EPP, Poland’s largest asset manager of retail real estate, has secured a EUR 323.9 million loan to refinance existing debt on its fully-owned shopping centre portfolio. The financing covers four prime retail assets: King Cross Marcelin in Poznań, two assets in Szczecin (Galaxy and Outlet Park), and Pasaż Grunwaldzki in Wrocław.

The loan was provided by Santander Bank Polska S.A. (Poland), Erste Group Bank AG (Austria), and Helaba Landesbank Hessen-Thüringen (Germany). The Polish bank also acts as facility agent, security agent and account bank. The loan has a five-year term with a balloon payment at maturity and no amortisation requirement.

“Securing financing of this scale in the current geopolitical environment is a clear signal of financial institutions’ confidence in the Polish retail real estate market – in the sector’s fundamentals, and above all in the quality of our assets and the strength of our asset management. For EPP, this is another non-amortising facility, bringing us consistently closer to a REIT operating model,” said Tomasz Trzósło, CEO of EPP.

The refinanced portfolio comprises nearly 180,000 square metres of modern retail space, certified BREEAM In-Use at the “Very Good” level or higher, and located in key cities across Poland. Its diversified tenant mix includes leading international and Polish brands such as: Auchan, CCC, HalfPrice, Helios, H&M, MediaMarkt, Multikino, Peek & Cloppenburg, Reserved, Smyk, Zdrofit, McDonald’s, Starbucks, Popeyes®, and others.

Dentons advised and provided legal services to the lenders, while the borrower was represented by Greenberg Traurig.

EPP, Poland’s largest asset manager of retail real estate, has successfully met its greenhouse gas (GHG) reduction targets originally set for 2030. According to the company’s ESG report for the 2024/2025 financial year*, EPP reduced Scope 1 and 2 emissions by over 50% and Scope 3 emissions by 32% compared to the 2019 baseline, thereby fulfilling the objectives validated in 2023 by the Science Based Targets initiative (SBTi)**. These results stem from a consistent decarbonisation strategy, including building energy efficiency upgrades, renewable energy sourcing and reducing indirect emissions through collaboration with tenants and suppliers.

– Reaching our 2030 targets today is the outcome of a comprehensive transformation – from modernising building systems and expanding solar capacity to partnering with tenants on green lease agreements. A 50% reduction in emissions is not the end of the journey, but a confirmation that we are on the right track. Our focus now shifts to the long-term goal of achieving climate neutrality by 2050 – said Rafał Kwiatkowski, Chief Operating Officer and Board Member at EPP Poland, asset manager of the real estate portfolio managed by EPP Group.

Energy efficiency upgrades and renewables

In the past financial year, EPP N.V.*** reduced fossil fuel energy consumption in common areas and tenant spaces across its portfolio by 7.5% compared to the previous year. This was achieved through upgrades to building management systems (BMS), and installation of LED lighting and heat pumps. A flagship example is the comprehensive energy efficiency modernisation of King Cross Marcelin in Poznań. The replacement of energy and heating systems, among other things, reduced energy use in common areas by approximately 20% and primary energy demand by 78.6 kWh/m² annually. The building improved from energy class D to C, meeting EU Taxonomy criteria for significant contribution to climate adaptation.

EPP also prioritises sustainable energy procurement. Last year’s energy mix included wind energy under a PPA agreement (25%) supplemented by guarantees of origin and photovoltaics. This means that 35% of the electricity in retail properties and 100% in office buildings came from these sources.

The company also continues to expand its solar program. By the end of the 2026 financial year, it plans to launch 13 photovoltaic projects with a total capacity exceeding 7,100 kWp. In the last quarter of the past financial year, new solar installations appeared on the roofs of five shopping centres resulting in greater independence from the grid and a lower carbon footprint.
Digital tools

EPP invests in technologies supporting the circular economy. Its managed portfolio is gradually implementing WasteTracker – a digital monitoring system that tracks the weight and category of waste generated by tenants in real time. The tool enhances transparency in waste management, reinforces proper segregation and facilitates the identification of areas for improvement.
Sustainable standards for buildings and tenants

All office assets under EPP management hold BREEAM In-Use certification at the “Excellent” level, while 100% of shopping centres have achieved “Very Good” or higher. In the past financial year, EPP signed 1,238 green lease agreements, committing both the company and tenants to sustainable practices. Nearly half of all leases in the portfolio are now green.

