Hammerson : 2019 Sustainability Report

Sustainability Report 2019

OUR JOURNEY TO NET POSITIVE

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

Contents

1 . I N T R O D U C T I O N

P . 0 2

This section includes our approach to sustainability; performance against targets; our response to key sustainability risks, and an overview of our stakeholder engagement

2 . N E T P O S I T I V E

P . 3 4

This section explores our journey to Net Positive including our approach; principles for balancing projects; our progress against our Net Positive targets, and highlight projects

2.1	2.2				2.3	2.4
Carbon	Resource	Water	Socio-
	Use		economic
						impacts

P.45	P.53	P.61	P.69
3 . O U R D A T A			P . 76

This section explains our basis of reporting including data boundaries, collection and verification. It includes all Net Positive, GRI And EPRA tables, the industry standards and certifications which we report to and our corporate data

COVER IMAGE:

Pulse, part of the Festival of Light at event at Westquay, Southampton.

SUSTAINABILITY REPORT 2019: INTRODUCTION

2 Chief Executive

Hammerson	Statement
	As we reach the end of a decade and look
	forward into the 2020s one cannot fail to
	acknowledge the fundamental shift in social
	attitudes and business thinking on climate change
	we have witnessed in the last ten years.

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

3

"We are focused on delivery of our target to be Net Positive for our Scope

1 and 2 carbon emissions, landlord water demand and operational resource use."

What was a relatively niche, although growing, concern for our sector in 2010 has ended the decade being acknowledged as one of the most fundamental social, political and economic challenges facing society. I am immensely proud that Hammerson has for so long been a pioneering industry leader in sustainability and look forward to the business delivering on our ground breaking targets, not just over the next 12 months, but into the forthcoming decades.

CONTINUING TO

PUSH BOUNDARIES

Looking back at my statement in our 2010 Corporate Responsibility report, sustainability was already embedded within the business and we were making progress in reducing carbon emissions. We had started building the robust sustainability strategy that has evolved into Positive Places and the Net Positive† targets that we have today. The sustainability timeline on pages

34-35 provides an interesting insight into this journey, showing our early response and how far we have come.

Carbon emissions from our like-for-like portfolio fell

12%

in 2019

2019 has been another year during which this long-term vision has supported and informed our wider business strategy and decision- making, maintaining our position at the forefront of the sector.

Carbon emissions, resource use, water and socio-economic impacts remain the key social and environmental impacts of our business operations. The benefit of focusing on these key areas can be seen in the excellent progress we continue to make against our short and medium-term targets.

We are ahead of our 2019 energy and water targets and have achieved our socio-economic objectives for the year.

Absolute carbon emissions from our like-for-like portfolio have fallen by a further 12% in 2019. In spite of a turbulent economic backdrop, the carbon intensity of the business remained stable at 122 tonnes/£m adjusted profit before tax. The carbon intensity of the group portfolio has improved by a further 10%. We have installed an additional 340MWH

of solar PV on our assets, bringing our capacity to 1.9MWp against our target of 2MWp by the end of 2020.

It is not all plain sailing; we have not yet reached our recycling targets across the whole portfolio and our French assets remain behind in this area. Waste markets have been significantly affected by changes in international policy and in demand for recyclable materials. However, ten of our UK and Ireland assets have exceeded their targets by some margin, with four achieving over 90% recycling rates. Progress is being made in improving performance

in France by working closely with our waste management partners.

4 of our UK assets

recycled over 90% of their waste in 2019

BECOMING NET POSITIVE AS A BUSINESS

In 2017 we publicly set out our target to be Net Positive for our Scope 1,

2 and 3 carbon emissions, water demand, resource use and socioeconomic impacts, by 2030. These targets are truly industry-leading. They not only align with the national and regional net zero carbon targets in the UK, France and Ireland, but also exceed the response needed to align with the Paris Climate Agreement.

Our Net Positive targets will continue to guide our Positive Places sustainability strategy in the coming decade and shape our response to climate risk, with a focus on our most material climate-related issues, in line with the Task Force on Climate-relatedFinancial Disclosures (TCFD) recommendations.

In the short term, we are focused on delivery of the first of our Net Positive targets, to be Net Positive for our Scope 1 and 2 carbon emissions, landlord water demand and operational resource used at the end of 2020. This report details our progress and plans for meeting these ambitious targets - which will be a truly remarkable achievement.

Becoming Net Positive for landlord water demand is proving extremely challenging, as anticipated. Water is an undervalued resource so, nationally, water infrastructure has suffered from relative under- investment. It also has no alternative or substitute. However, through the modernisation of our metering and our work with Thames Water we have significantly reduced potable water demand for landlord services and expect to be Net Positive for water for at least one asset by the end of 2020 (see pages 62-67).

Our medium-term targets take us to 2025 when the scope of our targets expands to include the impacts of our developments.

We are therefore starting to focus more on embodied carbon and materials. The high impact of concrete, for example, is a growing area of interest for us and one we are already working on with our contractors through the specification of recycled content in concrete and through exploring opportunities for increased use of timber.

Our 2030 Net Positive targets includes Scope 3 emissions from the tenanted spaces within our managed assets. This is the most challenging aspect of our strategy and in this report we provide examples of the work we are already doing with tenants through fit

out design standards and other projects. Our report, Reshaping Retail, sets out some of the ideas that were developed through a workshop with retailers this year.

F O R M O R E

Our 2020/2021 targets are shown on page 84.Our medium and long term targets are shown on page 15.

† See page 135for a full glossary of terms, identified in italics throughout.

Continues on next page >

SUSTAINABILITY REPORT 2019: INTRODUCTION

4

Hammerson

City Quarters at Martineau Galleries, Birmingham

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

5

< Continued from previous page

DELIVERING ON OUR LONGER-TERM STRATEGY

Looking to the longer term, our City Quarters strategy is designed to respond to the changing economic and social outlook, by utilising our existing assets differently. Residents, businesses and visitors will expect their neighbourhoods to make a positive social and environmental contribution whilst being resilient to climate change.

Building on our Net Positive strategy, our vision for City Quarters is responding to these expectations, ensuring we deliver new buildings that will stand the test of time. This requires a strategic approach to designing sustainability into our development and refurbishment plans from the beginning.

Having BREEAM Excellent as our target for all developments since 2014 has enabled our teams to develop the necessary experience and knowledge to respond to the more testing challenges we now face.

We delivered our first BREEAM Outstanding scheme in 2017 and our first development at Dundrum in Ireland has been designed to achieve BREEAM Excellent and the Irish Net Zero Energy Building standard. We have now set Passivhaus as

the target for our City Quarters residential buildings. Designing buildings to be both highly efficient to run and healthy to occupy

is essential to their long-term viability in an increasingly resource constrained environment (see pages 116 - 117for more on performance against design standards).

Close collaboration across our teams is vital to achieving our ambitions. To ensure alignment across the business, we have linked senior management bonuses to progress against a

2020 carbon emissions reduction target. This builds on existing sustainability objectives currently included in personal performance reviews of all Hammerson colleagues and underlines the publicly stated sustainability ambitions of the business.

NAVIGATING A CHANGING ECONOMIC AND POLITICAL CONTEXT WHILST MAINTAINING OUR FOCUS ON SUSTAINABILITY

The continuing uncertainty of the economic outlook provides a challenging business environment which we expect to continue. Fundamental shifts in the retail sector add to these challenges. Our sustainability strategy supports our brands in this difficult environment by reducing energy and water demand and therefore costs, optimising waste management and establishing good links to the local community.

In 2019 our energy efficiencies delivered £900k in savings across the portfolio and our employment and training partnerships provided over 90 previously unemployed, trained staff from the local community for our retailers.

£900k

savings through energy efficiencies in 2019

As an established business function for Hammerson, sustainability

is expected to produce clear business benefits. These benefits inform robust decision-making and ensure that our focus on sustainability is maintained during challenging economic times.

Our targets reflect this approach and include investments in technology that drives further efficiencies. Our work with Grid Edge on an Artificial Intelligence platform that informs our daily building energy strategy is an excellent example of this (see page 51for more details).

We will be continuing to invest in technology across the assets to drive further efficiencies, explore further clean power opportunities and increase our renewable energy capacity. We will maintain our focus on optimised operational management and deliver the highest standards on our new buildings and major refurbishments.

This is our strategy for delivering against stakeholder expectations. From local community groups to our investors, this strategy requires us to go beyond simply reducing our negative environmental impacts

to making them positive ones.

F O R M O R E

See pages 14 - 15for performance against targets. Full data available in Our Data section, starting on page 76.

David Atkins

Chief Executive

SUSTAINABILITY REPORT 2019: INTRODUCTION

6 About

Hammerson

Hammerson

We own, operate, curate and develop winning European

destinations. Bringing together the very best retail, leisure

and entertainment brands, we seek to deliver value for

all our stakeholders, creating a positive and sustainable

impact for generations to come.

BULLRING AND GRAND CENTRAL, BIRMINGHAM

As part of our Net Positive strategy we implemented numerous energy saving initatives across our UK portfolio. A key project was our partnership with Grid Edge, where we have introduced AI technology across our two Birmingham venues to manage the heating and cooling systems. This has helped deliver gas savings of 25% in 2019.

HEDE FASHION OUTLET, GOTHENBURG

A 2,400m2 extension opened at Hede Fashion Outlet in October introducing 15 new brands to the scheme. This resulted in a 37% increase in the number

of guests to the centre.

OUR 2019 PORTFOLIO

INCLUDES INVESTMENTS IN:

21 20

Flagship Premium

destinations outlets

9	14
Retail	Countries
parks
410m	m
2.2m2
Shopper visits	Lettable
per year	area

4,700

Tenants

Portfolio value1
£8.3bn
Flagship destinations: UK	28%
Flagship destinations: France	15%
Flagship destinations: Ireland	10%
Premium outlets: Value Retail	24%
Premium outlets: VIA Outlets	8%
Developments and UK other	9%
Retail parks: UK	6%

F O R M O R E

A full list of properties is included in our sustainability reporting is included in Our Datasection.

DUNDRUM, DUBLIN

We received planning consent for a 107 apartment residential development adjacent to Dundrum Town Centre. We expect to start on the site in the second half of 2020, and the project will be our first onsite

City Quarter scheme.

ITALIE DEUX, PARIS

In 2019 we sold 75% of this central Paris flagship destination for €473 million. The transaction includes the forward sale of the onsite Italik extension, which is due to open in Q4 2020. This transaction was the largest retail deal in France in 2019.

Flagship destinations: UK	Premium outlets: Value Retail		Retail parks: UK
Flagship destinations: France	Premium outlets: VIA Outlets		Properties sold in February 2020
Flagship destinations: Ireland

8

Hammerson

SUSTAINABILITY REPORT 2019: INTRODUCTION1.0 INTRODUCTION2.0 NET POSITIVE3.0 OUR DATA

Shaping Our	9
Strategy

We create vibrant, continually evolving spaces, in and around thriving cities, where people and brands want to be. We seek to deliver value for all our stakeholders and to create

a positive and sustainable impact for generations to come.

WHAT WE HAVE

High-quality property in the right places

WHAT WE DO	THE HAMMERSON BLUEPRINT

WHO WE DELIVER FOR

Shareholders

We own and operate high-quality, flagship destinations and premium outlets. Our City Quarters concept will enable us to leverage our existing land bank around these flagship assets.

A dynamic and diverse team

We go to great lengths to attract, develop and retain the best people. By the end of 2019 Hammerson directly employed 553 people across the UK, France and Ireland.

Insight led

We use property and consumer trends to shape our strategy and inform our decisions around capital allocation, project priorities and resource deployment. Our dedicated Insight team monitors the latest consumer habits and retail trends to better understand and respond to markets.

Effective capital management

Effective capital management ensures balance sheet resilience. We monitor against internal guidelines to maintain the Group's robust financial position. Our preferred source of debt is Group-level, unsecured funding and we have a platform of successful JV partners.

Our strategy
Capital	Optimised	Operational
efficiency	portfolio	excellence

Positive place-makers

-destinations that deliver positive impacts economically, socially and environmentally

-Net Positive by 2030 for carbon, water, resource use and socio-economic impacts

Destination makers

-experience led - places to enjoy, shop, live and work

-revitalise, refresh and rethink our venues to remain relevant

-group strategic expertise, delivered with skill by local teams for our customers and communities

Relationship makers

-collaborating with brands, partners and third party experts locally and globally to deliver the best possible venues, profitably

We have a broad range of institutional investors and private shareholders. We actively engage with them throughout the year and undertake regular communication to ensure they understand the performance of the business.

Brands

Our business strategy and future success is aligned with that of all of the brands which fill our destinations - retailers, F&B and leisure ten- ants, as well as direct to consumer brands.

Consumers

We create vibrant destinations that meet the need of the wide range of consumers that engage with them. In an omnichannel environment, we provide more than just a place to shop.

Partners

We work with a wide range of partners over the long term, including joint venture partners, suppliers and capital partners, making our business stronger and delivering a competitive edge.

Communities

Our assets rely on a strong, positive connection with thriving local communities. This is where we draw our customers from, and over 80% of the employees in our flagship destinations.

Our people

Talented, motivated colleagues are vital to the success of the business. We have built a winning team to support our delivery of flagship destinations.

SUSTAINABILITY REPORT 2019: INTRODUCTION

10 Looking Ahead

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

11

Hammerson	A view from Louise Ellison,
	our Group Head of Sustainability.

impacts whilst developing buildings that are fit for purpose and have an extended life expectancy requires new thinking around design

and materials specifications. We have already started work in this area by, for example, specifying recycled concrete and setting

ENSURING OUR ASSETS ARE WELCOMING

TO EVERYONE

Our City Quarters strategy provides an opportunity to build further on our relationship with our local communities. We have a very strong track record in outstanding

I have no doubt that with this level of support from across the business we will continue to achieve great sustainability outcomes and we have exciting plans for 2020. However, the next decade is going to require significantly more action, quickly and across a much broader group

Moving into a new decade gives us an opportunity to pause and reflect, but also to look at where we are going next, ideally with some optimism. Our 2019 results speak for themselves and are set out in detail across this report. I am enormously proud of our sustainability achievements so far as a business, and the passion my colleagues have to deliver on our market leading Net Positive targets. It is also encouraging to learn that our Net Positive strategy has become an important part of Hammerson's offer as an employer of choice. However, it is increasingly clear that businesses need to do more and to move faster.

CHANGING

EXPECTATIONS

2019 has seen a tangible shift in thinking on climate change from some of our key stakeholder groups, particularly investors and consumers. The TCFD's call for greater clarity on reporting climate change risks has focused significant attention

on the authenticity of business' response. The expectation that this is led from the Boardroom is already driving change. This will reveal new areas of risk, and with that drive more informed decision-making to tackle what is clearly a threat to investor returns. The increasing number of businesses setting net zero carbon strategies in 2019 suggests TCFD is prompting a response in Boardrooms so I am hopeful we will see a scaling up and acceleration

of progress from our sector.

MORE OPEN DEBATE ON HOW ORGANISATIONS ACHIEVE NEUTRAL OR NET POSITIVE POSITIONS

At Hammerson we are working to achieve the first phase of our Net Positive targets by the end of 2020. We have reduced our Net Positive carbon footprint by 60% since

2015 and are targeting a further

25% reduction in 2020, bringing our carbon emissions down by an unprecedented level in the course of 5 years. This will not, however, make our position Net Positive. We have always been clear that achieving this will require some form of offsetting.

The concept of offsetting is developing rapidly and requires an open and honest debate. While it should always be the final option once carbon emission reductions from within the business and the business value chain have been exhausted, offsetting has an important role to play.

It is critical to be transparent about what offsets are being used and confident that they are creating a genuine reduction. They can never be a reason to avoid or delay taking action to reduce direct business impacts.

We have worked with Deloitte this year to review our approach to offsetting so that all our stakeholders can be confident that our approach is robust and reflects these rules.

We, along with 23 other businesses, signed the Better Buildings Partnership (BBP) Climate Change agreement in 2019, committing

to publishing our trajectories to achieving net zero carbon emissions, including Scope 3 and embodied emissions in 2020. For this to be achieved in a meaningful way and in the timeframe climate change requires, will require some form of offsetting. It is therefore critical that a coherent, thorough approach to this is developed for the sector.

As the Chair of the Better Buildings Partnership I am very proud

of the phenomenal work the organisation does and I am looking forward to working with the BBP members to develop net zero carbon transition pathways and other projects in the coming year.

We have set out on page 27 our assets' performance against the BBP's Real Estate Environment Benchmark. This is the only comprehensive performance-in- use benchmark in the industry and its annual publication is an important step forward in the availability of data for the market.

BROADENING OUR FOCUS AND NEW TARGETS FOR OUR DEVELOPMENTS

Hammerson's post 2020 Net Positive targets bring our development activities into scope, focusing our attention on our own embodied carbon emissions and resource use. Reducing these major environmental

embodied carbon and resource use targets for design teams. However, significantly more will need to

be done over the coming years to address the environmental impacts of the materials used to create new buildings, particularly concrete. Significant change will also require a clearer value being placed on the materials within existing buildings and the reflection of that value within redevelopment decisions. This will be essential to the more widespread adoption of principles of circularity and a move away from the concept of 'waste'.

The beginning of our phase 2 Net Positive targets will coincide with the expansion of our City Quarters programme which will determine how we redevelop our city centre land holdings. This presents climate change challenges and opportunities.

New developments must be designed both to withstand the unavoidable impacts of climate change and avoid contributing any further to it. This has prompted us to set a target of achieving Passivhaus standard for residential schemes to support our Net Positive targets. By minimising energy demand through good design and delivering remaining power needs through renewable sources, we will be able to deliver buildings that achieve net zero operational carbon emissions, contributing to cleaner air, lower running costs and a better quality environment for visitors, workers and residents.

community engagement work which supports very positive relationships with local stakeholder groups. The focus for our retail assets has been on ensuring the environment we provide is inclusive and welcoming for everyone (see pages 30-31). We have taken this up a level this year with the introduction of Changing Places at all but one of our UK assets. We are also conscious of the increasing polarisation of wealth and opportunity we see in city centres, manifesting itself in homelessness, both seen and unseen, poor educational and health outcomes and many other social impacts.

Our Net Positive socio-economic target seeks to address exactly these challenges, targeting locally relevant, problems in a way that brings about change for local people.

OUR PEOPLE ARE KEY

The sustainability outcomes we achieve as a business are outstanding and a product of the engagement and hard work of my colleagues. Their participation is not limited to the workplace either. Through our employee engagement platform, Butterfly Bank, we encourage colleagues to develop more environmentally responsible habits and encourage them to volunteer.

Over the last 12 months, colleagues have voluntarily taken 80,000 sustainable actions and contributed 3,232 hours of volunteering, a clear indication of the passion they have for sustainability.

of businesses if we are to make the progress necessary to avert the worst effects of climate change. Not achieving this has damaging long term consequences everyone.

I hope you find the information within this report interesting and useful but I hope also it prompts you to ask yourself, your colleagues, the retailers you buy from and the service providers you use - what are you doing to make the change we all need, happen?

Louise Ellison

Group Head

of Sustainability

What

sustainability means to us

SUSTAINABILITY REPORT 2019: INTRODUCTION

12 What Sustainability

1.0 INTRODUCTION	2.0 NET POSITIVE	3.0 OUR DATA
What Sustainability Means to Us	13

Creating Positive Places

Hammerson	Means to Us
	MATERIAL
	ISSUES
		Focusing on what really matters
		The materiality review we conducted in 2018 identified a clear
		list of areas we need to focus on to achieve the most sustainable
		outcomes for our business. Our top six material issues are:

1. Governance and reporting
2. Energy security and pricing
3. Climate change

4	Community engagement			F O R M O R E
See sustainability.
5	Waste / Resource use	hammerson.comfor
more details of our
		materiality review.

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6	Sustainable product

These material issues drive our sustainability strategy. Each of these is addressed directly in a variety of ways through our Positive Places strategy and Net Positive targets as set out in the graphic opposite.

SDGs

The development of our City	by utilising our land holdings around our
Quarters strategy means we will	existing assets. Sustainability is a key
now be directly supporting the	pillar within the City Quarters vision and
delivery of 8 of the UN SDGs.	is vital to creating an effective response
City Quarters is key to our business	to the needs and expectations of our
strategy as we move to developing a	residents, businesses, visitors, wider
wider mix of uses across the portfolio	community and related stakeholders.

				Water
					efficient
				Water
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						efficient	and
					local	operations
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2							biodiversity
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SUSTAINABILITY REPORT 2019: INTRODUCTION

14 Performance Against

Hammerson	Our Targets

1.0 INTRODUCTION

PROGRESS TOWARDS OUR MEDIUM AND LONG TERM TARGETS

Our Net Positive targets run in phases. We are currently in phase one and we have made good progress towards our targets as shown below. In 2021 we will move into phase two, bringing development

2.0 NET POSITIVE

3.0 OUR DATA

15

Progress in reducing carbon emissions has been significant. Reaching Net Positive remains a major challenge

but the business is very focused on achieving it.

SIX OF OUR EIGHT 2019 TARGETS ACHIEVED OR EXCEEDED

As the figures set out in the report

We exceeded our 11% energy

Whilst we are working within a very

impacts into the scope of these targets. Our short term 2020/2021 targets are shown on page 84.

TABLE 1.2

show, we have performed well against our 2019 sustainability targets.

We are also progressing well against our Net Positive carbon and resource targets. We expect the Net Positive water target to be more challenging but have made great strides in 2019 and early 2020.

reduction target for the like-for-like portfolio, which in turn has driven a 12% reduction in carbon emissions.

For the business as a whole we have delivered a 12% reduction in carbon emissions in 2019, bringing our carbon intensity figure down to 122 tonnes CO2e/£M adjust profit before tax.

challenging economic context we have continued to de-couple business productivity from carbon emissions. The carbon intensity of the business on a £m adjusted profit before tax basis has fallen by 21% since 2015.

	2020 NET POSITIVE	2019 PROGRESS
	PHASE ONE TARGET
TOTAL	REDUCTION	INSETTING*	OFFSETTING*
	Net Positive for Scope 1 and 2 CO2e	11,671	4,516	1,535	150
	emissions for the directly managed
	tonnes	tonnes	tonnes	tonnes
	portfolio and corporate operations
	Net Positive for potable Water demand
	for landlord services across the directly	237,000 m3	26,000 m3	14,364 m3	2,066 m3
	managed portfolio and corporate operations

Worked with two regional water companies to deliver water audits,
leak fixes and installation of water saving devices across two centres.			TABLE
Plans to extend work to three more centres in 2020.
		1.1
2019 TARGET	STATUS	OUTTURN
20% year on year reduction in potable water	45% ACHIEVED	-9%
demand for the Net Positive portfolio
15% year on year reduction in operational carbon emissions	80% ACHIEVED	-12%
from the EPRA like-for-like managed portfolio
17% reduction in Carbon emissions from	ACHIEVED	-18%
energy for the Net Positive portfolio
Achieve 85% waste recyling for the EPRA like-for-like portfolio	80% ACHIEVED	70%

	Net Positive for Resource use for operations	3,415	2,841	607 tonnes 1.7 tonnes
	across the directly managed operational
	tonnes	tonnes
	portfolio and corporate operations
*For information on insetting	Materials specification for		Our water demand is falling
and offsetting see pages 40-41	construction has a significant		but significant progress has
		influence on resource use globally.	been made by identifying
		By increasing demand for more		opportunities to support
		recycled content or fully recycled	other businesses to reduce
		materials we can drive change		their water demand.
		through the supply chain.

11% year on year reduction in energy demand across		ACHIEVED		-12%
the like-for-like managed retail portfolio
5% year on year reduction in water intensity across		ACHIEVED	7%
the EPRA like-for-like managed portfolio
Achieve 100% diversion of operational waste from		99.5% ACHIEVED	99.5%
landfill for the EPRA like-for-like portfolio
Continuing our programme of portfolio-wide, locally		ACHIEVED
focused community engagement initiatives
We have not progressed this target as much as we would	Seven programmes have been delivered in 2019
have liked in 2019. It is a difficult area due to the regulation	focused specifically on tackling local issues identified
and insurance issues around reuse of shop fit and handling	through our socio-economic demographic dashboards.
waste. The Globechain trial has been successful at Bullring,	(see pages 72 - 73for more details).
and we have had planning sessions with further reuse partners
as we look to implement similar reuse schemes in 2020.

2025 TARGETS

Net Positive for Scope 1 and 2 CO2e emissions for the directly managed portfolio, corporate operations & development

Net Positive for potable water demand for landlord services across the directly managed portfolio,corporate operations & development

Net Positive for operational resource use across the directly managed portfolio corporate operations & development

2030 TARGETS

Net Positive for Scope 1, 2 and 3 CO2e emissions for the directly managed portfolio, corporate operations, development impacts

Net Positive for potable water demand for landlord and tenant services across the directly managed portfolio, corporate operations & development impacts

Net Positive for operational resource use across the directly managed portfolio, corporate operations & development

SUSTAINABILITY REPORT 2019: INTRODUCTION

16 Strong Governance

Hammerson	Promotes Proactive
Risk Management
	The governance processes we have in place
	support the systematic monitoring and delivery
	of our sustainability strategy and targets.

1.0 INTRODUCTION	2.0 NET POSITIVE	3.0 OUR DATA
ASSET LEVEL DELIVERY		17
DRIVEN BY EXPERTISE
Our corporate Sustainability Team	ensuring delivery of asset specific	Our corporate level Sustainability
drives the programme across the	operational sustainability targets and	Team, led by our Group Head
Group but delivery at asset level is the	is supported by an Environmental	of Sustainability, is responsible
responsibility of each Asset Manager	and Community Coordinator	for strategy development and
and operational team. Each of these	reporting to the Operations Manager	oversight, reporting and target
roles has asset-specific sustainability	in post at each of the flagship UK	setting and provides subject matter
objectives. The General Manager	assets and at Dundrum in Ireland.	expertise to the operational,
at each asset has responsibility for		asset and development teams.

		OPS TEAM
		SUSTAINABILITY
CORPORATE SUSTAINABILITY STRUCTURE		STRUCTURE
GROUP HEAD OF SUSTAINABILITY		General Manager

Our Positive Places Corporate Responsibility Board (CR Board), chaired by our Chief Executive is responsible for overseeing the delivery of our Group-wide sustainability performance and reports to the Plc Board. The CR Board meets three times a year to

review and set strategic priorities and targets and to identify and manage sustainability risks, including climate change and legislative compliance.

Our Chief Executive has Board-level responsibility for sustainability and the Group Head of Sustainability reports to the Plc Board at least

annually on progress against the Positive Places strategy. Working groups for Operations, Corporate activities, Development and the French portfolio each report to the Positive Places CR Board. Below we outline our sustainability governance structure.

Environmental &

Environmental

Sustainability

Community

Sustainability

Operations

Energy Manager

Manager

Data Analyst

Manager

Coordinator

Operations

Manager

Director,

Hammerson

Environmental &

France

Community

Coordinator

SUSTAINABILITY
GOVERNANCE	Reports to PLC Board

MANAGING RISKS

STRUCTURE

POSITIVE PLACES CR BOARD

Each business stream and jurisdiction

is represented on the PP CR Board

CHAIRED BY CHIEF EXECUTIVE

HAMMERSON FRANCE CR BOARD

UK & IRELAND MANAGEMENT BOARD

Overseeing delivery of PP strategy in France

Overseeing delivery of PP strategy

in UK & Ireland operations

CHAIRED BY MD HAMMERSON FRANCE

CHAIRED BY MD HAMMERSON UK AND I

POSITIVE PLACES DEVELOPMENT

POSITIVE PLACES CORPORATE

POSITIVE PLACES OPERATIONAL

WORKING GROUP

WORKING GROUP

WORKING GROUP

Manage and report on

Manage and report

Manage and report on

sustainability in development

corporate sustainability

sustainability in operations

CHAIRED BY GROUP HEAD

CHAIRED BY GROUP HEAD

CHAIRED BY GROUP HEAD

OF SUSTAINABILITY

OF SUSTAINABILITY

OF SUSTAINABILITY

Key sustainability risks, including climate-related risks are monitored by the Corporate Risk Group and managed by the Positive Places Corporate Working Group. Oversight is provided by the Positive Places CR Board, chaired by the Chief Executive who has Board responsibility for sustainability and climate risk.

The Positive Places Corporate Working Group has been overseeing our response to the reporting recommendations of the Task Force for Climate Related Financial Disclosures (TCFD); this has included a further review of the relationship between our sustainability and corporate

risk frameworks, updating of the corporate risk framework to ensure climate change-appropriate time frames are reflected, the implementation of training for relevant corporate teams and the development of our annual reporting to ensure compliance with the TCFD reporting requirements.

F O R M O R E

Our key Sustainability Risks are mapped out on page 18.

Our response to Climate-related risks is detailed on pages 19 - 23.

SUSTAINABILITY REPORT 2019: INTRODUCTION

18 Responding to Our Key Hammerson Sustainability Risks

RESPONDING TO OUR KEY

SUSTAINABILITY RISKS

We have always adopted the principle	The heat map below shows the	Our analysis shows that our key
of a precautionary approach to	sustainability risks we consider to	sustainability risks are contained
climate and other sustainability	be most significant for the business,	within the medium risk area of the

1.0 INTRODUCTION

MANAGING CLIMATE RISKS

Climate change presents a risk for all businesses and particularly those with infrastructure assets such as ours. The pioneering work of the The Task Force on Climate-relatedFinancial Disclosures (TCFD) has articulated the direct link between climate risk and financial risk, signalling to financial institutions the importance of identifying and understanding their exposure to liabilities related to climate change.

2.0 NET POSITIVE

A direct consequence of this is an increasing requirement from investors that businesses have a process in place for understanding their exposure to climate risk and a clear strategy to manage that risk.

The TCFD reporting requirements set out a framework against which businesses can report their response. This is currently voluntary but

is widely anticipated to become

3.0 OUR DATA

19

mandatory in the UK and other jurisdictions within the next three years.

