Merlin Properties Socimi SA

The body responsible for sustainability matters is the Board of Directors, as the supreme decision-making body of the Group. It has created the **Sustainability, Ethics and Innovation Committee, as a permanent internal** body, of an informative and advisory nature, without executive functions, with powers to advise, report and make proposals on sustainability matters. [...] The Board of Directors, through its Committees and, in particular, the Sustainability, Ethics and Innovation Committee, shall oversee the correct implementation of and compliance with all of the operating principles and commitments described.

The Board of Directors, through its delegated Committees and, in particular, the Sustainability and Innovation Committee, carries out the oversight to ensure the correct implementation and fulfilment of all guiding principles and commitments established. [...] MERLIN has implemented a new policy that makes it compulsory to calculate the embodied carbon footprint for projects worth more than EUR 3 million and assign an ESG performance rating to suppliers involved in projects worth more than EUR 150 thousand. [...] Include green clauses to encourage energy efficiency in the tenant's operations. 28 tenants signed the green clause in 2023. [...] MERLIN is continuing to install photovoltaic panels on assets in its strategic branch of activities (offices, shopping centres, logistics warehouses and data centers) as part of its Project Sun intended to position itself as the largest developer of self-generated energy in its sector and an essential player in the energy transition. [...] MERLIN has expanded the coverage of the calculation of its Scope 3 indirect greenhouse gas (GHG) emissions in accordance with its Path to Net Zero strategy. [...] MERLIN mitigates its emissions through carbon offset projects based on its gross footprint. These projects include creating orchards and vertical gardens at certain assets and reforestation initiatives. Ultimately, MERLIN offsets the emissions at some of its assets by acquiring removal credits or offsets from certified carbon emissions reduction projects. This takes the form of obtaining carbon offset certificates.

The Board of Directors, through its delegated Committees and, in particular, the Sustainability and Innovation Committee, carries out the oversight to ensure the correct implementation and fulfilment of all guiding principles and commitments established. [...] The Appointments and Remuneration Committee and the Audit and Control Committee, and its main content is the adaptation of the whistleblower channel to Spanish Law 2/2023, of 20 February, regulating the protection of persons who report regulatory infringements and the fight against corruption (Ley 2/2023, de 20 de febrero, reguladora de la protección de las personas que informen sobre infracciones normativas y de lucha contra la corrupción). [...] MERLIN's non-financial risks are managed by the Board of Directors, through the Audit and Control Committee and with the coordination and cooperation of the Sustainability and Innovation Committee and the Appointments and Remuneration Committee, and by senior management with the support of the Internal Audit department. [...] MERLIN's Risk Management System assesses all risks in terms of impact and probability, obtaining a residual risk indicator for the current year, identifies those key performance indicators (KPIs) and key risk indicators (KRIs) to be reported, and assigns those responsible for reporting, and those responsible for implementing or developing the mitigating measures identified for each of the risks. In addition, all risks are assessed in terms of time frame (short, medium and long term), and in terms of speed, persistence and adaptability.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]No, and we do not plan to have one in the next two years