Social impact and local community engagement

In 2024, EPP launched a Social Value Strategy aimed at increasing the positive impact of its properties on key stakeholders, including local communities. Between 1 September 2024 and 31 August 2025, the company delivered nearly 300 social initiatives benefiting over 37,000 people. More than 50% of EPP employees participated, contributing a total of 2,262 volunteer hours. Projects span four areas: portfolio-wide initiatives, local charity actions under the “5 Good Deeds” program, employee volunteering and additional grant-funded volunteer projects.

* ABOUT THE REPORT

EPP N.V. Sustainability Report covers financial year from 1 September 2024 to 31 August 2025. The document has been prepared in accordance with the European Sustainability Reporting Standards (ESRS), following the adoption of the Corporate Sustainability Reporting Directive (CSRD – Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022, amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU as regards corporate sustainability reporting). The report presents consolidated data for EPP N.V. and all its subsidiaries, in line with CSRD consolidation requirements (2022/2464). It also includes information on the implementation of the strategy adopted in 2021, which covers all properties managed by EPP.

The full report is available for download at: https://www.eppnv.nl/en/esg-en/reports/

** Science Based Targets (SBTi) is a global initiative enabling companies to set ambitious emission reduction targets aligned with the latest climate science. It focuses on accelerating business action worldwide to halve emissions by 2030 and achieve net-zero emissions before 2050.

*** The EPP N.V. portfolio includes: Galaxy in Szczecin, Galeria Echo in Kielce, King Cross Marcelin in Poznań, Outlet Park in Szczecin and Pasaż Grunwaldzki in Wrocław.

EPP, the largest asset manager of retail real estate located in Poland in terms of GLA, together with Sunbird Solar Solutions, a leader in sustainable solar solutions, announce their partnership to deploy solar energy systems across 13 retail assets. This initiative marks another significant step forward in the decarbonisation of EPP-managed retail portfolio and demonstrates a shared commitment to renewable energy and environmental responsibility. The project is partially financed by an investment loan provided by mBank.

Transforming shopping centres with solar power

As part of this collaboration, Sunbird Solar Solutions will install advanced solar panel systems on the rooftops of 13 shopping centres managed by EPP across Poland. The solar installations will not only help reduce the centres’ reliance on conventional energy sources but will also significantly lower carbon emissions, advancing EPP’s sustainability goals.

– We are excited to be working with EPP on this transformative project, – said Dave Dolley, CFO of Sunbird Solar Solutions. – The retail sector plays a key role in shaping a sustainable future, and by integrating solar energy into EPP’s shopping centres, we’re helping them to reduce their impact on the environment.

Key details of the solar rollout

A total of 13 EPP-managed shopping centres including: Galaxy, Galeria Echo, Pasaż Grunwaldzki, King Cross Marcelin, Outlet Park, Galeria Amber, Galeria Sudecka, Galeria Olimpia, Galeria Veneda, Galeria Twierdza Zamość, Galeria Solna, Galeria Twierdza Kłodzko and Galeria Młociny are set to be equipped with photovoltaic panels as part of the planned solar rollout, with a combined capacity that will exceed 7,100 kWp. This initiative is projected to reduce annual carbon emissions by approximately 4,000 tCO₂e, representing a 6% decrease, while enhancing the energy efficiency of EPP’s portfolio and aligning it with the SBTi-validated emission reduction targets.

A green future for retail

This solar energy rollout is a key part of EPP’s broader ESG strategy, as well as its verified SBTi decarbonisation targets. By leveraging renewable energy, EPP not only enhances the energy performance of the shopping centres it manages but also sets a benchmark for the retail industry in Poland.

– We are working closely with Sunbird Solar Solutions to incorporate solar energy into 13 EPP-managed shopping centres, – said Tomasz Trzoslo, CEO of EPP. – Sustainability is at the heart of our business. And decarbonisation is an integral part of that, as we have committed ourselves to significantly reducing our carbon footprint by 2030 compared to 2019 levels. The project to introduce solar power into our energy mix demonstrates our commitment to this area.

Looking ahead

Sunbird Solar Solutions and EPP plan to continue expanding their solar energy partnership with additional installations at more shopping centres across Poland in the future. This project is just the beginning of a wider movement to integrate renewable energy into EPP-managed commercial real estate portfolio, creating long-lasting environmental and economic impacts.

Sustainability can thrive through solid collaboration with partners who share the same values. This is why the project is being co-financed through an investment loan granted by mBank, a financial institution that consistently supports the energy transition and promotes a sustainable economy.

