Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy management
• Waste management
• Tenant engagement
• Customer satisfaction
• Employee engagement
• Diversity and inclusion
• Business ethics
• Health and safety
• Community engagement
• Accessibility
• Water conservation
• Green building certifications
• Sustainable procurement

Environmental Achievements

• Reduced carbon emissions per m2 floor area by 15% in 2020 due to COVID-19, environmental program, and lower gas consumption.
• Reduced carbon emissions per m2 floor area by 18% since 2018.
• Total energy consumption in shopping centers decreased by 9% (like-for-like).
• 62% of total electricity consumption comes from renewable sources.
• Installed solar panels on the roofs of Grand Samarkand and Woluwe Shopping, producing 832 MWh electricity by year-end 2020.
• Waste sent directly to landfill decreased to 14% in 2020.
• 51% of portfolio by value was certified with BREEAM certificates by year-end 2020.
• Le Cucine di Curno received a BREEAM Construction Very Good certificate.
• Les Atlantes obtained a BREEAM In-Use certificate with a Very Good score.

Social Achievements

• Achieved an average customer satisfaction score of 8.2 (ranging from 7.5 to 8.8) in 2020.
• Achieved an average tenant satisfaction score of 6.7 in 2020.
• Rolled out Eurocommercial Retail Academy® in seven Swedish shopping centers.
• Low employee turnover at 3.3% and low sickness ratio at 0.5%.

Governance Achievements

• Structured the Company’s ESG governance in January 2021 with an ESG committee reporting to the Supervisory Board.
• No breaches of the Code of Conduct in 2020.
• Employees received 11 training hours on average in 2020, including professional and ESG training.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted activities and data collection.
• Need to increase recycling and reduce waste to landfill.
• Improving tenant satisfaction scores.

Mitigation Strategies

• Implemented energy efficiency measures through Environmental Management System (EMS).
• Developed energy reduction action plans for all French shopping centers.
• Installing smart meters in Italian shopping centers to monitor consumption.
• Investing in cost-effective waste services for tenants.
• Conducting detailed waste audits to prioritize actions for increased recycling.
• Implementing the Eurocommercial Retail Academy® to improve tenant and customer satisfaction.

Supply Chain Management

Responsible Procurement

• Sustainable procurement policies and procedures in each country.
• Focus on quality, innovation, and creativity.
• Favoring local businesses.
• Green clauses in shopping center management contracts in France.
• Using building materials and maintenance products with sustainability labels and certificates.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, EPRA

Certifications: BREEAM

Sustainable Products & Innovation

• Le Cucine di Curno sustainable food hall.

Awards & Recognition

• EPRA Gold Award for sustainability reporting (7 consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate change and carbon impact
• Energy management
• Waste and resource management
• Tenant engagement and satisfaction
• Local community engagement
• Employee engagement and satisfaction
• Diversity and inclusion
• Business integrity
• Cybersecurity and data privacy
• Health and safety of building users
• Customer and visitor attraction
• Connectivity and accessibility
• Renewable energy
• Green building certifications
• Biodiversity

Environmental Achievements

• 25% reduction in carbon emissions per m² floor area since 2018 (like-for-like market-based intensities)
• 43% of assets achieved zero waste to landfill
• 94% of assets BREEAM certified by year-end 2021 (later 100%)
• 67% of total electricity consumption from renewable sources in 2021
• 12% reduction in absolute market-based carbon emissions in 2021 due to decarbonisation strategy

Social Achievements

• Average customer satisfaction score of 8.2
• Average tenant satisfaction score of 6.8
• Launched Eurocommercial Retail Academy® with online gamification platform
• 6.1% employee turnover rate
• 7.5% sickness ratio

Governance Achievements

• Established ESG committee and workgroup
• Published Green Finance Framework (2022)
• Secured €125 million in sustainability-linked loans
• No breaches against the Code of Conduct in 2021
• Awarded EPRA Gold Award for sustainability reporting for the eighth consecutive year and achieved highest ever score of 84 in the GRESB assessment

