Covivio Hotels : Sustainability Report 2024 – Covivio Hotels

About this update from Covivio Hotels Sca

SUSTAINABILITY REPORT EXTRACT FROM THE COVIVIO HOTELS 2024 UNIVERSAL REGISTRATION DOCUMENT 3 Sustainability report General information 86 Editorial by the Chief Executive Officer 86 General information (ESRS 2) 87 Combating asset obsolescence (sectoral challenges) 112 Environmental information 117 Climate change (ESRS E1) 117 Business conduct policies and corporate culture (ESRS G1) 228 Governance based on ethics and transparency (GOV - 1) 228 Policies related to business conduct and corporate culture (G1 - 1) 229 Supply chain and payment practices (G1 - 2) 234 3.2.2 Pollution (ESRS E2) 146 (G1 - 3) 234 3.2.3 Water and marine resources (ESRS E3) 150 3.4.5 Business conduct metrics (G1 - 4) 235 3.2.4 Biodiversity (ESRS E4) 156 3.4.6 Interest representation and lobbying (G1 - 5) 236 Preventing risks of corruption and bribery Resource use and circular economy (ESRS E5) 171 Contributing to the implementation of sustainable finance 180 Social information 186 Own workforce (ESRS S1) 186 Working conditions and respect for Human Rights in the value chain (ESRS S2) 203 Affected communities (ESRS S3) 212 Consumers and end - users (ESRS S4) 221 .7 Supplier payment terms (G1 - 6) 237 CSR performance 238 Cross - reference table 238 List of assets and compliance with Green Bonds criteria 249 Regulatory tables related to European taxonomy 254 Independent third party audit 260 Sustainability information certification report 260 Independent third party verification - Green Bonds Covivio Hotels 265 General information Editorial by the Chief Executive Officer Droughts, heat waves, forest fires, floods, extreme weather conditions have reached new heights (1) in 2024, with their train of human tragedies. In this context, European regulations continued to gradually strengthen, in an attempt to contain global warming (which reached + 1.3°C in 2024), reduce pollution, the use of plastics, etc., or to standardise CSR reporting, with the implementation of the CSRD (2) . Our CSR report for 2024 is the first to be drafted in compliance with the provisions of the CSRD. As Covivio Hotels' Sustainable Development strategy stems from the Group's strategy in this area, this report is an extension of the report published at Group level. Covivio Hotels wishes to continue its development in the main tourist destinations and in particular in Southern Europe, in the mid to upscale hotel segment. Covivio Hotels is increasingly choosing to directly manage part of its portfolio, by acquiring the business assets of the properties it owns. This reflects our ambition to increasingly become a hotel operator, and not just a real estate investor (fixed or variable leases). Thus, 43 business assets, previously held by AccorInvest, were exchanged at the end of 2024, against 16 hotel properties belonging to Covivio Hotels. A major challenge for Covivio Hotels is to meet the targets of our carbon trajectory. Extensive audits and analyses have been performed in recent years. A performance monitoring and modelling platform has been developed and deployed across the portfolio in order to refine the action plan and, in particular, the improvement work to be implemented to achieve the target of -70% between 2010 and 2030 (-53% by the end of 2024) and to comply with the CRREM trajectory (3) . This approach is the subject of frequent discussions with our partners. We are gradually phasing out fossil fuels by replacing heating equipment. The repositioning work is an opportunity to improve the efficiency of the technical installations, as at the Novotel in Bruges this year (4) . The development of our Nature strategy is another major achievement for Covivio. It is the result of more than two years of work and a synthesis of our policies and actions in the areas of climate and biodiversity, water and the circular economy. This is a collaborative effort at the European level with operational teams and the involvement of governance at each stage of the project, both at the level of the Executive Committee as well as the Board of Directors via its CSR Committee. This Nature strategy, based on a holistic approach, addresses several of our material challenges that emerge from the analysis of the Group's impacts, risks and opportunities. Our Nature report, which is aligned as closely as possible with the TCFD and TNFD recommendations (5) , presents the 21 multi - year objectives adopted. 21 is also the number of associations which our Corporate Foundation supports, with equal opportunities as the common objective. Covivio is also continuing its commitments in the social and societal field. 2025 is beginning with a number of uncertainties over how the European Green Deal and associated regulations will be simplified. Despite the frequent regulatory changes, Covivio and its subsidiaries are maintaining their CSR objectives and continuing to transform, with the support and commitment of all levels of the company. Agility and adaptability, our culture of partnerships and innovation are all assets that have enabled Covivio and Covivio Hotels to establish themselves amongst the leaders of their markets in Europe and to anticipate and adapt to constantly changing situations, while remaining true to our convictions and values. Tugdual Millet - Taunay Chief Executive Officer (CEO) first annual review by the World Weather Attribution institute published this Friday, December 27, 2024, in collaboration with the Climate Central research institute CSRD : Corporate Sustainability Reporting Directive CRREM: Carbon Risk Real Estate Monitor. Covivio and Accor unveil the hotel Novotel Bruges Centrum - Covivio TCFD/TNFD: Taskforce on Climate/Nature Financial - related Disclosures. General information (ESRS 2) Sustainability reporting scope and methodology (ESRS 2 BP - 1/2) The sustainability information of Covivio Hotels, a consolidated subsidiary of Covivio, was previously included in the CSR Chapter (Chapter 3) of Covivio's Universal Registration Document. As the CSRD has removed the reporting exemption for consolidated subsidiaries, this Chapter 3 constitutes Covivio Hotels' sustainability report. However, Covivio Hotels' sustainable development strategy is implemented at Group level, with operational variations by activity. This is the reason why a large amount of the information in this chapter relates to the Covivio Group. This information has been compiled in the context of the first - time application of the above - mentioned articles, and is characterised by uncertainties regarding the interpretation of the legal texts and the lack of a reference framework, particularly for the double materiality analysis. These uncertainties concern, in particular, the treatment of greenhouse gas emissions related to the tenants of the buildings, accounted for in Scope 3 of greenhouse gas emissions (see section "3.2.1.6 / Gross GHG emissions of Scopes 1, 2, 3 and total GHG emissions (E1 - 6)"). The context of the first year of application is also characterised by the estimation of part of the energy consumption data (see the "3.2.1.5 Energy consumption and mix (E1 - 5)" section), water (see the "3.2.3.4.1 / Total water consumption across the portfolio" section) and waste production and treatment (see the "3.2.5.5.1 / Production and treatment of waste in the operating portfolio" section), as well as by an initial reporting exercise of social data on the Covivio Hotels operating properties scope (see the "3.1.2.5 / Action plan (MDR)" section). The 12 ESRS standards Covivio Hotels has prepared this sustainability report in accordance with the European Corporate Sustainability Reporting Directive (CSRD) and its 12 European Sustainability Reporting Standards (ESRS). The provisions of the CSRD were transposed into French law by the Order of 6 December 2023 and Decree No. 2023 - 1394 of 30 December 2023. Strengthening corporate sustainability reporting requirements is a key aspect of the Green Deal for Europe. The main objective of the CSRD is to harmonise companies' sustainability reporting and to improve the availability and quality of published ESG (environmental, social and governance) data. This information has been compiled in the context of the first - time application of the above - mentioned articles, and is characterised by uncertainties regarding the interpretation of the texts and the lack of a reference framework, particularly for the double materiality analysis. Despite the uncertainties highlighted, the sustainability report was prepared and presented in accordance with the ESRS requirements, and improvements are already expected to improve the quality of reporting: 3 a better understanding of future requirements with the publication of guidance and Q&A from the European Commission (in particular guidance relating to the transition plan); improvement in the quality of the source data on certain indicators, thus improving future estimates; benchmark information, which is limited at present but which should emerge as more and more companies publish/report information in accordance with the CSRD; the stabilisation of reporting practices, particularly with regard to taxonomy. Cross - cutting standards Environment Social Governance ESRS 1 General requirements ESRS 2 General information ESRS E1 Climate change ESRS E2 Pollution ESRS E3 Water and marine resources ESRS E4 ESRS S1 Own workforce ESRS S2 Workers in the value chain ESRS S3 Affected communities ESRS G1 Business conduct Biodiversity and ecosystems ESRS S4 ESRS E5 Resource use and circular economy Other legislation and reference frameworks Over the past several years, Covivio has followed the recommendations of the European Public Real Estate Association (EPRA) to prepare its financial and sustainability reports. The table of compliance with EPRA recommendations is presented in section 3.5.1. Covivio also conforms with the GRI Standards, the SASB (1) standards and the TCFD AND TNFD, which the Group began applying in March 2023 and December 2024 respectively. Consumers and end - users This Chapter 3 of the Universal Registration Document (URD) details the objectives and actions comprising Covivio Hotels' low - carbon strategy and notably presents the energy consumption and CO 2 emissions associated with the use of buildings, corrected for climatic conditions. Annually, Covivio presents a detailed report on greenhouse gas emissions by activity, in particular by reviewing the climate - related issues connected to the obligation introduced by the Grenelle II law of conducting a greenhouse gas assessment. Sustainability Accounting Standards Board. This reporting has been part of the 17 Sustainable Development Goals (including SDG 13 "Climate Action") defined by the United Nations since 2017. It collects information on the company's handling of the social and environmental consequences of its activity, as well as an analysis of the consequences of this activity on climate change. The financial risks inherent in the effects of climate change appear to be limited in the short term for the Group. Nevertheless, Covivio has been carrying out a range of more specific and in - depth assessment studies since 2017. Actions are often carried out in coordination with key tenant accounts, associations and leading initiatives (Alliance HQE, BBCA, Orée, Sekoya). Covivio's risk review takes the provisions of the law of 23 October 2018 on the fight against tax evasion into account. Chapter 4, section 4.2.6.7.4 describes the policies and actions taken to comply with the tax regulations of the countries in which Covivio operates. The list of consolidated companies is presented in Chapter 4, section 4.2.3.3 of this document. Furthermore, given the nature of Covivio's activities, as detailed in this document and more specifically in its business model (3.1.2.3), the implications of the sustainable food law of 30 October 2018 (combating food insecurity, respect for animal welfare and responsible, fair and sustainable food) appear to be limited for the company. In accordance with law n°. 