– Advancing the energy transition requires strong and lasting partnerships. By co-financing this initiative, mBank supports the decarbonisation of one of Poland’s largest retail real estate portfolios and reaffirms its commitment to guiding clients on their sustainability journey. We see ourselves not only as a financial institution, but above all as a trusted partner helping businesses seize opportunities, achieve climate ambitions and create lasting value for future generations. As one of Poland’s most active banks in sustainable finance, mBank has already channelled more than PLN 16.1 billion into green projects and capital market instruments by the end of 2024 – a testament to our scale, expertise, and determination in driving the country’s energy transformation – said Adam Pers, Executive Vice President for Corporate and Investment Banking, mBank.

Sunbird Solar Solutions is a leading Pan-European solar PV developer led by an experienced team of Commercial and Industrial solar specialists with decades of experience in developing, financing, designing, constructing, and maintaining solar and battery energy storage assets.

mBank is a leading digital bank in Poland, serving over 5 million retail and corporate clients. Our corporate banking division provides comprehensive financial solutions tailored to businesses of all sizes, from SMEs to large corporations. We specialise in innovative cash management, trade finance, and customised lending options. Our commitment to technology-driven solutions ensures seamless and efficient banking operations for our partners.

* Science Based Targets initiative

Henderson Park, the international private equity real estate firm, and EPP, the asset manager of office properties, have successfully secured a EUR 148.6 million loan from Berlin Hyp AG and PKO Bank Polski to refinance a Polish office portfolio.

The three assets, which comprise the Malta Office Park in Poznan, the O3 Business Campus in Krakow and the Symetris Business Park in Lodz, are owned in joint venture by Henderson Park and EPP.
John Fletcher, Senior Principal, at Henderson Park, commented: “This refinancing reiterates the strength of this Polish office portfolio and the additional value created through a comprehensive asset management programme by the EPP team. This new facility allows us to continue executing our business plan on behalf of our investors.”

“The refinancing of the office portfolio, successfully orchestrated by EPP as its asset manager, highlights the quality of the properties and their tenancy. In a challenging market environment, over the past few years we have consistently applied activities to increase the quality of these assets, which has allowed us to maintain the confidence of financial institutions and ensure the portfolio’s stability,” said Sylwia Piechnik, Head of Office Leasing and Asset Management at EPP.

The refinanced portfolio comprises over 105,000 sqm of modern, BREEAM-certified office space in key cities across Poland. The Grade A buildings feature contemporary architecture, exceptional workspace quality and are fully powered by renewable energy. Tenants include NFZ, HCLTech, Grant Thornton Frąckowiak, ZF Group and Philips.

Wolf Theiss advised and provided legal services for the lenders, while the borrower was represented by Linklaters.

On 1 May 2024, EPP is taking over the management of nine M1 shopping centres and three Power Parks from METRO PROPERTIES Polska. Some of METRO PROPERTIES Polska’s employees, including local property management teams will join EPP. The company plans to develop the properties through leasing activities and space rearrangements and upgrades.

EPP’s acquisition of a portfolio of twelve retail properties (shopping centres and retail parks) with a total area of more than 470,000 sqm, was one of the largest transactions in the history of the Polish commercial real estate market. It was divided into three stages, the first of which was completed in January 2018, the second in June 2019, and the third was finalised in March 2021. The portfolio consists of twelve retail assets, including nine regional M1 shopping centres: M1 Marki, M1 Czeladź, M1 Kraków, M1 Łódź, M1 Zabrze, M1 Bytom, M1 Częstochowa, M1 Radom, M1 Poznań, and three Power Parks: Power Park Kielce, Power Park Olsztyn and Power Park Tychy. The entire portfolio is covered by a property management (master lease) agreement with Metro AG, which expires at the end of April 2024. Due to its termination, as of 1 May this year, management of the properties is transferred to EPP.

– The M1 shopping centres and Power Parks are a diverse portfolio of properties with a long-standing presence on the market. Our aim is to develop the potential of these assets by strengthening their offer and enriching it with new, attractive tenants. We are also planning space rearrangements and upgrades resulting from changes in tenant mix, the age of the properties or ESG requirements. Together with the experienced team of employees of METRO PROPERTIES Polska, who will continue to look after the properties, but from May onwards under EPP’s wing, we will successively implement these changes – says Tomasz Trzósło, CEO at EPP.

– M1 is a popular and well-recognised shopping centre brand on the Polish market, firmly established in customers’ minds in central and southern Poland, which started the year with an impressive 99.3% occupancy rate. Last year, 35.5 million customers visited us and tenants recorded an increase in turnover. Power Parks, on the other hand, are strong local retail properties, accompanying customers in their daily shopping. We are handing over the management of this unique portfolio with a very good set of brands and stable, partner relationships with tenants, which are also positively evaluated by industry organisations. Despite their many years on the market, these are centres with high BREEAM certification ratings, consistently upgraded over the years and managed to the best ESG standards. I believe that EPP will successfully develop their potential on the commercial map of the country – says Renata Kinde-Czyż, CEO at METRO PROPERTIES Polska.

