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.epp-poland.com/app/uploads/2023/12/CLIMATE-RISK-REPORT-1.pdf