2023 - 703 of 1 August 2023 amending Article L. 225 - 10 - 21 of the French Commercial Code aimed at promoting the bond between the Nation and the army and supporting engagement in the reserves, the Group will authorise leave for reservist employees who declare themselves to the Human Resources Department in this capacity. To date, given the absence of employees declared to Covivio, this has no impact on the Group's financial performance. Reporting scope This sustainability report covers the scope of the consolidated activities, in line with Covivio Hotels' financial report. This reporting covers the company's upstream and downstream value chain as far as possible (3.1.2.3). It focuses both on its relations with its different upstream (suppliers, regions, consultants, etc.), and downstream stakeholders on its partnership strategy, which is one of the keys to its success, in particular with tenants, financing organisations, etc. Time horizons Marginal differences between financial and non - financial reporting scopes are specified in the relevant sections, when they exist. This Chapter 3 also takes the provisions already published as part of the European regulation of the European "green" taxonomy into account. The environmental reporting is based on the financial control scope. A distinction is made for environmental indicators according to the management method used by Covivio: Operational control: this is the scope covered by the EPRA recommendations. This concerns the common areas of multi - tenant buildings, which are directly managed by Covivio's or its subsidiaries' teams. This scope also includes Covivio's head offices in Europe. These are Covivio's Scopes 1 and 2 (direct emissions related to the energy consumption of the scope, managed directly and paid for by Covivio). The "operational control" scope following the acquisition of new business assets in 2024 now includes hotels whose business assets are managed by Covivio Hotels (previously included in the non - operational control scope). Non - operational control: this concerns the scope of buildings or parts of buildings which Covivio or its subsidiaries do not manage directly, but which is carried out by the tenant (value chain - assets leased downstream), from whom energy and water consumption and waste volume (if available) are collected. These are single - tenant buildings under leases. This class of assets constitutes Scope 3 for Covivio, linked to the energy consumption of the buildings it owns. The scopes and calculation methods are detailed in two reporting protocols: one dedicated to environmental indicators and the other to social indicators. They are online on the Covivio website. Unless otherwise specified, the data presented in this report is provided on a like - for - like scope basis. The main calculation rules, estimates and data sources are specified in the ESRS concerned, in particular for ESRS E1, E3, E5 including the environmental reporting of the assets held. Covivio depends on its value chain (tenants and suppliers) for a majority of the quantitative data points for the information required to produce its reports. Some social information not available from hotel operators will be collected in 2025 following this first reporting fiscal year. To the best of the knowledge of the persons responsible for the preparation of this report, the information contained in the CSR Chapter of this document is factually correct and contains no omissions likely to affect its significance. Moreover, the CSR Chapter of Covivio Hotels' URD is not subject to the disclosure exemption this year. The time horizons are defined as follows in the pages of this CSR Chapter: Horizon Time frame Scope covered Short - term < 1 year Preferred scope for actions that do not require an in - depth analysis or a high level of governance approval. Medium - term 2 to 5 years The CSR action plan is divided into 5 - year sequences in order to measure the progress made on longer - term objectives. Long - term 6 to 10 years The horizon for larger - scale projects (including developments) requiring the use of forward - looking scenarios and a long - term vision of regulatory and market developments. Very long - term > 10 years Although distant and not defined by the CSRD, very long - term work is necessary to fully understand risks, particularly those related to climate, in order to understand potential IROs and adapt the strategy. These definitions comply with ESRS 1 and the sequencing of Covivio's CSR action plan. If a different time horizon is used in any of the sections of this chapter, it will be specifically mentioned. Commitment to transparency with stakeholders Different channels are used to communicate with stakeholders: Universal Registration Document Nature report Covivio Online The magazine Ethical Charter Responsible Purchasing Charter Targets/ Investors/Banks/SRI Investors/Banks/SRI Investors/SRI/ Investors/SRI/ Employees/Civil Suppliers/Certifiers/ Stakeholders analysts/French analysts/French Customers and Customers and society/ Customers and Financial Markets Financial Markets partners/Suppliers/ partners/Banks/ Shareholders/NGOs/ partners/Employees/ Authority ( Autorité Authority ( Autorité NGOs/Employees/ Suppliers/ Rating agencies Civil society des Marchés des Marchés Civil society Shareholders/ Financiers - AMF) Financiers - AMF)/ Employees/Civil Individual Individual society/NGOs shareholders/NGOs shareholders/NGOs Where can I find Publications - Covivio Publications - Covivio covivio.eu/Linkedin Publications - Covivio Publications - Covivio Publications - Covivio the information? Covivio has also adopted and published the following policies, which apply to the activities of Covivio Hotels: an Environmental policy in 2022, updated in early 2025; a Human Rights policy in 2024. Reliability and accuracy of the information produced Covivio strives to produce the most reliable data possible, using several levels of analysis, consistency checks and validation. However, there is no such thing as zero uncertainty, particularly with regard to the environmental data of the buildings which are not directly managed by Covivio. Covivio therefore cannot guarantee a zero level of uncertainty, either for the results presented or for future objectives. The internal control procedures for sustainability information are described in section 3.1.2.2.5. They apply the Group's risk management practices and aim to ensure that the information produced is reliable. If changes in the preparation or presentation of sustainability information occurred, Covivio would explain the reasons for these changes in the future and, if necessary, would provide the restated figures for the previous year. Similarly, if a material error was identified in the CSR reporting for one or more previous periods, this would be reported in the Sustainability Report, together with, if possible, corrective data and the origin of the error. In each ESRS, Covivio includes the quantitative metrics and monetary amounts measured to date. The levels of uncertainty or the reasons for the absence of data are specified in the relevant sections. The main source of uncertainty comes from value chain data, especially concerning water and energy consumption and waste production. The Group's Sustainable Development Department collects consumption data from the Property Management services and operators (invoices for communal areas), tenants, and energy and water producers or distributors. After consolidation, these data are restated by making climate adjustments (winter and summer) so that the results are comparable on a year - to - year basis. The data is analysed internally, involving investigations with the relevant parties and then an audit by an independent 3 third party (3.6.1). The systematisation of automated data collection is a way forward for guaranteeing data accuracy and reducing the reporting burden associated with the current process. Use of estimates The calculations for estimating missing data are explained in Covivio's environmental and social reporting protocols. When data are derived from an estimate, this is clearly indicated in the reporting tables or in the narrative section where the data is presented. The estimates mainly concern: water and energy consumption: for the months when the data is not available in time (December for energy, last quarter for water); waste production: the data is available for assets which have a specific waste collection contract. If not, the data is systematically estimated on the basis of the frequency of collections and volumes collected. The resources and means implemented This report was prepared with the assistance of the Group's functional and operational departments working at various levels of the Company. CSR intermediaries in each activity (operational and functional levels) periodically submit information which is relevant to monthly, quarterly or annual reporting to the Group's Sustainable Development Department. The resources used are detailed in each ESRS in connection with the action plans. Governance of sustainability issues anchored in the Group's organisation (GOV) Covivio Hotels is a partnership limited by shares ( société en commandite par actions - SCA). It is distinguished by the presence of two types of partners: General Partners, who are indefinitely liable for corporate liabilities out of their own assets; Limited Partners (shareholders), whose liability is limited to their contribution and whose shares are freely negotiable. They are represented by a Supervisory Board. The governance of the SCA is based on a separation of powers: the Management, composed of natural or legal persons, who are General Partners, who perform the executive functions, while the Supervisory Board exercises a controlling role. Collective decisions require a dual consultation: of the Limited Partners at the Shareholders' Meeting and of the General Partners. However, only the limited partners appoint the members of the Supervisory Board, thereby excluding general partners from this vote if they are also limited partners. Unlike public limited companies, a SCA is managed by the management and not by a collegial body such as a Board of Directors. Similarly, the financial statements are closed by management, without intervention by the Supervisory Board. The company has been managed by a single manager since 30 November 2004: Covivio Hotels Gestion, chaired by Tugdual Millet - Taunay. The main information related to the Supervisory Board of Covivio Hotels (EPRA Gov - Board): 13 members 46% women and 54% men 23% independent members 80% attendance rate at the 7 Board meetings in 2024 Average terms of office of 8.3 years 1 Audit Committee For more information on: the Composition of management: 5.2.1.1; the Powers of the Manager and its limitations: 5.2.1.2; the diversity policy: 5.2.1.5. Covivio Hotels' General Management is structured around various committees set up within the Covivio Group, including the Executive Committee at European level. The Executive Committee, which is the body at the heart of the corporate governance system, is a forum for reflection, consultation and decision - making on the Group's major strategies. It meets several times a month, either in person in one of the cities where the company is present or remotely, i.e . around thirty times in 2024. The Executive Committee, which has a European dimension, approves every important decision or operation concerning the asset rotation policy, the monitoring of subsidiaries and shareholdings, the financial policy, etc. It also addresses issues of organisation, CSR, tools, etc. The Executive Committee, whose composition is presented in section 5.2.1.4 of the Group's Universal Registration Document (URD), consists of 12 members at the end of the 2024 financial year, including representatives from all of Covivio's "country" and "product" activities and corporate functions. The diversity of this Committee, in terms of gender, age, experience, nationality and skills, enables it to provide the best support for the Group's strategic challenges. Covivio's Executive Committee is responsible for approving all investment and disposal projects in excess of €5 million. Its members are responsible, in their area of accountability, for implementing the Group's CSR objectives, in coordination with the Sustainable Development Department. The Executive Committee is supported by the country and operational Management Committees, in charge of: monitoring operations; budget implementation (finance, asset management, portfolio); corporate issues. Covivio Hotels is represented on the France Management Committee by its Chief Executive Officer (CEO) and its Deputy CEO, in charge of the operating properties business, thus acting