Climate Change Data

Environmental Metrics

ESG Focus Areas

• Occupational health & safety and well-being
• Ensuring health & safety and the well-being of tenants, visitors and contractors
• Generating and distributing economic value
• Contributing to employment
• Green building certification
• Energy efficiency and climate change management
• Regulatory compliance and business ethics
• Engaging and investing in local communities

Environmental Achievements

• Increased green-certified properties to 30, accounting for 70.6% of the standing commercial portfolio by value (up from 60.5% in 2017).

Social Achievements

• Established the Globalworth Foundation to oversee CSR initiatives.
• Supported over 10 charitable actions through financial contributions and employee volunteerism.
• Maintained a 48% to 52% ratio of male to female professionals.

Governance Achievements

• Published a Statement of Compliance with the UK Corporate Governance Code.
• Updated processes for data handling to comply with GDPR.
• Re-vamped the Board Committee structure, creating a new Nomination Committee and splitting the Audit and Risk Committee.

Climate Goals & Targets

Environmental Challenges

• High rate of employment potentially hindering future economic growth.
• Increasing construction costs.
• Potentially slower economic growth.
• Cybersecurity threats.

Mitigation Strategies

• Conservative financing policy with a long-term leverage target below 40% loan-to-value (LTV).
• Focus on simple debt structures and euro-denominated assets, liabilities, and revenues.
• Strengthening equity story to enhance corporate efficiencies.
• Raising awareness on cybersecurity issues.

Supply Chain Management

Supplier Audits: Individual checks on potential providers before entering into business relationships.

Responsible Procurement

• Multi-criteria evaluation including capabilities, price competitiveness, and past performance.
• Requiring all suppliers and contractors to follow relevant parts of the Code of Conduct.

Climate-Related Risks & Opportunities

Opportunities

• Investment in energy efficient properties

Reporting Standards

Frameworks Used: GRI Standards Core option, EPRA sBPR

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 11
• SDG 7
• SDG 13
• SDG 16
• SDG 2
• SDG 4

Globalworth's initiatives contribute to these SDGs through various programs and investments in health, safety, economic growth, sustainable cities, climate action, ethical business practices, community engagement, and education.

Awards & Recognition

• Romanian Capital Market Awards
• CIJ Awards
• Eurobuild CEE Awards
• Real Estate Gala
• Romanian PR Award
• CEE Investment Awards
• Forbes Romania Gala
• CEE Capital Markets & FinTech Matchmaking Summit
• CIJ Hall of Fame Awards

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased green certified properties to 43 (from 30 in 2018), valued at €2.3 billion (€1.6 billion in 2018).
• Added 13 environmentally-certified properties to the portfolio in 2019.
• First BREEAM Outstanding certified property added to the portfolio in Podium Park in Krakow.

Social Achievements

• Continued active social program with donations of c.€1m, supporting over 10 causes and holding more than 30 events with over 150k participants.
• Maintained a ratio of male to female professionals of 46% to 54%.
• Launched Globalworth District, the first art & tech district in the CEE, hosting over 150k people.

Governance Achievements

• Continued focusing on Corporate Governance principles, processes and procedures.
• Implemented (or in the implementation process of) initiatives such as kinetic floors, assistance robots, ice storage and geothermal units.
• Improved credit rating to investment grade by all three major rating agencies.

Climate Goals & Targets

Environmental Challenges

• The impact of the Covid-19 pandemic on economic growth and real estate markets.
• Maintaining portfolio occupancy and income levels during high uncertainty due to Covid-19.
• Assessing the speed at which companies commit to development projects.

Mitigation Strategies

• Following regulations and recommendations issued by the World Health Organisation and governments.
• Donated €650k to assist hospitals and staff in Poland and Romania.
• Implemented measures to ensure a safe return to the office.
• Significantly scaled back the development program.
• Reduced renovation and upgrade capex for standing properties.
• Reduced overheads and other costs, including employee-related costs.