Climate Goals & Targets

Environmental Challenges

• Climate change risks (flooding)
• COVID-19 pandemic impact on operations and data collection
• Data limitations and exclusions (e.g., tenant-obtained energy consumption)
• Mismatch between numerators and denominators in intensity calculations

Mitigation Strategies

• Asset-level risk assessments aligned with BREEAM In-Use
• Implementation of energy efficiency measures through Environmental Management System (EMS)
• Investment in energy efficiency projects (smart lighting, air conditioning optimization, ground heating/cooling upgrades)
• Installation of renewable energy sources (solar panels)
• Procurement of 100% renewable energy in several countries
• Waste audits to improve data and prioritize actions
• Collaboration with tenants to reduce water consumption
• Updated Green Lease policy to share ESG ambitions and responsibilities with tenants

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct with focus on quality, innovation, and sustainability
• Preference for local businesses
• Use of building materials and maintenance products with sustainability labels and certificates

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, EPRA sBPR

Certifications: BREEAM

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EPRA Gold Award for sustainability reporting (8 consecutive years)
• GRESB Green Star position

Environmental Metrics

ESG Focus Areas

• Climate change and carbon impact
• Energy management
• Waste and resource management
• Water conservation
• Building certification
• Connectivity and accessibility
• Local community engagement
• Green infrastructure and biodiversity
• Renewable energy
• Business integrity
• Diversity and inclusion
• Employee engagement and satisfaction
• Sustainable corporate operations
• Revitalize neighbourhoods
• Responsible procurement
• Health and safety of building users
• Customer and visitor attraction
• Tenant engagement and satisfaction
• Strategic partnerships

Environmental Achievements

• 24% carbon emissions reduced vs. 2022
• 54% of assets with zero waste to landfill
• 85% of assets BREEAM certified
• 15% decrease in total energy consumption compared to the previous year on a comparable property basis
• 19% energy savings in Italy compared to 2022
• 6.5% energy savings in Sweden without major investments
• Over 3,980 MWh electricity generated from on-site solar panels in 2023
• 23 assets sourced electricity from renewable sources in 2023

Social Achievements

• Average customer satisfaction score of 8.3 across 14 centers
• Average retailer satisfaction score of 7.0 in 2022
• Eurocommercial Retail Academy® expanded to eight new centers
• 95% response rate for the first employee survey
• Zero breaches against the Code of Conduct annually

Governance Achievements

• Established a Green Finance Framework
• €385.5 million green loans, €116.5 million green and sustainability linked loans and €100 million sustainability linked loans secured
• Awarded EPRA Gold Award for sustainability reporting
• Achieved a GRESB assessment score of 86, earning a Green Star and four-star position
• Included in Euronext’s AMX® and AEX® ESG indices

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (implied)
• Data limitations in tenant-controlled areas for energy and water consumption
• Delays in BREEAM recertification for some assets
• Increased material costs
• Rising energy costs
• Uncertainty in market signals
• Stigmatization of the real estate sector regarding climate change
• Reduced demand from investors/banks if not adopting more ESG conscious business practices

Mitigation Strategies

• Thorough property assessments conducted by external experts to identify potential physical climate change risks
• Mitigation plans integrated into property-level business plans
• Investments in solar panels, LED lights, upgraded Building Management Systems, and advanced monitoring tools
• Proactive engagement with tenants to gather data on energy consumption
• Installation of smart meters in tenant spaces
• Implementation of energy-saving measures
• Developing decarbonisation pathways for properties
• Developing a Green Finance Framework and incorporating ESG factors into individual loans
• Transparency about impact and playing a role in the transition to a low-carbon economy
• Creating awareness among communities and educating partners

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Prioritizing local businesses
• Selecting low-consumption and renewable energy solutions
• Prioritizing building materials and maintenance products with sustainability credentials

