Quiport's Annual Report 2017

2017 RE PORT

S U S TAI N AB I L I T Y

CORPOR ACIĂ“N QUIPORT Our commitment to sustainability is manifested in each one of our processes, in all types of service associated with our line of business.

We are aligned with a corporate culture that motivates us to create value for people, framed by respect for the laws and rights that support society and nature.

We know that responsible progress is possible, which is why we use sustainability as a guiding principle of our corporate conduct and management model, as part of our DNA, as inspiration to transform the present to create a better future together with the community.

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2017 Sustainability Report

2017 Sustainability Report

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Photo: Stefano Rota

CORPORACIÓN QUIPORT S.A. (QUIPORT) clarifies that every care and effort has been made in the preparation and compilation of this Sustainability Report to present up-to-date information. However, it is possible that small errors may have been made while compiling this document.

Therefore, CORPORACIÓN QUIPORT S.A. shall not be liable to any stakeholder, public entity or third parties for any loss, damage or problems caused as a result of any inaccuracy or mistake in the information contained on the following pages.

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2017 Sustainability Report

TA B L E O F CONTENTS 8

MESSAGE F ROM THE PRESIDENT AND CEO

2017 MILESTONES

10

2017 IN NUMBERS

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O U R C O R P O R AT I O N

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O U R O P E R AT I O N

64

OUR SERVICES

86

O U R S O C I A L E N V I R O N M E N TA L C O M M I T M E N T

100

TA B L E O F C O N T E N T S G R I , U N G L O B A L C O M PA C T AND SDG

128

2017 Sustainability Report

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Photo: BICUBIK Photography

ABOUT THIS REPORT G4-5, G-28, G4-29, G4-30, G4-31, G4-32, G4-33

For a second year, Corporación Quiport presents its Sustainability Report, an account showing the organization’s performance through a triple bottom line on economic, social and environment topics.

This annual report relays the dynamism and development of the company during 2017. It has been prepared in accordance with the GRI Standards: Core option and the G4 Airport Operators Sector Disclosures supplement; taking into account the UN Sustainable Development Goals and principles of the Global Compact.

It is important to state that this presentation of results does not have external audit. However, the content has been evaluated and corroborated through several stages of review by the company, enabling it to guarantee the transparency, veracity and reliability of the information in this document.

With this new Sustainability Report, Corporación Quiport confirms its commitment with the country for responsible development that can help to improve people’s quality of life and business progress, while continuing its mission to connect Ecuador with the world.

For comments and suggestions about this report, please contact:

Alisson Larrea Corporate Affairs Manager alisson.larrea@quiport.com Jaime Pérez EHS&SR Manager jaime.perez@quiport.com Aeropuerto Internacional Mariscal Sucre Parroquia de Tababela S/N vía a Yaruquí Ed. Quito Airport Center, level 2.

Quito-Ecuador www.quiport.com

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MESSAGE F ROM THE PRESIDENT & CEO G4-1, G4-3

We began 2017 with a challenge to stabilize passenger numbers and begin to lay the foundation for recovery under the framework of high expectations on a national scale due to the change in government. In a year of transition such as this, our strategic focus is on preparing new expansion projects to be undertaken in the short term according to our Master Plan.

Part of our job regarding connectivity is centered on recovering flights and frequencies. We managed to reinstate Tame’s direct flights to New York and Lima and to increase non-stop Iberia flights between Madrid and Quito from three to six frequencies per week.

Similarly, in December we announced the start of AirEuropa’s operations between Quito and Madrid as of January 2, 2018.

The operation of Quito Airport does not just involve connectivity for people for tourism and business purposes, but also the value created from the management of export cargo. For the past few years we have been working to capitalize on the capacities of our cargo infrastructure to be able to respond to the growing volume of flower exports, a star product of Ecuador´s air freight exports.

Thanks to an important synergy between all those involved, Quito Airport has seen a positive trend of export growth; 210,223 metric tons were handled in 2017, making us the airport with the third largest

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2017 Sustainability Report

Andrew O‘Brian Presidente y Director General CORPORACIÓN QUIPORT S.A.

volume of cargo in South America, only behind Bogota and Sao Paulo.

It is clear that the growth of this activity is still far from reaching its limit, and we continue to offer operational advantages to freight carriers who have responded positively. At the start of the year, Skylease began to operate in Quito and by July, for the very first time, we welcomed regular operations by Cargolux, one of the main global cargo carriers. To bolster activities, we are working on expanding the airport´s cargo apron to be

able to accommodate up to six Code E and F aircraf at a time, the largest type of aircraft that currently operate here.

With regards to service, this year we completed a project that was central to lifting Mariscal Sucre Airport into an extraordinary category. I refer to the expansion and refurbishment of the International VIP Lounges, which after a comprehensive makeover with the help of the prestigious interior designer Adriana Hoyos, have become a benchmark for the industry.

Beyond airport operations, Quiport is committed to sharing the value we create with our various stakeholders and society as a whole. An example of this is the support given to Corporación Aeroportuaria de Cuenca (CORPAC), with whom we have signed a cooperation agreement to evaluate the operational conditions at Cuenca Airport in order to establish a road map to achieve more efficient and safer operations.

The work carried out in 2017 has allowed us to meet our strategic goals and confirm our position as a leader on a regional and global scale. For the fourth year in a row, Mariscal Sucre Airport was named South America’s Leading Airport by the World Travel Awards. And for the second year in a row, Skytrax named us as Best Regional Airport in South America and gave us a four-star rating for quality of service, with our staff winning Best Airport Staff in South America.

We look forward to 2018 with renewed enthusiasm, but also with the satisfaction of a job well done, overcoming the challenges inherent to this exciting activity. In the following pages we will share with you the details of our work and our optimism for the future.

We also continue our work with communities and the environment. In a great step for the Our Garden Project, which recruits small producers from around the airport to create a market chain for their products, this year we opened the first public store in the airport and we are hopeful that in the medium term this shared value initiative may become independent from Quiport and continue to grow.

Regarding environmental achievements, we were awarded Level 2 – Reduction certification as part of the Airport Carbon Accreditation Program, supported by Airports Council International (ACI), the International Civil Aviation Organization (ICAO) and the World Bank.

We will continue to follow the steps until we reach our goal of carbon neutrality.

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2017 Milestones

January The cargo airline Skylease begins operations at Quito airport with eight monthly frequencies.

March 26 March Tame routes to New York and Lima were reestablished with seven weekly frequencies each.

Iberia increased its service from three to six direct weekly frequencies to Madrid.

March 06

February Qatar Cargo begins regular operations in Quito with eight monthly frequencies.

Mariscal Sucre International Airport obtained third place in the Latin America and Caribbean airports category at the Airport Service Quality Awards, awarded by Airports Council International.

July 02 Cargolux began to operate at Mariscal Sucre Airport with 16 monthly frequencies.

March 14 February 03 The flower export season for Valentine’s Day broke all previous records with 13,766 tons of exports.

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2017 Sustainability Report

Skytrax named Mariscal Sucre Airport “Best Regional Airport: South America” for the second year in a row.

Additionally, it was awarded “Best Airport Staff in South America” and maintained its four-star rating for quality of service.

September 09 Mariscal Sucre International Airport was awarded “South America’s Leading Airport” for a fourth consecutive year at the World Travel Awards.

November 20

September 27 Airports Council International awarded Level 2 – Reduction certification to Quito airport as part of the Airport Carbon Accreditation Program.

Inauguration of the expanded and refurbished International VIP Lounge, increased from 750 m² to 1,135 m² and offering new standards of service and quality.

Inauguration of the Our Garden store in the Quito Airport Center. The presence of this store in the airport reinforces this shared value project sponsored by Quiport, which benefits 16 producers and their families from neighboring parishes.

December 12 Announcement that the Spanish airline AirEuropa will start operating from January 2, 2018.

December 15 The automated announcement system in Spanish, English and Mandarin comes into operation at the airport’s departure lounges.

October 20 Inauguration of the Virgen de El Quinche Chapel at Quito Airport Center.

October 26

November 27 Corporación Quiport signs a cooperation agreement with Corporación Aeroportuaria de Cuenca (Corpac) to support the development of Mariscal La Mar Airport.

December 22 The automated boarding gates come into operation at all international gates, improving efficiency and the passenger experience.

The Mayor’s Office of Quito recognized Corporación Quiport as an Honorary Ambassador of the city.

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2017 in numbers 2017 in numbers G4-9, G4-AO1, G4-AO2, G4-AO3

4.8 4.8

MM passengers. MM passengers.

143 143

daily flights average. daily flights average.

13,295 13,295

daily passengers average. daily passengers average.

52,227 52,227 aircraft movement. aircraft movement.

8,228 8,228 airport employees. airport employees.

210,223 210,223 tons of cargo handled. tons of cargo handled.

2 226,066 m 226,066 m 2

of construction. of construction.

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2017 Sustainability Report

45,403

120

companies and institutions operating at the Airport.

53,647 twitter followers.

beneficiaries of CSR programs.

1,382,533 46,900 facebook ‘likes’.

web site visits.

Quito

28

destinations from Quito.

17

passenger airlines.

21

cargo airlines.

*Include charter airlines.

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OUR C O R P O R AT I O N 2017 Sustainability Report

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2017 DE VELOPMENT PROFILE G4-9, G-12

US$ 157,160,000

US$ 18,822,000

total income

invested

ECONOMY

98%

of suppliers are local

SUPPLIERS

4.8

87.72%

million passengers per year

passenger satisfaction rating

CUSTOMERS

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45,403

corporate volunteers

people have benefitted from CSR Programs

SOCIAL RESPONSIBILIT Y

10.50%

405

reduction in the carbon footprint and ACA Program certification

tons of waste managed

ENVIRONMENT

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TA K I N G M A N A G E M E N T T O N E W H E I G H T S G4-3, G4-4, G4-5, G4-6, G4-7

Since 2006, Corporación Quiport has been responsible for connecting Quito and Ecuador with the world, through safe and efficient management that drives airport life and transforms the surrounding communities.

The concession contract signed with the Municipality of Quito allowed Quiport to make the construction, administration, operation and maintenance of the new Mariscal Sucre International Airport a reality. The airport opened its doors in 2013 to position itself as the main gateway to Ecuador for passengers and cargo.

Quiport´s comprehensive management of the airport (which will continue until 2041) has led it to be named South America’s Leading Airport for the fourth year in a row by the World Travel Awards.

VISION To be the leader in the airport industry of the country and the region, and at the same time, be an engine of social and economic development for Quito and Ecuador.

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2017 Sustainability Report

MISSION To provide efficient, safe, quality airport services that provide the best experience to users, thanks to its employees who contribute to achieving economic, social and environmental sustainability.

S T R AT E G I C G O A L S

F I N A N C I A L S U S TA I N A B I L I T Y Maintain healthy economic performance achieving annual objectives, complying with the concession contract and fulfilling our obligations with the Municipality, our shareholders and lenders.

S A F E A N D E F F I C I E N T O P E R AT I O N S Successfully manage the airport service and operations with safe and secure procedures, appropriate infrastructure, efficient processes and ensure compliance with ICAO international standards and national regulations.

CUSTOMER SERVICE EXCELLENCE Provide a positive experience to our passengers, reinforce relationships with our stakeholders and positively positioning Quiport and the Quito Airport brand.

EFFICIENT AND COMMIT TED EMPLOYEES Develop a positive work environment by implementing activities that motivate employees, contribute to their personal and professional growth and encourage them to improve their productivity, adding value to the organization.

C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y Perform our airport activities under a sustainable framework that respects and protects the environment and contributes to the socio-economic development of neighboring communities.

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AN ETHICAL AND RESPONSIBLE BUSINESS G4-11, G4-56, G4-HR3, G4-HR8, G4-SO4

CorporaciĂłn Quiport operates on the basis of corporate policies and values that determine the conduct and decisionmaking of its workers in its different areas of business. This also extends to the supply chain, especially with regards to human rights, employment rights and nature.

In addition, the organization has a complaints system through boxes, emails, webpage, social media and other channels.

C O R P O R AT E VA L U E S

MANAGEMENT TOOLS

Integrity

Sustainability Policy

Respect

Human Rights Policy

Commitment

Financial Policy

Team Work

Procurement Policy

Excellence

CODE OF ETHICS In 2017, the company began creating a conduct manual to guarantee respect for human rights, fight corruption and encourage ethical practices in the market, among others. It is expected to be approved and applied next year.

RESPECT OF HUMAN RIGHTS Quiport supports free association and collective bargaining by its workers, as well as gender equality and fairness. It guarantees the security of its customers and users’ information. It rejects all forms of discrimination, mistreatment of indigenous peoples, child labor and forced labor. This is extended to its suppliers and compliance is regularly evaluated.

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M A N A G E M E N T I N D I C AT O R S G4-EN29, G4-EN34, G4-HR1, G4-HR12, G4-SO4, G4-SO7, G4-SO8, G4-SO11, G4-LA16, G4-PR8

100%

of contracts signed with third parties contain human rights and environmental protection clauses.

100%

of staff know the company’s policies and procedures.de demandas por competencia desleal.

0%

claims for unfair competition

0%

human rights-based claims.

0%

environmental claims and/or penalties.

0%

claims and/or penalties for breach of privacy or data leaks.

0%

claims and/or penalties in connection with employment practices.

0%

claims and/or penalties for social impacts.

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C O R P O R AT E G O V E R N A N C E G4-7, G4-34, G4-LA12.

Corporación Quiport has a robust governance structure that regulates the relationships between government bodies and administrators of the organization. It is based on a combination of practices, customs, mechanisms and values to establish general objectives and provide basic tools to this end.

SHAREHOLDERS

The CCR Group is one of the largest infrastructure concession companies in Latin America. It is responsible for managing 3,259 km of roads in Brazil, operating Línea 4-Amarilla of the São Paulo subway system, the Salvador and Lauro de Freitas subway system and ferry transportation in Río de Janeiro. It also has investments in international airports (Belo Horizonte, Quito, San José and Curaçao), as well as other service companies.

Renato Vale President

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Ricardo Bisordi

Eduardo Camargo

President - CCR Airports

Latin America and the Caribbean Director

2017 Sustainability Report

SHAREHOLDERS

Odinsa, a subsidiary of Grupo Argos, is engaged in structuring, promoting, managing and developing infrastructure, road and airport projects. The quality of its people and teams, its responsible practices, high standards of corporate governance and its commitment to sustainability gives it a competitive advantage allowing it to position itself as one of the most important companies in the infrastructure sector, both in Colombia and Latin America.

