Climate Change Data

Environmental Metrics

ESG Focus Areas

• Creating value for property users
• Building a sustainable portfolio
• Attracting talent and building employee motivation and loyalty
• Governance, ethics and society

Environmental Achievements

• Reduced energy use per sq.m of buildings managed by SFL by 8.2% (2011-2014), aiming for a 15% reduction by 2017.
• Reduced water use per sq.m of buildings managed by SFL by 18% (2011-2014), aiming for a 20% reduction by 2017.
• 100% of SFL’s buildings in use are certified BREEAM In-Use.
• 90% of BREEAM In-Use certifications have a Very Good or higher rating (Parts 1, 2 and 3 combined), aiming for 100% by 2017.

Social Achievements

• Launched a review process for preventing psychosocial risks.
• Only one workplace accident occurred in 2014, resulting in zero lost time.
• Average of over 17 hours of training per employee in 2014.
• Signed a three-year agreement on gender equality in the workplace.

Governance Achievements

• Reviewed practices to combat undeclared labor.
• Implemented a collaborative platform for suppliers to submit required documentation.
• No corruption-related incidents or sanctions identified in 2014.

Climate Goals & Targets

Environmental Challenges

• Potential additional costs due to obsolete properties or insufficient energy efficiency.
• Risk of criminal sanctions if suppliers have undeclared workers.
• Risk of delays in obtaining permits due to biodiversity issues or local urban impact.
• Human resources risks – attracting talent, obsolete skills, etc.
• Risk that SFL’s CSR performance will decline if tenants do not adopt appropriate CSR objectives.

Mitigation Strategies

• Implementing a decision support system for CAPEX decisions by 2017.
• Using a collaborative platform for supplier documentation.
• Integrating energy reduction requirements into specifications for operators and building firms.
• Providing training and information on energy efficiency to operators and building firms.
• Conducting energy audits on buildings.
• Overhauling building management system (BMS) analyses.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Integrating CSR criteria into procurement policies.
• Ensuring supplier practices align with SFL’s CSR policy.
• Prioritizing local companies and contractors.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4, EPRA

Certifications: BREEAM In-Use, BREEAM Construction, HQE, LEED, BBC Effinergie Rénovation

Third-party Assurance: Deloitte & Associés

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Washington Plaza won the Offices In-Use category at the BREEAM Awards 2015.

Environmental Metrics

ESG Focus Areas

• Utility value of properties
• Green value of properties
• Social responsibility value

Environmental Achievements

• Energy used by eight buildings in the 2011 baseline scope of reporting declined by 12 kWh/sq.m or 4.7% year on year in 2015. Adjusted for occupancy and climate data, energy used by the eight buildings declined by 35 kWh/sq.m or 12.5% between 2011 and 2015.
• 97% of the asset portfolio has been certified and rated Very Good, Excellent or Outstanding in Part 1 and Part 2 of BREEAM In-Use International certification.
• Reduced water consumption in certain properties: 176 Charles de Gaulle (down 12%), Édouard VII (down 8%).
• Elimination of the last fuel-oil fired boiler, reducing greenhouse gas emissions.

Social Achievements

• Launched a program to prevent psychosocial risks and improve quality of worklife, concluding no serious psychosocial stress.
• Improved employee supplementary health insurance, reducing base contribution rate and increasing employer contribution.
• Granted free shares to 65% of the workforce.
• Improved terms of the Group Pension Savings Plan (PERCO).

Governance Achievements

• No corruption-related incidents or sanctions in 2015.
• Integrated CSR criteria into procurement policies.
• Implemented a web-based platform for supplier document submission to ensure compliance with labor laws.

Climate Goals & Targets

Environmental Challenges

• Risk of potential additional costs (obsolescence, energy efficiency, disputes with communities).
• Risk of criminal sanctions if suppliers use undocumented workers.
• Risk of delays in obtaining permits due to biodiversity issues or local urban impact.
• Human resources risks (attracting talent, skills obsolescence).

