05 COMPOSITION OF OUR TEAM BY AVERAGE TIME OF CONTINUANCE LET’S GROW IN POST IN YEARS: 2017 - 2019 06 TOGETHER WE PROTECT 60 84 52 07 OUR ENVIRONMENT 60 OUR TEAM MAKES THE DIFFERENCE 08 14 23 7 15 14 27 20 6 ADJUSTMENT 13 14 17 TO STANDARDS 13 11 15 12 14 9 11 12 WOMEN MEN WOMEN MEN WOMEN MEN 8 8 8 7 9 5 8 4 2019 2018 2017
2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2019 MANAGERS SUPERVISOR / COORDINATORS COLLABORATORS IN
MANAGERS HEADS SUPERVISOR / ANALYSTS / COLLABORATORS IN OPERATING AREAS COORDINATOR ASSISTANTS OPERATING AREAS HEADS ANALYSTS / ASSISTANTS
SUSTAINABILITY AND ANNUAL REPORT 2019 75 LAP TALENT
In LAP we are firmly committed to the professional development of our THE BEST AIRPORT collaborators. We constantly provide them with training in the skills IN SOUTH AMERICA required to render an excellence service and with tools for their CEO continuous growth. MESSAGE
MAIN MILESTONES IN 2019 Training 404-1, 404-2 ONGOING It is an organized and systemic process through which collaborators TRANSFORMATION acquire or develop specific knowledge and skills related to their posts, OUR PERFORMANCE take up new challenges or assume more responsibility. ETHICS AND CORPORATE 03 GOVERNANCE
EXCELLENCE Our training program includes the following six categories: 04 SERVICES EFFICIENT AND 05 RESPONSIBLE OPERATION
LET’S GROW 06 TOGETHER 1. MANAGEMENT COMMITTEE 4. REGULAR WE PROTECT Its scope is the C level and it covers specific specialized topics. Its purpose is to meet the training needs of each area or post. OUR ENVIRONMENT 07 Examples: Soft skills, coaching. Examples: Process management and improvement, risk-based audit and organizational culture. OUR TEAM 08 MAKES THE DIFFERENCE
ADJUSTMENT TO STANDARDS 2. PROFESSIONAL DEVELOPMENT 5. COMPLIANCE
Its goals are to establish retention or training plans to assume more Mandatory training required under the applicable regulations or responsibilities, such as specialized programs, master degree legislation. programs, training abroad. Examples: Hazardous goods, aeronautical phraseology and Example: General Airport Management Training. practice with real fire.
3. SCHOOL OF LEADERS 6. LAP ACADEMY
Its purpose is to develop leadership skills in managers and heads Several courses that can be taken by all collaborators voluntarily and prepare them to manage their teams better and face future and aim to improve their productivity and skills. challenges. Examples: Quick methods, English and accountability. Examples: Time management, delegation, situational leadership.
SUSTAINABILITY AND ANNUAL REPORT 2019 76 In 2019 we reached a total of 50 hours of training on average and 19,023 man hours.
THE BEST AIRPORT NUMBER OF TRAINING HOURS BY POST: 2017 - 2019 IN SOUTH AMERICA 7,160
CEO 5,105 5,146 MESSAGE 4,722 4,992 4,174 3,953 MAIN MILESTONES 3,522 3,442 3,013 IN 2019 2,869 2,452 ONGOING 2,301 2,443 1,837 TRANSFORMATION
OUR PERFORMANCE 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019
ETHICS AND CORPORATE 03 GOVERNANCE MANAGERS HEADS SUPERVISOR / COORDINATORS ADMINISTRATIVE PERSONNEL: OPERATING PERSONNEL: ANALYSTS / ASSISTANTS GENERAL SUPERVISOR, EXCELLENCE SUPERVISORS, FIREFIGHTERS, 04 SERVICES AGENTS EFFICIENT AND 05 RESPONSIBLE OPERATION
LET’S GROW TOGETHER 06 NUMBER OF TRAINING HOURS AVERAGE TRAINING HOURS BY POST: 2017 - 2019 WE PROTECT BY SEX: 2017 - 2019 07 OUR ENVIRONMENT OUR TEAM 08 MAKES THE DIFFERENCE 10,984 14,094 110 ADJUSTMENT 7,582 86 87 85 TO STANDARDS 7,923 72 74 61 55 51 51 53 2,725 31 34 24 25 1,088 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019
WOMEN MEN WOMEN MEN WOMEN MEN MANAGERS HEADS SUPERVISOR / COORDINATORS ADMINISTRATIVE PERSONNEL: OPERATING PERSONNEL: ANALYSTS / ASSISTANTS GENERAL SUPERVISOR, SUPERVISORS, FIREFIGHTERS, 2017 2018 2019 AGENTS
About 600 collaborators received training in 2019.
SUSTAINABILITY AND ANNUAL REPORT 2019 77 Performance Assessment 404-3
Our Performance Management Program is called “Fly+” and its purpose is the development of our THE BEST AIRPORT IN SOUTH AMERICA leaders and collaborators by measuring their skills and establishing and measuring goals. Likewise, we prepare reports on the results obtained in order for the leaders to schedule feedback meetings CEO with each of their collaborators to talk about and create an action plan to reinforce positive aspects MESSAGE and identify opportunities of improvement to work on them. MAIN MILESTONES IN 2019 In 2019, through our Performance Management Program “Fly+”, we assessed 437 collaborators, ONGOING representing 90% of our total population. TRANSFORMATION
OUR PERFORMANCE
ETHICS AND CORPORATE 03 GOVERNANCE
EXCELLENCE 04 SERVICES NUMBER AND PERCENTAGE OF COLLABORATORS NUMBER OF ASSESSED COLLABORATORS BY SEX: 2017 - 2019 EFFICIENT AND 231 05 RESPONSIBLE OPERATION ASSESSED BY POST: 2017 - 2019 LET’S GROW 204 203 353 06 TOGETHER 299 WE PROTECT 289 07 OUR ENVIRONMENT OUR TEAM 175 MAKES THE DIFFERENCE 08 129 139 148
ADJUSTMENT 105 103 TO STANDARDS 83 87 76
36 40 WOMEN MEN WOMEN MEN WOMEN MEN 28 28 23 27 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019
MANAGERS HEADS (PROJECT MANAGERS SUPERVISORS ADMINISTRATIVE OPERATING PERSONNEL On the other hand, in 2019 we developed a new version of the Performance Management Program / DUTY) / COORDINATORS PERSONNEL ON DUTY / SENIOR ANALYSTS ON DUTY “Fly+”, in which the changes we are making will allow us to continue working on talent identification and people management and align to our new culture of high performance and exceptional service.