Pablo Arroyave

Mauricio Ossa President

Vice President of Finance

Gustavo Ordoñez Vice President of Road Concessions

Eduardo Bettín Vice President of Legal and Institutional Affairs

Andrés Ortega Vice President of Airport Concessions

Carlos Alzate Vice President of Human and Administrative Management

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SHAREHOLDERS

HAS Development Corporation (HASDC) is an airport development and management company that has been actively involved in multiple airport privatizations, concessions and the like (in the aggregate, public-private partnerships, PPP’s), primarily in Central and South America. Over the years, in addition to its involvement in airport PPP’s, it has been involved in airport operations training, consulting, and related services to airports around the world. HASDC is affiliated of Houston Airport System.

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Ramón Miró

Hank Coleman

President and Finance Manager

General Consultant

2017 Sustainability Report

BOARD OF DIR EC TOR S G4-LA12, G4-34

The Board is composed of the CEO and CFO of Corporación Quiport, who act as chairman and secretary of the Board, respectively. The other members are delegates of the shareholders: Companhia de Concessões Rodoviárias (CCR) of Brasil; Odinsa of Colombia; and HAS Development Corporation of the U.S.A. The Board is responsible for strategic decision-making for the continuity of operations.

This year, the Board of Directors has dealt with strategic topics for the company and ensured compliance with policies, goals and objectives. The company has the following committees: FINANCE COMMIT TEE The Finance Committee is composed of representatives of Presidency, Finance, Business Development and Engineering.

BUSINESS DE VELOPMENT COMMIT TEE The Business Development Committee is composed of representatives from this department as well as Operations, Engineering and Infrastructure, Communications and Marketing and Legal.

INFRASTRUCTURE AND ENGINEERING COMMIT TEE The Infrastructure and Engineering Committee is composed of representatives of the department and, depending on the project, representatives from the Concession Management and Legal departments, Operations, Business Development and technicians representing the shareholders.

PURCHASES AND ACQUISITIONS COMMIT TEE This committee is composed of these permanent members: Legal, Finance, Acquisitions and a representative of the requesting department.

If the bidding is for more than US$500,000, there will also be a direct representative of the: • CEO/President • Business Development Director • Finance Director

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SENIOR M ANAGEMENT COMMIT TEE G4-15, G4-16, G4-EC6, G4-34, G4-LA12

Corporación Quiport’s management is composed of Andrew O’Brian, President and CEO; Carlos Criado, Business Development Director; Francis Segovia, CFO; and Leonardo Maia, Engineering and Infrastructure Director. Together they ensure compliance with the global operations strategy of Mariscal Sucre International Airport.

25% OF SE NIOR M ANAG E M E NT CO M E F R O M Q UITO, CONSI DE R E D AS LO C AL CO M M UNIT Y F O R TH E P U R P O S E S OF TH I S R E P O RT.

K E Y C O L L A B O R AT O R

Dr. Sandra Reed Serrano The legal structure on which the entire Quito International Airport Project is based requires legal advice with a broad command of national and international laws including corporate law, contracts and foreign investment. Since 2006, Corporación Quiport has entrusted its legal matters to Dr. Sandra Reed Serrano, who has consistently been a key player in obtaining solutions that benefit all parties involved while always respecting the legal framework in effect.

Dr. Reed is a partner at Pérez Bustamante & Ponce, a prestigious law firm with an international reputation. She is also a member of the Inter-American Lawyers Federation (FIA in Spanish), an international independent forum that exchanges professional information and opinions on the rule of law in Western democratic institutions.

I N T E R N AT I O N A L S T R AT E G I C P O S I T I O N S • Andrew O’Brian President and CEO of Quiport, is ipresently the First Vice President of the Airports Council International (ACI) Latin America / Caribbean – Regional Board and Vice-Chair of the International Association of Airport Professionals (IAAE / AAAE). He also sits on the ACI World Governing Board.

• Jaime Pérez Environment, Health, Safety and Social Responsibility Manager, is Chair of the ACI-LAC Environment Committee.

• Allan Padilla Operations Director, is Chair of the ACI-LAC Safety Committee.

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2017 Sustainability Report

IN ECUADOR , QUIPORT IS A MEMBE R OF: G4-16

• Ecuadorian Consortium for Social Responsibility • Hotel Association of Quito • Quito Chamber of Commerce • Ecuadorian-Canadian Chamber of Commerce • Ecuadorian-American Chamber of Commerce • Ecuadorian-Brazilian Chamber of Commerce

H U M A N TA L E N T G4-10, G4-LA1, G4-LA16

The future of CorporaciĂłn Quiport is in the hands of its professionals, who represent the heart of operations at the airport.

Its corporate strategy aims to retain efficient and committed human talent to reach the organization’s goals. This goes hand in hand with constant professional and personal development of its employees.

In 2017, the company recorded 108 people on its payroll who work together to make sure that each of their actions share value with society.

During this period there was an increase in positions held by women, up by 1.20% from 44.21% the previous year.

Strict compliance with legal regulations has meant that the company has not had any penalties, fines or claims regarding employment.

108

54.63%

employees

of employees is male

45.37% of employees is female

4%

of employees has special needs

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2017 Sustainability Report

9.26% turnover rate

WORK TEAMS E N V I R O N M E N T , I N D U S T R I A L S A F E T Y, O C C U P A T I O N A L H E A LT H A N D S O C I A L R E S P O N S I B I L I T Y

Jorge Moposita, Alberto Díaz, Rosario Calderón, Jaime Pérez, Alex Proaño and Leonel Valverde.

Absent: Fernando Cáceres.

CONCESSION M ANAGEMENT

Diego Cuesta and Pablo Darquea.

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2017 Sustainability Report

BUSINESS DE VELOPMENT

First row: Katherine Gallegos, Marisol Izquierdo, Carlos Criado (Business Development Director) and Estefanía Pérez.

Second row: Alex Moreno, Steve Enríquez, Gustavo Aguilar, Francisco Castro and David Díaz.

Absent: Fausto Naranjo.

C O M M U N I C AT I O N S & M A R K E T I N G

Jessica Mata, Fabián Riofrío, Alisson Larrea, Luis Galárraga, Krupskaya Coello and Cristhian Andrade.

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FINANCE AND ACCOUNTING

First row: Ligia Aldaz, Ana Cristina Reinoso, Edith Cachago, Silvana Navas, Francis Segovia (Directora Financiera), Jeanine Mendoza, Cristina Swing, Pamela Naranjo and Gabriela Aráuz.

Second row: Geovanna Arias, Adrián Enríquez, Iván Rodríguez, Juan Carlos Zurita, Jaime Velasco, Jorge Carlosama, Willman Colcha, José Luis Quezada and María José Padilla.

INFRASTRUCTURE AND ENGINEERING

First row: Cristina García, Carla Dávila, Karen Flores, Leonardo Maia (Director de Infraestructura e Ingeniería), Patricia Silva and Cristina Merchán.

Seconf row: Diego Álvarez, Daniel León, Gen Cevallos, Diego Pozo y Edwin Cevallos.

Absent: Francisco Rendón and Francisco Vargas.

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2017 Sustainability Report

LEGAL

Juan Fernando Carrión, Adriana Pimentel, Fernanda Pareja and Andrés Abad.

TRANSPORT AND MESSENGERS

Darío De la Torre, Edwin Andrade, Juan Pozo, Wilmer Chila and Marco Fiallos.

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VIP SERVICES

First row: Gissela Jaramillo, Karen Cabrera, Andrea Araujo, Kathy López, Karina Jijón, Paola Guayasamín and Nicole Novasco.

Second row: Felipe Cisneros, Josué Suárez, Pablo Ortiz, Roy Kurze and Pedro Arias.

First row: Andrea Anda, Karina Vega, Stephanie Oleas, Jessica Valencia, Sandra Calderón, Gabriela Haro and Evelyn Torres.

Seconf row: Alberto Benavides, Xavier Pineda, Bryan Flores, David Maza, Geovanny Vivanco and Juan José Altamirano.

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2017 Sustainability Report

C E R T I F I C AT I O N A N D S A F E T Y

Marco Moncayo, Jorge Bourgeat, Roberto Cortés, César Arteaga, Nelson Cárdenas and Joseph Bourgeat.

Absent: Carlos Moreno.

H U M A N TA L E N T A N D A D M I N I S T R AT I O N

First row: Alcira Enríquez, Imelda Sánchez, Adriana Guamaní and Lupe Méndez.

Second row: María del Carmen Torres, Fernando Jaramillo, Patricia Laguna and Doris Vasco.

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C O N T R I B U T I N G TO P R O F E S S I O N A L A N D P E R SO N A L D E V E LOPM E N T G4-11, G4-LA10, G4-LA11, G4-DMA-c

TRAINING AND DE VELOPMENT More than 2,860 hours of training was given to staff about strategic airport management, management skills, technical updates, data analysis tools, legal regulations, compliance with labor and occupational safety regulations.

In 2017, the 12-month Bullet Proof Manager program began which aims to enhance the skills of the leaders of each department. Twenty-two leaders of the company took part in this initiative.

P E R F O R M A N C E E VA L UAT I O N All employees were evaluated and had feedback meetings with their respective supervisors. There was a 360 degree feedback process for positions that are in charge of staff and 180 degree feedback for those that are not.

WORK ENVIRONMENT Corporación Quiport ended 2017 with a 90% satisfaction rating of the work environment. This is a result of the company’s sustained commitment to leadership, communication and team work to the benefit of its workers.

E Q U A L I T Y, F R E E D O M A N D D I V E R S I T Y

The company gives equal development opportunities to all its employees regardless of gender, ethnicity, sexual orientation, nationality or religion.

Although there is freedom of association at the company, its employees are not part of collective bargaining agreements. The company is also committed to the eradication of child labor in all its forms.

O R G A N I Z AT I O N A L M O D E L Updates were made to the duties of 100% of positions at Corporación Quiport; and this was the basis to evaluate performances.

BENEFITS G4-LA2

Corporación Quiport offers its employees, in addition to what is stipulated by law, several benefits with the objective of maintaining personal and family well-being.

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2017 Sustainability Report

A H I G H - P E R F O R M A N C E C U LT U R E

For Corporación Quiport, its successful management is based on its people: trained professionals who have made Mariscal Sucre Airport the best airport in the region.

In 2017 the company focused on reinforcing the value of excellence in its staff, achieved by each person giving their best in every action and decision, and valuing team work.

“Achieving Excellence Together” became the motto of a culture geared towards high performance; reflecting the DNA of an organization that is shown through its solid, ethical and efficient conduct.

During this period, 100% of internal communications were aimed at reinforcing this campaign.

B A L A N C E B E T W E E N W O R K A N D F A M I LY L I F E

In August, the company held its “Yo también soy Quiport” (I am also Quiport) outing for the children of employees, so they could see their parent’s place of work and the importance of their duties at the airport.

Approximately 65 children and teenagers from 0 to 18 years of age took part in the visit to share moments of entertainment and learning, with fun spaces, recreational activities, a magic show and a tour of the airport´s facilities.

This way, the company brought together the families of its employees in an event aimed at strengthening the bond and pride of its “little ambassadors”.

O C C U P A T I O N A L H E A L T H A N D S A F E T Y (O H S ) G4DMA-b, G4-LA5, G4-LA7

Corporación Quiport works to provide a secure working environment for all its workers to safeguard their well-being and safety.

During the year, the company acted to prevent and minimize risks, incidents, accidents and occupational illness.

• Occupational examinations for 100% of personnel.

• More than 309 hours of induction and training were given throughout the year.

• Employees received talks on occupational violence, sex education and office risk factors.

• Provision of ergonomic chairs to 100% of personnel.

• 100% of personnel are represented at the OHS Parity Committee.

• 0% of employees are involved in activities with a high incidence or risk of specific illnesses.

AC T I V E PAU S E S In 2017, the company rolled out its “Take an Active Pause” campaign which urged employees to take a break from their activities to refresh body and mind before resuming their work.

During this period, tips and reminders were automatically programmed on the computers of all administrative personnel at Quiport, at strategic times in the morning and afternoon. Employees were also invited to enjoy healthy snacks as part of the Nuestra Huerta Project (a shared-value project of Quiport).

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G E N E R A L E M P L O Y M E N T I N D I C AT O R S

E M P L O Y E E T U R N O V E R R AT E G4-LA1

AGE AND GENDER

2017

Less than 30

0.90

31 - 40

0.10

41 - 50

0

51 - 60

0

More than 61

0

Women

0.50

Men

0.50

E M P L O Y E E H I R I N G R AT E G4-LA1

40

AGE AND GENDER

2017

Less than 30

0.70

31 - 40

0.30

41 - 50

0

51 - 60

0

More than 61

0

Women

0.40

Men

0.60

2017 Sustainability Report

R E T U R N T O W O R K A F T E R M AT E R N I T Y O R PAT E R N I T Y L E AV E G4-LA3

2017

UNIT

MEN

WOMEN

Employees entitled to maternity or paternity leave

Persons

3

4

Employees who took maternity or paternity leave

Persons

3

4

Employees who returned to work after taking maternity and paternity leave

Persons

3

3

Employees remaining at the company 12 months after ending maternity or paternity leave

Persons

3

4

Rate of return to work

%

100

75*

Retention Rate

%

100

100

*By the end of 2017, the employee continued on maternity leave.

