MERLIN Properties Annual Report 2023

76 | Annual report | 2023 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 emissions, water withdrawal and waste generation (1) . There are two types of KPI: Total or absolute KPIs and like-for-like KPIs. Absolute KPIs are calculated in terms of the total asset portfolio. 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 its criteria for calculating its GHG emissions to take into account operational control and its equity share in the assets as provided in the GHG Protocol ,using the market-based method, in which data on the emission factors for electricity consumption are obtained from the electric company from which the electricity is purchased. The Group previously calculated the emission factor based on the electricity mix for Spain and Portugal (location-based method). Scope 1, 2, and 3 emissions are reported as described below: 1) Scope 1 emissions, which include direct GHG emissions: • Associated with fuel consumption at fixed installations of assets under operational control. • Associated with fugitive emissions of greenhouse gas refrigerants. 2) Scope 2 emissions, which include indirect GHG emissions: • Associated with electricity consumption at installations. • Associated with thermal energy consumption at installations. 3) Scope 3, 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 to this report). (1) The full definition of the above KPIs is given in detail in chapter 8.b. “EPRA sBPR Table of Contents” of this SNFI. (2) The GHG Protocol (Greenhouse Gas Protocol) sets out the global standardised frameworks for measuring and managing greenhouse gas (GHG) emissions from both private and public sector operations and value chains and mitigation actions.