Below we outline our process for managing climate risks.

related risks and continue to do so.	based on the probability of the	map and we consider each of the risk
	identified risk occurring and the	areas as being effectively managed.
	severity of the impact if it occurs.

Identify

	HIGH			1
	2	3
				2
	6	7
	8
IMPACT	MEDIUM			3
4	5	1
				4

Failure to meet published sustainability objectives or comply with published sustainability principles

Failure to address sustainability within our development programme and achieve corporate standards

Non-compliance with UK, Irish, French and EU Environmental regulation and legislation

Non-compliance with good governance standards within the business and within the supply chain

Key sustainability risks are identified by the Positive Places Corporate Working Group and the Group HoS and are reported to the Corporate Risk Group and the Positive Places CR Board which has oversight of the Sustainability Risk framework (see pages 118 - 119).

Manage

The response to climate-related risks is monitored by the Positive Places Operations and Development Working Groups, with each business stream leader responsible for identified projects.

Projects are agreed at asset level, through our business planning process, and delivery is monitored by the UK&I Management Board and CR Board France and progress reported to the Positive Places CR Board.

Respond

A response is developed by the Sustainability team working with the relevant business teams. This is reported to the Positive Places CR Board, who reports to the PLC board at least annually.

Communicate

Our exposure to and mitigation of climate-related risks are communicated to the Group Executive Committee and Plc Board through regular updates by the Group Head of Sustainability.

			5
LOW			6
LOW	MEDIUM	HIGH	7
	PROBABILITY
			8

Rising energy costs including regulatory/fiscal charges

Impact of climate change on our portfolios

Lack of engagement of JV partners on sustainability matters

Poor performance in investor- focused industry benchmarks

"Our physical climate risk review identified low levels of weather related risk at some of our assets. The findings of the review were shared with our Asset Management and Operational teams. Projects have been included within our five year business planning process to mitigate the risks identified. These include solar film to reduce the potential for over-heating where we have extensive glazing, and ensuring any scheduled air conditioning system replacements are able to respond to the identified potential for higher summer peak temperatures."

David Atkins, Chief Executive

F O R M O R E

An overview of how we are responding to the TCFD framework is provided on pages 20 - 23.

SUSTAINABILITY REPORT 2019: INTRODUCTION

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

20 Responding

Hammerson	to the TCFD

21

STRATEGY

Describe the climate-related risks and opportunities the organisation has identified

over the short, medium, and long term.

We identify short-termphysical climate risks as those occuring within the next five years, medium-term as five - ten years and long-term risks as over ten years. The risks identified are consistent across our three key geographies and for our asset types.

Here we set out our response to the Task Force for Climate- related Financial Disclosures (TCFD) framework in brief, providing references to further detail within this Report and within our Annual Report and Accounts.

GOVERNANCE

GOVERNANCE

STRATEGY

RISK

MANAGEMENT

METRICS &

TARGETS

Key short and medium term physical climate risks include those flowing from increased frequency of extreme weather events including heat, cold and storm, leading to:

• increased power demand and costs
• pressure on existing mechanical equipment
• lower footfall
• potential mall downtime
• increased cost of construction materials

Short-term and medium-term transitional risks include:

• rising non-commodity power costs
• carbon pricing
• regional regulatory risks such as the implementation of clean air zones and zero carbon planning requirements

In the long term these risks extend to:

• pressure on/failure of key business-customer sectors
• changing visitor travel patterns
• further transitional policy risks including behaviour change and restrictions on power demand
• construction material supply in impacts

Describe the board's oversight of climate-related risks and opportunities

Board level responsibility for climate-related risk sits with the Chief Executive who Chairs the Positive Places CR Board. The Group Head of Sustainability reports at least annually to the Plc Board on progress against strategy including progress against climate-related targets and our exposure and response to climate risk. Climate risks are monitored by our Positive Places Corporate Sustainability Group and are included within our corporate Risk Management Framework. This is overseen by our Risks and Controls committee which reports through our Group Executive Committee to the Plc Board. This process led the Board to approve the implementation of our Net Positive targets in 2017, in response to their Board's awareness of the potential for transition risks including carbon-pricing and our exposure to rising energy prices.

Describe the impact of climate related risk and opportunities on the organisation's businesses,

strategy, and financial planning

The business has been addressing climate related risks for some years. Our business strategy has focused on our material sustainability and climate risk issues which are set out on page 18. Energy, water and carbon efficiency opportunities are identified within the business planning process, costed and analysed alongside all other business planning items. Projects are prioritised on a financial return basis and a carbon/ energy or water return basis. Projects that deliver energy and cost reductions to our tenants can be forward funded by the business or JV with payback through service charge. This has to be approved by retailer representatives and requires a relatively short i.e 3-5 year payback to be justified. Those approved for funding are then implemented and monitored through the year through the standard business governance process. Current projects include:

Describe management's role in assessing and managing climate-related risks and opportunities

The Group Head of Sustainability is responsible for identifying and assessing climate-related risks and opportunities and reporting these directly to the Chief Executive and business stream leads through the Positive Places CR Board. Each business stream lead is responsible for delivering any relevant climate risk strategy agreed with the Group HoS and Chief Executive.

This includes our energy and carbon reduction strategies and environmental targets for our development programmes. Physical climate risks are assessed on an asset by asset basis and mitigation and adaptation measures developed with the design teams. These are assessed by the Development Manager with support from the Environmental Manager. Progress against specific targets is reported through the CR Development Working Group. Progress is monitored and performance against goals and targets reported to the Group Executive Committee and to the Plc Board by the Group Head of Sustainability.

• reducing our exposure to carbon pricing and pressures on grid electricity by investing in energy demand reduction measures
• onsite renewable energy generation. See examples on pages 47-49
• research and development support for Grid Edge AI project to optimise building thermal energy performance and allow potential for grid balancing. See case study on page 51
• continued investment in energy efficiency technologies to reduce energy demand - see case study on page 48

• ensuring our current and future development schemes deliver positive sustainability outcomes in line with our Net Positive carbon, resource use and water targets. See page 15
• reviewing our energy procurement strategy to identify the potential business opportunities and risks within a longer-term renewable procurement strategy

F O R M O R E

on Governance see pages 16 - 19.

Describe the resilience of the organisation's strategy, taking into consideration different climate-related

scenarios, including a 2°C or lower scenario

Our strategy has a high level of resilience to the physical impacts of future climate change, including a two degree and lower scenario, relative to our sector. In 2020 we will be embarking on climate scenario work to further assess our resilience to the transitional risks associated with a two degrees or lower scenario and using these to inform our medium and long term business strategy.

	SUSTAINABILITY REPORT 2019: INTRODUCTION
22
RISK MANAGEMENT
	Describe the organisation's processes for identifying and assessing climate related risks
Hammerson	Physical climate risk reviews have been commissioned by the Corporate Sustainability Team and carried out for the UK, France and Ireland
portfolios. Using the latest climate change forecasting models, UK CP09 for UK and Ireland and CERFACS in France, exposure to flood, heat
and drought were examined under a medium GHG emissions scenario, projected out to 2030 and 2050. The reviews analysed the portfolios'
exposure in particular to flooding and overheating as these are the most relevant for our portfolio. This allows us to understand individual
asset exposure to potential capital cost improvements and future increases in energy costs to alleviate over-heating in mall areas.
	These reviews focus on physical risk out to 2030 and 2050. They enable the business to assess some transitional risk, for example exposure to
	medium-term energy and carbon pricing, regional zero carbon policies and short-term energy price volatility. The next phase of our climate
	risk analysis will be to initiate climate scenario work to enable us to extend our business climate risk analysis further into our business value
	chain within the context of our broader business strategy.
	Describe the organisation's processes for managing climate-related risks
	Our climate risk strategy is proactive with an intention to ensure early understanding of climate risk for existing and new assets - both
	acquired and developed. The type and severity of climate risk we are exposed to differs across the short, medium and long term and	we
	reflect this in our approach. Our approach to managing each of these risks is a product of its proximity to our value chain, time-horizon, our
	investment-horizon for the related asset, the potential cost of mitigation and the benefits that would accrue.
	Key risks are therefore those that directly affect our assets , particularly in the short term, and have a material business impact. For example
	energy price rises - both commodity and non-commodity cost related. These risks are identified through a series of processes: our	materiality
	review, our environmental monitoring of the portfolio and the market, our business planning process and our capital expenditure approvals
	system. Projects which are timely, relate to our key risks and are cost effective are quickly identified. Projects requiring a longer-term
	perspective are also easily identified and reviewed in relation to the relevant investment horizon for the particular asset or for the wider

1.0 INTRODUCTION	2.0 NET POSITIVE	3.0 OUR DATA
		23
RISK MANAGEMENT (Continued)

Describe how processes for identifying, assessing, and managing climate related risks are integrated into the organisation's overall risk management

The outputs of the climate risk reviews are reviewed by the Positive Places CR Board, the Positive Places Operations Working Group and Positive Places Corporate Working Group. Identifiable risks are incorporated into the sustainability risk framework and key risks are included within the corporate Risk Management Framework owned by the corporate risk and controls committee which is overseen by the Plc Board.

METRICS AND TARGETS

Disclose the metrics used by the organisation to assess climate-related risks and opportunities, in line with it's strategy and risk management process

We use a range of metrics to assess our exposure to our identified short-term climate related risks and opportunities. These include:

- power demand in kWh - this is monitored monthly and	- scope 1 and 2 carbon emissions in tonnes C02e are monitored
reported per asset, both absolute and as an intensity metric	and reported internally monthly and externally annually, both
	absolute and intensity

These two indicators enable us to identify those assets with the most material risks within the portfolio. We set targets against the following areas to manage these risks:

business strategy.

- annual gas and electricity targets are set at asset level and are

reported against each month

- targets are set for our development projects that reflect our Net

Positive environmental targets including tonnes of embodied

SHORT-TERM: ZERO TO FIVE YEARS

Key short-term risks identified include:

-	increased power demand from extreme
	weather leading to higher running costs
-	pressure on existing mechanical
	equipment as a result of
	extreme weather events
-	reduced footfall and potential
	mall down-time from

MEDIUM-TERM: FIVE TO TEN YEARS

Key medium-term climate risks include, in addition to those above:

• exposure to carbon and energy pricing transition risk and increased physical risk

In response we are reviewing our energy procurement strategy to further reduce our exposure to potential carbon pricing, energy price fluctuations and grid supply.

LONG-TERM: OVER TEN YEARS

Our longer-term business strategy includes the gradual transition of the portfolio to a more diversified sector split through the development of our city centre land holdings. Identified climate risks associated with this longer term strategy include:

-	changes to our business-
	customer sectors
-	transport modal and technology

-	for our development assets, performance against our
	Sustainability Implementation Plan is monitored, including
	performance against key carbon and resource use targets. This
	is reviewed quarterly to ensure projects are on track and that
	learning is shared across projects
-	footfall
-	mall temperatures

	carbon per square metre, m3 of water and % of waste diverted
	from landfill
-	equipment that may need upgrading or earlier replacement is
	identified by our on-site specialist teams and planned for within
	the 5 year business planning cycle
-	drainage systems are reviewed at assets vulnerable to flooding
	to identify potential improvements

extreme weather events

- exposure to rising energy

prices and carbon pricing.

To address these risks we have incorporated the findings of the completed climate risk review into annual asset business plans, have made significant reduction in our reliance on grid energy supplies over the last 10 years and have installed onsite clean power generation facilities. We work closely with our design teams to ensure our development projects are designed for future climates, both through adapting for resilience to extreme weather events and mitigating further climate change by pursuing low and zero- carbon technologies.

We are also reflecting potential asset cap ex requirements for upgrades to equipment and fabric to improve resilience to weather events. Where we look to acquire new assets our due diligence for acquisitions includes climate risk assessment.

Our medium-term business strategy includes our City Quarters development projects. Sustainability and particularly resilience to climate change and climate risk is an integral element of the City Quarters strategy.

Our climate risk review is used to inform discussions with our design teams to ensure designs incorporate appropriate levels of adaptation and maximise the opportunity for climate change mitigation. We have set related targets for future schemes, for example Passivhaus standard and embodied carbon targets.

	shift, for example the switch to
	EV and mobility as a service
-	restricted power supply networks
-	demographic shift and changing
	service requirements as a result
	of climate related migration
-	pressure on food networks
	and delivery systems

We are addressing this by ensuring sustainability is a fundamental element of our City Quarters strategy. This presents opportunities to utilise our existing sites to support innovation in other sectors, for example provide facilities for electrically powered last mile delivery. The redevelopment of our landholdings also presents opportunities to improve climate mitigation through the delivery of new public realm.

In 2020 a specific proportion of personal bonus for colleagues from Chief Executive through to Senior Management will be linked to the achievement of a stated carbon reduction target.

Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions,

and the related risks

Full disclosure of our Scope 1, 2 and 3 GHG emissions and related risks is contained within the section three of this report.

Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets.

We have set targets to be Net Positive for Scope 1, 2 and 3 Carbon emissions, water demand, resource use and socio-economic impacts by 2030 (see page 15). This means we are planning to avoid the release of more CO2e into the atmosphere through our business activities than we emit, on an absolute basis. We expect, through the achievements of these targets, the business will reduce its exposure to key identified risk areas including carbon pricing, restricted energy supply, water stress and limitations on resource use. We also expect to benefit from business

F O R M O R E see our website www.sustainability.hammerson.com

opportunities in the generation of renewable energy, the development of zero carbon/Net Positive developments and successful positive engagement with current and future local commnunities.

SUSTAINABILITY REPORT 2019: INTRODUCTION

24 Financial Benefits

Hammerson	of Sustainability
Our Positive Places strategy delivers
	good financial outcomes for the business
	and this has continued in 2019.

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

Stakeholder 25

Engagement is Key to Our Approach

Our Positive Places sustainability framework reflects our five key stakeholder groups:

Our focus on energy efficiency has generated over £900k in energy cost savings over the last 12 months. This is supporting our investment in energy saving technologies from LED lighting to Artificial Intelligence which in turn informs our on-site energy strategies. Our investment in metering is contributing to these

returns by giving on-site teams much quicker information on consumption, driving faster response times and tighter controls. This is also supporting an improvement in water costs. The majority of these savings flow to our tenants but this is valuable for our business too in the context of pressure on total occupancy costs.

CUSTOMERS / BRANDS INVESTORS SUPPLIERS COMMUNITIES EMPLOYEES

These stakeholder groups represent	Since the Positive Places framework	As we now begin to turn our
our value chain which is where we	was launched in 2013 we have worked	attention to balancing projects to
can most directly affect change	to ensure each of our sustainability	achieve our Net Positive targets,

Environmental Costs and Savings		TABLE
	1.3
	UNIT	2019
ENERGY
Cost of energy (CRF1 - Energy expenditure from managed portfolio)	£'000s	£11,350
Estimated energy savings (CRF3 - Estimated energy savings)	£'000s	£916
Energy Efficiency Investment	£'000s	£2,343
Estimated energy savings since 2015 GRI 302-4	MWh	24,000
CARBON

and create positive impacts for	initiatives is relevant to at least one	working with these stakeholders
our business and communities.	of these five stakeholder groups.	is even more important.

INVESTORS

Talking to our investors

CRC	£'000s	£184
Climate Change Levy	£'000s	£325
WATER
Cost of water for landlord services (CRF10 - Operational cost of water)	£'000s	£2,230
Investment in water managament improvements	£'000s	£191
Estimated water cost savings (increases) (CRF14 - Estimated water savings)	£'000s	£50
WASTE
Operational costs from waste management (CRF7 - Operational costs from waste management)	£'000s	4.0
Savings from avoided landfill tax	£'000s	2.7
Income from sale of waste for recycling (CRF16 - Income from sale of waste)	£'000s	166

Our focus on good management
continues to bring energy costs down.	The market for recyclable materials has
	been volatile this year with demand for
	plastics increasing but demand for paper
Our investment in energy and water efficiency	and card falling substantially. This has led
measures continued through 2019 and, in spite of the	to volatility in pricing and income from sale
difficult economic backdrop, is continuing through	of waste has inevitably fallen. However,
2020. The financial benefits these projects generate	the net benefit of avoiding sending
make them worthwhile for the business financially.	waste to landfill remains significant.

Our strong sustainability track record and strategy is an important element of our corporate proposition for investors. Many of our major shareholders have a similarly developed approach to sustainability issues. We have been struck in 2019, however, by the significant increase in mainstream investor interest in awareness of sustainability or Environmental, Social and Governance (ESG) within the mainstream investor community. This has often been driven by awareness of risks that climate change presents to global real asset portfolios and the rising expectations of transparency and reporting of climate issues, not least through TCFD.

This drive for transparency has had a number of consequences, one of which is a demand for data. We recognize the challenge the mainstream investor community can face in interpreting sustainability performance across multiple businesses and sectors.

We therefore participate in a range of investor benchmarks (see Table 1.4 on page 26) and provide comprehensive responses to specific investor questionnaires. However, it is not possible to reduce a company's sustainability profile to a single number and for that number to be particularly helpful or meaningful.

We therefore ensure that, to support industry benchmarking data,

we provide comprehensive sustainability reporting, publish data on our website and social media channels and reach out to our shareholders for one- to-one discussions at least annually and in response to ad- hoc requests for engagement.

In response to their feedback we are increasing the profile of sustainability information with our mainstream investor presentations and in the annual report and accounts.

In 2019, shareholder's demand for these meetings increased and we met with nine shareholders representing 17% of the current register. We expect this trend to continue through 2020.

SUSTAINABILITY REPORT 2019: INTRODUCTION

26 Stakeholder engagement

is key to our approach (continued)

Hammerson	INVESTORS
Making our leadership position clear
	Hammerson reports against a	Governance and reporting was	We are pleased to report that
	wide range of benchmarks and	identified as a key materiality	our score for Governance
	indices each year. We continued	issue by our investor stakeholders	has increased across GRESB,
	to perform well against these	in 2018 and is key to ensuring we	DJSI and FTSE 4 Good.1
	benchmarks in 2019.	meet our Net Positive target.

1.0 INTRODUCTION

2.0 NET POSITIVE

INVESTORS / WIDER INDUSTRY

Sharing industry specific performance

We, like other Better Buildings	This is the only publicly
Partnership (BBP) members, submit	available benchmark that tracks
data on our managed real estate	operational energy performance
assets annually into the Real Estate	of real assets year-on-year.
Environmental Benchmark (REEB).

3.0 OUR DATA

27

The scale of the data provides valuable insight into the energy performance in use of commercial properties in the UK.

BBP Real Estate Environmental Benchmark

Sustainability Assessments			TABLE 1.4
	2018	2019	CHANGE
Carbon Disclosure Project	B	B	Maintained
GRESB	Green Star 4, 75	Green Star 4, 83	UP
FTSE 4 Good	Percentile 91, ESG	Percentile 79, ESG	DOWN
Rating: 3.9/5	Rating: 3.4/5
Dow Jones Sustainability Index (DJSI)	66	71	UP
EPRA sBPR	Gold Award	Gold Award	Maintained
MSCI	AA	AA	Maintained
liss-OEKOM	C+	C+	Maintained
Sustainalytics	N/A	ESG Risk rating: 11.9	N/A

	120
CPA	100
80
CO2e/M2	60
40
20
	0
	Centre	Centre	Centre	Centre

WestQuay

Whitgift

Centre

Centre

Centre

Centre

Leeds

Quarter

Centre

Low

GRESB is the leading real estate sector benchmark, and Hammerson have scored four Green Stars since 2016. In 2019 we increased our score by eight points year-on-year.

We are ranked 31/896 within Sustainalytics Real Estate universe.

		Shopping	Shopping	Shopping	Shopping
Brent	Cross	Bullring	Centrale	Grand	Central

	Shopping	Shopping	Shopping	Shopping	Victoria	Victoria	Circus	Shopping
Highcross	Oracle	Silverburn	Union	Square			Cabot

REEB Benchmark typical practice REEB Benchmark good practice

Asset Performance

Our DJSI score increased by five points this year, with particularly strong performance in areas of customer relationships and supply chain management. This is one of the most comprehensive ratings platforms so we are pleased that our score has improved.

In both DJSI and GRESB, our high stakeholder engagement scores reflect our continued efforts to place stakeholder engagement at the heart of our work.

Our ESG risk is assessed as bordering on negligible (10 or less).

We are very pleased that Highcross in	Table 1.5 shows the electricity intensity
Leicester and Oracle in Reading rank 1	of assets within the portfolio. All but one
and 3 respectively of the 37 assets in their	are on a downward trajectory as energy
peer group. n is the best performing asset	efficiency continues to improve.
in its peer group within the benchmark.

Electricity demand for Landlord Services		TABLE 1.5
LL elec kWh/m2 CPA	2018		2019	% CHANGE
Brent Cross Shopping Centre	175		167	-5%
Bullring Shopping Centre	143		118	-18%
Cabot Circus Shopping Centre	133		127	-5%
Centrale Shopping Centre	246		226	-8%
Grand Central Shopping Centre	234		227	-3%
Highcross Shopping Centre	48		46	-3%
Oracle Shopping Centre	60		60	-1%
Silverburn Shopping Centre	122		105	-14%
Union Square Shopping Centre	111		100	-10%
Victoria Leeds	209		218	4%
WestQuay	121		93	-23%
Whigift	225		217	-4%
Espace St Quentin Shopping Centre	253		251	-1%
Italie Deux Shopping Centre	415		396	-5%
Les 3 Fontaines Shopping Centre	189		187	-1%
Nicetoile Shopping Centre	277		261	-6%
O'Parinor Shopping Centre	226		207	-9%
Terrasses du Port Shopping Centre	206		185	-10%
Dundrum Town Centre Shopping Centre	127		112	-12%

28

SUSTAINABILITY REPORT 2019: INTRODUCTION

RETAILERS

Creating retail destinations with purpose

1.0 INTRODUCTION	2.0 NET POSITIVE	3.0 OUR DATA
		29
SUPPLIERS

Driving sustainability in our value chain with our

Engagement with our retailers is critical to the delivery of our

effectively on both delivering more sustainable stores and reaping

supplier survey

Hammerson

Net Positive targets and to the effective day to day management of environmental issues on site. We engage with our retailers at least annually and on an ongoing basis through the active managment of our sites. Key issues we work together on are fit out standards, operational issues at site level and the inclusion of sustainability clauses in leases.

In January 2019 we held a workshop with our major retail and food

and beverage operators to discuss how we could collaborate more

the business opportunities of doing so. We identified four key focus areas and a series of short and medium-term actions that we can take in partnership.

Opportunities identified:

• greater collaboration on projects and initiatives
• a commitment to data sharing
• a focus on circularity
• embedding sustainability within the leasing process

We will be taking forward these opportunities in 2020 and have already started on specific projects at centres, including our water efficiency project at The Oracle. See more on page

67. We can provide more details on the outputs of this workshop: please contact us at [e-mail] if you would like a copy of the full report.

We rely extensive on our supply chain for services ranging from the design and construction of new assets through to the provision of Christmas decorations. We take a very active aproach to engaging with suppliers and have a range of policies and processes in place to support and monitor these key business partners.

Achieving our Net Positive targets requires working closely with our suppliers to realise specialist opportunities. We continue to work with our key asset and property management suppliers and with

our development design teams to ensure they are able to support us on our Net Positive journey.

In order to ensure that we are working with businesses and service providers that align with our strategic commitments and to reduce exposure to risks in our supply chain, we use a Supplier Survey to assess prospective suppliers' sustainability.

We expect suppliers to achieve a score of at least 70%, this indicates a robust approach to sustainability and corporate responsibility risk.

We work with potential suppliers to improve their performance if they do not initially achieve this score.

Our engagement with suppliers on their sustainability performance is dependent upon the service they are providing to the business. Tier one suppliers and particularly those supplying operational and asset management services and design team services are engaged with regularly through the year on sustainability issues.

PARTNERS

Driving change through our own investments

Our Supply

Chain

Our Tier One supply chain includes businesses

58%

Our current indirect real estate investments include our holdings in two premium outlets businesses; Value Retail and VIA.

VIA owns and manages 12 assets across continental Europe. We have worked closely with the VIA management team since the fund was launched to establish its sustainability strategy.

Our work with the VIA team has led to a number of significant achievements including:

• 4% year on year reduction in Scope 1 and 2 carbon emissions
• initiation of cross-portfolio utility metering plan
• sustainability investment plans incorporated into every asset business plan
• Villa Do Condo Fashion Outlet in Porto achieved the highest BREEAM in Use rating in Portugal this year

providing services to our operational asset, design and build services to our development programme and business and consultancy services for our corporate functions.

of suppliers undertaking our supply chain survey SCORED 70% OR MORE

SUSTAINABILITY REPORT 2019: INTRODUCTION

30 Stakeholder engagement

is key to our approach (continued)

Hammerson	COMMUNITIES
Maintaining positive, strong relationships with our local communities is key to the
	long-term success of our assets. We have delivered an extensive local community
	engagement programme for many years and this has continued successully during

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

31

COMMUNITIES

Working with partners to improve accessibility

2019. We engage regularly with local communities and commonly identify new local

community groups that we can support. Key community engagement projects are

identified here and in the socio-economic section on pages 69 - 74.

Focusing on vulnerable people

In 2019 our focus has been on ensuring our assets are inclusive. As part of this we achieved Disability Confident Level one - Committed. Disability Confident is a UK government led scheme designed

-	similarly in France, our assets are features on the Jacede.
	com app which provides disabled visitors with information
	regarding accessible facilities within the area
-	we have installed Changing Places facilities across nine of our UK
	shopping centre assets already and a tenth is planned in 2020. These
	facilities feature additional equipment to enable safety, comfort

In March 2019 Hammerson ran a workshop with a range of local stakeholders to explore the increase in homelessness and related impacts in Birmingham city centre.

Issues covered included current challenges - acute and chronic illness, existing service provision, and effective ways that the private sector could provide support.

Our long-term plan is to work with the city and other businesses, including key landowners, to develop a vision for supporting under- served groups in the community.

We have started to map existing provision of support services across the city and identify stakeholders to bring together. In the medium-term we aim to support/deliver the following:

• support and collaborate with existing projects and providers
• identifying infrastructure needs, for example, parks and green spaces and barriers to their delivery, pressing for these to be resolved

• coordination of both capital investment obligations and community investment from businesses across Birmingham to address city-wide issues together
• developing consistent, clear communications across platforms and stakeholders on what is needed and how existing groups can engage

to encourage employers to recruit and retain disabled people and those with health conditions.

We have also pledged to support people with a disability, including offering work experience placements at all our UK shopping centres in collaboration with the Department for Work & Pensions.

We have created accessible work and training opportunities. With the support of the Croydon Partnership and Croydon Council's Gateway Employment Service, a vacant retail unit was transformed into a high-quality boutique. The All About Me pop-up boutique in Croydon supported 12 people with disabilities and learning difficulties through a retail training programme, enabling them to gain a Level One

and dignity whilst maximising independence for the user

- for the second year, all our UK centres participated in Purple

Tuesday. Aimed at making organisations more aware of the challenges

disabled customers face, Purple Tuesday inspires businesses to

make practical changes to improve the customer experience

A range of activities and events increased disability awareness. At Victoria Leeds Opera North entertained visitors with two taster performances

of La Bohème. The performances were tailored to people with dementia and their carers, providing a live performance in a supportive and comfortable environment. Guide Dogs UK volunteers and guide dogs visited a number of centres to raise awareness and offer advice to customers and retailers. Visitors, retailers and our centre management teams participated in navigating an obstacle course with a guide dog, whilst wearing a blindfold, to get an insight into the environment someone with a visual impairment experiences when visiting the centre.

The Bullring and Grand Central team Opportunities Fair

BULLRING,

BIRMINGHAM

City & Guilds Retail Qualification. Enabling visitors with disabilities

- both seen and unseen - to have

a great customer experience when

visiting us is particularly important.

We have therefore ensured best-

Following the stakeholder workshop, the Bullring and Grand Central team organised an Opportunities Fair for clients of local homelessness charities. The event was attended by Local Authority groups, centre retailers, contractors, and other property companies offering a range of opportunities including employment, apprenticeships, work experience and guidance.

After the event, prospective employers highlighted that many of the attendees had signed up for further information on job opportunities, and two clients were offered employment, starting new jobs before Christmas. In 2020 the centre team will organise more Opportunity Fair events, bringing in additional local stakeholders.

in-class facilities are available at

our assets and communicate this to

our customers both online and via

contact with local stakeholders:

• a link is available on all the UK shopping centres websites to the AccessAble website providing information on, for example, toilet facilities, door access, lifts etc

SUSTAINABILITY REPORT 2019: INTRODUCTION

32 Stakeholder engagement

is key to our approach (continued)

1.0 INTRODUCTION	2.0 NET POSITIVE	3.0 OUR DATA
			33
WIDER INDUSTRY

Collaborating with our peers - The BBP Climate Commitment

Hammerson	EMPLOYEES
	We help our employees to volunteer

One of the defining themes of 2019 was the business community's response to climate change. Growing calls for consistent, ambitious climate change policies

The BBP Climate Commitment was a direct outcome of that event and in September 2019 joined with 22 other BBP members in signing it.

Key elements of this commitment include:

- by the end of 2020, publishing our transition pathway to achieving

net zero carbon for operational and embodied carbon emissions,

Engagement with our colleagues on sustainability issues happens on a day to day basis. Every Hammerson employee gets at least two days paid volunteering time per year, one of which is dedicated to our company- wide Community Day. We utilise an online platform, Butterfly Bank to enable employees to find, sign up to, and manage their volunteering.

Beyond our Community Day we offer volunteering opportunities throughout the year. In 2019 we worked closely with The Outbound Trust, our Employee Charity Partner for 2018-2020 to send six

days with two groups of young people in the great outdoors.

Over the course of the week, spent in the Lake District and Scottish Highlands, the groups undertook a wide range of physical activities from kayaking and gorge walking to wild camping and problem solving. The Outward Bound Ambassador Programme provides disadvantaged young people with unforgettable experiences, challenging how they think and feel about themselves and giving them the confidence

to navigate the challenges of adolescence and early adulthood.

Community day 2019:

21

charities were supported by our volunteers

280

team members volunteered for the day

2,240

and the growing market for green finance and ESG investing were accompanied by recognition of climate risk by the global economy.

