The Company is committed to the development of a comprehensive Environmental Social Governance (ESG) Strategy, to be updated regularly and fully implemented by the Company across all of its activities. In recent years, formal strategic thinking in this area and the development of a complete ESG policy was delayed by the Covid-19 pandemic, with the resulting world-wide travel restrictions and the closing of Cuba’s international borders, as well as by the ongoing economic and liquidity problems faced by the country (and by extension also by the Company).
However, as an investment company with participations in real estate development projects, CEIBA has long demonstrated a strong commitment to the incorporation of ESG principles to its investment program and continues to integrate ESG principles into its daily decisions, at all levels. This dedication is most visible in the case of the Meliá Trinidad Península Hotel, the most significant large-scale new investment made by the Company in recent years. Throughout the development of this state-of-the-art hotel, the Company has ensured that the design, construction and future operations of the hotel conform to industry-leading practices in the leisure sector, all aimed at being a first mover and market leader in the Cuban sustainable tourism segment. Some of the measures taken in developing this project include:
- Self-generation and management of a significant part of the energy to be consumed through the large-scale installation of solar panels and integrated battery systems
- Installation of energy efficient backup generators
- Generation of hot water by solar energy
- Smart management of energy resources of the hotel (solar panels, batteries, grid, generators)
- Adoption of new offers made by the Cuban grid to acquire green energy
- Highly efficient water-based air conditioning systems
- Efficient water management systems
- Use of natural materials and elimination of plastics to the greatest extent possible
- Smart management of integrated climate, illumination, gardening/watering and other systems
- Use of recycled water for gardening/watering
- Energy efficient computer, TV and telecommunications networks
- Zero-paper hotel management system
- Hotel management systems aiming for prioritised use of durable and recyclable materials and elimination of single-use and petroleum products
Now that the hotel has begun operations, the hotel manager, together with the Company, are closely monitoring the performance of the hotel and the success of these actions to determine the extent and manner in which they should be applied to the other investments of the Company.
Similarly, through its participation in the governing bodies of the joint venture companies in which it invests and in regular management and other meetings with the hotel operator and management team of the Miramar Trade Center, the Company integrates its ESG focus into the management and corporate governance structures of the joint venture companies in which it has invested. In addition to the environmental component, which is central to the Company’s real estate development and ownership activities, the executive team of the Company also regularly engages its counterparts on other ESG priorities, such as financial and social inclusion, diversity and human development.
Going forward, as part of the formal ESG policy being prepared for adoption by shareholders, the Company will be moving towards a more data-driven approach in an effort to increase available information and provide a path to improved outcomes. The Company views the implementation of these and similar initiatives in each of its existing and new investments as a fundamental component of the success of its ESG commitment and one of the main drivers of long-term sustainable financial returns going forward. In addition, the Board remains fully dedicated to its stated undertaking of adding further strategic goals encompassing other ESG factors and topics for focus in the future and presenting a comprehensive ESG policy to shareholders in the future.