as a link with the Covivio Hotels' Management Committee. Simplified organisation chart of the European Executive Management EUROPEAN GOVERNANCE General Management Finance Department General Secretariat: CSR, Digital, HR, IT, Legal, Innovation, etc. Audit and Internal Control Operational departments France Italy Germany Hotels in Europe Overview of sustainability governance (GOV - 1) As CSR has a strategic dimension for Covivio's business model and development, its governing bodies are committed to promoting the creation of value by the company by taking the social, societal and environmental issues that the company's activities face into account. Covivio confirmed the importance of social and environmental issues at the heart of its corporate and property strategy by defining its Purpose (Build sustainable relationships and well - being) at the end of 2019, and enshrining it in its articles of association in 2024. By modifying their economic model, Covivio and its subsidiaries are going beyond the simple pursuit of profit, because they believe that this goal should form part of a broader mission involving all of the stakeholders who contribute to the company's success. Thus, with its Purpose, Covivio is affirming its ambition to get even closer to its end users and to create, for them, living spaces for working, travelling and living. Covivio's CSR policy is adapted to the regulations and specific characteristics of the markets in each country where the Group is developing. It is shared by all its businesses in Europe and at all levels of the company. This CSR policy is described in plans of action, which are rounded out and adapted by regularly analysing the risks and opportunities presented by the environment in its field of activity. This strategy is the subject of a dedicated Group - wide governance structure. The Executive Department, which has a European dimension, ensures that the various functions and operational departments of the Group take social, societal and environmental issues into account as part of the implementation of the strategy defined by the Board of Directors. In addition, specific meetings are regularly organised with the operational departments of Covivio Hotels to monitor the implementation of the action plan. In addition, all Covivio Hotels employees attended an information session on European non - financial regulations (Taxonomy and CSRD). The four aspects of Covivio's CSR strategy apply to all its businesses: Sustainable buildings, Society, Social and Governance: 3 The four pillars of the Covivio Group's CSR strategy SUSTAINABLE BUILDINGS Develop assets that meet the highest environmental standards Improve the portfolio's environmental performance Fight obsolescence and ensure the resilience of assets Turning each site into a biodiversity driver ENVIRONMENT SUSTAINABLE AND INCLUSIVE CITY Offer buildings that meet customer needs Support the local economy and culture Offer more services Thanks to the Foundation, support projects that improve equal opportunities in France, Germany and Italy SOCIETAL ATTRACT, DEVELOP AND RETAIN TALENT Develop employee skills Encourage mobility Commitment to the diversity and gender diversity of teams SOCIAL EFFICIENT GOVERNANCE AND ETHICS Long-term shareholding and 50% free float Board of Directors with diverse skills, mostly independent Strong internal audit and control procedures A Group ethical charter applicable to all employees in Europe GOVERNANCE Significant changes have been made with the support of the Board of Directors in recent years, enabling the CSR approach of Covivio and its subsidiaries to develop and strengthen. Evolution of the Covivio Group's CSR governance 2019 2021 2023 1 2 3 4 5 6 2020 2022 2024 In order to monitor, challenge and review its commitments, Covivio has created a Stakeholders Committee and set up its Corporate Foundation which promotes equal opportunities and environmental protection. Covivio's purpose is: " Build sustainable relationships and well-being" and through this, it has committed to: improving its impact on the environment maximising the well-being of its clients and teams strengthening its social commitments The Board of Directors has aligned the financial policy with Covivio's ESG ambitions regarding progress on debt greening and has set up a green investment plan so that Covivio complies with its carbon reduction targets. On 21 July 2021, the Board of Directors decided to create a CSR Committee to help it perform its work regarding environmental, societal and social responsibility and governance and to ensure that CSR issues are taken into account in the Group's strategy and its implementation. The Shareholders' Meeting of 17 April 2024 approved the statutory registration of Covivio's Raison d'Etre by 99.98%. Covivio's climate and carbon policy was supported by 9 4.19 % of shareholders with the adoption of the "Say on Climate" resolution by the General Meeting on 20 April 2023 . For many years, Covivio has made CSR an important component of its business model and development strategy, with a central role dedicated to the climate issue, which has now been extended to biodiversity through the definition of a holistic Nature strategy. Drawing on the CSR governance already in place, Covivio's Nature strategy is shared across the different levels of the company and covers all of the Group's activities. The diagram below shows all the bodies involved in monitoring sustainability issues and the associated ROID (risk, opportunity, impact and dependency) as well as their links to the main governance bodies, the Board of Directors and the Executive Committee. BOARD OF DIRECTORS CSR Committee Once every 6 months EXECUTIVE COMMITTEE Composed of members of GROUP SD STEERING COMMITTEE Once a month m Nature SD Strategy Meetings Monitoring Committee Once every Once every 2 months 2 months Local SD Committees Once a month Green Meeting/ Raising employee awareness Once every 3 months e n t a n d c o u n t r y c o r r e s p o n d e n t s S u s t a i n NATURE GOVERNANCE COUNTRY LEVEL GROUP LEVEL a b l e D e v e l o p m e n t D e p a r t Governance of the Covivio Group's sustainable development strategy The Innovation and Transformation Committee, which is not included in the diagram above, also contributes to certain cross - functional issues related to the sustainable development strategy. It comprises the Deputy CEO, the heads of Development, Asset Management, IT, Wellio (Covivio's co - working subsidiary), Innovation and Sustainable Development, as well as the Chief Transformation Officer. A Board engaged in sustainability issues (GOV - 1/2) The Supervisory Board of Covivio Hotels approves the Group's strategic objectives, which in particular includes the multi - annual strategic objectives in terms of social and environmental responsibility, for which it is the guarantor. It oversees their implementation and places particular emphasis on monitoring CSR performance in conjunction with the Group's governance bodies. This Sustainability Report is approved by the Manager of Covivio Hotels. Furthermore, it was decided that Covivio Hotels' Audit Committee would review the audit methodology and approach, in the context of implementing the CSRD. The item was put on the Audit Committee's agenda for February 2025, when it was approved. 3 Information relating to the Board's consideration of CSR issues Percentage of Supervisory Board members with CSR expertise 62% Demonstrated expertise in the field by at least one of the members of the Supervisory Board Environment: Nathalie Robin, Marielle Seegmuller, Olivier Estève, Christophe Kullmann, Céline Leonardi, Joséphine Lelong - Chaussier, Adriana Saitta, Yann Briand Social and societal aspects: Céline Leonardi, Yves Marque, Tugdual Millet - Taunay Governance: Emmanuel Chabas, Christophe Kullmann, Yves Marque Training for members of the Supervisory Board Covivio Hotels' Supervisory Board is mainly composed of representatives of the Covivio Group and its other institutional investor shareholders. All have implemented a sustainable development strategy within their structure aimed at reducing the environmental impact of their real estate portfolio. The training of the five members who hold positions within the Covivio Group is provided in the context of the Group's CSR strategy, which aims to train all its employees on these subjects. In addition, Christophe Kullmann and Olivier Estève participate in Covivio's CSR Committee meetings. Percentage of Board meetings with at least one CSR topic on the agenda 100%, 4 meetings in 2024 The CSRD was included on the agenda of the meeting of 14 November 2024 CSR topics on the agenda in 2024 approval of the non - discrimination and diversity policy, particularly with regard to the balanced representation of women and men on the governing bodies presented in the Supervisory Board's report on corporate governance; presentation of energy consumption and the certification of all assets in the portfolio; presentation of the new European standard for non - financial reporting resulting from the transposition of the European directive called the CSRD. The following information is intended to explain how the administrative and management bodies ensure that the objectives related to material impacts, risks and opportunities are defined, and how they monitor the progress made towards achieving them during the reference period, in relation to the IRO table presented in section 3.1.2.3.3. CSR Committee Covivio Hotels does not have a CSR Committee attached to its Board, however Covivio's CSR Committee has Group - wide scope. Its work therefore encompasses the activities of Covivio Hotels. One session of the 2021 Board of Directors' meeting was devoted to the carbon trajectory. Following this, the Council decided to create a CSR Committee, which has since examined all CSR issues in detail. The CSR Committee, which comprises members of the Board of Directors, and is coordinated by the Executive Committee and independent experts, is responsible for validating and monitoring the implementation of the Group's CSR strategy, supporting the other bodies on these issues, guaranteeing the diversity and equality policy within the governing bodies, and reviewing, with the Audit Committee, the relevance and reliability of the sustainability information reported. The Committee meets at least twice a year and systematically reviews the objectives and progress of the CSR strategy. The Committee's Chairwoman reports to the Board of Directors on the Committee's work after each meeting, i.e. at least twice a year. The CSR Committee, which is already mobilised on CSR and Climate issues, was involved at all stages of shaping the Nature strategy, reviewing the main results of the ROID studies on biodiversity (CSR Committee meeting of March 2023), as well as the objectives of the new Nature strategy (CSR Committee meetings of April 2024 and October 2024). Similarly to the carbon trajectory and the climate strategy, which have been on the agenda of every CSR Committee meeting since its creation (either directly, or via the taxonomy or via more specific studies such as the quantification of green Capex), the CSR Committee has systematically monitored the objectives relating to the other environmental dimensions of the Nature Strategy since the end of 2024. The CSR Committee interacts with the Audit Committee on CSR risk factors, and with the Appointments and Remuneration Committee on determining relevant CSR criteria for executive remuneration. The members' qualifications are set out in Covivio's URD (ESRS 2, section 3.1.2.2.2). Shareholders' Meetings, a vehicle for sharing the CSR policy and the actions undertaken Shareholders were informed at the General Meeting of 17 April 2024, of the objectives of Covivio's CSR policy, which has been commended several times by non - financial rating agencies, and of the progress made on these objectives in the 2023 financial year, focusing in particular on: the strategic priorities set up to achieve the goal of reducing the carbon trajectory by -40% between 2010 and 2030 aimed at: favouring low - carbon developments; reducing carbon emissions and energy consumption; intensifying the use of renewable energy; limiting water consumption. the real estate portfolio's environmental certification, which was 95% at the end of 2023; the complete renovation of the existing building at L'Atelier, the Company's European