Climate Change Data

Citycon Oyj

Climate Impact & Sustainability Data (2010, 2011, 2014, 2016)

Reporting Period: 2010

Environmental Metrics

Total Carbon Emissions:64,129 tCO2e/year
Scope 1 Emissions:0 tCO2e/year
Scope 2 Emissions:63,255 tCO2e/year
Scope 3 Emissions:874 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:275.4 GWh/year
Water Consumption:569,021 m3/year
Waste Generated:13,650 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Energy Efficiency
  • Water Consumption
  • Waste Management
  • Sustainable Construction
  • Employee Well-being
  • Community Engagement
  • Human Rights
  • Corporate Governance

Environmental Achievements

  • Rocca al Mare extension awarded a silver LEED® certificate (first in the Baltics)
  • Liljeholmstorget Galleria awarded a platinum LEED® certificate (first shopping centre in Europe)
  • Green Index improved by 26% from the previous year
  • Annual targets met for electricity and water consumption, waste management, and sustainable construction (except carbon footprint due to increased heating consumption)

Social Achievements

  • Citycon Code of Conduct approved
  • Employee satisfaction index of 63.2, leadership index of 71.2, and engagement index of 72.3
  • 3.6 full-day training sessions per employee
  • Toy collection campaign in Finland, collecting over 60,000 toys

Governance Achievements

  • Externally assured Sustainability Report (GRI Application Level B+)
  • EPRA Best Practice Recommendation Gold Level Award for the 2009 Annual and CRS report

Climate Goals & Targets

Long-term Goals:
  • Reduce greenhouse gas emissions by 20% from 2009 levels by 2020
  • Reduce energy consumption by 9% from 2009 levels by 2016
Medium-term Goals:
  • Achieve 75% waste recycling rate by 2015
  • Reduce landfill waste to 25% of total waste by 2015
Short-term Goals:
  • Reduce water consumption to <3.5 litres per visitor/year

Environmental Challenges

  • Record cold winter, low inflation, higher vacancy due to redevelopment projects
  • Increased property operating expenses due to severe winter conditions
  • Challenging economic environment affecting demand for retail premises and rental income
  • High unemployment in Baltic countries
  • Rising construction costs in Finland and Sweden
  • High cost of long-term unsecured bank loans
Mitigation Strategies
  • Active redevelopment and extension projects to increase net rental income and property value
  • Directed share issue to strengthen financial position
  • New long-term loan agreements
  • Centralized property maintenance contract with ISS Palvelut Oy in Finland
  • Divestment of non-core apartments
  • Conservative financing policy

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Policy on supply chain management approved in Finland
  • ISS partnership agreement for maintenance, cleaning, and security in Finnish shopping centres

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather conditions increasing maintenance costs
Transition Risks
  • Stricter regulations on energy and emissions; rising material costs
Opportunities
  • Enhanced energy efficiency improving competitiveness; renewable energy alternatives

Reporting Standards

Frameworks Used: GRI G3

Certifications: LEED

Third-party Assurance: KPMG

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • LEED certificates for Rocca al Mare, Liljeholmstorget, and Trio
  • EPRA Best Practice Recommendation Gold Level Award

Reporting Period: 2011

Environmental Metrics

Total Carbon Emissions:69,413 tonnes of carbon dioxide equivalent
Total Energy Consumption:246.6 GWh
Water Consumption:638,851 m3
Waste Generated:15,361 tons

ESG Focus Areas

  • Environmental responsibility
  • Sustainable development

Environmental Achievements

  • Total energy consumption (incl. electricity consumption in common areas, heating and cooling) amounted to 246.6 gigawatt hours. The consumption decreased by 0.6 per cent compared to the 2009 level. In shopping centres, energy consumption per visitor decreased by 14.4 per cent and energy consumption per sales fell by 21.2 per cent. Also, energy consumption per gross leasable area fell by 6.7 per cent.
  • Total waste volume generated by Citycon's shopping centres amounted to 15,361 tonnes, with landfill waste accounting for 3,263 tonnes, or 22.4 per cent. The recycling rate in shopping centres improved slightly to 77.6 per cent.

Social Achievements

  • Green Shopping Centre Management programme audited all Citycon shopping centres, resulting in an 11.1% increase in the Green Index.

Governance Achievements

  • Citycon applied EPRA best practice policy recommendations for sustainability reporting.
  • All Citycon shopping centres were audited according to the Green Shopping Centre Management programme.

Climate Goals & Targets

Medium-term Goals:
  • Achieve 80% waste recycling rate by 2015
Short-term Goals:
  • Reduce carbon footprint by 2–3 per cent
  • Reduce energy consumption by 2–3 per cent
  • Reduce water consumption in shopping centres to an average of 3.8 litres per visitor per year
  • Achieve 78% waste recycling rate

Environmental Challenges

  • Economic development in the company’s operating regions affecting demand, vacancy rates and market rents in retail premises.
  • Rise in loan margins, weaker availability of debt financing and the fair value development of properties in uncertain economic conditions.
  • Sovereign debt problems in the euro area causing uncertainty in the financial markets and revising short-term financial growth forecasts downwards.
  • Tightening regulation governing the banking and insurance sectors pushing the costs of debt financing upwards and limiting the availability of long-term bank loans.
Mitigation Strategies
  • Focus on increasing net cash flow from operating activities and EPRA operating profit through value-added activities, selected acquisitions and proactive asset management.
  • Divestment of non-core properties to improve the property portfolio and strengthen the company’s financial position.
  • Considering alternative property financing sources.
  • Active financing policy mitigating the rise in loan margins.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), EPRA

