Projects being sold:108
Total workers (directs
Composition of the talent
VIP Units Sold:1,170
VIS Units Sold:5,889
non–VIS Units Sold:2,052
Reused water:4,761 m3
Usable construction Waste:473,186 kg
projects in process of
receiving the Edge certificate
Total training hours per year:32,735
Excavation materials reused:491,696 m3
Reutilized debris:9,355 m3
Net equity:$795,120 millions
Social Investment:$1,502 thousand millions
Total COVID-19 aids:$266 millions
Total billions of pesos in sales:$1.79
||Companies that attract the best talent – construction sector||1|
|Companies that attract the best talent – general ranking||58|
Regional, Bogotá -Cundinamarca
|Corporate Social Responsibility Award, environmental category||1|
|Corporate Social Responsibility Award, category: Best community management program||1|
||Corporate Social Responsibility Award, category: Best community management program||1|
||Company leader in sales - construction sector||1|
||1001 companies of the year||144|
||The 100 largest companies - construction||1|
||Companies with the best reputation in Colombia||73|
|Companies with the best reputation - construction sector||1|
||Ranking of leaders with the best reputation in Colombia||44|
|Camacol, Housing Ministry
||BIM Excellence Award - category: construction, segment: housing, for the Cantabria project||1|
The progress and the results of the goals set in year 2019, which were developed during year 2020, may be read at the end of the chapters of this report. The goals set forth here for year 2020 shall start to materialize during 2021.
Amarilo is a 100 % private simplified shares’ company. The company has structured a corporate governance system as a tool for the compliance with the business strategy and also for the compliance with the standards applicable to the activities that it carries out. The corporate governance allows the company to have clear decision instances and to act in an articulate manner to comply with the strategic goals defined by the management bodies. GRI 103-1, 102-5I
Expressions of corporate governance:
According to the provisions of its corporate by-laws, Amarilo has three bodies or social instances in charge of its governance, management and. These are, in that order, the General Shareholders’ Meeting, the Board of Directors and the President’s Office. All of these bodies receive, in a periodic and consistent manner, key financial and non-financial information of the company.
Organically, Amarilo S. A. S. is organized with a CEO, who reports directly to the President of the company. The different Area Managers, organized with a defined organizational chart report to the CEO; in this way, all the workers have clarity about the lines of authority, the responsibilities allocated to their positions as well as the responsibilities of the areas or manager offices to which they belong. This structure is revised and adjusted, taking into account the internal needs and those of the environment, seeking the sustainability and the relevance of the organization in the medium and long term. GRI 103-2, 103-3, 102-33
The company’s managers meet every week in a committee that supervises the development of the business, sets forth the needs of each one of the areas in respect to the real estate projects in progress and, together with the president, make the decisions required to move forward. The committee also identifies those decision that, because of their amount or nature, require the approval of the Board of Directors or of the General Shareholders Meeting. GRI 102-18
Annually, the financial statements of the company are presented to the General Shareholders Meeting for its approval, together with the performance report of the managers of the company; the report of lawsuits and contingencies; the report of operations done among its affiliates, and the opinion of the statutory auditor about the financial statements.
The Board of Directors, on its part, receives the same information mentioned above for the General Shareholders Meeting, as it has the duty to review and approve it in the first instance. In addition, in its quarterly meetings, the Board of Directors receives updated information about the status and progress of Amarilo’s real estate projects; the financial figures associated to them, information related to the market conditions of the products offered by the company, the status of the relationships with the communities impacted and the progress of the works, among other things.
The Board of Directors also receives a quarterly report of the status of the judicial and administrative suits in which the company is the plaintiff or the defendant. Amarilo’s business plan is defined at the level of the Board of Directors and it has been planned for five years.
At the management level, the executives of Amarilo seek the improvement of the value proposition, the optimization of the returns of the products offered by the Company, the execution of the strategic programs defined by the Board of Directors and, in general, the effective growth of the performance of the company.
