Covivio : 2020 ESG Strategy

COVIVIO ESG STRATEGY

2020

Table of contents

Introduction: ESG as a key part of our strategy	p.3
1.	Sustainable buildings	p.10
2.	Well-being of our end-users	p.19
3.	Positive impact on communities	p.29

4. Supporting our strategy: governance, financing and

social initiatives	p.36
Key takeaways	p.48
Appendix	p.51

INTRODUCTION

German Residential

HQE Exploitation

3

A FULLY INTEGRATED REAL ESTATE PLAYER

Full ability to have a positive impact across the whole real estate value chain

A diversified REIT with a €25bn European portfolio

60%	24%	15%
Offices in
Residential	Hotels in
France, Italy
in Germany	Europe
& Germany

Vertically integrated across the whole value chain

Development	€8 bn pipeline

Asset management €25 bn portfolio (€17 bn Group share)

Property management	Long-term partnerships with tenants
& services	Full flexible & services offer

Paris 7th, Carré Suffren A green building (double certicfiation) offering a wide range of services

Berlin Residential - Kreuzberg district

High-quality residential certified HQE Exploitation

4

OUR PURPOSE, THE BACKBONE OF OUR STRATEGY

BUILD SUSTAINABLE RELATIONSHIPS & WELL-BEING

Supported by 3 strategic pillars…

1

2

3

Major

Development

Client centricity

European Cities

pipeline

Large business districts

Investing in urban regeneration projects

Be a long-termpartner to our clients

with access to public transport

to provide efficient buildings

and provide real estate as a service

integrated in a sustainable city

that match our clients' needs

…each driving improvement on our key ESG challenges:

Participate to the environmental transition

Improve well-beingfor end-users

5

Have a positive impact on communities

FOCUSING ON 9 OF THE UNITED NATIONS' SUSTAINABLE DEVELOPMENT GOALS

6

IDENTIFYING THE MAIN ESG RISKS TO DEFINE OUR POLICY

9 KEY RISKS IDENTIFIED

1 Asset obsolescence & green value

E
2	Managing operations consumptions (energy, waste, etc.)
			3	Environmental safety & regulatory compliance
			4	Digitalization (Smart buildings & Data protection)
S
		5	Integration into the sustainable city
			6	Responsible supply chain
			7	Quality of the relationship with external stakeholders
G			8	Skills / Attractiveness / Diversity
9	Fraud / Corruption / Ethics

Risks from

real estate activity

Risks shared across sectors

7

AN AMBITIOUS ESG APPROACH, WITH CONCRETE ACTIONS…

-1/3 CARBON REDUCTION TARGET

ON ALL SCOPES & ACROSS THE WHOLE VALUE CHAIN

Construction = 45%

of our carbon emissions

Scope 31 = 88%

of our carbon emissions in 2019

Scope 1 and 2 only account for 5% and 7%

Without carbon offsetting

Not taking into account green electricity or carbon sinks in

the carbon trajectory, only operational actions

Approved by

THE STRENGTH OF THE PARTNERSHIP STRATEGY

IN THE DNA OF COVIVIO SINCE THE BEGINNING

We cannot do it on our own

addressing emissions in the whole value chain and on scope 3

requires to work with external stakeholders

Covivio's unique partnership strategy is key in driving ESG improvement with other players

Clients

Cities Suppliers

Only 9 REITs / 3% of EPRA members have set a carbon

reduction target with the SBTi

1 Scope 1: direct emissions

Scope 2: indirect emissions from energy consumptions 8

Scope 3: emissions outside of direct operational control (consumptions on mono-tenant assets and private areas)

… REVOLVING AROUND 3 CORE AXES

1

SUSTAINABLE BUILDINGS

• Reduce carbon emissions…
• …thanks to green efficient buildings
• …exploited in a sustainable way

2

WELL-BEING

OF OUR END-USERS

• Provide buildings matching clients' needs
• Close to public transports
• Offer more services

3

POSITIVE IMPACT ON

COMMUNITIES

• Participate to urban climate resiliency & sustainable cities
• Support local economies
• Support art & culture

SUPPORTED BY AN EFFECTIVE GOVERNANCE & SOCIAL INITIATIVES

✓ Long-term shareholders
and 50% free-float	✓ Developing our employees' skills
		✓ Giving back to the society
✓ Skilled, diverse	✓ Supporting gender diversity
and independent board of directors

9

I.

