GMP Property SOCIMI S A : ESG Report 2022

REPORT

ESG

2022

INDEX

1	SUSTAINABLE STRATEGY	3
2	MATERIALITY ANALYSIS	17
3	CUSTOMER AND USER ENGAGEMENT	21
4	EMPLOYEE ENGAGEMENT	26
5	ENVIRONMENTAL ENGAGEMENT	32
6	COMMUNITY ENGAGEMENT	41
7	ABOUT THIS REPORT	45

This document is a summarised version of the Company's Annual Report, which has been prepared in accordance with GRI and EPRA reporting standards.

You can consult the full report with the GRI and

EPRA indicators at the following link.

ARQBÓREA

1. SUSTAINABLE STRATEGY

Innovation, as a key strategic value aimed at identifying and anticipating market trends, is one of the pillars of Gmp's differential positioning, coupled with high levels of customer satisfaction and loyalty. Innovation is fundamental part of Company culture, and it is integrated in all its processes and decisions, including its commitment to sustainability.

The close relationship between sustainability management and innovation is manifested through its Carbon Neutrality Plan, which consists of implementing an action plan in Gmp's buildings from 2022 to 2026 to achieve a reduction of carbon emissions by 230 TnCO2/year (487 TnCO2/year Location Based) and 3,315 MW/h/year.

In 2019, as part of its commitment to integrate sustainability into its financing strategy, Gmp established a sustainable financing framework that sets out clear and transparent criteria for investing in environmentally sustainable projects and supporting the transition to a low-carbon economy.

In the context of the sustainable financing framework, Gmp closed the following green finance operations in the last two years:

In early 2020, the majority tranche, 74% of the syndicated loan renegotiated at the end of 2019 was converted to a green loan, reaffirming Gmp's strategic commitment to sustainability.

In November 2020, Gmp and the European Investment Bank (EIB) reached an agreement whereby the EU Bank provided Gmp with a EUR 28 million loan to finance the development of Net Zero Energy Buildings such as the ARQBÓREA building in Las Tablas and rehabilitation works to improve energy efficiency at the iconic Castellana 81 building.

In August 2021, the novation of the green loan with BBVA was signed, extending its maturity to 7 years, until 2028.

REPORT

ESG

2022

1

Sustainable Strategy

2

Materiality Analysis

3

Customer and user Engagement

4

Employee Engagement

5

Environmental Engagement

6

Community Engagement

7

About this Report

p.3

CORPORATE GOVERNANCE

As already mentioned in chapter 2.6 of this report, the Gmp's strategy is supported by a robust governan-	creation of sustainable value for the Company, its workers and customers. Moreover, Gmp maintains a
ce system that is inspired and built on its commitment to ethical principles, transparency and leadership	firm commitment to the Sustainable Development Goals (SDGs) approved by the UN in 2015.
in applying best practices for good governance, structured around the defence of social interests and the

BOARD OF DIRECTORS

Francisco Montoro - Chairman and Chief Executive Officer

Antonio Montoro - Deputy Chairman

Ricardo Montoro - Deputy Chairman

Euro Lily Private Limited (Tracy Lynn Stroh) - Member

Euro Fairview Private Limited (Sebastién Abascal) - Member

Alberto Terol - Independent Member

Juan Fernández-Aceytuno1 - Member

Rafael Nebreda - Secretary - Non-Member

AUDIT, COMPLIANCE AND SUSTAINABILITY COMMITTEE

EXECUTIVE COMMITTEE

APPOINTMENTS AND REMUNERATION COMMITTEE

Alberto Terol - Chairman

Francisco Montoro - Chairman and Chief Executive Officer

Alberto Terol - Chairman

Julio Díaz-Freijo- Member (external)

Antonio Montoro - Deputy Chairman

Sebastién Abascal - Member

Sebastién Abascal - Member

Ricardo Montoro - Deputy Chairman

Marta Montoro - Member (external)

Xabier Barrondo - Business General Manager

José Luis García de la Calle - Corporate General Manager

STEERING COMMITTEE

Xabier Barrondo - General Business Manager

José Luis García de la Calle - Corporate General Manager

Lorenzo Castilla2 - Customer Director

Jorge Calvo - Chief Financial Officer

Silvia Llanes

- Director of ESG and Innovation

Antonio Gil - Head of Legal

Vivianne Sabah - Technical Director

Arantxa Lozano - Head of Human Resources

Diego Valiente - Head of Property Assets

Laura Yuste2 - IT Director

1. Appointment to the Board of Directors on 22nd June 2023 and ratification at the General Shareholders Meeting held the same day.
2. Joined in 2023.

