MERLIN Properties Annual Report 2022

MERLIN Properties | 81 Development and operation of sustainable assets Integrating sustainability into each of the different phases of the asset’s life cycle has always been a priority for MERLIN and it has remained constant through the different phases life-cycles: ACQUISITION OF NEW LAND OR BUILDINGS In the due diligence process for investments in land and buildings, MERLIN considers environmental and social sustainability aspects such as the property’s construction characteristics, the asset’s energy efficiency, alignment with the Group’s strategy regarding sustainable mobility, or the status of legal compliance and sanctions. Furthermore, as a starting point, the Group’s strategy is to prioritise the location of assets in urban environments as this in and of itself ensures that no ecologically critical or endangered areas will be affected. MERLIN is therefore committed to ensuring that: • 100% of office and shopping centre assets are located within 10 minutes/1km of public transport. • 0% of assets are located in protected or ecologically critical areas. • 100% of acquisitions take environmental and social criteria into account. MERLIN has made progress fulfilling these commitments. For example, 100% of the Company’s offices and shopping centres are accessible by public transport and all assets are located in urban areas that do not impact protected or ecologically critical areas. MERLIN also continues to work on integrating environmental and social criteria in its acquisitions in line with LEED and BREEAM certifications. 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, guides the projects for the certification of its assets based on sustainable construction schemes, and reduces and mitigates the negative impacts associated with the construction. In this phase, the Group replaces or installs resource-efficient equipment, systems and devices. MERLIN has developed a new policy that establishes the obligation to calculate the embodied carbon footprint for projects over € 3 million and give an ESG performance rating to suppliers with projects to be carried out for over € 150 thousand. MERLIN also seeks synergies between its assets to minimise 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. In 2022, materials from the Plaza Ruiz Picasso building were used for the construction of the Cerro de los Gamos Business Park, Atica 1, Churruca and Campo de las Naciones business park.