In 2017, with the approval of the Board of Directors as evidenced in minutes number 573 A of the 16th of M arch of that year, Amarilo adopted its Business Ethics Program (PEE by its Spanish acronym). The purpose of this program is to compile the corporate values and principles according to which it seeks to stand out as a leading company in terms of compliance and application of the regulations applicable to it, as well as to establish parameters of conduct not only for the management but also for the workers, the vendors and the contractors, for the company to have high ethical and self-regulation standards applicable in the relationships thereof with all of its stakeholders. Said program is made up by the following manuals: GRI 103-1, 103-2
General Ethics Code
Manual for the Management of Conflicts of Interest
Manual for the Prevention of Corruption and Domestic and Transnational Bribery
The Business Ethics Program is addressed to the workers of Amarilo, its managers, shareholders, vendors, clients and any other stakeholders. It is important to point out that the obligations contained in the PEE are incorporated into the employment contracts of all the workers of the company, and the violation thereof is deemed as a breach of the employment contract and the effect thereof is the imposition of all the respective disciplinary sanctions or, depending of the nature of the violation, even the termination of the employment. Regarding the suppliers and the contractors of the company, the items of the PEE that are applicable to them have been included in their service contracts, in a way that the breach thereof is a breach of contract.
With the adoption of the PEE, the company created the position of compliance officer and implemented a Compliance Committee, which meets on a quarterly basis, and the purpose of which is to handle and solve the complaints received through the ethics hotline, to oversee the PEE and the SAGRLAFT. The compliance officer files reports with the issuer’s Board of Directors regarding the operation of the SAGRLAFT .
Since the adoption of the PEE, the Company established a system for the receipt of complaints, among other things, of corruption situations or, in general, of the noncompliance with the obligations under said system. To know the channels you can refer to the “Economic Performance” chapter, ethics and transparency material subject, or you can consult the previous sustainability reports in Amarilo’s web portal.
As part of the PEE, Amarilo adopted its Manual for the Prevention of Domestic and Transnational Corruption and Bribery, in which its policy of “zero tolerance to corruption” is established. In this way, it is expressly forbidden to the directors, workers, suppliers and contractors of Amarilo, and in general to any person who has a commercial relationship with the Company, to give, offer, receive, authorize, promise, any valuables, directly or indirectly, to any Governmental officer or authority and, in general, to any counterparty, in order to ensure or obtain any personal gain or advantage, or to secure or maintain a contract or business for Amarilo.
Since 2018, and with the support of external consultants, Amarilo has worked on the construction of a general matrix of the risks of the business. For this, the processes of which each one of the areas is in charge were identified and, for each process, the risks associated to them. Together with the identification of the risks, each area defined the controls required for their mitigation, and also determined the evidences to support the implementation of the control proposed. The identified risks answer to different categories, depending on their level of impact on the normal performance of the activities.
The internal control area consolidates the information of the risks’ matrix and holds periodic follow–up meetings of all the areas of the company to evaluate the level of compliance with the controls and the effectiveness thereof.
Also, and as supplement to the adoption of the PEE, Amarilo carried out the analysis of materiality and identification of risks related to corruption, money laundering and the financing of terrorism by making a risks’ map in which all the operations and the processes of the company in which there could be exposure were examined. Based on this matrix, Amarilo updated its policies and control measures, to mitigate, in an efficient manner, each one of the risks identified. In this way, for example, regarding contractors, suppliers and clients, Amarilo adopted as its practice the verification, with no exception, of such persons in the restrictive lists.
The verification in these lists is made not only at the time of entering into the contract, but it is also updated during their contractual relationship with Amarilo. The verification of the customers in the restrictive lists is made in three moments: (i) separation, (ii) signature of the promise to buy and sell the property, and (iii) transfer of title of the respective property.
For the signature of contracts for the provision of services, works, supply and, in general, any kind of commercial relationship that involves the making of a payment by Amarilo, it is required that such contractors and suppliers are registered in a system. For this, contractors and suppliers must answer a questionnaire that asks about information related to different issues of interest, such as whether or not they manage public funds, if they are considered to be, or if they have any relationship with, a politically exposed person, or if they are subject to tax obligations abroad. They are also asked to give financial and fiscal information, among other. In addition, they must contribute information about their shareholders or ultimate beneficiaries.