Mitigation Strategies

• Implementing master plans to further improve energy performance (revamping BMS, optimizing AHU flow rates, managing lighting, raising occupant awareness).
• Using a collaborative, web-based platform for supplier document submission.
• Stakeholder dialogue and governance system involving elected officials and local authorities.
• Active work-life balance policy, including part-time work arrangements.

Supply Chain Management

Supplier Audits: 83% of suppliers based in Greater Paris region; use of 'e-Attestation' compliance platform for tracking suppliers.

Responsible Procurement

• Integrating CSR into tender criteria and specifications for building managers and works contractors; limiting subcontracting pyramid to two levels; priority given to local companies.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4, EPRA

Certifications: BREEAM, LEED, HQE, BBC-Effinergie Rénovation

Third-party Assurance: Deloitte & Associés

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2015 BREEAM Award (Washington Plaza), 2015 SIIC Award (#cloud.paris), 2015 Eco-Construction Grand Prize (#cloud.paris), 2016 MIPIM Award (#cloud.paris)

Environmental Metrics

ESG Focus Areas

• Utility value of properties
• Green value of properties
• Social responsibility value

Environmental Achievements

• Reduced total energy use by 3% (more than 1.7 GWh savings) compared to 2015.
• Achieved a 15% like-for-like reduction in kWh/sq.m between 2011 and 2016 (a year ahead of target).
• Increased recycling rate to over 63%.
• Reduced climate-adjusted carbon emissions intensity to 21.3 kgCO2e/sq.m/year (close to 2017 target).

Social Achievements

• 96% tenant satisfaction rate.
• Zero workplace accidents in 2016.
• Implemented a gender equality agreement.
• Contributed €15,000 to ADAPT, a non-profit organization supporting employment opportunities for people with disabilities.

Governance Achievements

• No corruption-related incidents or sanctions in 2016.
• Implemented a code of conduct covering professional integrity, fraud prevention, non-discrimination, and tax compliance.
• Annual review of ESG performance with the Board of Directors and Audit Committee.

Climate Goals & Targets

Environmental Challenges

• Reducing energy use in private office areas of multi-tenant properties and single-tenant buildings.
• Managing food waste in intercompany restaurants.
• Potential additional costs related to obsolescence, energy efficiency, and disputes with neighboring communities.
• Risk of criminal sanctions if suppliers use undocumented workers.

Mitigation Strategies

• Developing a three-year energy performance improvement master plan for each building.
• Working with tenants and third-party managers to set up appropriate reporting systems for energy use.
• Implementing a clean worksite charter for waste management and material selection.
• Using a web-based platform for suppliers to submit employee and tax-related documentation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Integrating CSR principles into tender criteria and specifications for building managers and works contractors.
• Prioritizing local companies and contractors (86% of suppliers based in Greater Paris region in 2016).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory risks encouraging investment in reducing properties’ carbon footprint.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 (core option), EPRA recommendations, Grenelle II Act

Certifications: BREEAM, LEED, HQE, BBC-Effinergie Rénovation

Third-party Assurance: Deloitte & Associés

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• BREEAM Award in the “Corporate Investment in Responsible Real Estate” category (2017)
• MIPIM Award for Best Office & Business Development (#cloud.paris project)

Environmental Metrics

ESG Focus Areas

• Utility value
• Green value
• Social value

Environmental Achievements

• Energy use intensity reduced by 16.3% between 2011 and 2017 on a comparable portfolio basis.
• Water use intensity reduced by 20% in 2017 compared to the 2011 baseline.
• Carbon emissions intensity declined to 19.3 kg CO2e/sq.m/year from 21.3 kg CO2e/sq.m/year on a like-for-like basis.
• Recycling rate of 42%.

Social Achievements

• 92% tenant satisfaction (2017 tenant satisfaction survey).
• No workplace accidents in 2017.
• Signed a QWE agreement with employee representatives, including initiatives for new hire induction, periodic employee meetings, and comfort/well-being improvements.
• 3.60% of total payroll allocated to training programs in 2017 (nearly 1,870 hours).