2017 Sustainability Report

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AV E R A G E H O U R S O F T R A I N I N G P E R Y E A R P E R E M P L O Y E E G4-LA9

42

G E N D E R A N D E M P L O Y M E N T C AT E G O R Y

2017

Total hours of training

2 860

Average hours of training per employee

26.48

Number of hours of training by gender (women)

1 011

Number of hours of training by gender (men)

1 849

Average hours of training by gender (women)

20.63

Average hours of training by gender (men)

31.34

Number of hours of training employment category 1 – CEO

0

Average hours of training employment category 1

0

Number of hours of training employment category 2 – Directors

390

Average hours of training employment category 2

390

Number of hours of training employment category 3 – Managers

428

Average hours of training employment category 3

42.8

Number of hours of training employment category 4 – Heads

940

Average hours of training employment category 4

85.45

Number of hours of training employment category 5 – Other positions

1 427.50

Average hours of training employment category 5

16.99

Number of employees who have received training during the year

41

Percentage of employees who have received training during the year

38%

2017 Sustainability Report

P E R C E N TA G E O F E M P L O Y E E S W H O S E P E R F O R M A N C E A N D D E V E L O P M E N T I S R E G U L A R LY E V A L U A T E D G4-LA11

G E N D E R A N D E M P L O Y M E N T C AT E G O R Y

2017

Total number of employees in employment category 1 – CEO

1

Number of performance evaluations in employment category 1

1

Percentage of evaluated employees in employment category 1

100%

Total number of employees in employment category 2 - Directors

3

Number of performance evaluations un employment category 2

3

Percentage of evaluated employees in employment category 2

100%

Total number of employees in employment category 3 - Managers

10

Number of performance evaluations in employment category 3

10

Percentage of evaluated employees in employment category 3

100%

Total number of employees in employment category 4 - Heads

11

Number of performance evaluations in employment category 4

11

Percentage of evaluated employees in employment category 4

100%

Total number of employees in employment category 5 – Other positions

86

Number of performance evaluations in employment category 5

86

Percentage of evaluated employees in employment category 5

100%

Total number of women in the organization

49

Number of women evaluated

47

Percentage of women evaluated

96%

Total number of men in the organization

59

Number of men evaluated

59

Percentage of men evaluated

100%

2017 Sustainability Report

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C O R P O R AT E A F F A I R S I N D U S T R Y PA R T I C I PAT I O N

H I G H R A N K I N G I C A O D E L E G AT I O N V I S I T E D Q U I T O A I R P O R T Mariscal Sucre International Airport was visited by the most senior level of the ICAO Council at the invitation of the Directorate General of Civil Aviation together with Airports Council International as part of the authority’s official visit to three cities in Ecuador in March.

The ICAO Council is the governing body of the International Civil Aviation Organization, a UN specialized agency in civil aviation composed of 36 Member States who legislate, regulate and audit international civil aviation. During this official visit, the plenary meeting of the ICAO Council in Guayaquil discussed “Aviation and the Environment”.

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During a tour of Quito Airport’s facilities, the ICAO senior executives could appreciate the operational advantages it offers and the quality of infrastructure.

After the visit, the President of the Council, Dr. Olumuyiwa Benard Aliu, stated that “Quiport sees its role in Ecuador not just as a commercial operator but as part of an international system. It is gratifying to see that the collaboration we are promoting at a global level is happening also at the national level here”.

The visit was a result of the growing importance of Quito and its airport in the air transport industry, since all the work undertaken around Quito Airport is framed by the regulations and provisions issued by ICAO.

AIRPORT COUNCIL I N T E R N AT I O N A L – L AT I N A M E R I C A A N D T H E C A R I B B E A N (AC I - L AC) A N N U A L A S S E M B LY With the valuable participation of Corporación Quiport, the 26th ACI-LAC Annual Assembly was held on November 9, 2017 in San José, Costa Rica. Quiport’s delegation included Andrew O’Brian, President and CEO; Carlos Criado, Commercial Director; Allan Padilla, Operations Director and Jaime Pérez, Social Responsibility Manager.

Matters of vital importance to the future of the airport industry were discussed at the Assembly, such as the contribution of airports to tourism development, airport infrastructure challenges faced by the region, airport security and technological innovation as a solution to improve the passenger experience. Also discussed were matters relating to the impact on economic development, social responsibility and care of the environment.

At the same time as the Assembly, meetings of the ACI-LAC committees were held. Of particular interest was the Safety Committee, chaired by Allan Padilla; Environment Committee, chaired by Jaime Pérez; and the Economic Committee of which Carlos Criado is a member.

2 7 TH ACI ANNUAL GENE R AL A S S E M B LY Corporación Quiport was represented by its President and CEO, Andrew O’Brian at the 27th ACI Annual General Assembly in Mauritius, Africa. As Vice President of the Board of ACI Latin America and Caribbean (ACI-LAC), Andrew attended the CEOs Forum for executives of the global airport industry.

This assembly was focused on pressing matters affecting the fast evolution of the aviation industry, under the theme “Bold leadership in times of change”.

A series of panels and committees were also held which addressed important questions for the airport industry. Allan Padilla, Quiama Operations Director, represented Quito Airport at the Session: Learning from the world`s best airports in customer service. Jaime Pérez, EHS & SR Manager at Corporación Quiport, took part in the World Environment Committee as a member of this body, in representation of ACI-LAC. At this event, ACI officially delivered certification for the ACA Reduction Stage to Quito Airport, a global initiative aimed at reducing carbon emissions in the airport industry on a global scale.

ACI WORLD MEETING As a new member, Quiport attended the ACI World Governing Board for the first time. The meeting, held in Doha, Qatar, gathered together the highest authorities from airports around the world such as Sydney, London, Munich, Los Angeles, New Delhi, Moscow and Toronto, among others.

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45

Andrew O’Brian represented Quito Airport and Latin America and the Caribbean at this intensive meeting to discuss airport ownership models, safety, terrorism, people trafficking, quality of airport services and other matters.

Q U I P O R T AT T E N D E D R O U T E S WORLD 2017 The route development team of Corporación Quiport, led by Carlos Criado, Business Development Director, took part in Routes World 2017 which was held in Barcelona, Spain. Throughout this event, meetings were held with 16 airlines seeking to offer greater connectivity with Quito Airport.

Routes is the main event that brings together airlines and airports to develop new routes and airport services.

This year´s event was attended by 3,000 delegates, 300 airlines and 700 airports from 110 countries.

Business cases were presented to important airlines such as the UK’s British Airways and Germany´s Condor.

As on past occasions, Quiport’s team was accompanied

by Quito Turismo’s General Manager Verónica Sevilla, who was given an opportunity to promote the city’s tourist attractions. Joint work with authorities is key to successful negotiations.

QUITO WA S NAME D A S HOS T OF T H E M O S T I M P O R TA N T E V E N T O N ROUTE DE VELOPMENT On February 16, Routes Americas announced that the city of Quito and Corporación Quiport would host Routes Americas 2018, the only event that gathers airports and airlines from the region seeking to develop new alternatives for connectivity.

Its candidacy was jointly submitted by Quito Turismo, representing the city, and Corporación Quiport as the administrator of Quito Airport. Both entities, with the support of the Productive Development and Competitiveness Department of the Municipality, are working hard to ensure that Routes Americas 2018 in Quito will be a memorable experience for all involved.

In communication issued by the organizers, Steven Small, brand director of Routes, stated that “Ecuador is an exciting ‘bucket list’ destination and its capital is rich in history and culture. Quito will make an excellent host city for Routes Americas”.

Routes Americas will provide Quito with the opportunity to make the case for more new air services. The 2017 event in Las Vegas was attended by 750 delegates from 85 airlines, 225 airports and 40 tourism authorities - Quito can expect a similar gathering of influential people in 2018.

Photo: Quito Turismo

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2017 Sustainability Report

Photo: Stefano Rota

2017 CONFERENCES SHARING EXPERIENCES In addition to guaranteeing safe and efficient operations, Corporación Quiport´s management of Mariscal Sucre Airport has ensured its inclusion on the list of leading airports in the region. Through active participation in diverse forums and meetings of the aviation and tourism sectors, Quiport shares with other airports and gains from best industry practices.

EC UADOR FOR UM – YOUR B E S T D E S T I N AT I O N Organized by the Ecuadorian-Canadian Chamber of Commerce with the support of the Ministry of Tourism and the Productive Development and Competitiveness Department - Municipality of Quito.

Quito, Ecuador - October 18

GENDE R EQUALIT Y FORUM Quiport participated in the Forum “Gender Equality, good business for organizations”.

Quito, Ecuador – June 13.

XII AC I A S IA-PAC IFIC R E G IONAL A S S E M B LY International forum organized by ACI-Asia where Quiport took part together with other airports from across the globe.

Doha, Qatar – April 9.

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2017 Sustainability Report

C O R P O R AT E I N F O R M AT I O N

QUIP OR T SHOWE D SOLIDAR IT Y WITH THE FAMILIES OF FIRE FIGHTERS WHO DIED IN THE 2015 PUEMBO FIRE On September 28 at a press conference held by the Municipality of Quito, housing was officially handed over to the families of fire fighters who died in September 2015 while fighting a forest fire in Puembo.

In an example of public-private collaboration, Corporación Quiport donated the cost of one of the houses as thanks to the brave heroes who risk their lives to protect the city and its inhabitants.

Diego Cuesta, Senior Concession and Strategic Projects Manager, attended on behalf of Andrew O’Brian, President and CEO of Quiport.

QUITO AND CUENCA AIRPORTS S I G N E D A C O O P E R AT I O N A G R E E M E N T F O R O P E R AT I O N S MANAGEMENT With the presence of the Mayor of Cuenca, Marcelo Cabrera, as a witness of honor, and the Vice Minister of Transport Management, Boris Palacios; Corporación Quiport and Corporación Aeroportuaria de Cuenca (Corpac) signed a cooperation agreement to share information, knowledge and experiences of airport management which aims to encourage mutual enrichment and the development of both airports.

The cooperation agreement covers practically all aspects of airport management and includes issues such as safety, operations, maintenance, commercial development, route development, infrastructure, information systems, customer service management, environment and energy efficiency.

FOURTH ANNIVERSARY On February 20, 2017, Mariscal Sucre International Airport celebrated its fourth anniversary of operations.

The airport has become one of the best in the region for infrastructure, services and safety, backed by our passengers and the aviation industry through the main organizations that measure and evaluate the performance of airports in the region and the world, such as ACI, Skytrax and the World Travel Awards.

The growth in connectivity has been impressive, with five new airlines and nine new direct routes, reaching 27 national and international destinations operated by 14 airlines. Our commitment is holistic. To our work in infrastructure, safety and route development is added our commitment to the community and the environment. We recently completed works to replace conventional lighting with LED lights at the passenger aircraft, general aviation and cargo aprons, and the passenger terminal building.

More than 20 million passengers have passed through Quito Airport, enjoying our assistance, services and constant commitment.

N E W C O R P O R AT E W E B PA G E The company’s webpage was renewed in 2017, www. quiport.com. The new design is devised to facilitate navigation, with a modern image and information on the company, social responsibility, awards and links to the latest news about Quiport and Quito Airport.

This experience will be shared with Corporación Aeroportuaria de Cuenca so that the Mariscal La Mar International Airport can consolidate its services with a view to the tourism and business potential of Cuenca.

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49

A C U LT U R E O F D I A L O G U E G4-24, G4-25, G4-26, G4-27

For Corporación Quiport, dialogue is fundamental to the performance of its operations, on the path to continuous improvement.

The company has identified its stakeholders with whom it maintains regular contact due to the nature of its business.

To do this, it manages permanent channels and mechanisms for information, dialogue and participation.

Throughout 2017, Quiport held 106 meetings with 4,191 participants from the public and private sector, as well as from the airport and the organization itself to expound its main expectations and concerns.

Through active listening, the company has managed to identify the challenges and opportunities of communication to enhance its management.

A S T R O N G E R D I G I TA L P R E S E N C E Dialogue has also moved to platforms that facilitate closer and more horizontal interactions with stakeholders through different channels. Quiport´s work to constantly inform and interact with its users, customers and the general public is made easier with its robust presence on social networks and digital channels.

W E B PAG E

TWITTER

W W W. AE ROP UE R TOQUITO. AE RO

@AE ROP UE RTOUIO

1,382,533

53,647

visits per year

Followers

FACE BOOK

I N S TA G R A M

AEROPUERTO INTERNACIONAL DE QUITO

@AE ROP UE RTOUIO

46,900 ‘Likes’

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2017 Sustainability Report

2,300 Followers

STAKEHOLDERS

CHANNELS OF COMMUNICATION

Senior Management Authorities Employees

Corporate Documents

Commercial Operators Suppliers Users Allies Academy Decentralized Autonomous Governments

Meetings Inspections Social Networks Webpage Emails Letters Telephone Calls Corporate Publications

Community

2017 Sustainability Report

51

M AT E R I A L I T Y G4-18, G4-19, G4-20, G4-21, G-22, G4-23

Based on sustained dialogue, CorporaciĂłn Quiport consulted and analyzed topics of particular relevance to its stakeholders. In total, six key material topics were identified: M AT E R I A L TOPIC

A B B R E V I AT I O N

INTERNAL R E L E VA N C E

EXTERNAL R E L E VA N C E

LIMIT OF COVERAGE

Social Innovation

IS

Medium

High

Internal / External

Human Talent

BPL

High

Medium

Internal

Financial Performance

DF

High

Medium

Internal

Customer Experience

EC

High

High

Internal / External

Environmental Strategy

EA

High

Low

Internal / External

Operations Management

GO

High

High

Internal / External

These topics are very important to the sustainability of operations at Mariscal Sucre Airport, and it has therefore become the company´s policy to include these in its list of priorities.

In the preparation of this report there were no remarks regarding the previous year nor were there significant changes to coverage.

P R O C E S S F O R D E F I N I N G M AT E R I A L T O P I C S A N D R E P O R T I N G G U I DA N C E

Identification

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2017 Sustainability Report

Prioritization

Validation

Review

SOCIET Y

Carbon Footprint

Generation of employment

Compliance with laws and regulations

Impact Mitigation

Shared value projects

Fair distribution

Compliance with laws and regulations

Training and education

Social investment

EXTE RNAL RE LE VANCE

SUSTAINABILIT Y CONTEXT MATERIALIT Y MATRIX SUSTAINABILIT Y PLAN

E NVI R ONME NT

ECONOMY

CE ES

HT

OM FP

SI

INTE RNAL RE LE VANCE

Financial Sustainability Safe, secure and efficient operations Excellence in service Engaged employees Supply chain Social responsability Environmental management

2017 Sustainability Report

53

VA L U E P R O P O S I T I O N G4-16

In 2017, the company´s value proposition was based on the dynamics of its pillars of sustainability, aligned with the UN Sustainable Development Goals and the principles of the UN Global Compact.

S U S TA I N A B L E D E V E L O P M E N T G OA L S (S D G) A written declaration signed by the United Nations member states composed of 17 goals and 169 targets whereby states, civil society and companies can direct and measure their contributions to sustainable progress. The member states have agreed to try and reach the SDGs by 2030.

