2017 GRESB Real Estate Results - Nordics

2017GRESBRESULTS

N O R D I C S

198

850

Do you collect energy data?

2010 2012

Precise energy data coverage

24%

2017

60%

Sustainability clauses in lease contracts?

2012

23%

2017

Sustainability clauses in lease contracts?

80%

GRESB Score

GRESB participants(density)

2012n=445

0 20 40 60 80 100

2017n=823

2013

2011

2012 2014

2015

2016 2017

North America

Asia

Australia/NZ

Europe

Europe

Nordics

2017

ESG LEADERS ADOPT HEALTH & WELL-BEING

North America

Europe Asia Aus/NZOther

2016 174

2017 25230% 70100 63

All GRESB

StakeholderEngagement

Management

Policy & Disclosure

Risks &Opportunities

Monitoring &EMS

Performance Indicators

Building Certifications

57%

Precise energy data coverage

EUROPE

INDUSTRIAL RETAIL RESIDENTIAL HOTEL OFFICE80 162 120 216 166

Intensities/Property type

Europe

North America

Australia/NZ

OFFICE

Average L-F-L energy consumption change

2016:-1.1%

GRESB average annualized intensity & l-f-l targets

204

$2,324.5bn

11

$2.3bn

3

$11.6bn

433

$803.7bn

124

$346.9bnGlobally diversified9

$26.7bn

66

$146.3bn

204

$2,324.5bn

11

$2.3bn

3

$11.6bn

433

$803.7bn

124

$346.9bnGlobally diversified9

$26.7bn

66

$146.3bn

NORTH AMERICA EUROPE ASIA-PACIFIC

54% 70% 50%

GRESB listed market coverage (% of market cap)

100%GRESB Public Disclosure

GRESB Public DisclosureABCDE

0

50

100

150

200Transparency is key

Non-GRESB participants

Transparency is key

0

100

80

60

40

20

2010 2017201620152014201320122011

52100

First-year

8-year

75100

Investors

94%

35%

100%

Use GRESB data in their investment process

Set specific targets in terms of GRESB performance

Consider their managers to be moderately to fully prepared to

meet ESG requirements

2012

2017

Investors have driven ESG-related disclosures in the real estate sector, with the aim to protect and enhance shareholder value

We can more precisely measure and evaluate ESG performance due to increased coverage, better metrics, and higher quality data

The sector’s increased transparency and improved performance supports our mission to evaluate and empower sustainability practices

2022?

Sustainable Real Assets

2017GRESBRESULTS

N O R D I C S

Sustainability at SpondaHannamari Koivula, Sustainability Manager2017 GRESB Real Estate Results, Nordics – event, Stockholm, 27 October 2017

26

1. Sponda today

2. Spondability

3. Sustainability reporting and going forward

1. Sponda today

About Sponda

28

Offices

Shoppingcentres

Helsinki CBD 48%

Non-strategicholdings

Property develop-ment

5%

6%

58%

31%

3,807.5 M€

Investment property portfolio

30.6.2017

Sponda is a property investment company

specialising in commercial properties in Helsinki and Tampere.

We own, lease and developoffice, retail, shopping centre properties into operating environments which promote our customers’ success.

29

Sponda property allocation

MATINKYLÄ

KEILANIEMI

LEPPÄVAARA

PITÄJÄNMÄKI

AVIAPOLIS

RUOHOLAHTI

PASILA

TIKKURILA

CBD

KALASATAMA

OULU 2.3%

TAMPERE 6.5%

VANTAA TOTAL 0.7%

ESPOO TOTAL 4.8%

RUOHOLAHTI 15.5%

CBD 47.8%

REST OF HMA 11.9%

Total property portfolio value at 30 June 2017: EUR 3.8 billion

Property development 5.2%

Non-strategic holdings 5.3%

30

Sponda’s properties in theHelsinki city centre

2. Spondability

• The property sector as a whole plays a key role in improving energy efficiency and mitigating climate change, and Sponda wants to have a strong involvement in this effort.

• Environmental responsibility is one of Sponda’s strategic priority areas and one of our key processes.

• The main goals of Sponda’s strategy are profitable growth, simplification of the business structure and more focused property ownership.

• In addition to the company’s strategic direction, the criteria applied by Spondain selecting properties for acquisition and ownership include energy efficiency, flexibility, central location and access to public transport.

• Sponda takes environmental aspectsinto account in property planning, newdevelopment, renovation, maintenanceand usage, in cooperation withstakeholders.

• All of our new properties and major renovations are built to satisfy the criteria of the strictest environmental certification systems.

Environmental responsibility at Sponda

Sponda’s environmental targets

34

Sponda’s annual environmentaltargets focus on improving energyefficiency and reducing CO2emissions and increase the share of LEED and BREEAM certifiedproperties.

