MERLIN Properties Annual Report 2021

66 | Annual Report | 2021 > Assessment as from 2022. Target to engage with top tenants to gather real data > Green clauses in all new contracts > Lease price reduction for net zero tenants > Procurement of energy 100% renewable > On site generation of energy through photovoltaic (Project Sun) 4 5 Reducing tenant emissions Renewable energy > 85% reduction in operational carbon from baseline (2018) to target (2028) > Embodied carbon footprint calculated in all new developments and refurbishments > Carbon neutrality > Unavoidable footprint to be mostly offset against own initiatives duly certified Pathway to Net Zero Carbon MERLIN’s progress over the last few years has enabled the Company to define its emissions reduction strategy or “Pathway to Net Zero Carbon” for 2030, getting a head start on the European strategy for decarbonization of the economy and ensuring the present and future survival of the Company and its assets. MERLIN’s Pathway to Net Zero Carbon is a roadmap that outlines the way to improve not only the performance of the company and its assets under operational control but also the behavior of the key agents responsible for MERLIN’s emissions along its value chain, including suppliers and tenants. It is a five-pronged strategy: DECARBONIZATION OF THE MERLIN PROPERTIES PORTFOLIO 1 2 3 Reducing operational carbon Reducing embodied carbon Offsetting residual emissions