P R INC I P L E S OF T H E UN G LOB AL COMPAC T The UN Global Compact promotes corporate social responsibility around the world. Its ten principles are based on universal statements and conventions related to human rights, employment standards, the environment and anti-corruption.

A L I G N E D W I T H S U S TA I N A B L E D E V E L O P M E N T

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2017 Sustainability Report

Principle 10

Principle 1

Businesses should work against corruption in all its forms, including extortion and bribery.

Businesses should support and respect the protection of internationally recognized human rights.

Principle 9

Principle 2

Businesses must encourage the development and diffusion of environmentally friendly technologies.

TI AN PTION U RR CO

2 Principle 3

ENV

Principle 8

HUM AN RI

TS GH

9

Businesses must make sure that they are not complicit in human rights abuses.

1

10

IRON MEN

8

3

7

Principle 7

LABOR

6

Businesses should support a preventive approach to the environment.

Businesses should support the freedom of association and the effective recognition of the right to collective bargaining.

DA

RD

T

S

Businesses must encourage initiatives to promote greater environmental responsibility.

AN ST

4

5

Principle 4 Businesses must support the elimination of all forms of forced and compulsory labor.

Principle 6

Principle 5

Businesses must support the elimination of discrimination in respect of employment and occupation.

Businesses must support the effective abolition of child labor.

SUSTAINABILIY PILLARS CORPORACION QUIPORT/SDG/ GLOBAL PACT

ODS

GLOBAL PACT

Financial sustainability Efficient and safe operations Excellence in services Committed employees Supply chain Social responsibility Environmental management

2017 Sustainability Report

55

FINANCIAL PERFORMANCE G4-17, G4-EC1, G4-SO6

As part of its financial responsibility, Corporaciรณn Quiport meets timely and efficiently with the economic commitments acquired with the country, through its different local and national entities. In addition, the company makes permanent investments to benefit the communities surrounding the airport, through its Social Management Plan.

FINANCIAL PERFORMANCE 2017

IN THOUSANDS

Operational revenues

US$ 146,990

Non-operational revenues

US$ 10,170

Operational expenses

US$ 50,874

EBITA

US$ 106,286

Net Profit

US$ 55,582

Net Profit/EBITDA

0.52

Capital Investment

US$ 18,822

Financing Activities

US$ 89,142

During 2017, Quiport allocated US $ 647,000 in resources as an investment in the community.

Throughout the year, the organization did not make any type of contribution to political parties.

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2017 Sustainability Report

S U P P LY C H A I N G4-DMA-b, G4-12, G4-EC9, G4-HR1, G4-HR6

The supply chain dynamic is one of the most strategic in the performance of airport activities. For this reason, Corporación Quiport has maintained transparent practices and follow-ups with its suppliers under the framework of shared responsibility.

The main elements of management used with suppliers are in line with the company´s financial policies, the supplier assessment plan, JD Edwards system, Purchases department, technical bases, budget control, payments with the respective reviews and approvals and ongoing checks.

2017 KEY FIGURES • 585 total suppliers • 98% of the suppliers were local .

• US $ 79,287,575.39 was the amount paid to suppliers in this period • 74% was the total expenditure on local purchases ASSESSMENT OF SUPPLIERS In December 2017, a supplier assessment process was externally implemented by SGS Ecuador. This audit company inspects those who wish to become part of the supply chain, according to the parameters established by Corporación Quiport.

EXECUTION OF NE W CONTRACTS In this period the company gained 170 new suppliers. Every one of these suppliers signed contracts containing clauses on human rights and compliance with environmental standards, industrial safety, occupational health and occupational liability.

PURCHASE PROCESS

Any department makes purchase requisitions taking into account the current policy.

Based on the amount of the purchase, quotes are obtained, or a Purchase Committee is created.

Bids are analyzed. The award is made based on technical and economic criteria (among others).

Once the award is made, a purchase order or contract with the supplier is issued.

Once the good or service is received, the invoice is processed for payment.

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AWA R D S 2 0 1 7 Quiport´s management of the airport has earned international acclaim from the industry and passengers, making Quito Airport one of the most awarded airport in the region.

• Mayor´s Office of Quito.

QUIPORT MADE AN “HONORARY TOURISM AMBASSADOR” Corporación Quiport obtained this recognition for its valuable contribution to tourism development in the city, thanks to the growth of connectivity at Mariscal Sucre Airport and its vital role in winning the bid to host Routes Americas 2018.

World Travel Awards S O U T H A M E R I C A´S L E A D I N G A I R P O R T For the fourth year in a row, our airport lifted the trophy for South America´s Leading Airport at the 24th World Travel Awards. The ceremony was held on September 9 at the Hard Rock Hotel in Riviera Maya, Mexico, where ratings of Quito Airport´s cargo and passenger terminal confirmed its leadership in the region.

Skytrax World Airport Ratings • F O U R - S T A R R A T I N G F O R Q U A L I T Y O F S E R V I C E • B E S T R E G I O N A L A I R P O R T I N S O U T H A M E R I C A • B E S T A I R P O R T S T A F F I N S O U T H A M E R I C A The Skytrax World Airport Awards are voted for by air travelers in the largest, annual global airport customer satisfaction survey, and have been held since 1999. The Skytrax World Airport Awards are a global benchmark of airline excellence.

Latin American Quality Institute (LAQI) A W A R D F O R Q U I T O A I R P O R T´S V I P L O U N G E S The “Latin American Quality Institute” Awards highlight excellence in business management and the promotion of a culture of quality in Latin America. To grant these awards, which recognize and certify the quality of products and services offered to passengers who visit VIP Lounges, LAQI considered factors including customer service, innovation, quality of products and services and warmth of staff.

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2017 Sustainability Report

Ecuador Scouts Association “ S E M B R A N D O F U T U R O” AWA R D Corporación Quiport contributed to the care of the environment and protection of natural areas. During a 2017 outing, 1,400 scouts took part in this great activity in Reserva Hídrica Paluguillo, at an altitude of 3,800m in the Pifo-Pallacta sector. In an effort to help water conservation, the scouts planted 8,000 native trees in this reserve that belongs to the Cerro las Puntas Protected Area, part of the Metropolitan System of Protected Areas.

As well as good environmental practices at the airport, it is important for Corporación Quiport to contribute to this type of program that helps to conserve and protect the environment.

• Ministry of the Environment • “ G R E E N P O I N T ” E C U A D O R I A N E N V I R O N M E N T A L A W A R D F O R T H E R E S C U E A N D F I R E F I G H T I N G S E R V I C E B U I L D I N G ( R F F S) The RFFS Building received the “Green Point” award from the Ministry of the Environment, thanks to the implementation of better practices to guarantee the protection and conservation of the environment.

Homeland Security Investigations H O M E L A N D S E C U R I T Y I N V E S T I G AT I O N S AWA R D U.S. Homeland Security Investigations gave an award to Corporación Quiport for the support received from Quito Airport in the fight against organized crime and narcotics trafficking.

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59

AIRPORT IN THE MEDIA The Mariscal Sucre Airport is the main gateway to the country and, therefore, issues related to its management are of public interest. The media permanently finds in the airport a first-hand source that offers relevant news.

LOCAL MEDIA

1 2

3

4

5

E N G L I S H T R A N S L AT I O N S 1. Flower exports increased by 16% by St. Valentine 2. Routes Americas 2018 to be held in Quito 3. Good relationships are crucial 4. Cargolux to operate in the Quito Airport 5. Skytrak awards recognized Quito as the best

in South America 6. Airport signs agreement with Quiport 7. Airport reduced CO2 emissions 8. Quito airport elected as the best in South America 9. Passion for the aircraft 10. Carbon footprint decreases in Tababela 11 . Air Europa airplanes welcomed with

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2017 Sustainability Report

12. Quito airport receives awards for the fourth time 13. Quito airport reached Category II 14. “Nuestra Huerta” a 16-family project,

started at the airport 15. Golf: Quiport Cup begins 16. Capital city will receive the elite of the Continent’s

aeronautical sector 17. Quiport and Corpac boost their activity 18. Quiport will support the Mariscal La Mar airport 19. Quito airport - the best in South America 20. Renewed design in Quito airport’s VIP lounge

7

6

8

9

11

12 10

13

2017 Sustainability Report

61

14

15

16

17

18

19

20

62

2017 Sustainability Report

I N T E R N AT I O N A L M E D I A

2017 Sustainability Report

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OUR O P E R AT I O N

O P E R AT I O N S M A N A G E M E N T G4-9

Since its inauguration, Mariscal Sucre International Airport has become a byword for service and infrastructure. Its physical characteristics distinguish it from its national and international counterparts.

I N F O R M AT I O N O N M A R I S C A L S U C R E A I R P O R T (2 0 1 7 ): • Passengers: 4.8 million • Cargo: 210,223 metric tons • Aircraft Movement: 52,227 • Altitude: 2,400 meters above sea level • Area: 1,500 ha • Approximately 70 ha of construction • Capacity for expansion of 70-100 ha • Runway Length: 4,098m • Annual Capacity: more than 5,000,000 passengers • Area of the Terminal: 53,000m2.

• Annual Cargo Capacity: 250,000 metric tons • Cargo Area: 42,000m2 • Operating Capacity: 12 aircraft movements per hour

2017 Sustainability Report

WORK MODEL G4-DMA-a, G4-DMA-b, G4-DMA-c

Efficient and safe operations are what drive Mariscal Sucre International Airport. Its comprehensive and effective management reinforces Corporación Quiport’s commitment to guaranteeing business continuity and the best experience on both a commercial and cargo level.

The company’s action model is based on: • Continuous improvement of its processes to ensure greater efficiency.

• Prompt execution under the framework of legal certainty according to national and international laws and regulations.

• Workers trained in the correct performance of their activities.

EFFICIENT PROCESSES

QUALIFIED STAFF

SAFE MANAGEMENT

2017 Sustainability Report

Passengers G4 -AO1

TOTAL

4,875,166 passengers

DOMESTIC

2013

2014

68

2017 Sustainability Report

2016

2015

4,875,166

4,852,530

0.5%

2016

2014

2015

2017

2016

-1.8%

2,633,125

-11.1%

2,682,629

2013

-8.4%

3,019,137

2017

-2.0%

3,297,326

3.3%

3,363,999

2015

2,169,901

-8.0%

2,242,041

2014

2,357,407

2,276,693

2,057,107 2013

3.5%

-9.7%

DOMESTIC

INTERNATIONAL

10.7%

-3.5%

5,376,544

INTERNATIONAL

2.8%

5,574,019

45% 5,421,106

55%

2017

Aircraft Operations G4 -AO2

TOTAL *

55,122

52,227

-5.3%

59,786

-7.8%

63,188

-5.4%

66,572

-5.1%

2013

2014

2015

2016

2017

AIRBUS 319 Most used aircraft

International and Domestic

INTERNATIONAL*

-4%

36,566

33,075

30,409

28,830

-5.2%

40,517

-9.5%

17,725

-9.8%

19,577

-9.5%

21,370

-8.4%

21,488

-0.5%

20,972

2.5%

DOMESTIC *

2013

2014

2015

2016

2017

2013

2014

2015

2016

2017

* Military and other non commercial operations are not included.

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69

Key Statistics - Passengers G4 -AO1

INDICATORS

INTERNATIONAL

DOMESTIC

Month with the highest number of passengers

August 237,094

July 242,287

Daily average departing passengers

2,008

3,643

Month with the highest number of aircraft movements

August 1,628

January 2,708

Average load factor

78%

75%

90.9%

79.6%

Monthly average highest maximum take off weight (tons)

103.20

59.78

Destinations

16

11

Weekly frequencies

170

277

Airline with the highest load factor

70

2017 Sustainability Report

R E S U LT S

Cargo G4 -AO3

TOTAL

210,223 tons of cargo

81% 16%

3%

EXPORTS IMPORTS DOMESTIC CARGO

EXPORTS

IMPORTS

(in metric tons)

(in metric tons)

10.9%

1.5%

2.9%

23.5%

-9.7%

151,302

153,577

170,389

29,896

30,759

30,143

27,215

33,602

-2.0%

150,283

0.7%

132,614

13.3%

2013

2014

2015

2016

2017

2013

2014

2015

2016

2017

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Cargo Aircraft Operations G4 -AO2

TOTAL

-3.8%

4.0%

5,134

5,341

5,136

5,672

10.4%

5,083

1.0%

2013

2014

2015

2016

2017

BOEING 767-300 Most used cargo aircraft

Key Statistics - Cargo Month with the highest growth in cargo Month with the highest number of aircraft movements Monthly average tons

in cargo flights

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November

20.5%

(compared to October 2016) November

560 flights 65,867

A I R L I N E S T H AT O P E R AT E I N Q U I T O

Passengers REGULAR

Cargo REGULAR

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15 3 7

8

9

14 10

13 d

j

17

c

2 16

4

ff b

h e

i

6

11

a k g

5

Domestic Airlines

Domestic Destinations Galapagos 24%

Latam 35%

Cuenca 11%

Tame 40%

Avianca 22%

Guayaquil 41%

Manta 7% Coca 6%

PetroAmazonas 3%

Loja 4% Lago Agrio 3% Esmeraldas 2% Santa Rosa 1% Salinas 0.20%

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1

12

The Mariscal Sucre Airport connects Quito with 18 international and 11 domestic destinations.

Our Destinations Domestic

International

a. Cuenca

h. Manta

b. El Coca

i. Salinas

c. Esmeraldas

j. San Cristobal

d. Galapagos Baltra e. Guayaquil

k. Santa Rosa

1. Amsterdam 2. Aruba

11. Lima

3. Atlanta 4. Bogota

12. Madrid 13. Mexico City

5. Buenos Aires

14. Miami

6. Caracas

15. New York

f. Lago Agrio

7. Dallas

16. Panama City

g. Loja

8. Fort Lauderdale

17. San Salvador

9. Houston

International Airlines American 12%

International Destinations Miami 10%

Tame 9%

Lima 13%

Iberia 8% Copa 16%

10. Havana

Madrid 8% Atlanta 6%

LATAM 8%

Panama 16%

New York 6% Fort Lauderdale 4%

Delta 6%

Amsterdam 4%

JetBlue 4% Avianca 21%

KLM 4% Aeromexico 4% United 4% Wingo 1% Viva Colombia 0.62% Inselair 0.01%

Mexico City 4%

Bogota 18%

Houston 4% San Salvador 3% Dallas 2% Habana 0.11% Aruba 0.1%

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D E S A R R O L L O D E R U TA S 2 0 1 7

2017 Route Development JANUARY • The cargo airline Skylease begins operations at Quito Airport with eight frequencies per month.

