URW aims to reach net zero GHG emissions across its value chain by 2050. The company 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 has identified several levers for reducing carbon emissions:

1. Scopes 1 and 2 Emissions:

   • Scope 1: Emissions are mainly caused by natural gas consumption and refrigerant fluid leakage. Actions include increasing the air conditioning setpoint, implementing leakage sensors, and replacing refrigerant fluids.
   • Scope 2: Emissions are related to electricity consumption. Actions include purchasing renewable electricity, increasing onsite renewable energy production, and setting an energy intensity reduction target of -50% by 2030.

2. Scope 3 Emissions:

   • Customer Transportation: Focus on improving public transport connectivity and increasing the use of electric vehicles.
   • Downstream Leased Assets: Engage tenants to reduce energy consumption by ensuring 80% of electricity comes from renewable sources and reducing energy intensity by 25%.
   • Investment: Implement low-carbon construction guidelines.

URW's targets include reducing GHG emissions by -90% by 2030 for Scopes 1 and 2, and by 2050 for Scope 3. The company plans to adopt new technologies and improve energy efficiency across its operations and value chain.

In 2023, as part of the update of its Better Places roadmap, URW estimated the costs of the environmental transition for its European activities until 2030:

• Net zero – Near term target: €28 million for implementing long-term energy action plans 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 other environmentally related objectives.
• Transport: No CAPEX, with the installation of EVs planned on a leasing basis.

In 2023, URW estimated the costs of the environmental transition for its European activities until 2030:

• Net zero – Near term target: €28 million for implementing long-term energy action plans 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 other environmentally related objectives.
• Transport: No CAPEX, with the installation of EVs planned on a leasing basis.

In 2023, URW estimated the costs of the environmental transition for its European activities until 2030:

• Net zero – Near term target: €28 million for implementing long-term energy action plans 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 other environmentally related objectives.
• Transport: No CAPEX, with the installation of EVs planned on a leasing basis.

Within URW's carbon footprint, the following equipment or assets and their related GHG emissions could represent locked-in GHG emissions:

• Recently installed (<10 years) gas boilers in URW’s assets and associated stationary combustion emissions.
• URW’s assets with a high car modal share and located outside dense urban/suburban areas and the emissions related to the transportation of visitors to those centers.

Both of those sources are already considered and covered by URW’s carbon reduction trajectory model and levers.

URW's transition plan is fully aligned with the delegated act related to climate mitigation within the EU Taxonomy regulation. As the EU Taxonomy technical requirements for asset alignment are mostly related to the improvement of the energy performance of the buildings, the identified levers and associated CAPEX will contribute to the increase in alignment of URW’s economic activities.

URW is not excluded from EU Paris-aligned benchmarks as URW does not fall into any of the excluded activities.

The sustainability approach is fully embedded into the key processes of URW, in line with the Group’s strategic priorities and operational concerns. Relevant management processes have been set up at each stage of the business cycle, along with appropriate KPIs. For example:

• The URW due diligence process for asset acquisitions includes a complete audit of technical, regulatory, environmental and H&S risks, including soil contamination.
• The Group ERM framework includes climate change and sustainability risks. Identified among the main risk factors, they are integrated in the Risk Management Programme overviewed by the GRC, which reports regularly to the MB and SB (see section 6.1.2 Group Enterprise Risk Management framework).

The content of the transition plan has been presented and formally approved by the EC, the MB and the SB of URW in 2023. Any changes to the Group targets or to the main components of the transition plan is subject to validation of the MB, in line with the sustainability governance by the administrative, management and supervisory bodies detailed in section 3.2.1.B.1.1 Composition of the administrative, management and supervisory bodies and their access to expertise and skills with regard to sustainability matters.