PSP Swiss Property : Rapport de durabilité 2021 (extrait du rapport annuel 2021, version anglaise)

169

169 Sustainability report

170 Sustainability report

173 Sustainability in

our business strategy

176 Portfolio

176 Reduction in CO2 emissions and conservation of resources

1. Focus Issue: District heating and lake water energy networks
2. Flexibility of use
3. Local development

192 Tenants

192 Operational efficiency

1. Service orientation and wellbeing of tenants
2. Focus Issue: Optimised operations during the pandemic?

200 Employees

202 Corporate culture

204 Focus Issue: Equal opportunity and diversity

1. Employee development and retention
2. Employee health and wellbeing

212 Finances and disclosure

212 Financial strength

212 Transparency and reputation

214 Performance measures

214 EPRA Sustainability performance measures - Environment

216 EPRA Sustainability performance measures - Social

1. EPRA Sustainability performance measures - Governance
2. Delimitations and explanations on the performance measures

170 Sustainability report

Sustainability report

We have been reporting on our sustainability efforts in our annual report for more than ten years. Our main concerns include saving resources and reducing CO2 emissions. External benchmarks such as CDP or GRESB show us that we are on the right track.

The sustainability report outlines our activities in the reporting year as well as the priorities for the coming year; it describes the prioritisation and organisation around sustainability topics and provides the corresponding key figures. We have been publishing our performance measures according to the EPRA Sustainability Best Practices Recommendations (sBPR) since 2015.

Our transparency and good performance in the area of sustainability have also been confirmed by external ratings and awards. For instance, we once again received a Score of A- ("Implementing current best practices") in the CDP Climate Change 2021 Survey, along with "Green Star" status under the Global Real Estate Sustainability Benchmark (GRESB), whilst EPRA presented us with the sBPR Gold Award for the sixth time in a row for our disclosures in the area of sustainability.

The reporting year 2021 was dominated by the Coronavirus crisis. This also affected our planned efforts on the sustainability front, which had to be constantly adapted in line with changing circum- stances. As a result, comparisons with performance data from previous years are distorted in many respects - to a greater extent even than in reporting year 2020. This is in particular the case for properties where we, our employees as well as our tenants and business partners have been constrained by restrictions due to the Corona­ virus, such as restaurant closures or home office working requirements. The comments and comparisons provided below must be considered against this backdrop.

EPRA sBPR Gold-Award

CDP-Score: A-

GRESB Green Star

Sustainability report

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Important activities in the reporting year and focuses for 2022

Portfolio

The CO2 reduction path to 2050 set at the end of 2020 and the CO2 reduction target for 2035 were put on a firm footing inside the organisation within various communications and by being incorporated into tools. This strategy is depicted in our internal

Sustainability Guidelines for New Buildings and Renovations, which were overhauled and implemented during the reporting year. This included the placing of greater emphasis on aspects such as reusage and recycling. The aim for 2022 is to raise employees' awareness of the circular econo­ my even further. There will also be a focus on "em- bedded" CO2 emissions for new construction and renovation work, which are currently not incorporated into the CO2 reduction path ("Scope 3").

Major efforts were made during the reporting year in order to exploit the potential for connect­ ing to district heating and creating inner-cityenergy networks that use lake water. The challenges in this area will be considered in greater detail in the Focus Issue "District heating and lake water energy networks" on page 183. In Zurich we have successfully concluded an agreement with the supplier concerning the connection of the entire Hürlimann site to a lake water network by 2026. We intend to continue with these efforts also throughout 2022.

Due to the various effects of the pandemic, the portfolio's specific CO2 emissions in 2021 increased compared to the previous year by 2.9 %. More detailed explanations on energy consumption and CO2 emissions can be found on pages 181-182.

During the reporting year three new photovoltaic installations with projected annual production of 235 000 kWh were installed and placed into service in Zurich. Almost 100 % of the renewable electricity generated can be used for common area electricity, thereby benefiting our tenants. The pipeline is being continuously examined and adjusted.

A pilot project in the area of environmental design focusing specifically on the improvement of biodiversity has been planned for our office at Seestrasse 353 in Zurich. It is set to be implemented in 2022. It is envisaged that the results of this project will be used as a template for additional environmental design work within the port- folio. Our goal in 2022 is to put the potential for maximum greening of suitable spaces on a more systematic footing. The long-term goal is to contribute to improving biodiversity and countering undesired heat islands at inner-city locations.

Tenants

As a result of the continuation of the pandemic into 2021, financial issues were more of an issue for many tenants than ecological issues, such as for instance the adaptation of rental spaces, compliance with hygiene requirements and personal issues. Nevertheless, the assessment in our tenant questionnaire conducted at the end of 2020 shows that the issue of sustainability is also extremely important for tenants. We have set our priorities in terms of our next steps accordingly. For instance, we plan to issue a booklet in 2022, which will aim to support our tenants in better incorporating sustainability aspects into tenant fit-out work.

