MERLIN Properties Annual Report 2023

MERLIN Properties | 77 Environmental and energy management systems MERLIN, under the continuous improvement approach in its role as manager of its portfolios, has an Integrated Management System (IMS) for the ISO 14001:2015 (Environmental Management Systems) international standard and for the ISO 50001:2018 (Energy Management Systems) international standard, both benchmarks certified by an accredited certification body. The Environmental Management System supports environmental best practices, and its systematic approach to identifying and complying with all applicable legal environmental requirements and identifying and managing the associated environmental risks evidences its commitment to continuous environmental improvement. The Energy Management System, in turn, encompasses improving energy efficiency, reducing consumption, improving operations and activities, and reducing the emissions associated with MERLIN’s activities and evidences its commitment to energy efficiency in the framework of continuous improvement. In 2015 MERLIN set out on an ambitious plan to implement these management systems and successfully achieve ISO 14001 (environmental management) and ISO 50001 (energy management) certification by expanding the number of real estate assets with at least one of those certifications. This plan includes office buildings, shopping centres and logistics warehouses. In 2023, 91 buildings with a total floor area of 1,233,389 sqm were ISO 14001 certified, 2 more than in 2022. Group also continued its process of implementing its ISO 50001 certified Energy Management System that was started in 2017. Currently, 88 buildings with a total floor area of 1,181,192 sqm are certified, 4 more than in 2022. The target for the assets included in the ISO 50001 certified Energy Management System is to implement ESMs (energy saving measures) to reduce energy consumption by 8% compared to 2021 (96.71 kWh/sqm occupied space). Through its Environmental Management System the Group identifies the most significant environmental impacts of its activities and establishes the mechanisms necessary to identify, assess, and control those impacts in keeping with the precautionary principle. The Group allocates 8.11 FTEs (3.05% of the workforce) to environmental risk prevention, including time spent by the management bodies, senior management, and prevention and management teams. With regard to cover for potential environmental risks, the Group has third- party liability insurance that expressly covers any third-party liability arising from contamination or pollution of the atmosphere, soil or water, provided that these harmful actions occurred as a result of an accidental, sudden, unforeseeable, unexpected and unintentional cause. This insurance also covers the costs of removal, cleaning or disposal of contaminating substances for which MERLIN is legally liable due to contamination of third party sites or facilities. In 2023, following an analysis, the Group did not consider it necessary to make provisions for potential environmental risks.