IFC’s appraisal considered the environmental and social management planning process and documentation for the Project and gaps, if any, between these and IFC’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through implementation of these measures, the Project is expected to be designed and operated in accordance with Performance Standards objectives.
PS1: Assessment and Management of Environmental and Social Risks and Impacts
Environmental and Social Management System
FIBRA MQ has an E&S Policy (https://tinyurl.com/438d9fmv), a Workplace Health, Safety and Environment Policy, Environmental Guidelines, Sustainability Guidelines, and a Health and Safety (H&S) Framework, the scopes of which apply to industrial property management and/or construction. As per ESAP #1, FIBRA MQ will continue to build on its existing policies and procedures to further develop its integrated E&S management system (ESMS), commensurate to the scale and impacts of its activities, and consistent with the IFC PS and relevant World Bank Group (WBG) Environmental, Health, and Safety (EHS) Guidelines. The ESMS will apply to (but not limited to) site selection, design, construction, and operations and maintenance (O&M) of existing and new assets, including work executed by contractors.
For prospective sites and for new projects, FIBRA MQ has established a Due Diligence Procedure, which outlines the steps taken by the Company to assess potential industrial land acquisitions and undeveloped properties, specifically to identify and evaluate possible E&S risks and impacts. Due diligence assessments are supported by specialist consultants as required. FIBRA MQ also carries out climate-risk assessment in accordance with International Financial Reporting Standards aligned frameworks and will continue to maintain and update this analysis under the new Sustainability Reporting Standards (Normas de Información de Sostenibilidad - NIS) requirements applicable in Mexico. As part of ESAP #1, FIBRA MQ will enhance its E&S Due Diligence Procedure to fully align with the IFC PS.
Organizational Capacity and Competency
The Company’s E&S organization remains as described in the ESRS for Project #47718, with adequate capacity for current and future levels of activities. The Sustainability Manager is responsible for overseeing the development and maintenance of the integrated ESMS, in coordination with other relevant departments.
Emergency Response Planning
The Company’s approach to emergency preparedness and response remains as described in the ESRS for Project #47718. As part of ESAP #1 the ESMS will document that operational industrial parks under FIBRA MQ control have collaborative preparedness and response mechanisms in place between FIBRA MQ and tenants to coordinate mutual support during emergencies.
Monitoring and Review
FIBRA MQ E&S personnel, property management, and senior management visit properties and construction sites periodically to conduct inspections. Furthermore, the Company carries out an annual third-party audit of its activities, including E&S. E&S key performance indicators (KPIs) are reported to the appropriate governance committee on a quarterly basis, including injury frequency, injury severity, environmental incidents, compliance indicators, among others. As part of ESAP #1 FIBRA MQ will continue to develop procedures to monitor compliance with the whole ESMS, including KPIs and performance targets for material E&S impacts/risks, as well as an IFC PS aligned audit program to verify compliance with applicable legal requirements, IFC PS, and relevant parameters of the WBG EHS guidelines. The ESMS will also support compliance with Mexico’s NIS requirements.
PS2: Labor and Working Conditions
As per the 2024 ESG report, the Company reported 98 staff, of which 52% are female. The percentage of females in management positions is 28.6%.
Human Resources (HR) Policies and Procedures
Further to what was described in the ESRS for Project #47718, FIBRA MQ has updated its Guidelines for MPA Employee Relations to include reference to the International Labor Organization Declaration on the Fundamental Principles and Rights at Work and outlines employees’ rights and responsibilities. The Company has also issued an Employee Booklet that clearly outlines employee benefits, noting all employees are protected under Mexican Labor Law and noting additional benefits, such as leave and medical insurance.
Gender-based Violence and Harassment (GBVH)
The company’s approach to GBVH remains as described in the ESRS for Project #47718.
Workers Grievance Mechanism
FIBRAMQ allows any stakeholder to report a grievance to the Integrity Office, which is responsible for implementing the Whistleblower Program. Alternatively, staff can contact an Ethics Hotline anonymously. As part of ESAP #1, the ESMS will document the ways in which the grievance mechanism shall easily be accessible in Spanish for users in Mexico, train Company staff (and require confirmation that contractors train their staff) on its purpose, process and use, and provide links to the mechanism (QR Codes) in multiple locations at and around construction sites and operational industrial parks, including in locations allowing for private access by FIBRAMQ staff and contractors (e.g. bathrooms).