SUSTAINABLE

BUILDINGS

Objectives

How to reach them

▪ By developing and managing a green portfolio ▪ By exploiting buildings in a sustainable way

Silex 1 - Lyon

HQE Excellent & BREEAM Excellent

10

OUR CARBON REDUCTION TRAJECTORY / -1/3 BY 2030

Covivio carbon trajectory	-1/3 carbon weight/m² over 2010-2030
in line with the <2° trajectory of the 2015 Paris agreement

Average carbon weight per m²

(basis 100 in 2010)

-17%

at end-2019

• Over all European activities
• Taking into account the whole life cycle of our assets

(construction + refurbishment + operation + demolition)

• On all emissions scopes (1, 2 and 3)

-28% ▪ Without taking into account carbon offsetting or green

-34%

electricity

• Compliant with TCFD1 recommendations

Approved by the Science Based Targets initiative since 2018

1 Task Force on Climate-related Financial Disclosures

11

THREE LEVERS TO ACHIEVE OUR TRAJECTORY

Develop & manage a Green portfolio

% value of the portfolio with a green certification, excluding non-strategic assets

37%	84%	Target
100%
2015	2019	by 2025

Offer proximity to public transports		Reduce energy consumption

Target

96%100%

French Offices	Italy Offices 1	Hotels Europe	Germany Residential
2008-2020	2015-2020	2008-2020	2017-2025
			-1%
	-15%		-15%

<5 min to public transport

by 2025

-35%	-33%
-40%	-40%
2019		Target	-47%

12

See appendix page 67 for more details on ESG performance & targets

1 Evolution explained by a change in calculation method

I.

SUSTAINABLE

BUILDINGS

Objectives

How to reach them

▪ By developing and managing a green portfolio ▪ By exploiting buildings in a sustainable way

Eiffage Campus - Velizy

HQE Excellent & BREEAM Excellent

Biodivercity label

13

DEVELOPING AND MANAGING GREEN ASSETS

Selling mature assets to invest in (re)development projects…

#1	Selling mature assets…	…to finance new efficient buildings
€1.6 bn	€1.4 bn
	since 2017	development capex spent or committed since 2017

Owning a highly certified green portfolio

#2

100%

87%

of developments targeting at least "very good" level

Operating assets certified exploitation

thanks to modernization capex & efforts with the tenants

We can't do it on our own: driving improvement in our suppliers

Construction companies, facility managers, etc..

Responsible #3 supply chain policy

since 2010

Responsible procurement charter & CSR clauses

Ensuring the use of ecological material, etc.

Survey questionnaire & annual audit

50 questions covering all ESG topics / 10 suppliers audited per year

14

OFFICES DEVELOPMENTS / DESIGNING INNOVATIVE SUSTAINABLE BUILDINGS

Selected case studies in our committed pipeline (representing €0.5 bn of projects)

N2, Paris 17		So Pop, Paris 17 / Saint-Ouen

• Installation of solar panels
• 1,200 m² urban farm on the roof
• Targeting HQE Exceptional, BREEAM Excellent

• Demolition of a 20,000 m² property. Full audit of all equipment to be reused or recycled with CycleUp
• Targeting HQE Excellent, BREEAM Excellent, R2S

Silex 2, Lyon

• Unique environmental footprint: 1,700 m² of terraces, including one dedicated to urban farming
• Exceptional connectivity in Lyon Part-Dieu,in front of the central train station
• Targeting HQE Excellent, BREEAM Excellent, R2S

See appendix page 53 for more details and other case studies

15

GERMAN RESIDENTIAL / IMPROVING THE PERFORMANCE

~40,000 apartments HQE certified

Increased presence in German Residential	€6.4 bn
through acquisitions & developments	portfolio at end-June 2020

Since 2013

Cleaning & improving the portfolio quality

€1.2 bn of disposals

€270 m of modernization capex

2018	Test pilot for HQE certification in Germany
Aligning French HQE certification with German regulations & practices

2019	First operator to obtain HQE Exploitation certification
for 100% of the German residential portfolio

Berlin - Mitte

16

EXPLOITING BUILDINGS IN A SUSTAINABLE WAY

Our partnership culture is key to drive carbon transition

#1

#2

Improving performance where we have direct control

Scope 1 & 2 (12% of emissions): multi-tenant buildings managed by Covivio

Reducing energy & water consumption and waste generation

Bringing digitalization into the buildings to improve & monitor consumption

We cannot do it on our own

Scope 3 (88% of emissions): private areas & mono-tenant buildings

ESG partnership committees with our tenants to promote best-practices Concerning 102 offices & 270 hotels

Green appendix1 on office lease contracts since 2010, 3 years before it was a legal requirement

21BUILDINGS EQUIPPED WITH SENSORS

TO IMPROVE & MONITOR ENERGY CONSUMPTION

• 100% of "direct control" perimeter is equipped
• 100% of new developments equipped since 2010
• Test pilot in Italy and Germany

17

1 In France. Memorandum of understanding in Italy. Excluding German office portfolio, acquired in 2020

PARTNERSHIP STRATEGY / CASE STUDY WITH ACCOR

Long-term partnership with Accor since 2005 through triple-net leases

Encouraging Green assets	93%
of Covivio Accor portfolio
through hotel specific programs
obtained Planet 21 recognition

Dedicated ESG partnership committees	76%
to promote best practices & improve data collection	of hotel consumptions
Pullmann Hotel - Roissy
Energy, water & waste management	data collected
Planet 21 certified with GOLD level
		HQE Construction Very Good level

18

Wellio - Paris Gare de Lyon

BREEAM Good

Ongoing FITWELL certification

II.

WELL-BEING OF OUR END-USERS

Our ambitions

How to reach them

• Be closer to the end-user
• Well-beingcertifications
• Accessibility
• Services
• Digitalization

19

WE STAND BY OUR CLIENTS AS THEIR NEEDS EVOLVE TOWARDS MORE SERVICES & WELL-BEING

2001-2007	2008-2018	2018-2020		TOMORROW

		Developer of
Large corporate				Initiation of our		Real estate
		modern assets for
sale & leasebacks				service strategy		as a Service
		large corporates

Wellio Gobelins, Paris 5th

20

SERVICES & WELL-BEING / TARGETS

Generate well-being

100%

#1 of our new office developments projects

with a well-being certification

Offer more services

100%

#2 of core office & residential buildings with a wide range of services by 2025

21

German Residential - Hamburg

Tenants event to inform on energy modernization works

II.

WELL-BEING OF OUR END-USERS

Our ambitions

How to reach them

• Be closer to the end-user
• Well-beingcertifications
• Accessibility
• Services
• Digitalization

22

MEASURING OUR CUSTOMERS' SATISFACTION

CLIENT SATISFACTION SURVEY IN 2019

WITH 1,300 END-USERS INTERVIEWED IN 12 BUILDINGS

ACCESSIBILITYSERVICES

7.8		ACTION PLANS
			CO-DEFINED
10
	WITH
SATISFACTION	OUR TENANTS
	RATE

SECURITY		COMFORT

23

DEPLOYING WELL-BEING IN OUR PORTFOLIO

Target 100%

of our new office projects

with a well-being certification

PARIS ART&CO

Experimental approach

with different tenants

Feedbacks

from our stakeholders

Define Group policy

PARIS JEAN GOUJON

Foster

innovations

to improve health at work

Call for projects on indoor air quality

launched in 2020 in partnership with EDF

68 projects received

Final selection end-November 2020

1st trials on site

One system tested on the Meininger Hotel in Paris 12th

24

A WIDE RANGE OF SERVICES OFFER TO IMPLEMENT ON OUR PORTFOLIO

TARGET	ALL INCLUSIVE
100%	OFFER
COLLABORATIVE /
OF OFFICES WITH	WELLNESS SPACES
SERVICES
COMPONENT
IN 2025	FOOD FACILITIES

PHYSICAL CONCIERGE

SERVICES

DIGITAL CONCIERGE

SERVICES

THAÏS - LEVALLOIS		DUGUESCLIN - LYON		RIVERSIDE - TOULOUSE		CARRE SUFFREN - PARIS		ART&CO - PARIS

25

96% OF OUR BUILDINGS ARE CLOSE TO PUBLIC TRANSPORTS1

CLOSE PROXIMITY

LESS THAN 500 M TO

PUBLIC TRANSPORT

96%

ACCESSIBLE

BETWEEN 500 M 2.7%

AND 1 KM

Focus on France Offices

61%

>2 rail-transport access (subway, tramway, RER)

38%

>1 rail-transport access

1%

Bus only

26

1 On core assets

DIGITALIZATION IN OFFICES / "MON BUILDING" APP

AN APP & WEB PLATFORM FOR OUR OFFICE CLIENTS

(flex-offices and traditional leases)

FEATURES

AMBITIONS

DEPLOYMENT

• COMMUNITY & COMMUNICATION
• SMART BOOKING / Meeting rooms, co-working space, with direct payment
• CONCIERGE & MARKETPLACE / For more services
• DOCUMENT MANAGEMENT / Contracts, invoices, building information
• E-TICKETING
• PRINTING
• OFFER AN EASY & DIGITAL CLIENT JOURNEY
• COLLECT DATA TO SET UP PERFORMANCE INDICATORS
• DIRECT FOLLOW UP AND MONITORING IN OUR SYSTEMS
• IMPROVE CLIENT SATISFACTION
• EARLY 2020 / Delivery on 5 Wellio sites
• 2022 / All service / Core Office Buildings equipped in France, Italy and Germany

27

DIGITALIZATION IN RESIDENTIAL / COVIVIO#HOME APP

COVIVIO#HOME,

An app for our residential clients…

3 MAIN OBJECTIVES

FEATURES

DIGITAL AS A LEVER

COMMUNICATION / Direct link

with Covivio

E-TICKETING / Report and follow-up requests

DOCUMENT MANAGEMENT / Contracts, invoices

ACCESS / 24/24 and 7/7 to fit with our clients' schedule

FREE / available on app-stores

REAL TIME FOLLOW-UP EASIER CLIENT JOURNEY

QUALITY

EFFICIENCY

DATA

CLIENT SERVICE / Focus less on day- to-day, more on clients' expectations

FASTER RESPONSE TIME

TRANSPARENCY

LESS CALL & EMAILS

IMMEDIATE RECORD ON OUR IT SYSTEM / Maintenance orders, impacts on budget

MAINTENANCE / better knowledge of the portfolio

KPI ON CLIENT SERVICE / Response time, number of requests

>5,000 users since launch in June 2019	28

Milan Symbiosis - Vitae projects

Targeting LEED Platinum Biodiversity label WELL Gold level

III.