Thanks to investments and the implementation of a package of innovative measures, the M1 shopping centres have achieved nearly 20% savings in electricity consumption compared to the average consumption between 2018 and 2022. The properties have BREEAM In-Use certificates at Outstanding and Excellent levels.

The M1 shopping centres and Power Parks are well-established retail properties with a history of around 20 years. They are attractively located in large urban agglomerations with high population density, in the vicinity of important transport routes. They have a diverse and attractive retail offer. Their tenants include the popular food hypermarket Auchan, as well as numerous international and local brands such as MediaMarkt, OBI, TK Maxx, H&M and C&A.

EPP, the largest asset manager of retail real estate located in Poland in terms of gross leasable area (GLA), along with Echo Investment, the biggest Polish developer, have successfully secured a loan worth EUR 145.2 million for the new financing of the Galeria Młociny shopping centre located in Warsaw. The five-year financing was classified as meeting the EU Taxonomy. Galeria Młociny, owned by EPP (70% stake) and Echo Investment (30% stake), complies with the environmental objective of the EU Taxonomy on climate change adaptation.

Erste Bank Group AG (Austria), Rand Merchant Bank (RMB), a division of FirstRand Bank Limited (Republic of South Africa) and Santander Bank Polska (Poland) acted as arrangers of the new credit facility, with Santander Bank Polska also acting as Facility Agent, Security Agent and Account Bank. The credit facility has a term of five years with a payment at the end of that period and no amortisation requirement.

– The new financing for Galeria Młociny is the first such large-scale transaction on the Polish retail real estate market after the pandemic. It demonstrates quality of the building and marks the rebirth of the retail market for investors and providers of capital. The refinancing will have a positive impact on the EPP’s balance sheet. It was a complex process due to the value of the loan and the expectations of the lenders, but we concluded it on good financing terms. It was important for the banks that Galeria Młociny is a green asset that meets the criteria of the EU Taxonomy, and is compliant with the technical screening criteria to prove substantial contribution to climate adaptation and minimum safeguards indicated in the EU Taxonomy delegated acts – said Jacek Bagiński, CFO at EPP.

– Galeria Młociny stands out as a vital component of Echo Investment’s portfolio, notable for its green features and strong operational performance. The centre saw both a solid boost in turnover and rise in footfall in 2023, underscoring its appeal to consumers. As a co-owner, we are pleased that Galeria Młociny has also earned the confidence of lenders through successful refinancing. This endorsement serves as a compelling indicator to prospective investors, who are once again seeking out properties that can enhance their portfolios of sustainable real estate – remarks Grzegorz Iwański, Financing Director at Echo Investment.

Galeria Młociny is one of the youngest shopping centres in Warsaw. It has quickly become one of the leading retail destinations on the map of the Polish capital with a growing number of customers. The shopping centre is compliant with the environmental objective of adapting to climate change as defined within the EU Taxonomy and is among the 30% most energy-efficient non-residential buildings built before the end of 2020. Galeria Młociny has the BREEAM In-Use certificate at the Excellent level.

– This deal is a milestone in the history of Erste, as it is our first ever EU Taxonomy compliant real estate loan in Poland. Galeria Młociny will help us achieve our sustainability goals: aligning our lending portfolio to meet net-zero emissions latest by 2050. The strong long-term relationship with EPP allowed us to underwrite a substantial volume in this transaction, confirming the solid fundamentals of the real estate market in Poland – said Balazs Gal, Director at Erste Group Bank AG.

– RMB is thrilled to have assisted the EPP group in the funding of Galeria Młociny, an EU Taxonomy compliant and BREEAM certified shopping centre. This is in line with RMB’s commitment to advancing our clients’ sustainability strategies. The EPP group is a key strategic client of the bank, and we are pleased to conclude another transaction with them as we grow our relationship together. We look forward to further working with Erste Group Bank AG and Santander Bank Polska in this transaction – says Sashen Naidoo, Real Estate Finance Transactor at Rand Merchant Bank.

– We are happy that we had the opportunity to be a part of financing provided for Galeria Młociny as an Agent Bank of the consortium together with Erste Bank and Rand Merchant Bank. Our primary goal is to support our Clients with growth of their real estate businesses, especially in terms of sustainable investments like Galeria Młociny. Both EPP being the biggest retail assets manager in Poland and Echo Investment as a largest Polish developer are our key Clients, so we appreciate that we could lead this transaction and strengthen our relationship – added Bartłomiej Barej, Director in Property Finance at Santander Bank Polska.