The name and identification of all the suppliers and contractors, as well as of their shareholders, members or ultimate beneficiaries, be they individuals or legal entities, are verified in lists managed by any domestic or foreign authority for the control of money laundering or the financing of terrorism, such as OFAC and lists of the United Nations. Amarilo also consults databases of local authorities regarding criminal, fiscal and disciplinary background. All of Amarilo’s contracts include clauses by virtue of which it is possible for the Company to unilaterally terminate them in the event that the contractors or suppliers are included in any of these lists.
On the other hand, Amarilo’s contracts also include clauses that force their contractors and suppliers to comply with their labor obligations and they request insurance policies that guarantee compliance of the terms mentioned before. In addition, for the issuer to allow the access to the work sites to the personnel appointed by contractors and suppliers, they must present, prior to entering, all the vouchers evidencing the payment of the contributions to the integral social security system of such personnel.
The highest governance body at Amarilo is the General Shareholders’ Meeting. The highest management body is the Board of Directors, formed by five principal members and their respective personal alternates. From these, two are foreign legal entities and the remaining three are individuals with an ample experience in the direction and management of companies and projects. GRI 102-18
The Board of Directors is the body responsible for the definition of the strategic objectives of the company in environmental, social and governance terms, and it has delegated in the office of the CEO the implementation and follow-up thereof
Amarilo’s by-laws establish, in a differentiated manner, the functions and the decisions that correspond to each one of the bodies entrusted with its governance and management. Amarilo has the following direction, management and control instances:
General Shareholders Meeting: it is the highest governance body, it brings the company’s shareholders together.
Board of Directors: It is the highest management body of the Company and it is in charge of defining and making the follow–up of the general policies and the long–term strategy of the Company. Pursuant to its duties, the Board of Directors has the power to order the execution or performance of any act or contract that falls within the corporate purpose, as well as to adopt the determinations necessary for the fulfillment thereof.
Legal Representatives: The legal representation is discharged by the President and his two alternates. The president manages the commercial and financial activity, and is in charge of the general coordination and supervision of the Company.
Statutory Auditor: Amarilo has a statutory auditor appointed by the General Shareholders Meeting. Currently, the statutory auditor is the firm of Crowe Horwath. The appointment of a statutory auditor other than the accountancy firms of Deloitte Touch Tohmatsu Limited, PricewaterhouseCoopers, Ernst & Young, and KPMG requires the favorable votes of no less than 80 % of the shares subscribed.
Compliance officer: Amarilo has a Compliance officer, appointed by the Board of Directors, who is in charge of leading and managing the Company’s Business Ethics Program.
Compliance Committee: The company has a Compliance Committee formed by its top managers, the function of which is to oversee the compliance with the Business Ethics Program as well as to supervise the implementation of the actions suggested by the Committee in respect to that program.
On top of the foregoing, Amarilo has a Communities and Sustainability Office that, in its social component, has the task to guide the communities who make up the real estate projects developed by Amarilo in respect to the regulations regarding horizontal property, the strengthening of the healthy coexistence and the support of the formation of leaders as agents of change through alliances with Fundación Origen and with the Corporación Responder. It also coordinates the efforts of the corporate voluntaries to generate a positive impact on the communities. This office articulates and coordinates the report of Amarilo’s progress in environmental, social and corporate governance aspects (ASG by its Spanish acronym).
The Communities and Sustainability Office, as well as the Environmental and Public Utilities’ Legal Office, are part of the General Secretary’s Office. The Environmental and Public Utilities’ Legal Office, in general, is in charge of identifying and making the follow–up of the aspects and obligations of an environmental nature that must be considered by the company in the course of its activities. GRI 102-19
For the year 2020, the composition of the Board of Directors was as follows: Carlos Pizano, Jaime Bermúdez, Roberto Moreno, PSPIB-Star Inc. and PSPIB Michigan G.P. Inc. GRI 102-22
All the members of the Board of Directors are well-known executives, with ample experience in the management of business enterprises, the management of investments and the development of real estate projects.
