In 2023, URW carried out its double materiality assessment for the Group, across all business segments and activities. An external advisory firm supported the Group in this process to ensure the robustness and neutrality of the methodology. The results of the double materiality analysis were directly integrated in the Group’s risk management approach, as presented in section 6.2.2.C Category #3 environmental and social responsibility risks.

The purpose of this double materiality assessment was to assess the materiality of sustainability and ESG topics from 2 complementary perspectives:

• An “impact” perspective, i.e., the negative or positive impacts of the Company and its activities on the environment, the people it works with and the communities it operates in. It considered the scale (level of criticality of the issue), the scope (value chain and affected stakeholders), the remediability (ability to mitigate the impact), as well as the likelihood of the impact.

• A “financial” perspective, i.e., the risks or opportunities that environmental and social issues represent for the Company’s activity and value. It considered the Company’s dependencies towards business relations and stakeholders (i.e., financial partners, tenants or suppliers), as well as the continuity of use or access to resources that are essential for the Company to operate and grow (e.g., raw materials, retention of key talents or development of stricter regulations). The materiality of risks and opportunities has been assessed based on the likelihood of occurrence and the potential magnitude of the financial effects. The financial thresholds considered for the analysis were aligned with the financial impact scales used for the Group risk mapping.

The materiality analysis was conducted in 4 phases:

1. URW identified a list of sustainability topics by conducting a contextual analysis, a sectoral analysis and a selection of applicable international standards that are relevant to the commercial real estate sector and its closest related sectors, such as retail, offices and construction. Key topics of sectors that represent the value chain of URW were integrated in the analysis, including but not limited to, construction materials, engineering, building products and retail.

URW pursued a study of international and sectoral ESG frameworks to understand how sustainability topics impact the Company’s business in terms of risks and opportunities. These sector-specific ESG standards provided detailed information on the financial impact of environmental and social issues on the business model. Complementary frameworks provided URW with a structured approach for assessing the likelihood, magnitude and nature of the effects of identified risks and opportunities, through the lens of the continuity of use or access to resources by URW as well as the Group’s dependence towards business relations. This phase involved evaluating the potential financial implications of each risk and opportunity for URW, considering their probability of occurrence, and understanding their potential impact on the Company’s operations, reputation, as well as its short, medium and long-term prospects. The financial implications were determined in the context of the Group’s risk mapping thresholds. This comprehensive assessment allowed URW to have a preliminary view of which topics were deemed more material for the Company.

URW also conducted an analysis of international and sectoral impact frameworks, to gauge how the Company’s activities directly and indirectly impact the sustainability topics identified. These impact frameworks provided URW with an understanding of how companies of the real estate sector and related sectors can impact the natural or society. During this phase, URW considered a sustainability issue to be significant from an impact perspective if it related to the Company’s tangible or potential influences (influences meaning the impacts associated with URW’s own operations and its value chain, including the services it provides as a real estate company as well as through its business relationships, throughout URW’s value chain.

The results were complemented by the pre-existing simple materiality analysis and sustainability risk analysis.

URW initiated a consultation process involving approximately 20 internal and external stakeholders. The selection of external stakeholders was carried out to ensure a representation of key value chain players for URW. The external stakeholders were: consumer rights organisations, sustainability in real estate experts, representatives from retailers’ associations, as well as significant partners, such as construction companies, with whom URW has collaborated on major projects.

In addition to these external consultations, dialogues were held with internal stakeholders representing various teams and geographies across the Group. These internal stakeholders included members from the Compliance, Operating Management, Development, Sustainability, People and the MPPS departments, along with a member of the MB. Internal consultations actively considered the different activities of the Group and its different subsidiaries, from the core business of retail (Shopping Centres) to mixed-use and offices (Offices), as well as Convention & Exhibition centres. Internal discussions served to supplement and critically evaluate the preliminary drafts of the materiality analysis, thereby ensuring a robust and comprehensive review process.

The purpose of these interviews was to proactively introduce the subjects identified for the materiality analysis, and to discern which areas URW should prioritise. This prioritisation took into account both the impact and financial perspectives previously mentioned. The goal was to ensure that URW’s focus aligns with the most significant topics from a sustainability and economic standpoint.

Following the consolidation of the final results, URW shared a detailed presentation and explanation of the double materiality analysis’ methodology with the AC. This included a clear explanation of the differences between the former simple materiality analysis and the new double materiality analysis.

URW initiated a consultation process involving approximately 20 internal and external stakeholders. The selection of external stakeholders was carried out to ensure a representation of key value chain players for URW. The external stakeholders were: consumer rights organisations, sustainability in real estate experts, representatives from retailers’ associations, as well as significant partners, such as construction companies, with whom URW has collaborated on major projects.