Certifications: LEED (application made)

Reporting Period: 2014

Environmental Metrics

Total Carbon Emissions:79,538 tCO2e/year
Scope 1 Emissions:650 tCO2e/year
Scope 2 Emissions:77,648 tCO2e/year
Scope 3 Emissions:1,240 tCO2e/year
Total Energy Consumption:247.4 GWh/year
Water Consumption:723,423 m3/year
Waste Generated:17,105 tons/year

ESG Focus Areas

  • Environment
  • Community & Companionship
  • People

Environmental Achievements

  • Reduced energy consumption by 5.7% in like-for-like shopping centres
  • Improved recycling rate by 3.1 percentage points to 88.5%
  • Reduced greenhouse gas emissions by 2.1% in like-for-like shopping centres

Social Achievements

  • Launched Citycontest for young entrepreneurs
  • Won 'Shopping centre act of the year' award in Finland
  • Completed Leadership Development Programme for supervisors

Governance Achievements

  • Upgraded credit ratings by S&P to BBB and by Moody’s to Baa2
  • Strengthened balance sheet by raising approximately EUR 400 million of new capital
  • Successfully placed a EUR 350 million 10-year Eurobond

Climate Goals & Targets

Long-term Goals:
  • Reduction of energy consumption by 10%
  • Reduction of greenhouse gas emission by 10%
Medium-term Goals:
  • Majority of the portfolio has an environmental certification by 2017
  • Recycling rate over 90%
  • Maintaining water consumption at an average level of less than 3.5 litres per visitor/year
Short-term Goals:
  • Continue to share environmental best practices
  • Increase actions and drive innovation between shopping centres
  • Promote even greater internalisation of the standards expressed in the Code of Conduct
  • Improve performance culture, engage and develop talents, promote employer image, further develop One Citycon
  • Develop indicators to better measure our social and economic impact on the community
  • Foster active information sharing among stakeholders about sustainability issues

Environmental Challenges

  • Challenging retail environment, especially in Finland
  • Weaker demand for retail premises
  • Rising operating expenses
Mitigation Strategies
  • Focus on cost control and increased leasing efforts
  • Strategy to focus on grocery-anchored urban shopping centres
  • Active shopping centre management to optimise profitability
  • Conservative financing policy with focus on long-term financing

Supply Chain Management

Responsible Procurement
  • Established Business Code of Conduct for suppliers and service providers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather conditions
Transition Risks
  • Stricter legislation on energy and emissions
Opportunities
  • Utilising renewable energy sources

Reporting Standards

Frameworks Used: GRI G3.1, EPRA

Certifications: LEED (for several properties)

Third-party Assurance: KPMG Oy AB (limited assurance for numerical environmental indicators)

Awards & Recognition

  • EPRA gold-level award in the sustainability Best Practices series
  • Green Star status in the GRESB assessment
  • 'Shopping centre act of the year' award in Finland

Reporting Period: 2016

Environmental Metrics

Total Carbon Emissions:60,295 tCO2e
Scope 1 Emissions:603 tCO2e
Scope 2 Emissions:58,124 tCO2e
Scope 3 Emissions:1,567 tCO2e
Renewable Energy Share:58%
Total Energy Consumption:333,506 MWh
Water Consumption:845,314 m3
Waste Generated:21,761 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Connectivity
  • Tenant Satisfaction and Cooperation
  • Ethical Business Conduct & Transparency
  • Energy Efficiency and Carbon Footprint
  • Health and Safety in Shopping Centres
  • Good Employer
  • Engagement with Local Communities
  • Responsible Supply Chain Management
  • Sustainable Construction and Green Buildings
  • Water Management & Waste Recycling

Environmental Achievements

  • Reduced carbon footprint by 18% compared to the previous year.
  • Achieved a 93% recycling rate, exceeding the target of 90%.
  • Increased share of green electricity to 58% (from 47% in 2015).
  • Installed geothermal heating in Jakobsberg Centrum (Sweden), expecting 65% energy savings.
  • Started installing solar panels at Iso Omena (Finland), expecting 5% solar-powered electricity.

Social Achievements

  • Improved tenant satisfaction by 2.6% in Norway and 3.9% in Finland, Sweden, and Estonia.
  • Organised community engagement events in 77% of Citycon’s shopping centres.
  • Launched a leadership forum to support leadership skills development.
  • Reviewed and redrafted company values with employee participation.

Governance Achievements

  • No corruption, fraud, or bribery cases reported.
  • Implemented Code of Conduct violation reporting line for business partners.
  • Introduced Code of Conduct and related practices to Norwegian operations.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Increase the percentage of environmentally certified properties to 80% by the end of 2017.

Environmental Challenges

  • Slight overall increase in total electricity consumption due to deregulation of shop opening hours in Finland.
  • Changes in property portfolio affecting year-over-year comparisons.
  • Operational differences in waste management across business countries.
Mitigation Strategies
  • Active electricity conservation measures.
  • Installation of user-specific water meters to reduce water consumption.
  • Workshops with tenants on improving waste handling and material recycling.
  • Web-based recycling instructions for tenants.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Code of Conduct commitment included in lease templates.
  • Code of Conduct-related survey applied in all material investment processes.
  • Code of Conduct clause in all supply agreements greater than EUR 10,000.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, EPRA Best Practice Recommendations on Sustainability Reporting, Greenhouse Gas Protocol

Certifications: BREEAM In-Use, LEED

Third-party Assurance: Ernst & Young Oy

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • IsoKristiina extension awarded Finnish shopping centre deed of the year award