REPORT

ESG

2022

1

Sustainable Strategy

2

Materiality Analysis

3

Customer and user Engagement

4

Employee Engagement

5

Environmental Engagement

6

Community Engagement

The regulatory framework established by Gmp to ensure the proper governance of the Company is set out in the following:

Bylaws: internal regulations governing the Company's operations and its governing bodies, which outline the main characteristics and guidelines of the Shareholders' General meeting and Governing bodies.

Regulations on the General Shareholders' Meeting: guidelines on holding the Shareholders' meeting which guarantee the rights of the shareholders and regulate all aspects to ensure the meeting runs properly.

Regulations on the Board of Directors: establishing the principles of action for the Board of Directors. The Company's Board of Directors comprises three representatives from the Montoro Alemán family, two representatives from the Singapore sovereign wealth fund GIC and one independent director.

7

About this Report

p.4

MEETING PLACE Orense 34

BOARD OF DIRECTORS

In accordance with the Company's Bylaws, the Company is governed and administered by the Board of Directors. The Board Regulations establish that this body has the broadest powers as regards Company management and, except for matters reserved to the General Meeting, is the highest decision-making body of the Company, empowered to do and implement anything to further the Company's mission.

Gmp's Board of Directors comprises six members, three of whom are executive representatives from the Montoro Alemán family, two are proprietary representatives from the Singapore sovereign wealth fund GIC, plus one independent director. The Secretary is appointed by the Board of Directors and is not a member. The average length of service of Gmp's board members is 15 years due to the family nature of the Company and female representation of 14%.

APPOINTMENT AND SELECTION OF THE HIGHEST GOVERNANCE BODY

The Regulations of the Board of Directors state that all efforts will be made to ensure that appointments to the board fall to persons of recognized solvency, competence and experience. Directors shall be appointed by the General Shareholders' Meeting or by the Board pursuant to the provisions set out in Royal Legislative Decree 1/2010, July 2nd, whereby the consolidated text of the Companies Capital Act is approved, and in the Company Bylaws. Board members will hold the position for a period of six years and can be re-appointed one or more times for periods of the same duration.

Although shareholding is the main criterion for the appointment of directors to the board, professional capacity and independence are valued highly. In 2021, for instance Alberto Terol, a professional of recognized prestige in the field of business management and an executive with a long career serving as an independent director and member of various boards of major companies, was appointed to the Board of Directors. In 2022, one member has left the board of his own accord and based on a personal decision. The Company would like to express its gratitude for the outgoing director's dedication and service over the years he has served in this role.

It should be highlighted that the Chief Executive Officer of Gmp's highest governing body has completed postgraduate training in environmental sustainability and has lectured on this specialist field as Associate Professor. This specialisation is reflected in Gmp's strong focus on the ongoing improvement of efficiency and sustainability at its buildings.

In 2022, Gmp's Board met four times, it has 33% representation of foreign directors, 33% aged between 30 and 50 and 66% over 501.

Composition of Gmp's Board of Directors at 31 December 2022

Name	Gender	Board position	Committees	Independent1	Seniority
					(years)
Francisco Montoro	Male	Chairman and Chief	Executive Committee		29
Executive Officer
Antonio Montoro	Male	Deputy Chairman	Executive Committee		29
Ricardo Montoro	Male	Deputy Chairman	Executive Committee		20
Tracy Lynn Stroh	Female	Member			1
			Appointments and
Sebastién Abascal	Male	Member	Remuneration Committee		8
Audit, Compliance and
			Sustainability Committee
			Appointments and
Alberto Terol	Male	Independent	Remuneration Committee	Yes	1
Member	Audit, Compliance and

Sustainability Committee

Juan Fernández-Aceytuno has been appointed Member in 2023.

1Gmp adheres to the recommendations of the CNMV's Code of Good Governance, and the term independent directors refers to those directors not related to the management team or to the controlling core of shareholders which have most influence over the former. Source: https://www.cnmv.es/Portal/Legislacion/COBG/COBGOCodigo.aspx#II21

REPORT

ESG

2022

1

Sustainable Strategy

2

Materiality Analysis

3

Customer and user Engagement

4

Employee Engagement

5

Environmental Engagement

6

Community Engagement

7

About this Report

p.5