headquarters, which is the showcase of Covivio's ESG strategy and know - how; the 94% approval of the "Say on Climate" resolution by the General Meeting of 20 April 2023 and the proposal to include Covivio's Purpose in the Articles of Association submitted to the shareholders' vote; the strong societal commitment, through the support of the Covivio foundation in Europe as part of long - term partnerships. Involve managers and employees in implementing the strategy The sustainable development strategy of Covivio Hotels is adapted from that of Covivio. It cannot be separated from the company's economic model. Its implementation is guaranteed by the support of a dedicated team, the Covivio Sustainable Development Department, in coordination with the Covivio Hotels teams. Sustainable development The Sustainable Development Department drives, deploys and coordinates initiatives within the various layers and activities of the Group, in direct contact with the General Management, Covivio's Board of Directors via the CSR Committee and the Sustainable Development Steering Committee. Cross - cutting across the entire Group, this team provides technical expertise to the different departments and divisions, playing a driving role in terms of strategic management, innovation, awareness - raising and CSR reporting. In 2024, Covivio Hotels also hired a specialised full - time consultant to set up a platform to monitor and model the greenhouse gas emissions of its assets. This task, in conjunction with the Sustainable Development Department, also aims to create a pathway between the Group's climate strategy and its operational implementation with regard to assets and in relation to real estate operators. The Sustainable Development Department meets formally every two months in "SD Meetings" (Sustainable Development) to monitor how the CSR commitments are being implemented at Group and country level. Alternating with the SD Meetings, the Sustainable Development Department also meets once every two months within the Nature Strategy Monitoring Committee. Created in 2024, this body is dedicated to steering the new Nature strategy and supporting the deployment of its actions. According to the needs and the progress made, it convenes not only the team members but also the operational managers of the actions of the Nature strategy. This Committee is also a platform for sharing experiences and knowledge on Nature issues across the Group's various European entities. Sustainable Development Steering Committee The Sustainable Development Steering Committee is a forum for regular discussions between the Sustainable Development Department, represented by Jean-Éric Fournier (Sustainable Development Director) and the Executive Committee, represented by Christophe Kullmann (Chief Executive Officer (CEO)) and Yves Marque (Chief Operating Officer). It meets every month and provides an opportunity to report on progress made in implementing the various CSR action plans (including the Nature strategy), formalising certain decisions relating to its implementation, and sharing them with the Executive Committee and the Board of Directors. The Steering Committee is also a forum for discussion on studies and diagnostics associated with CSR issues, including Nature topics (ROID studies), as well as the associated strategic implications. The Sustainable Development Department formally attended two meetings of the Covivio Hotels Steering Committee in 2024 to discuss the European taxonomy applied to the hotel industry, after the biodiversity objective came into force, and then for the CSRD, in order to validate the dual materiality matrix applied at the Covivio Hotels scope. A discussion channel has also been set up between the Sustainable Development Department, the Deputy Chief Executive Officer and representatives of the operating properties activity (in particular WiZiU). Green Meetings Green Meetings are bimonthly awareness and information meetings on sustainable development related to Covivio's business lines. Open to all Covivio employees, these meetings enable internal or external experts (design offices, associations, etc.) to present key or emerging topics for the Group: new labels, regulations, feedback on CSR - related projects, presentation of remarkable buildings, etc. The following topics were addressed in 2024 in connection with nature - related topics: protection of biodiversity illustrated by the example of the Atelier (Covivio's new European headquarters in Paris), circular economy and food, presentation of the 2024 Eco - challenge, progress of the Covivio for Climate (C4C) project. The Nature strategy will be the subject of a specific Green Meeting in early 2025. Sustainability - related performance incentive schemes (GOV - 3) Specific criteria are included in the variable remuneration of executives and then implemented within the operational teams, in order to align the corporate strategy with the Group's CSR challenges. The CSR Committee determines a set of remuneration criteria for corporate officers, which are then allocated according to responsibilities. The Chief Executive Officer then applies them to the different departments and managers. In 2022, the Board of Directors decided, on the proposal of the CSR Committee, to, in relation to the Long - Term Incentives for Covivio's Chief Executive Officer (CEO) and the Chief Operating Officer: increase the weighting of CSR criteria from 20% to 30%; apply the criterion of the feminisation of teams every other year, alternating with the criterion of the commitment of employees (based on the results of the Social Barometer), with each criterion counting for 15%; retain as another criterion, an environmental criterion, weighing 15%: the progress of the portfolio's environmental certification rate (as defined in the Sectoral Issues section), or, for the past two years, the progress of the carbon trajectory. Thus, the remuneration policy for Covivio's executive corporate officers approved by the Shareholders' Meeting on 20 April 2023 now states that the weight of CSR criteria must represent 30% of long - term remuneration, with the criteria mentioned above. Similarly, the CSR Committee proposed an increase in the weighting of the CSR criteria related to the annual bonus of corporate officers to the Remuneration Committee, which accepted this. Thus, 15% of Christophe Kullmann's 2025 bonus will be subject to the implementation of the green Capex plan, the achievement of a high level on certain non - financial ratings, the attraction and development of talent and the strengthening of the management team, and the setting of CSR objectives for the top 50 managers. Similarly, 15% of Olivier Estève's 2025 bonus will be subject to obtaining at least Gold or Excellent certification for 100% of the developments and alignment with the taxonomy, the BBCA label for 75% of operations in France and 50% in Germany/Italy, coverage of 100% of calls for tenders by the Responsible Purchasing policy and EcoVadis rating, and a circular economy approach for 100% of development projects. 3 CSR objectives are now systematically included in the criteria for calculating the variable portion of the remuneration of the members of the Executive Committee, starting with the Chief Executive Officer (CEO) of Covivio Hotels. The calculation of the variable compensation of the Chief Executive Officer (CEO), the Deputy CEO and the members of the Executive Committee includes targets related to the progress of Covivio's carbon objectives, the number of women in teams, the attraction and development of talents, the implementation of Green Capex programmes, the implementation of the Responsible Purchasing policy, etc. These targets are then assigned operationally to the Group's managers, according to their operational responsibilities, and are discussed during individual interviews. The ultimate goal is to give all Group managers at least one CSR objective tailored to their responsibilities. Variable remuneration of the Chief Executive Officer (CEO) of Covivio Hotels Proposal for variable remuneration to the 2025 Shareholders' Meeting (5.2.4.1.1.) Tugdual Millet - Taunay (1) Achievement of the target of 100% of the portfolio certified by 31 December 2025 20% of annual fixed salary Achievement of the portfolio's annual operating carbon intensity objective (in kgCO 2 e/m ² ) in order to achieve the objectives of the CRREM 1.5°C scenario in 2030, i.e. 21.1 kgCO 2 e/m ² ) in 2025 (or 2024 equivalent if 2025 data are not available at the reporting date) Risk management and internal controls regarding sustainability reporting (GOV - 4; GOV - 5) In 2021, Covivio updated its risk mapping at Group level, including all its subsidiaries and activities. The results were presented and shared with Covivio' Audit Committee. This was an opportunity to review the improvement in the level of control of the risks subject to specific action plans that have been defined and implemented, and to apportion the levels of control and the action plans put in place for the company's major risks. In 2018, the Sustainable Development Department, in coordination with the Risk, Compliance, Audit and Internal Control (ACI) Department, mapped out the CSR risks. This was validated by the Management Committee and enabled the inherent and residual risks associated with Covivio's activities to be identified. A risk mapping of procurement risks was then carried out in 2020/2021. The ACI carries out an annual risk review to ensure that these analyses are consistent and to report on how certain risks have changed in the overall mapping. CSR risk mapping The CSR risk mapping was carried out as part of the process of compliance with the previous Directive on non - financial reporting and provided input for the work undertaken for the double materiality analysis. This study was conducted among a panel of French, German and Italian Covivio managers (including Covivio Hotels), in charge of operational or functional departments exposed to the identified risks. The first step involved a series of interviews conducted internally with this panel, in order to define the universe of CSR risks at the European level. The second stage involved rating the risks identified based on three criteria: reputation, frequency and level of control. The CSR mapping performed differentiates between: inherent risks, considered in absolute terms in view of Covivio's sector and activities; residual risks, assessed after taking Covivio's actions to control these risks into account. The CSR risk mapping identified nine major risks. Subjects such as resilience and the topics of well - being and health are covered by several of these nine risks, which is why they do not appear separately. Summary of Covivio's CSR risks Asset obsolescence/Green value/Products anticipating societal changes (sectorial issues) Data protection/Smart building (ESRS S4, sectoral) Fraud/Corruption/Ethics (ESRS G1) Skills/Attractiveness/Diversity (ESRS S1) Quality of the relations with external stakeholders - customers (ESRS S4) Control of operating expenses (energy, water, waste, certifications) (ESRS E1, E3 , E5, sectoral) Health/Environmental safety/Regulatory compliance (ESRS E2) Integration into the sustainable city (ESRS S3 ) Responsible supply chain (ESRS S2) Level of control Risk of occurrence This mapping was validated by the Executive Committee and shared by the Board of Directors. The strategies for mitigating these risks are detailed in this report (see corresponding ESRS). CSRD - related developments Covivio has made changes to its control procedures in line with the management of the implementation of the CSRD within the Group. Specific governance has therefore been applied and incorporated into the sustainability information verification process presented below. This organisation can be summarised as follows: operational: a monthly CSRD Steering Committee meeting comprising the Chief Operating Officer, the Risk and Compliance Director, the Accounting and Consolidation Director, the Hotels Director and the Sustainable Development Department, oversees the implementation of the CSRD. supervision: Covivio's CSR Committee, in consultation with the Board of Directors, establishes the Covivio Group's CSR strategy and monitors the CSRD's objectives and action plans; validation: the Supervisory Board of Covivio Hotels checks the accuracy of the CSRD information and reporting