Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Decarbonization
• Energy Efficiency
• Water Conservation
• Waste Management
• Circular Economy
• Diversity & Inclusion
• Corporate Governance
• Human Capital
• Stakeholder Engagement
• Supply Chain Sustainability

Environmental Achievements

• Reduced GHG emissions intensity (Scopes 1 & 2) by 50% (like-for-like) compared to 2019
• Reduced energy intensity by 19% (like-for-like) compared to 2019
• Reduced water consumption by 27% (like-for-like) compared to 2019
• Increased recycled/reused waste to 94% (like-for-like) compared to 84% in 2019
• 93% of the office portfolio has LEED or BREEAM energy certificates

Social Achievements

• Launched the "Colonial Cares about You" employee well-being program
• Achieved a 92% participation rate in the Great Place to Work survey, resulting in "Great Place to Work" certification
• Developed the first Equality Plan and established an Equality Committee

Governance Achievements

• Established a Sustainability Commission with five members of the Board of Directors
• Implemented a new remuneration plan for the Board of Directors linking variable compensation to ESG progress
• Increased the percentage of women on the Board of Directors to 27%

Climate Goals & Targets

Environmental Challenges

• Market risks associated with changing client demands and property cycle fluctuations
• Economic risks due to political and macroeconomic uncertainty
• Financial risks related to liquidity and cost of financing, and client insolvency
• ESG risks from climate change, extraordinary events, and human capital management
• Supply chain disruptions

Mitigation Strategies

• Proactive monitoring of market trends and client needs
• Focus on prime assets in high-growth areas
• Diversified client portfolio and robust financial structure
• Comprehensive risk management framework and business continuity plan
• ESG integration into operations and supply chain management
• Investment in innovation and technology

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG criteria for supplier selection
• Sustainable procurement of materials
• Preference for local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Water scarcity

Transition Risks

• Increased regulation and taxation on emissions
• Changes in building codes

Opportunities

• Development of energy-efficient products and services
• Investment in renewable energy technologies

Reporting Standards

Frameworks Used: GRI, EPRA sBPR, TCFD, SBTi, CDP

Certifications: LEED, BREEAM, HQE, BBCA, Global Safe Site, WELL

Third-party Assurance: PwC

UN Sustainable Development Goals

• SDG 3 (Health and Well-being)
• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)
• SDG 4 (Quality Education)
• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 10 (Reduced Inequalities)

Colonial's initiatives contribute to these SDGs through various environmental, social, and governance programs.

Sustainable Products & Innovation

• WittyWood building (first all-wood office building in Spain)

Awards & Recognition

• GRESB 2020 Rating of 90 points
• CDP 2020 Rating of A-
• EPRA Gold sBPR rating for the 5th consecutive year
• Vigeo Eiris A1 rating
• Sustainalytics ESG risk rating of 10.5
• MSCI ESG rating of A

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Climate Change Mitigation
• Energy Efficiency
• Customer Relations and Satisfaction
• Ethics and Transparency
• Sustainable Construction
• Sustainable Investment
• Attractive Product

Environmental Achievements

• Reduced GHG emissions intensity (Scopes 1 & 2) by 32% LFL 21/19 (+29% LFL 21/20)
• 95% of assets with energy certification
• 70% green energy supply
• Reduced portfolio’s like-for-like carbon footprint intensity for Scopes 1 and 2 by 56% from 2018
• GHG emissions (Scopes 1 and 2) of 9 kgCO2/sqm, LFL reduction of –27% compared to 2019
• Energy consumption intensity of 216 kWh/sqm, reduction of –3% across the portfolio compared to 2019

Social Achievements

• Launched equality plan and constituted Equality Committee
• Improved employee performance appraisal system
• Colonial Takes Care of You program promotes employee well-being
• 82% of client portfolio associated with Colonial for more than five years
• Tenant satisfaction surveys to meet tenant needs
• Bureau Veritas Global Safe Site certification
• 0 incidents recorded for compliance with health and safety regulations

Governance Achievements

• 27% women on the board
• Conversion of all bonds to “green bonds”, the 1st and only company in the IBEX35
• Established Code of Ethics
• Implemented Anti-Corruption Policy
• New long-term remuneration plan for the Board
• Evaluation of the Board’s performance by an independent third party
• Reviewing and updating of the Anti-Corruption Policy

Climate Goals & Targets

Environmental Challenges

• New trends in the business model (remote working, flexible spaces)
• Fluctuation of the real estate cycle
• Political and macroeconomic uncertainty
• Liquidity and cost of funding
• Quality of the customer portfolio
• Effects of climate change
• Crises - Extraordinary events
• Investment strategy and profitability
• Lease management
• Financial structures
• IT system failure and cybersecurity
• Human Capital
• Damage to the environment

Mitigation Strategies

• Internal committee for analyzing and monitoring new trends; market research; investment in innovation and digitalization; customer satisfaction questionnaires
• Periodic analysis of portfolio; concentration in prime areas; research of off-market operations; monitoring of real estate market
• Monitoring of macroeconomic data; sensitivity testing of business plan; analysis of impacts of new regulations
• Access to multiple funding sources; monitoring of liquidity and interest rates; roadshows with financial institutions
• Diversified client portfolio; analysis and monitoring of client concentration; solvency analysis for new customers
• Climate resilience in asset designs; contingency and emergency plans
• Business Continuity Plan; definition of roles and responsibilities of emergency teams
• Alignment of investment plan with risk and return; analysis of potential transactions by Investment Committee
• Analysis of commercial transactions; recruitment of commercial agents; customer satisfaction surveys
• Monthly analysis of indebtedness; active Liability Management; maintaining high credit rating
• Outsourced DPC server; system updates and patching; regular cybersecurity diagnostic tests
• Headhunting; competitive salaries and benefits; personalized career development plans; training plan
• Maintenance plan and improvements; LEED and BREEAM certificates; Climate Change Policy; biodiversity policies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG criteria in supplier selection
• Adherence to Colonial’s CSR policy
• Local sourcing
• Health and safety requirements
• Compliance with ILO conventions

Climate-Related Risks & Opportunities

Physical Risks

• Storms
• Heat waves
• Flooding
• Drought
• Increased average temperatures

Transition Risks

• Regulatory changes (EU emissions trading system, CSRD, EU Green Taxonomy)
• Market shifts (client demand for sustainable spaces, raw material price increases)
• Reputational risks (difficulty in accessing financing, loss of competitiveness)

Opportunities

• Energy efficiency measures (reducing operating costs)
• Renewable energy sources (reducing emissions, attracting investors and customers)
• Reuse and recycling of materials (reducing costs, embodied carbon)
• Demonstrating resilience to extreme weather (reputational and financial benefits)

Reporting Standards

Frameworks Used: GRI, EPRA, TCFD, UNGC, SBTi

Certifications: LEED, BREEAM, HQE, WELL, ISO 14001, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7
• SDG 13
• SDG 15

Initiatives contribute to affordable and clean energy, climate action, and life on land.

Sustainable Products & Innovation

• WittyWood project (first all-wood office building in Spain)

Awards & Recognition

• CDP A rating
• GRESB 94-point rating
• Sustainalytics ESG Industry Top Rated and ESG Regional Top Rated for 2022
• MSCI ESG A rating
• FTSE4Good 4/5 rating
• EPRA Gold sBPR rating

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 (7 consecutive years)