Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Governance

Environmental Achievements

• Implementation of sustainable development and environmental risk management at the center of its organization. Strict compliance with applicable standards relating to asbestos, legionella, soil pollution, and public health concerns.
• Working on technical analysis of assets by collecting consumption data and identifying action plans to improve energy and environmental performance of buildings. Scheduled refurbishment programs to improve energy and environmental performance.

Governance Achievements

• Transformation from a public limited company to a limited partnership with shares (société en commandite par actions) to become a fully commercial company and establish its own management body.
• Implementation of a governance system with independent members on the Supervisory Board and specialized committees (including an Audit Committee).

Climate Goals & Targets

Environmental Challenges

• Risks linked to the economic environment and commercial real estate market (changes in economic climate, household consumption, demand for retail premises, occupancy rates, tenant ability to pay rent).
• Risks linked to the COVID-19 pandemic (temporary administrative closures of shops, rent waivers, staggered payments).
• Risks linked to the competitive landscape and the rise of e-commerce (competition from retail premises on the outskirts of towns, large regional shopping centers, and the impact of e-commerce on demand for local commercial spaces).
• Risks linked to the estimated value of assets (external and internal factors affecting valuation, potential impairment of investment properties, non-compliance with financing ratios, decrease in security value).
• Risks linked to acquisitions (over-valuation of assets, unanticipated negative changes in marketability, inaccurate estimates of expenditures, hidden defects, disagreements with vendors).
• Risks linked to tenant insolvency (delays or defaults in rent payments, financial difficulties affecting tenants).
• Risks related to SELECTIRENTE's legal form, Articles of Association, and organization (control by Sofidy, Tikehau Capital, etc., potential difficulties in changing control without agreement of Tikehau Capital).
• Tax risk linked to the status of French Listed Real Estate Investment Company (SIIC) (non-compliance with conditions and obligations, exceeding the threshold of 60% of share capital or voting rights).
• Risks linked to the regulatory environment of leases and their non-renewal (restrictive legislation on commercial leases, potential rent falling below market rent, risks of non-renewal, regulatory changes).
• Regulatory risk linked to the ownership of commercial real estate assets (compliance with regulations on anti-money laundering, commercial urban planning, urban planning, construction, public health, environment, safety, and commercial leases).
• Risks linked to compliance with laws and regulations relating to the environment and public health (environmental and public health laws and regulations, potential additional expenses due to stricter standards, risks of asbestos, lead, legionella, soil pollution, flooding, or collapse).
• Risks linked to interest rate levels (increase in interest rates affecting portfolio valuation, results, and cost of financing future investments).
• Liquidity risk (access to financial resources, potential limitations on acquisition policy).
• Climate risks (increase in extreme weather events, disruption of business continuity, deterioration of real estate assets, rising temperatures affecting consumer habits and mobility).

Mitigation Strategies

• Quality of the Company's portfolio, predominantly made up of commercial assets in Paris city center and major regional metropolises, and its wide diversification in terms of the types of businesses operated by its tenants.
• Flexibility and granting of rent waivers and staggered payment measures to tenants facing temporary administrative closures.
• High degree of granularity in its portfolio and significant pooling of its rental risk.
• Solid financial position based on available cash.
• Selection of assets in prime locations to mitigate vacancy risk.
• Analysis carried out by the asset management company (Sofidy) to analyze risks associated with acquisitions, adjust prices, and put in place guarantees.
• Service agreement with Sofidy for advice and assistance regarding investment, asset enhancement, and real estate management.
• Half-yearly valuation of the portfolio by an independent real estate appraiser.
• Diversification policy to limit the individual weight of each tenant in its revenue.
• Governance system with independent members on the Supervisory Board and specialized committees.
• Regular monitoring of regulatory obligations linked to the ownership and management of the Company's real estate assets.
• Regular monitoring of the Company's environmental and public health obligations.
• Active management of financial debt through regular refinancing.
• Wide diversity of the Company's portfolio to minimize risk.
• Implementation of a risk mapping process to identify, analyze, and rank the Company's exposure to risks.