Supply Chain Management

Responsible Procurement

• Multi-criteria evaluation of suppliers including ethical values, credentials, pricing, and past performance.
• Requiring partners to follow relevant parts of the Code of Conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, EPRA sBPR

Sustainable Products & Innovation

• Kinetic floors, ice storage systems, geothermal energy systems.

Awards & Recognition

• Investor of the Year in Poland (CEEQA, EUROBUILD AWARDS, CEE INVESTMENT AWARDS)
• Investor of the Year (SEE REAL ESTATE AWARDS)
• Development & Business Award of Excellence for Romania (EURO CONSTRUCTION GALA)
• First place for Globalworth Campus for Romania (INTERNATIONAL PROPERTY AWARDS)
• Best Leading Green Development & Developer for Romania (CIJ AWARDS)
• The office project of the year in Romania, The office developer of the year in Romania (REAL ESTATE GALA)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Added 10 properties with BREEAM Very Good or higher certifications to the portfolio, bringing the total to 47 green-certified properties accounting for 81.8% of the standing commercial portfolio by value.
• Reduced building energy intensity by 14% in Poland and 22.7% in Romania (like-for-like).
• Reduced greenhouse gas emissions intensity from building energy consumption by 15.1% in Poland and 20.6% in Romania (like-for-like).
• Issued inaugural €400m green bond.

Social Achievements

• Supported 27 initiatives with over €2.0 million, with a focus on fighting COVID-19.
• Implemented a Wellbeing Program including webinars on stress management and brain fitness.
• Became a founder partner of Endeavor Romania, supporting high-impact entrepreneurs.

Governance Achievements

• Maintained high standards of corporate governance, complying with the UK Corporate Governance Code.
• No confirmed incidents of corruption or legal actions for anti-competitive behavior.

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on economic growth and real estate markets.
• Addressing evolving office and industrial market trends.
• Managing portfolio to safeguard occupancy and income levels during uncertainty.

Mitigation Strategies

• Proactive approach to ensure health and safety, business continuity, and long-term viability.
• Risk-adjusted investment approach, focusing on select development projects.
• Review of suppliers and supplier contracts to improve efficiency and achieve significant savings.

Supply Chain Management

Responsible Procurement

• Multi-criteria operational evaluation of suppliers
• Ethical values checks
• Compliance risk assessment
• Requirement for suppliers to follow relevant parts of the Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Investing in energy efficient properties

Reporting Standards

Frameworks Used: GRI Standards: Core option, EPRA sBPR

UN Sustainable Development Goals

• SDG 7: Affordable and Clean Energy
• SDG 11: Sustainable Cities and Communities

Green building certifications, energy efficiency improvements, community investments.

Sustainable Products & Innovation

• Ice storage system and geothermal energy systems
• Property App with smart touchless solutions

Awards & Recognition

• EPRA sBPR Silver Award
• EPRA sBPR Most Improved Award
• CIJ Awards Best Leading Green Development & Developer in Romania
• CEE Investment Awards Investor of the Year
• 8 other real estate awards

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Certified or recertified 38 properties with BREEAM Very Good or higher certifications.
• Five properties were environmentally certified for the first time during the year.
• 14 properties had their level of certification improved, from BREEAM Very Good to Excellent.
• Globalworth Square received BREEAM Outstanding accreditation with a 99% score.
• 100% of the energy used in Polish properties and Romanian office portfolio generated from renewable sources.

Social Achievements

• Contributed over €1.0m in more than 20 initiatives in Romania and Poland, positively impacting over 138k people.
• Maintained a strong focus on giving back to the community.
• Implemented Wellbeing Program with webinars on various topics.

Governance Achievements

• Adhered to the UK Corporate Governance Code (until 2022), then adopted the QCA Code.
• Implemented a Code of Conduct with annual training updates.
• Established an Extended Compliance System with various policies and procedures.

Climate Goals & Targets

Environmental Challenges

• Higher uncertainty in the market due to the lasting impacts of the COVID-19 pandemic, supply chain disruptions, increasing energy and commodity prices, inflation, and the war in Ukraine.
• Addressing evolving office and industrial market trends to provide the right type of spaces to occupiers.