We were delighted to host a CEO's dinner for the Better Buildings Partnership back in March, focused specifically on what senior leaders could do to accelerate the pace of change. Hammerson feed into a number of industry bodies at national and local level. A sample of the roles held is provided in this table.

	including Scope 3 tenant emissions
-	annual reports of progress against that pathway
-	by the end of 2022 publishing a climate resilience strategy
	for our real estate portfolios

In addition to the BBP climate commitment we also support the following externally developed economic, environmental and social charters:

• UK Government Prompt Payment Code
• RICS professional
• statement and guidance Service Charges in Commercial Property
• procurement of facility management
• RICS professional statement

In table 1.6 we identify other organisations and industry bodies we are actively involved with.

intrepid colleagues to spend five

hours were volunteered

"BBP is just one of the many local and national industry organisations we work with to support the response to climate change."

Louise Ellison, Group HOS

We recognise sustainable behaviours at work and at home

Industry engagement	TABLE 1.6
	Sustainability and Community Engagement Committee
REVO	Planning Committee
Asset Management Committee
	REVO Scotland (Chair)
EPRA	Sustainability Committee (Chair)

In addition to organising our employee volunteering, Butterfly Bank also encourages colleagues to participate in more sustainable behaviours at work and home. New sustainable actions that reflect our strategic themes are regularly added and we then calculate and communicate the environmental benefits of actions taken, making the water, carbon and resource savings that employees achieve visible.

By inspiring more sustainable behaviours, we can deliver environmental savings that contribute as a form of offset to reducing residual footprint left after efficiency reductions. We are working with platform creators Coriander Cows, to develop a way of assuring the savings delivered by these employee actions.

Every quarter we recognise the top performers on the platform with small sustainable prizes.

Activity in 2019:

Almost

80,000

actions taken and recorded online

3,934M3

litres of water saved

Brisith Property Federation	Sustainability Member Committee (Chair) Planning Committee
London Benchmarking Group
IBEC Retail Ireland	Council member
Better Buildings Partnership	Founder member and Chair
Green Construction Board	Board Member Buildings Mission Task Group
Irish Green Building Council	Gold Level Member
Investment Property Forum	Sustainability Interest Group
	Board Director BID Leicester; Director and Vice Chair of Aberdeen BID; Committee member Leeds BID
Business Improvement Districts (BID)	and Reading BID; Board Director Southampton BID; Chair of business engagement committee Croydon
	BID; Management Group Bristol BID
City Centre Strategic Management	Barnet Partnership Board:Chair of Strategic Management Board and Chair of Executive Board Leicester;
Member Reading Management Group
Chambers of Commerce	Member of Influence and Strategy Group East Midlands; Leeds Chamber Member; Hampshire Chamber
member
	Board Director of Destination Bristol; Enterprise Advisor, Leicester & Leicestershire Enterprise Partner-
City specific initiatives	ship (LLEP); Chair Brent Cross Resident's Association: Deputy Chair of City Centre Experiences South-
	ampton; Board Member Dundrum college
Civic Trusts	Civic Trust Member Leeds
Charitable Positions	Retail Trust Scottish Ambassador (influencer and promoter of the charity); Chair of Silverburn Forum
Community Group

2

N E T P O S I T I V E

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

35

2 . 0	P . 3 6
A B O U T N E T
P O S I T I V E	About NetPositive

2 . 1	P . 4 5
C O 2		2
			NetPositive for CO
2 . 2	P . 5 3		Use
R E S O U R C E
		Positive Resource
U S E
			Net for
2 . 3	P . 61
WA T E R			Net Positive for Water
2 . 4	P . 6 9		impact
S O C I O -
		Net Positive for Socio-economic
E C O N O M I C
I M PA C T

SUSTAINABILITY REPORT 2019: ABOUT NET POSITIVE

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

36 The Journey to

Hammerson	Net Positive
Hammerson's sustainability journey
	started back in 2006 when we set
	our first sustainability targets.
	Our work since has gone from strength
	to strength and that early foresight has
	reaped benefits for all of our stakeholders.

2014

Costa Eco Pod opens - result of partnership between Hammerson and Costa. Hammerson sells remaining office portfolio to focus on retail assets.

Terrasses du Port opens in Marseille achieving BREEAM Excellent and

2016

Paris Climate Accord signed by 197 countries committing to achieving less than two degrees of global warming

UN Sustainable Development Goals launched

Phase 1 of Hammerson's Net Positive commitment begins and includes

Carbon

Resource

Use

2018

Minimum Energy Efficiency standards come into force Hammerson commissions first portfolio-wide climate risk study

UK's joint hottest summer on record

Summer temperature peaks at 45.1°C in Paris

2020

Phase One ends, Hammerson aiming to be Net Positive for all landlord controlled carbon emissions, water and resource use PV array completed on Terrasses du Port

TWO

PHASE

Phase Two

Net Positive

2026

Phase Three Net Positive targets to launch bringing tenant water and energy use into scope

THREE

PHASE

37

About Net Positive

Positive 2

This is never truer than today when we are

bringing significant employment and

Water

targets to launch

Net for CO

proud to be able to publish market leading

targets and performance against them.

investment to the city

Socio-economic impact

ONE

PHASE

Reshaping Retail Report with Bioregional published.

Hammerson signs BBP Climate Commitment

bringing development impacts into scope

2008

Climate Change Act enshrined in UK legislation requiring reduction in greenhouse gas emissions and preparation for climate change risks

First Carbon budget is set. Better Buildings Partnership launched

Energy Performance Certificates launched in the UK

	EPRA
	Sustainability
Global	Best Practice
Reported
Real Estate
Standards
Sustainability
launched
Benchmark
launched

2012

All Hammerson environmental and community data moved to a single data management platform

Positive Places launched with a focus on the five key stakeholder groups

Hammerson publishes True Value of Shopping Centres

Hammerson launches supply chain survey

Hammerson sets Net Positive target baselines

Victoria Leeds opens

Westquay South opens in Southampton

Stores in England obliged to charge for plastic bags

2015

Elliott's Field Rugby Phase Two opens as the world's first BREEAM Outstanding retail park, carbon neutral for regulated energy and setting new fit out standards for retailers

Hammerson purchases three new assets in Ireland and opens office in Dublin

BBC airs Blue Planet II

along with 22 other major prop cos and asset managers

UK Government sets Net Zero Carbon target commiting to reduce carbon emissions by 100% against 1990 baseline by 2050

1.94MW PV installed across Hammerson assets

2019

2021

Hammerson Target to become Net Positive by 2030

Resource Use

Net Positive for

		Net Positive	for Water
		Net Positive for	Socio-economic impact

Hammerson sets environmental performance targets

2006

2009	2011

2013

2017

2030

SUSTAINABILITY REPORT 2019: ABOUT NET POSITIVE

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

38 Explaining

Hammerson	the Net
Positive
	Approach

Becoming Net Positive for our three key environmental impacts by the end of 2030 means reducing our carbon emissions, water demand and resource use to less than zero.

This is the most significant contribution we can make as a business to the battle against climate change. Launched three years ago as a 15 year commitment, it is extremely challenging but the earlier reductions in environmental impacts are made and the deeper they are, the better. Particularly for carbon emissions.

In order to become Net Positive we first had to measure our carbon, water, resource and socio-economic footprints.

Then we have to act to reduce our impacts and must track our progress year-on-year.

We started in 2016 using our 2015 data to form a baseline socio - economic and environmental footprint.

In this report we explore each of our four Net Positive areas and how the footprints have changed since 2015.

Carbon	page 45
Resource use	page 53
Water	page 61
Socio-economic	page 69

39

Net Positive

About

Key Features of
our Net Positive
commitment:
Early
Launching three years ago
means we have already made
significant progress towards
achieving our first target and
have cut emissions early.
+
Ambitious
Our targets include Scope
1,2 and 3 so include the
environmental impacts of the		WHAT
tenanted areas of our assets
and go beyond net zero. They
also go well beyond what
would be required to align
with the Paris Accord.
+
Transparent
We published material on		HOW
our approach, definitions and
environmental footprint at the
launch of the targets. Progress has
been published each year since
launch in our sustainability report.

2016 - 2020

Phase One

The first phase of our Net Positive commitment concludes at the end of 2020. From 1 January 2021, we aim to be operating with negative Scope 1 and 2 absolute carbon emissions, water demand and resource use across our operationally managed portfolio. This means we will be preventing the release of more carbon emissions than are emitted by our direct operations.

By the end	30,500
of Phase One	tonnes of
	CO2	to be
	reduced
	and offset
We plan	A constant	+
to achieve	focus on
good

Net Positive	management
through:

2021 - 20252026 - 2030

Phase Two Phase Three

335,593		21,400		Locally specific
cubic metres		tonnes of		socio-economic
of water to		resources to		programmes to
be reduced		be reduced		be rolled out
and offset		and offset		at each asset
Investment	+	Working with our	+	Offsetting
in efficiency		stakeholders to		any remaining
initiatives and		reduce impacts		emissions to
technologies		outside our direct		bring us to
		control but within our		less than zero
		value chain - insetting

Net Positive for CO 2

Resource Use

Net Positive for

		Net Positive	for Water
		Net Positive for	Socio-economic impact

SUSTAINABILITY REPORT 2019: ABOUT NET POSITIVE

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

40

Hammerson

Balancing Projects

Our approach to becoming Net Positive focuses on reduction through good management, investment

Once we have achieved the best outcomes we can using this approach, there will be residual impacts that we need to balance with projects of at least equivalent environmental value, to bring us to a Net Positive outcome. These are known as balancing projects.

We prioritise balancing projects that reduce impacts within our value chain - a process known as insetting. Insetting examples include supporting our retailers to reduce their energy and water demand and sending food waste from our sites to anaerobic digestion for conversion into green gas.

Our final step is reducing impacts through balancing projects outside our value chain - offsets.

EXAMPLE PROJECT

OUR BALANCING PROJECT PRINCIPLES

IN ACTION

Electric Vehicle (EV) charge points at assets across our portfolio

We have installed over 50 electric vehicle charging points at our assets, facilitating lower emission transportation for the visitors to our shopping centres. Their Carbon emissions reductions achieved through actions we take as a business can be considered a legitimate offset and can be counted as a reduction against our carbon footprint if they meet our balancing project tests.

41

Net Positive

About

in efficiencies, technology and onsite renewables first and foremost. This lies at the heart of our management approach for all our environmental impacts.

Example offset projects include water reduction activities in community organisations and diverting textiles from landfill by collecting and donating centre visitors' second hand clothes to charity.

We have worked with external consultants JLL Upstream and Futureground to develop a clear set of rules for balancing projects, ensuring that they are additional and that data is robust. These rules and our application of them in calculating performance against our Net Positive targets have been independently reviewed by Deloitte.

01Identify

A 'triage' process assesses projects happening across the group for inset or offset opportunities.

We have installed 50+ electric vehicle charging points at our assets, facilitating lower emission transportation for our visitors.

02 Check

Once identified we check projects against our principles. A set of decision trees determines appropriateness of the project and importance of Hammerson's role. Outcomes

Net Positive for CO 2

for Use

OUR

PRINCIPLES

Balancing Projects must always...

1. Have a clearly defined boundary in relation to scale, scope, impact and location
2. Be transparent in how their baseline and savings are calculated
3. Have additionality, defined as being larger in scale, impact and/or scope and/or take place more quickly as a result of Hammerson's involvement
4. Not have any significant negative one-off or recurrent secondary impacts upstream or downstream. These include environmental, social and business impacts
5. Be subject to a robust governance process, aligned to core business planning and management
6. Be monitored and quantified on a timely basis through efficient data collection and analysis, guided by a monitoring plan
7. Be reported in a transparent manner and on a regular basis

03 Plan

& implement

A member of the Sustainability Team works with relevant operational teams to plan Monitoring & Evaluation and establish a baseline for the project. Balancing Project Brief captures key information on measurement metrics and predicted impacts.

Hammerson Energy and Environment Manager works with Car Parks Manager to develop

a standard EV charger specification and a data management and monitoring system. EV usage is reported on a monthly basis and the potential for additional capacity monitored.

Applying this process ensures balancing projects are robustly assessed and data and decision- making can be reviewed by a third party.

are recorded on a project tracker.

Visitor travel to our assets is outside the scope of our Net Positive targets. Visitors to our centres are part of our business value chain. As this impact is affecting a part of our value chain it is a form of insetting rather than a form of offsetting.

04 Report

Final outputs are recorded in our balancing project tracker, and a report produced.

Charging is monitored and emissions savings calculated. Emissions savings from electrically powered miles are calculated, net of the emissions from electricity generation. Total for the year can then be set against our total carbon emissions.

Resource

Net Positive

		Net Positive	for Water
		Net Positive for	Socio-economic impact

SUSTAINABILITY REPORT 2019: ABOUT NET POSITIVE

42 Ensuring Best Practice

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

• Net Positive Reporting

43

Hammerson	and Transparency in
Our Reporting

WHAT IS COVERED	THE BASIS OF
IN THIS REPORTING?	REPORTING
Phase One 2016 - 2020	-	proportionate
Hammerson's equity		ownership basis
share of Scope 1 and	-	group level including
2 emissions from:		all Hammerson owned,
-	landlord procured		directly managed assets
	energy, water,	-	excludes assets under
	waste & refrigerants		indirect ownership
-	vacant unit		through investments

STANDARDS AND ASSURANCE

-	the environmental data
	contributing to our Net
	Positive reporting is
	independently assured
-	our processes for
	collating and calculating
	our Net Positive
	data have been
	independently reviewed

About Net Positive

Since the announcement of Net Positive our already best practice reporting has been enhanced further.

We continue to report in line with GRI and EPRA guidelines, and as such you will see any relevant tables throughout the report labelled with the appropriate reference and the GRI symbol.

This includes reporting for the EPRA like-for-like portfolio and whole portfolio on an operational control basis. For the full index of where relevant information can be found see page 132 onwards.

Our Net Positive targets and performance against them, are calculated on a proportionate ownership basis.

This aligns them with our financial reporting, linking business performance with sustainability performance.

You will find a Net Positive data table at the beginning of each data subsection. For more details on the basis of reporting see pages 80 - 84.

Below we summarise the basis of reporting for GRI & EPRA, and our new Net Positive reporting.

energy consumption

in other entities

• hammerson

Corporate	BASELINE
emissions	2015
	INTENSITY DATA
	-	common parts areas
	-	car park spaces
	-	visitor numbers

- our processes for

calculating our

performance against

our Net Positive

targets, including

the use of balancing

projects, has been

independently reviewed

F O R M O R E

For further details on

GRI & EPRA, and

Net Positive for CO 2

Net Positive for Resource Use

GRI & EPRA Reporting

REPORTING TIMEFRAME

1 January - 31 December 2019

our new Net Positive reporting see

pages 82 - 83.

WHAT IS COVERED IN THIS REPORTING?

Our key material issues:

• energy demand
• scope 1 and 2 carbon emissions
• community engagement
• waste and resource use
• sustainability of our product
• governance

THE BASIS OF

REPORTING

• group
• whole portfolio
• EPRA like-for- like portfolio

BASELINE

Whole portfolio: 2015

EPRA like-for-like portfolio: 2018

INTENSITY DATA

• common parts areas
• car park spaces
• visitor numbers

REPORTING TIMEFRAME

1 January - 31 December reporting year

STANDARDS AND ASSURANCE

• this report has been prepared in accordance with GRI Standards: Core option and EPRA
  Sustainability Best
  Practice Reporting standards
• third party assured

		Net Positive	for Water
		Net Positive for	Socio-economic impact

	1.0 I TRODUCTION	2.0 N T POSITIVE	3.0 OUR DATA
2 . 1	N E T	45
P OS I TIVE
				About PositiveNet
				PositiveNet COfor
					2
F O R				Net PositiveNet Positive for impact for WaterResource Use
C O 2				Net Positive for Socio-economic
				Full data
				tables:
				p.85
				- p.100

46

SUSTAINABILITY REPORT 2019: NET POSITIVE FOR CO2

Progress Summary

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

47

Hammerson

and Highlights

Reducing carbon emissions is central to tackling the climate emergency and central to our Net Positive strategy.

Our trajectory to become Net Positive for carbon

35,000
30,000
25,000					11,661
20,000					8,500
15,000	30,559	25,404	27,543	17,873
10,000
5,000
mtonnes	2015	2016	2017	2018	2019	2020
CO2e

Net Positive

CARBON EMISSIONS FOOTPRINT REDUCED BY

18,000

TONNES since 2015

Year-on-year operational energy demand reduced by

200kW of solar PV installed on our assets in 2019, bringing

	About Net Positive
2
	NetPositive for CO
	Net Positive for Resource Use

Net Positive carbon footprint reduced from 30,599 to 11,671 tonnes CO2e since 2015

WE HAVE ACHIEVED 31% YEAR-ON-YEAR REDUCTION IN OUR CARBON EMISSIONS FOR OUR NET POSITIVE PORTFOLIO

2020 Net Positive carbon emissions forecast to be balanced through inset and offset projects. We expect to be operating on a Net Positive basis for Scope 1 and 2 landlord emissions from 2021 onwards

Carbon

emissions from our Irish assets fell by 11% in 2019

our capacity to 1.94MWH against our target of

2MW by 2020

Net Positive for Water

Our ambitious targets have enabled us to make significant strides in reducing our Scope 1 and 2 carbon emissions.

Having achieved 28% year-on-year reduction in absolute emissions in 2019, our total reduction over the four years to the end of 2019 is 58% (approximately 18,000 tonnes). This excludes the impact of our clean energy contracts, and has been achieved largely through energy efficiency, with energy demand dropping 11% over the last 12 months.

In the UK carbon efficiency of the National Grid has contributed to improvements; in Ireland and France this has not been the case.

We are forecast to achieve a reduction of 22,304 tonnes in absolute carbon emissions by the end of

2020 against our 2015 footprint.

This will leave a residual emissions load of approximately 8,500 tonnes which we will offset through balancing projects (see pages 48 -

49). We are exploring how to deliver this in line with our additionality principle (see pages 40-41).

Reducing our absolute emissions to 8,500 tonnes, over 70% in five years would be an extraordinary achievement and delivering additional balancing projects to get to acheive a Net Positive or less than zero emissions position, could be transformational for our market. We look forward to sharing our progress and learnings along the way.

19%

CO sensors project

saved 19% of

landlord electricity use at the Bullring in 2019

Net Positive for Socio-economic impact
Full data
tables:
p.85
- p.100

48

Hammerson

SUSTAINABILITY REPORT 2019: NET POSITIVE FOR CO2

From Reduction to Net Positive

Reduction

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

Our Phase One NET

POSITIVE CARBON EMISSIONS footprint was calculated as

30,559 TONNES IN 2015

49

About Net Positive

Energy demand reduction remains the most valuable tool in our carbon emissions reduction strategy.

Good management and investing in efficient equipment and new technologies that support the transition to a low carbon economy play an important role. Reductions are achieved through setting clear targets for each asset and supporting on-site teams to deliver them.

Regular internal reporting on projects and to JV partners keeps us focused on delivery. This approach has led to excellent results again in 2019 with the portfolio as a whole achieving 11% reduction in energy demand.

This in turn has driven a 12% reduction in carbon emissions across our like-for-like portfolio, contributing significantly to

to our Net Positive target.

UK

Our UK portfolio is the biggest driver of carbon emissions within the business and the area where we have seen the greatest reductions in percentage terms. Key projects have included the removal of gas-fired equipment serving the common areas at Highcross in Leicester and installation of carbon monoxide (CO) sensors in Bullring and Westquay. We have continued to role out LED lighting and have installed smart metering at 12 of our 13 flagship assets in the UK and Ireland.

Artificial Intelligence at Bullring and Grand Central is also driving savings by providing data to inform our heating and cooling strategy. This resulted in a 24% reduction in gas demand in the common areas at Grand Central and equally impressive results at Bullring. This technology has the potential to improve performance at our other major assets and we will be exploring its implementation elsewhere in 2020.

Westquay in Southampton has achieved the biggest carbon emissions reduction within our portfolio

in 2019 at 17%. Individual asset performance figures against the REEB benchmark are published for the first time this year on page 27.

Ireland

Being a smaller portfolio, our Irish assets contribute less overall to our footprint. However Dundrum, as a large asset in an area with a carbon intensive electricity grid, is now the single biggest contributor to our carbon emissions. We are therefore focusing attention on efficiencies at this asset. For example investing in LED lighting reduced electricity demand by 9% in 2019, with further investment planned for 2020. We are also exploring the potential for a PV installation at Dundrum. Investment in clean, renewable power in a region with a carbon-intensive grid reduces our carbon emissions and supports the Irish renewables sector.

France

Our French portfolio represents only 20% of our carbon footprint because the electricity supply in France is mainly from nuclear power. Nonetheless, energy demand is a rising cost and remains a priority. Our energy performance contract in France continues to deliver strong savings as our Facilities Management and Operational teams collaborate closely to identify opportunities. Energy demand has fallen by 11% at Terrasses du Port in 2019 as a result. Investment in Building Management Systems, lighting upgrades and escalators has driven further savings at O'Parinor, Nicetoile and Italie Deux.

Corporate

Whilst our corporate footprint is small relative to that of our portfolios we are working to reduce this. Business travel has fallen in 2019 and we expect it to fall further in 2020 as our company car fleet in France transitions to electric and hybrid vehicles. Corporate data is available on pages 122 - 129.

Insetting

Insetting is the reduction of carbon emissions that are outside our direct control but within our value chain. This includes, for example, the emissions from the tenanted areas of our portfolios, or those from our construction supply chain.

They present important impact reduction opportunities to address as early as possible. We therefore actively engage with our value chain on projects to reduce their environmental footprint.

In 2019 we worked with over 40 retailers to achieve higher energy and water efficiency ratings for new store fit-outs, and we will be reporting carbon emission savings delivered as a result of these interventions between now and 2026.

Our BREEAM Excellent Retail Park

• Elliott's Field- and its associated high standards for fit-out has delivered 183 tonnes to balance our emission footprint in Phase One of Net Positive. More on page 51.

2020 TARGETS

• 14% reduction in carbon emissions from energy (Net Positive portfolio)
• 12% reduction in carbon emissions from energy for the EPRA like-for-like portfolio

Offsetting

We use offsetting as the last element of our approach to becoming Net Positive. These projects achieve quantifiable, verifiable environmental impact reductions as a result of our actions but are beyond our direct value chain. We use our internal Net Positive triage process to establish which balancing projects are permissible as part of our targets and what proportion

of savings we are able to claim. In

2019 we have included 125 tonnes of carbon emissions offsets achieved through employee engagement.

2
	PositiveNet for CO
	Net Positive for Resource Use
	Net Positive for Water
	Net Positive for Socio-economic impact
	Full data
	tables:
	p.85
	- p.100

50

SUSTAINABILITY REPORT 2019: NET POSITIVE FOR CO2

Highlight Projects

1.0 INTRODUCTION

2.0 NET POSITIVE

REDUCING OUR FOOTPRINT

Managing energy use with artificial intelligence

3.0 OUR DATA

BULLRING,

BIRMINGHAM

51

Hammerson

REDUCING OUR FOOTPRINT

Carbon monoxide sensors reduce	BULLRING'S
Bullring landlord electricity use by 19%	SERVICE YARD,
MOOR STREET

Since late 2016 we have been working with Grid Edge, an entrepreneurial start-up spun out of Aston University. Their innovative platform combines footfall, temperature and energy consumption data to enable proactive energy management through artificial intelligence and machine learning. To do

We installed more temperature sensors to improve our understanding of mall temperature fluctuations, which informed our peak summer cooling strategy and reduced air conditioning loads.

Also through this year we installed the system in Grand Central, where the information provided led to significant

About Net Positive

Bullring's service yard and close by Moor Street and Centre car parks have 16 extraction and air supply fans which used to run continuously. Monitoring the carbon monoxide (CO) concentrations in these areas showed CO concentrations were well within legal thresholds, removing

the need for continuous operation of the fans.

By installing sensors and variable speed drives, the fans could be modified to only operate when required.

We completed Phase One of this project in March 2019, introducing controls preprogrammed to turn on and off in line with higher traffic times. In cases of elevated CO a programme override is linked to the sensors.

When Phase Two of the project completes in Spring 2020 it will have delivered cabling infrastructure controls and variable speed drives for

the fans, which will result in additional energy savings and extend the life of the fans.

this, the software models and predicts a building's future energy profile so energy assets can be controlled optimally in real time.

In 2019 we combined this with triad warning alerts in Bullring Shopping Centre, to enable us to manage the centre's exposure to peak electricity charging whilst maintaining a comfortable environment for our customers.

reductions in gas demand.

In 2020 we plan to continue exploring uses for Grid Edge's platform, including investigating the impact on comfort, carbon, and cost of dispatching HVAC assets to release flexibility to the grid.

2
	PositiveNet for CO
	Net Positive for Resource Use

OFFSETTING OUR FOOTPRINT

Project outputs after completion:

19%	A saving of over

Elliott's Field, Rugby continues to lead by example

ELLIOTT'S FIELD RETAIL PARK, RUGBY

Positive Water

REDUCTION	500
in Bullring's	TONNES
landlord	carbon emissions
electricity	per year
demand	from this asset

1,917 mWh

of energy savings and £249,000 cost savings per year, with an under two

year project payback time

We continue to monitor tenant data at this asset which shows their energy demand to be considerably lower. When we opened Phase Two of Elliott's Field, it was the world's first BREEAM Outstanding retail park and designed to be zero carbon for regulated energy. Two years on we continue to monitor the operational performance of the asset due to many retailers exceeding the already high minimum fit-out standards and enhanced management practices.

These higher standards are delivering operational savings of up to 26% on these units.

These results demonstrate the significant efficiencies, both environmental and financial, that can be achieved through close partnership with tenants from design stage to execution.

Based on performance data from last two years, the total estimated carbon offset is

362 tonnes pa. comprising:

183 tonnes of carbon saved as

• result of energy- efficient retailer fit-outs

179 tonnes of additional carbon saved from the rooftop PV which serves retailers

	Net for
	Net Positive for Socio-economic impact
	Full data
	tables:
	p.85
	- p.100

2 . 2

POSIT

FOR

R E S O

U S E

1.0 INTRODUCTION	2.0 NET POSITIVE	3.0 OUR DA A
N E T	53
PositiveNet
IVE		2
	Net Positive About for CO
			Net Positive for Resource Use
URCE NetPositiveforNetPositiveSocio-economicimpactforWater
			Full data
			tables:
			p.102
			- p.105

SUSTAINABILITY REPORT 2019: NET POSITIVE FOR RESOURCE USE

54 Progress Summary Hammerson and Highlights

Our resource use reduction targets include waste streams and materials used across our business.

Our trajectory to become Net Positive for resource use

10,000
8,000
6,000					3,415	2,820
4,000	8,539	7,764	7,776	4,734
2,000
m3	2015	2016	2017	2018	2019	2020

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

3,356
tonnes
of organic
waste were sent
to anaerobic
digestion (AD)		We supported the
where it was
used to generate		reuse and recycling
green gas	600 of clothing through
	KG	the recycle to
	refresh element
	OF REUSED AND	of our autumn
	RECYCLED CLOTHING	fashion event
	In 2019 we managed
We used 317	35,000
tonnes of recycled	TONNES
content in concrete	of operational waste
in France and	across the portfolio

55

About Net Positive

2

NetPositive for CO

Net Positive for Resource Use

REDUCING OUR FOOTPRINT

Our Net Positive resource use footprint reduced to 3,415 in 2019, which puts us on track to become Net Positive for resource use by the end of 2020. This will be a significant achievement for the business.

290 tonnes of	70%
recycled steel
	of this was recycled or reused

Our campaign to

reduce plastic bottle use at The Oracle by

Net Positive	for Water
for	economicimpact

To become Net Positive for resource use, waste avoided, recycled or re-used must exceed the virgin materials used by the business and waste sent to landfill.

To achieve this we must reduce the resources we use, and ensure those we do use are sourced in a way that maximises the use of recycled and reused materials. We must manage our waste streams to avoid any going to landfill,

and identify routes for reuse and recycling that present opportunities to balance our residual resource use.

As the main factor affecting our Phase One Net Positive Resource Use target, we have focused our efforts on operational waste from our directly managed portfolio. Retailers' packaging waste is the largest contributor by volume; food and beverage tenants' organic waste is the largest contributor by cost.

Recycled materials play an important role on our Net Positive journey. Real estate is a resource- hungry industry so specifying and using recycled materials needs to become standard and an industry norm. Driving demand for these products will support the market in developing and innovating around sustainable solutions.

installing water fountains

prevented 28,000

plastic bottles, that's

280kgs

of plastic, from entering

the waste stream

Net Positive Socio-
Full data
tables:
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- p.105

SUSTAINABILITY REPORT 2019: NET POSITIVE FOR RESOURCE USE

1.0 INTRODUCTION

56 From Reduction

Hammerson	to Net Positive

Reduction

2.0 NET POSITIVE

3.0 OUR DATA

2020 TARGETS

•	85% waste
	recycling across
	EPRA like-for-
	like portfolio
•	100% diversion
	from landfill
•	Increase demand
	for recycled
	products through
	fit out and

57

About Net Positive

In Phase One of our Net Positive targets we have focused on effective management of waste streams. By working closely with tenants, we have encouraged waste sorting, focusing on reducing cross-contamination which adds cost to waste management and limits recycling opportunities.

Changing demand for recycled materials has seen the value of plastic waste streams increase by as much as a 58% this year, increasing income from recycling of PET. The value of other waste streams has fallen.

This has been particularly noticeable for cardboard. The income we receive for recycling is returned directly to tenants' service charge budget. But quality standards

for waste streams are rising and contamination tolerances are becoming difficult to meet.

This puts pressure on recycling rates. Our ambitious targets focus attention on finding sustainable solutions to this challenge.

Water fountains have been introduced across the portfolio with the aim of reducing plastic waste. We recorded a 5% reduction in plastic bottles entering our waste stream following this change at The Oracle, roughly equivalent

to 28,000 plastic bottles.

