While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS1. Social and Environmental Assessment and Management Systems PS2. Labor and Working Conditions. PS3. Pollution Prevention and Abatement. PS4. Community Health, Safety and Security. PS5. Land Acquisition and Involuntary Resettlement PS8. Cultural Property PS6. Biodiversity Conservation and Sustainable Natural Resource Management. This PS would not normally apply as by law the kind of developments undertaken by Artha cannot be located in protected areas or areas with sensitive natural habitats. PS7. Indigenous Peoples. Indigenous Peoples (IPs) would not be affected by Artha’s developments as Company transactions exclude IP land and are undertaken individually under a willing buyer-willing seller basis.

Key E&S issues reviewed at appraisal include: Artha's E&S project assessment processes as they apply to the land acquisition process, to ensure that all land acquisition is free and fair, avoids adverse impact on cultural heritage, and avoids or appropriately compensates any involuntary resettlement; and that construction activity within Artha's control is conducted with due regard to the environment and employee safety and working conditions. This is a Category B project according to IFC’s Environmental and Social Review Procedure as the potential impacts of the project are readily manageable with recognized mitigation measures. Furthermore, the Company consistently applies appropriate energy efficiency and resource management measures to improve the sustainability of the project.

PS1: Social and Environmental Assessment and Management Systems. Environmental and Social Assessment and Management. Artha has a thorough assessment and management system for land acquisition and site development. The Company’s management of its environmental, social and health and safety performance during design, development and construction follows stringent standards, based on the DUIS indicators which are consistent with generally accepted good practice. DUIS certification requires the following: i) physical conditions adequate for proposed development; ii) environmental protection and management; iii) adequate basic infrastructure; iv) architectural design consistent with physical environment; v) focus on low-income housing; vi) employment in the area to satisfy the needs of the users; vii) adequate access roads and public transportation; viii) availability of finance for private sector development. The social and environmental assessment of the impacts of new projects is analyzed by means of a full Environmental Impact and Risk Assessment (EIRA) as required by Mexican law. Artha complies with environmental and social requirements stemming from the EIRA, as well as other national and local permitting requirements. The company is currently integrating this process into a “Manual of Administrative, Technical and Legal Procedures”, consistent with IFC’s ESMS requirements, which includes assessment, management, certification under Mexican standards, and a continuing follow up procedures until the site is sold to industrial, commercial and/or housing developers. Organization and Training. Artha has a small but capable team led by the Operations Director, who oversees the site acquisition and development process in strict compliance with E&S good practice and the EIRA’s requirements. The team includes a project manager for each development, a land acquisition specialist, an external E&S advisor, and support staff. Following land acquisition the project manager leads the design and implementation of the infrastructure works undertaken by experienced and reputable external contractors. Artha’s project teams receive regular training on project management and other subjects related specifically to each member’s job. Community Engagement. Company representatives interact with local authorities and systematically engage with communities to ensure a free and fair land acquisition process according to good practice and the Mexican law, and that construction activity within Artha's control is conducted with due regard to the environment and employee safety and working conditions. In addition to instances involving land acquisition, the company systematically engages with local communities to ensure a good relationship from the outset. Monitoring and Reporting. Artha’s administrative and project management procedures explicitly include monitoring of the land acquisition and development process until the sale to developers is final. Assessment and monitoring reports are duly recorded and made available to Artha’s management and Board. PS2: Labor and Working Conditions. Human Resource Policy and Management. Artha has a very small number of employees including executives and administration staff, currently with an informal human resources policy, which the Company agreed to formalize. The terms and conditions of employment are compliant with Mexican and IFC requirements with regard to fair, safe and healthy working conditions. Artha outsources its design and construction services. Worker’s Organization. Because of its small size and executive workforce Artha is not the type of company to be unionized, though this would be permitted if requested by staff. Artha’s contractors and their sub-contractors do typically have unionized workforces. Non-Discrimination and Equal Opportunity. The company has an equal opportunity policy for administration staff, favoring local workers and a gender-wise balanced workforce. Contracts require complete compliance with Mexican labor law, which includes non-discrimination and equal opportunity requirements. Protecting the Work Force and OHS. Artha currently employs 12 staff, whose terms of employment