Governance Achievements

• Compliance with the specific code of ethics for SIICs (real estate investment trusts).
• No cases of bribery in 2017.
• No political donations made.

Climate Goals & Targets

Environmental Challenges

• Developing skills and attracting and retaining talent.
• Managing risks of potential additional costs (obsolescence, energy efficiency, disputes with communities), criminal sanctions from supplier non-compliance, permit delays, human resources issues, and CSR performance deterioration if tenants don't embrace commitment.
• Reducing food waste in buildings with intercompany staff restaurants.

Mitigation Strategies

• Spending over 2% of total payroll on training each year.
• Implementing robust control systems to prevent unfair or illegal business practices.
• Working with tenants and outside managers to set up appropriate reporting systems for energy use in buildings not managed directly by SFL.
• Seeking assurance that Article 102 of France’s Energy Transition for Green Growth Act is complied with in buildings with intercompany staff restaurants.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Integrating CSR criteria in supplier selection
• Updating operator and contractor specifications to include CSR performance indicators
• Limiting sub-contracting pyramid to a maximum of two levels
• Prioritizing local companies and contractors (86% in Greater Paris region in 2017)

Climate-Related Risks & Opportunities

Physical Risks

• Exceptional weather events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 (core option), EPRA

Certifications: BREEAM In-Use, LEED, HQE, BBC Effinergie Rénovation

Third-party Assurance: Deloitte & Associés

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• GRESB Green Star performer (ranked 33rd among 823 companies worldwide in 2017)

Environmental Metrics

ESG Focus Areas

• Revitalise and reinvent the city
• Offer our users comfortable, flexible, convivial working environments
• Project ourselves into a low-carbon future
• Encourage engagement by our employees and partners

Environmental Achievements

• Like-for-like reductions in energy use intensity and carbon intensity exceeded targets, with declines of 31% and 46% respectively from 2011 to 2020.
• More than 99.5% of demolition waste from the Biome and 83 Marceau projects was diverted from landfill.

Social Achievements

• SFL office user satisfaction improved steadily since 2013, with 94% of users satisfied or very satisfied with their experience in an SFL office.
• Work-from-home arrangements for SFL employees were up and running in less than 48 hours.

Governance Achievements

• All reporting processes are aligned with the strictest standards. SFL regularly responds to surveys from GRESB and other ESG rating agencies.
• A new three-year gender equality in the workplace agreement was negotiated and signed.

Climate Goals & Targets

Environmental Challenges

• Risks related to a building’s integration into the urban landscape (objections, obstacles, permit delays).
• A property’s location and accessibility impacting attractiveness and occupancy.
• Improving building sustainability to limit climate change and obsolescence risks.
• Highly competitive Paris office market requiring value delivery to attract tenants.
• Environmental transition risks (regulatory tightening, stakeholder expectations).
• Difficulties hiring for strategic positions if employer appeal declines.
• Ethics violations leading to legal/financial consequences and reputational damage.

Mitigation Strategies

• Focus on urban development projects seamlessly integrated into neighborhoods, perfectly accessible and resilient.
• Constantly enhancing building amenities, flexibility, and service levels.
• Implementing a plan to drive continuous improvement in the environmental performance of assets.
• Competitive, motivating compensation packages and policies governing skills development, quality of worklife, and gender equality.
• Inclusion of social and environmental criteria across the value chain.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable procurement policy applied across the business.
• CSR criteria integrated into supplier selection.
• Operator and contractor specifications include CSR performance indicators.
• Clauses encouraging local hiring in contracts with site contractors.

