Sustainability Report 2024 – Covivio Hotels

1. General information 86

   1. Editorial by the Chief Executive Officer 86

   2. General information (ESRS 2) 87

   3. Combating asset obsolescence (sectoral challenges) 112

2. Environmental information 117

   1. Climate change (ESRS E1) 117

      1. Business conduct policies and

         corporate culture (ESRS G1) 228

         1. Governance based on ethics

            and transparency (GOV-1) 228

         2. Policies related to business conduct

            and corporate culture (G1-1) 229

         3. 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

         4. Preventing risks of corruption and bribery

            1. Resource use and circular economy

               (ESRS E5) 171

            2. Contributing to the implementation

            of sustainable finance 180

3. Social information 186

   1. Own workforce (ESRS S1) 186

   2. Working conditions and respect for Human

      Rights in the value chain (ESRS S2) 203

   3. Affected communities (ESRS S3) 212

   4. Consumers and end-users (ESRS S4) 221

4. .7 Supplier payment terms (G1-6) 237

1. CSR performance 238

   1. Cross-reference table 238

   2. List of assets and compliance with Green

      Bonds criteria 249

   3. Regulatory tables related to European

      taxonomy 254

2. Independent third party audit 260

   1. Sustainability information certification

      report 260

   2. Independent third party verification -

1. General information
   1. 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)

      1. first annual reviewby the World Weather Attribution institute published this Friday, December 27, 2024, in collaboration with the Climate Central research institute

      2. CSRD : Corporate Sustainability Reporting Directive

      3. CRREM: Carbon Risk Real Estate Monitor.

      4. Covivio and Accor unveil the hotel Novotel Bruges Centrum - Covivio

      5. TCFD/TNFD: Taskforce on Climate/Nature Financial-related Disclosures.

   2. General information (ESRS 2)

      1. 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:

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         • 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 CO2emissions 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.

         1. 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 policyin 2022, updated in early 2025;

            • a Human Rights policyin 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

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              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.

      2. 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

• 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.

Hotels in Europe

1. 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:

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   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

SOCIETAL

SOCIAL

GOVERNANCE

1. • 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

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     NATURE GOVERNANCE

     COUNTRY LEVEL

     GROUP LEVEL

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     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.

2. 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.

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   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.

3. 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.

4. 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

   1. Achievement of the portfolio's annual operating carbon intensity objective (in kgCO2e/m²) in order to achieve the objectives of the CRREM 1.5°C scenario in 2030, i.e. 21.1 kgCO2e/m²) in 2025 (or 2024 equivalent if 2025 data are not available at the reporting date)

5. Risk management and internal controls regarding sustainability reporting (GOV-4; GOV-5)

• 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

PURPOSE

Building well-being and lasting relationships

1. 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.

2. 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

1. Identify and manage sustainability-related impacts, risks and opportunities (IRO)

   1. 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

All challen

Definition of the universe of issues (CSRD + specific to Covivio) Characterisation of issues for the company Identification and analysis of IROs

1. • 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.

2. 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.

1. Action plan (MDR)

1. Co-inventing a new real estate

   The focus of several programmes developed by Covivio is on a mix of functions: offices, co-working spaces, hotels, residential, street-level shops and even co-living. These programmes are designed in a spirit of cooperation with stakeholders and help to

   enhance the appeal and influence of the districts where they are located. Proximity and personalised customer relations are at the heart of Covivio's culture. Covivio regularly conducts satisfaction surveys on a variety of topics to continuously meet customer expectations and develop the Group's services and processes. Action plans are deployed following these surveys, thereby guaranteeing customers that their needs are being carefully listened to and quickly taken into account. The offer of services focuses on a simple and fluid path and flexible and personalised spaces, for a constantly renewed experience.

   According to a report published by Booking in 2024 (1), 62% of respondents favour stays that respect the planet, include elements of the local culture and promote enriching exchanges with communities.

1. Surpass construction standards

   A large number of operators believe that energy and environmental performance has become a prerequisite, likely to influence their choice of hotel locations. In addition, criteria contributing to the well-being of their customers and employees are becoming increasingly important to their choice of location (user-friendliness, services, connectivity, accessibility, etc.). Covivio Hotels incorporates these new expectations into the buildings it develops, leases, manages and renovates, by exceeding standards with the use of certifications and labels (3.1.3.1.3), as

   well as innovative solutions that go beyond legal obligations and anticipate changes in regulations.