This isn't as significant as we would like and in 2020, we will increase signposting and communications around fountains to encourage their use as part of our portfolio-wide In Real Life communication campaign.

We are developing ways to reduce waste from tenant fit out and commercialisation partnerships. Our fit out guide helps tenants comply with design techniques and standards that minimise waste and we are looking at how to establish this with commercial kiosk partners. The Sustainability team meets regularly with the Marketing and Super Events teams to ensure they have input to any plans.

This collaboration has delivered lower-impact events, some of which deliver offset, while building sustainability knowledge across the group.

Through collaboration between the Sustainability and Project Management teams we work to monitor and minimise the resource use of our major projects. Our Development Materials Tracker enables us to monitor and manage resources being used for refurbishments and extensions across the group. Data captured includes sourcing information and how materials decisions have been made. This enables us to build our knowledge of available materials for future projects.

Insetting

In 2019 we have been trialling new ways to ensure those waste streams that can be, are reused or repurposed. A pilot project with Globechain at Bullring enabled our site team to offer unwanted items from office refurbishment and computer upgrades, as well as from shop fit out and events, to be donated to charities. This diverted waste from our waste stream into reuse and avoided

the purchase of new materials by charities. This extended the life of an estimated 800kg of materials in 2019.

In 2020 we aim to extend our reuse work and develop initiatives that will deliver both inset and offset by creating both tenant and customer reuse channels.

Cement contributes about 8% of the world's CO2 emissions and we are pleased to see new research and development projects on sustainable alternatives emerging.

As the extension of Cergy 3 outside Paris has continued in 2019, our specification of recycled content has reduced the use of virgin materials by over 600 tonnes.

development

Offsetting

Through our balancing projects triage process (more about our balancing project process on pages 40 - 41) we identified an opportunity to add a sustainability element to an existing fashion marketing event. The event, called Declutter to Refresh, focused on helping customers design a capsule wardrobe. We developed an initial step called Recycle to Refresh, inviting customers to donate their unwanted clothes directly to a range of charity partners. This diverted textiles from the waste stream directly to reuse via charity shops or online, or for re-purposing into new textiles.

More than half a tonne of clothes were collected and reused. The diversion of these clothes from landfill and the volume we were able to reuse directly, delivered a 6 tonne CO2 saving, and saved nearly one million litres of water.

2
	PositiveNet for CO
	Net Positive for Resource Use
	Net Positive for Water
	Net Positive for Socio-economic impact
	Full data
	tables:
	p.102
	- p.105

58

SUSTAINABILITY REPORT 2019: NET POSITIVE FOR RESOURCE USE

Highlight

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

OFFSETTING OUR RESOURCE USE

Trialing an equipment reuse scheme at Bullring

59

Hammerson

Projects

REDUCING OUR FOOTPRINT

Re-design of customer service desk reduces resource impact

BRENT CROSS, LONDON

In April 2019, we embarked on a new relationship with Globechain, to donate waste resources such as old IT equipment and display units to charities and Small and Medium- Sized Enterprises (SMEs) in our local communities.

We also donated several computers and associated

who would supply them to a school in Ile Ife, Osun State, Nigeria. The charity educates, feeds, provides uniforms and transportation for schoolchildren and

the computers were used by students in classes.

In 2020 we are exploring extending our reuse work and developing customer-facing

BULLRING, BIRMINGHAM

About Net Positive

The customer service desks in

Key features are:

The first desk is due to be installed in

equipment to a charity,

initiatives with Freegle.

Hammerson's assets provide a help point for shoppers and facilitate click & collect and hands-free shopping. These desks previously featured a curved exterior designed using a material that was durable, tough and repairable but that contained no recycled content and could not be recycled.

When updating this design in 2019 we asked the design team to find a concept that had sustainability at its core but maintained the functional success of the previous desk.

• certified FSC timber dowels form the exterior of the desk below the counter
• interior framing and surfaces of the desk will also be manufactured from FSC timber
• customer facing counter-top will be a Durat solid-surface product made from 100% recycled plastics. The product can be fully recycled through the Durat take-back scheme, is durable, cleanable and repairable
• each element is mechanically fixed for easy disassembly

Brent Cross in 2020. While each desk makes a relatively small resource sav- ing, multiplied across the portfolio this adds up. Exploring the potential of all projects big and small to contribute to our Net Positive targets is important to embedding sustainability within our business and to form our response to climate change.

Impacted

488

PEOPLE and 78

COMMUNITIES

Donated over

800 KG

of items to18 groups

2

PositiveNet for CO

Net Positive for Resource Use

Net Positive for Water

REDUCING OUR RESOURCE USE

Increasing food waste	AND WESTQUAY,
recycling by our retailers	CABOT CIRCUS, BRISTOL
SOUTHAMPTON

Assisted, through the donations, with

FIVE FUNDING or GRANT

Positivefor economic impact

In 2019, through our continued food waste reduction partnership with Organic Waste Logistics (OWL) and their BioWhale system, we have increased food waste recycling at Cabot Circus and Westquay.

The BioWhale system digests food waste on-site and has avoided the need for 86 truck collections of food waste.

The system has handled 827 tonnes of food in 2019, producing 664 tonnes of organic fertiliser and creating enough biofuel to provide electricity for 112 houses. This

is equivalent to avoiding 3,060 tonnes of carbon emissions.

APPLICATIONS

Net Socio-
Full data
tables:
p.102
- p.105

	SUSTAINABILITY REPORT 2019: NET POSITIVE FOR WATER
60	2 . 3
Hammerson

POSIF O R WA T

N1.0 I TRODUCTIONE2.0 N T POSITIVE

1. IV E R

3.0 OUR DATA
T	61
	About NetPositive
		2
	NetPositive for CO
E
	Net Positivefor ResourceUse
	Net Positive for Water
	Net Positive for Socio-economic impact
	Full data
	tables:
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	- p.111

SUSTAINABILITY REPORT 2019: NET POSITIVE FOR WATER

62 Progress Summary Hammerson and Highlights

Water is potentially our most challenging Net Positive target as it is an undervalued utility, despite water scarcity in the UK, and investment in water saving technologies

is difficult to justify. However, having such ambitious targets has helped us to start making significant savings.

Our trajectory to become Net Positive for water

350,000
300,000
250,000
200,000
150,000	335,593	314,576	281,695	259,797	236,000	180,000
100,000
50,000
m3	2015	2016	2017	2018	2019	2020

1.0 INTRODUCTION2.0 NET POSITIVE3.0 OUR DATA

Water	Net Positive
intensity
portfolio
per visitor
water demand
-5% reduction
reduced by
year-on-year	15%
in 2019

REDUCTION IN			to
		236,000 m3
WASHROOM	-	30%
WATER
use at The	23%
Oracle after
installation of
Propelair toilets
			OFFSET OF
			LANDLORD
LANDLORD WATER	WATER USE
ACHIEVED AT
DEMAND FELL	THE ORACLE
THROUGH
17%
TENANT AUDITS,
LEAK FIXING AND
INSTALLATION
OF WATER
ACROSS OUR	SAVING DEVICES
LFL IRISH ASSETS

SMART WATER SUBMETERING
COMPLETED AT 11 OF OUR 13	-98%
FLAGSHIP ASSETS

63

About Net Positive

2

NetPositive for CO

Net Positive for Resource Use

Net Positive for Water

NetPositive for Socio-economic impact

As with other Net Positive areas, becoming Net Positive for water means reducing demand through good management and investing in technologies, before enabling water saving projects within and beyond our value chain that balance residual water use.

In Phase One, we are focusing on water demand for landlord services across our directly managed assets.

We have achieved our 2019 target of 5% reduction in landlord water intensity.

One of the measures contributing to this is increased rainwater harvesting at Cabot Circus, Bullring and Westquay which has reduced potable water use by approximately 6,900 litres.

Reduction in water use for retail tenant at Union Square after our smart metering data identified a leak

Full data

tables:

p.106

- p.111

64

Hammerson

SUSTAINABILITY REPORT 2019: NET POSITIVE FOR WATER

From Reduction to Net Positive

Reduction

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

2020 TARGETS

•	Reduce landlord
	water intensity by a
	further 5% for our
	EPRA like-for-like
	portfolio.
•	Become Net Positive
	for water at 2 UK
	assets
•	Support our tenants
	in reducing water

65

About Net Positive

Understanding our water usage patterns has been a priority in

2019 and we have installed sub- metering at 10 of our UK assets and at Dundrum in Ireland. This enables daily monitoring of water demand and consumption, spotting any spikes in demand up to three months' quicker than when relying on billing.

A water audit at The Oracle identified water savings opportunities in areas such as cleaning and car parks and we are working with ABM Facilities to trial changes to the cleaning schedule to capture these. In 2020, we will conduct water use audits at Brent Cross, Centrale and Bullring to identify areas for further landlord water savings.

Landlord water demand is driven primarily by footfall so investments in water efficient technology, such as Propelair toilets, waterless urinals and low-flow taps has unlocked reductions. Where we have invested in these efficient technologies, smart meters can identify savings in these washroom areas, enabling us to create a roadmap to guide best practice across the group.

We still have a long way to go for our potable water demand for landlord services to become Net Positive.

However, we are already achieving growing reductions through the initiatives in place at assets and opportunities to collaborate with third parties. We have identified balancing projects to help address the residual water demand across our portfolio.

Insetting

Projects within our value chain

At The Oracle we wanted to better understand water use, reduce demand and deliver balancing projects within our value chain.

Through a partnership with Thames Water we implemented a project to support our tenants in reducing their water demand. An audit and meter data assessment in partnership with Ricardo Consultants, combined with a programme of repair and maintenance by Thames Water

has delivered great savings.

F O R M O R E

For further details on how we measure and manage water use at The Oracle see Highlight projects on page 67.

Elements of the work at The Oracle will now be extended to other centres in 2020. We will also explore offering tenants a leak fixing service in partnership with our maintenance contractors.

At Union Square Shopping Centre a small high street retail brand store was found to be using enough water to supply a large restaurant, suggesting a leak. The centre team informed the store, aided investigation and tracked savings when the retailer fixed the leak. This retailer enjoyed a 98% saving in water consumption as a result. Previously this would have gone undetected for up to three months.

In 2020 and beyond, our ambition is to work collaboratively with tenants to bring water use down, providing them with a valuable landlord service alongside an important environmental benefit. We will be able to provide accurate meter data to help them assess the impact of any process or behavioural changes they invest in.

demand

• Increase rainwater-

harvesting capacity

Offsetting

Balancing projects beyond our value chain

Through our partnership with Thames Water we have started supporting local water users outside our estate to reduce their water demand. Using our asset teams' networks across the community we have delivered water savings for one of the largest schools in Reading.

Through conducting a survey and installing technologies at Whitely School we expect to see a saving of over 16,000 litres/day. In 2020 we will work with General Managers, their teams and networks at The Oracle, Centrale and Brent Cross to drive further uptake for this service. This activity is a win-win-win: local communities receive a beneficial service; groundwater supplies are protected

and Hammerson achieves a valuable offset for our Net Positive water target.

2
	PositiveNet for CO
	Net Positive for Resource Use
	Net Positive for Water
	Net Positive for Socio-economic impact
	Full data
	tables:
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	- p.111

66

SUSTAINABILITY REPORT 2019: NET POSITIVE FOR WATER

Highlight

Projects

1.0 INTRODUCTION	2.0 NET POSITIVE	3.0 OUR DATA
BALANCING OUR IMPACTS
Measuring and managing our	THE ORACLE,
water use at The Oracle	READING

67

Hammerson

REDUCING OUR FOOTPRINT

2019 brings more rainwater	CABOT CIRCUS, BRISTOL AND
harvesting to our portfolio	ILAC SHOPPING CENTRE, IRELAND
We already have rainwater harvesting	Both systems supply customer	provide water for external cleaning,
in place at Cabot Circus in Bristol	toilets. In 2019, we installed new	including pavement and car parks.
and Ilac Shopping centre in Ireland.	rain-fed water tanks at both	Together they reduced mains
	Bullring and Grand Central to	water use by 6,900 litres a year.

REDUCING OUR FOOTPRINT

Installing best practice	THE ORACLE,
washroom technology	READING

In order to reduce water use in landlord managed areas, we worked with Ricardo to audit both meter data and the physical operational space within The Oracle; this improved our understanding of demand across the site and highlighted where we could change technologies and/or behaviours to save water.

Our Phase One Net Positive targets cover water demand for landlord services at our directly managed assets.

Water savings that we support or enable within the tenanted areas of the assets can be used as balancing projects to reduce the Phase One Net Positive water footprint.

During 2019 we worked with Thames Water to undertake a water saving survey of our tenants units, and with Ricardo to undertake a full audit of four tenant unit types: bars, coffee shops, fast food outlets and restaurants.

The findings enabled us to identify leaks, and opportunities for installing water saving devices on toilets, and in sinks. We also identified a number of tenants who had excessively high water use.

We are engaging with these tenants at corporate and local level to encourage them to further investigate the causes of higher than average usage.

98% of all tenants were

SURVEYED BY THAMES WATER

7,500 m3

Estimated water savings in 2019

		About Net Positive
		2
		NetPositive for CO
		Net Positive for Resource Use
		Net Positive for Water
		Net Positive for Socio-economic impact

In 2018 we installed Propelair toilets in the customer wash-rooms at The Oracle. Due to our footfall, toilets are the most significant driver of landlord water demand across our assets and the best practice toilets have made significant savings so far.

Overall environmental performance of the centre as Propelair reaches

highest environmental performance rating under BREEAM's water efficiency guidelines.

Additional benefits include improved hygiene as bacteria are trapped inside the closable lid and removed with the powerful flush, whilst the handle also contains antimicrobial additives to help reduce bacteria.

We have now made these toilets a standard part of our toilet fit- out specification and they will be rolled out at other assets as toilet upgrades are implemented.

from leak fixes

Full data

tables:

p.106

- p.111

2 . 4 N E T	1.0 INTRODUCTIONPOSITIVE3.0 OUR DATA
P O S I	T I V E
S O C I O -	F O R

E C O N O M I C I M PAC T

69

Net Positive

About

Net Positive for CO 2

Resource Use

Net Positive for

	Net Positive	for Water
	Net Positive for	Socio-economic impact

Full data

tables:

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- p.115

SUSTAINABILITY REPORT 2019: NET POSITIVE FOR SOCIO-ECONOMIC IMPACT

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

70 Progress

Hammerson	Summary and
Highlights

Hammerson has a long history of delivering positive socio-economic benefits. Our True Value of Retail reports released in 2017 and 2018 highlighted and quantified significant group-wide and asset-specific benefits. These include the creation of employment opportunities and major inward investment to the local area, as well as fiscal benefits from tax receipts, lower public benefits spending and improved public health outcomes.

In 2017 we publicly announced our commitment to be Net Positive for socio-economic impacts by 2030.

Silverburn

ISSUE General Health

15.6% reported as bad/ very bad health v 5.6% national average

PROJECT

The Wellness Enhancement Learning health and wellbeing programme

OUTCOMES

79% of participants reported a significant improvement in their health and wellbeing

Dundrum Town Centre

ISSUE

Youth Education

PROJECT

Cuchulainn Heart Challenge

OUTCOMES

Bullring & Grand Central

ISSUE

Deprivation & Unemployment

PROJECT Opportunity Fair engaging people who are disadvantaged, homeless, and living in temporary accommodation

OUTCOMES

22% people engaged secured employment within

F O R M O R E

For more on how we understand and deliver against local need see overleaf.

71

About Net Positive

Net Positive for CO 2

Net Positive for Resource Use

This commitment differs from our carbon, water and re-source use targets: we do not have a baseline of negative impact to reduce and then balance; instead we are focused on optimising positive impact. Our Net Positive target has evolved how we deliver socio-economic work, making our local investment more responsive to the needs of the cities in which we operate.

84% reported an increase in confidence

58% participants reported improved their communication skills

50% participants reported improved literacy

37% participants reported an increase in their maths/numeracy

Bullring & Grand Central

Brent Cross

ISSUE

Unemployment

PROJECT

Let's Talk Shop retailer jobs brokerage and pre- employment training

OUTCOMES

76 unemployed local residents secured employment within Brent Cross

O'Parinor

ISSUE

Unemployment

PROJECT

Initiative France

OUTCOMES

55 start-up businesses supported

Net Positive	for Water
for	economic impact

Our socio-economic dashboards identify key characteristics of those communities around our assets

in the UK, Ireland and France, helping to shape our investment and projects. The map to the right identifies a few of our key Net Positive projects from 2019.

Les Terrasses du Port

ISSUE

Unemployment

PROJECT

Initiative France

OUTCOMES

869 jobs created

65 start-up businesses supported

340 jobs created

Net Positive Socio-

Full data

tables:

p.112

- p.115

72

Hammerson

SUSTAINABILITY REPORT 2019: NET POSITIVE FOR SOCIO-ECONOMIC IMPACT

Shaping our Socio-economic Work

01 Understand

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

03 Deliver

73

Net Positive

About

Our socio-economic dashboards were developed to help us to understand the communities around our assets.

They provide key data for each area shown against the national average, covering:

• key demographics such
  as age, skill levels and more
• unemployment rates by age
• health
• disability levels

• crime
• education
• deprivation

This information allows us to identify community-specific issues where we could work with local community groups on providing support or an intervention.

We look to deliver against these needs in several ways including funding projects and services in the areas around our assets. By directing our financial and in-kind support to existing providers we can deliver positive impact in a cost-effective

and knowledgeable way.

As an organisation with a broad spectrum of skills sets, and the ability to connect local people to our tenants and their employment and skills opportunities, we also help local people improve their financial security, wellbeing and confidence through projects.

A sample of our corporate- level programmes by theme/issue are shown in table 2.1 below. For asset level projects see table 3.4.1 on pages 112-113.

Net Positive for CO 2

Positive for Use

National Average (Scotland)

Scotland Shopping Centre

Silverburn

0%

5%

10%

15%

20%

• of catchment population assessing themselves as having poor or very poor health.

For example, our Guided Well Enhancement Project (page 75) in Glasgow responds to the significantly higher proportion of the population with poor or very poor health - over 15% compared to the national average.

02 Partner

2019 Key Corporate Community	TABLE 2.1
Engagement Projects
PARTNER	ACTIVITY	THEME	OUTCOMES
Urban Plan	School regeneration	Young people	58 students engaged
workshops
Skills Builder	Educational workplace	Employment and Skills	175 people engaged
visits
RetailTRUST and	University business	Enterprise/	£10,000 business seed
Glasgow Caledonian
start-up support	Employment and Skills	funding allocated
University

Resource

Net

	Net Positive	for Water
	Positivefor	economic impact

As well as identifying local issues using our dashboard data we consult and partner with local stakeholders to drill deeper into these issues and develop collaborative and co-ordinatedcross-city responses for greater impact.

For example, in March 2019 we convened a workshop with a range of stakeholders from across Birmingham to develop a cross- city strategy for responding to increasing homelessness.

We are now looking at how we can co-ordinate with other landowners in the city to maximise the impact of our combined response. See page 28for more information.

Inspire Educational	Work Week - a work		3,100 young people
related learning	Employment and Skills
Business Partnership	engaged
programme

Net Socio-

Full data

tables:

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74

SUSTAINABILITY REPORT 2019: NET POSITIVE FOR SOCIO-ECONOMIC IMPACT

Highlight

Projects

1.0 INTRODUCTION	2.0 NET POSITIVE	3.0 OUR DATA
GENERAL HEALTH
Improving health and		GUIDED WELL ENHANCEMENT
wellbeing in Scotland		LEARNING PROGRAMME,
	GLASGOW

75

Hammerson

EMPLOYMENT & SKILLS

Nurturing future business leaders, responsible citizens and enterprising employees

According to our data, average health outcomes in Glasgow are lower than the national average with 15.6% of people reported as having 'poor' or 'very poor' health, compared with 5.6% nationwide. This makes health a highly relevant local issue that we have focused on in 2019.

Collaboration with Community Renewal, a Scottish charity, has supported residents local to our Silverburn asset in Glasgow to participate in the programme over eight weeks.

14 participants were referred to the programme by health professionals and have benefited from the

The programme has shown participants how to manage their health conditions, prevent and reduce stress related to depression and anxiety.

Following completion, all participants received a set of written materials to use at home, continuing their own Well

About Net Positive

LIONHEART

CHALLENGE,

UK AND IRELAND

Many of our centres are in areas with a relatively young demographic but higher-than-average youth unemployment rates. We therefore explore working

To qualify for the final, teams within participating schools had to develop a community project that responded to an issue in their local area. The winners then competed with winners

Each project had to be feasible with teams creating business plans, financial proposals and proposing possible project sponsors.

The Guided Well Enhancement Learning programme is a rigorously evidenced transformative course that, through self-management and self-compassion, reduces health inequalities by improving mental health and wellbeing.

information, advice and guidance from trained professionals. Topics covered included nutrition and food, handling stressful thoughts and understanding health cycles.

Enhancement Learning journey.

This has been a very successful project in 2019 and we expect to continue our partnership with Community Renewal in 2020.

Net Positive for CO 2

with schools to support young people in developing the skills and attributes they need to succeed before they enter the job market. Our relationship with LionHeart demonstrates

from other schools to develop a community project that would support and benefit a specific group of citizens. Projects ranged from de-stigmatising teenage pregnancy to a community

Volunteers from Hammerson acted as advisors, imparting advice from their professional experience. Each team presented their project to a panel of judges. St. Paul's High School in Glasgow were crowned the winners for

ENTERPRISE

Supporting the next generation	ENTERPRISE SUPPORT,
of retail entrepreneurs	GLASGOW

Net Positive for Resource Use

this type of work in action.

The LionHeart Challenge is a business, enterprise and citizenship programme designed to nurture pupils as future business leaders, responsible citizens and enterprising employees.

We have worked with LionHeart in Scotland since 2015 but in 2019, we held our first international LionHeart Challenge Final in London with two teams of pupils from the UK and two in Ireland. The teams were from schools located close to Dundrum Town Centre and Illac in Ireland, Silverburn in Glasgow and Bullring and Grand Central in Birmingham.

hub aimed at building intergenerational relationships.

creating a project to address and tackle period poverty.

The catchment area surrounding Silverburn in Glasgow experiences higher unemployment rates than the national average. It also has a relatively young demographic. We therefore work with local organisations

in this area to support youth employment through offering, for example, work experience programmes. We also focus on supporting young entrepreneurs.

Working with trade charity retailTRUST and Glasgow Calendonian University we offer scholarships and business start-up funding to support the next generation of retail talent to make their ideas a reality.

Glasgow Caledonian University graduate Emma Russell received two rounds of funding including mentoring support to establish her fashion business, Pplrstrange.

She creates a unique range of creative clothing collaborations as well as pop-up events showcasing designers, street-wear labels and emerging brands., Emma exhibited her collection at the Hammerson London Head Office during Global Entrepreneurship

Week to an audience that included national retailers and buyers.

Other beneficiaries include two Fashion Marketing graduates who launched SKYA, a swimwear brand based in Scotland that produces garments using recycled fibres.

Net Positive	for Water
Net Positive for	Socio-economic impact

Full data

tables:

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- p.115

O U R D A T A

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

D A T A M A N A G E M E N T

A N D T A R G E T S

3 . 1

C A R B O N A N D E N E R GY D A T A

3 . 2

R E S O U R C E U S E

A N D WA S T E D A T A

3 . 3

WA T E R D A T A

3 . 4

S O C I O - E C O N O M I C D A T A

3 . 5

S T A N D A R D S

A N D C E R T I F I C A T I O N S

3 . 6

C O R P O R A T E D A T A

3 . 7

D A T A C O V E R A G E

3 . 8

G R I I N D E X

3 . 10

G H G E M I S S I O N S F A C T O R S

3.9 GLOSSARY

Resource Use Carbon Data and Waste and Energy Management DataDataand Targets

DataeconomicSocio-DataWater

Other

SUSTAINABILITY REPORT 2019: OUR DATA - DATA MANAGEMENT AND TARGETS

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

78 Contents

A guide to this section

Hammerson

			PAGE
3.0 DATA MANAGEMENT AND TARGETS
•	Net Positive Basis of Reporting, Data & Boundaries	80
•	GRI & EPRA Basis of Reporting, Data & Boundaries	81
•	Data Collection and Verification for our Reporting	82
•	Our Short-Term Sustainability Targets	84
3.1 Carbon and Energy	85
- Our Net Positive Carbon Emissions Data	85
- GRI & EPRA Carbon and Energy Data	86
3.2	Resource Use and Waste	102
- Our Net Positive Resource Use Data	102
- GRI & EPRA Resource Use Data	103
3.3	Water	106
- Our Net Positive Water Data	106
- GRI & EPRA Water Data	108
3.4	Socio-Economic Impacts	112
- Asset Level Project Data	112
3.5	Standards and Certifications	116
3.6	Corporate Data	118
- Risk Management	118
- Managing corporate environmental impacts	120
- Employee development and satisfaction	122
- Managing Health and Safety	126
3.7	Data Coverage	130
- Assets included in the data sets for 2019	130
3.8	GRI Index	132
- General Standards Data	132
3.9	GHG Emissions Factors	134
3.10 Glossary	135

79

Carbon Data and Energy Management Dataand Targets

and UseResourceWasteData

WaterData

SocioData -economic

Other

SUSTAINABILITY REPORT 2019: OUR DATA - DATA MANAGEMENT AND TARGETS

80 3.0 Data Management

1.0 INTRODUCTION	2.0 NET POSITIVE	3.0 OUR DATA
GRI & EPRA Basis of Reporting,	81
Data & Boundaries

Hammerson	and Targets

This report covers the period of

1 January 2019 to 31 December 2019.

We segment our reporting by regional portfolio. Data is provided as follows:

- at Group level for all managed

assets. This excludes our

Not included in the report:

-	assets from the date of disposal
	during the reporting period
-	indirect investment interests in
	which we hold only debt or other
	financial instruments

The environmental performance of these assets is excluded from our like-for-like portfolio analysis but included in our whole portfolio, regional and Group data for

the months that the properties remained under our ownership for 2019.

Carbon Data Energy Management and Targets

We take an equity share approach to our Net Positive targets and reporting.

We report data for all assets held during the reporting period. Data for assets acquired during the reporting period is included from the date of purchase and for assets sold during the reporting period, up until the date of transaction completion. Data is reported on an equity share basis for each asset and for the portfolio as a whole.

Exclusions:

• assets from the date of disposal
• indirect investment interests
• impacts from construction activities at our developments
• impacts from the tenanted areas of our assets

Whilst we have operational control of those assets we manage, key decisions are made jointly with our joint venture (JV) partners. Taking an equity share approach restricts us from benefiting from impact reductions flowing from the investment of those JV partners. It also reduces the overall impacts we are addressing to those from which Hammerson accrues financial benefits, linking business output and environmental and social impacts.

This report covers the Phase 1 period of our Net Positive targets;

Environmental data included in the report:

Scope 1 and 2 emissions from directly managed assets, Scope 1, 2 and 3 emissions from corporate activities:

• landlord procured energy, water, waste & refrigerants
• landlord procured energy, water and waste sub-metered to tenants
• vacant unit energy consumption
• corporate travel and consumables
• emissions factors used within the report are list on page 139

KEY CHANGES TO THE NET POSITIVE PORTFOLIO

Since the 2015 baseline we have made the following changes to the Net Positive portfolio:

• sold:
  Three French assets Eight UK retail parks
• reduced our equity holdings in: One UK asset
  One French asset
• purchased: One UK assets Three Irish asses One French asset
• developed: Two UK assets

BASELINE

2015 is our Net Positive baseline year.

Our Net Positive targets include all jurisdictions in which the business has commercial interests.

INTENSITY DATA Intensity data is based on adjusted profit before tax, common parts areas, car park spaces and visitor numbers.

OFFSETTING

Given that it is not possible for a property company to operate without environmental impacts, an offsetting mechanism has been established

as part of the development of our Net Positive targets. Projects will be identified that will equate to the remaining impacts we are unable to avoid, calculated at the end

of each five year target phase. A process and set of principles have been established to define what projects are considered legitimate offsetting for this purpose.

	corporate offices.
-	by Regional portfolio:
	-	UK Shopping Centres
	-	UK Retail Parks
	-	France Shopping Centres
	-	Ireland Shopping Centres
-	for our assets held for
	development, the Strategic
	Portfolio

We report against two portfolio definitions:

• whole portfolio which includes all properties that we have owned within the reporting period and over which we have management control, either directly or through a directly contacted third party (including assets held for development purposes only (strategic portfolio) where we provide utility supplies to the site.
• EPRA like-for-like portfolio which includes assets held for a minimum period of two years over which time the asset has not undergone development activity that would have significantly affected performance.

As a landlord we have direct control of the common parts, car parks, back of house and service yard areas of our assets. Our reporting includes only these areas of our assets. Tenant usage data is excluded.

-	impacts from construction
	activities at our developments
-	properties part of or adjacent
	to new developments that
	are affected by significant
	development works

GRI & EPRA DATA

Our reporting is designed to meet the core requirements of the Global Reporting Initiative Construction and Real Estate Sector Disclosure standards and the Gold level of EPRA's Sustainability Best Practice Reporting standards. For GRI reporting purposes our material issues are:

• governance and reporting
• energy security and demand
• climate change risk and policy
• waste and resource use
• community Engagement
• sustainable Product

KEY CHANGES TO THE GROUP AND EPRA PORTFOLIOS

In 2019 we sold the following assets:

• Abbotsinch Retail Park
• Luton - B&Q Warehouse Store Retail Park
• St Oswalds Retail Park
• The Broadway (Didcot)

TRANSPORT DATA

The data period for corporate travel reporting runs 01 January to 31 December in line with all other annual and sustainability reporting.

Corporate travel data includes:

• fleet transport for the Group
• air travel for the Group
• domestic and international train journeys for the Group
• taxis and public transport journeys for the Group
• car travel resulting in mileage reporting for the Group

Data collection and calculations:

• rail and air mileage is calculated using online mileage calculators
• emissions associated with visitor travel to our shopping centres are calculated on the below basis:

• for car journeys we assumed 2.4 heads per vehicle and an average of 11.91 miles per round trip, based on the BCSC 2008 report 'Contribution of the Retail Sector to the Economy'.