*The number of assessed managers differs from the total number counted in 2019, since 2 of them joined the company after the assessment and 1 of them does not work at LAP anymore. *The number of assessed project managers / duty differs from the total number counted in 2019 since 1 of them does not work at LAP anymore.
SUSTAINABILITY AND ANNUAL REPORT 2019 78 Rotation ROTATION DUE TO VOLUNTARY RESIGNATION BY AGE GROUP: 2017- 2019 401-1
One of our main indicators is the measurement of the ratio of rotation of our collaborators, that is, the 16.00 3.0% 2.0% 2.0% 2.0% THE BEST AIRPORT number of collaborators who resign voluntarily, in order to improve our management of talent and 16.00 2.0% IN SOUTH AMERICA increase retention rates. 14.00 1.0% 1.0% 1.0% 1.0% 1.0% 12.00 0.0% 0.0% CEO 13.00 0.0% MESSAGE 10.00 11.00 11.00 Rotation of personnel due to voluntary resignation was as follows: -1.0% 8.00 -2.0% MAIN MILESTONES 6.00 7.00 IN 2019 6.00 ROTATION DUE TO VOLUNTARY RESIGNATION: 2017 - 2019 4.00 -3.0% 4.00 ONGOING 2.00 1.00 3.00 -4.0% TRANSFORMATION 0.00 -5.0% <30 YEARS BETWEEN >50 YEARS <30 YEARS BETWEEN >50 YEARS <30 YEARS BETWEEN >50 YEARS 30 AND 50 30 AND 50 30 AND 50 OUR PERFORMANCE 2017 2018 2019
ETHICS AND CORPORATE 03 GOVERNANCE DESCRIPTION NUMBER % NUMBER % NUMBER % 2017 2018 2019
EXCELLENCE Rotation due to NUMBER OF VOLUNTARY PERCENTAGE OF VOLUNTARY SERVICES 18 4.0% 18 4.0% 20 3.0% 04 voluntary resignation RESIGNATIONS LEFT AXIS RESIGNATIONS RIGHT AXIS EFFICIENT AND 05 RESPONSIBLE OPERATION Total collaborators 461 510 604
LET’S GROW 06 TOGETHER Human Rights WE PROTECT ROTATION DUE TO VOLUNTARY RESIGNATION BY SEX: 2017- 2019 07 OUR ENVIRONMENT UN Global Compact – Principles 4, 5 and 6 OUR TEAM 08 MAKES THE DIFFERENCE At LAP we are strongly committed to the At the same time, we have guidelines that ADJUSTMENT 16.00 2.5% TO STANDARDS 14.00 2.0% 2.0% 2.0% 2.0% protection of the rights of our collaborators. govern the labor relationship and are based on 2.0% 12.00 This commitment is reflected in our Internal equal treatment and non-discrimination due to 12.00 10.00 1.0% 11.00 1.0% 1.5% Work Regulations, which establish zero sex, race, religion, opinion, language, sexual 8.00 10.00 6.00 8.00 1.0% tolerance to any situation of violence, orientation, nationality, social class, color, age, 7.00 8.00 4.00 0.5% harassing, forced labor or child labor. political activities, disability, among others. 2.00 0.00 0.0% WOMEN MEN WOMEN MEN WOMEN MEN
2017 2018 2019
NUMBER OF VOLUNTARY PERCENTAGE OF VOLUNTARY RESIGNATIONS LEFT AXIS RESIGNATIONS RIGHT AXIS
SUSTAINABILITY AND ANNUAL REPORT 2019 79 LAP PRIDE Pacto Mundial NNU - Principios 4, 5 y 6
THE BEST AIRPORT We make sure that our collaborators feel IN SOUTH AMERICA motivated and proud to work with us. For this CEO reason, we consider every opportunity of MESSAGE improvement we can manage. In the last MAIN MILESTONES workplace environment survey, which was IN 2019 carried out by the Great Place to Work Institute, ONGOING the general recommendations covered topics TRANSFORMATION such as training, leader management and
OUR PERFORMANCE camaraderie.
ETHICS AND CORPORATE 03 GOVERNANCE In 2019 we updated the Flextime Program, EXCELLENCE which provides workers flexibility in their 04 SERVICES schedules so that they are able to combine EFFICIENT AND 05 RESPONSIBLE OPERATION professional with personal activities. We aim to LET’S GROW improve this program by increasing flextimes for 06 TOGETHER collaborators to arrive and leave. In turn, we WE PROTECT 07 OUR ENVIRONMENT strengthened internal communication by OUR TEAM launching the corporate social network 08 MAKES THE DIFFERENCE Workplace, which is a private network for all LAP ADJUSTMENT collaborators, where we share every day the TO STANDARDS achievements and important events of each area.
