Climate Change Data

Environmental Metrics

ESG Focus Areas

• Reducing carbon footprint
• Reducing the use of fossil fuels
• Reducing the use of scarce natural resources
• Increasing communal sustainability education projects
• Recycling
• Gearing building maintenance towards increased efficiency
• Assisting the national power grid
• Solar and water
• Community development

Environmental Achievements

• Installed a 5.16MWp solar plant across five retail assets, reducing reliance on the grid by 8.2GWh per year and reducing carbon emissions by 3.6 kilotonnes per year.
• Reclaimed or sourced 10ML of water

Social Achievements

• Women’s Day campaign distributing 2000 care packages.
• Smile Initiative providing oral healthcare packages to over 27,000 children.
• Sanitary towel drive providing over 8,000 sanitary towels.
• Stationery drive distributing 4,000 stationery hampers.
• Be wise – sanitise drive donating 1,000 sanitisers.
• Amanzi Ubunti borehole initiative to provide access to clean water.

Governance Achievements

• Solid governance structures aligned with King IV principles.
• Established board committees (audit and risk, remuneration and nomination, social and ethics, investment).

Climate Goals & Targets

Environmental Challenges

• July riots and unrest
• Russia's invasion of Ukraine and increased fuel costs
• Rising inflation and interest rates
• Eskom power outages
• Record levels of unemployment
• Weaknesses in infrastructure
• Depressed consumer confidence
• Corruption
• Rising interest rates
• Availability of finance
• Refinance risk
• Non-compliance with regulations
• Retention of key staff
• IT failure
• Fraud and errors

Mitigation Strategies

• Investment in solar and boreholes to reduce reliance on municipal power and services
• Strong focus on tenant relationships
• Targeted leasing strategy
• Early renewal negotiations
• Effective credit control procedures
• Regular interaction with key people in the industry
• Comprehensive insurance policy
• Regular review of insurance policy and insured values
• Programme for ongoing maintenance
• Budget for adequate and regular maintenance
• Regular building inspections
• Continual review of policy regarding fixed interest rates and hedging
• Negotiations with banks to reduce cost of borrowings
• Regular interaction with bankers
• Engagement with analysts and fund managers
• Active monitoring by designated advisor and company secretary
• Membership of the SA REIT Association
• Consultation with specialists
• Executive management assesses staff capacity
• Short-term incentive bonuses
• Investigation of a long-term incentive scheme
• Support of appropriately skilled IT resources and contractors
• Regular review of internal controls

Supply Chain Management

Responsible Procurement

• Mainly contracts with B-BBEE compliant suppliers.

Climate-Related Risks & Opportunities

Opportunities

• Investment in solar and boreholes

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, King IV Report on Corporate Governance for South Africa

Third-party Assurance: BDO South Africa Incorporated

Environmental Metrics

ESG Focus Areas

• Environmental stewardship
• Employee well-being
• Community investment
• Ethical corporate governance

Environmental Achievements

• Reduced carbon emissions by 3,042 metric tonnes through solar photovoltaic installations at five properties, generating 4,293 MWh of energy.
• Installed eight groundwater harvesting plants.

Social Achievements

• Distributed 18,950 packets of sanitary towels to 18 schools.
• Launched the Amanzi Ubuntu borehole community initiative, providing safe water to local communities.

Governance Achievements

• Maintained a strong ethical culture through regular executive engagement with employees and a zero-tolerance approach to unethical behavior.
• Established a Social and Ethics Committee to oversee social, ethical, and transformational aspects within the Group.

Climate Goals & Targets

Environmental Challenges

• Uncertain macroeconomic environment (constrained economic growth, increasing interest rates, high inflation, municipal cost increases, service delivery failures, load shedding).
• Uncertain property fundamentals (business model adaptability, portfolio diversification and resilience, tenant mix, increased cost of occupancy, liquidity impacts, vacancy levels).
• Load shedding, municipal infrastructure deterioration, and poor service delivery.
• Increased cost of borrowings due to interest rate hikes.

Mitigation Strategies

• Disposal of non-core assets, portfolio diversification, improved income generation, management of inflationary effects, maximisation of existing portfolio performance.
• Diversification of revenue streams, tenant retention, lease escalations, optimisation of tenant mix, reduction of variable costs, refurbishments and maintenance.
• Conservative treasury management, improved operational efficiencies, proactive asset management, addressing tenant and community requirements, ensuring appropriate tenant mix, thorough review of municipal valuations.
• Ongoing reviews of policy regarding fixed interest rates and hedging, negotiations with banks to reduce the cost of borrowings.
• Investment in solar and boreholes to reduce reliance on municipal power and services.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Awarding contracts to Broad-based Black Economic Empowerment (B-BBEE) entities.

Climate-Related Risks & Opportunities

Physical Risks

• Load shedding
• Municipal services risks
• Unreliable electricity supply
• Infrastructure failures

Transition Risks

• Not disclosed

Opportunities

• Investment in renewable energy projects

Reporting Standards

Frameworks Used: International Integrated Reporting Framework ( Framework), King IVTM, JSE Sustainability and Climate Change Disclosure Guidance

Certifications: Null

Third-party Assurance: BDO South Africa Incorporated

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Sanitary towel drive, borehole initiative, solar power generation, carbon emission reduction.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed