SIMON SUSTAINABILITY REPORT 2022
MATERIALITY ASSESSMENT In previous years, Simon has conducted a materiality assessment to identify our key environmental, social, and governance (ESG) risks and opportunities. As part of Simon’s materiality assessment, we have engaged with various external and internal stakeholders. The assessment outcomes are set forth in Simon’s Materiality Matrix. Simon will update this assessment in the next year to ensure all relevant topics are covered within its sustainability framework and roadmap to 2035. SIMON MATERIALITY MATRIX We are focused on addressing the most material topics identified in our materiality assessment. For example, we strengthened our commitments to fight climate change and set higher GHG reduction targets approved by the Science Based Target initiative (SBTi) in 2020. We have also intensified our focus on the health and safety of our tenants, customers, and employees by taking clear actions to reduce their risks. While the customer and community engagement programs we have in place show the positive impact Simon has had, we are looking ahead for additional ways to meet these stakeholders’ long-term needs. SUSTAINABILITY GOVERNANCE Simon’s Sustainability efforts are handled day-to-day by the Sustainability Department, led by a full-time dedicated employee responsible for managing the company’s ESG programs. The Director of Sustainability reports to the General Counsel on a weekly basis and prepares reports for the CEO and Simon’s Board of Directors. The Director of Sustainability is responsible for climate-related programs including the development of Simon’s low carbon transition plan, driving energy-efficiency projects, encouraging the utilization of renewable energy, promoting green technology innovations, as well as developing and executing sustainability awareness programs for communities, customers, investors, and employees. Our Director of Sustainability leads the ESG Executive Committee, which includes C-suite executives from core functions of the Company, including the General Counsel, Chief Financial Officer, Chief Administrative Officer, President of Development, Executive Vice President of Simon Management, and Senior Vice President of Human Resources. The ESG Executive Committee supervises our sustainability performance, including monitoring climate-related issues, and provides periodic reports directly to the CEO and Board of Directors. Simon’s Board of Directors, through certain standing committees, oversees Simon’s plans and prospects to assess and monitor progress on addressing the
major climate change risks it faces. The Board of Directors may take a variety of actions to manage climate-related risks and opportunities. These may include implementing policies and procedures for assessing and managing material ESG risks and opportunities, and integrating and adapting our strategic and operational planning, including capital expenditures. The allocation of ESG oversight responsibility among the Board’s committees is set forth in their respective charters located on our website. Each of the Board’s committees will monitor the elements of ESG and D&I for which it is responsible.
SIMON’S KEY SUSTAINABILITY MATERIALITY ASPECTS
2
1
7 8
3
4
5
6
13
10 9
12 11
14
LOW
MEDIUM
HIGH
IMPACT ON BUSINESS
1.Ownership of High-Quality Retail Real Estate 2.Densify Simon’s Well-Located Real Estate with Elements that Foster a Live, Work, Play, Stay, Shop Environment 3.Energy Management 4.Climate Change Adaptation and Resilience Strategies 5.Health and Safety 6.Ethical Business Conduct
7.Respect of Human Rights 8.Customer Engagement 9.Community Engagement 10.Health and Well-Being 11.Water Conservation
12.Recycling Waste from Operation 13.Response to Natural Disasters 14. Biodiversity
7
CREATING SUSTAINABLE CENTERS
CUSTOMERS
COMMUNITIES
ENVIRONMENT
EMPLOYEES
APPENDIX
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