POSITIVE IMPACT ON COMMUNITIES

Objectives

How to reach them

• Reshaping cities & protecting biodiversity
• Supporting local economies
• Supporting Art in Europe

29

HAVING A POSITIVE IMPACT ON COMMUNITIES / MAIN GOALS

1

2

3

Urban regeneration

Turning former industrial space into attractive and appealing districts and protecting biodiversity

Supporting local economies

By developing new buildings, attracting blue-chip tenants	Rueil Vinci: today, an aging asset. Tomorrow, an urban campus integrated in the city
and leasing or operating hotels

Culture & art

Financing creativity in Europe

30

III.

POSITIVE IMPACT

ON COMMUNITIES

Objectives

How to reach them

▪ Reshaping cities & protecting biodiversity ▪ Supporting local economies

▪ Financing creation in Europe

Milan - The Sign

Targeting LEED Platinum and Biodiversity label

31

URBAN REGENERATION / RESHAPING CITIES & PROTECTING BIODIVERSITY

1. Development process
2. • Impact studies & co-design with municipalities
3. Asset management strategy
4. • Regenerating former industrialized districts
   • Conversion of obsolete offices into residential
5. Biodiversity: 230,000 m² certified
6. • Developing buildings aiming for a biodiversity label

Euromed Center / 125,000 m²

Partnership with public authorities in a major urban development

• 2015-2017:Development of a new business district in the center of Marseille
• • 4 office buildings, 1 hotel & proximity retail shops on the ground-floor1
• Success of the district, 100% occupied today

We continue to participate to the reshaping of cities

	Paris 17th and St-Ouen		Bordeaux Lac		Milan Symbiosis
	N2 & So Pop projects / 47,000 m²		Residential project / ~46,000 m²		Symbiosis project / 125,000 m²
	Part of urban regeneration projects to		Transforming obsolete offices into		Transforming a former industrial area
	promote green neighboorhoods		residential in a green district		into a new green business district

Berlin Alexanderplatz

Alexanderplatz project / 60,000 m² Revitalizing an aging area into a new urban dynamic quarter

32

1 The project is owned at 50% with Predica. 2 offices buildings have been sold to occupiers

SUPPORTING LOCAL ECONOMIES ACROSS EUROPE

In 2019

900

direct jobs supported

7,100

indirect jobs supported (suppliers)

3,200	3,900
jobs supported through	jobs supported through public
households' consumption	administration expenses

15,100 jobs supported

+34,800 employees in our Hotels

Paris 17th So Pop

Signature of the "Charte Entreprise - Territoire de la Plaine Commune" in December 2019

• Hiring local job-seekers
• Contracting with local suppliers
• Using eco-friendly material and re-using materials from demolition

33

FINANCING ART IN EUROPE

"1 building, 1 artwork" program since 2017, with 10 buildings concerned so far

Wellio

Paris 8th

Tangle Two

Flip Sellin, Berlin

Silex 1 Lyon

Blue Cumulus

SOFTlab, New York

Euromed

Marseille

Evasion

Astro, Paris

Alexanderplatz, Berlin

A-fence,

240 m street art wall, one of the largest projects in Berlin

34

COVIVIO 3 CORE ESG AXES / KEY TAKEAWAYS

Transforming assets & neighborhoods into sustainable places Acting across the value chain

1

SUSTAINABLE BUILDINGS

• Target -1/3 carbon emissions by 2030
• Building a pan-European green portfolio
• Driving improvements with our tenants & suppliers through the partnership strategy

2	WELL-BEING OF OUR END-		3	POSITIVE IMPACT ON
	USERS			COMMUNITIES
	▪ Top accessibility of our sites			▪ Working with and for cities and
				local residents

• Full & tailor-made services offer

▪ Protecting biodiversity

• Digitalization of our assets

▪ Financing creation and art

Development

Asset management

Property management

& Real Estate as a service

35

IV.

SUPPORTING

OUR STRATEGY

Effective & exemplary Governance

Using Green financing

Supporting training & diversity in our teams

Implementing Social initiatives beyond the company

Berlin Residential development

36

ENSURING EXEMPLARY GOVERNANCE

SUPPORT OF LONG-TERM SHAREHOLDERS

51%	27%
Free float	Delfin
(since 2007)

€6.6 bn market

capitalization1

7%	8%	8%
Covéa	ACM	Crédit Agricole
(since 2003)	(since 2003)	Assurances
		(since 2005)

AND BEST PRACTICES BOARD COMPOSITION

Separate chairman & CEO

40% women members (vs. 10% in 2011)

60% independent members (vs. 40% in 2011)

Strong experience with diversity of skills

ESG incentives in management remuneration

37

1 At 16/11/2020

EFFECTIVE GOVERNANCE TAILORED TO THE STRATEGY

Diversity of skills in the board		Processes ensuring Transparency & Ethical behaviours

% of member with a given skill (out of 15)

Real estate

Bank / Finance

Environment / CSR

Strategy and M&A

Experience of listed companies

International experience

		Audit committee
87%
		6 members
		3 meetings per year
73%
47%		Remuneration & Nomination Committee
			4 members
	100%	2 meetings per year
87%		Strategic Investment Committee
			6 members
67%		Meeting for the approval of investments > €30m
		5 meetings in 2019	38
See appendix page 72 & 75 for more details