FEBRUARY • Qatar Cargo begins regular operations in Quito with eight frequencies per month.

MARCH • Tame routes to New York and Lima were reestablished, with seven frequencies per week each.

• Iberia increased its service from three to six direct weekly frequencies to Madrid.

JULY • Cargolux began to operate at Mariscal Sucre Airport with 16 frequencies per month.

DECEMBER • Announcement that the Spanish airline AirEuropa will start operating from January 2, 2018.

Photo: Stefano Rota

ALLIES G4-DMA-b, G4-4, G4-HR6, G4-LA14

Mariscal Sucre International Airport is a dynamic system comprising of 120 commercial operators governmental entities who bring this airport city to life.

Quiport, being responsible for airport administration, operation and maintenance, ensures the correct provision of services associated with the commercial operators, some of whom are involved with airport activities, while others provide diverse services that support the comprehensive nature of the airport.

QUIAMA G4-13

CorporaciĂłn Quiport entrusts the operation of Mariscal Sucre Airport to ADC&HAS Management Ecuador, a company with broad experience in airport operations which comprises the same group of investors as those of CorporaciĂłn Quiport: CCR from Brazil and Odinsa from Colombia.

QUIAMA has operated airport services in Quito since 2002 and has contributed with its experience and professionalism to achieve standards of the highest operating quality, timely maintenance, and excellence in the services Quiport provides.

The ISO 9001-2008 certification that QUIAMA attained guarantees that the company will operate according to universally accepted standardized procedures and ensures its constant improvement. Furthermore, the company‘s successful history is evidenced in its airport investments, development and operation.

In 2017, this company changed its name from ADC&HAS to its current name: Quiama.

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E X T E N S I O N O F S U S TA I N A B I L I T Y C O M M I T M E N T S

To guarantee the sustainable performance of its activities, the concessionaire is in charge of extending its policies and processes to the operators, as well as monitoring compliance with various national and international standards and regulations that govern the airport.

As a result of this follow-up, in 2017 the level of compliance with environmental, industrial safety, occupational health and occupational liability standards by airport operators reached 93.75%. The companies who received the best scores were recognized in the Incentives Plan, managed by Quiport.

COMERCIAL O P E R AT O R

2017 PRIZE

Pertraly

First Place

Attenza

Second Place

Corbantrade

Third Place

Environment

LATAM

First Place

Industrial Safety

Banco Pichincha

First Place

Occupational Health

MERAMEXAIR

First Place

Labor Compliance

Allied

First Place

Continued Improvement

Avianca

First Place

C AT E G O R I E S

Main

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W O R K I N G W I T H I N N O VAT I O N G4-DMA-b

For Corporación Quiport, to a leader, means always seeking to improve upon the level of service provided to its different stakeholders including airlines, passengers, authorities and users in general.

In 2017, the company focused on improving airport processes and facilities to enhance the experience of its users.

SMART AIRPORTS • An Integrated Business Intelligence System was designed to speed up senior management decision-making.

• One of the most modern systems in the world was installed to monitor and manage queues and to measure service times in the departures area.

PA S S E NG E R IMP ROV E M E N T P ROJE C T S Self check-in process for passengers and self baggage tag were integrated into the check-in process of five airlines.

OTHER IMPROVEMENTS • Reconfiguration of the commercial apron (passengers) enabling up to three Code E aircraft to park simultaneously, providing greater flexibility in operations.

• One of the most modern systems in the world was installed to monitor and manage queues and to measure service times in the departures area.

• Ten automatic boarding gates were installed, making this airport a pioneer user of this type of solution in the region.

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W O R K I N G S A F E LY G4-DMA-b

SAFET Y EFFORTS APE X- AIRPORT INTELLIGENCE IN SAFET Y Quiport is part of the APEX in Safety program, a global ACI initiative, since 2014. During 2017, several activities have been developed to enhance safety.

The size of the circles where boarding bridges are stationed has been increased and their parking positions have been improved to avoid them infringing in aircraft safety circles.

CONTINUOUS MONITORING The Continuous Monitoring and Safety Department, in coordination with Quiama, analyzed the new Technical Regulations RDAC 153-154 issued by DGAC, for the preparation and presentation of the new edition of the DGAC Aerodrome Manual, including procedures, plans and technical specifications. This new edition of the Aerodrome Manual was accepted by the Aviation Authority.

Traffic lights were installed at the intersection of the RFFS rapid exit road and the vehicle circulation road.

Having coordinated with the Infrastructure Department and Quiama, several important projects for Corporación Quiport were presented to DGAC, based on the latter’s new technical regulations. The projects were accepted by DGAC in a very short space of time, less than the timeframes given in the regulations, thanks to the aviation authority’s collaboration. This meant that the different works could be performed in the planned time frames, including;

The 2nd edition of the Aerodrome Manual was sent to operators, enabling the search option in the document.

• Expansion of the cargo apron, parking positions for 85 aircraft.

Fauna indicators were developed to measure the effectiveness of the Wildlife Risk Management Plan and Program.

• Redesign of aircraft parking positions for the cargo apron.

Helmets with radios have been given to Rescue and Fire Fighting Service (RFFS) staff to ensure they can communicate by radio in the event of an emergency.

S A F E T Y M A N A G E M E N T S Y S T E M (S M S) (AVSEC) In 2017, the International Civil Aviation Organization (ICAO) audited aviation security in Ecuador, selecting Quito Airport for the verification of compliance with Annex 17, an official ICAO document, and the regulations of Ecuador’s Directorate General of Civil Aviation (DGAC). It obtained a very satisfactory rate of compliance.

• Change from a traditional lighting system to LED lights at the general aviation, cargo and commercial aprons.

• Redesign of parking positions 11 and 14 for Code F aircraft.

• Maintenance and reconstruction works on the “Alfa-3” rapid exit taxiway (from flexible pavement to rigid pavement).

• Construction of an apron for ramp support equipment.

• Start of filling and compaction works for the commercial apron expansion.

• Construction of bathrooms in the vehicle parking area for general aviation.

• Submission and acceptance of the service bridge project for the eastern side of the runway strip.

• Submission of projects for bus washing and oversized cargo.I O N A L 2017 Sustainability Report

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Constant Communication with Operators In order to maintain constant and effective communications with the different operators to strengthen safety and efficiency, Quiport and Quiama have implemented a series of measures with relevant information for companies and persons working at Quito Airport.

• Expansion of the cargo platform, allowing a new parking position that can accommodate a B747-400 aircraft.

• Construction of three bridges over drainage channels to have two rapid and safe accesses from the eastern circulation road towards the runway and vice versa.

In 2017, 21 Safety Bulletins were issued about topics such as the different stages of works on the A3 rapid exit taxiway, maintenance of the A3 rapid exit, information about refueling, the RFFS traffic light, works on the cargo apron, earth moving and removal of the road guard.

Redesign of the passenger apron to simultaneously accommodate three wide-body aircraft docked at boarding bridges.

Five Safety Circulars were also sent on the Safety Talk for temporary contractors, engine testing in hangars, marking equipment and tools, glare and aircraft maintenance on aprons.

Safety Week

Two editions of the Entre Aviones magazine were published on topics such as the placement of chocks and brakes – apron equipment, and apron taxiway crossings.

• Replacement of the asphalt layer at the A3 rapid exit.

To develop a culture of safety in workers who perform tasks in the restricted area of the airport, our 2017 Safety Week was held from 11 - 13 December.

A total of 330 people attended conferences on carbon accreditation, safe ramp driving, self-care, safety liability, ramp safety processes and airside expansion works for 2017 – 2018.

Presentations were also given on a range of topics including:

Runway Safety Team (RST) Mariscal Sucre International Airport is the first in the country to have a Runway Safety Team. The RST is a multidisciplinary group made up of representatives from diverse aviation sectors operating at the airport, which aims to identify hazards and manage operational risks.

In 2017 five work meetings were held. The RST’s oversight was vital during the process to change the pavement at the A3 rapid exit. Eight hazards were identified which were managed through formal action plans.

Aeronautical Studies Projects to be undertaken on the runway, ramp, aprons and taxiways first require an Aeronautical Study to identify hazards and manage risks. This way, aircraft can be safely operated during the performance of the project and after the works are completed when operations and activities resume use of the new infrastructure.

In 2017, aeronautical studies were performed for the following projects: • Redesign of the cargo apron to simultaneously accommodate three B747-800 aircraft, which is the largest aircraft that operates at our airport.

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• Air Traffic Control Simulator.

• New rescue equipment of the Rescue and Fire Fighting Service.

• Operational Procedures.

• Environment, Industrial Safety and Occupational Health: •

Incinerator

•

Thermal Stress and UV Radiation

•

Drug Use Prevention

Summary of Apron Incidents and Accidents • 0 Accidents • 27 Incidents • 1 Serious Incident • 16 Events with no safety consequences

Airport Operational Capacity

Drills

Based on the studies presented to the aviation authority about the implementation of RVR values (runway visibility, 550m for landings and 350m for takeoffs), the operational capacity of Mariscal Sucre International Airport is 99.7%.

In 2017, 5 simulations (4 tabletop exercises and 1 partial simulation) were held in compliance with the Aerodrome Manual.

Tabletop Exercises • Aircraft accident outside the airport.

Passenger Terminal Building In 2017, improvements were made to infrastructure and enhanced procedures were implemented to ensure greater efficiency.

• Volcanic ash fall on the airport – Reventador Volcano.

• Earthquake event with infrastructure collapse.

• Aircraft accident at the airport.

• Installation of 10 automated boarding gates.

• Implementation of digital boarding announcements.

• Procedure for Domestic-International transit passengers: immigration counters in the North International Transit Lounge.

• Procedure for International-Domestic transit passengers: connecting door between Arrivals and use of baggage carousel 3.

• Elimination of customs forms; replaced by random passport screening.

• Installation of LED signage at International Arrivals.

• Improved signage for bathrooms and drinking fountains.

Partial Drill • Aircraft accident at the airport with the participation of the RFFS, airport medical service and city firefighters.

Response Times of the Rescue and Fire Fighting Service The International Civil Aviation Organization states that to meet the maximum response time, airport fire services must be able to reach the furthest point of the airport in three minutes. An average time of 1 minute 22 seconds was recorded in different exercises and simulations throughout 2017. The longest time recorded was 1 minute 33 seconds, well within the limit.

• Installation transport signage in Domestic and International Arrivals and walkways.

• Support of administrative personnel to resolve passenger requirements during the high season: July, August and December.

C AT E G O R Y I I With the support of the aviation authority, specialist technicians and pilots, we carried out a validation of the ILS system on the ground and a flight to test the signal with the DGAC´s laboratory aircraft, which established the reliability of the equipment to operate in CAT II with a 3.2° approach.

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S P E C I A L O P E R AT I O N S

S U C C E S S F U L O P E R AT I O N AT Q U I T O A I R P O R T T O W E L C O M E O F F I C I A L D E L E G AT I O N S A R R I V I N G T O E C UA D O R F O R T H E P R E S I D E N T I A L I N A U G U R AT I O N Working in conjunction with the Presidency of the Republic, Ministry of Foreign Affairs, National Communications Department, Directorate General of Civil Aviation, Police and Armed Forces, from May 23 Quito International Airport welcomed 34 foreign delegations. Ten of these were led by Presidents and Heads of State who were attending the investiture of Lenín Moreno Garcés as President of the Republic of Ecuador for 2017–2021.

Planning by Corporación Quiport and the institutions involved included a special operation plan to handle the 14 official flights that arrived at the airport’s general aviation apron. In addition, it was necessary to plan the logistics for the arrival of delegations who travelled to Quito on commercial flights and their transportation from the passenger apron to the Protocol Lounge.

After the investiture ceremony of Lenín Moreno, the delegations left the country and the special operation plan was successfully implemented until May 25 when the President of Bolivia, Evo Morales, was the last guest to leave the country.

The successful operation went according to plan thanks to prompt coordination between all the entities and airport staff, upholding the country’s name and once again demonstrating the capacity of Ecuadorians.

A C T I V I T I E S T O M A I N TA I N C E R T I F I C AT I O N

AMENDMENT S TO THE AE RODROME M ANUAL A new pavement was included at the A3 rapid exit in the 6th amendment.

A new exemption was made for the operation of A340-600 aircraft in parking positions 11 and 14, and parking positions 10 through 15 were redesigned to accommodate three Code E aircraft, which was included in amendment 7.

Amendment 8 included an information sign on taxiway A1 to indicate that there are 3,000 m available for take-off from that point on the runway for aircraft authorized to take off from that intersection.

The second edition of the Aerodrome Manual was issued, which complies with all national regulations and prepares for the procedures for recertification in 2019.

Foto: Stefano Rota

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OUR SERVICES

Q U A L I T Y A N D S E R V I C E S AT I S F A C T I O N G4-DMA-b, G4-DMA-c, G4-8, G4-PR5

In 2017, Quiport´s planning focus was centered on four key areas to raise service quality standards: gain spaciousness by adapting infrastructure, improve the commercial offering with new stores, provide more facilities for passengers and reinforce a sense of belonging between the airport, Quito and the country.

The passenger experience is a constant concern for the organization. Each year, Quiport carries out various surveys and audits of passengers, users and citizens to determine their levels of satisfaction.

This year, the company obtained an 87.72% passenger satisfaction rating. This is the highest rating recorded since 2010.

PASSENGER SATISFACTION 2010 - 2017 100% 80%

78.71% 68.48%

77.06%

81.59%

87.56%

87.50%

87.72%

20%

72.63%

40%

67.10%

60%

2010

2011

2012

2013

2014

2015

2016

2017

0%

AVERAGE

Linear (SATISFACTION)

D E D I C AT E D T O O U R U S E R S G4-DMA-b, G4-8, G-PR5, G4-4

Foto: BICUBIK Photography

E X PA N S I O N O F I N T E R N AT I O N A L V I P L O U N G E A revamped and more functional space, the new International VIP Lounge opened its doors in November 2017 to serve the 12,000 passengers who pass through this space each month.

This 1,135m2 construction has rest areas, a great offer of food and beverages business and entertainment.