Dentons advised and provided legal services for lenders, while the borrower was represented by Clifford Chance.

EPP is consistently reducing the environmental impact of its operations, while actively building the resilience of the managed real estate portfolio against climate change and risks associated with sudden atmospheric phenomena. In its second Climate Risk Report, the company summarises its progress towards achieving these goals, including a 22% decrease in greenhouse gas emissions compared to 2019. The report follows the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

EPP environmental priorities

The company’s key environmental focus areas include: reducing GHG emissions to achieve the strategic goal of zero net operational carbon emissions across all EPP-managed buildings by 2050, improving energy efficiency of properties, responsible water and waste management, biodiversity protection, and property certification. Over the coming years, EPP plans to significantly reduce its carbon footprint, contributing to global efforts to combat climate warming and its effects. At the same time, the company is proactively identifying the threats associated with climate change, such as high temperatures, floods, heavy rainfall and droughts, and is building resilience for the properties it manages to withstand these phenomena.

– Building a robust climate resilience strategy for the property portfolio we manage is critical to creating long-term value for our stakeholders and EPP’s leading position in the market. This goes hand in hand with efforts to mitigate climate change by making our operations more sustainable and environmentally friendly. We are aware that the journey to net zero may take some time. However, we believe that with proper preparation and consistent implementation of our strategy, we will achieve our goals within the timeframe we have set – stated Rafał Kwiatkowski, COO EPP Poland, asset manager of the EPP Group’s property portfolio.

The journey to net zero

EPP has ambitious greenhouse gas emission reduction targets, with a strategic one to achieve net zero emissions in all managed properties by 2050. By setting science-based targets through the Science Based Targets initiative (SBTi), the company committed to reducing absolute Scope 1 and 2 GHG emissions by 50% by 2030 and by 90% by 2050 compared to 2019 base year. With these targets reviewed and validated by SBTi, EPP is confident that its planned goals are both ambitious and achievable.

As part of its decarbonisation strategy, the company is implementing a series of measures incl. upgrading energy management systems, using energy-efficient LED lighting (already installed in 82% of its properties’ common areas), optimising the operation of equipment, installing heat pumps and ensuring optimal use of resources. Thanks to these efforts, energy consumption has been reduced by 11.5% compared to 2019. The company also purchases energy from alternative sources. Currently, 100% of the common areas in office complexes and 20% of retail properties are powered by green energy. In the 2023/2024 financial year, the share of electricity from renewable energy sources in all retail assets is expected to increase and reach 25%.

Efficient water management

EPP is currently working on long-term water strategy considering standards such as ESRS E3 Water and marine resources. This policy will cover water management in operational activities and collaboration with suppliers. One of EPP’s targets for reducing water consumption is to equip 100% of the common areas in its retail and office properties with water saving taps by 2025, a process which is now 95% completed.

Responsible waste management

EPP aims to reduce the carbon footprint by effectively monitoring the resources it uses and the volumes of waste generated by tenants, property users, visitors, and the organization itself, contributing to the company’s ongoing efforts to reduce its carbon footprint in the value chain. EPP promotes environmental awareness and educates property users on proper waste segregation to streamline the process of its selective collection. The company is also in dialogue with tenants about the use of reusable bulk or easily recyclable packaging. Additionally, EPP works closely with waste collection entities to minimize the amount of waste ending up in landfills.

Protecting biodiversity

In 2023, EPP developed a biodiversity strategy aimed at caring for local habitat for the benefit of present and future generations, recognising them as a common heritage that needs to be protected and restored. This strategy includes the active use of ecosystems across the company’s managed portfolio by 2025, in line with the EU Taxonomy’s ‘Do No Significant Harm’ criteria. At the same time, EPP is enhancing biodiversity around its properties and using local ecosystems to strengthen the properties’ resilience to the impacts of climate change. By 2030, seven shopping centres in EPP’s portfolio will participate in the EU-funded LIFE Archiclima project, which involves assessing the properties’ adaptability to climate change and identifying risks from current and future natural events, leading to a climate adaptation plan that relies on nature-based solutions.

Property certification

EPP is committed to providing a credible and transparent assessment of the properties it manages from independent, recognised accreditation bodies such as Building Research Establishment’s Environmental Assessment Method, “BREEAM” and International WELL Building Institute, “WELL Health-Safety Rating”. Currently, 86% of the office buildings and 72% of the retail assets under EPP operational control were certified with BREEAM In-Use. The company’s goal is to have 100% of its office and retail properties BREEAM certified by 2025. In addition, the office complexes Symetris Business Park, O3 Business Campus, Malta Office Park and Park Rozwoju were awarded with the WELL Health-Safety Rating.