BEST-PRACTICES FOR TOP MANAGEMENT REMUNERATION

A remuneration plan aligned with stakeholders' interests and ESG challenges

	Fixed remuneration		Variable remuneration			Long-term incentive
	▪ c.1/3 of total target		▪ Target of 100% of fixed remuneration			▪ Target of 100%-133% of fixed
	remuneration					remuneration
			▪ Based on achievement of operational			▪ 50% based on Total Share Return
			and strategic targets			Covivio vs. EPRA ex. UK criteria
			(incl. ESG criteria)
						▪ 30% based on economic criteria
						(NAV/sh & EPRA earnings/sh
			▪ Financial targets based on EPRA			vs. EPRA ex. UK)
			Earnings & NAV
					▪ 20% based on ESG targets
						% of green portfolio by 2022
						Employee Commitment Survey
						Gender equality

Largely approved by shareholders: 93% approval on average on Say on Pay votes
Fully compliant with the Afep-Medef code	39

IV.

SUPPORTING

OUR STRATEGY

Effective & exemplary Governance

Using Green financing

Supporting training & diversity in our teams

Implementing Social initiatives beyond the company

Berlin Residential development

40

FINANCING A SUSTAINABLE GROWTH

GREEN BONDS

€1 billion

14% of net debt

2 issuances

To fund Green offices in France & Italy

2019 issuance

• €500 m at 1.125% and 12-year maturity
• 4 development projects in the main transport hubs of leading European cities
• IRO in Chatillon (Greater Paris), Jean Goujon in Paris 8th, Silex² in Lyon CBD, The Sign in Milan

The Sign, Milan

2016 issuance

• €500 m at 1.875% and 10-year maturity
• 12 assets / 185,000 m² developed in France since 2012
• 100% occupancy
• 20% decrease in primary energy intensity between 2017 & 2019

IRO, Greater Paris

41

IV.

SUPPORTING

OUR STRATEGY

Effective & exemplary Governance

Using Green financing

Supporting training & diversity in our teams

Implementing Social initiatives beyond the company

Berlin Residential development

42

SUPPORTING OUR TEAMS TO DELIVER BEST IN-CLASS PROJECTS

Campus & training week		Development programs

Supporting gender

diversity

• Various teams sharing their experience with each other
• E-learningmodules developed internally

• Graduate program launched in 2020 to create a European talent pool
• Leadership program

45% of the current executive committee members have been part of such programs

▪ 50%/50% of men and women in the
	Group
▪	36% women in the Executive Committee
▪	Ex-Aequo mentorship program

• European Business Game

▪ Gender equality index: 97/100

Employee training: 4% of the payroll spent on training in 2019

88% employee satisfaction1	2nd lowest turnover
6.2% turnover in 2019	among 20 real estate listed companies2

1 Survey by Kantar on Employees in France 43 2 Morgan Stanley ESG study (23/10/2020)

SUPPORTING WOMEN DEVELOPMENT & LEADERSHIP / EX-AEQUO PROGRAM

A mentorship program for 19 duos mentor / mentee

Mentors only from the top management

Mentees able to freely speak and establish a

trustworthy relationship with their mentors

44

IV.

SUPPORTING

OUR STRATEGY

Effective & exemplary Governance

Using Green financing

Supporting training & diversity in our teams

Implementing Social initiatives beyond the company

Berlin Residential development

45

CONTRIBUTING TO EQUAL OPPORTUNITIES / ARTICLE 1

Mentorship program with Covivio's employees in

partnership with Article 1 organization

Mentees are students from disadvantaged backgrounds

and benefit from a first-look into the corporate world

46

CONTRIBUTING TO ENVIRONMENT & SOCIAL PROJECTS / COVIVIO FOUNDATION

Foundation created in 2020 and linked to Covivio's purpose:

Build sustainable relationships & well-being

Based on two pillars

1- Support equal opportunities projects

2- Support environment-friendlyprojects

€500,000 budget

1st project approved to support financially Article 1 association

47

KEY TAKEWAYS

Berlin Residential development

48

KEY TAKEAWAYS

1. 3 ESG AXES EMBEDDED IN COVIVIO'S PURPOSE AND STRATEGIC PILLARS

2. A DIFFERENTIATING APPROACH

Due to its ambition: -1/3 carbon reduction by 2030 on all scopes without offsetting

Due to the partnership strategy: driving improvement with tenants & suppliers

3. USING LEVERS ACROSS THE WHOLE REAL ESTATE VALUE CHAIN

From development to property management

49

ESG RATINGS / COVIVIO RANKED AMONG THE WORLD LEADERS

4 AGENCIES HAVE UPDATED THEIR RATING IN Q3 2020

B-

Best possible rating

Best possible rating

Prime status

Sector leader1	Top 50 worldwide	Top 3% worldwide		Among the sector
		leaders
Ranked 5th worldwide	#35 out of 13,107 companies	out of 358 real estate companies
out of 4,823 companies (all sectors)
	See appendix page 66 for more details on ratings		50
	1	#1 out of 86 European Real Estate companies