Travelers will also find a variety of services designed for their comfort.

This space also serves as an exclusive lounge for Diners Club members. The design of the new Club Lounge took into consideration the dynamics, tastes and preferences of Diners Club members: spaces to sleep, bathrooms with showers, private spaces and meeting areas, work space, reading area and food service.

E C UA D O R I A N C U S T O M S I N T R O D U C E D I T S PA P E R L E S S S Y S T E M AT M A R I S C A L S U C R E I N T E R N AT I O N A L A I R P O R T The National Customs Service of Ecuador, SENAE, announced its new paperless system whereby passengers who enter the country without any taxable goods no longer need to complete the Customs Registration Form.

NE W ANNOUNCEMENT SYSTEM An automated announcement system was implemented to control the quality of airline information announcements at the terminal. This system will reduce noise emissions, optimize information and provide a better service for passengers.

C H A P E L I N A U G U R AT I O N Mariscal Sucre Airport offers space for those who wish to pray within the airport city.

The Virgen de El Quinche Chapel was inaugurated this year at the Quito Airport Center, opposite the passenger terminal building, to meet the spiritual needs of users and travelers who pass through these facilities.

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The religious consecration ceremony was performed by the Apostolic Nuncio in Ecuador, Monsignor Andrés Carrascosa and the Archbishop of Quito, Monsignor Fausto Trávez. Andrew O’Brian, President and CEO, attended on behalf of Corporación Quiport together with various city authorities.

The new chapel is open every day from 08:00 to 20:00. Its two prayer areas will be available 24 hours a day.

AT T E N Z A D U T Y F R E E O P E N S A N E W S T O R E Attenza Duty Free opened its new technology store which can be found in the airport’s International Departures area.

The new store offers a variety of electronic goods including mobile phones, cameras, speakers, earphones and other products from prestigious international brands.

At the new store travelers will receive personalized assistance to find the perfect product that meets their needs.

B AT T E R Y C O N TA I N E R S P L A C E D I N T H E A I R P O R T The Airport has joined the campaign to provide battery collection containers, organized by the Environment Department of the Municipality of Quito and Empresa Pública Metropolitana de Aseo de Quito (EMASEO).

In coordination with Corporación Quiport, the Environment Department placed five containers in strategic high-traffic locations at the airport, so that users and passengers can safely dispose of used batteries.

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LED LIGHTS As part of the efforts done by Quiport and the airport to mitigate the environmental impact of its operations, LED lights have been installed at the passenger terminal building and aircraft apron. These lights significantly reduce the consumption of electricity, also helping to reduce the airport’s carbon footprint.

G A R D E N S A N D PAT H S To improve the user experience at Quito Airport, Quiport implemented an ambitious plan to remodel paths and create gardens in green areas of the airport. New covered paths have been created from and to the terminal, and gardens have been planted with native vegetation, contributing to the aesthetic of the airport and making external areas more enjoyable.

SIGNAGE With a view to optimize the movement of passengers through the various airport processes, signage at the airport was improved in 2017. The recommendations of the Skytrax World Airport Audit were used to create a more efficient system. This audit provides an accurate global benchmark of airport service standards, this accuracy being guaranteed by the Skytrax unified and global approach.

C O R P O R A C I Ó N Q U I P O R T H A N D S O V E R O F F I C E S T O T H E M E T R O P O L I TA N TRAFFIC AGENCY To continue expanding the services offered to airport users and to provide the Metropolitan Traffic Agency with an operation center for airport vehicle control, Quiport officially handed over offices to this Agency at Mariscal Sucre Airport.

Now the Agency has a place to coordinate its monitoring activities for the benefit of citizens who use the airport’s access roads.

SERVICES FOR PERSONS WITH SPECIAL NEEDS G4-DMA-b

Mariscal Sucre International Airport takes physical access to its facilities seriously and has worked to ensure that 90% of its infrastructure is accessible by persons with special needs.

The terminal has ramps, escalators and wide elevators. There are no uneven surfaces, stairs or slopes. Quiport has also adapted bathrooms and signage in Braille.

In 2017, the airport assigned 50 parking spaces for people with special needs. The airport complies with 100% of the accessibility requirements for all public buildings providing services to passengers.

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B R A N D S O F F E R E D AT T H E A I R P O R T

DUT Y FREE

94

2017 Sustainability Report

R E TA I L

FOOD & BE VER AGES

SERVICES

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95

SOCIAL NE T WORKS Quito Airport is in constant communication with its users and customers through multiple platforms and media. The airports digital communication channels are valued as sources of immediate and relevant information thanks to the tireless work of our professional team who keep the public informed about airport conditions, important information and messages of general interest.

Tw i t t e r : @ A e r o p u e r t o U I O Followers as of December 2016

49,500

Followers as of December 2017

53,647

Tweets

7,308

Mentions

6,170

Likes

20,602

Retweets

9,503

F a c e b o o k : /a e r o p u e r t o Q u i t o

96

Followers as of December 2016

22,179

Followers as of December 2017

46,900

Publications

425

Comments

3,064

Reactions

106,500

Shares

11,494

2017 Sustainability Report

NUESTRO MUNDO

Nuestro Mundo Air Magazine, is co-produced by Quiport and MÁS Comunicación and is the official airport magazine.

Its pages cover a variety of topics of interest for passengers and users such as reviews of national and international destinations, airport news and corporate information about Quiport that is of public interest.

The magazine is an important channel of communication that publishes the most relevant information about Quiport’s management of Mariscal Sucre International Airport.

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SPONSORSHIP AND E VENTS

GOLF PROGOLF 2017 Quiport proudly sponsored the ProGolf 2016 held in Quito as an important contribution to support the city´s strategy to position Quito as an Events and Conference destination.

FIRST EDITION OF THE “QUIPORT CUP” GOLF TOURNAMENT Arrayanes Country Club in Quito hosted the Quiport Cup 2017, a golf tournament organized to promote this sport in the country and to strengthen ties between Ecuador and Canadá.

TENNIS

QUIPORT PRESENTED THE “CHALLENGER EN LOS ANDES” TENNIS TOURNAMENT Quito hosted the Challenger en los Andes Tennis Tournament, which is part of the ATP Challenger Tour. Corporación Quiport was one of the main sponsors of the event which took place on the courts of Club Rancho San Francisco.

POLO

Q U I T O E X P E R I E N C E D T O P Q U A L I T Y P O L O AT T H E “CREDIT SUISSE POLO CUP 2017” Quito hosted the “Credit Suisse Polo Cup 2017” international tournament which was organized by Polo in the Andes and sponsored by companies such as Corporación Quiport. The competition, held in Ecuador for the first time, took place at the Quito Polo Club in Checa from June 25 - July 1, with the aim to promote and grow this sport in the country.

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O U R S O C I AL AN D E N V I R O N M E N TAL COMMITME NT

S O C I A L I N N O VAT I O N G4-DMA-a, G4-DMA-b

Constant work with local communities has allowed Corporación Quiport to create opportunities for development in the areas surrounding the airport. During 2017, the company focused on fostering people´s collective and individual strengths, making improvements to the value chain, invigorating the local economy, reinforcing a sense of belonging and, above all, creating sustainability.

This year, various social investment projects involved 20,983 participants from Yaruquí, Pifo, Puembo, Checa, El Quinche and Tababela.

SOCIAL M ANAGEMENT PL AN G4-EC8, G4-SO1, G4-AO7, G4-AO8

Management of community relationships has been on the basis of the company´s Social Management Plan. It contains four key sections and all programs undergo social and environmental impact evaluations: • Public Consultation and Participation Plan • Labor Regulatory Compliance Plan.

• Social Investment Plan.

• Monitoring Plan.

No one has been relocated due to noise or economic or physical matters.

O P E R AT I O N S W I T H L O C A L C O M M U N I T Y PA R T I C I PAT I O N P R O G R A M S , I M PA C T E VA L UAT I O N A N D/O R

2017

DE VELOPMENT PROGRAMS

102

Operations with social impact evaluations

5

Operations with environmental impact evaluations

2

Number of community development programs based on the needs of local communities

5

Number of participation plans made with local groups of interest

5

Number of committees and consultation processes with local communities

106

2017 Sustainability Report

ACTIVIT Y

IMPAC T E D P E OP L E

Environmental Education

9,033

Consultation Plan

4,191

Scholarships

126

Our Garden

16

Compartamos (Let’s Share)

2,765

Basic Conversational English

504

Customer Service Training

382

Entrepreneurship

142

Airport Visits

3,000

Donations

829

Football Schools

500

Employment Database

150

WORKING WITH THE COMMUNIT Y G4-EC8, G4-SO11

P U B L I C C O N S U LTAT I O N A N D PA R T I C I PAT I O N

This year saw an impressive increase in community participation, with an extra 2,006 participants compared to 2016.

• A total of 14,014 hours of community consultation and participation were recorded.

• Social conflict mitigation was carried out.

• Length of stay of 1 to 2.5 hours per parish visited.

• 100% perception of “excellent management”, as rated by the participants..

• Answering participants’ questions during meetings set up as a mechanism for dialogue regarding possible complaints.

• No complaints about social impact were recorded through formal mechanisms.

SKILL DE VELOPMENT

Members of Quiport’s corporate volunteers scheme trained 504 people in basic conversational English, a program which seeks to improve the employment profile of people in the surrounding areas of the airport.

T R A I N I N G F O R A I R P O R T TA X I D R I V E R S

In June, July and August, 28 taxi drivers from Cooperativa Univalles took part in basic conversational English classes given by Quiport staff.

This is the first group of professional drivers to become certified in the application of a second language, to provide a better service to the tourists who arrive at the airport.

This initiative is part of the company’s Social Investment Program and is performed by the EHS&SR team in coordination with the Commercial department.

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SCHOL ARSHIP PROGRAM

Under the scholarship program, the Company awarded education scholarships to 126 people from low income backgrounds who wish to continue with their studies.

E M P L O Y M E N T DATA B A S E

In this period, 150 new profiles were registered in the existing employment system. This database is the first source used to cover available positions at the airport.

TRAINING G4-EC8

The Company trained more than 320 people in customer service and entrepreneurship with the aim to improve the quality of nearby businesses and to encourage locals to use their talent to create new sources of income.

C O M PA R TA M O S ( L E T ’ S S H A R E )

As part of the Compartamos program, CorporaciĂłn Quiport delivered supplies used at the airport which could be reused for the benefit of the community. In 2017, 16 donations of educational and construction materials, clothing and sports equipment were made to Decentralized Autonomous Governments and educational institutions, among others.

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AIRPORT VISITS

Three thousand young people and children visited Quito Airport to learn about how it is run and to witness the significance of its operations, principally in the development of the sector.

D O N AT I O N O F B U S S T O P S G4-EC7

Three bus stops were built and delivered for the benefit of the community: one in Pifo and two in Oyambarillo. These infrastructure works cost approximately US$66,000.

N U E S T R A H U E R TA : A S PA C E F O R L O C A L PRODUCTION WITHIN THE AIRPORT G4-SO1

The airport city opened its doors to the new Nuestra Huerta store, a community project sponsored by Corporación Quiport that gathers together 16 local producers.

Established in November 2017, this space has quickly become one of the main stores in the region and stocks products that are 100% produced by families from areas surrounding the airport.

The Nuestra Huerta store is located on the second floor of the Quito Airport Center, opposite the passenger terminal building.

ITS BEGINNINGS Thought up as an entrepreneurship project derived from Quiport’s Social Management Plan, with technical support from the Inter-American Development Bank (IDB), Nuestra Huerta has evolved towards a shared value scheme, i.e., a strategy that analyzes the social environment in which an organization performs to renew its processes and generate profits, while having a positive impact on communities.

The first stage of Nuestra Huerta was focused on providing training programs to residents in the area. Once their potential was developed, the products could then be delivered to employees of airport companies, thus creating a production chain.

MILESTONE In 2017, the producers of Nuestra Huerta created the community company “Productora Agrícola Alpachaca Muyuyverde CIA. Ltda.” enabling them to manage the store inside the airport.

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P E R M A N E N T R E C R E AT I O N A L S O C C E R S C H O O L S G4-EC7

As part of its Social Investment Plan, Corporación Quiport established permanent recreational soccer schools in nearby parishes of the Airport, to provide children and young people with an alternative use of their free time.

The operating model for the soccer schools is based on methods developed and tested in the company’s basic conversational English courses, where students pay a symbolic amount of US$ 0.50 for the 1-hour class.

The football schools collaborate with representatives of parish boards and local and sports organizations to organize and use the football fields. For its part, for each school Quiport bears the costs of: • Training materials: Mikasa N.5 footballs (initially 10, and then progressively up to 15), up to 30 cones and 40 training plates • Training vests • Goal nets • Water

IMPAC T E D P E OP L E :

• Advertising Banners • Coaches’ professional fees

Participants: 500 children and young people

Indirect beneficiaries: 2,500 people

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E N V I R O N M E N TA L S T R AT E G Y G4-DMA-a, G4-DMA-b, G4-DMA-c, G4-14, G4-EN29-G4-EN34

As a strategic partner of the country, Quiport performs its operations on the basis of responsibility and respect for the environment. This motivates it to lead initiatives focused on processes and people to help the fight against climate change, strengthen the public´s environmental awareness, protect biodiversity and mitigate the potential negative impact its operations may have.

In 2017, these challenges were addressed in the airport’s Environmental Management Plan, together with good practices and policies that were extended to 100% of commercial operators and suppliers at Quiport, in a commitment to empower everyone to work in a sustained manner for nature according to the national and international legal framework.

The correct adoption and execution of environmental guidelines during this period allowed us to comply with the concession contract and agreements with financial entities, as well as keep the airport’s environmental license, without any objections from the relevant authority.

As a result, the Company did not receive any fines or penalties in this period for environmental breaches, nor did it receive any complaints.

Focus points • Climate Change • Carbon Footprint: emissions and air quality • Energy Efficiency • Impact Mitigation • Environmental Noise • Water Use • Effluent • Waste • Biodiversity • Environmental Awareness

REDUCING THE FOOT PRINT C L I M AT E C H A N G E G4-DMA-a, G4-DMA-b, G4-DMA-c, G4-EN19

Efficient energy and carbon emissions management is key to reducing greenhouse gas (GHG) emissions.