The Office of the General Manager and the Board of Directors know and approve the Sustainability Report that the company writes every year and that compilates its sustainability strategy . In this way, they are aware of the objectives set in this regard every year by the Company and can follow up the compliance thereof. GRI 102-32
The Board of Directors is the corporate body in charge of setting the objectives, the business plan and the sustainability strategy of the company, in the medium and short term, in a way that ensures the stability and the perdurability of the organization. The implementation of the strategy set by the Board of Directors has been delegated in the top management of the company. GRI 102-26
Out of the three members of the Board of Directors that are natural persons, the chairman of the Board of Directors is Carlos Pizano, a non-executive, independent director. GRI 102-23
Roberto Moreno Mejía, one of the principal members of the Board of Directors, is also the President of Amarilo. In such capacity, he is in charge of the legal representation of the company, conducts the commercial and financial activities and is also in charge of the general coordination and supervision.
Amarilo, in order to look after its workers, as well as seeking the stability of its business, adopted, with the participation of the Board of Directors and through its top management, the following measures, among other:
To mitigate the risks that affect the health and the life of the human talent, their families, the suppliers and all other stakeholders, Amarilo displayed plans and actions to prevent the contagion and the propagation of the COVID-19, including:
To mitigate the possible financial risks, the company opted to stablish priorities in its expenses’ policy and to strengthen its liquidity taking advantage of the credit lines established by the National Government to support the companies in this situation.
In order to be prepared and to anticipate to the future after the COVID-19, Amarilo updated the feasibility studies of all the real estate projects, reviewing the pace of the sales and the impacts of the pandemic on the direct construction cost.
Amarilo seeks to join efforts and support common goals that contribute to the growth of the sector in order to achieve the bet results. We are part of the following synergies and memberships: GRI 102-13
Cámara Colombiana de la
Camacol Capítulo Regional:
Bogotá y Cundinamarca
Consejo Colombiano de
Asociación para el Progreso
de la Dirección (APD)
We carried out the second materiality exercise in the company in the midst of this health emergency, successfully adapting to the technological tools and with the active participation of several of our stakeholders. In this way, we have the support of a third party in order to obtain objective, non–biased results, knowing our strengths as well as the opportunities of improvement, and allowing to obtain other points of view from the different stakeholders. GRI 102-46, 102-47, 102-48, GRI-103-1
In this line of thought, the external consultant supported us in the identification of global trends in sustainability, from the sector and referent companies, as well as in leading the dialogues and the workshops held with the stakeholders. Starting from this documentary diagnosis and from the standards to identify subject matters to be consulted, we obtained 75 subthemes that were grouped in 14 subject matters and which, after being validated by the company, were summarized in 13. (See issues in the Results’ Matrix)
The following was the methodology developed to update the materiality
exercise and according to the guidelines of the GRI. GRI 102-12
The 14 subject matters identified were explained through the different subthemes, to the stakeholders in order to clarify concepts and their importance for any company, so the stakeholders are able to realize the level of importance thereof for Amarilo and from their relationships with the company. GRI 103-2
The following took part in the dialogs and in the surveys: customers, landowners, workers, managers, investors, community leaders, home owners, suppliers, Yellowstone; they gave us their different viewpoints in respect to these 14 issues. Each stakeholder had a different percentage in the final weighting of the exercise, taking into account their level of incidence and urgency regarding the decisions that the company may make. The results of this whole exercise and their validation were as follows:
Efficient management issues
GRI 103-3 The material or relevant issues from the Communities and Sustainability Office have the support of the areas that manage them throughout the year, reviewing progresses, challenges and opportunities of improvement. In year 2021 the new issues will start to be supported through the joint construction of road maps with the managers of all the areas involved.
Covers the General Shareholders
Meeting and the Board of Directors.
Covers and positively impacts
suppliers, trusts and investors.
Also, it impacts the socioeconomic
development of the country.
Covers and impact in a positive
manner the workers, contractors,
communities, organizations of
the third sector and clients.
Covers and impact the works,
the sales rooms, the corporate headquarters,
the contractors and the environmental control entities.