APPENDIX

Wellio - Paris 5th Gobelins

51

APPENDIX CONTENTS

1. CASE STUDIES
2. ESG RATINGS
3. CARBON TRANSITION TARGETS & ASSET ROTATION
4. BOARD COMPOSITION
5. GOVERNANCE - RISK OVERSIGHT
6. SOLIDARITY EFFORT DURING THE COVID CRISIS

52

CASE STUDIES

53

SYMBIOSIS

A PROJECT COMPRISING

THE 3 AXES OF OUR ESG STRATEGY

Case Study

Overview

Sustainable buildings

Impact on communities

Services & well-being

Symbiosis - Milan

54

SYMBIOSIS OVERVIEW / A SUCCESSFUL URBAN REGENERATION PROJECT

Transformation of a former industrial area into a new and highly technological business district

Former

industrial

district…

… turned
into a
sustainable	125,000 m²
area and tech
business
district

8 buildings
	>€600m
incl. 2	total budget
delivered

School

Offices

18,500 m²

THEY HAVE ALREADY COME TO SYMBIOSIS…

Public square Adriano Olivetti

9,830 m²

Offices

20,500 m²

Art

9,200 m²

Offices

20,500 m²

Offices

16,200 m²

Offices

21,300 m²

	Mixed-use
Offices	10,000 m²

18,800 m²

HQ on 20,500 m²

Main implantation on 9,200 m²

Italian HQ on 7,200 m²	55

SYMBIOSIS / SUSTAINABLE BUILDINGS

1

2

1ST

Highest green certifications

Office areas have achieved Leed Gold and Platinium ratings, prestigious certifications for buildings decreasing carbon emissions to near-zero levels

Green spaces

13,000 m² of public garden areas & terraces, reinstating the original plant life

BUILDINGS DELIVERED IN 2018: A+B (FASTWEB HQ)

43% 20% 100%

reduction in energy	recycled of the total cost
consumption*	of materials

reduction in the use of drinking water for irrigation purpose

56

* Compared to a standard reference modern building (CENED)

SYMBIOSIS / POSITIVE IMPACT ON COMMUNITIES

1	Co-design with all stakeholders
With the city, the Prada Foundation, and local residents (ongoing public

consultation in partnership with Politecnico University)

2	Urban regeneration & placemaking
Transformation of a former industrial district. Creation of an eco-friendly

square and ground-floor retail areas are accessible to neighbors.

	Biodiversity
3
Inclusion of specific plants species to help maintain biodiversity and aimed at
	keeping pollinators in the area

>6,000 m²

of restored green areas with native vegetations

57

SYMBIOSIS / SERVICES & WELL-BEING

1	Accessibility & mobility
Public transports, special bicycle stands for tenants, car park with EV charger

2	WELL certification
Well protocol applied to all new developments

Flexible workspaces, food & beverage spaces, event venues

3	Connectivity
Highly connected buildings attracting high-tech tenants like Fastweb

58

OTHER CASE

STUDIES

Paris 17th / St Ouen - So Pop

59

PARIS 17TH SO POP / CIRCULAR ECONOMY

Overview

Project	Demolition of the former Citroën headquarters to redevelop
into a prime office building

Full audit of all equipment that could be reused or recycled.

Solution The list is uploaded on an online platform (Cycle Up) to be sold and give it a second life

So Pop, Paris 17th / Saint-Ouen

3,000 m² of suspended ceiling will come from the circular economy sector.

Outcome

• benefits In addition, preferential treatment for work and services contracts towards local businesses and hiring of unemployed residents

60

BERLIN ALEXANDERPLATZ / HIGH-LEVEL OF CERTIFICATION AND PARTNERSHIP WITH BERLINERS

Overview

Project

Solution

Outcome &

benefits

Redevelopment project of the entire Alexanderplatz area by the City of Berlin and landowners

Development of a 60,000 m² mixed-usetower (offices, residential, ground-floor retail)

Co-designwith the City of Berlin through the organization of an architectural contest

Berlin Alexanderplatz project

A-fenceart project: integration of the construction site within

Berlin's cultural scene

Well-being& services: users will benefit from a rooftop garden, restaurants, food corners, and a large range of services (kindergartens, fitness, etc.)

Canopy and interior gardens open to the public

A-fence, one of the largest street-art projects in Berlin

61

SILEX² / SMART BUILDING & TAILOR-MADE

Overview

Projects Redevelopment of a former EDF asset in Lyon-Part-Dieu

31,000 m² of prime office areas in the heart of Lyon

Solution

Exceptional connectivity

Outcome &

benefits

Unique environmental footprint: 1,700 m² of terraces,

including one dedicated to urban farming

Tenant's flexibility: long-term leases, flexible workspace, mixed-offer, modular spaces

Well-being: sky-restaurant, fitness center, auditorium

Silex², Lyon

62

PARIS 17TH STREAMBUILDING (N2) / WINNER OF REINVENTING PARIS INTERNATIONAL COMPETITION

Overview

Projects

Solution

Outcome &

benefits

Urban regeneration of the whole district with an objective of neutral carbon balance

15,900 m² of mixed-usespace: offices & flex-offices (Wellio), hotel, retail & event

Co-design with municipalities and startups (Topager, Nu!,

Noctis)

Streambuilding, Paris 17th

Rooftop agriculture and solar panels

Highest environmental certifications: HQE Excellent,

BREEAM Excellent, Effinergie+

Going the extra-milewith rooftop agriculture and a cradle- to-cradle approach

1,200 m² urban farm

Fruits and vegetables produced on the rooftop are distributed locally or used by ground-floor restaurants.

