MERLIN Properties Annual Report 2021

MERLIN Properties | 61 Developments and refurbishments Sustainability is a factor that enters into the design phase of MERLIN’s new developments and refurbishments, which raises the value generated by the project from the initial stages. The Company also sets sustainability requirements for contractors, certifies the assets of their projects based on sustainable construction schemes, and reduces and mitigates the negative impacts associated with the construction. In this phase, the Company replaces or installs resource-efficient equipment, systems and devices. MERLIN also seeks synergies among assets in order to minimize and reuse the waste generated during refurbishment. Examples of this include the building materials, false ceilings and light fixtures that were reused in other assets following the refurbishment of Arturo Soria 343 or the recycling of technical floor plates from Cerro de los Gamos. This was possible thanks to a collaborative effort with ReciPlac. The Company’s roadmap calls for more circularity among contractors in the development and refurbishment processes. To that end, the Company plans to include these criteria in the evaluation of the bids submitted in tender processes. With regard to biodiversity in developments and refurbishments, MERLIN studies the ecological value of the environment and proposes measures to preserve it. Priority is given to native plant species in landscaped areas around our assets, avoiding exotic species. Likewise, although implicit in its expansion strategy, the Company avoids deforestation in its developments and refurbishments by acquiring land in urban settings or with previous uses. In this regard, MERLIN is committed to ensuring that: 100% of developed/refurbished assets have sustainable construction certification. 100% of critical suppliers are evaluated on ESG aspects. MERLIN has made progress in living up to these commitments by obtaining LEED or BREEAM certification for all developments and refurbishments. The Company is also working on implementing a system for scoring suppliers on ESG performance. Management of properties in operation When operating its assets, MERLIN is committed to monitoring and actively managing consumption, taking steps to optimize consumption, working with tenants and operators, reducing negative impacts on the asset’s sustainability, evaluating suppliers based on sustainability criteria and certifying assets using recognized systems to measure sustainability performance. Given that it is during the operating phase when MERLIN has the greatest capacity to act, the Company focuses its efforts on maximizing the integration of sustainability during this phase. The following sustainability initiatives are currently being implemented in the portfolio in operation : • In line with its sustainability roadmap, MERLIN continues to install photovoltaic panels on assets in its strategic portfolios (offices, shopping centers and logistics assets) as part of Project Sun, through which it aims to position itself as an essential player in the energy transition as the largest developer of self-generated