About the report

The scope of EPP Climate Risk Report includes 35 projects (29 retail properties and six office complexes) managed by the company and covers the 2022/2023 financial year, i.e. the period from 1 September 2022 to 31 August 2023.

The GHG emissions presented in this report were calculated according to the international methodology for calculating emissions for enterprises: “Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard”, “GHG Protocol Scope 2 Guidance Amendment to the GHG Protocol Corporate Standard” and the “Corporate Value Chain (Scope 3) Accounting and Reporting Standard, Supplement to the GHG Protocol Corporate Accounting and Reporting Standard”. The carbon footprint assessment was audited by PricewaterhouseCoopers Polska sp. z o.o. sp. k.

The full version of the EPP Climate Risk Report can be downloaded at:
https://www.eppnv.nl/app/uploads/2023/12/CLIMATE-RISK-REPORT.pdf

EPP, presenting its second ESG report based on the international standard for non-financial reporting, the Global Reporting Initiative (GRI), outlines the company’s performance for the 2022/2023 financial year. The organisation’s activities are focused on reducing its environmental impact while strengthening the social commitment. EPP has achieved a 22% reduction in greenhouse gas (‘GHG’) emissions in its directly managed portfolio, compared to 2019. At the same time, it has invested nearly 1,700 hours of employee volunteer time in initiatives addressed to local communities, supporting more than 31,000 beneficiaries.

– We prioritise managing the impact of our business on EPP’s stakeholders, which includes the environment and local communities living near the managed properties. We began with implementing our ESG strategy in 2021, and are continuously updating it to meet new challenges and regulatory requirements. Transparent and regular reporting is the second step of our strategy. Our plans are ambitious in all areas, but we know that by working together with our stakeholders, we can succeed – stated Rafał Kwiatkowski, COO EPP Poland, asset manager of the EPP Group’s property portfolio.

ESG strategy based on four major pillars

The ESG policy, which has been an integral part of EPP’s business strategy since 2021, is based on the premise of being responsible towards the Planet and people. EPP strives to run its business responsibly, focusing on four pillars that are linked to the Sustainable Development Goals (SDGs) set by the United Nations. EPP reduces its environmental impact (Earth citizen), creates a space accessible to all (Space for everyone), focuses on building trust among stakeholders through transparent and coherent communication (Trust through transparency) and develops a system of responsible governance (Mindful management).

Environmental responsibility

One of EPP’s key priorities is to reduce GHG emissions in order to achieve net zero by 2050 in facilities under its management. In 2023, the company has committed to reducing absolute Scope 1 and 2 GHG emissions by 50% by 2030 and by 90% by 2050 compared to a 2019 baseline. These targets were reviewed and validated by the Science Based Targets initiative (SBTi). The company is on a track to achieve its goals, with a 22% decrease in GHG emissions in the directly managed portfolio in the 2022/2023 financial year compared to 2019.

Further improvements, including an energy-efficient LED system, already installed in 82% of the managed buildings’ common areas, the modernisation of the BMS systems or optimisations of equipment operation, have contributed to an 11.5% decrease in energy consumption compared to 2019. As part of the commitment to its long-term plans, EPP is already using electricity from renewable sources in the common areas in 100% in office and in 20% in retail assets.

Social value

The company focuses on increasing the positive impact of its activities on local communities. EPP aims to improve diversity and inclusion, strengthen local economies, analyse and respond to local social challenges, while taking care of the environment and human rights in the supply chain.

EPP supports local communities through actions in four areas. These include portfolio-wide initiatives, local ‘Five Good Deeds’ activities, employee volunteering and additional grants funded by EPP to support local communities. In the 2022/2023 financial year, EPP teams carried out 221 initiatives and contributed 1,686 hours of employee volunteering. As a result, there are more than 31,000 beneficiaries of EPP support.

The company cares strongly about the wellbeing of its employees, offering regular training sessions and an extensive benefits package. All employees have been trained on business ethics issues, 88% of employees are covered by the employee development program and a further 82% completed various ESG training sessions. On average, one person has invested more than 28 hours in self-improvement, knowledge and skills development. The company’s highest standards in human resources management were recognised by the Polish Human Resources Management Association with the “HR of the Top Quality 2023” certificate. In addition EPP was included in the Diversity IN Check, a list of the best employers for Diversity and Inclusion in Poland.