Food waste is used as compost for this urban farm.

63

HOTELS IN EUROPE / COVIVIO DRIVING THE CHANGE

Key initiatives

Target of 66% of our hotels certified by 2020 with

Greener hotels the goal to reduce energy consumption, CO2 emissions, water consumption and food waste

Sustainable

committees with our long-term partners

Environmental

reporting standards

Innovation to drive

the change

Going beyond the legal requirement by setting up

reporting standards on energy & water consumption as well as waste management

Heat pump system in Meininger Hotel Porte de Vincennes.

The system covers 100% of hot water production and re-use the heat from sewage

This system targets a 40% reduction in energy consumption

Meininger Paris Porte de Vincennes

In addition to the heat pump system, the hotel's green rooftop host beehives and partnered with the startup Too Good To Go to reduce food waste by distributing unsold food

64

ESG RATINGS

65

AN AWARDED ESG STRATEGY

Studies & rating agencies

ISS ESG	GRESB	CDP	Vigeo Eiris	Gaïa Rating	Ecovadis	MSCI
2020 Grade: B-	2019 Grade: 80/100	2019 Grade: A-	Corporate Rating	2019 Grade: 90	2019 Grade: 81/100	2020 Grade: AA
Top 3% worldwide			2020 Grade: A1+
out of 358 real estate	Green Star since 2012	2018 Climate A-List	Sector leader: 1/86	In the Gaïa Index since 2013	Gold Level	Among the sector
companies	Europe - Diversified: 2nd/8	Carbon targets SBTi	Europe Rank: 5/1,602	Gaïa Universe: 2nd/230	Top 1% World	leaders
Prime status		approved	Global Rank: 7/4,823
since 2015

Indices

FTSE4Good	DJSI	Euronext Vigeo Eiris	Euronext	STOXX	Ethibel
2019 Grade: 4.4/5	2019 Grade: 68/100	2020 Sector Leader
			Included in the indices	Included in the STOXX Europe	Sustainability Index Europe
Included since 2011	DJSI World Index since 2013	Included since 2013 in the	Euronext CDP Environment	Sustainability, Global ESG Impact,	Included since 2013
Financial Times Stock	DJSI Europe Index since 2016	indexes:	Eurozone & France since its	Governance, Environment, Social,
Exchange SD Index		France 20 / Europe 120 /	beginning	Global Climate Change Leaders
		Eurozone 120 / World 120

66

CARBON TRANSITION TARGETS

& ASSET ROTATION

67

A GREEN PORTFOLIO / OFFICES

France offices

Target 100% by end-20201

Italy offices

Target 80% by end-2022

German offices

Portfolio acquired in 2020

Ongoing review to set targets

84,4%

71,1% 72,8%

61,2%

90,4%

96,5% 100,0%

67,1%

54,0%

31,9%

22,0%

80,0%

72,5% 72,5%

Portfolio certified at 30.4%

(construction)

2015	2016	2017	2018	2019	H1 2020 Target
					2020

Breakdown of certifications

Certified		Certified
construction	21%	operations

38%

Ongoing certification		15%
(development projects)

22%

Double

certification

2015	2016	2017	2018	2019	H1 2020 Target
					2022

Breakdown of certifications

Certified	Certified
construction	operations
		7%
Ongoing certification	52%
		14%
(development projects)

1 Excluding non-core assets core assets (~3% of France offices), 68 essentially comprising potential residential developments

A GREEN PORTFOLIO / HOTELS & RESIDENTIAL

Hotels in Europe

Target 66% by end-2020

German Residential

48,0%

26,8%

66,0%

61,8%

56,8%

51,5%

100%

certified at end-2019

HQE Exploitation

2016	2017	2018	2019	H1 2020	Target
					2020

Breakdown of certifications

Certified construction

5%Certified

Double		2%		operation

certification55%

69

ACHIEVEMENTS / CARBON REDUCTION & ENERGY EFFICIENCY

Activity

French Office

Italy Office

Hotels in

Europe

German

residential

Energy consumption		Carbon emissions
Target		Achievements		Target		Achievements
-40%		-35%		-20%		-45%
over 2008-2020			over 2008-2020		Achieved
-15%		-33%		-50%		-69%
over 2015-2020		Achieved		over 2015-2020		Achieved
-40%		-47%		-40%		-39,5%
over 2008-2020		Achieved		over 2008-2020
			Almost achieved
-15%		-1.3%		-15%		-8.2%
over 2017-2025			over 2017-2025

70

SELLING MATURE ASSETS TO INVEST IN REDEVELOPMENTS

€273 m of disposal agreements on mature office assets in France & Italy in H1 2020