process; verification: the sustainability auditor (Ernst & Young & Autres in 2025 for 2024) checks the information and issues a limited assurance certification report. Control procedures Covivio has had its non - financial reporting audited by an independent third party since 2012, and has therefore set up information reporting and internal control procedures. These procedures are reviewed and supplemented each year taking regulatory and market changes into account. They are drawn up in coordination with the departments involved ( e.g. HR for procedures related to ESRS S1) and verified by the ACI before being shared with all the interlocutors who contribute to producing indicators at Group level. The scope of action of the Audit and Internal Control Department covers all of the Group's activities. The general internal control, risk management and compliance policy and the relating organisation are detailed in Chapter 2 - Risk factors (ESRS GOV - 1). All the procedures are summarised in three documents as indicator reference sheets: the environmental reporting protocol; the social and societal reporting protocol; the protocol dedicated to the production of taxonomic indicators. The social reporting protocol and the environment protocol were updated in 2024 to comply with the CSRD reporting requirements and are available on the Group's website. In addition to regulations, these protocols aim to provide a framework for the management system for sustainability issues and to ensure that practices are harmonised within the Group. The Sustainable Development Department and its country and business CSR coordinators supervise data collection from the contributors for the activities concerned. It consolidates the data and carries out the appropriate consistency checks. Before publication, the data is validated by the various departments and verified by the sustainability auditor. Procedure for collecting and verifying sustainability information The calculation of some indicators may require additional steps. This applies in particular to the energy consumption data for buildings, because of the early collection of data on 30 September ( vs a single collection on 31 December for all other information). An example of consistency checks: the energy consumption of buildings The relevant Sustainable Development manager must conduct preliminary checks when they receive the consumption from a contributor. Changes: variations (+/- 20%) compared to the previous year (N - 1) must be justified by a comment or a new request must be sent to this effect. Consistency: checking the presence of fluids declared in N - 1 vs N and vice versa , validation to be requested if new or absent fluid. Comprehensiveness: complete data for the period concerned or estimates made in accordance with the reporting protocol and clearly stated as such in the table (estimates are not made directly by the contributor). Control: the manager performs a double check for data in the operational scope using the supervision systems when they are operational. Once these checks have been performed, the table is sent to the Sustainable Development consolidator, who carries out a new control before sending it for external verification. Comments are provided for the cases listed (variations, consistency, completeness, control). Control of abnormal intensity levels (+/- 20%) compared to the asset class. Control of parameters and formulas (climate adjustments, primary energy conversion factors and CO 2 ). Assets are excluded from the scope if there is insufficient evidence (thereby impacting the coverage rate). External audit of sustainability information The audit process is detailed in the sustainability auditor's report presented in section 3.6.1. It is broken down into three successive levels, according to the materiality of each data point: level 1: verification of the consistency of the sustainability report; level 2: Group level interviews, analytical review and consistency tests of quantitative indicators; level 3: interviews at the activity level and detailed tests on the reliability of data based on samples and consolidation. Due diligence Covivio Hotels is not subject to the due diligence obligation under the French Duty of Care law of 2017. Nevertheless, the Group has adopted vigilance measures throughout the life cycle of the building: purchase, management, renovation, 3.1.2.3 3 3.1.2.3.1 A sustainable value - creating business model (SBM) Assert a role as a responsible real estate operator (SBM - 1) deconstruction or sale, etc. Those responsible for each of these steps must comply with the procedures attached to the operations to be carried out. For example, in the case of an acquisition, the Asset and Property Management Department carries out an analysis of the available documentation during the due diligence phase in coordination with the support services (Environment, Legal, Sustainable Development, etc.). Its purpose is to obtain the necessary guarantees for acquisitions. The environmental risks are therefore assessed by examining this documentation, which is supplemented where necessary by additional investigations (security, connectivity, digital, taxonomy, etc.), and their estimated short - or long - term impacts in order to assess potential remediation costs. These diagnoses and studies are then monitored. A similar process is organised during a sale of assets, in order to make the necessary data accessible to the buyer. Suppliers are also monitored during the building's operational period and are assessed using the process developed with EcoVadis (ESRS S2, section 3.3.2.5). With 283 hotels in the portfolio, located in 12 countries with a value of €6.4 billion at the end of 2024, Covivio Hotels is the partner of choice of 17 hotel operators in Europe (AccorInvest, IHG, NH Hotel Group, B&B Hotels, etc.). Covivio Hotels is equipped to support brands in their lease, operating properties and development projects, and is a trusted partner in the most dynamic cities (London, Paris, Amsterdam, Florence, Rome, Berlin, etc.). Covivio is thus helping to renew the hotel offering in Europe by identifying the most ground - breaking concepts, initiating partnerships with new entrants or leveraging the repositioning of its hotels in its portfolio to provide a hotel offering that is increasingly tailored to their markets and travellers' expectations. All of this is geared towards improving the environmental performance of the hotels, in line with the Group's CSR strategy. Covivio Hotels manages its hotel portfolio via two main management methods: as leases or as operating properties. Hotel Lease Properties represent 62% of the portfolio and the remaining fixed term of the leases is 11 years on average. The portfolio is let mainly to AccorInvest (20%) in France and Belgium and consists of economy (Ibis) and midscale (Novotel, Mercure) hotels. In the United Kingdom, Hotel Lease Properties are let to IHG (13% of the hotel portfolio). Lastly, the other Hotel Lease Properties are let to B&B, NH Hotels, Motel One, Barcelo, Hotusa, etc. under long - term leases. Hotel Operating Properties (38% of the hotel portfolio) are mainly located in Germany (particularly in Berlin), France and Belgium. Covivio Hotels activity 283 hotels 39,500 rooms €6.4 billion hotel portfolio in Europe (€5.8 million Group share) 12 countries 90% of hotels located in major European cities 17 partner hotel operators: AccorInvest, IHG, B&B HOTELS, NH Hotels, Motel One, Barcelo, Radisson Hotel Group, Marriott, etc. Belgi A presence in 12 countries in Europe: Italy 5% um 5% 3% France 33% UK 13% Germany 24% 6% Netherlands Others A wide range of hotels: A diversified profile: Economy 26% Upscale 32% Operating properties 38% Spain 11% Mid-range 42% Conventional lease 62% 90% of the portfolio located in the main tourist destinations Covivio Hotels' organisation chart and positioning within the Covivio Group COVIVIO COVIVIO HOTELS DEPUTY CEO ASSET MANAGEMENT Northern Europe ASSET MANAGEMENT & ACQUISITION S ASSET MANAGEMENT OPERATING PROPERTIESS WiZiU hotel platform outhern Europe CHIEF OPERATING OFFICER A long - term strategic vision Covivio's business involves investing to hold real estate assets, while developing and renovating buildings. Covivio is constantly striving to improve the technical, environmental, service and financial performance of its portfolio. Its business model is based on a long - term vision, organised around three pillars: central location: a strong presence in the centre of Europe's major capital cities and main business and leisure centres, offering good market depth and attractive economic prospects; hospitality: assets and an offer modelled on new concepts, designed to keep pace with urban transformation and the new demands from customers. The aim is to facilitate "nomadism" and teleworking in a context where the boundaries between work and personal life are blurring; sustainability: a commitment to the climate transition for a sustainable and resilient city, by placing CSR at the heart of the business model in order to accelerate the company's transformation. From the mindset of an investor and real estate asset manager to the mindset of an asset manager and hotel operator, with a focus on creating value. A unique positioning for a REITs A major player in hotel investment: by favouring the best real estate investments in the hotel sector in Europe, while diversifying its modes of intervention (Hotel Lease Properties, Hotel Operating Properties) whilst continuing to support the development of tenant operators. A forerunner in the renewal of the European hotel offering and experience: by identifying the most innovative lifestyle concepts (Zoku Meininger, Anantaran Kimpton, etc.), while reworking and repositioning its existing portfolio due to an active asset & brand management policy. Creator of a local and bespoke hotel experience: the aim today is to adapt to the specific characteristics of the building, its environment and its customers. Covivio Hotels aims to offer its customers a unique experience in each city based on a personalised approach: in one city, local cooking classes will be offered, while in another, guided tours of the city's most beautiful sites will be available. Towards a more responsible hotel industry Covivio Hotels has taken up the challenge of the hotel sector, i.e. maintain its quality standards and satisfy its customers' expectations while reducing its carbon footprint: at the end of 2024, 97.5% of the hotel portfolio was environmentally certified and the target is 100% by the end of 2025; a 53% reduction in carbon intensity between 2010 and 2024, consistent with the 1.5°C scenario of the CRREM/SBTi trajectory; Covivio Hotels gets its hotel partners involved in a joint and virtuous approach to reducing their carbon footprint: a collective objective. The means deployed by Covivio Hotels to reduce the carbon footprint of its assets: a precise diagnosis is carried out on each hotel to identify the levers for improving energy performance, in order to optimise their operation and to consider, if necessary, a programme of works; support for tenant operators and managers, in order to train staff in the most virtuous practices possible and raise customer awareness; 3 capitalise on the Group's experience in Sustainable Development deployed in offices and residential, by identifying and disseminating best practices among its hotel partners. In 2024, the hotel operating properties activity underwent a further expansion with the reorganisation of the ownership of hotel operating properties and businesses for a total exchange value of nearly €800 million. At the end of this operation initiated at the end of 2023, Covivio Hotels and its partners now holds the freehold title to 43 hotels located in France, Belgium and Germany and have transferred 16 hotels located in the same territories to AccorInvest. WiZiU, Covivio's hotel management platform WiZiU's mission is to manage hotels owned by Covivio Hotels in France and Belgium, and which are operated directly or through franchise agreements with prestigious operators - Accor, Hilton, IHG, Marriott. WiZiU is involved in all stages of a hotel's management and operation. WiZiU's conviction: the alignment of interests between stakeholders (teams, customers, operators, partners and owners) is the best lever for value creation. By the end of 2024, WiZiU had 24 hotels, with a total of over 