Additionally, we worked on the formulation of the Finally, this year we launched the Recognition For 2020 the program will be reformulated, home office benefit and adopted a new form of Gala as part of the LAP Star recognition eliminating categories that are not used distance working trying to make an impact on program. This gala included the following anymore and including new ones with the the effectiveness and satisfaction of the categories: Time in the company, best leader purpose that leaders are able to recognize their personnel. The pilot program will be and LAP values. teams and improve the perception of LAP implemented from January to March 2020 to collaborators. evaluate its impact accurately.
SUSTAINABILITY AND ANNUAL REPORT 2019 80 OCCUPATIONAL HEALTH AND SAFETY 403-1, 403-4, 403-5, 403-9 UN Global Compact – Principle 1 103-1, 103-2, 103-3 Occupational health and safety THE BEST AIRPORT IN SOUTH AMERICA In line with our commitment to integrated safety in the company, we have adopted several measures
CEO for the prevention of health and safety risks in our collaborators. We aim to reduce the probability of MESSAGE accidents at the workplace and occupational diseases. At the same time, we continuously make our
MAIN MILESTONES personnel sensitive to every kind of risks and recognize their participation in the Occupational Health IN 2019 and Safety Management System (OHSMS).
ONGOING TRANSFORMATION Compliance with our occupational health and safety (OHS) policies is distributed in four levels:
OUR PERFORMANCE
ETHICS AND CORPORATE 03 GOVERNANCE In the first one, we are aligned with and are certified under the OHSAS 18001 standard.
EXCELLENCE 04 SERVICES In the second one, we have operating manuals, procedures and instructions in which responsibilities are defined and controls applicable to occupational hazards and risks are described. EFFICIENT AND 05 RESPONSIBLE OPERATION In the third one, we have OHSMS instructions and other documents related to a specific activity. LET’S GROW TOGETHER 06 In the fourth one, we have the forms and records specified in the OHSMS, where the execution of defined WE PROTECT controls for the reduction of occupational risks is described. 07 OUR ENVIRONMENT OUR TEAM 08 MAKES THE DIFFERENCE These actions allowed us to reduce in 2019, by We also made a positive impact through our ADJUSTMENT 20.5%, the most common occupational prevention and health campaigns. According to TO STANDARDS accidents reported by our personnel and several surveys made to the collaborators, 90% contractors. These accidents were falls to a of them understood the messages given in the lower level, falls to the same level and strikes by campaigns. an object.
SUSTAINABILITY AND ANNUAL REPORT 2019 81 Likewise, in 2019 we verified that the companies that render services to us comply with the Occupational Health and Safety (OHS) Act and its regulations. Compliance was 94% on average. Finally, we conducted 1,812 unexpected OHS inspections to several groups, such as our THE BEST AIRPORT collaborators and contractors, to verify whether the working conditions were appropriate. IN SOUTH AMERICA
CEO MESSAGE COMPONENT 2017 2018 2019
MAIN MILESTONES Days of absence 3,913 4,331 3,638 IN 2019 Rates of occupational diseases 0 0 0 ONGOING Severity rate 250.2 148.5 28.82 TRANSFORMATION Accident rate 2.92 0.98 0.20 OUR PERFORMANCE
ETHICS AND CORPORATE Frequency rate of total accidents 11.7 7.68 7.01 03 GOVERNANCE N° of total accidents 13 9 9 EXCELLENCE SERVICES 04 Minor 0 2 0 EFFICIENT AND 05 RESPONSIBLE OPERATION Disabling (medical rest for more than 13 7 9 LET’S GROW one day) 06 TOGETHER Frequency rate of serious accidents 11.7 5.98 7.01 WE PROTECT 07 OUR ENVIRONMENT OUR TEAM N° of deaths 0 0 0 08 MAKES THE DIFFERENCE % of deviations determined as a result of the 25.6% 10% 78.2% ADJUSTMENT IPER and scheduled inspections TO STANDARDS IPER: Hazard Identification and Risk Assessment Occupational Health and Safety Committee The information only includes the current operation of the airport. (COSSO for its abbreviation in Spanish) 403-4
Every accident or incident of our collaborators and contractors is notified to the Operations Control In compliance with the provisions set forth in the OHS Act as regards companies with more than 20 Center, which enters the information in the IsoTools system. This system makes it possible to workers, we have an Occupational Health and Safety Committee (COSSO). It is made up of 5 manage the processes associated to the management systems, is used to record incidents and is a members (1.64% of our workers) and its meetings are held once a month. As part of its activities, the repository of documents. Then the investigation process starts and we determine the causes of the COSSO conducts regular inspections in the administrative and operating areas to reinforce preventive accidents and incidents. Thus, preventive and corrective measures are established to avoid that they management. Thus, in 2019, we conducted 4 inspections that had been previously scheduled. occur again.
