Policies in place to manage material impacts, risks and opportunities related to climate change mitigation and adaptation are listed in the table below:

• Energy efficiency policy

  • Description: Explanation of the objectives and targets, operational follow-up, budget guidance, dashboards
  • Description of scope of policy or its exclusions: Group (EU/UK/US) Retail + Offices
  • Description of most senior level in organisation that is accountable for implementation of policy: The Management Board (MB) and the Executive Committee (EC)
  • Disclosure of third-party standards or initiatives that are respected through implementation of policy: Based on ISO 140 001 and ISO 50 001
  • Description of consideration given to interests of key stakeholders in setting policy: Stakeholders involved: Group sustainability team, the corporate technical team (PMPS team), the technical local country teams and the asset teams
  • Explanation of how policy is made available to potentially affected stakeholders and stakeholders who need to help implement it: The policy is for internal purposes only

• GHG emissions reduction policy

  • Description: Explanation of the objectives and targets, operational follow-up, budget guidance, dashboards
  • Description of scope of policy or its exclusions: Group (EU/UK/US) Retail + Offices
  • Description of most senior level in organisation that is accountable for implementation of policy: The Management Board (MB) and the Executive Committee (EC)
  • Disclosure of third-party standards or initiatives that are respected through implementation of policy: SBTi net zero standard
  • Description of consideration given to interests of key stakeholders in setting policy: Stakeholders involved: Group sustainability team, the corporate technical team (PMPS team), the technical local country teams and the asset teams
  • Explanation of how policy is made available to potentially affected stakeholders and stakeholders who need to help implement it: The policy is for internal purposes only

• Climate adaptation policy

  • Description: Explanation of the objectives and targets, operational follow-up, budget guidance, dashboards
  • Description of scope of policy or its exclusions: Group (EU/UK/US) Retail + Offices + development projects
  • Description of most senior level in organisation that is accountable for implementation of policy: The Management Board (MB) and the Executive Committee (EC)
  • Disclosure of third-party standards or initiatives that are respected through implementation of policy: TCFD, CSRD and EU taxonomy expectations
  • Description of consideration given to interests of key stakeholders in setting policy: Stakeholders involved: Group sustainability team, the corporate technical team (PMPS team), the risk management team, the technical local country teams and the asset teams
  • Explanation of how policy is made available to potentially affected stakeholders and stakeholders who need to help implement it: The policy is for internal purposes only

• Low carbon mobility policy

  • Description: Explanation of the objectives and targets, operational follow-up, budget guidance, dashboards
  • Description of scope of policy or its exclusions: Group (EU/UK/US) Retail + Offices
  • Description of most senior level in organisation that is accountable for implementation of policy: The Management Board (MB) and the Executive Committee (EC)
  • Disclosure of third-party standards or initiatives that are respected through implementation of policy: SBTi standard for carbon reduction ambition
  • Description of consideration given to interests of key stakeholders in setting policy: Stakeholders involved: Group sustainability team, the corporate technical team (PMPS team), the technical local country teams and the asset teams
  • Explanation of how policy is made available to potentially affected stakeholders and stakeholders who need to help implement it: The policy is for internal purposes only

• Sustainable development guidelines

  • Description: Contains the 10 golden rules and the sustainability brief containing all the requirements linked to the sustainability performance of URW’s development projects
  • Description of scope of policy or its exclusions: Group (EU/UK/US) Development projects
  • Description of most senior level in organisation that is accountable for implementation of policy: The Management Board (MB) and the Executive Committee (EC)
  • Disclosure of third-party standards or initiatives that are respected through implementation of policy: SBTi standard for carbon reduction ambition, BREEAM environmental certification for development projects, Local regulation such as RE2020 in France
  • Description of consideration given to interests of key stakeholders in setting policy: Stakeholders involved: Group sustainability team, the corporate development and construction teams, development and construction local teams in all Group countries
  • Explanation of how policy is made available to potentially affected stakeholders and stakeholders who need to help implement it: The policy is primarily designed for internal teams and shared with contractors involved in its implementation in development projects

• Green leases policy

  • Description: Contains the clauses URW relies on to engage tenants in the reduction of their energy consumption and related GHG emissions (among other topics)
  • Description of scope of policy or its exclusions: Group (EU/UK/US) Retail + Offices
  • Description of most senior level in organisation that is accountable for implementation of policy: The Management Board (MB) and the Executive Committee (EC)
  • Disclosure of third-party standards or initiatives that are respected through implementation of policy: “Annexe environnementale” French regulation
  • Description of consideration given to interests of key stakeholders in setting policy: Stakeholders involved: Group sustainability team, the corporate technical team (PMPS team), the corporate and French legal teams, the technical local country teams and the asset teams
  • Explanation of how policy is made available to potentially affected stakeholders and stakeholders who need to help implement it: The green lease template is systematically shared with tenants on each new deal.

URW's climate change mitigation actions include:

1. Energy Efficiency: Targets to reduce energy intensity by 50% by 2030 compared to 2015 levels.
2. Energy Mix: Transition to renewable energy sources, aiming for 100% renewable electricity for common areas and encouraging tenants to do the same.
3. Fugitive Emissions: Implementation of measures to reduce refrigerant fluid leakage.
4. Construction: Reducing carbon intensity from construction by 35% by 2030 compared to 2015 levels.
5. Transport: Increasing the share of visitors using sustainable transport means, with a target of 80% by 2030.
6. Nature-Based Solutions: Projects like the Climate fund for Nature (MIROVA) focusing on forest and mangrove conservation.

