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