In 2017, Corporación Quiport obtained Level 2 – Reduction certification as part of the Airport Carbon Accreditation Program (ACA); an initiative by the Airports Council International which is recognized by the World Bank, International Civil Aviation Organization (ICAO) and the Federal Aviation Administration (FAA).

This recognition is thanks to Quito airport’s efforts to reduce its carbon footprint from 5,533 tons of CO² in 2014, to 4,950 tons of CO² in 2016. That is, in two years its footprint was reduced by 10.5%, equivalent to saving 583 tons of CO².

This way, Quito airport has become the first 5 - 15 million passenger airport to obtain Level 2-Reduction certification in Latin America and the Caribbean.

I N I T I AT I V E S T O R E D U C E T H E C A R B O N F O O T P R I N T • Installation of 7,700 LED lights, more than 90% of which have automatic regulating sensors.

• Equipping takeoff and landing runways with 180 lights.

• Establishing timetables for turning on lights to make the most of natural light.

• Switching off water cooling equipment for air conditioning between 22:30 and 08:00.

• Maintaining the wastewater sludge dehydration plant, a waste incinerator that reduces gas emissions, an air quality policy that favors the use of alternative fuels and a 70-hectare conservation area for flora and fauna.

STEPS OF THE AIRPORT CARBON ACCREDITATION (ACA) PROGRAM

Mapping

2015

Reduction

Optimization

Neutrality

2017

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AIR QUALIT Y G4-AO5

Continuous measurements of suspended particulate matter (PM2.5 and PM10) were performed every month in 2017 through a mobile monitoring station from three different high impact locations (Otón de Velez, San Vicente de Yaruquí, Santa Rosa de Tababela). No excesses were recorded in respect of permissible limits.

Monthly passive measurements of NO2, NO, O3, SO2 and benzene were made during 2017 from fixed stations in eight locations. No excesses were recorded in respect of permissible limits Monthly records were taken during that same period from eight fixed stations to measure sedimentable particulate materials without showing any excesses.

ENERGY EFFICIENCY AND GHG EMISSIONS INDICATORS G4-EN3, G4-EN4, G4-EN5, G4-EN6, G4-EN15, G4-EN16, G4-EN17, G4-EN18

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ENERGY CONSUMPTION

UNIT

2016

2017

Internal energy consumption

GJ

0.52

0.9

Total external energy consumption

GJ

N/A

89,799

Value unit of measurement of the concession to calculate intensity

(GJ)

169,723

Energy intensity

(GJ)

0.53

DIRECT AND INDIRECT EMISSIONS ( T O N C 02 E Q )

UNITS

2016

2017

Emissions range 1

Ton C02eq

996.2

Not available

Emissions range 2

Ton C02eq

3,953.2

Not available

Emissions range 3

Ton C02eq

Not available

Not available

Emissions range 1, 2 and 3

Ton C02eq

4,949

0.53

2017 Sustainability Report

INTENSIT Y OF EMISSIONS ( T O N C 02 E Q / UNIT OF MEASUREMENT OF THE CONCESSION)

UNITS

2016

2017*

Emissions range 1

Ton C02eq

996.20

Not available

Emissions range 2

Ton C02eq

3,953.20

Not available

Value unit of measurement of the concession to calculate intensity

Ton C02eq

145,269

169,723

Intensity of emissions range 1 and range 2 of GHG (Ton CO2eq / Value unit of measurement of the concession to calculate intensity)

Ton C02eq

0.034070586

Not available

*The measurement of emissions is made at year-end. The results for 2017 will be obtained the following year.

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ENERGY EFFICIENCY AND GHG EMISSIONS I N D I C AT O R S G4-EN6, G4-EN21

PROJECTS THAT WERE BROUGHT FORWARD TO REDUCE OR PREVENT EMISSIONS AND INDICATING TONS OF CO² REDUCED BY IMPLEMENTING THE PROJECT

Improvement of technology for lighting systems and energy efficiency.

C DESCRIPTION OF THE INITIATIVE

GASES INCLUDED C O 2, C H 4, N 2O , H F C , P F C , S F 6, NF3 OR ALL RANGES IN WHICH REDUCTIONS WERE MADE (1, 2 AND 3)

2017

116

Changes were made to lighting with the addition of LED lights In the passenger terminal building, offices, platforms. Changes will also be made to other areas.

CO2

Range 2

STANDARDS OR METHODS FOR THE CALCULATION

GHG Protocol ISO 14064 - ACA Requerements

YEAR OF REFERENCE FOR THE CALCULATION OF THE REDUCTION

2016

T O N S O F C O 2E Q R E D U C E D OR PREVENTED

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2017 Sustainability Report

m

Certain areas have movement sensors to switch on lights or activate escalators

Air Quality Policy

Document containing the contractual obligations of commercial operators for their activities and performance in the airport (airside and landside) related to: - Use of vehicle catalytic converters - Maximum age of 15 years for airside vehicles - If technically feasible, move to use alternative fuels in vehicles - Regular monitoring of emissions from mobile sources

Conservation Areas

Keep two protected areas for the conservation of flora and fauna. Establish programs for reforestation continuous maintenance of these areas.

These areas harbor flora and fauna that needed to be moved from other areas of the airport.

CO2, CH4, N2O

CO2, CH4, N2O

Range 1 and 3

Range 1 and 3

Calculation unavailable

Calculation unavailable

Calculation unavailable

Calculation unavailable

Calculation unavailable

Calculation unavailable

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NOISE I M PA C T M I T I G AT I O N G4-DMA-c

Airport operations create noise that is regularly monitored by Corporaciรณn Quiport in compliance with the limits permitted by current environmental regulations.

Noise monitoring is based on measuring the equivalent sound pressure level (Leq) throughout the period and collecting information on the Leq every minute actively and continuously at the sampling sites, using eight sound level meters (seven integrating and one type 2) that comply with international and national measuring regulations.

The integrating sound level meters measure sound pressure levels in dB(A) and slow response; the Equivalent Continuous Sound Pressure Level (Leq); day-night level (DNL); maximum sound level (LMax) and minimum sound level (LMin).

In 2017, Quiport performed two six-monthly measurements at eight monitoring sites, allowing it to create a strategic noise map.

M A X I M U M N O I S E L E V E L S P E R M I T T E D AT A I R P O R T S MAXMUM LE VELS OF NOISE EMISSIONS FOR GROUND USE

FIXED NOISE SOURCES DE 07H01 A 21H00

DE 21H01 A 07H00

Residential (R1)

55

45

Social Services Equipment (EQ1)

55

45

Social Services Equipment (EQ2)

60

50

Commercial (CM)

60

50

Agriculture, Residential (AR)

65

45

Industrial (ID1/ID2)

65

55

Industrial (ID3/ID4)

70

65

Lkeg lower according to Anexx 4 of Anexx V

Lkeg lower according to Anexx 4 of Anexx V

Multiple Use Ecological Protection (EP) and Natural Resources

Source: TULSMA, Book VI, Annex 5, Ministerial Decree 097A

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NOISE RULE FOR AIRPORTS

SITE OF

GROUND USE

C O M PAT I B I L I T Y

North Head

Public-transport

Yes, up to DNL >85

South Head

Public-transport

Yes, up to DNL >85

ETP-manga15

Public-transport

Yes, up to DNL >85

El Guambi

Residential

NO, only DNL <65

Guayllabamba

Residential and Zoo

Yes, up to >85 Y DNL <70

Otón de Vélez

Residential

Yes, up to < 65

Tababela

Residential

Yes, up to < 65

Yaruquí

Residential

Yes, up to < 65

MEASUREMENT

Technical Rule for the Prevention of Environmental Contamination for Infrastructure Sectors.

S T R AT E G I C N O I S E M E A S U R E M E N T P O I N T S

GUAYLLABAMBA

CABECERA NORTE OTÓN DE VÉLEZ EPT MANGA 15

SAN VICENTE CABECERA SUR EL GUAMBI TABABELA

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WAT E R C O N S U M P T I O N I M PA C T M I T I G AT I O N G4-DMA-b, G4-EN8

Corporaciรณn Quiport has a Sustainability Policy and a Program to mitigate and prevent environmental impacts that determine its actions in terms of managing water as a resource.

There are also mandatory policies in the contracts the company holds with commercial operators at the airport: Effluent Quality Policy and Good Environmental Practices Guide for the management of water.

The airport has an internal sewage system for wastewater which is separate from the rainwater collection system.

Throughout these two systems are water-oil separators, grease traps and pre-treatment plants to treat greywater, blackwater and rainwater, before it reaches collection and treatment points.

The hydro-sanitary system includes a treatment plant, and rainwater is discharged to a reservoir with sedimentation chambers. These treatment processes enable liquid waste to be disposed of in compliance with project standards.

COLLECTED W A T E R ( M 3)

UNIT

2016

2017

Total Collected*

(m3)

258,788

247 850

Reused and/or recycled water

(m3)

N/A

N/A

*The only sources of collection are the municipal water supplies or other public or private water services.

R E S U LT S The difference in 2016 was due to repair works on the A3 quick exit taxiway which involved the use of potable water.

In 2017, all liquid waste was disposed of in compliance with environmental regulations.

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EFFLUENT I M PA C T M I T I G AT I O N G4-EN22, G4-EN24, G4-EN25

D I S C H A R G E O F WA S T E WAT E R Quito Airport has a wastewater treatment plant that processed 221,730 m³ of liquid in 2017.

PROCESS: Initially, the water is filtered through a grease trap and Dissolved Air Flotation (DAF) system to separate suspended solids. Then it undergoes a microbiological treatment (aerobic bacteria). For the third stage of treatment, gravity filters and chlorination are used to disinfect. Lastly, the sludge is treated with aerobic digestion and dehydration through a filter press.

QUAL I T Y OF DI SC H ARG E P U R S UAN T TO T H E FOL LOW ING PAR AM E T E R S (201 7 )

P E R M I TTED LIMIT DBO (MG/L)

AV E R A G E R E S U LT DBO (MG/L)

P E R M I TTED LIMIT SST (MG/L)

AV E R A G E R E S U LT SST (MG/L)

P E R M I TTED LIMIT GREASES AND OILS DBO (MG/L)

R E S U LT GREASES AND OILS (MG/L)

250

23.75

220

23.50

70

<0.30

Source: TULSMA, Book VI, Annex 1D (AM061), Table 1, Limit values for domestic wastewater discharge. Airport regulations.

SPILLS In 2017, no significant spills affecting the environment were recorded.

T R ANSP OR T OF H A Z ARDOUS WA S TE During the evaluation period of this report, there was no cross-border movement of hazardous waste by the Company.

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WA S TE I M PA C T M I T I G AT I O N G4-EN23

The airport has a waste management process and facilities that is specific to landside and airside operations. This involves separation from the source, temporary storage, transport and final disposal through authorized agents, in accordance with environmental regulations.

In addition, there is an airport waste management area and an incinerator to eliminate waste from international flights in accordance with airport regulations.

In 2017, the airport generated 649 tons of waste, 405 tons of which were disposed of.

MILESTONES • In 2017, the amount of waste sent to recycling increased by 8% compared to 2016.

• We received the “Punto Verde” (Green Point) certification from the Ministry of the Environment for the Fire Service Building and airport maintenance, demonstrating responsible management of water, energy, waste and fuels.

WA S TE M ANAGEME NT (TON)

2017

Total waste generated by the company

649

Total hazardous waste by method of disposal

25

Internal or external re-use

0.0

Recycling

10.90

Composting

0.0

Incineration

12.80

Secure landfill

1.70

On-site storage

0.0

Deep-well injection

0.0

Unclassified

0.0

Total non-hazardous waste by method of disposal

624

Internal or external re-use

0.0

Recycling

233.50

Composting

0.0

Landfill

348.20

Dump

0.0

Incineration

42.20

Deep-well injection

0.0

Unclassified

0.0

Total waste disposed (Ton)

405

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BIODIVERSIT Y M ANAGEMENT I M PA C T M I T I G AT I O N G4-EN11, G4-14

Mariscal Sucre International Airport was built on a plateau covered by dry forest vegetation characteristic of InterAndean valleys. This type of Ecuadorian habitat has been severely impacted by human activity. For this reason, the airport monitors the ecosystem and has developed a process to compensate for and relocate flora and fauna that are at risk or endemic to the dry habitat in affected areas, in order to maintain and preserve dry forest species.

• In 2017, 1,209 plant specimens from two species were relocated or replaced.

• 14 specimens of animal from five species were relocated.

• Quiport and Mariscal Sucre International Airport are not located within or next to protected areas or areas of high biodiversity value.

T H E I U C N R E D L I S T O F T H R E AT E N E D S P E C I E S

SCIENTIFIC NAME

E NDANGERED

VULNERABLE

NEAR T H R E AT E N E D

Opuntia soedestromiana

X

Psedalopex culpaeus

X

Sylvilagus andinus

X X (on the Ecuador list)

Stenocercus guentheri Pristimantis unistrigatus Gastrotheca riobambae

124

LEAST CONCERN

X X

Athene cunnicularia

X

Phyllostis haggardi

X

Reitrodontimys soderstromi

X

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B I O D I V E R S I T Y I N D I C AT O R S G4-EN12

SIGNIFICANT IMPAC T ON BIODIVERSIT Y

DIRECT IMPAC T ?

INDIRECT IMPAC T ?

POSITIVE IMPAC T ?

N E G AT I V E IMPAC T ?

Reduction in species

YES

YES

NO

YES

Transformation of habitat

YES

NO

NO

YES

SPECIES AFFECTED BY THE IMPAC T

AREA OF THE AFFECTED ZONES

D U R AT I O N O F IMPAC T S

R E V E R S I B IL I T Y OR I R R E V E R S I B IL I T Y OF IMPAC T S

Naturally regenerating flora and fauna that can tolerate a degree of disturbance to the ecosystem.

23.24 ha

9 months

NA

9 months

Replacement plantings have been made for Acacia macracantha, and croton elegans shrubs have been relocated. Lizards and owls have been relocated.

Fauna: insects and arachnids Acacia macracantha (porknut acacia); Croton elegans; Stenocercus guenteri (lizard);

23.24 ha

Athenne cunicularia (Burrowing owl)

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B I O D I V E R S I T Y I N D I C AT O R S G4-EN13

L O C AT I O N ( DE PAR TM E N T / MUNIC I PALIT Y ) OF THE PROTECTED OR RESTORED H A B I TAT

SIZE OF THE AREA PROTECTED OR RESTORED BY DIRECT ACTION OF THE COMPAN Y (H A)

There are two conservation areas: one measuring 24 ha and the other, 46 ha.