These actions are part of URW's commitment to reach net zero GHG emissions across its value chain by 2050, with a 90% reduction in absolute terms by 2050 compared to 2015.

URW implements a variety of adaptation solutions:

1. Nature-Based Solutions: Projects like the Climate fund for Nature (MIROVA) focusing on forest and mangrove conservation.
2. Engineering Solutions: Implementation of low-carbon construction rules for new development projects.
3. Technological Solutions: Energy audits and investments in energy-saving actions such as switching to LED, improving building management systems (BMS), and changing HVAC systems.

The anticipated financial effects from material physical and transition risks, as well as potential climate-related opportunities, are assessed through a detailed analysis of risks and opportunities at the Group level, asset level, and site-specific level. However, the document does not explicitly state if these financial effects are quantified.

URW has allocated resources towards several climate change policies:

1. Energy Efficiency Policy: Aims to reduce energy intensity across all Group assets with a long-term energy action plan.
2. GHG Emissions Reduction Policy: Focuses on setting and tracking carbon reduction targets with updated environmental action plans.
3. Climate Resilience Policy: Increases the resilience of URW's portfolio to climate-related risks with updated adaptation frameworks.
4. Low Carbon Mobility Policy: Improves connectivity to sustainable transport with updated mobility action plans.

The achieved and anticipated reductions in GHG emissions include a 32% reduction in Scope 1, a 37% reduction in Scope 2, and a 40% reduction in Scope 3 emissions from 2015 to 2023.

URW's ability to implement actions related to climate change policies is supported by the allocation of resources across various teams, including corporate sustainability, technical teams, local country and asset teams. The Group's climate mitigation plan outlines the financial resources required, which are stated in the plan. The ongoing access to finance impacts the ability to adjust to supply/demand changes, acquisitions, and significant R&D investments, ensuring the implementation of climate change policies.

In 2023, URW estimated the costs of the environmental transition for its European activities until 2030. The CapEx requirements include:

• Net Zero Target: €28 million covering both the implementation of the long-term energy action plan and energy mix improvement measures.
• Operation: No additional CapEx on top of the net zero near-term target.
• Construction: Limited increase in construction cost due to embodied carbon targets and environmentally related objectives.
• Transport: No CapEx as the installation of EVs is planned on a leasing basis.

These expenditures are associated with the Group's climate mitigation plan as stated in the financial resources section.

URW's transition plan is aligned with the delegated act related to climate mitigation within the EU Taxonomy regulation. The identified levers and associated CapEx will contribute to the increase in alignment of URW's economic activities. The capital expenditures are regularly reviewed in light of the Better Places targets, ensuring alignment with Group expectations. Managed assets have an environmental action plan, including actions deemed necessary to reach asset or Group level targets on energy and carbon performance, biodiversity, climate risks, waste, mobility, and water.

URW's capital expenditure plan includes significant investments to support the Better Places transition roadmap until 2030. The CapEx requirements are:

• Net Zero Target: €28 million for energy action plans and energy mix improvements.
• Operation: No additional CapEx required beyond the net zero near-term target.
• Construction: Limited increase in costs due to embodied carbon targets.
• Transport: No CapEx as EV installations are planned on a leasing basis.

These expenditures are part of the Group's climate mitigation plan, ensuring alignment with the capital expenditure plan as mandated by the regulation.

URW came up with its first climate mitigation approach in 2007, with quantitative targets for the reduction of its carbon emissions and energy consumption. Between 2008 and 2015, URW had already achieved a cumulative reduction of 33.8% of its energy intensity and 65.1% of its carbon intensity. In 2016, the Group took up a new long-term challenge, with its Better Places 2030 programme. In 2016, the Group was the first listed real estate company to address the wide scope of indirect carbon emissions resulting from construction works, transportation of visitors and employees, and energy consumption by tenants. Unless otherwise stated, the GHG emission figures and targets used in this chapter are expressed using the market-based methodology to highlight the efforts made by the Group in selecting its energy suppliers. In October 2023, URW communicated its updated Better Places sustainability roadmap including its commitment to contribute to global carbon neutrality with new science-based net zero targets on Scopes 1, 2 and 3. URW became the first retail real estate company in the EU and sixth CAC 40 company to obtain SBTi approval of net zero targets. URW's approach to contribute to global carbon neutrality follows the requirements of both the SBTi criteria for net zero targets (in line with the "Corporate Net-Zero Standard", published in April 2023), and the Paris Agreement 1.5°C pathway initiative. It follows the 3 main objectives: REDUCE; by cutting its carbon emissions at the level expected by science; AVOID; by helping its value chain reducing their own carbon emissions; and REMOVE; by neutralising any residual emissions left after the reduction of its carbon emissions. URW commits to reach net zero GHG emissions across its value chain by 2050. URW has pledged to reduce its footprint by -90% in absolute terms by 2050 compared to 2015 and to neutralise residual emissions through high-quality and sustainable carbon removal actions. These efforts are compatible with a global 1.5°C pathway, the most ambitious objective of the Paris Agreement. URW's targets and net zero commitment cover the Group's retail (Shopping Centres) and Offices activities globally.

URW commits to reach net zero GHG emissions across its value chain by 2050. URW has pledged to reduce its footprint by -90% in absolute terms by 2050 compared to 2015 and to neutralise residual emissions through high-quality and sustainable carbon removal actions. These efforts are compatible with a global 1.5°C pathway, the most ambitious objective of the Paris Agreement. URW's targets and net zero commitment cover the Group's retail (Shopping Centres) and Offices activities globally.