Climate Change Data

Environmental Metrics

ESG Focus Areas

• Decent work and economic growth
• Affordable and clean energy
• Sustainable cities and communities

Environmental Achievements

• Installed 2MWp solar panels
• Reduced electricity consumption by -4% in Belgium and -3% in the Netherlands (like-for-like)
• Increased solar energy production from 54.5 MWh to 95.1 MWh in Westerlo

Social Achievements

• Maintained gender equality in the executive committee (50/50)
• Raised €4,295.02 for charity through employee sports initiative, doubled by the company
• 100% of employees received performance appraisals

Governance Achievements

• Implemented a detailed remuneration policy aligning with the 2020 Corporate Governance Code
• Maintained a debt ratio below the legal threshold (52.18%)
• Civil liability insurance for directors (D&O Insurance)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and resulting compulsory shop closures
• Bankruptcies of major retail chains (Blokker, Brantano, Orchestra)
• Increased vacancy rate (97.07%)

Mitigation Strategies

• Granted rent reductions during compulsory closures
• Implemented cost-saving measures
• Successfully re-let most vacant properties

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EPRA sBPR Guidelines

UN Sustainable Development Goals

• Goal 2
• Goal 7
• Goal 11
• Goal 13

Retail Estates' sustainability strategy is based on three pillars and aligns with these SDGs through initiatives related to decent work, clean energy, sustainable cities, and climate action.

Awards & Recognition

• EPRA gold award
• EPRA 'most improved trophy' for sustainability report
• sBPR label 'bronze'

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Greenhouse gas emission reduction
• Climate resilience and adaptation
• Consumer behaviour and awareness
• Digitalisation
• Responsible choice of materials
• Commitment toward stakeholders and the community
• Attract and develop talent
• Water management
• Biodiversity and land use
• Business ethics and governance
• Cybersecurity
• Health, safety and well-being

Environmental Achievements

• Installed photovoltaic panels on the roofs of retail parks in Hasselt, Hognoul, and Heerlen II, generating energy equivalent to the consumption of 420 households.
• Transitioned to green energy for electricity supply to common areas of retail parks.
• Invested €3.6 million in 31 renovations to optimize building envelopes (roof insulation, double glazing, façade insulation, airtightness improvements).
• Installed LED lighting at 4 locations.

Social Achievements

• Organized "Sports for charity" raising €6,000 for charity (matched by company for a total of €12,000).
• Provided 123 hours of employee training.
• Implemented a 2-day telework policy per week.
• Conducted 100% employee performance appraisals.

Governance Achievements

• Adopted new articles of association implementing the Belgian Code of Companies and Associations.
• Established a management committee.
• Updated Corporate Governance Charter.
• Implemented a new ERP system (SAP).

Climate Goals & Targets

Environmental Challenges

• Ukraine crisis and increased energy prices putting pressure on tenant profitability.
• Limited availability of information on tenant-specific energy consumption.
• Need for further development of energy performance certificates in Belgium.

Mitigation Strategies

• Investing €10 million over three years in renewable energy and water management improvements.
• Developing a standard green lease agreement to promote sustainability with tenants.
• Conducting energy screenings and measurements to identify areas for improvement.
• Implementing sub-metering to better track energy consumption.

Supply Chain Management

Responsible Procurement

• Collaboration with suppliers on material choices for new constructions and renovations.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Stricter regulatory requirements

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: EPRA sBPR Guidelines

UN Sustainable Development Goals

• SDG 7
• SDG 12
• SDG 13
• SDG 8
• SDG 17

Initiatives align with UN Sustainable Development Goals 7 (Affordable and Clean Energy), 12 (Responsible Consumption and Production), 13 (Climate Action), 8 (Decent Work and Economic Growth), and 17 (Partnerships for the Goals).

Awards & Recognition

• EPRA Gold award for financial reporting
• EPRA Silver award for sustainability reporting

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Greenhouse gas emissions
• Climate resilience & adaptation

Environmental Achievements

• € 12.95 million invested in ESG initiatives, including solar panels and building envelope optimization.
• 60 rental units equipped with operational solar panels, with a total production capacity covering the energy demand of 472 families.
• € 10.4 million spent on building envelope improvements (roof, windows, façade insulation).

Social Achievements

• 0 work-related accidents reported.
• 88% of employees received a performance review.
• Employees received an average of 19.7 training hours.

Governance Achievements

• Adoption of a Code of Conduct and information session for staff members.
• Cybersecurity phishing exercise conducted.
• Implementation of a new integrated technology solution (S/4HANA).

Climate Goals & Targets

Environmental Challenges

• Energy crisis impacting consumer confidence and retailer profitability.
• Persistently high inflation affecting the retail sector, particularly the food sector.
• Limited access to tenant energy consumption data for complete Scope 3 emissions calculation.

Mitigation Strategies

• Investments in energy efficiency and renewable energy solutions (solar panels).
• Cooperation with tenants on a “win-win” basis for sustainability investments.
• Development of a green lease agreement to facilitate ESG cooperation with tenants.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible choice of materials in new constructions and major renovations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: EPRA sBPR Guidelines

Certifications: null

Third-party Assurance: PwC Bedrijfsrevisoren BV

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 4 (Quality education)
• Goal 8 (Decent work and economic growth)
• Goal 16 (Peace, justice and strong institutions)

Retail Estates' ESG framework contributes to these goals through initiatives related to energy efficiency, renewable energy, greenhouse gas emission reduction, employee training and development, and business ethics.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EPRA Gold Award for financial reporting, Silver Award for sustainability reporting.

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Greenhouse Gas Emission Reduction
• Climate Resilience & Adaptation

Environmental Achievements

• Invested €12.5 million in ESG initiatives (14% of EPRA result), focusing on renewable energy and energy optimization of building envelopes.

Social Achievements

• 0 work-related accidents reported; 100% of employees received performance and career development reviews; average of 28.5 training hours per employee; launched an intranet for improved communication; implemented a cafeteria plan allowing employees to exchange bonus for extra days off.

Governance Achievements

• Established a comprehensive ESG decision-making process involving various management bodies and committees; implemented a whistleblower policy; maintained a strong compliance record with 0 violations of the code of conduct.

Climate Goals & Targets

Environmental Challenges

• Persistently high inflation impacting the retail sector; energy crisis impacting consumer confidence and retailer profitability; limited access to tenant consumption data for complete Scope 3 emissions calculation; challenges in obtaining definitive energy labels due to missing consumption data.

Mitigation Strategies

• Investing in energy-efficient solutions and renewable energy; developing a sustainability charter for collaboration with tenants; working towards a broader analysis of carbon footprint and setting 2030 targets; developing a dashboard to monitor solar panel performance; implementing a green lease agreement; further electrification of vehicle fleet.

Supply Chain Management

Responsible Procurement

• Focus on using more durable, sustainable, and bio-based construction materials; sourcing materials locally in Belgium whenever possible.

Climate-Related Risks & Opportunities

Physical Risks

• Land & marine heatwaves, heavy precipitations and storms, droughts

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: EPRA sBPR Guidelines

Third-party Assurance: PwC Réviseurs d’Entreprises SRL / Bedrijfsrevisoren BV (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

ESG framework contributes to these goals through energy efficiency improvements, renewable energy investments, greenhouse gas emission reduction initiatives, and climate-proofing measures.

Awards & Recognition

• Two gold medals from EPRA for financial reporting and sustainability reporting