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MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Hammerson plc    HMSO   GB0004065016

HAMMERSON PLC

(HMSO)
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Hammerson : 2019 Sustainability Report

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03/26/2020 | 08:03am EDT

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.

R

O

E

F

V

I

T

N

I

S

O

O

E

P

B

T

R

0

:

N

A

construction

3

C

2

0

and operations

design

biodiversity

carbon

efficient

Low

local

Energy

Supporting

R

2

:

0

E

3

0

S

E

O

N

T

U

P

O

R

S

T

C

I

V

Reuse

I

E

F

Sustainable

then

E

O

No

U R

E

wasterecycling

Supporting

S

procurement

of

local

to

of

materials

landfill

biodiversitymaterials

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

Supporting

design

efficient

and

local

operations

3

0

construction

2

biodiversity

0

:

N

E

W T

A

P

O

T

S

T

E

I

I

R

V

E

F

O

R

employment

wellbeing

pride

enterprise

skills

and

people

to

young

respond

and

Enabling

increase

civic

places

Delivering Supporting

Enhancing

health

that

and

Creating

local

heritage

S

I

V

T

I

O

N

T

P

O

3

E

N

:

0

0

O

2

C

E

-

O

I

C

O

S

F

O

E

M

R I

C

I

M

T C PA

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 sustainability@hammerson.com 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:

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- 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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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:

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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:

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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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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

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tables:

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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:

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- 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:

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- 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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- p.115

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:

p.112

- 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 >

SUSTAINABILITY REPORT 2019: OUR DATA - CARBON AND ENERGY DATA

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 >

SUSTAINABILITY REPORT 2019: OUR DATA - CARBON AND ENERGY DATA

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 DataandResource