Caraburo Plateau 70 ha West Sector

Area for replacement planting and relocation of species of flora and fauna

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A R E A S TAT U S A N D MAIN PROGRESS

5 ha

No intervention is made in these areas; they are left to regenerate naturally. The existing vegetation is denser and shrubs and trees have increased in size.

This area has seen relocation and replacement planting processes for species of flora and fauna. In 2017, 1,083 Acacia macracantha specimens and 158 Croton elegans specimens were replanted, and 2 wild rabbits (Sylvilagus andinus), green snake (Mastigodryas boddaerti), 3 lizards (Stenocercus guentheri) and 4 mice (2 Phylloti shaggardi and 1 Reitrodontomys sodesrstromi) were moved.

S TA N DA R D S O R METHODS USED FOR THE C A L C U L AT I O N

These areas were defined in the 2011 Environmental Impact Study using satellite imagery.

It was carried out in random transects of 200 m x 4 m across the area. Plants were marked for subsequent relocation with compost and animals were captured using Sherman traps.

TA L K S A N D T R A I N I N G E N V I R O N M E N TA L AWA R E N E S S

COMMUNIT Y In 2017, 206 talks were given which saw an additional 5,205 participants in the Environmental Education Program compared to 2016.

This year, the program included the following actions: • Constant visits to the six parishes surrounding Quito Airport • Length of stay of 4 hours per educational center per visit • 100% perception of excellence, rated by the participants • Enhancement of the curriculum maps of each educational institution • Awareness of matters relating to biodiversity, water, pollution, deforestation and bird hazards

C O M M E R C I A L O P E R AT O R S At the commercial operator level, Corporación Quiport has provided 2,722.5 hours of inductions and training on the environment, health, safety and occupational liability.

Furthermore, the Company carries out follow-up inspections to ensure that good practices and corporate policies are implemented. These inspections are also an opportunity to identify levels of compliance and possibilities for improvement.

3,828

9,033

ANNUAL ATTENDANCE

2016

2017

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CONTENT INDEX - GLOBAL REPORTING I N I T I AT I V E

S T R A T E G Y A N D A N A LY S I S

Statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and its strategy. pag: 8 .

G 4 -1

O R G A N I Z AT I O N A L P R O F I L E

G4 -3

Name of the organization. pag: 8, 18

G4.4

The primary brands, products and services pag: 18, 78, 89

G4.5

Location of the organizationâ&#x20AC;&#x2122;s headquarters pag: 7, 18

G4.6

Number of countries where the organization operates. pag: 18

G4.7

Nature of ownership and legal form. pag: 18, 22

G4.8

Markets served (geographic location, sectors, types of customers and beneficiaries). pag: 88, 89

G4.9

Scale of the organization. pag: 12, 16, 66

G4.10

Breakdown of employees of the organization. pag: 28 SDG: 8

G4.11

Percentage of employees covered by collective bargaining agreements. pag: 36, 20 SDG: 8 Global Compact: principle 3

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G4.12

Describe the organizationâ&#x20AC;&#x2122;s supply chain. pag: 57

G4.13

Significant changes during the reporting period. pag: 78

G4.14

Report whether and how the precautionary principle is addressed by the organization.. pag: 112, 124 Global Compact: principle 1,2 y 7

G4.15

Externally developed economic, environmental and social principles or other initiatives to which the organization subscribes or endorses. pag: 26

G4.16

Organization`s memberships of associations and national or international advocacy organizations. pag: 26, 27, 54

M AT E R I A L A S P E C T S A N D B O U N DA R I E S

G4.17

List all entities included in the organizationâ&#x20AC;&#x2122;s consolidated financial statements or equivalent documents.. pag: 56

G4.18

Process followed for defining the report content and the aspect boundaries. pag: 52

G4.19

List all the material aspects identified in the process for defining report content. pag: 52

G4.20

For each material aspect, report the aspect boundary within the organization. pag: 52

G4.21

For each material aspect, report the aspect boundary outside the organization.. pag: 52

G4.22

Report the effects of any restatements of information provided in previous reports, and the reasons for such restatements.. pag: 52

G4.23

Significant changes from previous reporting periods in the scope and aspect boundaries. pag: 52

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S TA K E H O L D E R E N G A G E M E N T

G4. 24

List of the stakeholder groups engaged by the organization. pag: 50

G4.25

Report the basis for selecting stakeholders with whom to engage. pag: 50

G4.26

Describe the organization’s approach to stakeholder engagement; e.g. frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process. pag: 50

G4.27

Key concerns that have been raised through stakeholder engagement. pag: 50

REPORTING PERIOD

130

G4.28

Reporting period.

G4.29

Date of the most recent report. pag: 7

G4.30

Reporting cycle (annual, biennial, etc.). pag: 7

G4.31

Contact point for questions regarding the report or its contents. pag: 7

G4.32

Report the “in accordance with the GRI standards” option pag: 7

G4.33

Report the organization’s policy and current approach to seeking external assurance for the report. pag: 7

G4.34

Governance structure of the organization, including committees of the highest governance body. pag: 22,25, 26

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ETHICS AND INTEGRIT Y

G4-56

Describe the organization´s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.. pag: 20 SDG: 16 Global Compact: principles 1, 2, 3, 4, 5, 6, 7, 8, 9, y10

SPECIFIC BASIC CONTENT

M ANAGE ME NT AP P ROACH

G4-DMA-A Explain why the aspect is material and its boundaries. pag: 67, 102, 112, 113

G4-DMA-B The management approach and its components. pag: 57, 67, 78, 80, 81, 88, 89, 93, 102, 112, 113, 120

G4-DMA-C Evaluation of the management approach. pag: 36, 67, 88, 112, 113, 118,

ECONOMIC PERFORMANCE

G4-EC1

Direct economic value generated and distributed. pag: 56 SDG: 2,5,8,9

G4-EC6

Proportion of senior management hired from the local community at significant locations of operation. . pag: 26 SDG: 8 Global Compact: principle 6

G4-EC7

Development and impact of infrastructure investments and types of services supported. pag: 108, 111 SDG: 1, 8, 9, 11, 17 Global Compact: principles 1 y 2

G4-EC8

Significant indirect economic impacts, and the extent of these impacts. pag: 102, 104, 107 SDG: 1, 8, 9, 11, 17 Global Compact: principles 1 y 2

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G4-EC9

Proportion of spending on local suppliers at significant locations of operation. pag: 57 SDG: 8 y 12 Global Compact: principles 1 y 6

SOCIAL PERFORMANCE G4-LA1

Total number and rates of new employee hires and employee turnover, by age group, gender and region. pag: 28, 36, 40 SDG: 5 y 8 Global Compact: principle 6

G4-LA2

Benefits provided to full-time employees that are not offered to temporary or part-time employees. pag: 36 SDG: 8 Global Compact: principle 6

G4-LA3

Return to work and retention rates of employees that took maternity or paternity leave, by gender. pag: 41 SDG: 5 y 8 Global Compact: principle 6

G4-LA5

Percentage of workers that are represented in formal joint management-worker health and safety committees. pag: 39 SDG: 8 Global Compact: principles 1, 3 y 6

G4-LA6

Tipo y tasa de lesiones, enfermedades profesionales, días perdidos, absentismo y número de víctimas mortales relacionadas con el trabajo por región y por sexo.

SDG: 3 y 8

G4-LA7

Workers with high incidence or high risk of diseases related to their occupation.

SDG: 3 Global Compact: principles 1 y 2

G4-LA9

Average hours of training per year per employee, by gender and by employee category.. pag: 42 SDG: 5 y 8 Global Compact: principle 6

G 4 - L A 1 0 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.. pag: 36 SDG: 8 Global Compact: principle 6

G4-LA11

Percentage of employees receiving regular performance and career development reviews, by gender and by employee category. pag: 36, 43 SDG: 5 y 8 Global Compact: principle 6

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G 4 - L A 1 2 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity. pag: 22, 25, 26 SDG: 5 y 8 Global Compact: principles 1 y 6

G 4 - L A 1 4 Percentage of new suppliers that were screened using labor practices criteria. pag: 78 SDG: 5, 8, y 16 Global Compact: principles 1 y 6

G 4 - L A 1 6 Number of grievances about labor practices filed, addressed and resolved through formal grievance mechanisms. pag: 21, 28 SDG: 16 Global Compact: principles 1, 2 y 6

G4-HR1

Number and percentage of significant investment agreements and contracts that include human rights clauses. pag: 57, 21 SDG: 16 Global Compact: principles 1 y 2

G4-HR3

Number of incidents of discrimination and corrective actions taken.. pag: 20 SDG: 5, 8 y 16 Global Compact: principles 1, 2 y 6

G4-HR6

Operations and suppliers identified as having significant risk for incidents of forced labor, and measures taken to contribute to the elimination of all forms of forced or compulsory labor. pag: 57, 78 SDG: 8 Global Compact: principle 4

G4-HR8

Number of incidents of violations involving rights of indigenous peoples and actions taken. pag:20.

SDG: 2 Global Compact: principles 1 y 2

G 4 - H R 1 2 Number of grievances about human rights impacts filed, addressed and resolved through formal grievance mechanisms. pag: 21 SDG: 16 Global Compact: principles 1 y 2

G4 -SO1

Percentage of operations with implemented local community engagement, impact assessments and development programs. pag: 21, 102, 104, 108 Global Compact: principle 1

G4 -SO4

Communication and training on anti-corruption policies and procedures. pag: 21, 20 SDG: 16 Global Compact: principle 10

G4 -SO6

Total value of political contributions, by country and recipient/beneficiary. pag: 56 SDG: 16 Global Compact: principle 10

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G4 -SO7

Number of legal actions for monopoly practices and anti-competitive behaviour, and their outcomes. pag: 21 SDG: 16 Global Compact: principle 10

G4 -SO8

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. pag: 21 SDG: 16

G4 -SO11

Number of grievances about impacts on society filed, addressed and resolved through formal grievance mechanisms.. pag: 21, 104 SDG: 16 (meta 16.3 ) Global Compact: principle 1

G4-PR5

Results of surveys measuring customer satisfaction. pag: 88

G4-PR8

Number of substantiated complaints regarding breaches of customer privacy and losses of customer data.. pag: 21 SDG: 16 Global Compact: principle 1

E N V I R O N M E N TA L P E R F O R M A N C E G4-EN3

Energy consumption within the organization. pag: 114 SDG: 7, 12, y 13 Global Compact: principles 7 y 8

G4-EN4

Energy consumption outside of the organization. pag: 114 SDG: 7, 12, y 13 Global Compact: principles 7 y 8

G4-EN5

Intensity of energy consumption. pag: 114 SDG: 7, 12, y 13 Global Compact: principles 7 y 8

G4-EN6

Reduction of energy consumption. pag: 114, 116 SDG: 7, 12, y 13 Global Compact: principles 7, 8, y 9

G4-EN8

Total water withdrawal, by source. pag: 120 SDG: 6

G4-EN11

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Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. pag: 124

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G 4 - E N 1 2 Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. pag: 125 SDG: 6, 14, y 15 Global Compact: principles 7 y 8

G 4 - E N 1 3 Habitats protected or restored. pag: 126 SDG: 6, 14, y 15 Global Compact: principles 7 y 8

G 4 - E N 1 4 Total number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

SDG: 6, 14, y 15 Global Compact principle 7

G 4 - E N 1 5 Direct greenhouse gas (GHG) emissions (Scope 1) pag: 114 SDG: 3, 12, 13, y 15 Global Compact: principles 7, 8, y 9

G4-EN16

Energy indirect GHG emissions (Scope 2) pag: 114 SDG: 3, 12, 13, y 15 Global Compact: principles 7, 8, y 9

G4-EN17

Other indirect GHG emissions (Scope 3) pag: 114 SDG: 3, 12, 13, y 15 Global Compact: principles 7, 8, y 9

G 4 - E N 1 8 GHG emissions intensity. pag: 114 SDG: 3, 12, 13, y 15 Global Compact: principios 7, 8, y 9

G 4 - E N 1 9 Reduction of GHG emissions. pag: 113 SDG: 3, 12, 13, y 15 Global Compact: principles 7, 8, y 9

G 4 - E N 2 1 NOx, SOx and other significant air emissions. pag: 116 SDG: 3, 12, 13 y 15 Global Compact: principles 7, 8, y 9

G 4 - E N 2 2 Total water discharge by quality and destination. pag: 121 SDG: 3, 6, 12 y 14 Global Compact principles 7, y 8

G 4 - E N 2 3 Total weight of waste by type and disposal method. pag: 122 SDG: 3, 6 y 12 Global Compact: principles 7, 8, y 9

G 4 - E N 2 4 Total number and volume of significant spills.pag: 121 SDG: 3, 6 y 12 Global Compact: principles 7, 8, y 9

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G 4 - E N 2 5 Weight of transported, imported, exported or treated waste deemed hazardous.pag: 121 SDG: 3, 6 y 12 Global Compact: principles 7, 8, y 9

G 4 - E N 2 9 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. pag: 21, 112 SDG: 16 Global Compact: principle 8

G4-EN34

Number of grievances about environmental impacts filed, addressed and resolved through formal grievance mechanisms. pag: 21, 112 ODS: 16

S P E C I F I C S E C T O R I N D I C AT O R S ( A I R P O R T O P E R AT O R S E C TOR S U P P L E M E N T 2 0 11)

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AO1

Total number of passengers annually, broken down by passengers on international and domestic flights, and broken down by origin-and-destination and transit passengers.. pag: 12, 68, 70

AO2

Total number of aircraft movements by day and by night, broken down by commercial passenger, commercial cargo, general aviation and state aviation flights. pag: 12, 69, 72

AO3

Total amount of cargo tonnage. pag: 12, 71

AO5

Ambient air quality levels according to pollutant concentrations in microgram per cubic meter (μg/m3) or parts per million (ppm) by regulatory regime. pag: 114

AO7

Number and percentage change of people residing in areas affected by noise. pag: 102

AO8

Número de personas desplazadas física o económicamente, ya sea voluntaria o involuntariamente, por el operador del aeropuerto o a nombre del gobierno u otra entidad, y la compensación otorgada. pag: 102

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