Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Responsible Sourcing
• Community Engagement
• Human Rights
• Governance

Environmental Achievements

• Achieved a 4-star GRESB rating (83/100 points), exceeding the 2-year goal of a 3-star rating.
• Reduced portfolio energy consumption by 11% compared to 2020 and energy intensity from 212 kWh/m² to 190 kWh/m².
• Reduced portfolio GHG emissions by 27% in 2022, reaching 9,013 tCO2e.
• 100% of new leases included green lease clauses in 2021 and 2022; green clauses also included in existing lease agreements (85% of current office portfolio).

Social Achievements

• Organized wellness seminars at Europa Shopping Centre focusing on mental health and well-being.
• Organized a community Family Day at Meraki Office Home and Domus PRO retail park.
• Conducted a human rights assessment including gender equality of main partners and shareholders.

Governance Achievements

• Incorporated minimum safeguards referred to in EU Taxonomy (OECD Guidelines for Multinational Enterprises and UN Guiding Principles on Business and Human Rights) into operations.
• Completed SFDR Article 8 disclosure and SFDR Stage I disclosures.
• Conducted EU Taxonomy alignment calculation, determining 8% of the portfolio aligns with climate change mitigation criteria.

Climate Goals & Targets

Environmental Challenges

• Energy crisis in the Baltics (Q3 and Q4 2022) leading to increased energy prices.
• Difficulty in collecting complete and transparent waste data from waste management companies.
• Low tenant occupancy in offices and difficult situation in retail due to Covid-19 restrictions and energy crisis.

Mitigation Strategies

• Implemented energy optimization strategies in retail and office buildings, reducing energy consumption by 9-15% in retail properties.
• Adjusted operating hours in select retail assets to optimize energy efficiency.
• Implemented drastic energy efficiency measures across retail and office assets, including shortening shopping mall working hours and optimizing lighting and heating systems.
• Actively engaged with tenants to encourage energy-saving practices.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG questionnaire for partners to encourage best practices and partnerships with sustainable and responsible partners.

Climate-Related Risks & Opportunities

Physical Risks

• Stormwater flooding
• Flooding due to sea level rise
• Increased need for cooling due to rising temperatures
• Heavy snowfall
• Increased rainfall and humidity stressing building facades
• Dry seasons increasing water stress

Transition Risks

• Rapidly increasing regulation and reporting requirements

Opportunities

• Reduced need for heating

Reporting Standards

Frameworks Used: GRI, GRESB, UN PRI, EU Taxonomy, SFDR

Certifications: BREEAM In-Use, BREEAM New Construction

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 5 (Gender Equality)
• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 10 (Reduced Inequalities)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 16 (Peace, Justice and Strong Institutions)

ESG targets are grounded in the UN SDGs and their sub-targets.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Energy Efficiency
• Human Rights
• Tenant Engagement
• Community Engagement
• Governance

Environmental Achievements

• Reduced absolute GHG emissions by 17% compared to 2022 (primarily due to property sales, but also asset-level improvements)
• 91% of the Fund's electricity came from renewable sources in 2023
• Achieved 100% BREEAM certification coverage across the entire portfolio

Social Achievements

• Implemented Stop Before You Stop campaign to raise awareness of burnout
• Celebrated Employee Appreciation Day in cooperation with nearby offices
• Supported initiatives of the Lithuanian Red Cross
• Implemented smart bike parking infrastructure at Galerija Centrs

Governance Achievements

• Maintained a 4-star GRESB evaluation for the second consecutive year (82 points)
• Improved Public Disclosure Assessment rating to A (91 points out of 100)
• Enhanced minimum safeguards requirements in operations and processes, including the tendering process

Climate Goals & Targets

Environmental Challenges

• Data coverage challenges in GHG emissions, energy, and water consumption calculations
• Difficulties in data standardization for district heating emission factors
• Challenges in accurately tracking waste data and its final destination
• Indirect human rights risks related to stakeholders' activities

Mitigation Strategies

• Implementing strategies to improve data accuracy and quality
• Utilizing a third-party ESG data platform provider's carbon calculator tool
• Investigating market-based GHG emission calculations
• Working towards 100% data coverage on electricity and heating consumption
• Conducting human rights risk assessments and monitoring risks

Supply Chain Management

Responsible Procurement

• Inclusion of minimum safeguards and ESG initiatives in tendering process for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heat stress
• Heavy snowfall
• Dry seasons

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, GRESB, EU Taxonomy, SFDR, UN PRI, OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights

Certifications: BREEAM

UN Sustainable Development Goals

• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 16

Initiatives contribute to these goals through various actions related to gender equality, clean water and sanitation, affordable and clean energy, decent work and economic growth, reduced inequalities, sustainable cities and communities, responsible consumption and production, climate action, and peace, justice and strong institutions.

Awards & Recognition

• EPRA Gold awards for adoption of best practice recommendations (2021, 2022, 2023)