SUSTAINABILITY AND ANNUAL REPORT 2019 82 Occupational Health and Safety – LAP Project In April 2019, LAP started the execution of the JCIA that reason, we trained all the personnel, which THE BEST AIRPORT expansion project with several works previous to the included inductions, task training, spreading of safe IN SOUTH AMERICA main works. Until September 15 the Consorcio work procedures, pre operational tasks and circles CEO Amancae EPC was responsible for the works and of safety. MESSAGE then, LAP Project undertook the direct supervision of MAIN MILESTONES the fieldwork since that date. The types of accidents are shown in the following IN 2019 table: ONGOING TRANSFORMATION In order to offer them the best working conditions, we decided to manage specifically the occupational OUR PERFORMANCE health and safety of the new project workers. For ETHICS AND CORPORATE 03 GOVERNANCE
EXCELLENCE 04 SERVICES EFFICIENT AND 05 RESPONSIBLE OPERATION 3 3
LET’S GROW 06 TOGETHER
WE PROTECT 07 OUR ENVIRONMENT 2 2 2 2 2 OUR TEAM 08 MAKES THE DIFFERENCE
ADJUSTMENT 1 1 1 TO STANDARDS
At the end of the year all objections made by LAP to each of the contractors inspected 0 00 000 000 0 0 0 000 000 2 2 2 0 0 0 0 0 during the expansion project activities had been rectified. JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
INCIDENT WITH MINOR ACCIDENT DISABLING ACCIDENT MATERIAL DAMAGEL
SUSTAINABILITY AND ANNUAL REPORT 2019 83 VOLUNTEERING: TOGETHER FREEDOM OF ASSOCIATION 102-41 WE ACHIEVE MORE RESULTS UN Global Compact – Principle 3
THE BEST AIRPORT IN SOUTH AMERICA Within the framework of our corporate volunteering program, we conducted 2 campaigns with more than At LAP we support freedom of association and recognize the right of our collaborators to become members 120 volunteers. of any institution or association in compliance with the laws in force. In April 2019, we entered into a CEO MESSAGE collective agreement with the SUTRALAP for two periods (2019 and 2020). The majority of workers (115) The Pan American and Parapan American Games campaign was carried out in coordination with the that are members of the SUTRALAP work in operating shifts (18% of all LAP collaborators). MAIN MILESTONES IN 2019 operations and safety areas. The purpose was to provide assistance to the athletes of all the delegations in the processes and flows of arrival in the airport. ONGOING CONCEPT NUMBER PERCENTAGE TRANSFORMATION Total workers 630 100% On the other hand, the “Navireciclarte” campaign was conducted in coordination with the neighboring OUR PERFORMANCE Workers who are not members of the SUTRALAP 515 82% schools, dealing with topics related to environmental care. 16 local educational institutions participated in ETHICS AND CORPORATE 03 GOVERNANCE this campaign and were given 2,645 handcrafting kits. Workers who are members of the SUTRALAP 115 18% Workers who are members of the SUTRALAP EXCELLENCE 111 18% 04 SERVICES and work in operating shifts EFFICIENT AND Workers who are members of the SUTRALAP 4 1% 05 RESPONSIBLE OPERATION and work in administrative shifts LET’S GROW 06 TOGETHER
WE PROTECT 07 OUR ENVIRONMENT OUR TEAM 08 MAKES THE DIFFERENCE
ADJUSTMENT TO STANDARDS
SUSTAINABILITY AND ANNUAL REPORT 2019 84 ADJUSTMENT TO STANDARDS
We believe that transparency and contribution to sustainable development is the best way to consolidate the relationships with our stakeholders.
SUSTAINABILITY AND ANNUAL REPORT 2019 85 ABOUT THIS REPORT 102-42, 102-43, 102-45, 102-54 THE BEST AIRPORT IN SOUTH AMERICA This document is the 2019 Sustainability Report This report was prepared in accordance with the and Annual Report of Lima Airport Partners Global Reporting Initiative (GRI) Standards in CEO MESSAGE S.R.L. It presents our economic, social and their essential option. We reported the most environmental performance from January 1 to relevant issues for the sustainable management MAIN MILESTONES December 31, 2019. It includes our main of our organization. In the same way, we IN 2019 achievements, commitments and progresses in incorporated and ratified our commitment to ONGOING order to inform our stakeholders about LAP compliance with the ten principles of the Global TRANSFORMATION actions during the year. The financial information Compact, to which we adhere and which cover OUR PERFORMANCE contained in this report follows the same topics related to human rights, working guidelines as regards deadline and coverage. conditions, environment and fight against ADJUSTMENT TO STANDARDS corruption.
ABOUT THIS REPORT
OUR MATERIAL ISSUES PROCESS OF MATERIAL ISSUES LIST OF GRI CONTENTS This report was prepared based on the definition of the most important social, environmental and GLOBAL governance issues for our management. We conducted the process of material issues in three stages: COMPACT
Analysis of the environment and identification of the relevant issues, opportunities and risks as regards sustainability We analyzed the environment and identi ed the relevant issues, opportunities and risks as regards sustainability through interviews with the main managers and two workshops with leaders of the key areas of LAP and ADP.
Collection of perceptions, expectations and interests of the stakeholders We provided spaces of dialogue to collect information using a given methodology according to the pro le and size of each of the stakeholders. As part of the preparation of this report, we implemented four spaces of dialogue and conducted interviews with all LAP stakeholders.
Valuation of the relevance of each issue identified We gave priority to and determined the material issues based on our valuation of their relevance for the company As a result of the above, the 2019 Integrated Report, where the sustainability approach is developed, and the stakeholders. In addition, we revised both the sector trends according to the Sam index for transport and was prepared. This report explains LAP corporate management and releases the practices and actions infrastructure and Fraport AG material issues. with our main stakeholders.
SUSTAINABILITY AND ANNUAL REPORT 2019 86 OUR MATERIAL ISSUES 102-46, 102-47 THE BEST AIRPORT IN SOUTH AMERICA This report shows the results of our management according to our material issues identified in 2018 and managed during 2019. CEO MATERIAL ISSUES LAP 2018 MESSAGE
MAIN MILESTONES Eciency, innovation and optimization of operations (internal and external coverage): Management of environmental and IN 2019 Optimize the processes to mitigate the impacts of the limited infrastructure and respond to the airport expansion waste impacts of the airport and scenario that requires more coordination with the airport industry actors. non-airport operations ONGOING Guarantee of the conditions required to TRANSFORMATION Guarantee of the conditions required to start the airport expansion project 5.0 (internal coverage): start the airport expansion project OUR PERFORMANCE Have personnel with experience in aviation and duly educated and trained to face the challenges of the airport expansion project as well as a defined and transparent organizational structure with leadership to manage the processes and impacts for the project expansion. 4.5 ADJUSTMENT TO STANDARDS Generation of Generation of relationships with the neighboring community and stakeholders relationships with the Efficiency, innovation and in Lima and Callao (external coverage): 4.0 neighboring community optimization of operations ABOUT Create strategic channels of communication with the locations in the areas of direct influence and stakeholders and stakeholders in for a quality service to the THIS REPORT Lima and Callao and in Lima and Callao and efficiently respond to the social environmental impacts of the operation, in particular as airport customers and management of social regards the airport expansion. users OUR MATERIAL 3.5 environmental impacts ISSUES Familiarity with the community (internal and external coverage): LIST OF GRI Strengthening of the familiarity CONTENTS Generate spaces of interaction and possibilities for the development of the daily activities of the airport with the airport community community through collaborative work. 3.0 GLOBAL COMPACT Environmental management (internal and external coverage): Compliance system that ensures the transparency and integrity of LAP Ensure the appropriate management of the environmental (in particular, noise) and waste impacts by monitoring 2.5 actions the operations carried out by the company. Relevance for the stakeholders (GRI) Appropriate use of the current Transparency and integrity (internal coverage): 2.0 and future infrastructure by the Have a compliance system structure to ensure a responsible behavior and conduct the operations honestly and passengers with integrity and transparency, according to the ethical standards and the legal provisions of the country.