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, strong winds, tornadoes, heavy rainfall, drought)
• Sea level rise
• Changes in precipitation patterns

Transition Risks

• Stricter building codes
• Increased emissions-reporting obligations
• Transition to lower emissions technology
• Substitution of existing products and services with lower emissions options
• Increased cost of raw materials
• Uncertainty in market signals
• Stigmatization of sector
• Reduced demand from investors/banks

Opportunities

• Development of energy-efficient products and services
• Investment in renewable energy sources
• Reduced operational costs due to limited use of natural resources

Reporting Standards

Frameworks Used: EPRA sBPR, GRESB, CDP, EU Taxonomy, CSRD

Certifications: BREEAM In-Use, ISO 14001

Third-party Assurance: Lucideon CICS

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)

Eurocommercial's actions contribute to these goals through investments in renewable energy, employee development, community engagement, and carbon emission reduction initiatives.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EPRA Gold Award
• GRESB Green Star and four-star position

Environmental Metrics

ESG Focus Areas

• Building Efficiency
• Climate Risk Mitigation
• Green Mobility
• Solar Panels
• District Heating
• Sustainability Linked Loans
• Green Loans

Environmental Achievements

• 22% reduction in electricity consumption at Woluwe Shopping (Belgium) due to a new building management system.
• Installation of 833 new solar panels in Belgium, bringing the total to 2,621 panels with an annual production of 836 MWh.
• Installation of electric car chargers: 12 stalls in Val Thoiry (France), 26 stalls at Shopping Etrembières (France), 18 stalls at Les Portes de Taverny (France), 16 stalls at Grand A (France), 50 stalls at Carosello (Italy), and 53 stalls at I Gigli (Italy).
• Waterproofing and roof insulation completed at I Gigli, Collestrada, Il Castello, and Curno (Italy), contributing to energy consumption reduction and EPC rating improvement.
• Solar panels at Carosello (Italy) and I Gigli (Italy) in full production, producing 2,048 MWh in the first 9 months of 2024 (47% of total electricity need for common areas).
• Solar panels installed in all Swedish shopping centers, producing 3,400 MWh per year (around 10% of yearly electricity consumption).
• Improved district heating in Elins Esplanad, Hallarna, and Ingelsta Shopping (Sweden) using renewable sources or greener alternatives.

Social Achievements

• Continued strong tenant demand resulted in 4.0% rent uplifts on renewals and relettings from 264 transactions.
• 96 new lettings to retailers entering their centers, producing a 9.4% rent uplift.
• Completed remerchandising projects at Woluwe and Carosello, providing new full-format stores for Inditex Group brands and other major international retailers.
• Achieved a GRESB 5-Star Rating and received an EPRA Gold Award for sustainability reporting for the eleventh consecutive year.

Governance Achievements

• Loan extension agreements for €315 million closed, with a further €63.3 million expected to be finalized before year-end.
• Refinancing of almost all long-term loans maturing in 2025 completed.
• €265 million six-year loan agreement with ABN AMRO Bank and ING Belgium for refinancing of Woluwe Shopping (expected to qualify as a green loan).
• €50 million six-year green and sustainability-linked loan agreement with ABN AMRO Bank extending financing on Cremona Po (Italy).

Climate Goals & Targets

Environmental Challenges

• Negative rental uplift of -3.4% in France, mainly due to reletting a few units at lower rents to attract stronger brands.
• Temporary higher vacancy in Sweden due to ICA hypermarket vacating Ingelsta Shopping.

Mitigation Strategies

• Relletting vacant units in France at lower rents to attract strong brands and strengthen the merchandising mix.
• Securing new tenants for the vacated ICA hypermarket space in Ingelsta Shopping (Sweden), including Coop and Normal.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB, EPRA sBPR, CSRD

Awards & Recognition

• GRESB 5-Star Rating
• EPRA Gold Award for sustainability reporting