Occupational Health and Safety
The Company’s approach to emergency preparedness and response remains as described in the ESRS for Project #47718. For 2024, the lost-time injury frequency rate for contractors is 0.3 per one million hours worked, below the industry benchmarks. As part of ESAP #1, the ESMS will include OHS management, with OHS practices that comply with the IFC PS and relevant WBG EHS Guidelines, applicable to FIBRA MQ’s construction and O&M activities.
Workers Engaged by Third Parties
FIBRA MQ engages contractors for the construction and operation and maintenance of its industrial parks. Contractor selection and oversight follow specific documented procedures, including the Contractor Management and Assurance Plan (CMAP), the Contractor Safety Regulations, and the Environmental and Social Policy. These set out requirements for pre-qualification, occupational health and safety compliance, environmental protection, worker registration, impact mitigation, and appropriate community conduct. Oversight measures include pre-vetting, procedural checklists, site-visit review points, onboarding and safety training, independent third-party safety supervision, and quarterly health, safety, and environmental commissions to assess risk, monitor performance, and share best practices.
In line with ESAP?#2 and IFC PS?2 paragraphs?24–26, and the monitoring requirements of IFC PS?1 paragraphs?22–24, FIBRA?MQ will strengthen the CMAP to incorporate commercially reasonable efforts (as per IFC PS?2 Guidance Notes?86-90) through monitoring commensurate with risk to assess contractor compliance with: legal limits on work hours; timely wage payments; non-discrimination and anti-harassment measures; elimination of child and forced labor; and provision of accessible grievance mechanisms. Labor compliance requirements will be incorporated into contractual agreements with contractors, and verification will include, among other appropriate monitoring methods, worker interviews and grievance report reviews. The CMAP will also define KPIs for material aspects of contractor labor compliance under IFC PS?2 and implement corrective/preventive actions promptly to address non-conformances. These measures will cover both construction and O&M activities.
PS3: Resource Efficiency and Pollution Prevention
The Company’s approach to resource efficiency, pollution prevention, waste and hazardous materials management remains as described in the ESRS for Project #47718. FIBRA MQ’s Scope 1 and Scope 2 estimated greenhouse gas emissions in 2024 were 4,786 tons of carbon dioxide equivalent (tCO2e). Projects to improve water use efficiency in 2024 included low water landscaping and high efficiency fixtures. Energy efficiency was improved in 2024 through installation of high-efficiency equipment, improved wall/roof insulation and increased use of natural light. As part of ESAP #1, the ESMS will include an updated procedure(s) for handling and managing hazardous materials in line with the IFC PS and the WBG EHS Guidelines.
PS4: Community Health, Safety and Security
Community Health and Safety Management
In the pre-planning meeting for a construction project, FIBRA MQ and the construction contractor discuss community health and safety risks and impacts, including traffic related matters. The contractor then develops a management plan which FIBRA MQ approves. Signs and personnel are placed at the entrances and exits to control the flow of vehicles and avoid accidents. As part of ESAP #1, the ESMS will document the traffic management requirements for construction projects and within FIBRA MQ controlled areas of operational industrial parks, including the management of vehicle noise, dust, and safety according to the principles described in the General EHS Guidelines.
Life and Fire Safety
The Company’s approach to Life and Fire Safety (L&FS) is as described in the ESRS for Project #47718. During the course of Project #47718, FIBRA MQ commissioned a qualified L&FS professional to perform a risk-based evaluation of L&FS and accessibility at the industrial real estate site that contains a daycare center tenant.
Security Management
At industrial parks which are wholly owned and operated by FIBRA MQ, third party security services are contracted by FIBRA MQ. The guards control access to the park and do not carry firearms. Individual tenants may also have their own security to control access to their respective buildings. At construction sites, third party security services are contracted by the principal construction contractor. FIBRA MQ has developed a security policy aligned with PS4 requiring that security personnel are guided by the principles of proportionality and good international practice, including requirements for training on the use of force.