Other DataeconomicSocio-DataWater DataandResourceWasteUse Dataand

SUSTAINABILITY REPORT 2019: OUR DATA - DATA MANAGEMENT AND TARGETS

82 Data Collection and Verification for our Reporting

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

83

Hammerson

We have comprehensive, robust environmental data collection systems in place across our portfolios.

Utility and waste data is captured onsite at all our shopping centres, and by a third party management company for our retail parks. Data is collected from manual meter reads, automated meters, invoices and data provided by our energy bureau service. This is then uploaded to our Credit 360 data reporting platform on a monthly basis where it is assessed and verified at three levels within the organisation;

the Sustainability Data Analyst, the Energy and Environmental Manager or Sustainability Manager for our French assets and the Group Head of Sustainability.

In 2016, we automated input of half-hourly energy consumption data for the Retail Parks portfolio. This is now automatically uploaded once a month into Credit 360 for the majority of the Retail Parks portfolio, reducing the opportunity for error and streamlining our data gathering process.

This data set is used for our whole portfolio, EPRA like-for-like and Net Positive reporting portfolios.

For Net Positive balancing project data we have a Net Positive tracker, which records details of offset and inset savings achieved through different projects.

For more see pages 40 - 41.

INDEPENDENT ASSURANCE

Our data collection and verification processes undergo third party assurance each year, the 2019 Data Assurance Statement is available on our website. The output report of the independent assurance shapes data improvements for the following year. The tables below set out the scope of our independent assurance and performance data that has been assured in 2019.

CLEAN ENERGY

87% of our UK and Ireland electricity is purchased through REGO backed clean electricity contracts. This constituted 54% of our total electricity purchasing in 2019.

MONITORING DATA AT AN ASSET LEVEL

Since 2017 we focused on process improvements for onboarding and training of new assets

and recruits to ensure data accuracies are maintained and continual across the portfolio.

Centre teams and third party property managers all have access to the system and are able to monitor performance to identify anomalies. The majority of data is taken from monthly manual meter readings or supplier invoicing. We require evidence to be provided where there are variances larger than 10% compared to the same month in the previous year. This data married with comments and evidence are reviewed through

ESTIMATED DATA

Whilst we make every effort to ensure our reporting is based on actual data there are inevitably instances where estimations are necessary. These are calculated in one of two ways:

1. based on actual data for the previous most relevant previous period
2. based on invoices from utility providers

Estimated data is indicated in footnotes to each table where relevant. The quantity is not material within this year's reporting.

REPORTING STANDARDS

This report has been prepared in accordance with the GRI Standards: Core option, and references disclosures:

- 403-1,403-5,403-6 and 403-9

from GRI 403: Occupational

Health; Safety 2018

- 203-2 (a) from GRI

203. Indirect Economic

Impacts 2016

- 401-1 (a) from GRI 401:

Employment 2016;

- 405-2 (a & b i) from GRI

405: Diversity and Equal

Opportunity 2016; and

- 416-1 and 416-2 from GRI

416: Customer Health

DataDataDataand Targets

Water and Waste and Energy Management

Resource Use Carbon Data

EPRA Performance indicators based on Independently Assured data

GHG-dir-abs

Scope of independent assurance for 2019

Total Scope 1 greenhouse gas emissions (tCO2e)

the internal approval process.

AUTOMATED UTILITY METERING

and Safety 2016

Socio- economic Data

Carbon GHG-indir-absGHG-lfl

GHG-int

Water Water-absWater-lfl

Waste Waste-absWaste-lfl

Elec-abs

Fuels-abs

DH&C-abs

Energy Energy-int

Elec-lfl

Fuels-lfl

DH&C-lfl

	Total Scope 2 greenhouse gas emissions
Carbon	(tCO2e)
Total Scope 3 greenhouse gas emissions
	(tCO2e)
	Scopes 1, 2 and 3 greenhouse gas emissions per
	an intensity metric chosen by Hammerson plc
Water	Total Landlord Obtained Water (m3)
Water for landlord services (m3)
	Total Waste Quantity including shop-fit
Waste	(tonnes)
Recycled waste (tonnes)
Energy Target	Reduce operational energy consumption by
15% by 2020 (EPRA like-for-like portfolio)

Manual reporting of utility data, whilst normal across the sector, is resource intensive and prone to error. In 2018 we started to roll out the installation of automated utility metering across our UK and Ireland shopping centre assets.

This has enabled data improvements, visibility, communication and accuracy through providing

15-minute interval data for all meters and sub-meters for all utilities on a day +1 basis.

Portfolio Denominators				Other
Intensity metrics are provided for energy, carbon and water
data. These are based on the following denominators:
COUNTRY	COMMON	CAR PARK	VISITOR
PART AREAS	SPACES	NUMBER
UK
Shopping Centre	257,173		189,359,836
EPRA LFL	224,055
Retail Parks	n/a	14,240
EPRA LFL	n/a	12,715	n/a
France

ENERGY MANAGEMENT SYSTEM

As a part of our ISO14001 compliant Energy Management System (EMS), environmental data is subject to regular internal and external audit procedures.

Some data is collected and maintained outside of the Credit 360 system:

• corporate travel journey data and emissions is collected from an employee expenses system and Corporate Traveller, our corporate travel booking system
• company fleet emissions are collected from the leasing companies

• data for office energy consumption is gathered direct from our external property managers
• cnergy consumption for our strategic portfolio is gathered direct from our external property managers

In addition to providing more accurate, auditable data, we will be able to more proactively manage our utility consumption and look for further savings.

In 2020 we will continue to extend the automated metering roll out and look to incorporate the data reporting outputs directly to the Credit 360 data management system.

Shopping Centre	143,404	67,407,917
EPRA LFL	116,889
Ireland
Shopping Centre	53,167		44,587,237
EPRA LFL	44,195

SUSTAINABILITY REPORT 2019: OUR DATA - DATA MANAGEMENT AND TARGETS

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

84 Our short-term sustainability targets

Hammerson	We set annual targets for our
portfolios that support our long
term Net Positive targets. Our
2020 and 2021 environmental

3.1 Carbon and Energy

Our Net Positive Carbon Emissions Data

85

and DataManagementTargets

targets are set out below.

2020 and 2021 Environmental targets

We are now four years into the first five-year phase of our Net Positive targets. Setting these ambitious targets has re-focused the business' attention on driving down carbon emissions. Net Positive data is based on an equity share portfolio.

Our percentage ownership of an asset is the amount of emissions we take responsibility for.

We have always been clear that achieving our Net Positive targets will require offsetting. In this report we have set out our approach to developing balancing projects

that will ultimately result in a Net Positive outcome for our scope 1 and 2 carbon emissions (see pages 40 - 41 for details). For transparency we have set out in table 3.1.3 what contribution these balancing projects have made to our 2019 Net Positive carbon emissions.

Resource Use Carbon and Waste and Energy DataData

Net Positive Portfolio	EPRA LFL Portfolio
(Proportionate ownership/equity share basis)	(Operational control basis 100% share)

Net Positive carbon emissions by whole portfolio	TABLE 3.1.1

	2020	-14%	-12%
Carbon
2021	<0 tonnes CO2e	-10%
	2020	n/a	-4%
Energy
2021	n/a	-3%
	2020	Net Positive for water for landlord services @ 2	-5% water intensity
	managed assets
Water
2021	Net Positive for water for landlord services @ UK	-5% water intensity
	assets
Resource	2020	<0 tonnes operational resource use footprint	75% recycling
use	2021	<0 tonnes operational resource use footprint	100% diversion from landfill
	2020	Complete at least 1 locally relevant community	Complete at least 1 locally relevant community
Socio-	project at each managed asset	project at each managed asset
economic	2021	Complete at least 1 locally relevant community	Complete at least 1 locally relevant community
	project at each managed asset	project at each managed asset

	UNIT	2015	2017	2018	2019	% CHANGE YOY
Hammerson GROUP
Scope 1 and 2 (landlord obtained)	tCO2e/yr		22,616	14,581	11,096
Scope 3 (Landlord obtained)	tCO2e/yr		1,912	1,441	613
Scope 3 (Landlord transmission and distribution)	tCO2e/yr		1,709	924	716
Corproate Travel	tCO2e/yr		1,111	1,115	657
Corporate Offices	tCO2e/yr		539	398	271
Corporate Consumables	tCO2e/yr		4	4	4
Hammerson Net Positive Carbon emissions	tCO2e/yr	30,599	27,819	18,463	13,357	28%
Tenant Engagement efficiencies	tCO2e/yr			200	938
On-site clean power generation	tCO2e/yr		352	469	281
EV Charging provision	tCO2e/yr				106
Embodied Carbon reductions	tCO2e/yr		59	274	211
Other engagement savings	tCO2e/yr		1.7	562	150
Balancing projects			413		1,686
Hammerson Net Positive Carbon Footprint	tCO2e/yr	30,599	27,406	17,873	11,671	-35%

The chart below sets out our	This identifies the carbon emissions
Net Positive carbon emissions	we currently expect to remain and for
trajectory to the end of 2020.	which we will be identifying further
	balancing projects across the year.

Our Net Positive carbon emissions pathway

Other DataeconomicSocio-DataWater

35,000
30,000
25,000					11,677
20,000					8,600
15,000	30,559	25,404	27,543	17,877
10,000
5,000
mtonnes	2015	2016	2017	2018	2019	2020
CO2e

Net Positive carbon footprint reduced from 30,559 to 11,671 tonnes CO2e since 2015

2020 Net Positive carbon emissions forecast to be balanced through inset and offset projects. We expect to be operating on a Net Positive basis for Scope 1and 2 landlord emissions from 2021 onwards

F O R M O R E

Read the full story: see page 45 - 51

86

SUSTAINABILITY REPORT 2019: OUR DATA - CARBON AND ENERGY DATA

Tables 3.1.2- 3.1.10 set out our GRI and EPR compliant carbon, energy and GHG emissions data

GRI & EPRA Carbon and Energy Data

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

GRI

87

Hammerson

Carbon emissions by Group and Porfolio

		UNIT	EPRA CODE	2015	2016
Hammerson Group
Total CO2e (Location Based)		mtCO2e		33,703	32,026
Scope 1		mtCO2e	GHG-Dir-Abs	5,852	5,414
Scope 2		mtCO2e	GHG-Indir-Abs	27,851	26,612
Scope 3a		mtCO2e	GHG-Indir-Abs	1,835	832
Total CO2e (Market Based)a		mtCO2e		16,142	12,984
Scope 1		mtCO2e	GHG-Dir-Abs	5,852	5,414
Scope 2		mtCO2e	GHG-Indir-Abs	10,290	7,571
Scope 3a		mtCO2e	GHG-Indir-Abs	135	104
Common parts area (CPA)		m2		425,476	465,490
GHG intensity		kgCO2e/CPA	GHG-Indir-Abs	65	69
Hammerson UK Shopping Centres (Coverage 12/12)
Total CO2e (Location Based)		mtCO2e		24,804	22,577
Scope 1		mtCO2e	GHG-Dir-Abs	3,111	2,912
Scope 2		mtCO2e	GHG-Indir-Abs	21,693	19,665
Scope 3b		mtCO2e	GHG-Indir-Abs	1,700	707
Total CO2e (Market Based)a		mtCO2e		7,243	6,035
Scope 1		mtCO2e	GHG-Dir-Abs	3,111	2,912
Scope 2		mtCO2e	GHG-Indir-Abs	4,132	3,122
Scope 3b		mtCO2e	GHG-Indir-Abs	n/a	n/a
Common parts area (CPA)		m2		294,547	273,119
GHG intensity		kgCO2e/CPA	GHG-Int	84	83
Hammerson UK Retail Parks (Coverage 14/14)
Total CO2e (Location Based)		mtCO2e
		1,834	1,345
Scope 1		mtCO2e	GHG-Dir-Abs	4	3
Scope 2		mtCO2e	GHG-Indir-Abs	1,830	1,342
Scope 3b		mtCO2e	GHG-Indir-Abs		21
Total CO2e (Market Based)a		mtCO2e		-	1,345
Scope 1		mtCO2e	GHG-Dir-Abs	4	3
Scope 2		mtCO2e	GHG-Indir-Abs	1,830	1,342
Scope 3b		mtCO2e	GHG-Indir-Abs	n/a	n/a
Car park spaces (CPS)		Number		22,714	19,766
GHG intensity		kgCO2e/CPS	GHG-Int	81	68

1. Market Based calculations reflect emissions factors relevant for clean electricity contracts where applicable.
2. Scope 3 includes gas and electricity submetered to tenants for use in tenanted areas. Scope 3 is from tenant submetered energy supplies only and is excluded from Total Sold assets are included for the months under our management.

A table of all factors applied is available on page 134

				GRI INDICATOR	TABLE
	305-1,305-2,305-3,305-4	3.1.2
2017		2018		2019		% CHANGE	% CHANGE
			YOY	VS. 2015
29,858							-27%
	27,112		24,604		-9%
4,351		5,297		4,829		-9%	-17%
25,508		21,815		19,775		-9%	-29%
1,907		1,897		3,152
12,131		10,710		10,575		-1%	-34%
4,351		5,297		4,928		-7%	-16%
7,780		5,413		5,647		4%	-45%
1,578		1,897		3,161
460,163		471,884		474,271
65		57		52		-10%	-21%
17,846
	15,460		13,138		-15%	-47%
1,769		2,971		2,990		1%	-4%
16,077		12,489		10,148		-19%	-53%
1,770		1,671		2,263
3,746		4,390		4,327		-1%	-40%
1,769		2,971		2,990		1%	-4%
1,977		1,418		1,337		-6%	-68%
1,467		1,671		2,263
273,119		257,173		273,119
65		60		48		-20%	-43%
1,244
	651		483		-26%	-74%
3		3		2		-47%	-60%
1,240		648		481		-26%	-74%
0		0		10
1,244		897		737		-18%
3		3		2		-47%	-60%
1,240		894		735		-18%	-60%
0		0		10
17,245		18,140		14,240
72		36		34		-5%	-58%

Continues on next page >

Carbon emissions intensity of our Group portfolio has fallen by

21%

over the last 4 years and 10% in the 12 months to December 2019

Carbon Data and Energy Management Dataand Targets

and UseResourceWasteData

WaterData

SocioData -economic

Other

SUSTAINABILITY REPORT 2019: OUR DATA - CARBON AND ENERGY DATA

88

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

GRI

89

Hammerson		< Continues from previous page
				UNIT		EPRA CODE		2015		2016
	Hammerson France Shopping Centres (Coverage 8/8)
	Total CO2e (Location Based)		mtCO2e
					7,065		5,514
		Scope 1		mtCO2e		GHG-Dir-Abs		2,737		2,407
		Scope 2		mtCO2e		GHG-Indir-Abs		4,328		3,107
		Scope 3b		mtCO2e		GHG-Indir-Abs		135		104
	Total CO2e (Market Based)a		mtCO2e				7,065		5,514
		Scope 1		mtCO2e		GHG-Dir-Abs		2,737		2,407
		Scope 2		mtCO2e		GHG-Indir-Abs		4,328		3,107
		Scope 3b		mtCO2e		GHG-Indir-Abs		135		104
		Common parts area (CPA)		m2				108,215		119,892
		GHG intensity		kgCO2e/CPA		GHG-Int		65		46
	Hammerson Ireland Shopping Centres (Coverage 3/3)
	Total CO2e (Location Based)		mtCO2e
							2,355
		Scope 1		mtCO2e		GHG-Dir-Abs		n/a		43
		Scope 2		mtCO2e		GHG-Indir-Abs		n/a		2,312
		Scope 3b		mtCO2e		GHG-Indir-Abs				0
	Total CO2e (Market Based)a		mtCO2e						43
		Scope 1		mtCO2e		GHG-Dir-Abs		n/a		43
		Scope 2		mtCO2e		GHG-Indir-Abs		n/a		0
		Scope 3b		mtCO2e		GHG-Indir-Abs		n/a		0
		Common parts area (CPA)		m2						52,713
		GHG intensity		kgCO2e/CPA		GHG-Int				45
	Hammerson Strategic Portfolioc (Coverage 15/15)
	Total CO2e (Location Based)		mtCO2e				n/a
						235
		Scope 1		mtCO2e		GHG-Dir-Abs		n/a		49
		Scope 2		mtCO2e		GHG-Indir-Abs		n/a		186
		Scope 3b		mtCO2e		GHG-Indir-Abs		n/a		0
	Total CO2e (Market Based)a		mtCO2e				n/a		49
		Scope 1		mtCO2e		GHG-Dir-Abs		n/a		49
		Scope 2		mtCO2e		GHG-Indir-Abs		n/a		0
		Scope 3b		mtCO2e		GHG-Indir-Abs		n/a		0
	Total Retail Portfolio CO2e		mtCO2e				33,703		32,026
	(Location Based)

1. Market Based calculations reflect emissions factors relevant for clean electricity contracts where applicable.
2. Scope 3 includes gas and electricity submetered to tenants for use in tenanted areas. Scope 3 is from tenant submetered energy supplies only and is excluded from Total Sold assets are included for the months under our management.
3. Hammerson Strategic Portfolio includes assets held for development purposes and voids within these only.

We do not provide sufficient utility services to this portfolio to generate meaningful intensity metrics.

A table of all factors applied is available on page 134and the Hammerson Positive Places website at sustainability.hammerson.com/

				GRI INDICATOR		TABLE
	305-1,305-2,305-3,305-4		3.1.2
2017		2018		2019		% CHANGE		% CHANGE
			YOY		VS. 2015
5,243
	4,541		5,103		12%		-28%
2,195		1,613		1,117		-31%		-59%
3,049		2,928		3,986		36%		-8%
110		197		639
5,243		4,306		4,432		3%		-37%
2,195		1,613		1,216		-25%		-56%
3,049		2,694		3,216		19%		-26%
110		197		649
103,870		143,404		120,983
50		32		42		33%		-35%
5,374
	5,714		5,065		-11%
255		513		520		1%
5,120		5,201		4,545		-13%
28		28		229
1,411		562		528		-6%
255		513		520		1%
1,156		49		8		-84%
2		28		229
65,929		53,167		65,929
82		107		77		-29%
151
	746		814		9%
129		197		200		2%
22		549		614		12%
0		0		11
487		555		551		-1%
129		197		200		2%
358		358		351		-2%
0		0		11
29,858		27,112		24,604		-9%		-27%

The French electricity grid factors increased in 2019 leading to an increase in emissions from this portfolio in spite of energy efficiency gains.

Carbon Data and Energy Management Dataand Targets

and UseResourceWasteData

WaterData

SocioData -economic

Other

90

SUSTAINABILITY REPORT 2019: OUR DATA - CARBON AND ENERGY DATA

Carbon Emissions by EPRA like-for-like Portfolio

1.0 INTRODUCTION	2.0 NET POSITIVE
GRI INDICATORS	TABLE 3.1.3
305-1,305-2,305-3

3.0 OUR DATA

GRI

91

Hammerson

		UNIT		EPRA CODE
EPRA L4L (2018-2019) UK Shopping Centres (Coverage 11/12)
Total CO2e (Location Based)		mtCO2e		GHG-Dir-LfL
Scope 1		mtCO2e		GHG-Dir-LfL
Scope 2		mtCO2e		GHG-Indir-LfL
Scope 3a		mtCO2e		GHG-Indir-LfL
Total CO2e (Market Based)		mtCO2e		GHG-Dir-LfL
Scope 1		mtCO2e		GHG-Dir-LfL
Scope 2		mtCO2e		GHG-Indir-LfL
Scope 3a		mtCO2e		GHG-Indir-LfL
EPRA L4L (2018-2019) UK Retail Parks (Coverage 10/13)
Total CO2e (Location Based)		mtCO2e		GHG-Dir-LfL
Scope 1		mtCO2e		GHG-Dir-LfL
Scope 2		mtCO2e		GHG-Indir-LfL
Scope 3a		mtCO2e		GHG-Indir-LfL
Total CO2e (Market Based)		mtCO2e		GHG-Dir-LfL
Scope 1		mtCO2e		GHG-Dir-LfL
Scope 2		mtCO2e		GHG-Indir-LfL
Scope 3a		mtCO2e		GHG-Indir-LfL
EPRA L4L (2018-2019) France Shopping Centres	(Coverage 7/8)
Total CO2e (Location Based)		mtCO2e		GHG-Dir-LfL
Scope 1		mtCO2e		GHG-Dir-LfL

2018	2019	% CHANGE YOY
14,757		-16%
12,386
3,196	2,990	-6%
11,562	9,395	-19%
2,311	2,236
3,392	3,178	-6%
3,196	2,990	-6%
197	187	-5%
2,311	2,236
447
408	-9%
0	0
447	407	-9%
9	9
616	623	1%
0	0
616	622	1%
9	9
4,429	4,540	3%
1,613	1,216	-25%

- 16%

Year-on-year reduction in carbon emissions from our EPRA like-for- like UK portfolio

Dataeconomic DataWater Dataand Waste Dataand Energy andManagementTargets

Socio-Resource Use Carbon Data

Scope 2		mtCO2e		GHG-Indir-LfL
Scope 3a		mtCO2e		GHG-Indir-LfL
Total CO2e (Market Based)		mtCO2e		GHG-Dir-LfL
Scope 1		mtCO2e		GHG-Dir-LfL
Scope 2		mtCO2e		GHG-Indir-LfL
Scope 3a		mtCO2e		GHG-Indir-LfL
EPRA L4L (2018-2019) Ireland Shopping Centres (Coverage 3/3)
Total CO2e (Location Based)		mtCO2e		GHG-Dir-LfL
Scope 1		mtCO2e		GHG-Dir-LfL
Scope 2		mtCO2e		GHG-Indir-LfL
Scope 3a		mtCO2e		GHG-Indir-LfL
Total CO2e (Market Based)		mtCO2e		GHG-Dir-LfL
Scope 1		mtCO2e		GHG-Dir-LfL
Scope 2		mtCO2e		GHG-Indir-LfL
Scope 3a		mtCO2e		GHG-Indir-LfL
Total Co2e EPRA LFL Portfolio (Location Based)		mtCO2e
Total Co2e EPRA LFL Portfolio - Market Based		mtCO2e

2,816	3,324	18%
406	643
4,199	3,773	-10%
1,613	1,216	-25%
2,587	2,556	-1%
406	643
5,938		-15%
5,065
514	520	1%
5,424	4,545	-16%
187	229
564	528	-6%
514	520	1%
49	8	-84%
187	229
25,571	22,399	-12%
8,772	8,101	-8%

- 12%	Other

Year-on-year reduction in carbon emissions from our Group EPRA like- for-like portfolio excluding the impacts of our clean electricity contracts

1. Scope 3 emissions comprise energy submetered to tenants Totals include Scope 1 and 2 only

SUSTAINABILITY REPORT 2019: OUR DATA - CARBON AND ENERGY DATA

92

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

GRI

93

Hammerson	Direct and Indirect Energy Consumption by Group and Portfolio
			UNIT		EPRA		2015		2016
				CODE
	Hammerson Group
	Total Electricity Consumption for		mWh		Elec-Abs		100,725		102,251
	Landlord Services inc. onsite renewables
	Total landlord obtained electricitya		mWh		Elec-Abs		100,724		102,665
	Renewables generated		mWh		Elec-Abs		0		32
	Renewables exported		mWh		Elec-Abs		1		0
	Total electricity consumption for landlord services		mWh		Elec-Abs		97,412		99,161
	Electricity sub-metered to tenants		mWh		Elec-Abs		3,313		3,089
	Total Natural Gas Consumption		mWh		Fuels-Abs		24,799		22,743
	for Landlord Services
	Total landlord obtained natural gasa		mWh		Fuels-Abs		31,645		29,202
	Natural gas sub-metered to tenants		mWh		Fuels-Abs		6,846		6,196
	Diesel consumption		mWh		Fuels-Abs		64		194
	Fuel oils consumption		mWh		Fuels-Abs		0		0
	District heating and cooling		mWh		DH&C-Abs		7,019		7,750
	Common parts area		m2				342,579		358,802
	Landlord service energy intensity		kWh/m2 CPA		Energy-Int		357		340
	Hammerson UK Shopping Centre Portfolio (Coverage 12/12)
	Total Electricity Consumption for		mWh		Elec-Abs		49,789		47,146
	Landlord Services inc. onsite renewables
	Total landlord obtained electricitya		mWh		Elec-Abs		49,789		47,114
	Renewables generated		mWh		Elec-Abs		0		32
	Renewables exported		mWh		Elec-Abs		0		0
	Total electricity consumption for landlord services		mWh		Elec-Abs		48,843		46,633
	Electricity sub-metered to tenants		mWh		Elec-Abs		947		513
	Total Natural Gas Consumption		mWh		Fuels-Abs		9,937		9,279
	for Landlord Services
	Total landlord obtained natural gasa		mWh		Fuels-Abs		16,783		15,475
	Natural gas sub-metered to tenants		mWh		Fuels-Abs		6,846		6,196
	Diesel consumption		mWh		Fuels-Abs		64		194
	Fuel oils consumption		mWh		Fuels-Abs		0		0
	District heating and coolingb		mWh		DH&C-Abs		540		374
	Common parts area		m2				228,312		273,119
	Landlord service energy intensity		kWh/m2 CPA		Energy-Int		260		206

1. Includes utilities obtained by landlord but consumed by tenants.
2. Less than 1% of gas and electricity data is estimated

		GRI INDICATORS	TABLE
		302-1,302-3,302-4
		3.1.4
	(Building Energy Intensity)
			%	% CHANGE
2017	2018	2019	CHANGE
VS. 2015
			YOY
103,455				-17%
96,160	83,416	-13%
104,222	97,464	88,395	-9%	-12%
150	311	565
0	0	0
87,899	92,799	79,950	-14%	-18%
3,296	3,362	3,465
21,379	19,075	14,566	-24%	-41%
31,980	28,190	24,423	-13%	-23%
9,892	8,047	8,764
130	233	288
0	0	0
6,419	6,408	7,662
366,680	507,965	474,271
298	220	199	-10%	-44%
46,463
43,892	38,564	-12%	-23%
46,314	43,596	39,072	-10%	-22%
150	296	521
0	0	0
45,600	42,955	37,535	-13%	-23%
864	938	1,029
9,433	7,960	7,121	-11%	-28%
17,397	15,601	14,457	-7%	-14%
7,964	7,641	7,336
130	233	261
0	0	0
651	1,014	1,107
273,119	312,777	273,119
204	163	164	0%	-37%

Other DataeconomicSocio-DataWater DataandResourceWasteUse DataandCarbonEnergy andManagementDataTargets

- 44%

Our Positive Places strategy has significantly reduced the energy intensity of our Group portfolio since 2015

Continues on next page >

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94

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

GRI

95

Hammerson	< Continues from previous page
			UNIT		EPRA		2015		2016
				CODE
	Hammerson UK Retail Parks Portfolio (Coverage 14/14)
	Total Electricity Consumption for Landlord		mWh		Elec-Abs		3,961		3,753
	Services inc. onsite renewables
	Total landlord obtained electricitya		mWh		Elec-Abs		3,960		3,753
	Renewables generated		mWh		Elec-Abs		0		0
	Renewables exported		mWh		Elec-Abs		1		0
	Total electricity consumption for landlord services		mWh		Elec-Abs		3,912		3,702
	Electricity sub-metered to tenants		mWh		Elec-Abs		49		50
	Total Natural Gas Consumption		mWh		Fuels-Abs		21		17
	for Landlord Services
	Total landlord obtained natural gasa		mWh		Fuels-Abs		21		17
	Natural gas sub-metered to tenants		mWh		Fuels-Abs		0		0
	Diesel consumption		mWh		Fuels-Abs		0		0
	Fuel oils consumption		mWh		Fuels-Abs		0		0
	District heating and cooling		mWh		DH&C-Abs		0		0
	Car park spaces		Number				22,074		22,583
	Landlord service energy intensity		kWh/m2 CPS		Energy-Int		178		165
	Hammerson France Shopping Centre Portfolio (Coverage 8/8)
	Total Electricity Consumption for Landlord		mWh		Elec-Abs		46,974		45,915
	Services inc. onsite renewables
	Total landlord obtained electricitya		mWh		Elec-Abs		46,974		45,915
	Renewables generated		mWh		Elec-Abs		0		0
	Renewables exported		mWh		Elec-Abs		0		0
	Total electricity consumption for landlord services		mWh		Elec-Abs		44,657		43,388
	Electricity sub-metered to tenants		mWh		Elec-Abs		2,317		2,526
	Total Natural Gas Consumption		mWh		Fuels-Abs		14,841		13,208
	for Landlord Services
	Total landlord obtained natural gasa		mWh		Fuels-Abs		14,841		13,208
	Natural gas sub-metered to tenants		mWh		Fuels-Abs		0		0
	Diesel consumption		mWh		Fuels-Abs		0		0
	Fuel oils consumption		mWh		Fuels-Abs		0		0
	District heating and coolingb		mWh		DH&C-Abs		6,479		7,376
	Common parts area		m2				92,193		10,387
	Landlord service energy intensity		kWh/m2 CPA		Energy-Int		716		616

1. Includes utilities obtained by landlord but consumed by tenants.
2. 39% of district heating and cooling data for the French portfolio is estimated

GRI INDICATORS	TABLE
302-1,302-3,302-4
3.1.4
(Building Energy Intensity)

2017	2018	2019	% CHANGE	% CHANGE
YOY	VS. 2015
2,800
2,289	1,883	-18%	-52%
2,800	2,289	1,883	-18%	-52%
0	0	0
0	0	0
2,800	2,289	1,883	-18%	-52%
0	0	0
18	16	9	-47%	-58%
18	16	9
0	0	0
0	0	0
0	0	0
0	0	0
17,245	22,583	14,240
163	102	133	30%	-25%
41,866
37,447	31,067	-17%	-34%
41,866	37,432	33,396	-11%	-29%
0	15	44
0	0	0
39,500	35,088	28,694	-18%	-36%
2,366	2,358	2,373
11,928	8,368	4,648	-44%	-69%
12,473	8,767	6,076
545	399	1,428
0	0	1
0	0	0
5,768	5,394	6,555
10,387	119,892	120,983
551	362	276	-24%	-61%

Other DataeconomicSocio-DataWater DataandResourceWasteUse DataandCarbonEnergy andManagementDataTargets

Continues on next page >

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96

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

GRI

97

Hammerson	< Continues from previous page
			UNIT		EPRA		2015		2016
				CODE
	Hammerson Ireland Shopping Centre Portfolio (Coverage 3/3)
	Total Electricity Consumption for Landlord		mWh		Elec-Abs		n/a		5,437
	Services inc. onsite renewables
	Total landlord obtained electricitya		mWh		Elec-Abs		n/a		5,437
	Renewables generated		mWh		Elec-Abs		n/a		0
	Renewables exported		mWh		Elec-Abs		n/a		0
	Total Electricity Consumption for Landlord Services		mWh		Elec-Abs		n/a		5,437
	Electricity sub-metered to Tenants		mWh		Elec-Abs		n/a		0
	Total Natural Gas Consumption		mWh		Fuels-Abs		n/a		239
	for Landlord Services
	Total landlord obtained natural gasa		mWh		Fuels-Abs		n/a		239
	Natural gas sub-metered to tenants		mWh		Fuels-Abs		n/a		0
	Diesel consumption		mWh		Fuels-Abs		n/a		0
	Fuel oils consumption		mWh		Fuels-Abs		n/a		0
	District heating and cooling		mWh		DH&C-Abs		n/a		0
	Car park spaces		m2				n/a		52,713
	Landlord service energy intensity		kWh/m2 CPA		Energy-Int		n/a		108
	Hammerson Strategic Portfoliob (Coverage 15/15)
	Total Electricity Consumption for Landlord		mWh		Elec-Abs		n/a		n/a
	Services inc. onsite renewables
	Total landlord obtained electricitya		mWh		Elec-Abs		n/a		447
	Renewables generated		mWh		Elec-Abs		n/a		n/a
	Renewables exported		mWh		Elec-Abs		n/a		n/a
	Total electricity consumption for landlord services		mWh		Elec-Abs		n/a		n/a
	Electricity sub-metered to tenants		mWh		Elec-Abs		n/a		n/a
	Total Natural Gas Consumption		mWh		Fuels-Abs		n/a		n/a
	for Landlord Services
	Total landlord obtained natural gasa		mWh		Fuels-Abs		n/a		264
	Natural gas sub-metered to tenants		mWh		Fuels-Abs		n/a		n/a
	Diesel consumption		mWh		Fuels-Abs		n/a		n/a
	Fuel oils consumption		mWh		Fuels-Abs		n/a		n/a
	District heating and cooling		mWh		DH&C-Abs		n/a		n/a

				GRI INDICATORS		TABLE
			302-1,302-3,302-4
				3.1.4
		(Building Energy Intensity)
						%
							% CHANGE
2017		2018		2019		CHANGE
				VS. 2015
						YOY
12,326
	12,533		11,965		-5%
12,326		12,533		11,965		-5%
0		0		0
0		0		0
12,260		12,467		11,902		-5%
66		65		63
1,383		2,730		2,788		2%
1,392		2,737		2,793
9		7		5
0		0		26
0		0		0
0		0		0
65,929		52,713		65,929
207		288		223		-23%
n/a		n/a		n/a
917		1614		2078		29%
n/a		n/a		n/a
n/a		n/a		n/a
n/a		n/a		n/a
n/a		n/a		n/a
n/a		n/a		n/a
700		1069		1089		2%
n/a		n/a		n/a
n/a		n/a		n/a
n/a		n/a		n/a
n/a		n/a		n/a

Other DataeconomicSocio-DataWater DataandResourceWasteUse DataandCarbonEnergy andManagementDataTargets

1. Includes utilities obtained by landlord but consumed by tenants.
2. Hammerson Strategic Portfolio includes assets held for development purposes and voids within these only.
   We do not provide sufficient utility services to this portfolio to generate meaningful intensity metrics.