Mitigation Strategies

• Active and efficient management of the real estate portfolio.
• Establishing long-term partnerships with high-quality tenants.
• Investment in new select opportunities through acquisition or development.
• Proper timing of new development projects, delaying or redesigning projects as needed.

Supply Chain Management

Responsible Procurement

• Multi-criteria operational evaluation of suppliers including know-how, credentials, pricing, and past performance.
• Individual checks to ensure shared ethical values and confirm no new relationship exposes Globalworth to compliance risks.
• Suppliers required to follow applicable parts of the Code of Conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, EPRA sBPR

UN Sustainable Development Goals

• Goal 7: Affordable and Clean Energy
• Goal 11: Sustainable Cities and Communities

The report mentions alignment with these goals through various initiatives.

Sustainable Products & Innovation

• Ice storage system and geothermal energy systems in Globalworth Square
• Green energy solutions (solar panels, electric vehicle chargers)
• Property App with smart touchless solutions
• Virtual reception and visitor management platform

Awards & Recognition

• Sustainalitics ESG Risk Rating (Low risk)
• MSCI ESG Rating (A)
• EPRA sBPR Silver Award
• Several real estate awards in Romania and Poland
• CSR Community Index Gold Recognition
• Romanian CSR Awards 1st prize

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• €2.6 billion in 53 green certified properties.
• 45 properties were certified or recertified with BREEAM Very Good or higher certifications during the year.
• 98% of the energy used in our portfolio is from renewable sources.

Social Achievements

• Contributed to over 25 social initiatives in Romania and Poland.
• Offered 14.9k sqm of GLA in our properties in Poland and Romania to local authorities and organisations in response to the Ukrainian refugee crisis.

Governance Achievements

• Adopted the QCA Code of Corporate Governance.
• No confirmed incidents of corruption, no legal actions for anti-competitive behaviour, and no substantiated complaints concerning breaches of customer privacy.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic/geopolitical risks and the war in Ukraine impacted the economic and business environment.
• Supply chain disturbances, hikes in fossil fuel prices, increased costs for transportation and construction materials, and higher levels of inflation and interest rates.
• Decreased average standing occupancy of our combined commercial portfolio (85.6% in 2022 vs 88.5% in 2021).

Mitigation Strategies

• Strategic investments in existing and new high-quality properties.
• Managing our portfolio to preserve and enhance operational performance.
• Maintaining a flexible capital structure that can adapt to evolving market conditions.
• Active asset management initiatives and commitment to sustainable development to maintain stable headline rental levels.

Supply Chain Management

Responsible Procurement

• Partners are required to follow the Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme temperatures
• Extreme winds
• Floods
• Sea level rise

Transition Risks

• Changes in tenants’ requirements for sustainable green efficient and technologically advanced buildings

Reporting Standards

Frameworks Used: GRI Standards: Core Option, EPRA sBPR, TCFD

Certifications: BREEAM, LEED, EDGE, WELL Health-Safety Rating, access4you

Third-party Assurance: EY

Awards & Recognition

• Golden Award - Marketing Event of the Year - Hala Koszyki
• Investment of the Year - Retail Space Market - Renoma
• Golden Award - The Best Food Hall in Poland - Hala Koszyki
• Golden Award - PR & Employer Branding
• Best Interior Concept for Uniqa Polska in WTT
• Best Technology Driven Office Building award – Globalworth Square
• Office Developer of the Year award – Real Estate Gala
• Logistics Project of the Year at SEE Property Forum 2022 – Chitila Logistics Hub
• Best Green Development of The Year at CIJ Awards gala – Globalworth Square
• Forbes Best Office Buildings – The New Way of Working Gala - Globalworth Square
• CSR Community Index award
• Gold Recognition for the best practices in community investment, for the program Hi-Tech Learning Center at the category Tech 4 Good

Environmental Metrics

ESG Focus Areas

• Climate stability and air quality
• Waste and resource intensity
• Water and marine resources
• Innovation of better products and services
• Health and safety
• Employment
• Socioeconomic convergence
• Engaging and investing in local communities

