CITYCON OYJ Sustainability Accounts 2023
GRI index .............................................................................................. 50
Contents
How to read Citycon's 2023 reports ................................... 3
This is Citycon ...................................................................................... 4
Message from our CEO ................................................................... 5
Sustainability key figures ................................................................ 6
Sustainability focus areas ....................................................... 7
Goals of our sustainability strategy ........................................... 8
Carbon neutrality ............................................................................... 11
Community hub ................................................................................. 13
Excellence in action ......................................................................... 15
Sustainable mobility ........................................................................ 17
Sustainable value chain ................................................................ 19
Circularity & natural resources .................................................. 20
Sustainability reporting ......................................................... 22
Materiality assessment ................................................................ 23
Ongoing dialogue with stakeholders ..................................... 25
Environmental sustainability ...................................................... 27
Social sustainability ....................................................................... 39
Ethical business conduct ........................................................... 43
Reporting principles, methodology, and boundaries ..... 46
"Citycon is committed to achieving zero carbon emissions from our building operations by 2030."
Read more on pages 5, 11 and 27.
The sustainability issues that matter the most to us are presented in this report under the headline "Sustainability Focus Areas". These are strategically important issues and are featured in our sustainability strategy. Other important sustainability issues are discussed under the headline ''Sustainability reporting''. Here you can find more in-depth information about our sustainability performance.
How to read Citycon's 2023 reports
Our reporting in 2023 consists of the Sustainability Accounts, the Financial Review, the Corporate Governance Statement and the Remuneration Report. More information on Citycon, our strategy and value creation can be found on our website.
To make the report more reader-friendly, parts of this report, as well as supplementary information and additional case examples, can be found on the company website. You can recognise the links to this material through this symbol:Read more
Sustainability Accounts
Describes Citycon's environmental and social performance, as well as sustainability highlights in 2023.
Financial Review
Covers Citycon's financial performance in 2023, operational key figures, the report by the Board of Directors and the risk management review.
Corporate Governance Statement
Explains Citycon's structure of governance and the Board of Directors' activities in 2023.
Remuneration Report
Provides information on the remuneration of the Board of Directors and the CEO, and it also describes how the Remuneration Policy for Governing Bodies has been implemented.
Reporting framework and assurance
These Sustainability Accounts provide information on the sustainability issues that matter the most to us and our stakeholders, based on our materiality assessments. We focus on what we achieved in these areas during 2023. This report was prepared in accordance with GRI (Global Reporting Initiative) Standards. Environmental indicators have been assured by Ernst & Young Oy. The full list of assured indicators can be found in our GRI tables.
Due to the new data management and automation methods implemented in this report, the comparability of the reported 2023 figures to the figures reported in previous years may have decreased in some points.
These symbols help us to report our results in a way that is open and easy to understand. The symbols provide a quick overview of the status of our short-term sustainability targets. The symbols should be understood in the context of the targets and comments provided for that action.
This is Citycon
Citycon is the leading owner and developer of urban hubs in the Nordics and Baltics. We bring value to communities by developing urban hubs for living, working, socialising and shopping. We create cities full of life and are committed to sustainable development in everything we do.
2030
Carbon neutral by
professionals work at Cityconmillion annual visitors
140
234
Message from our CEO
How was the year 2023 for Citycon from a sustainability perspective?
The year was highlighted by positive results from the company's strategic efforts focused on creating sustainable communities. Lippulaiva in Espoo began to fully function as a transportation hub, with both the metro station and the new bus terminal being open for the entire year. Similarly, the new light rail at Oasen in Bergen, operational for its first full year in 2023, exemplifies the synergy between the company's location strategy and its commitment to green mobility. Both Lippulaiva and Oasen experienced a substantial increase in visitors over the course of the year.
Lippulaiva secured remarkable recognition by being announced as a winner in the Shopping Center of the Year competition for its advanced energy systems. Positioned above Europe's largest geothermal heating and cooling plant in a commercial building, Lippulaiva produces carbon-free energy while effectively capturing and reusing condensate energy and surplus heat. Lippulaiva's intelligent microgrid controls and optimises the building's energy consumption.
As a result of our ambitious sustainability work, Citycon has once again received recognition for our efforts to reduce the greenhouse gas emissions by being named among Europe's Climate Leaders by Financial Times and Statista.
I am delighted that we have achieved an all-time record with 1,100 different community engagement events andprojects in our centres throughout the Nordics. These initiatives range from long-running cooperations with NGOs to donation events for families in need, and even sports events for youths. Our commitment to bringing people together is evident, and engaging with residents, organisations, and municipalities remains a crucial aspect of our sustainability strategy.
What are the main strategic sustainability targets for Citycon?
To underline our commitment to the long-term sustainability targets, we updated our sustainability strategy in May 2023. The updated sustainability strategy, now containing six focus areas, enables the company to work effectively on multiple areas towards its ambitious goals for 2030.
We have refined existing sustainability focus areas and introduced two new ones: Sustainable value chain and Circularity & natural resources. These targets underscore the inclusion of the entire value chain in our sustainability strategy. Moreover, they emphasise the need to preserve scarce natural resources and vulnerable biodiversity for future generations. Integrating these considerations into all our operations is essential to achieving our sustainability objectives.
