SIMON SUSTAINABILITY REPORT 2022
CLIMATE CHANGE MANAGED AT SIMON CLIMATE-RELATED RISK MANAGEMENT & INTEGRATION PROCESS After completing the risk assessment and finalizing our mitigation plan, our Risk Management Team works alongside third-party risk consultants, who conduct regular site and building surveys and provide a variety of engineering services, across Simon’s 200+ properties.
BEING STORM READY The StormReady program is an initiative led by the National Weather Service (NWS) to help communities prepare for and mitigate vulnerability to extreme weather and water events through advanced planning, education, and awareness. While many Simon centers were previously StormReady-certified at a local level, Simon successfully achieved nationwide StormReady designation across all U.S. properties for the first time in March 2016. In 2022, Simon renewed its nationwide StormReady designation, once again demonstrating the Company’s ongoing commitment to promoting safety and emergency preparedness at its shopping centers as well as in the surrounding communities. KEY ATTRIBUTES OF THE STORMREADY PROGRAM AT SIMON: ■ We have established a 24-hour warning point and emergency operations center. ■ We have more than one way to receive severe weather warnings and forecasts and to alert the public. ■ We created a system that monitors weather conditions locally. ■ We promote the importance of public readiness through community seminars. ■ We developed a formal hazardous weather plan, which includes training severe weather spotters and holding emergency exercises.
■ We inspect our properties’ conditions on a regular basis to assess their weather and climate readiness for risks such as natural disasters, flooding, snowstorms, etc. Upon completion of property assessments, Simon receives customized, comprehensive reports containing necessary information (e.g., finish floor elevations and flood mapping) that permits us to make informed, practical business decisions to mitigate, transfer, accept, or control climate-related risks. ■ We identify and analyze the consequences that may occur if particular risks materialize. The overall impact to the business including financial implication, the costs to mitigate potential risks, and the potential for shareholder or customer concern if a particular risk materializes (e.g., flood maps, sites affected by drought) are all reviewed. ■ Each year, as part of our property insurance renewal process, we perform a thorough loss analysis to determine the most appropriate deductible or other self-insurance amounts and cap based on loss history and loss estimates determined as part of the annual GRC assessment process (e.g., Anticipated Probable Loss, Probable Maximum Loss, or Maximum Foreseeable Loss). This process enables Simon to make informed decisions about appropriate levels of risk retention and minimize the expense of shifting risk to third parties.
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ENVIRONMENT
CREATING SUSTAINABLE CENTERS
CUSTOMERS
COMMUNITIES
EMPLOYEES
APPENDIX
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