Eurocommercial Properties N : ESG update report 2022

RETAIL

RENEWABLE ENRGY

DIGITALISATION

ESG

COMMUNITIES

Our ESG strategy

At Eurocommercial, we recognise that building a sustainable and resilient business is the foundation for long-term success. Our ESG and business strategies are carefully aligned and we approach each business decision with a long-term view, supported by detailed research in order to evaluate its environmental and socio-economic impact. While each of our shopping centres presents its individual set of challenges and opportunities, we have developed a broad ESG vision and strategy to ensure that we can meet global challenges and the future demands of our customers, tenants and employees, while creating sustainable centres. Our ESG approach is centred around three strategic pillars: Be green, Be engaged,

Be responsible. These pillars guide our efforts to reduce our environmental impact, engage with our stakeholders, and act with responsibility towards society and the environment.

Materiality assessment

ESG applies to all aspects of our business operations. In 2020, we mapped out particular

topics and targets in order to help us develop our business with impact while enhancing value. These clear objectives underpin our current strategy.

The fi rst step was to execute a detailed materiality assessment in order to thoroughly assess a wide range of ESG topics. We then selected which topics would create the most value for the Company and its stakeholders, while in line with the United Nations Sustainable Development Goals on the global agenda. We carefully examined the core components of our business strategy, progressing their integration with our ESG strategy over

the short, medium and long term. An analysis among peers, data collection from different key stakeholders and in-house workshops helped develop a materiality matrix to determine the main ESG topics and their relative importance corresponding to the Global Reporting Initiatives (GRI) materiality principles. As we develop our ESG programme, we will continue to evaluate and revise it where appropriate and be ready to respond to new circumstances and opportunities as they arise.

for external stakeholders High

Connectivity and accessibility

Climate change and carbon impact

Innovation an technology

Cyber security and data privacy

visitor attraction

Energy management

Building certification

Medium Level of importance

Climate change and carbon impact

Connectivity and accessibility

s e r eB

Business integrity

Energy management

Waste and resource management

Health and safety of building users

Diversity and inclusion

Local community engagement

Create an attractive and professional workplace

BREEAM certifi cations in place for all shopping centres by 2025

Why ESG matters for Eurocommercial

For the past 30 years, Eurocommercial has been committed to promoting ESG through various initiatives. We aim to benefi t all stakeholders

by investing in retail properties and fostering community gathering places. Our goal is to provide opportunities for entrepreneurs to connect with their target audience and generate income, resulting in sustainable fi nancial returns for our shareholders.

Eurocommercial must strive for greater sustainability in the future for a variety of reasons. With the global population growing and the effects of climate change becoming more evident every day, it is essential that businesses make efforts to reduce their environmental impact and operate in a more responsible and sustainable manner. This is especially important for companies such as Eurocommercial, which owns and operates retail properties across Europe.

In addition to the moral and ethical considerations, increased sustainability could also bring numerous

• nancial benefi ts. For example, energy effi cient buildings cost less to operate and maintain, resulting in lower service charges for our tenants and higher net income. Moreover, corporate sustainability initiatives can improve a company's reputation and help to attract more customers and investors.

Overall, it is clear that improved sustainability is an important measure of Eurocommercial's future success. The Company needs to take action to reduce pollution, conserve resources, and improve effi ciency in order to remain competitive and ensure long-term viability. With the right strategies and investments, Eurocommercial Properties can drive further growth and success.

In 2022, we initiated an evaluation of the potential climate change risks faced by the Company to effectively address any physical and transition risks. We plan to implement mitigation and adaptation measures and improve our internal policies and procedures.

Maintaining health and safety and improving measures at our shopping centres is a priority. The indoor environmental quality has now taken on added signifi cance due to the recent pandemic. It is important to continue to adhere to the highest standards for the comfort and well-being of our customers, tenants and employees.

At our shopping centres, we ensure that all Health & Safety requirements are met, and go further by investing in monitoring tools such as CO2 meters to constantly check air quality inside our premises. Furthermore, we monitor our customers' comfort and satisfaction with their journey through our centre.

Efficient use of Reducing operational expenses for

resources our tenants to enable them to run their businesses at lower costs, while also offering energy-effi cient, more sustainable retail spaces.

We have made considerable effort to achieve operational excellence leading to decreased costs and a reduced carbon footprint.

Investments including solar panels, LED lights, upgraded Building Management Systems and advanced monitoring tools enable us to maintain reasonable energy costs and savings.

As a responsible owner, we must offer shopping centres with effi cient waste management, water conservation, biodiversity, material usage, sustainable

transportation, etc.

Eurocommercial has achieved Green Building Certifi cations for its entire real estate portfolio. These certifi cations provide the teams with guidelines to regularly measure and compare assets in order to reduce carbon emissions, energy consumption, waste, conserve water, focus on using safer materials, and minimise pollution.

We are taking proactive steps to improve our monitoring of our environmental and social impact and providing timely updates to stakeholders. We invest in smart meters in preparation for external verifi cation of environmental data and include sustainability data in our business plans and quarterly reports.

We adhere to stricter national and local environmental legislations and adapt our properties to comply with changing building codes that support the low-carbon initiatives of national governments and to improve energy effi ciency in order to reduce carbon emissions and upgrade Energy Performance Certifi cates (EPC).

Our "Be Green" pillar provides a plan to decrease our carbon footprint and optimise energy use. Our goal is to be carbon neutral in all scope

1 and 2 emissions by 2030 and to establish a reduction target for scope 3 emissions. We are also updating our Energy Performance Certifi cates to meet national regulations.

In 2022, the Company conducted internal workshops to promote a more concentrated, community-oriented approach to managing our properties while interacting with our stakeholders.

Having a good relationship with tenants is important to create a welcoming and enjoyable shopping experience for customers in our centres. We strive to work closely with our retailers as business partners.

We evaluate levels of tenant satisfaction through regular surveys and communication. We

also establish Green Committees to promote sustainable practices. Our Retail Academy assists tenant employees to develop and improve their skills and knowledge in good customer service.

In 2022, Eurocommercial established a Green Finance Framework and integrated ESG factors into individual loans.

To become a preferred business partner and establish a reputation as a trustworthy, long- term real estate investor.

Our teams maintain long-term relationships with the main participants in their local markets including tenants, investors and fi nancing partners.