Corporate Governance

Good governance and transparency are an essential part of the company’s ESG strategy. Accordingly, EPP’s operations are reviewed by leading and independent third parties. For example, in the Carbon Disclosure Project’s (CDP) ranking, recognised as one of the key tools for assessing the transparency of corporate disclosure on climate change, EPP received a B grade. EPP also aims to work with responsible companies that share similar values and ensure ethical supply chain operations. Therefore, key business partners sign a EPP’s Suppliers Code of Conduct.

In addition, to annual ESG progress reporting based on GRI standards and TCFD recommendations, the company implements a number of internal practices, such as EPP’s Code of Conduct, Diversity Policy and Suppliers Code of Conduct. EPP also ensures appropriate certification – 86% of the office buildings and 72% of the retail assets under EPP’s operational control have achieved BREEAM In-Use certification. In addition, WELL Health-Safety Rating was awarded to Symetris Business Park, O3 Business Campus, Malta Office Park and Park Rozwoju.

A double materiality perspective

EPP’s activities impact both environmental and social aspects of various stakeholder groups. Therefore, in this reporting cycle, the company has incorporated the principle of double materiality. It entails monitoring and disclosing the environmental and social impact of EPP’s activities and the impact of ESG factors on the company’s financial position. In this financial year, EPP has also included the Planet as a stakeholder influenced by the activities of the properties it manages. It also has an impact on the portfolio managed by the company, as disclosed in EPP’s Climate Risk Report, prepared in accordance with the TCFD’s recommendations.

About the report

ESG report published by the EPP based on the Global Reporting Initiative (GRI) international standard for non-financial reporting version 2021. The document provides data for the 2022/2023 financial year, covering the period from 1 September 2022 to 31 August 2023. The information contained herein relates to all of the company’s business entities and value chain. The report may exclude certain targets and results for properties in the M1 portfolio.

The full version of the EPP ESG report can be downloaded at:
https://www.eppnv.nl/app/uploads/2023/12/ESG-REPORT.pdf

EPP’s near- and long-term science-based targets have been validated by the Science Based Targets initiative (SBTi). By 2050, the largest asset manager of retail real estate located in Poland commits to achieve net-zero greenhouse gas (GHG) emissions across scopes 1, 2 and 3. Commitment to the initiative is another step taken by EPP as part of its implemented ESG strategy, and proof that the company’s targets are not only ambitious, but also realistic to achieve.

The Science Based Targets initiative (SBTi) is a global body enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050.

According to the International Energy Agency[1] , the operation of buildings is responsible for 26% of global emissions from energy consumption (8% of which are direct emissions from buildings and 18% are indirect emissions related to the production of the electricity and heat used in them). The decarbonisation of the real estate sector is therefore crucial to global action aimed at fighting climate change, and EPP wants to actively participate in this process.

With setting science-based targets through the SBTi, the EPP group made a commitment to reduce absolute scope 1 and 2 GHG emissions by 50% and absolute scope 3 GHG emissions from fuel and energy-related activities and downstream leased assets by 30% by 2030 compared to 2019. By 2050 the group committed to reach 90% of the absolute reduction in all three scopes compared to the base year. At the same time EPP group committed to reach net-zero GHG emissions across the value chain by 2050. Those near- and long-term science-based targets were reviewed and validated by the SBTi.

– Fully aware of the real estate sector’s impact on the environment and climate, we have set ourselves specific targets and actions. The decision to join the SBTi and review our decarbonisation targets is an act of corporate responsibility and an expression of our willingness to take ambitious action. We plan to significantly reduce our GHG emissions in the coming years. This will be achieved by, among other things, reducing energy consumption and purchasing energy from alternative sources. By 2030, the share of green energy for scope 1 and 2 used in the assets we manage is expected to be as high as 60% – commented Tomasz Trzósło, CEO EPP N.V.

The ESG policy implemented by EPP is an integral part of the company’s business strategy and is based on responsibility towards the planet and people. Joining the SBTi is a further step in the company’s increased focus on tackling global climate change.

The SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments. At the end of 2022, over 4,000 companies from around the world, including the best-known brands from all sectors, were involved in the initiative. The SBTi defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets. On average, between 2015 and 2020, companies with approved targets reduced combined scope 1 and 2 emissions by 29%.

[1] https://www.iea.org/energy-system/buildings

EPP, the largest asset manager of retail real estate located in Poland, and the entity managing and co-owner of six office projects, implemented a sustainable development strategy in 2021. The company aims to conduct its business in a responsible and transparent way, while reducing its environmental impact and strengthening the social commitment. Following the strategy, EPP has set targets for years 2022-2025 and is launching its first report, giving its to date ESG achievements the framework of GRI international reporting and EPRA standards.

