EPP has consistently reduced the environmental impact of its operations, while actively building the resilience of the portfolio of properties it manages to climate change and risks associated with sudden weather events. The company has summarised its progress against these targets, including a 22% reduction in greenhouse gas emissions compared to 2019, in its second climate report. The report was prepared in accordance with the market standard for climate risk reporting – the Task Force on Climate-related Financial Disclosures (TCFD).
The company’s key areas of focus in terms of environmental impact are: reducing greenhouse gas emissions with a target of zero net CO2 emissions in all buildings by 2050, improving the energy efficiency of properties, water efficiency, responsible waste management, biodiversity conservation and site certification. In the coming years, EPP aims to significantly reduce its carbon footprint, thereby supporting global efforts to halt global warming and its effects. At the same time, the company is proactively identifying the risks posed by climate change, such as high temperatures, floods, intense rainfall or droughts, for example, and building the resilience of the properties it manages to these phenomena.
“Building the resilience of the portfolio of properties we manage to climate change is key to maintaining their long-term value and EPP’s market-leading position. This is accompanied by efforts to slow climate change by transforming our operations to be more sustainable and with less environmental impact. We recognise that the path to net zero emissions is challenging. However, we believe that with the right preparation and a consistently implemented strategy, we will achieve our goals within the set timeframe,” said Rafał Kwiatkowski, vice president of operations at EPP Poland, asset manager of the portfolio of properties managed by the EPP Group.
EPP’s ambition is to reduce greenhouse gas emissions in order to achieve net zero carbon emissions in managed properties by 2050. In 2023, the company joined the Science Based Targets (SBTi) initiative and committed to reducing absolute Scope 1 and 2 greenhouse gas emissions by 50% by 2030 and by 90% by 2050 compared to 2019. With SBTi reviewing and approving these targets, EPP is confident that the plans set are ambitious and achievable.
As part of its decarbonisation strategy, the company is taking a number of measures – upgrading energy consumption control systems, using an energy-efficient LED lighting system, with which 82% of the common areas of the facilities have already been equipped, optimising the operation of equipment, installing heat pumps and ensuring optimal use of resources. Thanks to the initiatives taken, electricity consumption has fallen by 11.5% compared to 2019. In addition, EPP is sourcing energy from renewable sources. Green energy is already being used in the common areas of office complexes (100%) and retail properties (20%). In the financial year 2023/2024, the share of green energy in the consumption of retail properties is expected to increase to 25%.
The EPP is in the process of developing a long-term water management strategy based on, among other things, the ESRS E3 standard. This will include water management within operations and with suppliers. One of EPP’s goals in the area of water reduction is to equip 100% of common areas in retail and office facilities with water-saving faucets by 2025. This process is currently 95% advanced.
EPP also aims to manage waste generated by, among others, tenants and property users, visitors and the organisation itself, in order to further reduce the company’s carbon footprint in the value chain. EPP educates facility users on proper waste segregation to improve the process of separate waste collection. The company engages in dialogue with tenants on the use of reusable or easily recyclable packaging. In addition, EPP works closely with waste collectors to minimise the amount of waste going to landfill.
In 2023, the EPP developed a Biodiversity Conservation Strategy to look after local ecosystems for present and future generations. They are a shared heritage that must be protected and restored. The company wants to actively use ecosystems in its operations across its managed portfolio by 2025 in line with the EU Taxonomy’s Do No Significant Harm (DNSH) criteria. At the same time, the EPP aims to enhance biodiversity around the properties it manages and to use local ecosystems to build the resilience of the sites to the effects of climate change. By 2030, seven shopping centres in EPP’s portfolio will be included in the LIFE Archiclima project, co-funded by the European Union. It includes an assessment of the facilities’ adaptation to climate change and the identification of risks associated with current and future natural events. Based on this data, a climate change adaptation plan for the properties will be developed, with nature-based solutions at the core of the plan.
EPP is concerned about the credible and transparent assessment of managed facilities by independent, recognised accreditation bodies such as BREEAM or IWBI. Currently, 86% of the office buildings and 72% of the retail facilities directly managed by EPP have achieved BREEAM In-Use certification. The company’s goal is to obtain BREEAM certification for 100% of its office and retail properties by 2025. In addition, the office complexes Symetris Business Park, O3 Business Campus, Malta Office Park and Development Park have a WELL Health-Safety Rating.
The EPP Climate Report has been prepared for the 35 projects (29 retail properties and six office complexes) that the company manages and covers the financial year 2022/2023, i.e. the period from 1 September 2022 to 31 August 2023.
The greenhouse gas emissions presented in the report have been calculated in accordance with the international methodology for calculating corporate emissions: “Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard”, “GHG Protocol Scope 2 Guidance Amendment to the GHG Protocol Corporate Standard” and “Corporate Value Chain (Scope 3) Accounting and Reporting Standard, Supplement to the GHG Protocol Corporate Accounting and Reporting Standard”. The calculation of the EPP’s carbon footprint was audited by PricewaterhouseCoopers Polska.
