2019 SUSTAINABILITY REPORT TABLE OF CONTENTS Acknowledgements 4 customers 67 CMI Capital CEO’s Letter 5 2.3. Finance Business Unit 69 How to read this report 7 We are CMI Capital Our People 3.1. Human Rights and Our Values REIR 71 1.1. CMI Capital: ¨Sustainability is 3 3.1.1. Child labor 72 our Business¨ 11 3.1.2. Foced labor 73 1 1.1.1. Our impact investments 13 3.1.3. Freedom of collective association 73 1.1.2. Our sustainable operations 17 3.1.4. Diversity and gender 73 1.1.3. Creating cross-cutting, value-sharing 3.1.4.1. Diversity and gender - energy Business Unit 73 programs 17 3.1.4.2. Diversity and gender - Real Estate 1.2. Organizational structure 18 Development Business Unit 75 1.3. REIR Corporate Values 23 3.1.4.3. Diversity and gender - Finance Business Unit 76 1.3.1. CMI listens to you 24 3.1.5 Parental leave 76 1.3.2. Corporate ethics committee 24 3.1.5.1 Parental Leave – Energy Business Unit 76 1.4. Anti-corruption and regulatory compliance 25 3.1.5.2 Parental Leave – Real Estate 1.4.1. Regulatory compliance 25 Development Business Unit 76 1.4.2. Fight against corruption 26 1.4.3. Preventing money laundering 27 3.1.5.3 Parental Leave – Finance Business Unit 76 1.4.4. Communication and training in specific 3.1.6. Associate benefits 77 areas: preventing fraud 27 3.2. General associate information 79 1.5. Economic performance 28 3.2.1. Energy Business Unit 79 1.6. Strategic partnerships 31 3.2.2. Real Estate Development Business Unit 81 1.7. Our synergies: Energy Sustainability 32 3.3. Talent development, training and evaluation 82 Our Operations, Our Capital Strategic Supply Chain 2.1. Energy Business Unit 38 4.1. Local Suppliers 86 i Hydroelectric generation 39 2 4.2. Social and Environmental Supplier ii Wind generation 41 4 Assessment 87 iii Solar generation 44 2.1.1. Our business model: marketing 48 i Energy: energy acquisition agreements Work Safety and Health -ppas- 48 5.1 Energy Business Unit 89 ii Other types of energy marketing 49 5.1.1. Health and safety management system iii ION Energy - a comprehensive service 51 5 at work 89 2.1.2. Strategic projects for sustainable 5.1.2. Worker participation, consultation and energy development 54 communication on health and safety at work 91 i Apollo Proyect 54 5.1.3. Training 91 ii Other projects 2019 57 5.1.4. Injuries due to work accident 92 2.1.3. New business development 58 5.1.5. Risks and initiatives 92 i. Development strategy 59 5.1.6. Hearing Program at Hydroelectric ii. Organic growth, M&A and new business 60 Power Plants, Energy Business Unit 96 2.2. Real Estate Development Business Unit 62 5.2 Real estate development Business Unit 97 2.2.1. Products and services 62 5.2.1. Occupational Health and Safety Committees 99 2.2.2. We provide quality and safety to our 5.2.2. Injuries, risks and hazards 99 Committed to the Development 7.2.2 Honduras 153 of Our Neighbors 7.2.2.1. Environmental Compliance 153 7.2.2.2. Emissions 154 6.1. Neighboring communities to power plants 101 7.2.2.3. Power 154 6 6.1.1. Guatemala 103 7.2.2.4 Water 155 6.1.1.1. Real estate development 103 7.2.2.5. Residues and effluents 157 6.1.1.2. Projects in communities neighboring Renace 105 7.2.2.6 Biodiversity 159 6.1.1.3. social programs 105 7.2.3. Nicaragua 161 6.1.1.4. Constant relation 108 7.2.3.1. Environmental Compliance 161 6.1.2. Honduras 109 7.2.3.2. Emissions 161 6.1.2.1 Investment in infrastructure and services 109 7.2.3.3. Power 162 Projects in surrounding communities 7.2.3.4. Water 163 – Wind Plant 109 7.2.3.5. Residues and effluents 164 6.1.2.2. Creating jobs 111 7.2.3.6. Biodiversity 165 Wind Plant 111 7.2.4. Costa Rica 166 Solar Plants 111 7.2.4.1. Environmental Compliance 166 6.1.2.3. Social programs 112 7.2.4.2. Emissions 166 Wind Plant 112 7.2.4.3. Power 167 Solar Plants 112 7.2.4.4. Water 168 6.1.2.4. Constant relations 112 7.2.4.5. Residues and effluents 171 6.1.3. Nicaragua 113 7.2.4.6. Biodiversity 173 6.1.3.1. Investment in infrastructure and services 113 7.3. Real estate development Business Unit 175 6.1.3.2. Creating jobs 113 7.3.1. Energy 175 6.1.3.3. Social programs 114 7.3.2. Construction 175 6.1.3.4. Constant relation 114 7.3.2.1. Electricity 175 6.1.4. Costa Rica 115 7.3.2.2. Fuels 175 6.1.4.1. Investment in infrastructure and services 115 7.3.3. Rent 176 6.1.4.2. Creating jobs 117 7.3.3.1. Electricity 176 6.1.4.3. Social programs 118 