SUSTAINABILITY REPORT 2019: OUR DATA - CARBON AND ENERGY DATA

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

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98

Hammerson

Direct and Indirect Energy Consumption by EPRA like-for-like portfolio

	UNIT		EPRA CODE
EPRA L4L (2018-2019) UK Shopping Centres (Coverage 11/12)
	mWh		Elec-lfl
Total Electricity Consumption for Landlord Services
Total landlord obtained electricity inc. onsite renewables	mWh		Elec-lfl
Electricity sub-metered to tenants	mWh		Elec-lfl
Total Natural Gas Consumption for Landlord Services	mWh		Fuels-lfl
Total Landlord obtained natural gasa	mWh		Fuels-lfl
Natural gas sub-metered to tenants	mWh		Fuels-lfl
Diesel consumption	mWh		Fuels-lfl
Thermal energy	mWh		DH&C-lfl
EPRA L4L (2018-2019) UK Retail Parks (Coverage 10/14)
	mWh		Elec-lfl
Total Electricity Consumption for Landlord Services
Total landlord obtained electricity inc. onsite renewables	mWh		Elec-lfl
Electricity sub-metered to tenants	mWh		Elec-lfl
Total Natural Gas Consumption for Landlord Services	mWh		Fuels-lfl
Total landlord obtained natural gasa	mWh		Fuels-lfl
Natural gas sub-metered to tenants	mWh		Fuels-lfl
Diesel consumption	mWh		Fuels-lfl
Thermal energy	mWh		DH&C-lfl
EPRA L4L (2018-2019) France Shopping Centres (Coverage 7/8)
	mWh		Elec-lfl
Total Electricity Consumption for Landlord Services
Total landlord obtained electricity inc. onsite renewables	mWh		Elec-lfl
Electricity sub-metered to tenants	mWh		Elec-lfl
Total Natural Gas Consumption for Landlord Services	mWh		Fuels-lfl
Total landlord obtained natural gasa	mWh		Fuels-lfl
Natural gas sub-metered to tenants	mWh		Fuels-lfl
Diesel consumption	mWh		Fuels-lfl
Thermal energy	mWh		DH&C-lfl
EPRA L4L (2018-2019) Ireland Shopping Centres (Coverage 3/3)
Total Electricity Consumption for Landlord Services	mWh		Elec-lfl
Total landlord obtained electricity inc. onsite renewables	mWh		Elec-lfl
Electricity sub-metered to tenants	mWh		Elec-lfl
Total Natural Gas Consumption for Landlord Services	mWh		Fuels-lfl
Total landlord obtained natural gasa	mWh		Fuels-lfl
Natural gas sub-metered to tenants	mWh		Fuels-lfl
Diesel consumption	mWh		Fuels-lfl
Thermal energy	mWh		DH&C-lfl
Total Landlord Energy Demand - EPRA LFL portfolios

GRI INDICATOR	TABLE 3.1.5
302-1,302-4
2018		% CHANGE YOY
2019
41,849	35,687	-15%
42,686	36,649	-14%
838	962
7,960	7,121	-11%
15,601	14,457	-7%
7,641	7,336

236 261

1,014 1,107

1,577	1,594	1%
1,577	1,594	1%
0	0
1	2	217%
1	2	217%
0	0

1. 0

1. 0

34,273	30,938	-10%
36,631	33,311	-9%
2,358	2,373
8,368	5,186	-38%
8,767	6,615	-25%
399	1,428

01

5,236 5,992

13,003	11,902	-8%
13,069	11,965	-8%
65	63
2,702	2,788	3%
2,709	2,793	3%
7	5
26	26
0	0
116,245	102,604	-12%

-12%

Our continued focus on energy demand is delivering signficant year- on-year energy savings, reducing our environmental impacts and delivering cost savings to the business and

our tenants

99

Carbon Data and Energy Management Dataand Targets

and UseResourceWasteData

WaterData

SocioData -economic

Other

1. Includes utilities obtained by landlord but consumed by tenant
2. Thermal energy in the form of district heating and cooling is considered landlord consumption and not separately metered for tenant consumption

100

Hammerson

SUSTAINABILITY REPORT 2019: OUR DATA - CARBON AND ENERGY DATA
Refrigerant data							GRI INDICATOR		TABLE 3.1.6
								305-6
F-GAS	UNIT		2015		2016	2017		2018		2019		EMISSION FACTOR
R22	kgCO2e		0		0	0		0		0	DEFRA 2019
R134A	kgCO2e		0		0	862,290		0		0	DEFRA 2019
R143A	kgCO2e		0		0	0		0		0	DEFRA 2019
R404A	kgCO2e		0		0	0		0		0	DEFRA 2019
R407C	kgCO2e		23,061		17,385	275,325		0		238,780	DEFRA 2019
R410A	kgCO2e		0		0	0		53,348		29,754	DEFRA 2019
Total	kgCO2e		23,061		17,385	1,137,615		53,348		268,534
emissions
Other relevant indirect
					GRI INDICATOR	TABLE
green-house gas emissions							305-3	3.1.7
					UNIT		2015		2016		2017		2018	2019
Business travel by air, rail, personal	mt CO2e		412	1,016	1,509		716	654
mileage and taxia
Visitor journeys by car to our	mt CO2e		252,739	277,841	283,828		272,489	273,480
shopping centres (UK only)b

aWe collected business travel details for our Mandatory GHG Emissions reporting, this is representative of CO2e emissions from flights, car, train and bus journeys. Approximately 8% of this data is estimated.

bEmissions associated with visitor travel are estimated based on annual footfall, our 2011 UK survey of visitor travel and the 2008 BCSC Report "Contribution of the Retail Sector to the Economy". We assume 2.4 people per vehicle, 11.91 mile round trip and use the DEFRA emissions factor for an average car.

Reductions in energy	GRI INDICATOR
requirements of products	TABLE 3.1.8
302-5
and services
DATE	INITIATIVE	LOCATION	ANNUAL SAVINGS
(kWh)
2019	Carbon monoxide sensors	Bullring	1,917,412
2019	LEDs	Highcross	not separately metered
2019	LEDs	Silverburn	167,000
2019	LEDs	Union Square	not separately metered
2019	LEDs	Westquay	not separately metered
2019	Controls	Westquay	1,000,000
2019	LEDs	Espace Saint Quentin	not separately metered
2019	LEDs	Italie Deux	not separately metered
2019	LEDs	Nicetoile	not separately metered
2019	LEDs	O'Parinor	not separately metered
2019	LEDs	Terrasses du Port	not separately metered

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

GRI

101

Other DataeconomicSocio-DataWater DataandResourceWasteUse DataandCarbonEnergy andManagementDataTargets

SUSTAINABILITY REPORT 2019: OUR DATA - RESOURCE USE AND WASTE DATA

102 3.2 Resource Use

Hammerson	and Waste
Our Net Positive Resource Use Data

1.0 INTRODUCTION		2.0 NET POSITIVE			3.0 OUR DATA
Tables 3.2.1 - 3.2.2 set out our GRI and EPRA compliant waste data
Group and Portfolio waste data
	GRI INDICATOR	TABLE 3.2.2
(tonnes)							306-2
	EPRA	2015	%	2016	%	2017	%	2018	%	2019		%
	CODE
Group
Total waste quantity including	Waste-abs	34,420	100%	35,676	100%	39,363	100%	34,811	100%	35,592		100%
shopfit waste
Total tonnes diverted from landfill	Waste-abs	30,371	88%	33,673	94%	38,442	98%	34,743	100%	35,421		99.5%
Total recycled including shopfit waste	Waste-abs	23,837	69%	24,782	69%	28,664	73%	26,400	76%	27,637		78%
Total reused waste	Waste-abs	5		8		93		0		0
Food recycling	Waste-abs	4,208		4,725		5,780		5,659		5,547

GRI

103

Carbon Data Energy Management and Targets

The use and disposal of materials has a significant but often hidden environmental impact. As an asset manager and developer of retail destinations, we manage a significant quantity of materials. This is reflected in our Net Positive resource

use targets, and through a consistent focus on improving recycling rates and raising expectations for recycled content materials in our development programme, we have significantly reduced our resource use footprint. Table 3.2.1 below sets

out our management of different waste streams and the balancing projects identified to mitigate direct waste from our managed assets. Waste incineration for fuel is included as part of our Net Positive Resource Use figures.

Food disposal	Waste-abs	34		0		46		1,486		63
Incinerated waste (used as fuel)	Waste-abs	1,978		1,300		1,461		1,671		2,691
Incinerated waste (not used as fuel)	Waste-abs	4		0		0		0		0
Total waste sent to an offsite Materials	Waste-abs	9,157		12,055		11,983		13,296		13,252
Recovery Facility [MRF]
Total landfilled waste	Waste-abs	3,953	11%	803	2%	677	2%	146	0%	185	1%
Total hazardous waste	Waste-abs	39		390		261		135		1,523
Other waste	Waste-abs	145		0		31		3		0
Hammerson Shopping Centres UK (Coverage 12/12)
Total waste quantity including	Waste-abs	25,253	100%	24,067	100%	24,825	100%	21,954	100%	21,875	100%
shopfit waste

Resource Use and Waste and DataData

Net Positive resource use (tonnes)			TABLE 3.2.1
	2015	2016	2017	2018	2019	2020
Baseline (net Landlord resource use 2015)	8,539	8,539	8,539	8,539	8,539	8,539
Landlord operational waste	22,050	22,734	24,380	18,934	16,093	14,278
Recycled waste	13,511	14,970	16,605	14,201	12,070	10,709
Balancing projects					2	50
Recycled materials - dev projects					607	700
Water fountains - plastic bottles savings
Butterfly bank impacts
Waste to energy					3,100	3,100
Net Resource use	8,539	7,764	7,776	4,734	3,415	2,820

Net Positive resource use pathway

10,000							The chart on the left sets out our Net
						Positive resource use trajectory to
8,000							the end of 2020. This identifies the
6,000						2,820	resource use we currently expect
				3,415	to remain and for which we will
	8,539	7,764	7,776	4,734
4,000	be identifying further balancing
2,000							projects through across the year.
m3(a)	2015	2016	2017	2018	2019	2020

				Baseline (net Landlord resource use 2015)		Net resource use
						Our recycling rates continue to be higher in the UK and Ireland
				F O R M O R E		than in France. The waste industry in France lags the UK in terms
	Read the full story:			of the facilities available. However, by working closely with
		contractors and on-site sorting at Terrasses du Port and O'Parinor
	see page 54 - 59
			we have made significant improvements sorting.

Total tonnes diverted from landfill	Waste-abs	25,152	100%	23,956	100%	24,718	100%	21,921	100%	21,771	100%
Total recycled including shopfit waste	Waste-abs	19,290	76%	17,927	74%	19,328	78%	18,090	82%	18,318	84%
Total reused waste	Waste-abs	0		0		0		0		0
Food recycling	Waste-abs	3,644		3,526		3,545		3,259		3,356
Food disposal	Waste-abs	34		0		46		46		33
Incinerated waste (used as fuel)	Waste-abs	1,395		773		232		5		48
Incinerated waste (not used as fuel)	Waste-abs	4		0		0		0		0
Total waste sent to an offsite Materials	Waste-abs	7,762		8,985		9,728		11,116		11,008
Recovery Facility [MRF]
Total landfilled waste	Waste-abs	5	0%	11	0%	0	0%	0	0%	62	0%
Total hazardous waste	Waste-abs	38		388		150		106		175
Other waste	Waste-abs	145		0		31		3		0
Hammerson Retail Parks UK (Coverage 14/14)
Total waste quantity including	Waste-abs	1,135	100%	1,139	100%	507	100%	446	100%	497	100%
shopfit waste
Total tonnes diverted from landfill	Waste-abs	1,130	100%	1,135	100%	503	99%	443	99%	497	100%
Total recycled including shopfit waste	Waste-abs	811	71%	862	76%	296	58%	364	82%	432	87%
Total reused waste	Waste-abs	5		8		4		0		0
Food recycling	Waste-abs	10		0		0		0
Food disposal	Waste-abs	0		0		0		0		0
Incinerated waste (used as fuel)	Waste-abs	250		224		154		52		0
Incinerated waste (not used as fuel)	Waste-abs	0		0		n/a		n/a		n/a
Total waste sent to an offsite Materials	Waste-abs	659		579		228		272		347
Recovery Facility [MRF]
Total landfilled waste	Waste-abs	5	0%	4	0%	5	1%	3	1%	0	0%
Total hazardous waste	Waste-abs	0		0		0		0		0
Other waste	Waste-abs	0		0		0		0		0
Hammerson Shopping Centres France (Coverage 8/8)
Total waste quantity including	Waste-abs	7,961	100%	8,689	100%	8,824	100%	7,376	100%	6,877	100%
shopfit waste
Total tonnes diverted from landfill	Waste-abs	4,018	50%	6,802	78%	8,036	91%	7,376	100%	6,876	100%
Total recycled including shopfit waste	Waste-abs	3,702	47%	4,874	56%	5,181	59%	4,495	61%	3,994	58%
Total reused waste	Waste-abs	0		0		0		0		0
Food recycling	Waste-abs	555		868		1,551		1,672		1,475
Food disposal	Waste-abs	0		0		0		1,440		0
Incinerated waste (used as fuel)	Waste-abs	297		197		911		1,026		2,208
Incinerated waste (not used as fuel)	Waste-abs	0		0		0		0		0
Total waste sent to an offsite Materials	Waste-abs	736		1,936		462		n/a		10
Recovery Facility [MRF]
Total landfilled waste	Waste-abs	3,943	50%	786	9%	651	7%	119		57	1%
Total hazardous waste	Waste-abs	1		2		3		12	0%	14
Other waste	Waste-abs	0		0		0		0		0
								Continues on next page >

Other DataeconomicSocio-DataWater

	SUSTAINABILITY REPORT 2019: OUR DATA - RESOURCE USE AND WASTE DATA
104
						GRI INDICATOR	TABLE 3.2.2
								306-2
	< Continues from previous page
Hammerson		EPRA	2015	%	2016	%	2017	%	2018	%	2019	%
	CODE
	Hammerson Shopping Centres	Ireland (Coverage 3/3)
	Total waste quantity including	Waste-abs	0		1,586	100%	4,957	100%	4,770	100%	6,078	100%
	shopfit waste
	Total tonnes diverted from landfill	Waste-abs	0		1,586	100%	4,946	100%	4,752	100%	6,039	99%
	Total recycled including shopfit waste	Waste-abs	0		1,031	65%	3,774	76%	3,367	71%	4,808	79%
	Total reused waste	Waste-abs	0		0		89		0		0
	Food recycling	Waste-abs	0		331		685		728		717
	Food disposal	Waste-abs	0		n/a		0		0		30
	Incinerated waste (used as fuel)	Waste-abs	0		0		164		589		435
	Incinerated waste (not used as fuel)	Waste-abs	0		0		0		0		0
	Total waste sent to an offsite	Waste-abs	0		555		1369		1703		1688
	Materials Recovery Facility [MRF]
	Total landfilled waste	Waste-abs	0		0	0%	12	0%	12	0%	39	1%
	Total hazardous waste	Waste-abs	0		0		107		17		1,333
	Other waste	Waste-abs	0		0		0		0		0
	Hammerson Strategic Portfolioa	(Coverage	15/15)
	Total waste quantity including	Waste-abs	71	100%	196	100%	250	100%	266	100%	265	100%
	shopfit waste
	Total tonnes diverted from landfill	Waste-abs	70	99%	194	99%	240	96%	251	95%	238	90%
	Total recycled including shopfit waste	Waste-abs	33	47%	89	46%	85	34%	84	32%	86	33%
	Total reused waste	Waste-abs	0		0		0		0		0
	Food recycling	Waste-abs	0		0		0		0		0
	Food disposal	Waste-abs	0		0		0		0		0
	Incinerated waste (used as fuel)	Waste-abs	37		105		0		0		0
	Incinerated waste (not used as fuel)	Waste-abs	0		0		0		0		0
	Total waste sent to an offsite	Waste-abs	0		0		196		206		199
	Materials Recovery Facility [MRF]
	Total landfilled waste	Waste-abs	1	1%	2	1%	10	4%	13	5%	27	10%
	Total hazardous waste	Waste-abs	0		0		0		0		0
	Other waste	Waste-abs	0		0		0		0		0

a) Hammerson Strategic Portfolio includes assets held for development purposes and voids within these only

Hazardous waste by disposal route	GRI INDICATOR	TABLE 3.2.1
	306-2
	UNIT	EPRA	GROUP	IRELAND	FRANCE	UNITED
	CODE	KINGDOM
Hazardous Incinerated waste	tonnes	waste-abs	46	9	0	37
(not used as fuel)
Hazardous Incinerated waste	tonnes	waste-abs	64	16	0	48
(use as fuel)
Hazardous Landfilled waste	tonnes	waste-abs	102	40	0	62
Hazardous Recycled waste	tonnes	waste-abs	1312	1269	14	29
Hazardous Reused waste	tonnes	waste-abs	0	0	0	0
Total Hazardous Waste	tonnes	waste-abs	1524	1335	14	175

1.0 INTRODUCTION2.0 NET POSITIVE3.0 OUR DATA

EPRA like-for-like			GRI
Waste Data (tonnes)	INDICATOR	TABLE 3.2.3
	306-2
	EPRA CODE		2018	%	2019	%
EPRA LfL (2017-2018) UK Shopping Centres (Coverage 11/12)
Total waste quantity including shopfit waste	Waste-lfl		21,353	100%	21,437	100%
Total tonnes diverted from landfill	Waste-lfl		21,321	100%	21,333	100%
Total recycled including shopfit waste	Waste-lfl		17,942	84%	18,245	85%
Total reused waste	Waste-lfl		0		0
Food recycling	Waste-lfl		3,259		3,355
Food disposal	Waste-lfl		46		33
Incinerated waste (used as fuel)	Waste-lfl		1		48
Incinerated waste (not used as fuel)	Waste-lfl		0		0
Total waste sent to an offsite Materials Recovery Facility [MRF]	Waste-lfl		10,669		10,643
Total landfilled waste	Waste-lfl		33	0%	104	0%
Total hazardous waste	Waste-lfl		105		175
Other waste	Waste-lfl		2		0
EPRA LfL (2017-2018) UK Retail Parks (Coverage 10/14)
Total waste quantity including shopfit waste	Waste-lfl		403	100%	483	100%
Total tonnes diverted from landfill	Waste-lfl		400	99%	483	100%
Total recycled including shopfit waste	Waste-lfl		334	83%	418	87%
Total reused waste	Waste-lfl		216		0
Food recycling	Waste-lfl		0		0
Food disposal	Waste-lfl		0		0
Incinerated waste (used as fuel)	Waste-lfl		47		0
Incinerated waste (not used as fuel)	Waste-lfl		0		0
Total waste sent to an offsite Materials Recovery Facility [MRF]	Waste-lfl		234		333
Total landfilled waste	Waste-lfl		3	1%	0	0%
Total hazardous Waste	Waste-lfl		0		0
Other waste	Waste-lfl		0		0
EPRA LfL (2017-2018) France Shopping Centres (Coverage 7/8)
Total waste quantity including shopfit waste	Waste-lfl		7141	100%	6691	100%
Total tonnes diverted from landfill	Waste-lfl		7141	100%	6691	100%
Total recycled including shopfit waste	Waste-lfl		4401	62%	3966	59%
Total reused waste	Waste-lfl		0		0
Food recycling	Waste-lfl		1653		1469
Food disposal	Waste-lfl		1		0
Incinerated waste (used as fuel)	Waste-lfl		1026		2051
Incinerated waste (not used as fuel)	Waste-lfl		0		0
Total waste sent to an offsite Materials Recovery Facility [MRF]	Waste-lfl		0		10
Total landfilled waste	Waste-lfl		0	0%	0	0%
Total hazardous waste	Waste-lfl		9		14
Other waste	Waste-lfl		0		0
EPRA LfL (2017-2018) Ireland Shopping Centres (Coverage 3/3)
Total waste quantity including shopfit waste	Waste-lfl		4770	100%	6078	100%
Total tonnes diverted from landfill	Waste-lfl		4752	100%	6039	99%
Total recycled including shopfit waste	Waste-lfl		3367	71%	4808	79%
Total reused waste	Waste-lfl		0		25
Food recycling	Waste-lfl		728		717
Food disposal	Waste-lfl		0		30
Incinerated waste (used as fuel)	Waste-lfl		589		435
Incinerated waste (not used as fuel)	Waste-lfl		0		0
Total waste sent to an offsite Materials Recovery Facility [MRF]	Waste-lfl		1703		1688
Total landfilled waste	Waste-lfl		18	0%	40%	1%
Total hazardous waste	Waste-lfl		0		1333
Other waste	Waste-lfl		0		0

GRI

105

Resource Use Carbon Data and Waste and Energy Management DataDataand Targets

Other DataeconomicSocio-DataWater

SUSTAINABILITY REPORT 2019: OUR DATA - WATER DATA

106 3.3 Water

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

GRI

107

Hammerson

Our Net Positive Water Data

Management Targets

Becoming Net Positive for mains fresh water is potentially the most challenging of our targets. However, water remains a precious natural resource and one of the most threatened.

We are very pleased therefore, to be able to report a significant reduction in our Net Positive water footprint in 2019. Table 3.3.1 below sets out the savings we have achieved through efficiencies in water demand for

landlord services and what has been achieved through our balancing projects within and beyond our value chain. Hammerson does not operate in any regions that suffer from significant water stress.

Resource Use Carbon Data and Waste and Energy DataDataand

Net Positive water footprint				TABLE 3.3.1
	UNIT	2015	2016	2017	2018	2019	2020
2015 baseline	m3	335,593	335,593	335,593	335,593	335,593	335,593
LL Operational consumption	m3	335,593	316,412	294,113	262,279	253,317	225,000
Rainwater harvesting	m3		1,836	5,662	2,482	6,835	8,000
Tenant savings	m3					7,529	37,000
Recycle to refresh campaign	m3					933
Whitely School leak fixing	m3					1,133
Balancing projects total	m3		1,836	5,662	2,482	16,430	45,000
Net water demand	m3	335,593	314,576	288,451	281,695	236,887	180,000

Net Positive water pathway

Other DataeconomicSocio-DataWater

350,000
300,000
250,000
200,000
150,000	335,593	314,576	288,451	259,797	237,000	180,000
100,000
50,000
m3	2015	2016	2017	2018	2019	2020

This sets out our Net Positive water trajectory to the end of 2020. This identifies the water demand we currently expect to remain within the portfolio and for which we will be identifying further balancing projects across the year.

We have increased rainwater harvesting at Cabot Circus, Bullring and Westquay, reducing potable water use by approximately 6,800m3.

F O R M O R E

Read the full story: see page 61 - 67

		SUSTAINABILITY REPORT 2019: OUR DATA - WATER DATA				1.0 INTRODUCTION		2.0 NET POSITIVE		3.0 OUR DATA
108 Tables 3.3.2 - 3.3.3 set out our GRI and EPRA compliant Water Data for 2019
		Group and Portfolio water demand							GRI INDICATOR 303-3	TABLE
								3.3.2
Hammerson
	Water Consumption for Landlord Services	m3	Water-Abs	533,756	437,870	484,043	479,233	450,608		-6%	-16%
			UNIT	EPRA	2015	2016	2017	2018	2019	% CHANGE	% CHANGE
				CODE							YOY	VS. 2015
		Hammerson Group
		Total landlord obtained watera	m3	Water-Abs	1,101,881	1,177,040	1,153,283	1,110,277	1,085,130		-2%	-2%
		Water sub-metered to tenants	m3	Water-Abs	567,289	733,508	657,675	626,729	638,415
	Total water withdrawal by source
		Total mains freshwater withdrawal	m3		1,101,045	1,171,378	1,141,718	1,105,962	1,078,295		-3%	-2%
		Rainwater harvested onsite	m3		836	5,662	11,565	4,315	6,835
	Building Water Intensity (landlord services)b	litres/visitor	Water-Int	2	2	2	2	1.5		-6%	-29%
		Hammerson UK Shopping Centre (Coverage 12/12)
		Water Consumption for Landlord Services	m3	Water-Abs	384,516	166,288	241,341	226,136	190,367		-16%	-50%
		Total landlord obtained water	m3	Water-Abs	713,014	674,355	653,097	658,859	600,747		-9%	-16%
		Water sub-metered to tenants	m3	Water-Abs	328,498	513,728	421,642	435,966	417,015
	Total water withdrawal by source
		Total mains freshwater withdrawal	m3		712,178	668,693	643,211	655,616	594,113		-9%	-17%
		Rainwater harvested onsite	m3		836	5,662	9,886	3,243	6,634
	Building Water Intensity (landlord services)b	litres/visitor	Water-Int	2.4	1.0	1.3	1.2	1.0		-16%	-58%
		Hammerson UK Retail Parksc (Coverage 14/14)
		Water Consumption for Landlord Services	m3	Water-Abs	4,730	2,685	0	0	0
		Total landlord obtained watera	m3	Water-Abs	5,138	2,836	0	0	0
		Water sub-metered to tenants	m3	Water-Abs	408	151	0	0	0
	Total water withdrawal by source
		Total mains freshwater withdrawal	m3		5,138	2,836	0	0	0
		Rainwater harvested onsite	m3		0	0	0	0	0
	Building Water Intensity (landlord services)b	litres/visitor		n/a	n/a	n/a	n/a	n/a
	Hammerson France Shopping Centre (Coverage 8/8)
	Water Consumption for Landlord Services	m3	Water-Abs	144,510	162,704	94,558	88,475	111,675		26%	-23%
		Total landlord obtained watera	m3	Water-Abs	382,893	382,750	330,592	279,238	260,189		-7%	-32%
		Water sub-metered to tenants	m3	Water-Abs	238,383	220,046	236,034	190,763	148,514
		Total water withdrawal by source
		Total mains freshwater withdrawal	m3		382,893	382,750	330,592	279,238	260,189		-7%	-32%
		Rainwater harvested onsite	m3		0	0	0	0	0
	Building Water Intensity (landlord services)b	litres/visitor	Water-Int	1.6	1.7	1.0	1.2	1.7		40%	4%
		Hammerson Ireland Shopping Centre (Coverage 3/3)
		Water Consumption for Landlord Services	m3	Water-Abs	n/a	109,654	148,144	164,622	137,838		-16%
		Total landlord obtained watera	m3	Water-Abs	n/a	109,654	146,465	163,550	210,523		29%
		Water sub-metered to tenants	m3	Water-Abs	n/a	0	0	0	72,886
	Total water withdrawal by source
		Total mains freshwater withdrawal	m3			109,654	144,786	162,478	210,322		29%
		Rainwater harvested onsite	m3		n/a	0	1,679	1,072	201
	Building Water Intensityb	litres/visitor	Water-Int	n/a	6.1	4.5	3.8	3.1		-18%
	Hammerson Strategic Portfolio (Coverage 15/15)
	Water Consumption for Landlord Services	m3	Water-Abs	n/a	n/a	n/a	n/a	10,728
		Total landlord obtained watera	m3	Water-Abs	n/a	n/a	n/a	n/a	10,728
		Water sub-metered to tenants	m3	Water-Abs	n/a	n/a	n/a	n/a	0
	Total water withdrawal by source
		Total mains freshwater withdrawal	m3		n/a	n/a	n/a	n/a	10,728
		Rainwater harvested onsite	m3		n/a	n/a	n/a	n/a	0
	Building Water Intensityd	litres/visitor	Water-Int	n/a	n/a	n/a	n/a	n/a

1. Total landlord obtained water includes any metered supplies to tenants and harvested rainwater.
2. Water consumption at centres is largely from toilet facilities so is directly related to visitor footfall.
3. Manor Walks was the only retail park with material water consumption and it was sold in Q2 2016.
4. Hammerson Strategic Portfolio includes assets held for development purposes.