Environmental Achievements

• 92.5% of standing commercial portfolio green certified (BREEAM Very Good or higher)
• 100% green energy used in Polish properties and Romanian office portfolio
• All standing office and mixed-use properties received WELL Health-Safety Rating

Social Achievements

• Launched "Eco-friendly office trips" campaign with 450 participants and 54,000 km travelled sustainably
• Supported over 13 initiatives in Romania and Poland with over 29,000 beneficiaries
• Improved employee satisfaction scores in 2023 survey

Governance Achievements

• Adopted the Quoted Companies Alliance (QCA) Code of Corporate Governance
• No significant instances of non-compliance with laws and regulations, corruption, or anti-competitive behavior in 2023
• Maintained Sustainalytics "Low Risk" rating (11.1%) and MSCI "A" rating

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (cyclones, floods) impacting operations and increasing insurance costs
• Increased carbon pricing and reporting obligations leading to higher costs
• Changing consumer behavior affecting ability to attract and retain customers

Mitigation Strategies

• Regular climate risk assessments and investments in risk reduction solutions
• Adequate insurance coverage
• Implementation of energy efficiency initiatives and renewable energy sourcing
• Development of a decarbonization plan
• Development of two climate scenarios to explore implications for the business

Supply Chain Management

Responsible Procurement

• Multi-criteria operational evaluation of suppliers, including ethical values and compliance risk assessment
• Uniform service level agreements for service providers
• Green clauses in leases (Romania)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (cyclones, floods)
• Increased insurance rates

Transition Risks

• Increased carbon pricing and reporting obligations
• Difficulty in complying with energy efficiency measures

Opportunities

• Development of energy-efficient products and services
• Increased demand for green buildings

Reporting Standards

Frameworks Used: GRI Standards 2021, EPRA Best Practice Recommendations on Sustainability Reporting (sBPR)

Certifications: BREEAM, LEED, WELL Health-Safety Rating, EDGE

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 14
• SDG 17

Initiatives contribute to these goals through various environmental, social, and economic activities

Sustainable Products & Innovation

• Green energy solutions (solar PV panels, electric chargers)
• Property App (smart touchless solutions)
• Virtual reception and visitor management platform
• FORGE by Honeywell

Awards & Recognition

• EPRA BPR Gold Award

Environmental Metrics

ESG Focus Areas

• Sustainability
• Energy efficiency
• Tenant comfort
• Green buildings

Environmental Achievements

• Certified or recertified 14 properties with BREEAM Very Good or higher certifications.
• 47 green-certified properties valued at €2.2 billion (85.3% of standing commercial portfolio value).
• 95.7% of office and mixed-use properties by value have a WELL Health-Safety rating.
• Securing 100% of energy used in Polish and Romanian properties from renewable sources.

Social Achievements

• €140k donated to over 13 initiatives in Romania and Poland.
• Various community engagement campaigns (tree planting, artist residency support).

Governance Achievements

• Successfully completed a complex refinancing process, strengthening debt maturity profile.
• Divested non-core logistic/light industrial portfolio, enhancing liquidity.

Climate Goals & Targets

Environmental Challenges

• High capital costs and geopolitical tensions.
• Persistently demanding market conditions.
• Higher construction costs and interest rates reducing development activity.
• Challenges in certain regional Polish markets.
• High discount rates impacting commercial valuations.

Mitigation Strategies

• Successful refinancing and deleveraging.
• Disposal of non-core assets.
• Focus on preserving value of core assets through selective investments.
• Launching of Globalworth operated flex office concept.
• Close monitoring of conditions in regional Polish markets and adapting to local dynamics.
• Liability management strategy by extending near-term facilities and arranging new secured facilities.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme precipitation

Reporting Standards

Frameworks Used: GRI Standards: Core option, EPRA sBPR (European Public Real Estate Association’s Sustainability Best Practice Reporting Recommendations)

Certifications: BREEAM, LEED