UBM Development : Green Finance Framework

UBM Development AG April 2023

Green Finance Framework

Contents

4 1. UBM's Sustainability Strategy

5 1.1. Introduction

6 1.2. Ratings

7 1.3. Our contribution to the Sustainable Development Goals

8 2. Green Finance Framework

10 2.1. Use of Proceeds

11 2.2. Process for Project Evaluation and Selection

12 2.3. Management of Proceeds

13 2.4. Reporting

14 2.5. External Review

Timber Factory, Munich.

Munich's first timber commercial campus.

A shared forum for managers, artists and artisans.

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U B M ' S S U S T A I N A B I L I T Y S T R A T E G Y

1.1. Introduction

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U B M ' S S U S TA I N A B I L I T Y S T R AT E G Y

Timber Pioneer, Frankfurt. Frankfurt's first ever timber hybrid office building.

15,000 square metres of rentable space in the booming Europaviertel.

green. smart. and more. That summarises the strategy of UBM Development AG ("UBM" or "UBM Group") in four words. Explained in brief. Because anyone who plans for the future must develop buildings that are sustainable, intelligent and aesthetically appealing, where people feel well.

We develop properties for Europe's major cities. In line with our core strategy, the focus is on green building and smart office in metropolises like Vienna, Munich, Frankfurt and Prague. With 150 years of experience, UBM provides a full range of development services - from planning to marketing - from a single source.

UBM aims to become one of the leading timber construction developers in Europe. Our actions today are already focused on smart, low-barrier or barrier-free, flexible living and working to also meet the needs of tomorrow's users. As a real estate developer, we can give the office new meaning as a communication and collaboration platform - the physical workplace then becomes a place for community and corporate culture. As an employer, we also take advantage of these opportunities - for example, by benefitting from the additional innovation potential created by a diverse workforce.

The Covid-19 pandemic has significantly increased the pace of change in this area. Ecological and social sustainability are now the determining factors for our actions. UBM has been a member of the UN Global Compact since 2021, is committed to compliance with the UN Sustainable Development Goals and is an official supporter of the Task Force on Climate-related Financial Disclosures (TCFD).

UBM has anchored the relevance of ESG in its corporate strategy through the focus on green. smart. and more. and is introducing specific accompanying measures. The efficient use of resources is an integral part of ongoing oper- ations, as are social issues and adherence to compliance rules. UBM's flagship projects, green building certifications and the activities evolving from the green. smart. and more. strategy reflect the requirements of the EU and create new opportunities for UBM.

green. stands for measures in support of greening, meaning the redirection of the economy in line with the environ- ment. Our primary focus is on timber construction as well as renewable energies and green building certification.

smart. expresses our commitment to intelligent buildings. With the use of sensors and automation, buildings can be adapted to meet the needs of users and, at the same time, operations can be made more efficient.

and more. means we tell stories with our buildings. This involves aesthetics, well-being and customer experience - a "more" that is perceptible all over.

Our sustainability activities are based on the applicable rules and regulations in the countries where we are active. For example: government programmes in the countries relevant for UBM cover issues like the expansion of renewable energy, efficient energy consumption, subsidy programmes for environmentally friendly behaviour and the strengthening of fundamental and human rights, especially in the supply chain. An additional framework is provided by national and supranational norms and standards, including the UN Global Compact, Sustainable Development Goals (SDGs), the EU Green Deal and the EU Taxonomy. We have implemented - and regularly evaluate and improve - the necessary processes to realise our ESG goals and related meas- ures.

UBM Development AG is listed in the prime market segment of the Vienna Stock Exchange and, as a result, meets the highest transparency standards. That not only means financial transparency but also includes the disclosure of all other aspects of our business model.

Leading worldwide ESG rating agencies have confirmed UBM's strong position on sustainability. Additional information can be found in section 1.2.

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U B M ' S S U S T A I N A B I L I T Y S T R A T E G Y

U B M ' S S U S T A I N A B I L I T Y S T R A T E G Y

1.2. Ratings

CDP1: B for UBM Development

The first rating by the non-profit organization CDP for UBM resulted in a B rating as a reflection of its commitment to the fight against climate change. UBM voluntarily took part in CDP's climate protection data reporting in 2022 and transparently informed its stakeholders of its climate protection strategy and measures to reduce CO2 emissions.

