The policies include a mapping of URW’s material impacts on biodiversity and ecosystems and a description of the main drivers for biodiversity loss as identified by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (“IPBES”) in 2019. As GHG emissions represent the main impact of URW on biodiversity, two climate-related policies have been added in the table below.

The Group applies a pragmatic approach on biodiversity to its standing assets. Even though the dense urban locations of most assets severely limit the potential to enhance biodiversity, the Group’s sites are committed to retaining and improving local biodiversity. This translates in the implementation in 2022 of biodiversity action plans in all High Biodiversity Stakes (“HBS”) assets in Europe. Assets are considered HBS if located within 1.5 km from a protected area in Europe. These areas are composed of all the IUCN (management categories I to VI) and Bird Life International (Key Biodiversity Areas) protection areas. As for the creation of the biodiversity action plans of development projects, these standing assets must appoint a qualified ecologist to assess the on-site biodiversity and propose an adaptation action plan to preserve and improve the state of local nature. In the US, biodiversity audits will progressively be deployed in the context of the BREEAM In-Use certification of the US assets.

The preliminary studies of the Group biodiversity strategy showed that one of the main drivers of biodiversity loss, according to the 2019 IPBES report, is the change in land use. It also showed that real estate companies play a major role in this driver due to the artificialisation, degradation and fragmentation of land operated in greenfield projects. In the context of its biodiversity strategy, URW decided to commit to limiting these impacts by aiming to achieve a biodiversity net gain between the state of the site before and after the construction in all large projects. In order to reach this target, all concerned projects started from 2022 onwards will use the “Biodiversity Metric 3.0” methodology, created by the Department for Environment, Food and Rural Affairs in the UK (“DEFRA”). This methodology was created to “calculate a biodiversity baseline and to forecast biodiversity losses and gains on site or off site resulting from development or land management changes”, according to DEFRA. The Group will also make its best efforts to apply this target to its ongoing projects where it is possible.

In the context of both its net zero targets and Group biodiversity strategy, the Group has invested in 2 initiatives (see section 3.2.2.B.10 GHG removals and GHG mitigation projects financed through carbon credits) to protect and restore biodiversity at scale: The Climate Fund for Nature (MIROVA); and The Nature Impact Fund (WWF France). While the WWF France Nature Impact Fund is dedicated to the restoration of French forests, the Climate Fund for Nature managed by MIROVA finances nature-based projects around the world. Nature-based carbon removal projects financed through this fund help to improve biodiversity in several ways. By restoring degraded habitats and increasing the area and connectivity of natural landscapes, the projects can enhance the survival and reproduction of native species, as well as prevent or reduce the invasion of alien species. By improving soil health and water quality, the projects can support the productivity and resilience of ecosystems and their inhabitants. By involving local communities and stakeholders in the design and management of the projects, the projects can also foster social and cultural values related to biodiversity conservation and sustainable use. A small portion of MIROVA’s nature-based projects is dedicated to the protection of existing forests, particularly against deforestation.

The Group's biodiversity strategy aims to achieve a biodiversity net gain by avoiding and reducing impacts at the project level. The Biodiversity Metric 3.0 methodology is used to calculate biodiversity losses and gains. In case of loss of Biodiversity Units, the Group can finance compensation projects to balance the project's biodiversity net gain. The strategy includes avoiding and reducing impacts, and implementing biodiversity action plans for development projects.

The Group commits to achieving a biodiversity net gain and, in case of loss of Biodiversity Units, has the possibility to finance compensation projects to raise the project's balance to a biodiversity net gain. This indicates the use of biodiversity offsets.

The aim of the biodiversity offset is to achieve a biodiversity net gain. The Biodiversity Metric 3.0 methodology is used to calculate biodiversity losses and gains, which serves as a key performance indicator.

The Group can finance compensation projects to achieve a biodiversity net gain, indicating the use of biodiversity offsets. However, the monetary value of costs is not disclosed.

Anticipated financial effects from the consideration of biodiversity in development projects are in line with the estimates presented in section 3.2.2.A.4.2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement.

Anticipated financial effects from the consideration of biodiversity in development projects are in line with the estimates presented in section 3.2.2.A.4.2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement.