MERLIN Properties Annual Report 2022

MERLIN Properties | 79 ABSOLUTE SCOPE AND LIKE-FOR-LIKE SCOPE Based on the EPRA sBPR Guidelines, MERLIN reports on a series of environmental indicators or KPIs (integrated in the EPRA Sustainability Performance Measures). These KPIs cover information on energy consumption, GHG or Greenhouse Gases emissions, water withdrawal and waste generations (1) . There are two different types of KPIs: total or absolute KPIs and like-for-like KPIs. Absolute KPIs are calculated in terms of the total asset portfolio, while like-for-like KPIs are calculated considering only assets that have been in continuous operation for the last three years. Environmental performance data is reported including the degree of coverage of each KPI. Coverage is defined as the proportion of assets for which there is information available to calculate the respective KPI with regard to total assets, calculated both in terms of the number of assets and surface area of the assets. In 2022, MERLIN updated the criteria for calculating its GHG emissions, based on operational control and its share of equity in the assets as established in the GHG Protocol , using the market-based method, based on which the data on emission factors arising from electricity consumption must be obtained from the suppliers from which the electricity has been purchased. The Group previously calculated the emission factor based on the electricity mix for Spain and Portugal (location-based method). Regarding the type of emissions, they are reported in Scope 1, 2 and 3, as described below: 1) Scope 1, which includes direct GHG emissions: • Associated with fuel consumption in fixed installations of assets with operational control. • Associated with fugitive emissions of refrigerant greenhouse gases. 2) Scope 2, which includes indirect GHG emissions: • Associated with electricity consumption in installations. • Associated with thermal energy consumption in installations. 3) Scope 3, which are direct emissions from fuel consumption at fixed installations of assets not under operational control and indirect emissions as a result of the company’s activities at sources that are neither owned nor controlled by the company (see Appendix II of this report). In view of the above, the data for the last two years have therefore been recalculated, for easier year-on-year comparability.