Slide 1: Strengthening our resilience - Investor presentation
OCTOBER Strengthening OUR RESILIENCE INVESTOR PRESENTATION Please follow our LinkedIn page for more details
Slide 2: Our conversation
OUR CONVERSATION Presented by: Anelisa Keke, Chief sustainability officer 1 Overview 2 Environmental 3 Social 4 Governance 5 Closing Supplementary 6 information Black River Office Park, Western Cape
Slide 3: Overview
OVERVIEW 3 Kwena Square, Gauteng Redefine ESG investor presentation 2023
Slide 4: Our ESG strategy
Our ESG strategy We are opting for the upside by scaling up our ESG initiatives to optimise our performance § Our ESG strategy aims to deliver a meaningful impact on the primary and secondary UN SDGs that we previously identified § The strategy is supported by targets with baselines, metrics and sho
Slide 5: Our approach is driven from a place of purpose
Our approach is driven from a place of purpose Putting people at the heart of what we do OVERVIEW Our MISSION Our PURPOSE In this decade to deliver Our VISION is to create and manage the smartest and most is to be the leading spaces in a way that sustainable spaces the South African REIT transforms
Slide 6: Our refreshed pathways to bring our mission to reality
Our refreshed pathways to bring our mission (moonshot) to reality It’s not what we do, but how we do it that sets us apart Embedding diversity, Mobilising digital Nurturing and Being a catalyst Being curious OVERVIEW equity and inclusion transformation optimising our for good innovators ecosystems C
Slide 7: Updated Redefine stakeholder matrix
Updated Redefine stakeholder matrix Don’t dictate the engagement level, focus on what we aim to achieve Keep satisfied and meet their needs Manage closely and collaborate High Government Property brokers Employees Customers Stakeholder influence over Redefine OVERVIEW Regulatory bodies Communities P
Slide 8: Our UN SDGs
Our UN SDGs Our efforts provide an opportunity to increase our attractiveness to key stakeholders Redefine primary UN SDGs EPP UN SDGs Good health and Sustainable cities Good health and Reduced inequalities wellbeing and communities wellbeing OVERVIEW Responsible Sustainable cities Gender equality c
Slide 9: Key challenges affecting our ESG strategy
Key challenges affecting our ESG strategy The key challenges affecting the strategy also present corresponding opportunities to further create value Environmental Social Governance Failing electricity, road and water EU financial institutions expect real estate Consuming diesel in generators increas
Slide 10: What we have achieved so far
What we have achieved so far Our strategy focuses on addressing risks and opportunities as market expectations evolve rapidly Total Total SA portfolio portfolio thatthat is is Total EPP portfolio that is Top green rated assets: SA considered considered green byGLA green by GLA BREEAM certified by GL
Slide 11: Understanding the business case for ESG
Understanding the business case for ESG Our ESG strategy prioritises capital-light projects and responsible behaviour Yielding projects Increased profitability due to on-site environmental initiatives that result in cost savings OVERVIEW We have evidence of international tenants and brokers seeking
Slide 12: Environmental
ENVIRONMENTAL 12 90 Rivonia Road, Gauteng Redefine ESG investor presentation 2023
Slide 13: Carbon footprint overview
Carbon footprint overview Our combined efforts continue to reduce our impact on the environment SCOPE 1 SCOPE 2 SCOPE 3 ENVIRONMENTAL CARBON FOOTPRINT SA 2021 to 2022 FOLLOWING THE GREENHOUSE GAS PROTOCOL for SA assets 0.85% 6% 93% NON-KYOTO GASES: 1 352 tCO2e 521 942 tCO2e Source: Redefine 2022 car
Slide 14: Physical climate risk exposure
Physical climate risk exposure We have mapped out our climate risk exposure at an asset level Our medium to high risk exposure to material physical risks in the SA portfolio is summarised below, based on the FY22 Munich Re climate risk assessment. Where the risks are higher than that, we have indica
Slide 15: Our net zero strategy
Our net zero strategy Climate resilience can only be achieved by setting long-term targets and driving consistent performance “Net zero entails companies reducing their generated emissions as much as possible and negating the remainder by funding carbon removal projects in clean energy, reforestatio
Slide 16: Long-term environmental strategy