Infrastructure management (internal and external coverage): 1.5 Promote the appropriate use of the current infrastructure for an optimal experience for the passenger, accompanied by the implementation of traffic signal plans for the user that reduce congestion and organize the flow in the airport. 1.0 1 1.5 2 2.5 3 3.5 4 4.5 5
Relevance for LAP According to contents 102-47 and 102-55 of the GRI Standards, the material issues are presented in the List of GRI Contents, followed by the management approaches according to GRI 103 and the contents covered by the Standards, in the order they appear in said list.
SUSTAINABILITY AND ANNUAL REPORT 2019 87 ÍNDICE DE CONTENIDOS GRI 102-55 THE BEST AIRPORT IN SOUTH AMERICA
CEO GRI STANDARD CONTENT PAGE NUMBER OMISSION MESSAGE
MAIN MILESTONES GENERAL CONTENTS IN 2019 102-1: Name of the organization Section: Our Company. Page: 10 ONGOING TRANSFORMATION 102-2: Activities, brands, products and services Section: Our Company, Our Proposal of Value. Pages: 10 y 12 OUR PERFORMANCE 102-3: Location of premises ADJUSTMENT TO STANDARDS 102-4: Location of operations Section: Our Company. Page: 10
ABOUT 102-5: Property and legal form THIS REPORT
OUR MATERIAL ISSUES Section: Our Company; Different Customers, Same Excellence. Markets served 102-6: Pages: 10 y 30 LIST OF GRI CONTENTS GRI 102: Section: The Best Airport in South America, Our Proposal of Value GLOBAL 2016 General 102-7: Size of the organization Pages: 4-5, 12 and 13 COMPACT Contents
102-8: Information about employees and other workers Section: Composition of the Team. Pages: 73-75
102-9: Chain of supply Section: Supplier Management . Page: 52 Jobs generated
102-10: Significant changes in the organization and its chain of supply Section: Our Company, The New Airport. Page: 20
102-11: Preventive principle or approach Section: Environmental Management . Page: 63
102-12: External initiatives Section: Memberships. Page: 17 Include date of adoption. 102-13: Membership in non-profit organizations
102-14: Statement of senior executives responsible for decision making Section: Message from the CEO. Pages: 6-7
SUSTAINABILITY AND ANNUAL REPORT 2019 88 GRI STANDARD CONTENT PAGE NUMBER OMISSION
GENERAL CONTENTS THE BEST AIRPORT Our Company, Risk Management and Compliance System IN SOUTH AMERICA 102-16: Values, principles, standards and rules of behavior Section: Pages: 10 y 27 CEO Committees responsible 102-18: Governance structure Section: Corporate Governance. Page: 29 MESSAGE for ESG issues MAIN MILESTONES 102-40: List of stakeholders Section: Our Sustainable Management. Page: 15 IN 2019
ONGOING 102-41: Collective bargaining agreements Section: Freedom of Association. Page: 84 TRANSFORMATION
OUR PERFORMANCE 102-42: Identification and selection of stakeholders Section: Our Sustainable Management, About this Report. Pages: 15 y 86
ADJUSTMENT 102-43: Approach for the participation of stakeholders Section: Our Sustainable Management, About this Report. Pages: 15 y 86 TO STANDARDS
102-44: Key topics and concerns Section: Our Sustainable Management, About this Report. Page: 15 ABOUT THIS REPORT
OUR MATERIAL 102-45: Entities included in the consolidated financial statements Section: About this Report. Pages: 10 y 86 ISSUES GRI 102: LIST OF GRI 2016 General 102-46: Definition of contents of the reports and coverage of issues Section: Our Material Issues. Page: 87 CONTENTS Contents GLOBAL COMPACT 102-47: List of material issues Section: Our Material Issues. Page: 87
102-48: Restatement of information Section: Our Proposal of Value. Page: 13
No significant change in respect of the periods covered by the previous 102-49: Changes in the preparation of reports reports, in the list of material issues and in coverage
102-50: Reporting period 2019
102-51: Date of the last report 2018
102-52: Reporting cycle Anual
102- 53: Person of contact for questions about the report Anna Sanchez [email protected]
SUSTAINABILITY AND ANNUAL REPORT 2019 89 GRI STANDARD CONTENT PAGE NUMBER OMISSION
GENERAL CONTENTS THE BEST AIRPORT IN SOUTH AMERICA This report has been prepared in accordance with the GRI Standards, 102-54: Statement of preparation of the report according to the CEO GRI Standards essential option. MESSAGE GRI 102: Page: 86 2016 General MAIN MILESTONES Contents 102-55: GRI contents Section: List of GRI Contents. Page: 88-97 IN 2019
ONGOING 102-56: External verificationt We have no policies for the external verification of the report. TRANSFORMATION
OUR PERFORMANCE MATERIAL ISSUES
ADJUSTMENT EFFICIENCY, INNOVATION AND OPTIMIZATION OF OPERATIONS FOR A QUALITY SERVICE TO THE AIRPORT CUSTOMERS AND USERS TO STANDARDS