2017

2020

Sponda has joined the voluntary energy efficiency agreement for 2017–2025 between the property sector and the Finnish Ministry of Economic Affairs and Employment, the Finnish Ministry of the Environment and the Finnish Energy Authority. Sponda is thereby committed to conducting energy efficiency actions and investments by 7.5 per cent by 2025, when compared to the energy consumption level of 2015.

2025

LEED or BREEAM certified leasablearea

27%

Sponda’s energy efficiency program aims at 20 per cent reduction of the energy consumption of properties by 2020, compared to the averageconsumption of 2001-2005.

2020

Sponda’s environmental programmes –partnership for the good of the environment

In partnership with our customers and partners, we develop a wide range of solutions in order to increase the energy efficiency and eco-friendliness of properties.

Our energy-efficiency programme identifies potential energy savings and thus carbon footprint reduction in co-operation with the property users and managers. Over 90% of our properties belong to the programme.

Our environmental partnership programme takes into consideration not only energy consumption but also the environmental impacts of the property and its use more widely.

Long-term development of key environmental indicators*Energy consumption in total, MWh Electricity consumption, MWh Heating consumption, normalised, MWh

District cooling consumption, MWh Water consumption, m3 Waste recovery rate, %

195,0 200,0 205,0 210,0 215,0 220,0 225,0 230,0 235,0 240,0

2010 2011 2012 2013 2014 2015 2016

-11 %

88,0 90,0 92,0 94,0 96,0 98,0

100,0 102,0 104,0 106,0 108,0

2010 2011 2012 2013 2014 2015 2016

-11 %

100,0

105,0

110,0

115,0

120,0

125,0

130,0

135,0

2010 2011 2012 2013 2014 2015 2016

- 9 %

0

1 000

2 000

3 000

4 000

5 000

6 000

2010 2011 2012 2013 2014 2015 2016

-42 %

245,0250,0255,0260,0265,0270,0275,0280,0285,0290,0295,0300,0

2010 2011 2012 2013 2014 2015 2016

-10 %

0102030405060708090

100

2010 2011 2012 2013 2014 2015 2016

*) Like-for-like data includes only properties that have environmental data for thewhole 6-year-period.

3. Sustainability reporting and going forward

• Annual sustainability reporting• Sector leader 2017 in GRESB • Leadership A- in CDP Climate• UN Global Compact

• An annual report according to GRI G4, EPRA requirements

• The Finnish voluntary energy efficiency agreement of the property sector (TETS), commercial properties

• Climate Partner of the City of Helsinki

• WWF Green Office in HQ and MOW Co-working offices

Transparent reporting on corporate responsibility both internationally and in Finland

Sponda GRESB development path

• 2012: GRESB reporting started• 2013: Green Star since 2013• 2017: GRESB Sector Leader 2017

- The best result both in Nordic and in Europe in the ”Diversified – Office/Retail” sector

- Sponda outperformed more than 80% of the market

39

Since 2012, increasingcommitment, emphasis and resources to developsustainability and transparent reporting.

Sponda GRESB 2017 with development pointsManagement:Keeping up the good level

Policy & Disclosure:Widen the scope of third party assureddata and disclosure

Risks and opportunities:Continue sustainabilityrisk assessmentintegration in companyand property level riskmanagement processes

Environmental certifications:Increase the share of certifiedleased area annually accordingto company strategy and targets.

Performance:Continue actions according to companystrategy to to further reduceconsumption as well as CO2 footprintand increase energy efficiency.

Monitoring & EMS:Ensuring that property levelautomated consumptionmonitoring covers thehighest possible portion of properties.

Stakeholder engagement:Keeping up the good level in stakeholder engangement

Sponda sustainability development focus

Maintain position among the leading real estatecompanies in sustainability within the Nordic region

• Increase energy efficiency in property portfolio• Increase the share of renewable energy usage in property

portfolio• Reduce carbon footprint of property portfolio• Increase share of LEED and BREEAM environmentally certified

properties• Continue the implementation of responsibility principles in supply

chain• Maintain transparency in corporate sustainability via robust

sustainability reporting and communications

Main drivers for Sponda sustainabilitydevelopment Sector

The important roleof real estate

sector in improvingenergy efficiencyand minigatingclimate change

StakeholdersCustomers

OwnersInvestors

AssociationsNeighbourhood

Global and national Agenda

Climate changeUrbanisationRegulation

TransparencySponda

StrategySpondability

Ambition

Increase in property valueCost reduction

through reducedmaintenance costs,

customercooperation

Needs of the futureProperties better

designed to fulfill theneeds and

requirements of thefuture

42

Sponda PlcKorkeavuorenkatu 4500130 Helsinki Finland