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Heat waves
• Storms

Transition Risks

• Regulatory changes
• Higher stakeholder expectations

Opportunities

• Improving energy efficiency
• Transitioning to lower carbon energy sources

Reporting Standards

Frameworks Used: GRI, EPRA

Certifications: BREEAM, LEED, HQE, BBCA, BiodiverCity®

Third-party Assurance: Deloitte & Associés (limited assurance)

UN Sustainable Development Goals

• 3
• 5
• 7
• 9
• 10
• 11
• 12
• 13
• 15
• 16

Initiatives contribute to these goals through the four pillars.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• BREEAM Awards (Office Refurbishment & Fit-Out Award, Corporate Investment in Responsible Real Estate Award)
• GRESB Green Star designation (nine years in a row)
• Two EPRA Gold Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Water Conservation
• Biodiversity
• Well-being
• Governance

Environmental Achievements

• 77% carbon footprint reduction vs 2015 baseline (Scope 1 & 2); 2030 target achieved ahead of schedule
• 93% of Colonial Group’s office portfolio was LEED or BREEAM certified in H1 2021
• Significant reduction in energy consumption and GHG emissions (specific figures provided in the report for SFL)

Social Achievements

• Well-being policy implemented to maximize user well-being and health (e.g., Francisca Delgado asset WELL certified)
• Global Safe Site certification for compliance with COVID-19 safety measures
• SFL obtained RESTART certification from Bureau Veritas

Governance Achievements

• Strong ESG governance model with leadership at the top level (Board and CEO)
• ESG integrated into corporate strategy with 5-year KPIs and integrated business plan
• ESG Committee at C-level ensures momentum on operational ESG strategy implementation

Climate Goals & Targets

Environmental Challenges

• Balancing decarbonization with economic considerations in construction (e.g., higher costs of wood construction)

Mitigation Strategies

• Cost-optimal life-cycle studies for building projects
• Exploring innovative materials and construction methods (e.g., wood construction)

Supply Chain Management

Responsible Procurement

• Use of low-carbon building materials
• Focus on material recovery in renovations

Climate-Related Risks & Opportunities

Physical Risks

• Not explicitly mentioned, but implied through focus on climate change mitigation

Transition Risks

• Not explicitly mentioned, but implied through focus on climate change mitigation

Opportunities

• Development of energy-efficient buildings
• Green financing opportunities

Reporting Standards

Frameworks Used: GRESB, SBTi, TCFD, Green Bond Principles 2021 (GBP), Green Loan Principles 2021 (GLP)

Certifications: LEED, BREEAM, HQE, BBC-Effinergie, WELL, RESTART

Third-party Assurance: Vigeo Eiris (V.E), PwC

UN Sustainable Development Goals

• SDG 7
• SDG 13

Eligible projects under Colonial’s Green Financing Framework are related to SDG 7 (Affordable and clean energy) and SDG 13 (Climate Action).

Sustainable Products & Innovation

• Net-zero office building (Miguel Angel 23)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Obtained a rating of 90 out of 100 in the GRESB index 2022 and 96/100 in the Development Benchmark Report.
• Obtained a rating of A from CDP 2022, confirming its leadership in decarbonization.
• Obtained a high-end sector rating from Moody’s ESG Solutions, placed in the top 3% of the 4,902 rated companies.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG clauses in all contracts with significant suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Green Bond Principles 2021

Certifications: EPRA Gold sBPR

Third-party Assurance: PricewaterhouseCoopers Auditores, S.L.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EPRA Gold sBPR
• GRESB index 2022 rating of 90/100 and 96/100
• CDP 2022 rating of A
• Moody’s ESG Solutions high-end sector rating (top 3% of 4,902 rated companies)
• Sustainalytics ESG risk rating of 9.7 (top 31 of 459 listed real estate companies)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved a 68% reduction in carbon intensity since 2018, reaching 6 kgCO2e/sqm.
• Obtained a rating of A from CDP 2022, confirming its leadership in decarbonization.

Social Achievements

• Not disclosed

Governance Achievements

• Obtained the EPRA Gold sBPR rating for the 8th consecutive year.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG clauses in all contracts with significant suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Green Bond Principles 2021

Certifications: EPRA Gold sBPR

Third-party Assurance: PricewaterhouseCoopers Auditores, S.L.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EPRA Gold sBPR
• GRESB index 2023 rating of 94/100 (Standing Investments) and 98/100 (Development)
• CDP 2022 rating of A
• Sustainalytics ESG risk rating of 6.2