We contribute to the following SDG

Environmental Performance

At Amarilo we are aware of the environmental impacts that are generated by the operation and execution of our projects. Therefore, and according to the environmental regulations in force, we propose and carry out, with the prior approval of the environmental competent authorities, the management measures appropriate to prevent, fix, mitigate and compensate the impacts caused on the environment and the landscape. GRI 103-1, 103-2

In addition, and as part of our due diligence, we have an environmental legal matrix, which includes all the regulations in force and applicable to our activity, as well as the current state of compliance of each one of the requirements and legal obligations, and the actions needed to fulfill all the goals. GRI 103-3

On top of the foregoing, Amarilo processes and obtains beforehand, before the respective environmental authorities, all the permits for the exploitation and use of natural resources, such as forestry, occupation of riverbeds, water dumping and concession, environmental permits through which the environmental authorities, on top of authorizing the exploitation of the natural resources required for the execution of the projects, approve and define the measures of prevention, correction and mitigation that they deem necessary and they, also, establish the compensations according to the criteria set forth in the law. These are measures that, usually, consist of the planting of tree species. Indeed, during the year 2020 Amarilo planted, as compensation, 38,656 forest items. GRI 304-3

However, some environmental authorities, such as, for example, the Regional Autonomous Corporation of Atlántico – CRA (hereinafter the “CRA”), offer the possibility to make compensations other than through the planting of trees, by means of schemes such as the regularization of title, which consists of the acquisition and registration, in favor of the competent environmental authority, of private plots of land located in areas of ecologic importance. Such was the case of the compensation made in the department of Atlántico, within the framework of the forestry permits granted by the CRA for the execution of the Alameda del Río development project.

Amarilo has made forestry interventions in a total area in excess of 492.56 hectares.

The Alameda del Río development’s compensation plan included the regularization of title of a plot of land with an area of 62 hectares, located in the El Palomar Forest Reserve, area protected and declared as such by an administrative act of the Regional Autonomous Corporation of Atlántico – CRA. In addition to the transfer of title of this plot of land in favor of the environmental authority, the company has proceeded with the planting of the property with the approval of both the environmental authority and the Company’s external consultant. GRI 304-3

Now, the environmental permit or authorization that is more often required in Amarilo’s projects is the forestry permit for which a forestry inventory is made as part of the inputs of the application, in order to fully identify the species present and to define which items must be felled, relocated or conserved.

During year 2020, Corpoguavio imposed to Amarilo the Company’s only environmental sanction ever, due to an alleged impact on the creek of El Asilo caused by some hydraulic works done on that body of water. The fine was finally imposed for the sum of $512,480,696, amount that was paid within the term determined by the environmental authority in the act that enforced the sanction. GRI 307-1

In that regard, it is important to make clear that the sanction originally imposed was for the sum of $2,895,870,770. Once the legal remedies filed by Amarilo during the administrative proceedings were studied, it was proven that the scope of the alleged environmental damage caused was not the one initially determined by the Autonomous Corporation, and therefore that entity accepted our arguments and significantly reduced the sanction, as mentioned above.