As part of its Better Places roadmap, the Group developed its Group biodiversity strategy in 2020 in collaboration with external experts. A complete study of the impacts and dependencies of the Group against biodiversity was also led in order to focus the Group strategy on appropriate actions. The results of this study identified impacts such as land artificialisation, degradation & fragmentation, degradation of habitats from material production, water consumption, wood and other bio-based material consumption, all greenhouse gases emissions, plant protection (phytosanitary) products, light pollution, single-use plastics used by tenants and visitors, and vegetation choice and maintenance. Dependencies include attractiveness (biophilia), climate regulation (trees cooling down space, vegetal areas reducing "urban heat islands", mitigating extreme weather events), risk mitigations (non-artificialised spaces absorbing rainwater), and resources supply (materials for construction, resources for tenants). These commitments are detailed in the following sections.

The policies in place regarding biodiversity and ecosystems are listed in the table below. The Group's biodiversity strategy includes explanation of the objectives and targets, operational follow-up regarding how the Group limits its impact on biodiversity. The Group policy applies to shopping centers and development projects in EU/UK only and progressively extended to the US. Stakeholders involved include Group sustainability team, corporate technical team (PMPS team), corporate development teams, the technical and development local country teams and the asset teams. The policy is for internal purposes only.

100% new development projects to achieve a biodiversity net gain. The preliminary studies of the Group biodiversity strategy showed that one of the main drivers of biodiversity loss is the change in land use. The Group 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. 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.

The time horizons utilized in the analysis of the strategy and business model's resilience concerning biodiversity and ecosystems are as follows:

• Group Biodiversity Strategy: 2020-2030
• GHG emissions' reduction policy: 2015-2050
• Climate adaptation policy: 2020-2030
• Sustainable development guidelines: 2020-2030

The outcomes derived from the resilience analysis concerning biodiversity and ecosystems include:

• 100% new development projects to achieve a biodiversity net gain by 2023
• 100% of standing assets to implement renaturation projects by 2030
• 100% development projects to implement a biodiversity action plan by 2023
• 100% standing assets with high biodiversity stakes to implement a biodiversity action plan by 2023

The Group's biodiversity strategy involves stakeholders such as the Group sustainability team, corporate technical team (PMPS team), corporate development teams, the technical and development local country teams, and the asset teams. The policy is for internal purposes only, and there is no specific mention of indigenous and local knowledge holders.

The Group applies a pragmatic approach on biodiversity to its standing assets. Assets are considered HBS if located within 1.5 km from a protected area in Europe. The Group's BREEAM In-Use certification policy ensures that biodiversity issues are well addressed and promoted to achieve high standards. The Group also works across its shopping centres to raise awareness among its stakeholders about the importance of biodiversity. The sustainability team monitors the application of the Group's biodiversity policy and provides operating teams with the necessary support.

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.

The Group's study identified impacts such as land artificialisation, degradation & fragmentation, degradation of habitats from material production, water consumption, wood and other bio-based material consumption, all greenhouse gases emissions, plant protection (phytosanitary) products, light pollution, single-use plastics used by tenants and visitors, and vegetation choice and maintenance. Dependencies include attractiveness (biophilia), climate regulation (trees cooling down space, vegetal areas reducing "urban heat islands", mitigating extreme weather events), risk mitigations (non-artificialised spaces absorbing rainwater), and resources supply (materials for construction, resources for tenants). These commitments are detailed in the following sections.

The Group includes in its sustainability guidelines the requirements related to the Do not Significant Harm ("DNSH") criteria for biodiversity within the EU Taxonomy regulation. In this respect the following criteria are followed by the Group's development projects: An EIA or screening is completed in accordance with Directive 2011/92/EU34. Where an EIA has been carried out, the required mitigation and compensation measures for protecting the environment are implemented. For sites/operations located in or near biodiversity-sensitive areas (including the Natura 2000 network of protected areas, UNESCO World Heritage sites and Key Biodiversity Areas, as well as other protected areas), an appropriate assessment, where applicable, has been conducted and based on its conclusions the necessary mitigation measures are implemented.