3,100 rooms in Lille, Le Touquet, Nice, Rouen, Antwerp, Bruges, Brussels, Ghent and Leuven. WiZiU's ambition is to support the repositioning of these hotels through rebranding and an investment programme. The platform believes that people are the cornerstone of the hotel sector and its professions. WiZiU flourishes from encounters, teamwork and dialogue with all those who contribute to the life of its hotels. This collective spirit, and this dynamic approach to the hospitality industry are in WiZiU's DNA. A sustainable value-creating business model FINANCIAL Financial stability Investments Liquidity €6.4 BN portfolio of which > 9 0% in central locations, in the heart of major European cities €84 M of investments contributing to a climate objective of the taxonomy 100 % green bonds (€4.1 BN) 40.8 % debt ratio under control Talent retention Skills Attractiveness HUMAN RESOURCES ~1,500 employees in hotel operating properties 48 % /52 % male/female ratio 93 % employees trained A DIVERSITY OF CAPITAL Maintaining a good quality of life at work Asset management Infrastructure Facilities INDUSTRIAL Renovation measures on the existing portfolio Development of a complete Group-wide offer: Work - Travel - Live Responsible procurement Long-term relationship Partnerships RELATIONSHIP Long-term relationship of trust with an average lease term of 11 years and with 17 partner hotel operators Development of partnerships with local authorities and organisations Climate strategy Biodiversity Resilience NATURAL Strategy of improving environmental performance of the portfolio (energy, carbon, water) Deployment of the Nature strategy at Group level Innovation Research Expertise INTELLECTUAL E xpertise in real estate, financial and technical matters Fight against obsolescence Innovation and smart building (digital strategy) Participation in working groups on low-carbon innovations PURPOSE Building well-being and lasting relationships BUSINESS ACTIVITIES INVESTING/ DEVELOPING Location ZAN (Net Zero Artificialisation) Green financing Sustainable city BUSINESS/ CSR STRATEGY: Centrality Hospitality Sustainability LONG-TERM VISION STAKEHOLDERS OPERATE/OPTIMISE Service, health, safety Optimise customer satisfaction Anticipate new needs ARBITRAGE/ DISPOSAL Strengthen the operating properties activity Choice of high-quality destinations VALUE CREATED ECONOMIC VALUE €263 M rent received €83 M income from operating hotels Taxonomy: 32 % of revenues aligned (real estate scope) SOCIAL AND SOCIETAL VALUE 3 % of the payroll allocated to skills development (training - France ESU) €1.7 M over 5 years allocated to the Covivio foundation 17,000 jobs supported thanks to the Group's activities 22 charities supported by the Foundation to fight for equal opportunities ENVIRONMENTAL CONTRIBUTION 97.5 % of hotels certified 14 % decrease in energy consumption between 2019 and 2024 24 % reduction in water consumption over the same period Involving stakeholders (SBM - 2) A driving force at the heart of the sector The building and real estate sector covers an extremely diverse range of professions and expertise, each contributing to the activity of the others: architects, technical design offices, local authorities, surveyors, bankers, suppliers, marketers, legal professions, operator and end customers, investors, associations, the media... and of course employees. Covivio is at the heart of this network of relationships. The Group, which is aware of its economic weight and its leading role, strives to set an example in how it manages its business activities and, especially, in its relationships with its different stakeholders. Covivio works with and listens to its different stakeholders, co - inventing real estate solutions that meet their expectations. Covivio's positioning in the building/real estate sector Ratings agencies Reporting Banks and Shareholders Financing Employees Human capital Suppliers and Consultants Development/ Administration Local authorities and non-profit organisations Clients Regions Rental income 3 Meeting stakeholder expectations The mapping of the Group's stakeholders since 2010, has enabled their expectations to be more effectively taken into account and a materiality matrix to be produced. The main public authorities (local authorities); civil society (associations, media). stakeholders were selected from: Interviews with these internal and external stakeholders enabled the commercial community (key account tenants, suppliers); the financial community (shareholders, banks); human capital (managers, employees); their expectations, constraints and challenges in terms of CSR to be better identified. These issues have been prioritised according to their importance and their impact on the company's activities, resulting in the map below and the introduction of appropriate dialogue tools. They were re - examined when the Group's Purpose was defined in 2019. Covivio Hotels' stakeholders throughout the value chain THIRD PARTIES Regulators Legislator NGOs Management (engineering, marketing, etc.) PROVIDERS PARTNERS Directors Local residents Insurance Banks Local authorities Shareholders and investors Rating agencies Employees Associations Purchasers Media Notaries Hotel managers External support services (training, software, etc.) Tenants Professional associations Competitors Networks (telecoms, water, energy) Development (construction, architects, BET, landscaping, project management, etc.) Because of the diversity of the main stakeholders identified and their expectations, Covivio has gradually set up a specific communication for each one. The Group uses a variety of internal and external communication methods to do this, in particular via social networks: tenant extranet, X, LinkedIn, Yammer, etc. Adapted communication methods Main stakeholders Stakeholder expectations Communication method Chapter Hotel operators Co - construction of innovative "tailor - made" Sustainable Development Partnership ESRS S4 solutions to best support each individual's Committees real estate strategy Shareholders Visibility and sustainability of the business Letter to shareholders, press releases, Chapter 6 model and profitability financial releases, road shows, investor days, website, etc. Rating agencies Transparency of financial and non - financial Universal Registration Document, 3.2.6 communications Sustainable Performance Report, Nature Report Employees Professional career monitoring, training Intranet, internal communication tools ESRS S1 Local authorities and Consideration of their socio - economic issues Sustainable performance report, Nature ESRS S3 associations report Participation in various collaborative projects, conferences, etc. Suppliers Fair practices Responsible Purchasing Charter ESRS S2 Evaluation system via EcoVadis Stakeholders Committee When it defined its Purpose, Covivio decided to create a Stakeholder Committee for the Group's governance bodies in order to take stakeholders' interests into account in a more regular and structured way. Its purpose is to engage in long - term reflection on Covivio's future challenges and their inclusion in the strategy. Its goals are to involve stakeholders in the design process for the products and services developed by Covivio, to keep track of major changes and long - term trends, and to compare viewpoints to ensure that these changes are incorporated into the Group's development projects and strategy. This work focused on the rupture of the social bond, giving a place in the city to the most vulnerable, practical ways of creating diversity and a sense of community, and giving city dwellers the chance to relax. A report on this Committee's work was given to Covivio's Board of Directors and a summary of its work (link) was published in 2024. Resilience of the business model (SBM - 3) Positioning in the value chain: ⇐ : upstream/ ❏ : direct transactions/ ⇒ : downstream Time horizon: ST: short term/MT: medium term/LT: long term : material ❏ : non - material 3 Topics Positioning in the value chain IRO Description Time horizons Reference Materiality * ❏ * ST MT LT E1 - Climate change adaptation ■ ■ ■ Impacts Contribution to exacerbating the effects of climate change, particularly with air conditioning equipment and/or the soil artificialisation. In the event of misadaptation, the impact on people's safety and well - being can be severe. Positive impact: participation in urban resilience at the regional level, for example by countering the effects of urban heat islands. ■ ■ ■ 3.2.1.1.11 ■ Risks Physical risk related to the occurrence of a natural disaster. Financial risk related to the obsolescence or devaluation of certain assets and increased insurance costs. Opportunities Strengthening portfolio resilience. E1 - Climate change mitigation ■ ■ ■ Impacts Strong sectoral impact: the building sector represents 28% of French emissions. Positive impact: contribution to the energy renovation of the portfolio. ■ ■ ■ 3.2.1.1.11 ■ Risks Risk to the attractiveness of the buildings, especially due to increased expenses for customers. Risk to the liquidity of the asset in a regulatory context encouraging energy - efficient buildings. Significant financial and reputational risk in the event of a class action lawsuit for inaction on climate change. Opportunities Liquidity of assets. Strengthening competitiveness. E1 - Energy (consumption, supply, renewable energy) ❏ ■ ■ Impacts The building sector accounts for 43% of national energy consumption. The impact on the environment for a REITs can be significant if the building is energy - intensive and uses fossil fuels. Positive impact: contribution to the energy renovation of the portfolio. ❏ ■ ■ 3.2.1.1.11 ■ Risks Financial risk related to the increase in energy costs and the cost of aligning and implementing new regulations if they have not been anticipated (tertiary decree, RE2020 and European equivalents). Opportunities Liquidity of assets. Strengthening competitiveness. E2 - Pollution of air, water and soil ❏ ■ ■ Impacts The impact for human well - being is high in the sector. Potential impact on the environment during construction operations. Positive impact: soil remediation in the context of development operations. ■ ■ ❏ 3.2.2.1 ❏ Risks Risk of environmental pollution (particularly water) on buildings or development projects limited in relation to the Group's activities. Financial risk (costs of precautionary measures to avoid infiltration, any clean - up and fines in the event of pollution). E2 - Use hazardous substances ❏ ■ ■ Impacts Potential impact related to phytosanitary products and asbestos. The Covivio Hotels portfolio is mainly urban. Nevertheless, when spaces require maintenance, the use of phytosanitary products is very limited. ■ ■ ❏ 3.2.2.1 ❏ Risks Reputational and legal risk combined with a health risk from using phytosanitary products. Opportunities Creation of ecological continuities in respect of nature. Topics Positioning in the value chain IRO Description Time horizons Reference Materiality * ❏ * ST MT LT E3 - Water (consumption, supply) ■ ■ ■ Impacts Pressure on available resources. The use of water is omnipresent in the hotel business (showers, catering, swimming pools) and is increasing as hotels upscale. ❏ ❏ ■ 3.2.3.1 ■ Risks Physical risk: flooding, rising water levels. Business continuity risk in the event of restrictive measures. Risk of image: hotels, particularly with swimming pools, may be targeted by the media and associations during water restriction periods. Financial risk, an average 10% increase in the price of water in France in 2023. E3 - Marine resources ■ ■ ■ Impacts The impacts are mainly related to catering for the hotel business: supply of fish, shellfish. The abstraction of groundwater is not significant for Covivio Hotels. ❏ ❏ ■ 3.2.3.1 ❏ Risks Reputational risk and fines (fairly limited). Financial risk related to the increase in costs (hospitality) with the implementation of responsible sourcing. E4 - Biodiversity policy and actions ■ ■ ■ Impacts The impact of Covivio Hotels is not insignificant: land use is the pressure to which Covivio contributes the most, mainly through the purchase of construction materials, but also through its existing portfolio; hydrological disturbances and ecotoxicity related to the supply and use of raw materials for improvements and renovations as well as the electricity consumption of tenants; GHG emissions, for the same reasons. Positive impact: use of the portfolio's green spaces to contribute to ecological continuity or to bring biodiversity back to city centres (based on ecological diagnostics), mainly on large land sites. ■ ■ ■ 3.2.4.1.3 ■ Risks The financial risks are difficult to quantify and can be localised at project level: preventive measures, compensation up to and including the risk of refusal of planning permission. Significant reputational risk. E5 - Waste management & Circular economy and management of resources and materials ■ ■ ■ Impacts Operational component: Waste management is a major issue in the hotel sector (particularly for catering). Development component: Strong impact of the construction sector on waste production (46 million metric tons of waste generated by the construction industry (excluding public works), i.e . 