We provide utility services to void units only on these sites

Hammerson does not operate in any areas with water stress.

GRI

109

Other DataeconomicSocio-DataWater DataandResourceWasteUse DataandCarbonEnergy andManagementDataTargets

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110

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

GRI

111

Hammerson

Water Demand - EPRA like-for-like		GRI INDICATORS	TABLE
Portfolio					303-3	3.3.3
		EPRA				%
	UNIT		2018	2019	CHANGE
	CODE
					YOY
EPRA L4L (2017-2018) UK Shopping Centres (Coverage 11/12)
Water Consumption	m3	Water-LfL		215,028	188,962	-12%
for Landlord Services
Total landlord obtained water	m3	Water-LfL		647,751	599,342	-7%
Water sub-metered to tenants	m3	Water-LfL		435,966	417,015
Total water withdrawal by source
Total mains freshwater withdrawal	m3	Water-LfL		644,508	592,708	-8%
Rainwater harvested water	m3	Water-LfL		3,243	6,634
EPRA L4L (2017-2018) France Shopping Centres (Coverage 7/8)
Water Consumption for Landlord	m3	Water-LfL		86,103	110,418	28%
Services
Total landlord obtained water	m3	Water-LfL		269,578	254,225	-6%
Water sub-metered to tenants	m3	Water-LfL		183,475	143,807
Total water withdrawal by source
Total mains freshwater withdrawal	m3	Water-LfL		269,578	254,225	-6%
Rainwater harvested water	m3	Water-LfL		0	0
EPRA L4L (2017-2018) Ireland Shopping Centres (Coverage 3/3)
Water Consumption for Landlord	m3	Water-LfL		165,357	137,838	-17%
Services
Total landlord obtained water	m3	Water-LfL		164,285	210,523	28%
Water sub-metered to tenants	m3	Water-LfL		0	72,886
Total water withdrawal by source
Total mains freshwater withdrawal	m3	Water-LfL		163,213	210,322	29%
Rainwater harvested water	m3	Water-LfL		1,072	201
Total LFL Landlord Water	m3	Water-LfL		466,489	437,218	-6%
Consumption

1. Total landlord obtained water includes any metered supples to tenants and harvested rainwater. 12% of water consumption for landlord services is estimated.

Other DataeconomicSocio-DataWater DataandResourceWasteUse DataandCarbonEnergy andManagementDataTargets

SUSTAINABILITY REPORT 2019: OUR DATA - SOCIO-ECONOMIC DATA

112 3.4 Socio-Economic

Hammerson	Impact
Asset Level Project Data
	Our funding supports a wide	Below we outline some of
	range of projects at asset level.	the asset level community
	Our asset level community plans	projects delivered in 2019.
	enable us to identify and deliver
	against locally specific needs.

2019 Key Corporate and Asset Community projects		TABLE
	3.4.1
ASSET	PARTNER	PROJECT THEME	INPUT/OUTCOME
Corporate	Urban Plan school	Young People	58 students engaged
regeneration workshops
Corporate	Skills Builder educational	Employment & Skills	175 young people engaged
work place visits
Corporate	RetailTRUST & Glasgow Caledonian	Employment & Skills/Enterprise	£10,000 business seed funding allocated
University business start-up support	to fashion start-up businesses
Corporate	Inspire Educational Business Partnership	Employment & Skills	Work Week, work-related learning
programme engaging 3,100 young people
Brent Cross	Barnet & Southgate College	Employment & Skills	35 students engaged
Fashion Parade
Brent Cross	Young Enterprise Barnet	Enterprise	70 young people engaged
Brent Cross	Diabetes Awareness Day	Health & Wellbeing	200 people engaged
Bullring & Grand Central	Opportunity Fair	Employment & Skills	9 disadvantaged/vulnerable
people engaged
Bullring & Grand Central	Urban Plan workshop	Young People	30 students engaged

1.0 INTRODUCTION	2.0 NET POSITIVE	3.0 OUR DATA
< Continues from previous page
Highcross	Community Week		Health & Wellbeing/	150 employee hours donated
	Employment & Skills	through a range of activities
Highcross	National Citizen Service		Young People/Enterprise	200 young people engaged
Business Challenge
Highcross	Careers Networking Day		Young People	40 young people engaged
Les Terrasses	Initiative France		Employment & Skills	30 local businesses supported
du Port
Les 3 Fontaines	Chamber of Trades & Crafts		Enterprise	30 local artisans supported
Nicetoile	Pink October		Health & Wellbeing	800 race participants increasing
	breast cancer screening awareness
O'Parinor	Bobigny Crafts Campus		Employment & Skills	20 young people engaged
Silverburn	Work experience		Employment & Skills	4 work experience placements hosted
Silverburn	Recruitment Fairs		Employment & Skills	30 retailers engaged, 400 people
	secured employment
Silverburn	BraveHeart Challenge		Young People	192 students engaged
The Oracle	Launchpad Reading Big Sleep Out		Health & Wellbeing	£1,910.00 raised through
	employee volunteering
The Oracle	Eurospeak Language School		Employment & Skills	24 international students engaged
The Oracle	Wheels of Fortune Disability Awareness		Health & Wellbeing	£1,000.00 fundraised
Union Square	Aberdeen Grammar School		Enterprise	13 students engaged
enterprise challenge
Union Square	Aberdeen Foyer mock interviews		Employment & Skills	11 people engaged
Union Square	CPR training sessions		Health & Wellbeing	210 people trained
Victoria Leeds	The Teenage Market		Enterprise	27 young people engaged
Victoria Leeds	Ahead Partnership Sustainable		Enterprise	63 students engaged
Christmas schools project
Victoria Leeds	Dementia Friendly Cafes		Health & Wellbeing	11 people supported, 8 students engaged
Westquay	Westquay Works pre-		Employment & Skills	104 people trained
employment training
Westquay	CPR training sessions		Health & Wellbeing	80 people trained

113

Dataeconomic DataWater Dataand Waste Dataand Energy andManagementTargets

Socio-Resource Use Carbon Data

Other

Bullring & Grand Central	Solihull College & University	Employment & Skills	7 people trained
pre-employment training
Cabot Circus	Key4Life	Employment & Skills	3 work experience placements
and employability workshops
Cabot Circus	Children's Hospice South West	Health & Wellbeing	£1,735.00 raised through
employee fundraising
Cabot Circus	Key 4Life	Employment & Skills	3 young people mentored
Centrale	Department for Work &	Employment & Skills	150 people engaged, 40
Pensions Recruitment Fairs	secured employment
Centrale	Young Enterprise	Young People	100 students engaged
Centrale	Legacy Youth Zone careers advice	Young People	50 students engaged
Dundrum Town Centre	Mobile health screening	Health & Wellbeing	35 people engaged
Dundrum Town Centre	CuchulainnHeart Challenge	Young People	50 students engaged
Dundrum Town Centre	Southside Partnership	Employment & Skills	400 people engaged
Espace Saint Quentin	SKOLA France	Employment & Skills	20 people trained
			Continues on next page >

Community engagement % by portfolio	TABLE
3.4.2
Assets delivering Community Engagement projects by portfolio (EPRA Comty-Eng)
UK Shopping Centres	100%
UK Retail Parks	8%
France Shopping Centres	100%
Ireland Shopping Centres UK & Ireland	100%

SUSTAINABILITY REPORT 2019: OUR DATA - SOCIO-ECONOMIC DATA
114 Community Investment
Our position as a key community	Below we set out the total	This is calculated using industry

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

GRI

115

Hammerson	asset in many towns across the	financial value of community	standards established by the
UK, Ireland and France presents	investment made by Hammerson	London Benchmarking Group,
opportunities for significant	over the last three years.	of which we are a member.
community investment.
					2017
				2016
				£3,067,660	£3,038,255
	TOTAL INVESTMENT
	Total value of direct contributions to the community		£2,438,660	£2,614,917
	Cash contributions			£777,481	£863,372
	Value of employee time			£328,498	£551,545
	In-kind donations			£1,332,681	£1,200,000
	Total in kind - Corporate			£0	£99,716
	Total in kind - Developments			£0	£0
	Total value of indirect contributions to the community generated from other sources than Hammerson	£629,000	£423,338
	Shopping Centre and Retail Park Portfolios
	Funds collected through charitable fundraising activities		£309,084	£177,138
	Value of Hammerson operations employees and non Hammerson employees' time dedicated to	£150,000	£207,217
	community activities
	Other leverage (e.g. other external partners, employees' contributions and service charge)		£20,194	£72,701
	Corporate
	Funds collected through charitable fundraising activities		£0	£27,021
	Value of Hammerson employee time dedicated to community activities		£100,000	£183,383
	Other leverage (e.g. other external partners, employees' contributions and service charge)		£36,945	£28,860
	Developments
	Value of Hammerson operations employees and non Hammerson		£47,096	£60,969
	employees' time dedicated to community activities
	Other leverage (e.g. other external partners, employees' contributions and service charge)		£41,590	£25,700
	Mandatory Investments - Developments
	Community investment through planning agreements		£110,000	£355,940
	Other Indicators
	Number of organisations that benefited from Hammerson direct and indirect contributions		434	476
	Full time equivalents on direct sustainability activities		18	20
	Employee Volunteering
	Number of days volunteered by Hammerson employees		312	254
	Hours volunteered by Hammerson employees			2498	2029
	Jobs supported from development schemes			6687	2872
	% Previously unemployed			23%	5%
	Number of persons voluntarily or involuntarily displaced and/or		0	0
	resettled by development, broken down by project

		GRI INDICATOR		TABLE
		102-43,203-2		3.4.3
2018	2019	COMMENTARY ON TREND
£2,010,703	£1,804,102
£1,699,179	£1,354,564
£536,626	£308,734
£246,005	£225,336
£916,548	£820,494
£4,207	£4,738
£670,101	£686,911
£311,524	£449,539	Increase of indirect contributions from other sources for several large scale projects in France
£192,230
£185,780
£112,445	£87,019	Reduction due to no Community Manager in post at Highcross and
		Environmental & Community Coordinator at Victoria Leeds
£19,232	£205,795	Increase in external leverage from external partners for several large scale projects in France
£28,088
£23,903
£110,475	£50,216	France Community Day included in 2017 & 2018 data. Reduction due to no
		Community Day in France during 2019
£110,475	£51,703
£5,843
£4,588
£13,843	£14,588
£0		No UK payments made in 2019. Figures for Pembroke Square, Les 3 Fontaines and Italie Deux
£579,263
449	436
19	17
576	404	Reduction due to no Community Day in France during 2019
4604	3232	Reduction due to no Community Day in France during 2019
1314	118	Figures only available for France - Les 3 Fontaines and Italie Deux
		2019 data not available for previously unemployed
0	0	None of our development projects have required displacement of
		persons in the four years to the reporting date

F O R M O R E

For more on how we are shaping our community investment to deliver on locally specific needs, and the social value we are delivering, see pages 69 - 75.

Dataeconomic DataWater Dataand Waste Dataand Energy andManagementTargets

Socio-Resource Use Carbon Data

Other

SUSTAINABILITY REPORT 2019: OUR DATA - STANDARDS AND CERTIFICATIONS

116 3.5 Standards

Hammerson	and Certifications
	The success of our sustainability strategy is
	built on robust processes and management
	systems. These are vital to supporting

1.0 INTRODUCTION

CERTIFICATION

In 2019, we maintained our ISO14001:2015 certification for our environmental management system (EMS), which covers all our shopping centre development and operations in the UK and Ireland. This will be extended to our French assets in 2020.

During 2019 we initiated the process of establishing an ISO500001

2.0 NET POSITIVE

compliant Energy Management System to compliment the EMS.

This project is making good progress and is expected to be in place by the end of Q1 2020.

We have continued to extend BREEAM in Use (BiU) certification across our French assets. 8/8 assets in France now have BiU certification.

81% of our portfolios by gross internal floor area are covered by an environmental certification system.

3.0 OUR DATA		GRI
A key focus for the asset management	117
teams has been the removal of
Minimum Energy Efficiency
Standards (MEES) risk from the
portfolio. We have consistently		Data Management Targetsand
managed tenants scoring F&G EPC
ratings out of the portfolio using
lease events and opportunities,
resulting in less than 7% F&G EPCs
across the affected portfolio.			Carbon and Energy Data

the delivery of expected outcomes from

major projects and investments.

Sustainability	GRI INDICATOR 471-1 EPRA CERT-TOT TABLE 3.5.1
Certification
	UK	UK RETAIL	FRANCE	IRISH RETAIL
CERTIFICATION	UNIT GROUP SHOPPING	RETAIL
PARKS	PORTFOLIO
	CENTRES	PORTFOLIO

Resource Use and Waste Data

SUSTAINABLE DESIGN STANDARDS

Our Sustainable Design Standard was developed to provide a consistent framework against which we can test the design of each of our development schemes from the earliest stages. It is used by the Positive Places Development Working Group to monitor progress and identify opportunities and challenges for each scheme.

Our Design Targets

BREEAM	Excellent
Considerate Constructors Scheme	40
Construction waste diversion from landfill
UK & Ireland	97%
France	90%
Demolition waste diversion from landfill
UK & Ireland	99%
France	95%
%FSC/PEFC timber on site demolition waste diversion from landfill	100%

ISO14001

Number of assets covered out of total	#	12/38	11/13	0/14	0/8	1/3
number of assets
Portfolio covered by ISO14001	m2	1,340,293	1,165,880	0	0	174,413
% portfolio covered by GIA	%	65%	83%	0%	0%	71%
BREEAM in Use
Number of assets covered out of total		6/39	0/14	0/14	5	1
number of assets
% GIA of portfolio covered by	m2	81%	83%	0	78%	71%
Environmental Management certifications
Energy Performance Certificates
Total number of certificates	#	1106	867	171	8	60
Area covered by EPCs	m2	1,306,485	546,807	199,071	535207	25,400
Area of EPCs expired in 2019	m2	246,081	232,826	13,255	0
Area requiring EPCs	m2	564,367	366,112	35,720	0	162,535
% area covered by current EPCs	%	70%	60%	85%	100%	14%

Other DataeconomicSocio-DataWater

Performance against Hammerson Sustainable Design Standard 2019

				CONSIDERATE
				CONSTRUCTORS	CON WASTE GEN
				SCHEME	CONSTRUCTION WASTE DIVERTED
			BREEAM RATING ACHIEVED	(T/100M²) (ON-
			(2019 AV	FROM LANDFILL (ON-SITE
			(CERTIFICATION STAGE)	SITE SCHEMES
			SCORE, ON SITE	SCHEMES ONLY)
				ONLY)
				UK SCHEMES
				ONLY)
	Les 3
	Fontaines	Excellent (Pre-assessment)	Not applicable	1.6	80%
	extension,
	Cergy
	Italie Deux	Excellent (Pre-assessment)	Not applicable		No construction waste
	extension,
	Paris
		Pembroke	Excellent (Pre-assessment)	Not applicable	4.6	100%
	Square,
	Dundrum
	Building	Not applicable	Not applicable		No construction waste
13,
Dundrum

					TABLE 3.5.2
	DEMOLITION	SITE ACTIVITY	POTABLE WATER	% FSC / PEFC	GRI G4 EN2 PERCENTAGE OF
	WASTE DIVERTED	CO2 EMISSIONS
	(M3/100M²)	TIMBER (ON-	MATERIALS THAT ARE RECYCLED
	FROM LANDFILL	(TCO2/100M²)
	(ON-SITE	SITE SCHEMES	INPUT MATERIALS (ON-SITE
	(ON-SITE SCHEMES	(ON-SITE SCHEMES
	SCHEMES ONLY)	ONLY)	SCHEMES ONLY)
	ONLY)	ONL)
	99%	0.09	8.4	100%	Data not provided by the
	contractor
	No demolition	0.33	13.0	100%	Data not provided by the
	waste	contractor
	100%	0.64	6.3	100%	N/A
	100%	0.02	1.0	No timber	N/A
	used

SUSTAINABILITY REPORT 2019: OUR DATA - CORPORATE DATA

118 3.6 Corporate Data

	1.0 INTRODUCTION	2.0 NET POSITIVE		3.0 OUR DATA
< Continues from previous page
			EXTERNAL		POSITIVE
			OR INTERNAL	RESIDUAL
RISK			PLACE CR
RISK	MANAGEMENT APPROACH	AUDIT/	RISK ASSESS-
AREA	BOARD RE-

119

Hammerson

Risk Management

	REVIEW	MENT	SPONSIBILITY
	PROCESS
BUSINESS STRATEGY
Non-compliance with good "Governance is an increasingly significant	Internal and	Medium	CEO

Management Targets

Our 2019 Annual Report and Accounts sets out our approach to business risk and this includes regulatory and legislative risks related to the environment, climate change and extreme weather events.

Key corporate risks and our approach to their management are disclosed within the Annual Report and Accounts.

Sustainability risks are identified and assessed according to likelihood of occurrence and scale of business impact.

This reflects financial and reputational impacts.

Table 3.6.1 here shows our Corporate Sustainability Risk Management Framework, identifying key sustainability risks and how we are responding.

Reputational	governance standards	area of scrutiny for invetors with an ESG	external
within the business and	framework.
within the supply chain	We need to a more robust means of assessing
	a range of issues for our supply chain. "
Financial	Rising energy costs	We are committed to reducing carbon	Internal	Medium	Operations
including regulatory/	emissions, and our exposure to carbon tax			Director
fiscal charges leading to
potential financial loss
PROPERTY DEVELOPMENT

Use Carbon Data and Energy Dataand

Corporate Risk Management Framework				TABLE
			3.6.1
				EXTERNAL		RESIDU-	POSITIVE
					PLACE CR
RISK				OR INTERNAL		AL RISK
RISK	MANAGEMENT APPROACH		BOARD
AREA	AUDIT/REVIEW		ASSESS-
				PROCESS		MENT	RESPONSI-
					BILITY
BUSINESS STRATEGY
	Failure to meet	Measures put in place to underpin work towards the 2020 targets	Internal and		Medium	Group Head of
Reputational	published	including role specific objectives and inclusiion of carbon within	external			Sustainability
sustainability	Personal bonus calculations.
	objectives or comply	Asset teams are clear regarding the key projects that need to be
	with published	delivered.
	sustainability	The Sustainability Team works closely with the Asset Management
	principles	and Property Management teams to ensure opportunities to
		improve performance are identified and initiatives implemented.
	Failure to address	Our experience and expertise in this area is strong however the	Internal and		Medium	Development
	sustainability within	implmentation of the City Quarters strategy will place additional	external			Director
	our development	demands on the business to deliver more complex, longer term
Financial	programme and	sustainability outcomes. The adoption of Passivhaus and DfP
deliver successful	alongside BREEAM will support out delivery of high performing
	outcomes leading	schemes. These requirements alongside a clear vision for a sustainable
	to potential delay	product need to be a fundamental part of the CQ concept.
	to planning and
	or development
	process
	Non-compliance	Carbon Reduction Commitment Energy Efficiency Scheme:	Internal and		Medium	Group Head of
	with UK, Irish,	-	reporting assets identified and data evidence	external			Sustainability
	French and EU		gathering procedures and methodology in place
	Environmental	- annual reporting complied with and cost of allowances passed
	regulation and		through to tenants in accordance with RICS Service Charge Code.
	legislation	- asset business plan target to reduce CRC
			costs through energy reduction
		Minimum Energy Efficiency Standards:
		- programme of work to reduce exposure to EPC risk
			by reviewing E, F and G rated units progressing. At
Regulatory			risk units prioritized based in leasing strategy.
		EPC is retained when a tenant vacates
		- establish and embed a robust EPC process in retail delivery
			to ensure there is no risk from MEES legislation
		- lease clauses updated to ensure compliant
		-	retail delivery process refined to ensure
			fit out delivers a compliant EPC
		Energy Savings Opportunity Scheme:
		- audits carried out as required for UK portfolio
		- implementation of appropriate findings
			wihtin asset business plans
		- french portfolio not required to report
			under Article 8 regulations
		Heat Network Regulations:
		- relevant assets registered and reported
					Continues on the next page >

	Poor performance	Scores increased in 2019.	Internal and	Medium	Group Head of
	in investor-focused		external		Sustainability
	industry benchmarks
Reputational	Failure to achieve	Experience is enabling us to deliver BREEAM	Internal and	Medium	Director,
corporate targets	against target. This risk is now low but as we	external		Retail Dev
of Passivhaus for	have raised our targets to achieve Passivhaus
development projects	and to implement DfP the risk description has
	been updated and this remains a medium risk.
OPERATIONAL
	Lack of engagement	Increaseing investor concern with		Medium	Group Head of
Reputational	of JV partners on	Environmental, Social and Governance issues			Sustainability
sustainability matters	and their development of bespoke internal
	rating systems makes our continued dialogue
	with this stakeholder community essential.
	We continue to gain useful feedback and input
	from many of the investors with engagement
		with on ESG and sustainability issues.
	Impact of climate change	Portfolio-wide climate risk review has been	Internal	Medium	Director UK and
	on our portfolios leading	completed. Climate risk scenario work needs			Ire Shopping
Financial	to potential financial	to be carried out to ensure we understand			Centres
loss through additional	upstream and downstream climate risk for			MD Hammerson
operational and insurance	the business. This was initially scheduled			Fr
costs, financial and	for 2020 but has been moved back to 2021.
	reputation loss through
	inability of assets to
	function effectively
Reputational	Staff insufficiently	We work closely with our internal teams		Medium	Group Head of
equipped with the	and our suppliers to ensure all staff receive			Sustainability
knowledge and tools	sufficient environmental and sustainability
to achieve corporate	training to support them in the delivery of
sustainability goals	the sustainability requirements of their role.

Other DataeconomicSocio-DataWater DataandResourceWaste

SUSTAINABILITY REPORT 2019: OUR DATA - CORPORATE DATA

120 3.6 Corporate Data

Managing Corporate Environmental Impacts

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

GRI

121

Hammerson

The direct sustainability impacts of our corporate operations are relatively limited. However, the significance of these impacts within our overall footprint is rising as our asset level impacts is reduced. We are therefore focusing on reducing key corporate emissions from, for example, business travel and the company car fleet. We are transitioning the French company car fleet to hybrid and electric vehicles and are exploring taking a similar approach in the UK.

We occupy offices in London, Reading, Paris and Dublin.

We have been very careful to ensure the fit out of these offices is supported energy efficiency targets. However, we continually seek improvements. We have removed all single use plastic from our UK and Irish offices and work closely with our caterers to minimise food waste and support more carbon efficient menus including reducing meat options.

It is important to our colleagues that our corporate approach is aligned with our efforts to reduce emissions across our assets.

F O R M O R E

For more details on how we engage our employees in sustainability see pages 128 - 129.

Hammerson owned transport				TABLE 3.6.3
	UNIT	EPRA INDICATOR	2018		SOURCE
Petroleum consumption	mtCO2e	GHG-Dir-Abs		0	DEFRA 2019
Diesel consumption	mtCO2e	GHG-Dir-Abs		32	DEFRA 2019

DataDataand Targets

Water and Waste and Energy Management

Resource Use Carbon Data

Hammerson Corporate office		GRI INDICATOR
environmental data			305-1,305-2,305-3,302-1,	TABLE 3.6.2
			303-1,306-2
		EPRA/	KINGS	AQUIS	RUE	DUNDRUM
	UNIT	GRI	PLACE,	HOUSE,	CAMBON,	TOWN CENTRE,
		CODE	LONDON	READING	PARIS	DUBLIN
Net internal area	m2		2,343	787	1,721	211
CARBON
Scope 1	mtCO2e		n/a	24	n/a	n/a
Scope 2	mtCO2e		119	77	11	15
Scope 3*	mtCO2e		0	1	1	n/a
ELECTRICITY
Hammerson electricity consumption	kWh	GRI 302-1	466,241	303,123	156,497	40,410
NATURAL GAS
Hammerson natural gas consumption	kWh/m2	GRI 302-1	n/a	128,797	n/a	n/a
Energy intensity/m2 occupied area	kWh		199	385	91	191
WATER
Hammerson water consumption	kWh	GRI 303-1	310	996	547	n/a
WASTE
Total waste quantity	tonnes	GRI 306-2	6	9	22	n/a
Diverted from landfill	tonnes	GRI 306-2	6	9	22	n/a
Total recycled excluding tenant shopfit	tonnes		5	0	0	n/a
Total incineration (used for fuel)	tonnes		1	9	22	n/a
Total incineration (not used for fuel)	tonnes		0	0	0	0
Total hazardous waste	tonnes		0	0	0	0
Food disposal [direct]	tonnes

* Scope 3 includes Hammerson electricity consumption of common parts in the corporate head offices in London.

Other Dataeconomic Data

Socio-

SUSTAINABILITY REPORT 2019: OUR DATA - CORPORATE DATA

122 3.6 Corporate Data

Employee Development and Satisfaction

1.0 INTRODUCTION	2.0 NET POSITIVE	3.0 OUR DATA
		GRI INDICATOR
Employee training		EPRA EMP-DEV,	TABLE 3.6.4
	EMP-TRAINING,GRI
	404-3,404-1

GRI

123

Hammerson

Ensuring our people are both inspired to act and equipped with the necessary skills to do so is key to the delivery of Net Positive.

In 2019 we met our target for all new employees in place for more than six months to undertake

a sustainability induction.

In order to achieve operational excellence for sustainability we continue to invest in training for on-the-ground teams at our centres. This includes both contractors and direct employees. In 2019, 304 centre employees undertook one or more of the following courses.

1. One Day IEMA Certified Environmental Awareness

• an introductory course to global macro environmental issues, understanding Hammerson's Positive Places strategy and centre- level targets and projects. The course included top tips for environmental management including drain care, spill management and energy and water reduction. This course is mandatory for all new centre starters at all levels of the business, and is an accessible introduction to environmental awareness.

1. Two Day IEMA Certified Operational Environmental Management
2. • an intermediate two-day course that is mandatory for certain roles and managers at centres. Covers greater detail on environmental legislation, Hammerson's obligations and environmental incident management
3. Five Minute Online Environmental Awareness Refresher
4. • an online refresher course for colleagues to complete no more than three years after the One Day IEMA course. Designed by Hammerson and updated annually

We believe this investment in skills development for our people is a key driver behind the high satisfaction scores regarding Corporate Responsibility that we achieve in our annual People Survey, which is aligned to the Great Place to Work framework. In 2019 90% of employees reported feeling positive about Hammerson's efforts to reduce environmental impact and to responsibly manage societal impact.