Long-term environmental strategy The path to net zero for standing investments for SA and EPP Energy efficiency for whole building 2050 outcomes Renewable energy from on-site performance at 60kWh/sqm; operational ENVIRONMENTAL and/or off-site sources performance only 71 325 tCO2e carbon footprint Wa
Slide 17: Energy management strategy
Energy management strategy We are focused on efficiency-based interventions and behavioural interventions in the short term SHORT-TERM GOALS MEDIUM-TERM GOALS Drive to reduce electricity consumption through HVAC management and New buildings achieve net zero carbon from 2030 onwards for ENVIRONMENTAL
Slide 18: Water strategy
Water strategy Our water-use reduction strategy has already resulted in significant savings in water consumption SHORT-TERM GOALS 140ML targeted reduction in water footprint in buildings in SA ENVIRONMENTAL 10 new rainwater harvesting facilities planned for Gauteng Treatment of water to potable qual
Slide 19: Case study: Golden Walk Shopping Centre
Case study: Golden Walk Shopping Centre Water-saving initiatives reduce the cost of occupation and our reliance on the municipal water supply Golden Walk water consumption profile 6 000.0 § Installation of 64 Propelair toilets during July 2022 as part of a phased, portfolio-wide ENVIRONMENTAL 5 000.
Slide 20: Waste management
Waste management We have made significant progress in expanding the coverage of our waste management efforts SHORT-TERM GOALS MEDIUM-TERM GOALS 39% of SA buildings covered by internal waste management, 100% of buildings covered by internal waste management in SA, ENVIRONMENTAL with an overall projec
Slide 21: Our green buildings
Our green buildings Our green building programme provides valuable guidance to implementing net zero building practices SHORT-TERM GOALS MEDIUM-TERM GOALS 12 net zero operational carbon certifications (SA) New buildings achieve net zero carbon from FY30 onwards for operational carbon, with ENVIRONME
Slide 22: Social
SOCIAL 22 Hawk Academy, Gauteng Redefine ESG investor presentation 2023
Slide 23: Our social strategy
Our social strategy Focusing on the power of partnerships to drive the adoption of our ESG strategy Our strategy maps our impact throughout our business activities. The stakeholder engagement strategy informs how we prioritise, maximise and measure our impact across the value chain SOCIAL Our stakeh
Slide 24: Strategic approach to stakeholder engagement
Strategic approach to stakeholder engagement Discovery, insights and execution DISCOVERY (using our core channels Stakeholder Industry Trends and to understand Our Stakeholder research and bodies and competitor stakeholder needs) employees leaders surveys experts analysis SOCIAL INSIGHTS (developing
Slide 25: Our impact framework
Our impact framework The impact framework sets out a vision of transformational impact that is aligned to our mission For us, transformation goes beyond employment-level representation and focuses on how the business will transform and positively impact its internal and external processes, workforce
Slide 26: Communities
Communities From a CSI-based approach to making an impact on our communities SHORT-TERM GOALS MEDIUM-TERM GOALS Socioeconomic development (SED) strategy and action plan approved By FY30 ensure that initiatives are in place for communities in over (currently in execution phase) 50% of all buildings a
Slide 27: Tenants
Tenants Our ability to execute our ESG strategy hinges on collaboration with our tenants SHORT-TERM GOALS Our tenant engagement strategy is required to reduce National retailers in SA and tenants in other sectors (who occupy a combined Scope 3 emissions. We are engaging at an entity level as well GL
Slide 28: Employees
Employees Our most effective way to scale up critical ESG initiatives is through employee buy-in SHORT-TERM GOALS § Our focus on upskilling our employees on ESG initiatives allows us to sustain 100% of employees to be trained on green building the practical interventions we need to introduce to opti
Slide 29: Suppliers
Suppliers Our ESG risks and opportunities also extend to our supply chain SHORT-TERM GOALS Our supplier ESG self-assessments are still in their pilot phase. Even though the spread of 15 qualified suppliers completing the the scores shows that some of our suppliers still need to work on their ESG imp
Slide 30: Long-term social priorities
