Sustainability Highlights

ESG Strategy Launch

In 2022, CTP took several steps to formalise and institutionalise its ESG strategy across the Group. CTP developed a pillar approach to systemise topics that the Company considers material. The “pillars” are: striving to be climate positive; embedding parks in communities; stimulating social impact and well-being; and conducting business with integrity. These pillars capture focus areas and represent interlinked groups of activities. As CTP grows and evolves, so too does its ESG strategy. The Company ensures that it regularly updates its ESG strategy to focus on the most material topics and have the greatest possible impact. This year materiality assessment has led to better understanding of material topics, update of the strategy, and set up of relevant KPIs.

Ratings

STANDARD & POOR’S GLOBAL CORPORATE SUSTAINABILITY ASSESSMENT

The S&P Global Corporate Sustainability Assessment (“CSA”) and ESG Evaluation are annual assessments of the sustainability practices of over 10,000 companies from around the world. The CSA focuses on sustainability criteria that are both industry-specific and financially material. CTP participated in S&P’s CSA assessment for the first time in 2022 and obtained an evaluation result of 67, with no material impacts.

SUSTAINALYTICS

In January 2023, CTP received an ESG Risk Rating of 10.2 and was assessed by Morningstar Sustainalytics to be at Low Risk of experiencing material financial impacts from ESG factors. In no event shall these results be construed as investment advice or expert opinion as defined by the applicable legislation.* *
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Prepartion for GRESB Real Estate Assessment

CTP continuously seeks to improve its ESG credentials. As such, in 2022 the Company did an internal trial run for the GRESB Assessment and is committed to participate and publish the results in 2023. Following trial multiple actions has been taken to systemize approach to ESG. The GRESB Real Estate Assessment is a global standard for ESG benchmarking and reporting for companies that invest directly in real estate.

ESG Committee established

To improve governance of ESG topics including climate related risks and opportunities within the Group and to enhance Board oversight, in 2022 CTP established the ESG Committee. The ESG Committee consists of non-Executive Directors and guests, including Executive Directors and the Group Head of ESG. Committee meetings will be accompanying Board meetings on a regular basis and will make sure ESG is integral part of overall CTP strategy and ESG and climate related targets are followed up.

Double Materiality Assessment

During the second half of 2022, as part of refining the Company’s ESG strategy, CTP conducted its first double-materiality assessment. Double materiality assessments evaluate the impact of the Company on ESG matters and the potential financial impact of ESG matters on Company performance. To ensure objectiveness the process was led by an external consultant and consisted of desk research, industry review, and multiple interviews and surveys. Outcome of the assessment has been used to adjust strategy and define relevant KPIs.

Science Based Target Initiative (SBTi)

CTP embraces alignment with the Paris Agreement and aims to achieve carbon neutrality in all Scopes in line with its assumptions. Based on data collected in 2022, CTP will develop a detailed climate roadmap to be approved by the Science Based Targets initiative (SBTi). Carbon data for 2022 went through independent limited assurance done by Arcadis.

Operator

Sustainable management of the Group’s portfolio is essential to ensure the best possible impact on the environment. In the Czech Republic, Romania and Slovakia, CTP has introduced ISO 140001 and ISO 50001 standards to improve environmental and energy management. Socially and environmentally focused activities are described in Section 4.2.

Developer

CTP has developed lifecycle assessments of selected properties to select priority materials to reduce the embodied carbon footprint of its development activities. At the same time, the Company is developing its first projects utilising heat pumps as the only source of heating. This is an important step to develop properties that do not use any fossil fuels at the operational stage.

CTP continued certifying properties under the BREEAM scheme throughout 2022. Starting in 2023, BREEAM New Construction at the Very Good level or higher will be used for all new constructions to support the reduction of embodied carbon and alignment with EU Taxonomy requirements for activities related to the construction of buildings. To date, CTP has built seven buildings that were awarded the highest BREEAM Outstanding level. Other socially and environmentally focused activities are described in Section 4.2.