are in compliance with applicable Mexican labor law and IFC requirements. The Company contracts out the master plan design and construction of infrastructure, according to contracts requiring the fulfillment of all applicable legal requirements including labor and working conditions. The company regularly monitors and records the contractors’ performance and takes action as appropriate whenever there is a digression from the conditions of the corresponding contract. Artha has agreed to include PS2 conditions in its outsourcing contracts and monitor its compliance. PS3: Pollution Prevention and Abatement. Prior to construction the Company undertakes an Environmental Impact and Risk Assessment (EIRA) for each of its developments according to Federal law. Once approved, the E&S conditions of the EIRA are included in the contract of infrastructure builders and further into the developers’ sale agreements. By the terms of the corresponding contracts, contractors must comply with all applicable legal requirements. These include control of dust and noise arising from construction activities, erosion and sediment control; as well as the safe storage, handling, application and disposal of hazardous materials used in the construction activities. Artha´s general approach is to design its developments with separate piping for sewage, which is discharged to municipal sewers, and stormwater, which is infiltrated to the aquifer in suitable infiltration ponds, as required by local authorities. For discharge into natural bodies of water, the law requires prior treatment by developments or by the municipality as appropriate. The Company adapts this approach according to site circumstances and local regulations. Artha´s procedures will be improved and certified according to Mexican standards as described under PS1 above. Artha’s procedures for site selection and acquisition were found to be appropriate as they explicitly exclude developments in protected areas and design criteria to minimize damage to natural bodies of water and natural habitats, if present. Artha’s projects are located in areas zoned appropriately for housing, industrial and/or commercial use, and follow criteria for sustainable integrated sustainable urban developments (DUIS) which consider the appropriate land use, environmental protection, adequate infrastructure, aesthetic value, social development including access to employment, transportation and affordability. The Company is aware that there are additional options to ensure the sustainability of the sites as recommended by IFC and is considering integrating best international practice in their future master plans. Whilst waste management, handling of hazardous materials, emergency response, greenhouse gas emissions and pesticide use by developers are beyond Artha’s control, the Company designs the master plans for each development so as to optimize the use of land and facilitate the use of green design and green building practices. Artha has agreed to include PS3 conditions in its outsourcing contracts and monitor its compliance. PS 4: Community Health, Safety and Security. The Company gives due consideration to potential community impacts of land acquisition, design, construction and maintenance activities, as appropriate, including: i) life and fire safety in Master Plan design, construction and maintenance; ii) impacts of construction camps, movement of vehicles to and from construction sites, operation of construction equipment, containment of dust, noise and other nuisance factors; iii) control of public access to construction sites; and iv) emergency preparedness and response. The Company outsources security services at their offices with professionally trained personnel, with little contact with the general public. Construction companies contracted by Artha have their own security personnel arrangements to be contractually required to comply with PS4. PS 5: Land Acquisition and Involuntary Resettlement Artha land acquisition procedures prevent any involuntary removal of occupants and/or users of land. The location of Artha’s developments is regulated by state and local development plans, and applicable environmental regulations. Company representatives interact with local authorities and systematically engage with communities to ensure a free and fair land acquisition process according to good practice and the Mexican law. When the land belongs to land cooperatives (ejidos) a process is triggered whereby all the ejidatarios and their dependants are identified and consulted beforehand. For common areas within the ejido all cooperative members must express their consent to sell and share the proceeds of the sale. Ejidos are closely guarded by members and squatting in cooperative land is not normally an issue. Ejidatarios Both when individual ejido plots and private lands are involved negotiation is made with the individual owners on a willing-seller-willing-buyer basis. PS8: Cultural Heritage. The Company has agreed to develop a formal chance finds protocol providing appropriate protection in the event of unexpected discovery of items of cultural heritage, and the contractual right to apply such a protocol if necessary.

Company representatives interact with local authorities and systematically engage with communities to ensure a free and fair land acquisition process according to good practice and the Mexican law. In addition to instances involving land acquisition, the company systematically engages with local communities to ensure a good relationship from the outset.

Mr. Rafael Díaz Guerrero Chief Financial Officer Artha Operadora S.A. de C.V. Paseo de Tamarindos No. 90 Torre 1, Piso 28 Bosques de las l Lomas, México DF, CP 05120