Supply Chain Management

Responsible Procurement

• Clauses concerning the fight against illegal employment, compliance with environmental standards, and subcontractor insurance and guarantees in contracts for renovation works.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heat waves, snowfall, flooding)

Environmental Metrics

ESG Focus Areas

• Economic development of city centers
• Environmentally-friendly business practices
• ESG integration into governance

Environmental Achievements

• Carried out an annual carbon assessment on 100% of assets, covering three scopes of emissions.
• 99% of assets located within 500 meters of public transport or soft mobility solutions.
• Eco-guides appended to 100% of new leases and lease renewals.

Social Achievements

• Maintained over 95% of assets as local shops.
• 56% of leases signed for tenants in activities contributing or particularly contributing to society.
• Implemented a Stakeholder Engagement Policy to collaborate with internal and external stakeholders on ESG issues.

Governance Achievements

• 100% of SELECTIRENTE Gestion employees trained in ESG issues.
• 100% of employees' variable remuneration indexed to ESG criteria.
• ESG risk mapping carried out and updated annually.

Climate Goals & Targets

Environmental Challenges

• Transition and physical risks associated with climate change.
• Improving the quality of waste sorting and sustainable water management.
• Reducing greenhouse gas emissions and energy consumption.

Mitigation Strategies

• Annual ESG risk mapping using the TCFD framework.
• Implementation of an exclusion policy for tenants whose activities do not comply with ESG criteria.
• Partnership with Deepki, CBRE, and Wild Trees to improve energy performance.
• Distribution of eco-guides to tenants.

Supply Chain Management

Responsible Procurement

• Responsible Suppliers Charter

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• EPRA BPR Gold Award (September 2022)

Environmental Metrics

ESG Focus Areas

• Economic development of city centers
• Environmentally conscious activity
• ESG integration into governance policy

Environmental Achievements

• Achieved a 20 kgCO2 eq/m2 greenhouse gas emission level (14% real data, 86% estimated)
• Energy intensity of 275 kWhEF/m²
• 100% of tenants sensitized via eco-guides on waste sorting and sustainable water management
• Annexed environmental addendum to 100% of new leases

Social Achievements

• 97.3% of assets under management are local businesses
• 57% of leases signed are for businesses considered contributors or significant contributors to society
• 100% of Selectirente Gestion employees received ESG training
• Part of variable compensation for 100% of Selectirente Gestion employees indexed to ESG criteria

Governance Achievements

• Annual ESG risk mapping conducted
• 100% of assets analyzed during pre-investment (11 criteria) and acquisition (45 criteria) phases using an ESG grid
• Exclusion policy implemented for tenant selection

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition)
• Data limitations in collecting real-time energy consumption data from tenants

Mitigation Strategies

• Annual climate risk analysis using Bat'adapt/R4RE tool
• Implementation of 'green lease' clauses to improve transparency on energy consumption
• Partnerships with Deepki, CBRE, and Wild Trees for data collection and analysis
• Method of estimation for missing data using benchmark tool

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Charter

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, heat waves, clay swelling and shrinkage

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: EPRA Sustainability Best Practices Recommendation

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EPRA BPR Gold Award (2022 and 2023)

Environmental Metrics

ESG Focus Areas

• Climate
• Energy
• Data Collection

Environmental Achievements

• Concluded a €80M refinancing converted into a Sustainability Linked Loan (SLL) in October 2024, indexed to three ESG criteria (climate change adaptation, energy consumption reduction, and increased data collection on energy performance).

Governance Achievements

• Received an EPRA sBPR Bronze Award for the quality of its extra-financial communication on sustainable development and a “Most Improved Award” for a 45% score increase compared to 2023. Received a BPR Gold Award for the third consecutive year for financial information quality.

Climate Goals & Targets

Environmental Challenges

• Slight decrease in turnover (-1.9%) due to strategic asset disposals and higher vacancy rate (-2.7%) including procedures collective (-2.2%).
• Decrease in occupancy rate due to bankruptcies of independent tenants.

Mitigation Strategies

• Successfully implemented 35 actions in property management (relocations, renewals, and lease disposals) resulting in a 0.8% increase in rents on French properties.
• Relocated 12 out of 28 assets left vacant following legal liquidations, with a 20% increase in annual rent.
• Ongoing negotiations for the remaining vacant assets.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• EPRA sBPR Bronze Award
• EPRA Most Improved Award
• EPRA BPR Gold Award