ABOUT Section: World-class Standards. Page 41 THIS REPORT 103-1: Explanation of the material issue and its coverage Section: Different Customers, Same Experience. Page 30 OUR MATERIAL ISSUES
LIST OF GRI CONTENTS GRI 103: Section: World-class Standards. Page 41 Management 103-2: The management approach and its components GLOBAL Section: Different Customers, Same Experience. Page 30 COMPACT approach 2016
Section: World-class Standards. Page 41 103-3: Management approach assessment Section: Different Customers, Same Experience. Page 30
GRI 201: Economic perfor- 201-1: Direct economic value generated and distributed Section: Our Proposal of Value. Page: 13 mance in 2016
Indicators LAP 6: Total number of passengers per year, broken down by type Section: Passengers and Visitors. Page: 31 LAP 2018
SUSTAINABILITY AND ANNUAL REPORT 2019 90 GRI STANDARD CONTENT PAGE NUMBER OMISSION
MATERIAL ISSUES THE BEST AIRPORT IN SOUTH AMERICA LAP 7: Total number of airline movements (including all flights: Section: Airlines. Page: 33 CEO commercial, cargo and others) MESSAGE
MAIN MILESTONES Indicators LAP 8: Total number of tons of cargo Section: The Best Airport in South America. Page: 4-5 IN 2019 LAP 2018 Different Customers, Same Excellence / World-class Standards ONGOING LAP 9: Policies and guidelines for customer service Section: Pages: 30 y 41 TRANSFORMATION
OUR PERFORMANCE LAP 10: Level of satisfaction of customers Section: Customer Satisfaction. Pages: 38-39
ADJUSTMENT GUARANTEE OF THE CONDITIONS REQUIRED TO START THE AIRPORT EXPANSION PROJECT TO STANDARDS
ABOUT Section: The New Airport. Page:20 THIS REPORT 103-1: Explanation of the material issue and its coverage Section: Supplier Management . Page: 52
OUR MATERIAL Section: Composition of the Team. Page: 73 ISSUES
LIST OF GRI CONTENTS GRI 103: Section: The New Airport. Page:20 103-2: The management approach and its components Section: Supplier Management . Page: 52 GLOBAL Management COMPACT approach 2016 Section: Composition of the Team. Page: 73
Section: The New Airport. Page:20 103-3: Management approach assessment Section: Supplier Management . Page: 52 Section: Composition of the Team. Page: 73
GRI 401: 401-1: New employees hired and rotation of employees Section: Rotation. Page: 79 Employment 2016
GRI 404: Training and 404-1: Mean hours of education per year per employee Section: Talent Management. Pages: 76-77 education 2016
SUSTAINABILITY AND ANNUAL REPORT 2019 91 GRI STANDARD CONTENT PAGE NUMBER OMISSION
GUARANTEE OF THE CONDITIONS REQUIRED TO START THE AIRPORT EXPANSION PROJECT THE BEST AIRPORT Omission due to confidentiality: The IN SOUTH AMERICA continuous transition programs are 404-2: Programs to improve employees’ skills and programs not mentioned. LAP activates the “Thank You” program specifically for CEO to help during transition the workers who resign voluntarily or MESSAGE GRI 404: who retire before their age of Training and retirement. MAIN MILESTONES education 2016 IN 2019 404-3: Percentage of employees whose performance and professional Section: Performance Assessment. Page: 78 development are regularly assessed ONGOING TRANSFORMATION
OUR PERFORMANCE Section: The Airport. Page: 18 LAP 3: Number and type of changes in the infrastructure Section: The New Airport. Page: 20 ADJUSTMENT TO STANDARDS Indicators LAP 2018 LAP 4: Communication of the expansion and its management to the stakeholders Section: Our Sustainable Management . Page: 14 ABOUT THIS REPORT
OUR MATERIAL LAP 5: Internal processes (new or modified) for the expansion management Section: The New Airport. Page: 20 ISSUES
LIST OF GRI CONTENTS GENERATION OF RELATIONSHIPS WITH THE NEIGHBORING COMMUNITY AND STAKEHOLDERS IN LIMA AND CALLAO AND MANAGEMENT OF SOCIAL ENVIRONMENTAL IMPACTS
GLOBAL COMPACT
103-1: Explanation of the material issue and its coverage Section: Socially Responsible Management . Page: 60 Section: Our Stakeholders. Page: 15
GRI 103: Management Section: Socially Responsible Management . Page: 60 approach 2016 103-2: The management approach and its components Section: Our Stakeholders. Page: 15
103-3: Management approach assessment Section: Socially Responsible Management. Page: 60
GRI 204: Procurement 204-1: Proportion of spending in local suppliers Section: Supplier Management. Page: 52 practices 2016
SUSTAINABILITY AND ANNUAL REPORT 2019 92 GRI STANDARD CONTENT PAGE NUMBER OMISSION
GENERATION OF RELATIONSHIPS WITH THE NEIGHBORING COMMUNITY AND STAKEHOLDERS IN LIMA AND CALLAO AND MANAGEMENT OF SOCIAL ENVIRONMENTAL IMPACTS THE BEST AIRPORT IN SOUTH AMERICA GRI 419: Socioeconomic 419-1: Failure to comply with the laws and rules on social and economic LAP has not been imposed any fine or sanction in the reported period. CEO compliance 2016 aspects MESSAGE