As a result of measures adopted in relation to the pandemic, like-for-like energy consumption in 2021 increased by 7.9 % compared to the previous year. The interplay between the various influences is discussed in the Focus Issue "Optimised operations during the pandemic?" on page 196. Especially following this period marked by the massive under-occupancy of offices and "pandemic opera- tions", it will be essential to move back towards optimised standard operation. As a result, optimising our operations needs to be established more systematically as an ongoing task, amongst other things by providing increased training in this area. The aim is to strike a good balance between energy efficiency goals and satisfying ten- ants' demands for comfort and hygiene.

172 Sustainability report

A green lease addendum was signed with a major tenant in 2021 as a pilot agreement. This is set to be followed by further addenda with this same tenant as well as with other major tenants in 2022. The aim is to promote building-specific,systematic and constant dialogue with tenants concerning the issue of sustainability, and thus to ensure sustainable building operations.

Employees

The action taken in relation to health issues was heavily affected by pandemic-relatedrequire- ments. Also during this reporting year, we have done a lot to support employees, to maintain a positive spirit and to make working frome home as comfortable for them as possible. Thanks to initiatives such as Bike to Work and the opportunity to draw up a personalised fitness programme, a focus was also placed on enhancing the physical health of employees. Efforts will be stepped up in 2022 in the area of operational health man- agement, for example with a greater focus on ergo- nomics and increasing mental health.

In the autumn of 2021 an employee survey was conducted for the second time according to the Great Place to Work® methodology, the results of which were once again very pleasing. We are delighted about having been re-certified as a "Great Place to Work". We shall analyse the results in 2022 more specifically with reference to any need for improvement and take any appropriate action.

A number of improvements were made during the reporting year in the field of IT infrastructure and digitalisation. Thanks to the new structure and the joint Sharepoint platform ("PSP Connect"), information is better pooled between the various departments. Above all Construction and Property Management have been able to liaise more closely. This has also enabled information relating to sustainability and project organisation in this area to be better incorporated into and managed within this structure. We shall pursue further work on this integration in 2022.

Some individual measures in the area of office ecology were implemented in Zurich during the reporting year, focusing on recycling and energy efficiency. However, a number of measures were scaled back due to the requirement to work from home, which applied for 5 months. Processes at the new business location in Basel were optimised from the outset. Further work on implementing proposed improvements will be carried out in 2022.

Finances and disclosure

Ensuring transparency and the provision of appropriate information to investors and other stakeholders is important for us. However, over the last few years pressure for more stringent rules has increased, in particular in the area of sustainabil- ity, in order to avoid greenwashing and to ensure that investors receive standardised, objective in- formation. During 2022 we intend to streamline our existing sustainability guidelines and initiatives with the rules in place in Switzerland as well as throughout the EU, in addition to those set to be introduced over the next few years. We shall analyse where future obligations lie and where any gaps may be apparent - either from a management perspective or simply from a disclosure perspec- tive. This will then provide a basis for the adoption of appropriate initiatives.

Sustainability report

173

Sustainability in

our business strategy

Our core business is the rental of commercial properties in Switzerland. This business model with a long-term focus requires that we assume our responsibility towards people and the environment. Sustainability is therefore an integral part of our business strategy.

Commercial properties can only be sustainable if they are rented out and provide good rental income in the long term. This also presupposes that the tenants are satisfied and that the rental properties meet changing requirements in terms of property and location quality, price and service. Sustainability is therefore an integral part of our business strategy and is based on our values. Our employees, tenants, business partners, investors as well as the public are crucial stakeholder groups for us. Through openness, transparency and regular dialogue, we strive to receive, reflect on and where appropriate implement their concerns for the success of our Company. More about our values and our dialogue with different stakeholders. www.psp.info/values

In 2019 we carried out a materiality analysis, assessing whether the demands of our stakeholders and the effects of our work on the environment and society are reflected appropriately in our business approach. We also considered in which areas we can and must be able to make a meaningful contribution to achieving the UN Sustainable Development Goals (UN SDGs). The analysis resulted in the identification of 12 thematic areas, which we have been able to match up with the most important requirements. We have allocated the 12 thematic areas to the four levels of our business activity. The materiality analysis was revised in 2021, but this has in no way changed the material issues. These still form the basis for defining and setting priorities for our sustainability initiatives. Further information concerning our materiality analysis can be found on our website. www.psp.info/sustainability

		CO2-reduction/		Operational efficiency
		resource conservation
Target 7.2 Target 12.2 Target 13.1
		Flexibility of use	Portfolio	Tenants	Service orientation
Target 8.4	Target 9.1
		Local development			Wellbeing of tenants
Target 11.3/11.4/11.6	Target 15.5
		Financial strength			Corporate culture
			Finances and	Employees	Employee
		Transparency	disclosure
Target 17.16/17.17		development and retention
		Reputation		Employee health and wellbeing

Target 7.3

Target 11.6

Target 13.3

Target 3/3.9

Target 5.1/5.5 Target 10.2

Target 4.3/4.4

Target 16.5	Target 3
Relevant UN SDGs	Relevant UN SDGs