“The decision to implement a sustainable development strategy and to set goals in terms of reducing environmental impact, acting for society and increasing corporate governance transparency was very consciously driven by the expectations and needs of our stakeholders: users of our properties, business partners and investors, as well as our vision of EPP as a company with ambitions to shape trends in this area. The ESG policy, which has been an integral part of EPP’s business strategy since last year, is based on the assumption of being responsible towards the planet and people and is divided into four pillars: environmental impact, accessibility, transparency and mindful management. By 2025 we want to reduce our carbon footprint as well as transparently and regularly report our ESG achievements,” said Tomasz Trzósło, CEO at EPP.

“We put a great importance on reducing the environmental impact of EPP’s buildings and enhancing their wide accessibility. The real estate industry is responsible for approximately 40% of global CO2 emissions, so we treat reducing the carbon footprint of our facilities as a priority. We are also committed to ensuring that all consumers and users of EPP’s shopping centres and office buildings have easy access to them and can enjoy what they have to offer. We will also continue to work with local communities to respond to the needs of our neighbours,” said Rafał Kwiatkowski, COO at EPP.

Environmental responsibility

In order to meet its environmental goals, EPP reduces its electricity and water consumption and limits the amount of generated waste. To achieve this, the company installs photovoltaic systems, replaces lighting with energy-efficient LEDs, develops systems for monitoring CO2 emissions and sorts waste. When redeveloping properties, the company chooses solutions that limit the scope of demolition and allow for leaving and modernising existing equipment. The goals that EPP wants to achieve by 2025 include: increasing the use of renewable energy (100% in office buildings and 35% in shopping centres), equipping three-quarters of the properties with photovoltaic panels, using only LED lighting in common areas, recycling 100% of industrial waste, and equipping all properties with systems that reduce water consumption. The initiatives undertaken will enable the achievement of BREEAM In-Use ‘Very Good’ or ‘Excellent’ certification for all shopping centres and office buildings by the end of 2025.

Space for everyone

The second aspect that EPP pays particular attention to is increasing the accessibility of its facilities for groups with different needs, including people with disabilities, families with children, pregnant women and seniors. With them in mind, EPP properties have been equipped with specially adapted toilets, information boards with Braille signs, intelligent systems facilitating navigation and wider parking spaces. In addition to infrastructural changes, EPP has also implemented solutions to support visitors with high sensitivity to sensory input such as light or sound. As part of the “Quiet hours” initiative the music in the EPP shopping centres is turned off at least three hours a week and voice announcements are limited. The shopping centres managed by the company are family- friendly, for whom, for example, playrooms, educational corners and appropriately equipped care rooms have been provided. Additionally, the company has commissioned the Integration Foundation to conduct independent audits to assess the accessibility of the facilities and identify new solutions worth implementing. The company also provides a friendly working environment in which diversity and equality are fostered, the personal development of the employees is supported and dialogue and self-expression is encouraged.

Cooperation with local communities

EPP facilities are often one of the key points on the economic map of a given region, which is why the company wants to support the development of the local markets in which it operates and help neighbours in need. In 2021, EPP’s teams implemented 120 projects that supported, among others, 32 nursing homes and orphanages, 16 shelters, launched bookcrossing zones with local libraries and plant adoption points. At EPP’s facilities, anti-smog flower meadows were created, and bee hives were placed on roofs and green areas. Efforts in the area of circular economy have been combined with helping those in need by providing hangers for unused clothes and setting up community fridges in which clients place surplus food. These initiatives are EPP’s response to the real needs of local communities and contemporary climate challenges such as air quality, loss of biodiversity and food waste. By 2025, the company wants to increase the number of community initiatives by 20% and encourage each employee to spend 10 hours a year on employee volunteering.

Transparency and mindful management

Transparent governance and collaboration with business partners is an important part of EPP’s ESG strategy, which is why a Code of Conduct will be introduced as early as this year and 100% of key suppliers are expected to sign it within the next three years. By the end of 2025, they will also undergo the ESG assessment, and assets managed by the company will be externally audited for health and safety.

The ESG report released by EPP has been developed in accordance with the Global Reporting Initiative (GRI) standard and with selected EPRA (European Public Real Estate Association) environmental standards specific to the real estate sector. Each pillar of the ESG strategy has been assigned relevant Sustainable Development Goals (SDGs) set by the United Nations (UN).

Download the full version of EPP’s ESG report in English at: https://www.eppnv.nl/app/uploads/2023/01/DOWNLOAD-OUR-ESG-REPORT-FOR-2021.pdf