MAIN MILESTONES Explain the AEIS, indicate the IN 2019 413-1: Operations with the participation of the local community, impact Section: Socially Responsible Management, Area of Direct Influence characteristics of the area of assessments and development programs Pages: 60 and 58 influence (vulnerable groups) ONGOING GRI 413: TRANSFORMATION Loca communities 2016 OUR PERFORMANCE 413-2: Operations with significant negative impacts – real or potential – Section: Socially Responsible Management, Social Challenges of the on the local communities ADJUSTMENT Construction of the New Airport. Pages: 60 and 62 TO STANDARDS
ABOUT GRI 414: Omission due to lack of THIS REPORT Social assess- 414-1: New suppliers who have been selected according to social criteria information: The contents will be managed since 2021. OUR MATERIAL ment of suppliers ISSUES 2016 LIST OF GRI 414-2: Negative social impacts on the chain of supply and measures Section: Supplier Management. Page: 52 CONTENTS
GLOBAL COMPACT FAMILIARITY WITH THE AIRPORT COMMUNITY
103-1: Explanation of the material issue and its coverage Section: Our Stakeholders. Page: 15 GRI 103: Management ap- 103-2: The management approach and its components Section: Our Stakeholders. Page: 15 proach 2016 103-3: Management approach assessment Section: Our Stakeholders. Page: 15
Indicators LAP 1: Number of annual claims by type and status of the claim Section: Customer Satisfaction . Page: 39 LAP 2018
SUSTAINABILITY AND ANNUAL REPORT 2019 93 GRI STANDARD CONTENT PAGE NUMBER OMISSION
ENVIRONMENTAL MANAGEMENT THE BEST AIRPORT IN SOUTH AMERICA 103-1: Explanation of the material issue and its coverage Section: Environmental Management. Page: 63
CEO GRI 103: The management approach and its components Environmental Management. Page: 63 MESSAGE Management ap- 103-2: Section: proach 2016 MAIN MILESTONES 103-3: Management approach assessment Section: Environmental Management. Page: 63 IN 2019
ONGOING TRANSFORMATION GRI 302: 302-1: Energy consumption within the organization Section: Energy and Emissions. Page: 66 Energy 2016 OUR PERFORMANCE
ADJUSTMENT 304-2: Significant impacts of activities, products and services TO STANDARDS GRI 304: Section: Infrastructure Safety and Security. Page: 55 Biodiversity 2016 on biodiversity ABOUT THIS REPORT
OUR MATERIAL 305-1: Direct GHG emissions (scope 1) Section: Energy and Emissions. Page: 68 ISSUES
LIST OF GRI 305-2: Indirect GHG emissions resulting from energy generation (scope 2) Section: Energy and Emissions. Page: 68 CONTENTS GRI 305: GLOBAL Emissions 2016 COMPACT 305-3: Other indirect GHG emissions (scope 3) Section: Energy and Emissions. Page: 68
305-5: GHG emission reduction Section: Energy and Emissions. Page: 68
GRI 306: 306-2: Waste by type and method of disposal Section: Waste. Page: 71 Effluents and waste 2016 306-4: Transport of hazardous waste Sección: Waste. Página: 71
GRI 307: Environmental 307-1: Failure to comply with the legislation and the legal rules LAP has not been imposed any fines or sanctions in the compliance 2016 reported period.
SUSTAINABILITY AND ANNUAL REPORT 2019 94 GRI STANDARD CONTENT PAGE NUMBER OMISSION
ENVIRONMENTAL MANAGEMENT THE BEST AIRPORT IN SOUTH AMERICA Omission due to lack of 308-1: New suppliers have been assessed and selected according to information: The classification GRI 308: Section: Supplier Management. Page: 52 CEO Environmental the environmental criteria. of “new suppliers” will be MESSAGE assessment of managed since 2021. suppliers 2016 MAIN MILESTONES 308-2: Impactos negativos de la cadena de suministro y medidas tomadas. Section: Supplier Management. Page: 52 IN 2019
ONGOING TRANSPARENCY AND INTEGRITY TRANSFORMATION
OUR PERFORMANCE Section: Risk Management. Page: 27 103-1: Explanation of the material issue and its coverage Section: Regulatory Compliance. Page: 28 ADJUSTMENT TO STANDARDS
Section: Risk Management. Page: 27 ABOUT GRI 103: THIS REPORT Enfoque de 103-2: The management approach and its components Section: Regulatory Compliance. Page: 28 gestión 2016 OUR MATERIAL ISSUES
LIST OF GRI CONTENTS Section: Risk Management. Page: 27 103-3: Management approach assessment GLOBAL Section: Regulatory Compliance. Page: 28 COMPACT
205-1: Operations assessed for corruption-related risks Section: Risk Management and Compliance Systems. Page: 27
GRI 205: 205-2: Communication and education on anticorruption policies and procedures Section: Risk Management and Compliance Systems. Page: 27 Anticorrupción 2016 No confirmed cases of corruption in LAP during 205-3: Confirmed cases of corruption and measures adopted the reporting period.