Long-term social priorities Focus on the scalability and long-term transformative impact made on the lives of target beneficiaries Suppliers Employees 100% of SA suppliers with C scores improving to Improvement on scoring in terms of Women Empowerment B scores on the next supplier self-assessment du
Slide 31: Case study: Matlosana Mall
Case study: Matlosana Mall The environmental and social performance of this asset exemplifies our ESG approach in retail 32% waste recycling rate (incorporating on-site waste sorting), LEARNING CENTRE Total individuals impacted 80+ including an asset-wide integrated waste management plan Programmes
Slide 32: Governance
GOVERNANCE 32 115 West Street, Gauteng Redefine ESG investor presentation 2023
Slide 33: Our governance approach
Our governance approach Creating and preserving value through strong governance processes Embed enterprise-wide corporate governance ESG governance Management’s responsibility How governance is supported Board of directors Approve selection of UN SDGs High-performing thought leadership GOVERNANCE Gr
Slide 34: Our approach to sustainable finance
Our approach to sustainable finance Our ability to finance the low-carbon transition of our assets is critical to achieving our ESG strategy Sustainable finance is identified as an opportunity § Our sustainable finance framework is available on our website on in our climate risk framework the debt p
Slide 35: ESG targets and metrics
ESG targets and metrics Our targets must be clear and measurable; stretching but achievable FY23 KPA adjustment During FY23, it became evident that the diesel consumption levels in response to unprecedented levels of loadshedding would make the achievement of the FY23 carbon emissions reductions nea
Slide 36: ESG targets and metrics: FY24 KPAs
ESG targets and metrics Our targets must be clear and measurable; stretching but achievable FY24 KPAs The key KPAs for our South African operations are set out below, including those that are linked to remuneration in the short- and long- term incentives GOVERNANCE Our EPP executives have KPAs that
Slide 37: ESG reporting at Redefine
ESG reporting at Redefine Redefine will focus on the reporting frameworks that best demonstrate the value created for stakeholders We use the international frameworks, standards and benchmarks Redefine and EPP will continue to publish separate that are most relevant to real estate as guidance on cur
Slide 38: ESG external rating levels
ESG external rating levels Our participation in external benchmarks helps us keep abreast of current ESG requirements We continue to participate in the following indices We are taking steps to incorporate § S&P Global Corporate Sustainability Assessment (SA only) the following reporting frameworks c
Slide 39: Closing
CLOSING Park Handlowy Zakopianka, Kraków
Slide 40: In conclusion
In conclusion We have clear strategies and implementation pathways for our ESG strategy The implementation of our ESG strategy is now well underway Key successes include § The achievement of three Net Zero Carbon: Level 2 (Measured) certifications § Improvement of Green Star SA coverage to 186 activ
Slide 41: Supplementary information
SUPPLEMENTARY INFORMATION 41 Oxygen, Szczecin Redefine ESG investor presentation 2023
Slide 42: Demand- and supply-side solutions
Demand- and supply-side solutions SUPPLEMENTARY INFORMATION Overview of various energy solutions currently being implemented by Redefine § Standby diesel generators − 72MVA − Low capex vs high operational cost (R39 000/hour) − High carbon emissions – higher than grid emissions factor § Existing sola
Slide 43: Employee diversity and human rights
Employee diversity and human rights SUPPLEMENTARY INFORMATION Diversity of thought is critical to our ability to innovate and execute our strategy Vital statistics Progress has been made towards achieving our transformation ambitions at executive levels. More will be done at senior management 461 SA
Slide 44: Further information
Further information Please use the links below to learn more about our ESG strategy Our latest integrated reporting suite https://www.redefine.co.za/investors/integrated-reports/latest-integrated-reports Overview of our ESG strategy and targets https://www.redefine.co.za/about-us/esg/strategy Our ap
Slide 45: Disclaimer
DISCLAIMER This presentation may include forward-looking statements which statements are not based on historical information, but rather premised on certain assumptions, risks, estimates and/or uncertainties (“risks and uncertainties”), which are taken into consideration as at date of this presentat