SIGNA Prime Selection AG publishes 2021 Sustainability Report

Highlights in 2021

• Green Finance Framework established
• Issue of sustainable financing instruments with a volume of €250m
• Green lease clauses introduced and re-certifications for buildings in the Long-term Portfolio initiated
• Reporting in accordance with GRI Standards: Core option, first-time application of EPRA Sustainability Best Practices Recommendations, and TCFD

Vienna, July 19, 2022 — SIGNA Prime Selection AG (“SIGNA Prime”) has published its 2021 Sustainability Report. Today, people spend around 85% of their life indoors. SIGNA Prime presents its approach to this far-reaching responsibility toward its stakeholders in the light of climate change under the heading “Responsible Buildings.”

Important steps were taken once again during the past year as part of the ESG strategy “Our sustainable SIGNAture”. Around two-thirds of the sustainability initiatives planned up to 2025 have already been delivered. The focus here is ESG management and the significant progress that has been made in terms of its buildings.

Reduction of greenhouse gases in buildings

SIGNA Prime creates sustainable buildings that make a significant contribution to decarbonization whilst still retaining their value over time. At the forefront are the energy-efficient setup, renovation, and management of the projects to ensure a low-emission life cycle.

Important milestones were reached on this basis in 2021, such as the introduction of green lease clauses in commercial leases, the start of re-certifications of existing buildings, and the voluntary commitment to perform green building certifications in all development projects. SIGNA Prime is working on conversion to green electricity for a gradual transition to low-emission operation of its buildings. Currently, 51% of existing properties (2020: 38%) are supplied with electricity from renewable energy sources.

Timo Herzberg, CEO SIGNA Prime Selection AG: “We want to make a sustainable contribution to livable cities with holistic, modern, and sophisticated concepts. We will fulfill our responsibility to reduce CO₂ emissions in both existing projects and current construction projects as far as possible in the process. We will achieve this through targeted and long-term measures.”

First sustainable financial instruments issued

The volume of green financing issued by SIGNA Prime for the first time in fiscal year 2021 amounted to €250m. The medium-term goal is to cover at least 50% of new financing through sustainable products by 2025.

As the first of several planned issues, SIGNA Prime issued a green promissory note with a volume of €150m in the fall of 2021. In addition, the first green profit participation certificate with a maturity of 20 years and a volume of €100m was issued. Thus, in the first year, around 10% of new financing was already being financed with green finance products.

In line with the EU action plan to promote sustainable financing, SIGNA Prime has made this a priority. The proceeds of green financing instruments will be used exclusively for sustainable projects. The Green Finance Framework, which was published in May 2021, serves as the basis for this.

SIGNA Prime has an excellent ESG rating. The current risk rating from rating agency Sustainalytics is 11.3 (“low risk”).

Introduction of ESG software to collect environmental data

Today, the efficiency of the real estate portfolio is a key success factor when it comes to carefully implementing ESG measures. A software system was introduced in 2021 to collect quantitative and qualitative environmental data on the real estate portfolio. This system made it possible to register the entire portfolio for the first time, which will guarantee continuous improvement and enhancement of data quality.

Further expansion in reporting and governance

The sustainability report was again prepared in accordance with the GRI Standards: Core option. The report also serves as progress report as defined by the United Nations Global Compact. Reporting followed the guidelines of the EPRA Sustainability Best Practices Recommendations (EPRA sBPR) specific to real estate for the first time and contains information on the core areas recommended by the Task Force on Climate-Related Financial Disclosures (TCFD).

In terms of Corporate Governance and Compliance, in addition to implementing ESG criteria in due diligence transaction processes, new guidelines were also published on sustainability, environment and energy, as well as health and safety in 2021. Furthermore, the SIGNA Holding Compliance Management System (CMS) used in the SIGNA Group was certified in the current year in accordance with international compliance standard ISO 37301.

Positive perception of social commitment

SIGNA Prime considers itself a partner for cities. The real estate company develops livable districts and helps increase regional added value in a sustainable way. This understanding is reflected in the new “Strong communities” action area. In the course of a stakeholder survey at the end of 2021, data was collected on how activities were perceived outside the company. The survey elicited a positive response. The majority of stakeholders consulted cited the impact of SIGNA’s business activities on future cityscapes and the character of downtown locations as particularly relevant.

Outlook 2022: Continue to press ahead with decarbonization

Within the framework of the Paris Climate Agreement and the European Green Deal goals, SIGNA Prime is gearing its activities toward achieving a net-zero economy. This will be underpinned by a comprehensive carbon footprint and decarbonization strategy for the entire portfolio. Risk assessment and management of climate and sustainability risks will also be at the forefront in the current fiscal year 2022.

2021 Sustainability Report

SIGNA Prime Selection AG
 

About SIGNA Prime Selection AG

SIGNA Prime Selection AG (“SIGNA Prime”) is one of the largest European non-listed commercial real estate groups, with a Gross Asset Value of €18.8b as of year-end 2021.

It exclusively owns prime downtown properties with a long-term perspective, focused on the largest cities in Germany, Austria, Switzerland, and northern Italy. This includes the luxury department store KaDeWe and the UPPER WEST office tower in Berlin, the Goldenes Quartier as an extension of Vienna’s downtown pedestrian area, and other well-known buildings in major cities, such as Berlin, Vienna, Hamburg, Munich, and Zurich.

Centrally located, established properties are characterized by persistently high demand, enabling long-term contractual agreements. In order to expand this crisis-resistant portfolio and generate value, SIGNA Prime is actively repositioning, modernizing, and rebuilding further city-center assets over the next few years. Thinking in terms of generations, all new buildings are certified according to international green building standards.

Additional information is available at www.signa.at
 

Questions?

Robert Leingruber

r.leingruber@signa.at

+43 1 5329848-0