Hyprop Investments : ESG

ESG REPORT

Excerpt from the 2022

Integrated Annual Report

Our impact on the world

around us

For further ESG related data, refer to our

ESG Data Pack

Le Parc by Tashas

Hyde Park Corner, South Africa

Integrated Report 2022 // HYPROP 2

Our environment

Skopje City Mall

North Macedonia, Eastern Europe

Integrated Report 2022 // HYPROP 3

Our

environment

Consumer preferences and habits continue to evolve, accelerated in recent years by the growth of e-commerce and Covid-19, but most importantly and increasingly by climate change. There is growing awareness that climate change presents the greatest challenge of our time - and it is reshaping much of what we do, and how we do it.

Rosebank Mall

Johannesburg, South Africa

Integrated Report 2022 // HYPROP 4

By their very nature, our centres are places where people connect both physically and emotionally. Apart from our own ethical and commercial commitment to reducing greenhouse gases, we recognise that our centres must reflect the prevailing consensus of our stakeholders too - and so as our centres adapt to changing consumer habits and retail expectations, they are also being recalibrated for a sustainable future.

Buildings typically have long life spans, and much of the stock existing today will still be in use in 2050. Retrofitting existing stock is essential if we are to transition to a low-emission future.

We have been reporting on the upgrades made to our centres for some time, which are made to improve tenant and customer experiences. We simultaneously manage the costs of utilities and centre operating costs while investing in the changes needed to reduce their environmental impact and build the necessary resilience to withstand future shocks, such as high tariff increases and prolonged droughts.

Hyprop's Scope 1, 2 and 3 emissions are determined using the UK Department of Environment, Food and Rural Affairs (DEFRA) emission factors and the revised reporting standard of the Greenhouse Gas Protocol, the accepted international tool for government and business leaders to understand, quantify and manage greenhouse gas emissions.

Our direct sphere of impact is around Scope 1 (diesel consumed to generate electricity and fugitive air conditioning gas leaks) and Scope 2 (electricity consumed by the centre) emissions, which account for less than 20% of the total environmental impact from the centres. This means our partnership with tenants and customers is critical to reduce Scope 3 emissions, of which 87% is generated by tenants consuming electricity.

We are working on updating Tenant Criteria Documents which focus on energy, water and waste, and are working with tenants on "house rules" to ensure we all reduce our carbon and water footprint in line with Hyprop's strategy.

For our part, we have an active strategy and programme to make our centres more environmentally sustainable. We are guided by global targets to reduce emissions, and are doing so across a range of projects, from building management, our use of electricity and solar power, to water and waste.

We have completed an in-depth double materiality analysis on the impact of all ESG factors on our business for our SA portfolio and will expand this to include our EE portfolio.

Canal Walk Shopping Centre

Cape Town, South Africa

Integrated Report 2022 // HYPROP 5