For each focus area, we have established both long-term and short-term targets, providing a framework that can be regularly updated to ensure our continuous alignment with our objectives. In short, Citycon is committed to achieving zero carbon emissions from
"Sustainable value chain and Circularity & natural resources are our two new focus areas in the sustainability strategy."
our building operations by 2030. Our centres are seamlessly integrated into the public transport systems of the cities where they are located, with well over half of our visitors arriving by foot, bike, public transport, or electric vehicles, effectively reducing the carbon emissions associated with our operations. Our centres are envisioned as urban hubs that bring people together for living, working, socialising and shopping. We are dedicated to fostering inclusivity within our working community and centres. To realise these goals, we are setting a standard of excellence by ensuring all our assets are environmentally certified, making best practices an integral part of our operations.
Have there been any changes in the reporting process during the year?
We have developed a data pipeline that facilitates the transmission of ESG data from our centres and other key data sources to our data warehouse, ensuring a
seamless flow of real-time data and providing the most accurate reports and KPI's, which further enables us to gain deeper understanding of our centres' ESG-related trends. This milestone represents a crucial step in future-proofing our data management architecture, enabling us to readily share our sustainability data with investors and tenants while upholding our commitment to transparency. Simultaneously, it positions us to navigate the volatility in energy markets and adhere to reporting standards such as CSRD (Corporate Sustainability Reporting Directive). Our advanced data management architecture exemplifies Citycon's role as a sustainability leader, showcasing our dedication to staying at the forefront of innovative and responsible business practices.
F. Scott Ball
CEO, Citycon Oyj
Sustainability key figures
1 BREEAM In-Use certification ongoing in 8.8% of the centres measured by fair value, all remaining assets have obtained building-phase certification.
Sustainability focus areas
Goals of our sustainability strategy
With 140 million annual visitors and 33 centres in the Nordic region, Citycon has both a responsibility and an opportunity to have a positive impact on people, communities, and the environment.
In 2023, we updated our sustainability strategy, now encompassing 6 focus areas. We refined existing sustainability focus areas and introduced two new ones: Sustainable value chain and Circularity & natural resources. These targets underscore the inclusion of the entire value chain in our sustainability strategy.
Read more
Our full sustainability strategy is available online atwww.citycon.com/sustainability/sustainability-strategy
Target 2024
Carbon neutrality
All assets will produce renewable or recover energy for their own use by 2025.
Energy efficiency: By the end of 2027, Citycon will have decreased energy consumption per sq.m. by 10% from 2022 levels.
11% increase in weather-corrected energy consumption / gross area (m2)
since 2022. (This was impacted by the change in the calculation of the weather-corrected district heating consumption).
Approximately 6% of net rental income will be budgeted yearly for value enhancing energy investments.
Status 2023
60% of assets produced renewable or recovered energy.
1% of NRI used for energy investments.
Target achievementCircularity & natural resources
Water efficiency: Water efficiency is considered in all repair, refurbishment and development projects and low-water fixtures are always installed.
Minimizing waste: Decreasing the share of mixed waste that is sent to incineration in cooperation with tenants.
All tenants have received waste management trainings. By 2026 material recycling rate is at least 80%.
Material recycling rate was 66%. 52% of centres have organized waste management trainings for tenants.
Community hub
Safety and wellbeing of each Citycon employee, customer and tenant is valued. Each Citycon employee, tenant and asset maintenance personnel working in the assets will receive safety training.
Community engagement: 100% of centres will organise events and activities to increase the well-being of the local community, especially focusing on supporting youth, families and the elderly.
94% of centres had community engagement events.
88% of centres had events and activities supporting youth, families or the elderly.
The Sustainable Procurement Policy sets a requirement for installing low-water fixtures in all new development and major renovation projects.
91% of centres have organised safety trainings for the centre staff and 79% of centres have organised safety trainings for the tenants.
10
Target 2024
Excellence in action
100% of asset will be BREEAM In-Use certified by year-end 2023 and achieve Very Good or better by 2026.
Increasing capabilities: The sustainability network is strengthened throughout the organisation. Citycon appoints a sustainability ambassador in each function and provides sustainability training for all its employees.
Sustainability targets: Every employee of Citycon has a sustainability-linked target in their bonus criteria.
Volunteering: Each employee of Citycon can use one workday per year for voluntary work.
Credibility: Citycon's sustainability work is credible and certified through CDP reporting and BREEAM environmental certificates.
All new development and major renovation projects will obtain a green building certification with minimum level of BREEAM Excellent or equivalent.
Sustainable mobility
Enabling EV uptake: All assets will offer electrical vehicle charging possibility for cars and bikes by year 2025.
All employees could use one workday per year for voluntary work under the concept "Charity day".
In 2023, we didn't have new development or major renovation projects eligible to obtain a green building certification.
68% of assets BREEAM In-Use Very Good or Excellent certified.
Sustainability training is planned to be available in Q2/2024.
85% of centres had EV and 15% of centres had EB charging.
Promoting active mobility: All assets will promote safe and easy access by pedestrians and cyclists. Different methods will be tested, and the best practices will be spread across all sites.
Status 2023
100% of employees had a sustainability-linked target in their bonus criteria.
88% of centres had dedicated bicycle parking.
Target achievementSustainable value chain
Tenant commitment: All assets provide a sustainability guide and mandatory training for tenants. Citycon will include sustainability-specific requirements in the leasing contracts.
Committed business partners: All subcontractors and tenants will commit to Citycon's business code of conduct and ethical principles. Citycon engages with potential business partners to minimize sustainability risks.
100% of the new tenants have signed the business code of conduct in 2023.
69% of the new supplier contractors signed the business code of conduct in 2023.
52% of assets organised sustainability information events for tenants.
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Disclaimer
Citycon Oyj published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2024 07:18:09 UTC.
