Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable resource management
• Green buildings
• Community engagement
• People and business integrity

Environmental Achievements

• Reduced CO2 emissions by 8,170 tons (like-for-like)
• Achieved a 1% decrease in water consumption (like-for-like)
• Increased recycled waste by 23.5% (like-for-like)
• 51% of properties are BREEAM certified

Social Achievements

• Hosted over 30 blood donation campaigns, collecting more than 150 liters of blood
• Donated over €60,000 to various health causes
• Collected 70 tons of clothes for charity in Romania and Serbia
• 45 young adults participated in the Building Destinies program

Governance Achievements

• Implemented a Code of Ethical Conduct
• Implemented a Whistleblowing Policy
• No incidents of non-discrimination or breach of Code of Ethical Conduct were registered

Climate Goals & Targets

Environmental Challenges

• High employee turnover in a competitive CEE labor market
• Reducing carbon footprint and increasing waste recycling rate
• Managing water consumption in a growing portfolio

Mitigation Strategies

• Implemented various employee retention initiatives (flexible work schedules, wellbeing programs)
• Implemented energy efficiency measures (LED lighting, optimized HVAC)
• Implemented waste management system, awareness campaigns, and recycling initiatives
• Implemented measures for water consumption reduction (studies to use underground water, rainwater harvesting)

Supply Chain Management

Supplier Audits: Supplier risk assessment performed for any new supplier and revised periodically

Responsible Procurement

• Sustainable Procurement Policy to be implemented in 2020

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: BREEAM

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Initiatives aligned with UN SDGs through efficient resource management, green buildings, community engagement, and ethical business practices.

Sustainable Products & Innovation

• LED lighting, energy-efficient equipment, sustainable drainage systems

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Water conservation
• Waste management
• Community investment
• Health and safety
• Corporate governance

Environmental Achievements

• Reduced CO2 emissions by 20% compared to 2019
• 71% of eligible portfolio by GLA is BREEAM certified
• 40% share of renewable energy from total energy consumption
• Implemented a Green Finance Framework and issued a €500 million green bond

Social Achievements

• Created 1,500 working places during 2020 in the relevant communities
• Implemented community support programs in Romania, Serbia, Bulgaria, and Poland
• 79% of centers obtained a Safe Shopping Centre Certificate

Governance Achievements

• Achieved EPRA Gold Award for compliance with Best Practices Recommendations for financial reporting
• Improved ESG Risk Rating from Sustainalytics to 12.5/100
• Strengthened Corporate Governance Framework

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on tenant businesses and footfall
• Supply chain disruptions
• Economic slowdown in CEE region

Mitigation Strategies

• Granted rent concessions to tenants (€72 million)
• Implemented strict health and safety measures
• Secured investment-grade credit ratings
• Maintained strong liquidity (€1.2 billion)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Procurement Policy implemented

Climate-Related Risks & Opportunities

Physical Risks

• Increased risk of extreme weather events

Transition Risks

• Changes in climate and landscape
• Imposition of mitigation policies or regulation and exposure to litigation

Opportunities

• Improved operating efficiency
• Reduced operating costs
• Value gains of fixed assets
• Access to new technologies and energy sources
• Access to incentive schemes and carbon offset markets
• Increased capital availability and positive returns from low-carbon technology investments
• Reduced operational costs and exposure to future carbon policies
• Development of new products, low-emission goods and services and climate adaptation measures

Reporting Standards

Frameworks Used: GRI, EPRA BPR

Certifications: BREEAM, Safe Asset Group

Third-party Assurance: PwC Isle of Man (financial statements only)

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 15

Initiatives contribute to these goals through sustainable resource management, green buildings, community engagement, and people and business integrity

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EPRA Gold Award
• FTSE4Good Index constituent

Environmental Metrics

ESG Focus Areas

• Sustainable resource management
• Green and healthy buildings
• Community engagement
• People and business integrity

Environmental Achievements

• Reduced carbon emissions by 24% compared to 2020
• 66% share of renewable energy
• 71% of assets have BREEAM certifications
• 69% of portfolio (by GLA) has LED lighting

Social Achievements

• Launched various community engagement programs (health, education, environment)
• Supported vaccination initiatives by creating vaccination points inside shopping centers
• Collected 550 liters of blood through blood donation campaigns

Governance Achievements

• Improved ESG Risk Rating from Sustainalytics to 11.4/100 (Low Risk)
• Implemented a Green Finance Framework
• Issued green bonds and concluded a green loan

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting retail trading and tenant performance
• Higher energy costs
• Increased minimum wages impacting operational expenses
• Increased employee turnover (up to 11.2%)
• Challenges in hiring processes

Mitigation Strategies

• Granted rent concessions to tenants (€40.8 million in 2021)
• Implemented energy efficiency measures (LED lighting, cogeneration)
• Adapted value proposition and increased transparency to manage employee turnover
• Implemented various cost-saving measures

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Policy focusing on lower environmental impact, ethical sourcing, and supplier sustainability

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Changes in climate and landscape
• Natural disasters

Transition Risks

• Mitigation policies and regulations
• Investment and transition costs to low-carbon technology
• Market changes in supply chains

Opportunities

• Improved operating efficiency
• Access to new technologies and energy sources
• Development of new products and services
• Access to new markets

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive, EPRA Sustainability Best Practices Recommendations, CRREM, EU Taxonomy, TCFD

Certifications: BREEAM

UN Sustainable Development Goals

• 7
• 11
• 12
• 13

Initiatives contribute to these goals through sustainable resource management, green buildings, community engagement, and ethical practices.