   1. The latest report from Booking.com on sustainable travel highlights the challenges faced by consumers and underlines the need for collaboration between different sectors.

   As a developer, Covivio engages its stakeholders in its construction sites, through a strong partnership relationship and detailed procedures. For each certified project, four key documents qualify the technical and environmental performance: environmental notice, management system for the operation, assessment of the environmental quality of the

   building (HQE or BREEAM), and the low-nuisance construction site charter. They commit all those involved in the project and

   detail the environmental principles to be followed, as well as specific objectives adapted to each project. It draws up a list of recommendations on the following subjects (at minimum): waste, acoustics, consumption of resources, communication with local residents, materials, communication with local residents, social

   aspects (comfort, safety, well-being). The charter explains each person's roles and sets specific objectives: for example, aim for

   85% construction site waste recovery, limit the maximum noise level on the construction site to 80 dB (A), use 80% PEFC or FSC certified wood. etc.

   100% of the hotels managed by WiZiU will be Green Key certified by the end of 2025, i.e. 24 hotels (EPRA Cert-Tot)

   The Green Key label (Green Key in France) is present on all continents, in 77 countries and on more than 6,700 sites (hotels, restaurants, campsites, etc.). Green Key is the first international eco-label for tourist accommodation. This label was launched in France in 1998 under the name Clef Verte. France is the second

   country in the world to have developed the Green Key label, and has been the first country for the number of certified hotels since 2021.

   The criteria applied by the approved hotels are as follows:

   • implementation of an environmental policy and a socially responsible approach;

   • smart waste management (reduction at source, collection and recycling);

   • control of energy and water consumption;

2. Building certification policy

   Covivio Hotels develops proportionately few new buildings and usually acquires existing buildings to complete a portfolio of 283 buildings in operation. Covivio has chosen to classify the performance of its new buildings using comprehensive, internationally recognised certificates, such as HQE, BREEAM or

   LEED. Similarly, Covivio uses BREEAM In-Use or Green Key certifications to enhance the quality of its CSR management, in

   order to improve the performances of its operating portfolio. In addition, the tenants of its leased buildings use labels dedicated to the hotel and leisure sector: Green Key, Green Globe, GSTC, etc.

   Covivio, which is a partner in developing certain labels, is also a pioneer in experimenting with new standards such as R2S, BiodiverCity and, more recently, by committing to the creation of a Europe-wide low-carbon label, LCBI, and developing the BBCA Hotel label, with the support of the BBCA association.

   Focus on new developments

   Covivio has made several commitments in terms of certifications and labels for its development projects as part of its green financing and CSR objectives. These principles apply to projects classified as new construction or major renovation. They do not apply to small renovations or building extensions, for example.

   • Goal of global environmental certification (HQE/BREEAM/ LEED/DGNB) and compliance with European taxonomy: all developments (new constructions and major refurbishments) must comply with European taxonomy and/or aim for certification at a level greater than or equal to Excellent/Gold.

   • Specific labels:

     • carbon (BBCA Hotels): designates the building's low-carbon performance;

     • operations: Green Key, Green Globe, GSTC, etc.

       This policy reinforces Covivio's commitments to taxonomy compliance for its development projects (ESRS E1).

   • Responsible Purchasing (in particular for food and maintenance);

   • active customer awareness.

   3

   
   
   

   The certification process involves regular audits and the collection of supporting evidence to confirm the credibility of the hotel's approach. In practice, in order to retain the label, improvements must be made each year based on the criteria specified by the label.

   This label has a large audience, particularly among business customers.

3. Continuing to innovate to remain a pioneer

   Although innovation means introducing new products, services or processes to the market, these only have meaning for Covivio if they succeed in transforming the ways in which its customers work, travel or live in a sustainable way. Covivio's innovation strategy has been consistent for several years and is based on fostering the development of new uses, improving the quality of its assets and, lastly, focusing on open innovation.

   Covivio's innovation strategy is based on two pillars:

   • identifying and facilitating the use of new processes and materials to make buildings more resilient;

   • deploying new offers and systems that improve comfort and services to occupants.