In addition to these external consultations, dialogues were held with internal stakeholders representing various teams and geographies across the Group. These internal stakeholders included members from the Compliance, Operating Management, Development, Sustainability, People and the MPPS departments, along with a member of the MB. Internal consultations actively considered the different activities of the Group and its different subsidiaries, from the core business of retail (Shopping Centres) to mixed-use and offices (Offices), as well as Convention & Exhibition centres. Internal discussions served to supplement and critically evaluate the preliminary drafts of the materiality analysis, thereby ensuring a robust and comprehensive review process.

The purpose of this double materiality assessment was to assess the materiality of sustainability and ESG topics from 2 complementary perspectives:

• An “impact” perspective, i.e., the negative or positive impacts of the Company and its activities on the environment, the people it works with and the communities it operates in. It considered the scale (level of criticality of the issue), the scope (value chain and affected stakeholders), the remediability (ability to mitigate the impact), as well as the likelihood of the impact.

• A “financial” perspective, i.e., the risks or opportunities that environmental and social issues represent for the Company’s activity and value. It considered the Company’s dependencies towards business relations and stakeholders (i.e., financial partners, tenants or suppliers), as well as the continuity of use or access to resources that are essential for the Company to operate and grow (e.g., raw materials, retention of key talents or development of stricter regulations). The materiality of risks and opportunities has been assessed based on the likelihood of occurrence and the potential magnitude of the financial effects. The financial thresholds considered for the analysis were aligned with the financial impact scales used for the Group risk mapping.

URW pursued a study of international and sectoral ESG frameworks to understand how sustainability topics impact the Company’s business in terms of risks and opportunities. These sector-specific ESG standards provided detailed information on the financial impact of environmental and social issues on the business model. Complementary frameworks provided URW with a structured approach for assessing the likelihood, magnitude and nature of the effects of identified risks and opportunities, through the lens of the continuity of use or access to resources by URW as well as the Group’s dependence towards business relations. This phase involved evaluating the potential financial implications of each risk and opportunity for URW, considering their probability of occurrence, and understanding their potential impact on the Company’s operations, reputation, as well as its short, medium and long-term prospects. The financial implications were determined in the context of the Group’s risk mapping thresholds. This comprehensive assessment allowed URW to have a preliminary view of which topics were deemed more material for the Company.

URW pursued a study of international and sectoral ESG frameworks to understand how sustainability topics impact the Company’s business in terms of risks and opportunities. These sector-specific ESG standards provided detailed information on the financial impact of environmental and social issues on the business model. Complementary frameworks provided URW with a structured approach for assessing the likelihood, magnitude and nature of the effects of identified risks and opportunities, through the lens of the continuity of use or access to resources by URW as well as the Group’s dependence towards business relations. This phase involved evaluating the potential financial implications of each risk and opportunity for URW, considering their probability of occurrence, and understanding their potential impact on the Company’s operations, reputation, as well as its short, medium and long-term prospects. The financial implications were determined in the context of the Group’s risk mapping thresholds. This comprehensive assessment allowed URW to have a preliminary view of which topics were deemed more material for the Company.

URW pursued a study of international and sectoral ESG frameworks to understand how sustainability topics impact the Company’s business in terms of risks and opportunities. These sector-specific ESG standards provided detailed information on the financial impact of environmental and social issues on the business model. Complementary frameworks provided URW with a structured approach for assessing the likelihood, magnitude and nature of the effects of identified risks and opportunities, through the lens of the continuity of use or access to resources by URW as well as the Group’s dependence towards business relations. This phase involved evaluating the potential financial implications of each risk and opportunity for URW, considering their probability of occurrence, and understanding their potential impact on the Company’s operations, reputation, as well as its short, medium and long-term prospects. The financial implications were determined in the context of the Group’s risk mapping thresholds. This comprehensive assessment allowed URW to have a preliminary view of which topics were deemed more material for the Company.

URW pursued a study of international and sectoral ESG frameworks to understand how sustainability topics impact the Company’s business in terms of risks and opportunities. These sector-specific ESG standards provided detailed information on the financial impact of environmental and social issues on the business model. Complementary frameworks provided URW with a structured approach for assessing the likelihood, magnitude and nature of the effects of identified risks and opportunities, through the lens of the continuity of use or access to resources by URW as well as the Group’s dependence towards business relations. This phase involved evaluating the potential financial implications of each risk and opportunity for URW, considering their probability of occurrence, and understanding their potential impact on the Company’s operations, reputation, as well as its short, medium and long-term prospects. The financial implications were determined in the context of the Group’s risk mapping thresholds. This comprehensive assessment allowed URW to have a preliminary view of which topics were deemed more material for the Company.