Awards & Recognition

• EPRA BPR Gold Award
• EPRA SBPR Bronze Award
• GOLD Award for Best Practices in Community Involvement
• 2021 Real Estate Special Award for Zero Waste to Landfill & Carbon Neutrality Project of the Year

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Sustainable buildings
• Biodiversity
• Renewable energy
• Responsible governance

Environmental Achievements

• Reduced GHG emissions of green portfolio by 53% from 2019 to 2022
• Reduced GHG emissions of total portfolio by 47% from 2019 to 2022
• Achieved BREEAM Excellent certification for 29 buildings with a total GLA of 1,362,200 m2
• Commenced installation of solar panels across its Romanian portfolio, investing €3.4 million in 2022 and planning to install 30 more photovoltaic plants by the end of 2023

Social Achievements

• Partnerships with socially recognized organizations like the Bulgarian Red Cross, UNICEF, and SOS Children’s Villages Bulgaria
• Focus on sustainable travel options for customers and tenants, including bicycle racks, service stations, and electric car charging stations

Governance Achievements

• Established a Green Finance Committee to oversee the governance of its Green Finance Framework
• Compliance with King IV Report on Corporate Governance in South Africa, Dutch Corporate Governance code, JSE Listing Requirements, Euronext Amsterdam Rule Books, A2X guidelines, and the Dutch Civil Code
• Third-party due diligence performed to identify potential ESG risks in new assets

Climate Goals & Targets

Environmental Challenges

• Limited Scope 3 emissions data collection due to indirect emissions in the supply chain or those generated by transportation not yet being measured

Mitigation Strategies

• Accelerating Scope 3 emissions data collection through collaboration with tenants and suppliers

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ICMA Green Bond Principles 2021, LMA Green Loan Principles, Harmonized Framework for Impact Reporting, UN Sustainable Development Goals

Certifications: BREEAM

Third-party Assurance: PricewaterhouseCoopers Audit S.R.L.

UN Sustainable Development Goals

• 7
• 11
• 13

Eligible Green Projects contribute to the EU environmental objective of climate change mitigation and the achievement of certain UN Sustainable Development Goals (7, 11, 13).

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Silver Award for compliance with Best Practices Recommendations for sustainability reporting (sBPR)
• Gold Award for compliance with Best Practices Recommendations (BPR) for financial reporting
• Top 15 Sustainalytics rated Real Estate Management companies
• AAA ESG rating

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Climate target to achieve net zero carbon emissions by 2050, including energy efficiency improvements, renewable energy production and purchase.
• Reducing energy consumption (e.g. installing LED lighting in common areas, low-temperature water systems in restrooms).
• Decreasing potable water consumption.
• Segregated bins on common indoor and external areas.
• Investment in RES (on-site PV panels)

Governance Achievements

• Established a Sustainability Committee comprising Executive and non-Executive Directors to oversee the development and implementation of sustainability policies and monitor progress.

Climate Goals & Targets

Environmental Challenges

• Physical risks: heat waves, wildfires, storms, droughts, heavy precipitation, floods, landslides, heat stress, changing wind patterns, water stress.
• Transition risks: regulatory environment, regulatory compliance regarding non-financial climate-related reporting, legal liability and management accountability, cost of transitioning to low-carbon technologies, transition risk (older assets), resource efficiency and circular economy, energy prices, market valuation, insurability, unpredictable market, consumer trends and supply chain, expectations regarding climate risk management, expectations regarding non-financial reporting.

Mitigation Strategies

• Adaptation and mitigation measures for physical risks (e.g., installing cooling systems, fire-resistant materials, water management plans, improving rainwater sewage systems, flood risk assessments).
• Adaptation and mitigation measures for transition risks (e.g., regular monitoring of regulations, continuous improvement of data collection, monitoring litigation trends, integrating energy and emission reduction technologies, developing and maintaining robust documentation of climate-related risk monitoring and warning systems, regular engagement with tenants, lenders, and investors).

Supply Chain Management

Responsible Procurement

• Introducing a sustainable procurement approach with business partners, aiming to align with circular economy principles.

Climate-Related Risks & Opportunities

Physical Risks

• Heat wave
• Wildfire
• Storm
• Drought
• Heavy precipitation
• Flood
• Landslide
• Heat stress
• Changing wind patterns
• Water stress

Transition Risks

• Regulatory environment
• Regulatory compliance regarding non-financial climate-related reporting
• Legal liability and management accountability
• Cost of transitioning to low-carbon technologies
• Transition risk (older assets)
• Resource efficiency and circular economy
• Energy prices
• Market valuation
• Insurability
• Unpredictable market, consumer trends and supply chain
• Expectations regarding climate risk management
• Expectations regarding non-financial reporting

Opportunities

• Improving operating efficiency (energy, water, waste management)
• Shifting to low-emission energy sources
• Access to supportive policy incentives
• Development and/or expansion of low-emission goods and services
• Access to green financing
• Climate competitiveness – strengthening growth prospects and long-term viability

Reporting Standards

Frameworks Used: TCFD, IFRS S2