Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon footprint (embodied and operational)
• Employee Wellbeing
• Responsible Business Conduct
• Water Consumption and Savings
• Community Engagement
• Ethics and Anti-corruption
• Building Material Usage
• Safety and Health in the Supply Chain
• Transparent and Reliable Financial Reporting
• Environmental Impact Compliance and Regulation
• Waste Management and Reduction
• Renewable Energy
• Security and Accessibility
• Connection to Sustainable Transportation

Environmental Achievements

• Avoided 1,018,377 tons CO2e through Energix's renewable energy generation in 2022.
• Generated 4.98 million kWh from self-production of renewable energy on the rooftops of the company’s properties.
• 98% of real estate properties are accessible by public transport.
• 42% of real estate assets are certified LEED.
• Amot achieved over 50% water savings at leading properties through reuse of water for irrigation and sanitation in 2021.
• Carr decreased their buildings' water consumption by 41% between 2016 to 2020.
• Energix saved 38,742 megaliters of water through renewable energy production relative to other forms of energy production in 2021.

Social Achievements

• Long-standing partnership with 10+ non-profits around the globe.
• Total donations across Alony Hetz and the Group in 2022: $2.1 million.
• 35% of all the Group's employees are women.
• 39% of the Group's mid-level management are women.
• Focus across the group on ensuring safety in the supply chain.
• Brockton Everlast designed a program to mentor disadvantaged youth and help them enter the real estate industry.

Governance Achievements

• High board member independence (57%).
• Board meeting attendance rate of 94%.
• Three director committees with 100% attendance rate.
• No cases of sexual harassment or whistleblowing across the Group's entities in 2022.

Climate Goals & Targets

Environmental Challenges

• Measuring energy consumption under a wide variety of operational and ownership models.
• Limited availability of water and waste data.

Mitigation Strategies

• Working with investee companies to increase and enhance measuring practices.
• Evaluating mechanisms to increase overall data coverage and drive consistency in reporting across the Group's companies.

Supply Chain Management

Responsible Procurement

• Engaging with contractors who are members of the Israel Builder Association's highest level of "safety stars".

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Renewable energy generation

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 4: Quality Education
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action
• Goal 12: Responsible Consumption and Production
• Goal 15: Life on Land
• Goal 17: Partnerships for the Goals

The Group's business activities and operations in real estate development and renewable energy generation promote these SDGs.

Environmental Metrics

ESG Focus Areas

• Renewable Energies

Environmental Achievements

• Completion of construction of the One Congress tower (75% owned by Carr) with an area of 1 million sq.ft. As of the date of publication of the report, the fully leased tower is in the occupancy stage.
• Engagement in financing transactions in the amount of over NIS 2.4 billion – Of this amount, approx. NIS 1.9 billion is in respect of an engagement in a series of financing transactions and tax partner investment with an international bank that specializes in the financing of photovoltaic projects in the United States with a total capacity of approx. 416 MWp in Virginia and Pennsylvania, which are in the midst of the construction stage

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• The downward trend in demand for office space continues, including the trend of shortening rental periods while reducing office space in new leases and when renewing existing ones.
• The worsening of the credit crunch (with emphasis on the United States office sector) and the increase in the price of money around the world led to a further reduction in the volume of transactions, a substantial decrease in construction starts, an increase in discount rates which resulted in a decrease in value and an increase in the number of cases of properties being handed over to lenders in non-recourse loans.
• The Israeli Druze community’s opposition to the project’s construction (which is mainly based on claims unrelated to the project, the construction work is expected to extend beyond the original schedules.

Mitigation Strategies

• BE is working to locate a strategic investor that will join, as a non-controlling interest, for its operations in that area.
• Regarding a non-recourse loan in the amount of USD 134 million that is due in September 2023, Carr is negotiating to extend the loan agreement under new conditions or to hand over the property to the lenders.
• Regarding a loan in the amount of GBP 63 million that is due in September 2023, BE is in advanced negotiations for the receipt of a new long-term loan.

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: IAS 34

Certifications: Null

Third-party Assurance: Brightman Almagor Zohar & Co. (Deloitte)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Renewable Energies

Climate Goals & Targets

Environmental Challenges

• Downward trend in demand for office space due to global economic slowdown, transition to hybrid work, and growth of flexible office sector.
• High price of money and credit crunch in the US and Europe leading to reduced transaction volume and decreased value of office buildings.
• Increased proportion of unpaid bonds in the CMBS market.
• Need for property owners to inject new equity for debt repayment and building investments.
• High vacancy rates in the US office sector.
• Violation of financial covenants in interest coverage ratio in the UK.
• Low leasing activity of offices in London.
• War in Israel affecting economic parameters and project timelines.

Mitigation Strategies

• Amot's purchase of land for office tower construction in Tel Aviv.
• Amot's debt raising through bond issuance and refinancing agreements.
• Carr's transfer of control of two entities with excess liabilities to lender and lessor.
• Energix's engagement in a memorandum of understanding for acquisition of a project backlog in the US.
• Energix's acquisition of 2 projects in Pennsylvania.
• Energix's completion of a financing transaction and investment of a tax partner in E3 projects.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IAS 34

Third-party Assurance: Brightman Almagor Zohar & Co. (Deloitte Global Network)