Mature assets developed by Covivio between 2013 and 2017

Successful asset management

-Maintaining high occupancy: >99% -Securinglong-leases with key partners of Covivio: >7 years WALT

Value creation potential fully extracted

90%

value

creation

since delivery of the assets Incl. disposal margin

13%

margin

on disposal vs end-2019 value

Nanterre - Respiro

11,170 m² / delivered in 2015

		Nancy - Origin
Lyon Villeurbanne - Le Patio		3,600 m² / delivered in 2017
12,755 m² / delivered in 2013

Milan - Cernaia 8,300 m² / delivered

in 2017

71

BOARD COMPOSITION

72

BOARD MEMBERS

Jean Laurent	Léonardo Del Vecchio	Catherina Allonas-Barthe	Romolo Bardin	Jean-Luc Biamonti
Independent Chairman	Vice Chairman	Non Independent Director	Non Independent Director	Independent Director

Sergio Erede

Censor

Christian Delaire	Sigrid Duhamel	Jérôme Grivet	Christophe Kullmann	Alix d'Ocagne
Independent Director	Independent Director	Non Independent Director	CEO - Non Independent Director	Independent Director

Ariberto Fassati

Censor

Sylvie Ouziel	Olivier Piani	Patricia Savin	Catherine Soubie	Laurent Tollié
Independent Director	Independent Director	Independent Director	Independent Director	Non Independent Director

73

SKILLS MATRIX

	Role	Real estate	Bank / Finance	Environment /	Strategy and	Experience of	International
	CSR	M&A	listed companies	experience
LAURENT Jean	Chairman		x	x	x	x	x
DEL VECCHIO Léonardo	Vice-Chairman	x	x		x	x	x
ALLONAS Catherine	Permanent representative of ACM	x	x		x	x
Vie
BARDIN Romolo	Member of the Board	x	x		x	x	x
D'OCAGNE Alix	Independent member	x	x	x	x
BIAMONTI Jean Luc	Independent member	x	x		x	x	x
DUHAMEL Sigrid	Independent member	x		x	x	x	x
GRIVET Jérôme	Permanent representative of Predica	x	x		x	x	x
KULLMANN Christophe	CEO of Covivio	x	x	x	x	x	x
OUZIEL Sylvie	Independent member			x	x	x	x
SAVIN Patricia	Independent member	x		x	x
SOUBIE Catherine	Independent member	x	x		x	x
TOLLIE Laurent	Permanent representative of COVEA	x	x		x	x
Coopérations
PIANI Olivier	Independent director	x		x	x	x	x
DELAIRE Christian	Independent director	x	x		x	x	x
EREDE Sergio	Censor		x		x	x	x
FASSATI Ariberto	Censor		x		x	x	x

74

GOVERNANCE

RISK OVERSIGHT

75

BOARD GOVERNANCE - RISK OVERSIGHT

Review of internal audit activities

Review of internal control	Review of compliance and
GDPR
		Operational
		management
AUDIT		▪	Functions
	▪	Income
COMMITTEE
	▪	Countries

Risk management & validation of	Approval of the annual internal
the risk mapping	audit plan

Board of Directors

Audit Committee

Management team

Management committee

Risk management

Internal audit

• Internal control
• Assessment of stress case scenarios
• Ethics, compliance, CNIL
• Management control
• Accounting
• HR, Legal, etc

Appointment of a new risk manager in charge of the assessment of stress case scenarios

1st line of control		2nd line of control		3rd line of control

76

RISK MAPPING

CONTEXT

• An annual risk mapping in compliance with the French Financial Authority's recommendations
• An increasing number of risks and higher complexity of the environment
• Impact of the Covid-19 pandemic leading to:
• • new potential risks and
  • an economic crisis and occurrence of identified risks

METHODOLOGY

• 20 people interviewed within the group from several departements and activities
• Risk identification and assessment based on the materiality and occurrence probability
• Identification of around 20 risks considered as top priority
• Analysis shared with the Executive Commmittee

ACTION PLANS

• Action plans defined for the 6 main risks for the group

77

SOLIDARITY EFFORT DURING

THE COVID CRISIS

78

COVIVIO CONTRIBUTES TO THE SOLIDARITY EFFORT DURING THE CRISIS

By supporting SMEs in difficulty, finding the best solutions on a case-by-case basis, especially through monthly payments and rent postponements

By putting several hotels at the disposal of health authorities during the lockdown And by offering 2,000 overnight stays to healthcare staff of Metz, France Hospitals

By providing financial support in Italy for the production of sanitizing gel

By helping vulnerable persons badly hit by the economic crisis through the Covivio Foundation

whose budget is raised to €500,000

1 According to Eurostat definition: businesses with less than €2 m yearly turnover and less than 10	79
employees in sectors impacted by mandatory closure

CONTACT

Paul Arkwright	Hugo Soussan
Tel.: [phone]	Tel.: [phone]
Mobile: [phone]	Mobile: [phone]
[e-mail]	[e-mail]

Paris

30, avenue Kléber 75116 Paris

Tel.: [phone]

www.covivio.eu