1.5 times the production of household waste in France). Only 40 to 60% are recovered. The impacts are mainly related to the renovation activity of Covivio Hotels. This means that the circular economy must be taken into account throughout the project. Positive impact: participation in the development of the circular economy sector. ■ ■ ❏ 3.2.5.1 ■ Risks Operational component: The financial risk is limited, although there is an increase in the cost of waste management. The risk to business continuity in the hotel industry is solely related to external factors ( e.g. strikes by refuse collectors). This risk is heightened in the hotel sector, with an even greater reputational risk because of the commercial aspect. Development component: Financial risk difficult to estimate but the risk of difficulty in supplying certain resources (timber) can delay projects and increase costs. Reputational risk at project level: revaluation becomes a key element, including in the communication of companies in the sector. 3 Topics Positioning in the value chain IRO Description Time horizons Reference Materiality * ❏ * ST MT LT S1 - Working ❏ ■ ❏ Impacts Impact on labour relations in the event of operational organization difficulties (management of working hours, workload, absenteeism). Impact on employee health/safety related to working environments that can be demanding at times, and to stress at work. Impact on the well - being of affected employees. Limited impact at Covivio Hotels level due to its direct activities and its commitments to equal opportunities. Impact on Human Rights: limited in terms of frequency but could be significant in terms of employee well - being if it occurred (in relation to the personal data protection aspect). ■ ❏ ❏ 3.3.1 ■ Risks Working conditions: Health/Safety risk: workplace accidents (falls, cuts, burns in the kitchen)/occupational illnesses and financial risk: cost of additional recruitment. Equal opportunities: Possible risk of loss of skills and know - how in the event of high turnover or low ability to attract, retain and develop talent and Financial and reputational risk: in France, the maximum fine for discrimination is €45,000 (and 3 years' imprisonment). Human rights: Financial and/or reputational risk: growing demand from investors and rating agencies. conditions Opportunities Business continuity. Employer brand. ■ ■ Impacts Maximum impact on the well - being and health/safety of people on construction sites. Impact on Human Rights, particularly with certain precarious jobs (part - time, temporary contracts, temporary work). ■ ❏ ❏ 3.3.2.1.3 ■ S2 - Working Risks Limited criminal risk in the construction activity because criminal liability lies with the contractor. Significant reputational risk in the event of an accident on one of the construction sites or in an operational site. Criminal risk in the event of discrimination or human rights violations. conditions and ■ respect for Human Rights in the value chain Opportunities Relationship reputation. of trust with suppliers; brand appeal; Impacts Impact mainly related to hotel operations. Positive impact linked to contributing to boosting the local economy and regenerating districts. S3 - Societal involvement -integration in the ❏ ❏ ■ Risks Risk to business continuity: community integration and integration into the ecosystem is essential, particularly in the context of renovation projects. Risk of asset obsolescence due to poor accessibility (PRM and public transport). High reputational risk, plus the risk of the project not being completed. ❏ ■ ■ 3.3.3.1.3 ■ sustainable city S3 - Rights of indigenous peoples ■ ❏ ❏ Impacts The main impact is a supplier's failing to respect the rights of indigenous peoples, particularly with regard to the extraction and production of raw materials. ❏ ❏ ■ 3.3.3.1.3 ❏ Risks Reputational risk in the event of an incident occurring on Covivio's value chain. S4 - Information for customers and end - users ❏ ■ ■ Impacts Direct impact on customer satisfaction, who may consider Covivio Hotels responsible for the failures. ■ ❏ ❏ 3.3.4.1.3 ■ Risks Financial risk related to data protection (GDPR sanctions up to 4% of a company's revenues in the event of a breach). Reputational risk: the principle of Name and Shame in the event of GDPR infringement. Opportunities Long - term financial stability. Topics Positioning in the value chain IRO Description Time horizons Reference Materiality * ❏ * ST MT LT S4 - Customer ❏ ■ ■ Impacts The impact on the health of occupants has become a major topic since the Covid pandemic in 2020. Direct impact on customer satisfaction, who may consider Covivio Hotels responsible for the failures. Positive impact: contribution of the well - being to occupants. ■ ❏ ❏ 3.3.4.1.3 ■ Risks Risk of building security or asset resilience defects, resulting in an inability to manage major crises that could cause an incident, accident or health risk, or even engage the company's liability. and end - user safety Opportunities Long - term financial stability. S4 - Social inclusion of customers and end - users ❏ ❏ ■ Impacts Impact on the well - being of employees and/or customers with disabilities if hotel buildings and services are not optimised to cater for all users. ■ ❏ ❏ 3.3.4.1.3 ❏ Risks Financial risk: Accessibility topics are well covered in Covivio's countries of operation. Nevertheless, the process of bringing certain hotels into conformity is complex. Opportunities Long - term financial stability. G1 - Business ethics ❏ ■ ❏ Impacts The impact of late payments for suppliers is significant and leads to business failures: one in four bankruptcies at VSEs is caused by late payments. It also creates employment tensions with domino effects. ■ ❏ ❏ 3.4.2.1 ■ Risks Risk to the relationship of trust with stakeholders who could consider the company to be an at - risk partner in the event of confirmed corruption. Reputational and financial risk, or even a curb on the development of activities in the event of a breach of the profession's code of ethics and the Group's internal regulations. Opportunities Identification of Covivio as a reliable player. ■ ❏ Impacts The impacts are mainly related to the environmental performance of the real estate portfolio, which may have an effect on the environment and the well - being of customers. ❏ ■ ■ 3.1.3.2 ■ Sectoral challenges - Risks Financial risks: holding assets with low potential for value creation; loss of attractiveness of the portfolio or additional cost of work; competitive disadvantage due to lack of certification or unattractive locations; cost of additional certifications and labels to meet market expectations. Fight against ❏ building obsolescence Opportunities Liquidity of assets. Reputation. Identify and manage sustainability - related impacts, risks and opportunities (IRO) Identification and assessment of material issues (IRO - 1) Building on the work carried out to date, in particular the risk mappings (3.1.2.2.5) and the materiality matrix published in previous fiscal years, Covivio carried out a double materiality analysis using the methodology presented below. This analysis was developed at Group level and covers all activities and the value chain. Double materiality analysis methodology IDENTIFICATION OF IMPACTS, RISKS AND OPPORTUNITIES (IRO) ASSESSMENT OF IRO MATERIALITY SUMMARY OF ANALYSIS AND VALIDATION OF RESULTS Assessment for each identified CSR issue of: Occurrence Positive or negative impacts on the issues Financial risks (scale based Major challen on Group risk mapping) Opportunities 3 All challen ges Definition of the universe of issues (CSRD + specific to Covivio) Characterisation of issues for the company Identification and analysis of IROs ges         Financial materiality Impact materiality Environment Social / Societal Governance Preparatory work and defining the universe Before the issues were rated, preliminary work was performed to define the universe of issues based on the CSRD's list of issues. This work was based on both internal and external documentary research. Internally, the analyses and work conducted up to 2024 helped to shape the framework for defining the issues, including: the results of the materiality analysis published up to the previous financial year; risk mapping: Group, CSR, purchasing/CSR, cyber, corruption. This work was particularly important for the development of Covivio's general risk profile; previous reporting from both a social and environmental standpoint, with significant historical data; studies commissioned by Covivio: MSCI Climate Value at Risk, WRI Baseline Water stress, mapping of protected areas, costing of carbon trajectory - related investments, Global Biodiversity Score, socio - economic impact; the policies implemented: Responsible Purchasing, Diversity Charter, Ex - Aequo, Nature strategy, etc. Externally, Covivio has drawn on the work of the European Commission, ADEME, INSEE, the OID (notably via the Responsible Real Estate Barometer) or international organizations such as WRI, ENCORE or CDP. This work has resulted in the identification of a universe of 20 issues based on the 10 topical ESRS and one additional issue to cover sectoral topics not covered by the regulations. These issues are detailed in the matrix presented in 3.1.2.4.2. IRO rating methodology The rating methodology was developed in accordance with the principles of the CSRD and based on previous risk maps produced with the support of the Audit and Internal Control Department. Rating sub - criteria have been defined to assess firstly the impact (impact materiality) and secondly the level of risk and opportunity (financial materiality). Each rating (on a scale of 1 to 4) is then weighted by the frequency of occurrence according to the probability of occurrence within a given time horizon (generally three years except for certain risks requiring a longer analysis horizon such as climate). Risks are rated as gross risks, before any risk control measures. Sub - criteria used Criteria rated from 1 (low) to 4 (critical) Impact materiality Extent and irremediability Physical and/or psychological well - being Fauna, flora, environment Competitors' markets and operations Importance Single event or impact on society as a whole Financial materiality Financial risks Impact on revenues or asset value Reputation/Image Media interest and risk of negative publicity Business continuity Risk of interruption of one or more activities Involvement of top management Level of management involved in risk management Rating of issues In order to simplify the rating of the issues, various workshops were held with all the Group's departments, which also enabled the teams' awareness of the CSRD to be raised. These workshops mobilised nearly forty Group managers, involving governance with six members of the Executive Committee represented during the workshops and the majority of local ROCs. As the previous materiality analysis had involved external stakeholders and the different departments involved working with the Group's external stakeholders (investors, customers, suppliers) on a daily basis, it was not considered necessary to involve them in this new rating exercise. Nature was also taken into account as a silent stakeholder. These workshops, organised between the last quarter of 2023 and the beginning of 2024, were held as follows: presentation of the context and purpose of the CSRD; presentation of the concept of dual materiality and the methodology for rating issues; presentation of each issue illustrated by the documentary research already carried out and invitation of participants to discuss risk levels; consolidation