Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Seven out of eight office and hotel buildings have existing certificates in DGNB Platin, DGNB Gold or LEED Gold. For future acquisitions the target is a green building certification at least with level “Gold”.

Social Achievements

• Not disclosed

Governance Achievements

• Developed a sustainability strategy guided by ESRS (European Sustainability Reporting Standards) and the 1.5°C Paris agreement, via the real estate decarbonisation standard CRREM and the Science Based Target initiative (SBTi).

Climate Goals & Targets

Environmental Challenges

• High construction and energy costs, historic high inflation, and massive increases in interest rates.
• Supply chain disruptions
• Shortage of qualified staff at reasonable wages in the hotel sector.

Mitigation Strategies

• Strategic decision to sell the Russian portfolio to strengthen business stability.
• Focus on high-quality properties in strong economies in prime locations in Europe.
• Active asset management with strong local teams.
• Developing alternative sourcing strategies (implied)
• Long-term leases with tenants with strong credit ratings.
• Implementing ESG requirements to cut operating costs and streamline reporting processes.
• Proactive property management (e.g., long-term supply contracts for electricity and heating).

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: ESRS (European Sustainability Reporting Standards), CRREM, SBTi (Science Based Target initiative)

Certifications: DGNB Platinum, DGNB Gold, LEED Gold

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Transitioned to green electricity for all buildings.
• Seven out of eight office and hotel buildings have DGNB Platinum, DGNB Gold, or LEED Gold certifications.

Social Achievements

• Actively engaging with tenants to ensure satisfaction and raise awareness of sustainable practices.
• Prioritizing employee well-being, security, and equal treatment.

Governance Achievements

• Developed a code of conduct to uphold high standards of business conduct and ethical behavior.
• Implemented policies and procedures to prevent fraud.

Climate Goals & Targets

Environmental Challenges

• High interest rates
• Challenging financing environment
• Uncertain price trends in the property market

Mitigation Strategies

• Successful debt restructuring, extending maturity and securing lower interest rates.
• Focus on high-quality, sustainable properties in prime locations with strong occupier demand.
• Exploring attractive potential in the hotel sector.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 12
• SDG 13

Focus on climate action (SDG 13), health and well-being (SDG 3), affordable and clean energy (SDG 7), and responsible consumption and production (SDG 12).

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Increased energy efficiency and prioritized the use of renewable energy in all properties to reduce carbon footprint.
• Seven of nine office and hotel buildings have DGNB Platinum, DGNB Gold, or LEED Gold certifications.

Social Achievements

• Active engagement with tenants to ensure satisfaction and raise awareness of sustainable practices.
• Modern properties provide healthy and comfortable spaces for tenants, resulting in low fluctuation and high occupancy rates.
• 67% of Management Committee positions are held by women.

Governance Achievements

• Developed a code of conduct to uphold high standards of business conduct and ethical behavior.
• Commitment to transparent reporting of financial and non-financial information.

Climate Goals & Targets

Environmental Challenges

• Sharp rise in interest rates.
• High construction and financing costs.
• Economic slowdown.
• Declining property prices.
• Increased financing costs affecting earnings from operational activity.
• Decreased market values of investment properties.

Mitigation Strategies

• Strategic positioning and long-term approach to real estate investment.
• Focus on high-quality properties with high sustainability standards in prime locations.
• Highly professional asset management with strong local teams.
• Active asset management to ensure stable cash flow from rental income.
• Optimising properties for energy efficiency and carbon reduction.
• Considering options to improve financial situation and liquidity (e.g., bond term extension, bank loan, additional shares).

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 12
• SDG 13

Focus on climate action (SDG 13), and positive impact on health and well-being (SDG 3), affordable and clean energy (SDG 7), and responsible consumption and production (SDG 12).