Physical Climate Risk

In 2022 CTP conducted a physical climate risk assessment to verify acute and chronic physical climate risks. The tool makes use of nine different climate scenarios, from REMIND (1.5 °C) to the IPCC (5 °C) looking towards 2100 and analysisclimate risks considered potentially material for the company that nclude coastal flooding, extreme heat, extreme cold, fluvial flooding, tropical cyclones, water stress and wildfires. Based on the outcome of analysis material climate risks has been selected. Given the geographical distribution of itsproperties, collective adaptation measures being implemented in countries and buildings’ robust design and construction, CTP does not foresee any analysed climate risk that can significantly affect its financial performance in the near future.

Photovoltaics

During 2022, CTP increased its installed photovoltaic (“PV”) capacity from 6MWp to 38MWp and established a dedicated Energy function at the Group and country levels. The target for 2023 is to have at least an additional 100MWp installed.

Science Based Target Initiative (SBTi)

CTP embraces alignment with the Paris Agreement and aims to achieve carbon neutrality in all Scopes in line with its assumptions. Based on data collected in 2022, CTP will develop a detailed climate roadmap to be approved by the Science Based Targets initiative (SBTi). Carbon data for 2022 went through independent limited assurance done by Arcadis.

EU Taxonomy Assessment

CTP’s 2022 Annual Report presents the Company’s first EU Taxonomy alignment. Each year CTP expands its ESG disclosure. EU Taxonomy, among other disclosures, led to the development of internal Company processes and policies for ESG data collection and management during 2022. Disclosure on EU Taxonomy and the introduction of its technical criteria into operations is another step to make CTP operations more sustainable. CTP’s sustainability ambitions are aligned with EU Taxonomy requirements.

EPRA Reporting

CTP uses EPRA best practice reporting (“BPR”) in its annual reporting. This includes sustainable BPR (“sBPR”). Sustainability KPIs can be found in the Appendix to this Annual Report.

TCFD Reporting

CTP introduced Task Force on Climate-related Financial Disclosure (TCFD) recommendations in its 2022 reporting. Governance, strategy, risk management and metrics are disclosed in this Annual Report.

Green Bond Reporting

CTP has issued Green Bonds for a total amount of €4.25 billion. Green Bonds are issued based on CTP’s Green Bond Framework, which is not related to the EU Taxonomy. Use of proceeds is reported annually in CTP’s Green Bond Report. Proceeds from Green Bonds are allocated to finance the development of sustainable buildings for CTP’s portfolio. EU Taxonomy disclosure is not adjusted using proceeds from Green Bonds.

First Sustainability Reporting

During 2022, CTP did the necessary preparatory work to publish its first standalone Sustainability Report, which will be available in 2023. The publishing of this separate report provides space to describe the Company’s activities in the field of ESG in detail. The report is intended to be published in accordance with the GRI (Global Reporting Initiative) framework and will contain TCFD recommendations.

Clubhaus

To support the Company’s efforts to embed its parks into the communities where it operates, CTP has introduced the Clubhaus mixed-use development concept to select park locations. As part of its park strategy, CTP develops common spaces that serve the employees of tenants and local communities. CTP’s Clubhaus offers space for meetings, educational activities, social gatherings, medical services, a cafeteria, convenience store and canteen as well as outdoor facilities and can be used free of charge by the park community.

Advanced renewable energy management system introduced in Amsterdam

In 2022 CTP introduced an advanced renewable production and management program at CTPark Amsterdam City, a multi-story and multi-tenant 120,000 sqm development in the Western Docklands district of Amsterdam. It is equipped with approximately 6MWp of photovoltaics and 10 wind turbines to supply renewable energy to meet the tenants’ needs as well as to serve 100 EV charging stations for cars, vans and trucks. A dedicated energy management system is put in place that optimises energy production, storage (battery) and consumption. It is an important step for the Company to gain practical experience developing self-sufficient buildings and parks in the future.