Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 17

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 17
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 (such
as voluntary disclosures, certifications, or goals, among others) to advance our Corporate Sustainability Strategy or to respond to stakeholder
expectations, such initiatives may be costly and may not have the desired effect. Expectations around our management of ESG matters continue
to evolve rapidly, in many instances due to factors that are out of our control. For example, we may ultimately be unable to complete
certain initiatives or targets, either on the timelines initially announced or at all, due to technological, cost, or other constraints,
which may be within or outside of our control. Moreover, many ESG initiatives leverage methodologies and data that continue to evolve.
As with other companies, our approach to such matters also evolves, and we cannot guarantee that our approach will align with any stakeholder’s
expectations or preferences. Various stakeholders have different and at times conflicting expectations, and both proponents and opponents
of various ESG matters are increasingly resorting to activism, including litigation, to advance their perspectives. Various capital providers
and customers also incorporate ESG matters into their investment and procurement considerations. Addressing stakeholder expectations entails
costs and failure to successfully navigate such expectations, as well as evolving interpretations of any existing governmental laws or
requirements, may result in reputational harm, loss of customers or contracts, impact on regulatory or investor engagement, or other adverse
impacts to our business. Such risks may also be augmented based on relative performance, both against any initiatives or goals we communicate
as well as in comparison to our competitors. For example, there have been increasingly nuanced allegations of greenwashing against companies
making significant ESG claims due to a variety of perceived deficiencies in performance, disclosure, or methodology, including as stakeholder
perceptions of sustainability continue to evolve.

There is also increasing attention from various policymakers
to ESG matters, as several jurisdictions (including Mexico) have adopted or are considering adopting requirements for companies to undertake
certain disclosures or other actions regarding climate- and other ESG-related matters. However, these regulations are not uniform, including
(among other things) in some instances having different approaches to materiality, and other policymakers have sought to constrain companies’
consideration of ESG matters. This and other stakeholder expectations could likely lead to increased costs as well as scrutiny that could
heighten all of the risks identified in this risk factor. Additionally, many of our customers and suppliers may
be subject to similar expectations, which may augment or create additional risks, including risks that may not be known