7.3.3.2. Fuels 176 6.1.4.4. Constant relation 119 7.3.4. Sale 177 6.2. Real estate developmento: we improve 7.3.4.1. Electricity 177 the quality of life of our neighbors 120 7.3.4.2. Water 178 6.2.1. Pradera Shopping Malls Network 121 7.3.4.3. Waste 182 6.2.2. Corporate Complexes 123 7.3.4.4. Biodiversity 183 6.2.3. Residential Complexes 124 7.4 Finance divison 186 We care for the planet About the report 7.1 Climate Change 127 8.1 Our stakeholders 189 7.2 Energy Business Unit 134 8.2 Our material issues 190 7 7.2.1 Guatemala 134 8 7.2.1.1 Environmental Compliance 134 Indexes 7.2.1.2. Emissions 135 Contents 193 7.2.1.3 Power 141 GRI 196 7.2.1.4 Water 145 9 Global Compact 207 7.2.1.5 Residues and effluents 147 SDGs 208 7.2.1.6 Biodiversity 149 Material Topics 210 ACKNOWLEDGEMENTS After a strenuous effort to have our first 2019 Sustainability Report for CMI Capital, I want to -ex press my sincere thanks for the intense work and determined support of each of the people who contributed to its development. This shows that, from each area and region, we are committed to CMI’s sustainable development and that of the countries in which we operate. • Rodolfo Echeverría • Ricardo González • Jay Gallegos • Renato Salvatores • Pablo Solórzano • Sean Porter • Aldo Vallejo • Luis Villela • Alex Rojo • Francisco Villela • Juan Pablo Caballeros • Carolina Baltodano • Sergio Alonzo • Alejandro Cancinos • María Fernanda Barrera • Ruben Contreras • Natalia Cozza • Salvador Del Valle • Carlos Santiago • Andrea Lemus • Fernando García • Christopher Albrigo • Glenda López • Renato García • Javier Fortín • Mario Moller • Carlos Mérida • Maria Gabriela Rivas • Otto Velásquez • Henry Ramírez • Maria Fernanda Molina • Glendy Farfán • Ingrid Regidor • Paola Quintero • Omar Rodríguez • Ana María Ventura • Yohainer Solano • María Fernanda Archila • Juan Gómez • Laura Madrigal • Danilo Perdomo • Luis Ramazinni • Raúl Ruíz MESSAGE FROM OUR CEO TO OUR STAKEHOLDERS: (GRI 102-14) n this occasion, because of the crisis we are going From the business side, corporate governance is aligned with through we have to reinvent ourselves, and we urge our REIR (LAUGH in spanish) values: Responsibility, Excellence, O CMI Capital’s clients, leaders and strategic partners Integrity and Respect, these are our guiding principles which to build partnerships to overcome the pandemic that has im- are present in each of the activities we perform. Innovation pacted everyone. Hence, as part of the commitment to human that is part of the company across the board, is aimed at ge- rights, caring for the planet and rejecting corruption, we sub- nerating efficiency and our commitment to provide solutions mit the first sustainability report. This document contains the that contribute to mitigate the impact of climate change in or- Global Reporting Initiative Standards (GRI) and the progress der to use cutting-edge technological tools to enhance the being made as a contribution to the Sustainable Development talent of our associates. That is why our approach is focused Goals (SDGs) and the United Nations Global Compact. on renewable energy, minimizing greenhouse gas emissions. At CMI Capital we are a company with a purpose, we promo- It is important to highlight that for CMI Capital, sustainability is te that the impact of our investments must drive sustainable an important part of the business strategy, a distinctive ele- development in the countries where we operate. All of this is ment that gives us reputation and relevance in the market, to linked to the importance of making a positive impact on the ensure long-term permanence. Because of our geographical people who are part of our environment. Through our three footprint the operations must be sustainable and contribute departments, we contribute to progress by generating elec- substantially to the development of the countries in which we tricity, improving safer homes and public spaces that allow operate. a better quality of life, and accessing funding sources that make these investments viable. (GRI 102-14) The SDGs that we consider relevant for our work are: Through our Energy Department, we invest in renewable ener- • 6 Clean water and sanitation, to promote sustainable use gy that avoids the emission of 1153000 tons of CO2 per year, of water resources. for 2019, according to the latest data, given by local teams.