	UNIT	GROUP	UNITED	FRANCE		IRELAND
	KINGDOM
Total expenditure on employee training and total	£	570,739	392,260	163,491		14,989
hours of training per year
Total hours of training per year	Hour	11,824	8,766	2,857		201
Total hours of training per year per employee	Hour	21	23	21		6
GRI LA12 % permanent employees receiving regular	%	100%	100%	100%		100%
performance and career development reviews
NUMBER OF EMPLOYEES WHO ATTENDED TRAINING PROGRAMMES UNDER THE FOLLOWING CATEGORIES
Emergency Response	#	125	111	0		14
Environmental Management	#	216	126	73		17
Finance Skills	#	25	19	5		1
Health & Safety	#	150	123	6		21
I.T. Skills	#	299	278	0		21
Management & Leadership	#	33	25	7		1
Onboarding - for new starters	#	498	423	40		35
Personal Development	#	207	191	2		14
Policy & Compliance	#	84	72	1		11
Project Management	#	36	7	28		1
Sustainability	#	221	96	121		4
NUMBER OF EMPLOYEES WHO RECEIVED PROFESSIONAL TRAINING
Number of employees in Category 1	#	49	36	13		0
(Senior Management)
Number of employees in Category 2	#	327	211	93		23
(other Hammerson staff apart from Senior Management)
Number of employees in Category 3	#	177	139	29		9
(Support Employees)

Other DataeconomicSocio-DataWater DataandResourceWasteUse DataandCarbonEnergy andManagementDataTargets

SUSTAINABILITY REPORT 2019: OUR DATA - CORPORATE DATA

124

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

125

Hammerson	Employee development and satisfaction			TABLE 3.6.5
Total number of direct employees	553	386	135	32
		GROUP	UK	FRANCE	IRELAND
	Total Workforce by contract by country by gender (EPRA Diversity-Emp, GRI 405-1)
	Total number of supervised workers	1,280	1,133	13	134
	Number of employees under indefinite or permanent contract	524	366	127	31
	Number of employees under temporary/fixed term contract	29	20	8	1
	Number of employees on a full time contract	519	358	130	31
	Number of employees under part time contract	34	28	5	1
	Number of employees covered by Collective Bargaining Agreements	135	0	135	0
	Number of FTE	544	379	134	32
	Employees by age by country
	Percentage of employees aged 21-25	6%	5%	9%	6%
	Percentage of employees aged 26-34	33%	32%	35%	41%
	Percentage of employees aged 35-44	27%	27%	28%	25%
	Percentage of employees aged 45-54	22%	24%	20%	13%
	Percentage of employees aged 55-64	10%	11%	8%	13%
	Percentage of employees aged 65+	0.7%	0.8%	0%	3%
	Percentage of employees aged less than 21	0.2%	0.3%	0%	0%
	Employee by level, category and region
	Number of employees in Category 1 (Senior Management)	49	36	13	0
	Number of employees in Category 2	327	211	93	23
	(other Hammerson staff apart from Senior Management)
	Number of employees in Category 3 (Support Employees)	177	139	29	9
	Flexible Working and diversity training
	Number of Hammerson's direct employees working flexible hours due to	45	43	1	1
	parental or carer responsibility
	Number of requests for flexible working that have been accepted	18	13	5	0
	Number of total requests for flexible working for the reporting year	18	13	5	0
	Number of employees given diversity training	383	360	0	23
	Employee Development and Satisfaction (EPRA Emp-Dev, GRI 404-3)
	Number of employees receiving regular performance and career development reviews	532	135	31	366
	Number of employees to whom the "Great Place to Work " survey was sent	548	133	32	383
	Number of employees who responded to the "Great Place to Work" survey	471	114	28	329
	Total number of incidents of discrimination	0	0	0	0
	Women in the workforce (GRI 102-8)
	Hammerson female direct employees (includes contractors)	298	212	67	19
	Hammerson male direct employees (includes contractors)	255	174	68	13
	Number of Hammerson female employees on a full time contract	268	186	63	19
	Number of Hammerson female employees under part time contract	30	26	4	0

< Continues from previous page

	GROUP	UNITED	FRANCE	IRELAND
	KINGDOM
Women in the workforce (GRI 102-8) Cont.
Percentage of female employees	54%	55%	50%	59%
Number of females on the Board of Directors	5	4	1	0
Total number of Directors on the Board	14	10	4	0
Number of Hammerson female employees in Category 1 (Senior	14	11	3	0
Management)
Number of Hammerson female employees in Category 2	155	98	46	11
(other Hammerson staff apart from Senior Management)
Number of Hammerson female employees in Category 3 (Support	129	103	18	8
Employees)
Employee turnover by age, gender and country
Number of permanent employees under 21 who left Hammerson	0	0	0	0
during reporting year
Number of permanent employees 21-25 who left Hammerson	6	5	1	0
during reporting year
Number of permanent employees 26-34 who left Hammerson	33	18	13	2
during reporting year
Number of permanent employees 35-44 who left Hammerson	18	15	3	0
during reporting year
Number of permanent employees 45-54 who left Hammerson	8	7	1	0
during reporting year
Number of permanent employees 55-64 who left Hammerson	9	7	2	0
during reporting year
Number of permanent employees+65 who left Hammerson during reporting	1	1	0	0
year
Total number of employee turnover (Hammerson's permanent employees	74	52	20	2
only)
Voluntary staff turnover as a percentage	10%	14%	15%	6%
Number of male leavers during the reporting year	32	24	8	0
(Hammerson's permanent employees only)
Number of female leavers during the reporting year	43	29	12	2
(Hammerson's permanent employees only)
Male turnover (against the number of total employees who have left)	43%	46%	40%	0%
Female turnover (against the number of total employees who have left)	39%	23%	10%	100%
Number of employees given diversity training (GRI 405-1)	267	252	0	15
For Diversity Pay, please see our Annual Report & Accounts, page 44

Other DataeconomicSocio-DataWater DataandResourceWasteUse DataandCarbonEnergy andManagementDataTargets

Continues on next page >

SUSTAINABILITY REPORT 2019: OUR DATA - CORPORATE DATA

126 3.6 Corporate Data

Managing Health and Safety (H&S)

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

127

Hammerson

Our Occupational Health and Safety Management Standard

18001 (OHSAS 18001) certified system has been in place since December 2013. The OHSAS 18001 is a specification and framework for the management of specific occupational health and safety risks in the workplace. It covers planning for hazard identification, training

and communication, emergency preparedness and response, risk assessment and control, occupational health and safety management, and performance measuring and improvement.

Hammerson receives annual independent verification that we are meeting the requirements of the standard.

We also conduct regular internal audits and reviews to ensure we are meeting the requirements set out in our documented policies and procedures between external audits.

MIGRATING FROM OHSAS 18001 TO ISO 45001

Over the course of 2020 we will transition from OHSAS 18001 to the new international standard, ISO 45001. This will bring synergies across all other ISO accreditations we hold including our ISO

14001 accredited environmental management system. Hammerson are currently developing the health

INTEGRATING SECURITY INTO HEALTH AND SAFETY

Hammerson has recognised that security should sit alongside health and safety and be managed in an integrated way, and as a first step we have ensured that our Statement of Intent Policy now includes security risk management as an integrated part of the H&S framework and Security Strategy. Following

Security issues were included in France H&S Committee reports. As part of the global H&S strategy to promote better integration of H&S issues in daily processes, the French operations team hold regular meetings with centre teams, conducted by Head Office managers.

From 2018 in France, Hammerson have faced new forms of

Use Carbon Data and Energy Management Dataand Targets

Our Health and Safety Governance Structure

CORPORATE H&S
hammerson plc board
GOVERNANCE
Hammerson Chairman
Our governance structure enables
us to manage H&S effectively.
	group health and
	safety committee
	Chief Finance Officer

hammerson uk & ireland		hammerson france
health and safety		health and safety
committee		committee
Chair: Hammerson		Chair: Hammerson
UK & Ireland
	France CFO PR
Operations Director

OPERATIONAL H&S

Director Responsible for

GOVERNANCE

Group Health and Safety

MD Hammerson

Hammerson France

UK & Ireland

Operation Director

Hammerson UK & Ireland

Hammerson France Head

Operations Director

of Property Management

Health and Safety

Health and Safety

Manager

Coordinator

and safety management system to meet the new set of requirements and have a target to obtain the new certification by the end of 2020.

Dundrum Town Centre and Grand Central, whilst following the OHSAS 18001 processes, will be incorporated within the management system as part of the transition to ISO 45001. France is not yet ISO certified and we have a similar target to include our French operations within the ISO 45001 certification. The implementation process began in 2020.

this integration, the Group H&S Committee continues to include security and crisis preparedness in their quarterly meetings, as part of the ongoing security threat that we face as crowded public venues.

In France, we have been responding to the push for authorities and private real estate companies to adapt buildings and transform security processes. We audited our assets and implemented a Group Security Strategy through an investment action plan

and a deep process review.

security risk from the "Gilets Jaunes" movement and most recently from climate activists. These activist organisations, sometimes merged with violent groups, are new and different to threats from terrorism. Linked to these events, we have established a network alongside special police departments

to help us in controlling all social demonstrations and Black Bloc violence.

During 2020 it is our aspiration that a UK&I shopping centres will trial the 'Secured Environments' accreditation, which mirrors H&S principles, providing consistency in approach. Secured Environments is a police certification scheme that is awarded to organisations who are able to show that they have adopted six key principles for protecting themselves against all kinds of crime. If the trial accreditation is successful, we will adopt the principles across our UK assets in an effort to receive full accreditation. Whilst this scheme is not available in Ireland we can still apply and follow

the principles at these assets.

Other DataeconomicSocio-DataWater DataandResourceWaste

General Manager		General Manager

SUSTAINABILITY REPORT 2019: OUR DATA - CORPORATE DATA

128 3.6 Corporate Data

Managing Health and Safety (H&S)

1.0 INTRODUCTION2.0 NET POSITIVE3.0 OUR DATA

Health and Safety - Customer & Occupational	TABLE 3.6.6
		UNIT	GROUP
	ABSENTEE RATE

129

Hammerson

NEW H&S

MANAGEMENT TOOL

During Q4 2019 we moved our health, safety and security data reporting onto a new Group reporting platform with better features and functionality, enabling better health and safety governance across our portfolio. This improved reporting platform will deliver a consistent approach to managing and mitigating risks across the business. With enhanced visibility of trends and analytics at all levels across the business, it will enable us to see what risk management protocols are in place or still pending, along with celebrating H&S successes.

The new platform will also enable us to continuously improve our health and safety culture by making these outcomes more visible

to line and senior management. This equips managers with the knowledge of centre-level activity, enabling them to more proactively embed the importance of health, safety and security.

As security is being integrated into the health and safety risk management protocols, security risks will become as visible and managed in the same way as health

and safety risks. The system will also be expanded to other areas of our business including our strategic portfolio, resulting in greater governance across the business and at a Group level.

In France our teams are currently using the incident management module and look to expand the use of the other modules in line with efforts towards obtaining ISO 45001.

GRI 403-9	Group absentee rate for employees and contractors (% of total days scheduled)	%	1%
EPRA H&S Emp
	LOST DAY RATE
GRI 403-9	Number of lost days to direct employees	#	0
EPRA H&S Emp
	LOST-TIME INJURY FREQUENCY RATE
		n/
EPRA H&S Emp	Employees	million	0
		work h
		n/
EPRA H&S Emp	Contractors	million	6
		work h
	WORK RELATED INJURIES
GRI 403-9	RIDDOR reportable injuries across the managed portfolio	#	10
EPRA H&S Emp	(Hammerson employee & customer)
GRI 403-9	Total number of dangerous occurrences, reportable injuries and fatalities to employeesa	#	8
EPRA-H&S-Emp
GRI 403-9	Total number of dangerous occurrences, reportable injuries and fatalities to non-	#	208
EPRA H&S Emp	employeesa
GRI 416-2	Total number of dangerous occurrences, reportable injuries and fatalities to customersa	#	417
EPRA-H&S-Comp	COMPLIANCE - No incidents were reported in any operating region for 2018
	Total number of incidents of non-compliance with regulations and voluntary codes

DataDataDataand Targets

Water and Waste and Energy Management

Resource Use Carbon Data

Communication+: Integrating

Commercial Aspects with

Health, Safety and Security

After a successful trial at one of our centres	co-working by sharing information, and has
we launched Communication+ to our	integrated health, safety and security functions
UK&I shopping centre portfolio in 2019.	including critical communications, emergency
Communication+ is a powerful tool that enables	contacts, push notification alerts and a panic
improved engagement between Hammerson	button. The panic button provides a level of
and our retailers, on both commercial	support to both retail and employee staff who
aspects and on health, safety and security.	are working alone in our centres. This is part
Communication+ enables us to collate data	of our commitment to continually improve and
integrate safe working practices at our centres.
and report on areas such as footfall, encourages

GRI 416-2	concerning product and service information and labelling, by type of outcomes	#	0
	Total number of incidents of non-compliance with regulations and voluntary codes
GRI 416-2	concerning the health and safety impacts of products and services during their life cycle,	#	0
	by type of outcome
GRI 416-2	Non-compliance with regulations resulting in a fine or penalty	#	0
GRI 416-2	Non-compliance with regulations resulting in a warning	#	0
GRI 416-2	Non-compliance with voluntary codes	#	0
GRI 306-3	Total number and volume of significant spills	#	0
	HEALTH AND SAFETY MANAGEMENT SYSTEM (GRI INDICATOR 416-1)
CRE EPRA	% of the organisation operation operating in verified compliance with an internationally
recognized health and safety management system - 11 UK assets only in 2018 using	%	41%
H&S-Asset
OHSAS 18001
	Health and safety management system used
GRI 403-1	Note: the system has been implemented based on recognised risk management and/or		OHSAS 18001
	management system standards/guidelines
EPRA- H&S-Asset	Percentage of assets for which health and safety impacts are assessed or reviewed for	%	100%
compliance or improvement.
	TRAINING
	% Employees given health and safety training covering Customer/tenant, Supply chain
	and Workplace	%	27%
GRI 403-5	Note: A description of any occupational health and safety training provided to workers,
	including generic training as well as training on specific work-related hazards,
	hazardous activities, or hazardous situations.
	HEALTH & WELLBEING
	Employee surveys on health and well being conducted in the reporting year		NO
	Number of physical and/or mental health checks;
GRI 403-6	We provide voluntary health promotion services and programs offered to workers to	#	116
address major non-work-related health risks. Employees are provided with coporate
	vouchers for free flu jabs, eye tests and access to health checks with a private doctor
GRI 403-2	Number of workstation or workplace checks	#	400

a) "Total number of dangerous occurrences, reportable injuries and fatalities to employees" did not include any fatalities in 2019

Data

Other economic

Socio-

SUSTAINABILITY REPORT 2019: OUR DATA - DATA COVERAGE

130 3.7 Data Coverage

Hammerson	Assets included in the data sets for 2019
					TABLE 3.7.1
		OWNERSHIP	GROUP	EPRA LFL	NET POSITIVEa
	Hammerson UK Shopping Centre Portfolio
	Brent Cross, London		41%	Y	Y	Y
	Bullring, Birmingham		50%	Y	Y	Y
	Cabot Circus, Bristola		50%	Y	Y	Y
	Centrale, Croydon		50%	Y	Y	Y
	Grand Central, Birmingham		50%	Y	Y	Y
	Highcross, Leicester		50%	Y	Y	Y
	Silverburn, Glasgowe		50%	Y	Y	Y
	The Oracle, Reading		50%	Y	Y	Y
	Union Square, Aberdeen		100%	Y	Y	Y
	Victoria, Leeds		100%	Y	Y	Y
	WestQuay, Southamptonc		50%	Y	Y	Y
	Whitgift, Croydon		50%	Y	N	Y
	Hammerson Ireland Shopping Centre	Portfolio
	Dundrum Town Centre		50%	Y	Y	Y
	Ilac		50%	Y	Y	Y
	Swords Pavilions		50%	Y	Y	Y
	Hammerson France Shopping Centre Portfolio
	Cergy 3		100%	Y	N	Y
	Espace, Saint Quentin		25%	Y	Y	Y
	Italie 2, Paris		100%	Y	Y	Y
	Les 3 Fontaines, Cergy-Pontoise		50%	Y	Y	Y
	O'Parinor Shopping Centre, Aulnay-sous-Bois		25%	Y	Y	Y
	Les Terrasses du Port, Marseille		100%	Y	Y	Y
	Nicetoile, Nice		10%	Y	Y	Y
	SQYOuest, Saint Quentin		100%	Y	Y	Y
	Hammerson UK Retail Parks Portfolio
	Abbey Retail Park, Belfast		100%	Y	Y	Y
	Abbotsinch Retail Park, Glasgow		100%	Y	N	Y
	Brent South Shopping Park, Brent Cross		41%	Y	Y	Y
	Central Retail Park ( 1 & 2), Falkirk		100%	Y	Y	Y
	Cleveland Retail Park, Middlesborough		100%	Y	Y	Y
	Cyfarthfa Retail Park, Merthyr Tydfil		100%	Y	Y	Y
	Dallow Road, Luton Warehouse		100%	Y	N	Y
	Elliot's Field, Rugby		100%	Y	Y	Y
	Parc Tawe Retail Park, Swansea		100%	Y	Y	Y
	Ravenhead Retail Park, St Helens		100%	Y	Y	Y
	St Oswalds Retail Park, Gloucester		100%	Y	N	Y
	Telford Forge Retail Park		100%	Y	Y	Y
	The Broadway, Didcot		100%	Y	N	Y
	The Orchard Centre, Didcot		100%	Y	Y	Y

Continues on the next page >

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

< Continues from previous page

	OWNERSHIP	GROUP	EPRA LFL	NET POSITIVEb
Hammerson Corporate Porfolio
Aquis House, Reading	0%	Y	N	Y
Kings Place, London	0%	Y	N	Y
Rue Cambon, Paris	0%	Y	N	Y
Hammerson Strategic Portfolio
126 Vicar Lane	100%	Y	N	Y
27 - 30 Ladybeck	100%	Y	N	Y
27 Eastgate	100%	Y	N	Y
29-31 Eastgate Street	100%	Y	N	Y
7 Eastgate	100%	Y	N	Y
7-25 Eastgate Street	100%	Y	N	Y
AEU House	100%	Y	N	Y
Broadmead, Bristol	50%	Y	N	Y
Dundrum Offices, Dublin	50%	Y	N	Y
Lydia Street Garage	100%	Y	N	Y
Martineau Galleries, Birmingham	100%	Y	N	Y
National Deposit House	100%	Y	N	Y
Provident House	100%	Y	N	Y
The Point	100%	Y	N	Y
Union House	100%	Y	N	Y
Hammerson Premium Outlets Portfolio	- Value Retail
Bicester Village, UK	50%	N	N	N
La Roca Village, Barcelona	41%	N	N	N
Las Rozas Village, Madrid	37%	N	N	N
La Vallée Village, Paris	26%	N	N	N
Maasmechelen Village, Brussels	27%	N	N	N
Fidenza Village, Milan	34%	N	N	N
Wertheim Village, Frankfurt	45%	N	N	N
Ingolstadt Village, Munich	15%	N	N	N
Kildare Village, Dublin	41%	N	N	N
Hammerson Premium Outlets Portfolio	- VIA Outlets
Batavia Stad Amsterdam Fashion Outlet	50%	N	N	N
Fashion Arena Prague Outlet	50%	N	N	N
Landquart Fashion Outlet, Zürich	50%	N	N	N
Freeport Lisboa Fashion Outlet	50%	N	N	N
Hede Fashion Outlet, Gothenburg	50%	N	N	N
Mallorca Fashion Outlet	50%	N	N	N
Wroclaw Fashion Outlet, Poland	50%	N	N	N
Sevilla Fashion Outlet	50%	N	N	N
Zweibrücken Fashion Outlet, Germany	50%	N	N	N
Vila do Conde Porto Fashion Outlet, Portugal	50%	N	N	N
Oslo Fashion Outlet	50%	N	N	N

131

Other DataeconomicSocio-DataWater DataandResourceWasteUse DataandCarbonEnergy andManagementDataTargets

1. Net Positive by % Ownership
2. WestQuay South, Southampton data is incorporated into WestQuay, Southampton from 2018

SUSTAINABILITY REPORT 2019: OUR DATA - GRI INDEX

132 3.8 GRI Index

1.0 INTRODUCTION

2.0 NET POSITIVE

3.0 OUR DATA

< Continues from previous page

DESCRIPTION

LOCATION

2019 PAGE

SPECIFIC STANDARD DISCLOSURES DMA AND INDICATORS - CATEGORY: ENVIRONMENTAL

GRI

133

Hammerson	General Standards Data
		GRI 102: 2016	TABLE 3.8.1
		DESCRIPTION	LOCATION	2019 PAGE
	STRATEGY	AND ANALYSIS
		STRATEGY AND ANALYSIS
	102-14	Chief Executive statement	Sustainability Report	2 - 5
		ORGANIZATIONAL PROFILE
	102-1	Name of the organization	Annual Report and Accounts 2019	206
	102-2	Activities, brands, products, and services	Annual Report and Accounts 2019	2
	102-3	Location of headquarters	Annual Report and Accounts 2019	206
	102-4	Location of operations	Annual Report and Accounts 2019	185-189
	102-5	Ownership and legal form	Annual Report and Accounts 2019	185-189
	102-6	Markets served	Annual Report and Accounts 2019	2-3,185-189
	102-7	Scale of the organization	Annual Report and Accounts 2019	185-189
	Sustainability Report
	102-8	Information on employees and other workers	Sustainability Report Annual Report and Accounts 2019	126-129;42-44
	102-41	Collective bargaining agreements	Sustainability Report	128
	102-9	Supply chain	Sustainability Report	29
	102-10	Significant changes to the organization and its	Annual Report and Accounts 2019	4-5;30-32
	supply chain	Positive Places website
	102-11	Precautionary Principle or approach	Annual Report and Accounts 2019	18-19;58-65
	Sustainability Report
	102-12	External initiatives	Sustainability Report	2-5
	102-13	Membership of associations	Sustainability Report	26-28
		IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
	102-45	Entities included in the consolidated financial	Annual Report and Accounts 2019	202-203
	statements
	102-46	Defining report content and topic boundaries	Sustainability Report	12-15
			Sustainability Report Website:
	102-47	List of material topics	http://sustainability.hammerson.com/465/our-material-sustain-	12-15
			ability-issues.html
	102-48	Restatements of information	Sustainability Report	Restatement specified in
	relevant data sections
	102-49	Changes in reporting	Sustainability Report	84-85
		STAKEHOLDER ENGAGEMENT
	102-40	List of stakeholder groups	Sustainability Report	8-9

MATERIAL ASPECT: ENERGY (GRI 203: 2016)

103-1	Explanation of the material topic and its	Sustainability Report
Boundary
103-2	The management approach and its components	Sustainability Report
103-3	Evaluation of the management approach	Sustainability Report
* 302-1	Energy consumption within the organization	Sustainability Report
* 302-3	Energy intensity (Building Energy Intensity)	Sustainability Report
* 302-4	Reduction of energy consumption	Sustainability Report
302-5	Reductions in energy requirements of products	Sustainability Report
and services
	MATERIAL ASPECT: WATER (GRI 303:	2018)
103-1	Explanation of the material topic and its	Sustainability Report
Boundary
103-2	The management approach and its components	Sustainability Report
103-3	Evaluation of the management approach	Sustainability Report
* 303-3	Water withdrawal by source	Sustainability Report
	MATERIAL ASPECT: EMISSIONS (GRI 305: 2016)
103-1	Explanation of the material topic and its	Sustainability Report
Boundary
103-2	The management approach and its components	Sustainability Report
103-3	Evaluation of the management approach	Sustainability Report
* 305-1	Direct (Scope 1) GHG emissions	Annual Report and Accounts 2019
Sustainability Report
* 305-2	Energy indirect (Scope 2) GHG emissions	Annual Report and Accounts 2019
Sustainability Report
* 305-3	Other indirect (Scope 3) GHG emissions	Annual Report and Accounts 2019
Sustainability Report
* 305-4	GHG Emissions Intensity	Sustainability Report
305-6	Emissions of ozone-depleting substances (ODS)	Sustainability Report
	MATERIAL ASPECT: EFFLUENTS AND WASTE (GRI 306: 2016)
103-1	Explanation of the material topic and its	Sustainability Report
Boundary
103-2	The management approach and its components	Sustainability Report
103-3	Evaluation of the management approach	Sustainability Report
* 306-2	Waste by type and disposal method	Sustainability Report
306-3	Significant spills	Sustainability Report
	MATERIAL ASPECT: LOCAL COMMUNITIES (2016)
103-1	Explanation of the material topic and its	Sustainability Report
Boundary
103-2	The management approach and its components	Sustainability Report
103-3	Evaluation of the management approach	Sustainability Report

OCCUPATIONAL HEALTH & SAFETY (GRI 403: 2018)

12-15, 46

12-15,38-39,48-49

12-15,38-39,48-49

96-103

96-101

96-103

104

12-15, 62

12-15,38-39,64-65

12-15,38-39,64-65

112-115

12-15, 46

12-15,38-39,48-49

12-15,38-39,48-49

90-95, 124; 205

90-95, 124; 205

90-95, 124; 205

90-93

104

12-15, 54

12-15,38-39,56-57

12-15,38-39,56-57

106-109, 124

133

12-15, 70

12-15,38-39,72-73

12-15,38-39,72-73

Other DataeconomicSocio-DataWater DataandResourceWasteUse DataandCarbonEnergy andManagementDataTargets

102-42	Identifying and selecting stakeholders	Sustainability Report	25
102-43	Approach to stakeholder engagement	Sustainability Report	25-33
102-44	Key topics and concerns raised	Sustainability Report	25-33
	REPORT PROFILE
102-50	Reporting period	Sustainability Report		42, 85
102-51	Date of most recent report	Sustainability Report		85
102-52	Reporting cycle	Sustainability Report		42, 85
102-53	Contact point for questions regarding the report	Sustainability Report		Back cover
102-54	Reporting in accordance with the GRI Standards	Sustainability Report		42, 85-87
102-55	GRI Index	Sustainability Report		136-137
102-56	External assurance	Sustainability Report		86
	GOVERNANCE
102-18	Governance structure	Sustainability Report		16-17
	ETHICS AND INTEGRITY
102-16	Values, principles, standards, and	Annual Report and Accounts		77
norms of behaviour
203-2	Indirect Economic Impacts	Sustainability Report		118-119
			Continues on the next page >

401-1	New hires and turnover	Annual Report and Accounts 2019	42-44
403-1	Occupational health and safety management	Sustainability Report	133
system
403-2	Injury rate, absentee rate and number of work	Sustainability Report	133
related fatalities
403-8	Workers covered by an occupational health and	Sustainability Report	133
safety management system
403-9	Work-related injuries	Sustainability Report	133
	SOCIAL PERFORMANCE MEASURES (2016)
404-1	Employee training and development	Sustainability Report	127-129
404-3	Employee performance appraisals	Sustainability Report	128
405-1	Employee gender diversity	Sustainability Report	128-129
416-1	Asset health and safety assessments	Sustainability Report	131-132
416-2	Asset health and safety compliance	Sustainability Report	131-132
413-1	Operations with local community engagement,	Sustainability Report	116-119
impact assessments, and development programs

• Data assured by Deloitte LLP. This assurance statement is available on the Positive Places website: http://sustainability.hammerson.com/monitor-and-evolve/gri-disclosures.html

SUSTAINABILITY REPORT 2019: OUR DATA - GHG EMISSIONS

134 3.9 GHG

1.0 INTRODUCTION2.0 NET POSITIVE3.0 OUR DATA

3.10 Glossary	135

Hammerson	Emissions factors

Carbon emission factors 2019		TABLE 3.10.1
	LOCATION BASED	MARKET BASED RESIDUAL	SOURCE
Electricity kgCO2e/kWh
UK	0.25560	0.39053	DEFRA
Ireland	0.37990	0.76108	IEA
France	0.06940		IEA

Additionality

The concept of any emissions reductions created by the business being in addition to reductions that would have happened anyway through, for example, a statutory obligation on an energy company to produce clean energy.

Anaerobic digestion

The process by which organic matter is broken down to produce biogas and biofertiliser, in the absence

of oxygen in a sealed, oxygen-free tank called an anaerobic digester.

Market Based carbon factors Carbon factors that reflect the source of the energy being purchased from the energy grid. Renewable energy supported by a Renewable Energy Guarantee of Origin will have a low or zero factor, energy that is not renewable will have a 'brown' energy or residual factor applied that does not reflect the impact of renewable power being supplied to the grid.

Net Positive

Having a net beneficial impact on the environment or society by reducing negative impacts to less than zero.

Scope 1 emissions Direct emissions from reporting company-owned or controlled sources.

Scope 2 emissions Indirect emissions from the generation of purchased energy.

Scope 3 emissions

Indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.

Resource Use Carbon Data and Waste and Energy Management DataDataand Targets

Gas kgCO2e/kWh
UK	0.18385		DEFRA
Ireland	0.18385		DEFRA
France	0.18385		DEFRA
Diesel kgCO2e/kWh
UK	0.24462		DEFRA
Ireland	0.24462		DEFRA
France	0.24462		DEFRA

DEFRA carbon factors Carbon factors published annually by the UK Government to standardise the calculation and reporting of green house gas emissions generated in the UK.

GHG emissions Greenhouse Gas emissions Emissions of those gases that contribute to the greenhouse effect.

Net Zero Carbon

Achieving an overall balance between emissions produced and emissions taken out of the atmosphere.

Offsetting

Compensating for emissions or impacts flowing directly from business operations by enabling emissions or impacts to be

Task Force for Climate Related Financial Disclosures (TCFD Voluntary climate-related financial disclosures developed by the Financial Stability Board.

Transitional risk

Business risk posed by regulatory and policy changes implemented to tackle climate change.

DataeconomicSocio-DataWater

District Cooling kgCO2e/kWh
Westquay Shopping Centre	0.076		Engie
District Heating kgCO2e/kWh
Westquay Shopping Centre	0.191		Engie
Cergy 3	0.166		Regional Govt
	figures
Les 3 Fontaines	0.166		Regional Govt
	figures
Italie 2	0.172		Regional Govt
	figures
Waste kgCO2e/tonne
Recycling	21.354		DEFRA
Energy Recovery	21.354		DEFRA
Landfill	99.759		DEFRA
Composting	10.204		DEFRA
Water kgCO2e/m3
Municipal Water Supply	0.344		DEFRA

IEA carbon factors

Carbon factors published annually by the International Energy Agency to standardise the calculation and reporting of green house gas emissions across the globe.

Insetting

Compensating for emissions or impacts flowing directly from business operations by enabling emissions or impacts to be reduced from activities within the corporate value chain.

Location Based carbon factors

Carbon factors that reflect the mix of renewable and non- renewable power being supplied to the national energy grid.

reduced from activities beyond the corporate value chain.

Operational control basis of reporting

Reporting of 100% of emissions for all assets over which have management control.

Phase one Net Positive portfolio All real assets in which we

have a direct equity holding and operational control.

Physical risk

Business risk posed by the physical affects of climate change, for example high temperatures, flooding, storm damage and fires.

Regulated energy Energy used to light, heat or cool a building.

Unregulated energy	Other
Energy used for all activities
other than lighting, heating
or cooling a building.
UN SDGs
United Nations Sustainable
Development Goals. 17 goals
designed to support the delivery of a
sustainable world by ending poverty
and other deprivations through
strategies that improve health and
education, reduce inequality, and
spur economic growth - all while
tackling climate change and working
to preserve our oceans and forests.
Zero regulated carbon
Carbon emissions from the lighting,
heating and cooling of a building
have been reduced to zero.

SUSTAINABILITY REPORT 2019: OUR DATA - GHG EMISSIONS

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Hammerson

If you have any questions about our sustainability strategy or the information contained within this document please contact the Hammerson Sustainability Team at:

sustainability@

hammerson.com