of the scores, which were sent to the participants for review before validation and consolidation at Group level. This consolidation was performed by the Sustainable Development Department taking the weighting of each activity in the Group into account. The average scores obtained per issue multiplied by the frequency were then re - weighted taking the maximum score for each category (impact materiality and financial materiality) into account. Adaptation of the analysis to the activities of Covivio Hotels The activities of Covivio Hotels were included in the Group's initial rating. However, additional interviews were conducted to adapt the weighting of the scores to the hotel business. The main adaptations concern: S1 - Own workforce: the subject can be merged ( vs 3 sub - issues at Covivio level: Working conditions, diversity, Human Rights) given the importance of the HR subject in the hotel industry, with important issues related to respect for Human Rights and diversity. E3 - Water: this subject is more material given the more significant operating risk for hotels. E5 - Waste management: this issue is more material, with operational issues related to plastic and food waste. E5 - Circular economy and E4 - Biodiversity: the level of impact is lower for Covivio Hotels, because there are fewer developments and refurbishments. These adaptations only resulted in a few changes to the selection of material issues, with the main adjustments being made to subjects that were already material for Covivio. However, it was decided to increase the importance of Waste Management in the Group matrix. The process presented in this document is the same as for Covivio Hotels. The dual materiality matrix was validated by Covivio Hotels' steering Committee in October 2024 and presented to the Supervisory Board in November 2024. The CSRD and the CSR and associated reporting are managed at Group level. The sustainability report for Covivio Hotels is based on the Covivio report, by taking its specific characteristics into account, and applies the same procedures for data collection and validation. Additional information was collected to more fully integrate the assets held as operating properties, especially regarding human resources. Results of the double materiality analysis (IRO - 2) The matrix presented below is the result of the rating exercise as detailed in the previous section. It has been shared and validated as follows: Q1 2024: Presentation to workshop participants and the CSRD steering committee; April 2024: Presentation to the Executive Committee and the CSR Committee for consultation; September 2024: Presentation to the Audit Committee for validation. Material issues are those for which a score greater than or equal to 2 has been obtained for either impact materiality or financial materiality. Materiality impact Covivio Hotels dual materiality matrix E1 -Climate change  adaptation  E5 - Circular economy, resources and management of waste E1 - Climate change mitigation  +1 - Combating obsolescence S1 - Own workforce of buildings (sectoral) (working conditions,  S3 - Societal commitment - sustainable city E2 - Hazardous E2 - Pollution of substances air, water and S4 - Social inclusion of   and customers and Rights end-users Working conditions respect for Human  S4 - Information for customers in the value chain and end-users E3 - Water  diversity, Human Rights) E4 - Biodiversity  E1 - Energy soil S2 - E3 - Marine resources S3 - Rights of indigenous populations  S4 - Customer and end-user safety  G1 - Business ethics 3 Environment Social (see section 3 .5) Governance Financial materiality The list of data points reported is presented in section 3.5.1 Update of the dual materiality matrix An assessment of the relevance of the subjects considered as material must be performed every year in order to: incorporate feedback following publication by peers; include any sectoral elements that may be identified; check consistency with the Group's risk mapping. A full update will be performed every three years to reassess the relevance of the method and the IRO ratings, resulting in a new validation by the governance body. Action plan (MDR) Covivio set itself a CSR action plan in 2010. Revised every five years, this plan has been adapted to integrate the ESRS and new objectives related to the Nature strategy unveiled in 2024. The operational breakdown of these objectives and the specificities by portfolio are specified in the sections relating to each ESRS of this report. Objective of the Nature strategy Objective of the Purpose Covivio Hotels distinguishes several scopes according to its degree of control and the relevance of each action for the topics: corporate: concerns activities and employees related to Covivio Hotels head office; The "Covivio Hotels" scope covers all the activities. M&F Hotels: concerns the hotel management activity of Covivio Hotels, via its hotel platform WiZiu or mandated third - party managers. REFERENCE ESRS MAIN OBJECTIVES SCOPE DEADLINE 2024 COMPLETIONS PROGRESS Sector - Asset obsolescence Hold 100% environmentally certified assets Covivio Hotels End of 2025 97.5% of the hotel real estate portfolio certified at the end of 2024 ●●●●❍ 100% of Hotel in operation certified with Green Key Operating properties End of 2025 90% of hotels managed by WiZiu Hotels and 43% of all operating properties certified at the end of 2024 ●●❍❍❍ E1 - Climate (Mitigation) Reduce GHG emissions by 70% compared to 2010 (in intensity per kgCO 2 e/m ² /year, operation) Covivio Hotels End of 2030 53% reduction in carbon emissions at the end of 2024 ●●●●❍ E1 - Climate (Adaptation) Mapping 100% of assets with regard to climate risks Covivio Hotels Permanent 100% of assets included in the MSCI analysis. ●●●●● E1 - Climate (Energy) Reduce energy consumption by 25% between 2010 and 2035 Covivio Hotels End of 2035 -14% at the kWhfe/m ² ) end of 2024 (179 ●●●❍❍ E2 - Pollution Managing environmental and health risks (including due diligence in the acquisition phase) Covivio Hotels Permanent 100% of sites are monitored and controlled ●●●●● E3 - Water Reduce water consumption by 10% compared to 2024 Operating properties 2030 1.13 m 3 /m ² at the end of 2024 on the operating scope N/A Control water consumption by not exceeding the established threshold of 2 m 3 /m ² /year Covivio Hotels Permanent Threshold respected: 1.42 m 3 /m ² for the portfolio ●●●●● E4 - Biodiversity Map 100% of the portfolio concerning the proximity of sites to natural areas Covivio Hotels Permanent Completed in 2024 ●●●●● Achieve net zero artificialisation across the pipeline and 90% of operations as biodiversity positive. Group - Development End of 2030 Measurement of impacts via the CBS tool developed by Covivio, to be deployed for Hotel operations N/A E5 - Circular economy Set a multi - year waste production target for directly managed hotels Covivio Hotels 2025 Not initiated at this stage, waste reporting coverage rate of 43% in 2024 ❍❍❍❍❍ Promote a circular economy approach in development projects Covivio Hotels Permanent Not applicable for the moment due to the absence of ongoing developments N/A Increase the use of bio - sourced, recycled and reused materials Covivio Hotels 2026 N/A REFERENCE ESRS MAIN OBJECTIVES SCOPE DEADLINE 2024 COMPLETIONS PROGRESS S1 - Own workforce Attract, develop and retain talent Covivio Hotels Permanent Reporting on the Covivio Hotels operating properties scope Diversity of HR policies because of the number of brands - the launch of the WiZiU brand will enable a more homogeneous HR policy to be structured on this scope. ●●❍❍❍ Promoting diversity and equality Corporate Permanent Covivio - wide ex aequo programme to raise employee awareness of gender equality ●●●●❍ Measure the well - being of teams every two years Corporate Permanent Employee satisfaction survey conducted in 2023 at Covivio level ●●●●● Engaging employees in commitments of the Group Corporate Permanent Employee involvement in various CSR actions: Covivio for Climate (C4C) project to raise employee awareness of sustainable development ●●●●❍ S2 - Workers in the value chain Have all our key suppliers sign the Responsible Purchasing Charter Corporate 2025 Content of the Responsible Purchasing Charter updated in 2024 New system launched in 2022 based on the EcoVadis solution. ●●●❍❍ 100% of calls for tenders subject to a CSR questionnaire Corporate and development 2026 Calls for tenders for works > €200K Corporate calls for tenders > €50K ●●●❍❍ S3 - Affected communities Get involved in initiatives to boost the regions Covivio Hotels Permanent Socio - economic impact study on all the Group's activities in Europe; 17,000 jobs supported in 2023 (study conducted in 2024). ●●●●● Promoting Human Rights and Equal Opportunities Covivio Hotels Permanent Publication of Covivio's Human Rights Policy. Around twenty associations supported by the Covivio Corporate Foundation. ●●●●● S4 - Customers and end - users Optimising tenant and hotel guest satisfaction Covivio Hotels Permanent Measurement of end - customer satisfaction via questionnaires, monitoring ratings and opinions expressed by users on the Internet (platforms, etc.) ●●●●❍ Ensure a high level of connectivity within our buildings Covivio Hotels Permanent Quality of connectivity in order to: for customers: support professional and personal activities, for hotels: hotel services, increase operational efficiency (check in/ check out, etc.) ●●●●❍ Having 90% of assets located less than 1 km on foot from public transport Covivio Hotels Permanent 97% of the portfolio is less than 500 m from public transport, and 99.5% less than 1 km on foot from public transport. ●●●●● G1 - Business ethics Whistleblowing system with platform Covivio Hotels Permanent System included in the scope of Covivio's Ethical Charter, given to all its partners ●●●●● Disseminate and share best ethics/ anti - corruption practices with all employees Corporate Permanent 100% of employees trained in Process Morning sessions and on the principles of the Ethical Charter ●●●●● 3 3.1.3 Combating asset obsolescence (sectoral challenges) The dual materiality analysis conducted by Covivio in 2023/2024 and applied for Covivio Hotels, confirmed the challenges related to the risk of building obsolescence. Buildings can face this risk, with an impact on their value, if they are not regularly upgraded to respond to the challenges of ecological and digital transformation, or do not take societal changes or requirements for fiexibility and services sufficiently into account. This subject interacts strongly with the other material issues presented in this report, in particular concerning the energy and carbon performance (ESRS E1) of assets and the qualities of the building in terms of well - being and safety for occupants (ESRS S4). 3.1.3.1 Policy on the fight against building obsolescence (certifications, societal changes, smart building) Management and implementation of the obsolescence policy The policy to combat asset obsolescence is included in the Sustainable Development governance plan which is presented in The battle against the obsolescence of the portfolio of Covivio and its subsidiary Covivio Hotels is being fought with a high level of ambition, in terms of the design and management of the buildings. Covivio therefore owns buildings that are very accessible and meet high standards, particularly in terms of connectivity, comfort and well - being. They are designed to offer maximum flexibility, so as to accommodate different types of users and organisations, and to provide long - term support to operators as their needs evolve. Open to the city, the gardens and terraces of the buildings are created to be real levers for biodiversity and contribute to the well - being of the occupants. Eco - designed and eco - managed, the buildings owned by Covivio aim to provide bespoke solutions tailored to each stakeholder, whilst ensuring that the building is integrated into its environment as seamlessly as possible. This strategy applies to the different assets held, given the specificities of each activity. The policy to combat building obsolescence also covers energy consumption and carbon emissions, major criteria which are examined in the ESRS E1. Identified in the double materiality matrix (ESRS 2, section 3.1.2.4.2) as a major risk and impact, the topic of "Asset obsolescence/Green ...

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