SUSTAINABILITY AND ANNUAL REPORT 2019 95 GRI STANDARD CONTENT PAGE NUMBER OMISSION
INFRASTRUCTURE MANAGEMENT THE BEST AIRPORT IN SOUTH AMERICA Section: New Airport. Page: 20 103-1: Explanation of the material issue and its coverage Section: Passengers and Visitors. Página: 31 Section: New Airport CEO Section: Investments. Página: 51 Section: Passengers and MESSAGE Visitors Section: Investments MAIN MILESTONES GRI 103: Section: New Airport. Page: 20 Section: New Airport IN 2019 Management 103-2: The management approach and its components. Section: Passengers and Visitors. Página: 31 Section: Passengers and Section: Investments. Página: 51 Visitors ONGOING approach 2016 Section: Investments TRANSFORMATION Section: New Airport OUR PERFORMANCE Section: New Airport. Page: 20 Section: Passengers and 103-3: Management approach assessment Section: Passengers and Visitors. Página: 31 Visitors ADJUSTMENT Section: Investments. Página: 51 Section: Investments TO STANDARDS Section: Connectivity, ac- cessibility and multimodality
ABOUT LAP 11: LAP investments and projects contributing to the reduction THIS REPORT Indicators Section: Connectivity, accessibility and multimodality. Page: 23 LAP 2018 of congestion and the flow in the airport OUR MATERIAL ISSUES
LIST OF GRI CONTENTS OCCUPATIONAL HEALTH AND SAFETY
GLOBAL COMPACT 103-1: Explanation of the material issue and its coverage Section: Occupational Health and Safety. Page: 81 GRI 103: Management 103-2: The management approach and its components Section: Occupational Health and Safety. Page: 81 approach 2016 103-3: Management approach assessment Section: Occupational Health and Safety. Page: 81
403-1: Occupational Health and Safety Management System Section: Occupational Health and Safety. Page: 81
GRI 403: 403-4: Participation of workers, inquiries and communication Section: Occupational Health and Safety. Page: 81 Occupational about occupational health and safety health and safety 2016
403-5: Education on occupational health and safety Section: Occupational Health and Safety. Page: 81
SUSTAINABILITY AND ANNUAL REPORT 2019 96 GRI STANDARD CONTENT PAGE NUMBER OMISSION
OCCUPATIONAL HEALTH AND SAFETY THE BEST AIRPORT IN SOUTH AMERICA GRI 403: Occupational health 403-9: Injuries caused by occupational accidents Section: Occupational Health. Page: 81 CEO and safety 2016 MESSAGE
MAIN MILESTONES IN 2019 Indicators LAP 12: Total number of bird strikes by 10.000 aircraft movements Section: Infrastructure Safety and Security. Page: 55 LAP 2018 ONGOING TRANSFORMATION
OUR PERFORMANCE
ADJUSTMENT TO STANDARDS
ABOUT THIS REPORT
OUR MATERIAL ISSUES
LIST OF GRI CONTENTS
GLOBAL COMPACT
SUSTAINABILITY AND ANNUAL REPORT 2019 97 GLOBAL COMPACT
THE BEST AIRPORT We adhere to the principles of the UN Global Compact, of which we form part since December 2016. During 2019, we aligned our actions of compliance with the IN SOUTH AMERICA principles established as follows: CEO MESSAGE PRINCIPLES DESCRIPTION AND REFERENCE IN THE DOCUMENT
MAIN MILESTONES IN 2019 Principle 1 • At LAP we aim to offer our workers life quality and decent working conditions. All our workers work on a “Businesses should support and respect the protection of internationally permanent basis. ONGOING proclaimed human rights.” • We constantly conduct occupational health and safety campaigns, monitoring their impacts on an annual TRANSFORMATION basis. Human Rights OUR PERFORMANCE Principle 2 • At LAP we have a code of ethics that promotes respect for human rights and a whistleblowing system ADJUSTMENT “Businesses should make sure that they are not complicit in human rights that is available to all the workers. TO STANDARDS abuses.”
ABOUT THIS REPORT Principle 3 • Collaborators have free choice to form and become members of the Sindicato Único de Trabajadores “Businesses should uphold the freedom of association and the effective OUR MATERIAL Aeroportuarios de Lima Airport (Sutralap) (Single Union of Airport Workers of Lima Airport Partners). ISSUES recognition of the right to collective bargaining.”
LIST OF GRI CONTENTS • At LAP we reject every form of forced labor or child labor by establishing control mechanisms in our Principle 4 GLOBAL Internal Work Regulations. COMPACT “Businesses should uphold the elimination of all forms of forced and • We promote initiatives and new forms of labor that strengthen the work-family balance in our employees. compulsory labor.” Labor Rules Principle 5 • We are firmly committed against child labor as reflected in our Internal Work Regulations. “Businesses should uphold the effective abolition of child labor.”
Principle 6 • Our Internal Work Regulations contain rules regarding equal job opportunities and benefits, such as “Businesses should uphold the elimination of discrimination in respect of allocation, weekly rest, working hours, days of disease, subsidy, profit sharing, etc. employment and occupation.”
Principle 7 • We aim to face environmental and climate change challenges through an integrated environmental Environment “Businesses should support a precautionary approach to environmental management system, aligning all our projects with the prevention, identification and mitigation of challenges.” environmental impacts.
SUSTAINABILITY AND ANNUAL REPORT 2019 98 THE BEST AIRPORT IN SOUTH AMERICA
CEO MESSAGE PRINCIPLE DESCRIPTION AND REFERENCE IN THE DOCUMENT
MAIN MILESTONES IN 2019 Principle 8 • We train our collaborators in good environmental practices, educate our contractors and “Businesses should undertake initiatives to promote greater environmental concessionaires on environmental matters and encourage all companies that render services to us to ONGOING responsibility.” comply with the environmental standards. TRANSFORMATION Environment OUR PERFORMANCE Principle 9 • At LAP we aim to include in all our operations technological improvements that mitigate the ADJUSTMENT “Businesses should encourage the development and diffusion of environmental impacts (energy consumption, water consumption, gas emission). TO STANDARDS environmentally friendly technologies.”
ABOUT THIS REPORT Principle 10 • We have a code of ethics that govern all our principles of performance, preventing, among others, any “Businesses should work against corruption in all its forms, act of bribery or corruption. In addition, we have a whistleblowing system and a Risk and Compliance OUR MATERIAL Anticorruption ISSUES including extortion and bribery.” Area.
LIST OF GRI CONTENTS
GLOBAL COMPACT
SUSTAINABILITY AND ANNUAL REPORT 2019 99 More information in: Follow us in: www.lima-airport.com Aeropuerto Internacional Jorge Chávez
Aeropuerto Jorge Chávez
Lima Airport Partners SRL