Rating date: 13 December 2022

ISS ESG2: Prime Status for UBM Development

ISS ESG awarded UBM "Prime Status" (level "B-") which makes UBM the most sustainable company in its sector in Germany and Austria.

Rating date: 20 May 2022

EcoVadis3: Platinum for UBM Development

Following gold in the initial assessment last year, UBM Development has now been awarded platinum by EcoVadis, the highest rating awarded by EcoVadis. This puts UBM in the top one percent of all 100,000 companies assessed by EcoVadis worldwide.

Rating date: 17 October 2022

Member of VÖNIX Index4

In 2022, UBM Development became a new member of the Austrian Sustainability Index (VÖNIX) for the years 2022/23. Listing date: 20 June 2022

1.3. Our contribution to the

Sustainable Development Goals

UBM Development AG is committed to the United Nations Sustainable Development Goals (SDGs), which were adopted by all UN members in 2015 as the 2030 Agenda for Sustainable Development. Governments as well as companies are called upon to make a contribution to reaching these goals.

Affordable and clean energy - Ensure access to affordable, reliable, sustainable and modern energy for all.

Focus: Goals 7.2 and 7.3

Decent work and economic growth - Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. Focus: Goals 8.4 and 8.8

Industry, innovation and infrastructure - Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

Focus: Goal 9.1

Sustainable cities and communities - Make cities and human settlements inclusive, safe, resilient and sustainable.

Focus: Goals 11.1 and 11.3

In connection with a materiality analysis and a risk and impact assessment, UBM dealt with the SDGs and the related subgoals in detail and identified the goals where the company can make a direct contribution to the Agenda 2030.

Climate Action -

Take urgent action to combat climate change and its impacts. Focus: Goals 13.1 and 13.2

Life on land - Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

Focus: Goal 15.5

Peace, justice and strong institutions - Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.

Focus: Goal 16.7

1. CDP is considered the worldwide gold standard of environmental reporting with the most comprehensive dataset on the environmental impact, risks and opportunities of corporate and city action.
2. The ESG rating by ISS ESG covers companies' ecological and social performance based on a corporate rating scheme with over 100 selected sector-specific ecological, social and corporate governance criteria.
3. The evaluation for the EcoVadis rating is based on 21 criteria from the four most important sustainability aspects: environment, labour and human rights, ethics and sustainable procurement. UBM's performance exceeded the sector average in all four categories.
4. This sustainability benchmark includes those Austrian companies listed on the Vienna Stock Exchange that are leaders in terms of ecological and social activities and performance.

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G R E E N F I N A N C E F R A M E W O R K

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G R E E N F I N A N C E F R A M E W O R K

Green Finance Framework

In line with UBM Group's commitment to integrate sustainability in its corporate strategy, we have established this Green Finance Framework which enables us to focus even more on projects with a positive environmental impact. When issuing Green Finance Instruments, this Green Finance Framework will apply.

This Green Finance Framework ("Framework") has been developed in alignment with the ICMA Green Bond Principles 2021 ("GBP") 5 and the LMA Green Loan Principles 2023 ("GLP") 6. These voluntary process guidelines are developed in multi-stakeholder processes involving issuers, investors, financial institutions and NGOs, with a view to promoting the development and integrity of Green Finance Instru- ments.

The Framework is applicable for issuance of Green Finance Instruments including Green Bonds, Green Loans and Green Schuldscheindarlehen where net proceeds will be exclusively applied to finance and/or refinance green projects with clear environmental benefits.

UBM's Green Finance Framework is aligned with the four recommended components of the GBP and the GLP:

• Use of Proceeds
• Process for Project Evaluation and Selection
• Management of Proceeds and
• Reporting

As the green finance market continues to evolve, the Framework may be subsequently revised or updated to remain consistent with shifting market expectations, best market practices and the regulatory landscape.

Furthermore, the Framework is reviewed by an external impartial firm, ISS ESG, that has provided the Second Party Opinion to confirm the alignment of UBM's Green Finance Framework with the GBPs and GLPs. The Framework together with the second party opinion is available on UBM Group's website 7.

Timber Peak, Mainz. Mainz's first timber hybrid high-rise.

Modern, prizewinning architecture in a prime waterside location.

1. ICMA Green Bond Principles June 2021 (with June 2022 Appendix1) https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/green-bond-principles-gbp/
2. LMA Green Loan Principles February 2023 https://www.lsta.org/content/green-loan-principles/
3. https://www.ubm-development.com/esg/

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