Simon Property Group’s (Simon ) 2022 Sustainability Report ® provides information and updates on the Company’s continuing sustainability efforts and achievements. This report includes information from Simon’s real estate activities in the U.S. including Simon Malls, Simon Premium Outlets, and The Mills. ® ® ® The information communicated in this report is based on data for the year ending December 31, 2022—or otherwise explained in the report. Properties that are not managed by Simon, and activities of Klépierre, Taubman Realty Group, and our other platform investments are excluded from this report’s scope. This report contains Standard Disclosures from the Global Reporting Initiative (GRI) guidelines and has been prepared following GRI Standards’ core reporting requirements and incorporates disclosures aligned with the Task Force on Climate-related Financial Disclosures (TCFD). The GRI content index is available at the end of this report.
SIMON SUSTAINABILITY REPORT 2022 CREATING SUSTAINABLE COMMUNITIES
SIMON SUSTAINABILITY REPORT 2022
ABOUT THIS REPORT
INDEX
Simon Property Group’s (Simon ® ) 2022 Sustainability Report provides information and updates on the Company’s continuing sustainability efforts and achievements. This report includes information from Simon’s real estate activities in the U.S. including Simon Malls, ® Simon Premium Outlets, ® and The Mills. ® The information communicated in this report is based on data for the year ending December 31, 2022—or otherwise explained in the report. Properties that are not managed by Simon, and activities of Klépierre, Taubman Realty Group, and our other platform investments are excluded from this report’s scope. This report contains Standard Disclosures from the Global Reporting Initiative (GRI) guidelines and has been prepared following GRI Standards’ core reporting requirements and incorporates disclosures aligned with the Task Force on Climate-related Financial Disclosures (TCFD). The GRI content index is available at the end of this report. For additional sustainability information, please visit investors.simon.com/sustainability.
STATEMENT FROM OUR GENERAL COUNSEL : SUSTAINABILITY STRATEGY
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CUSTOMERS : MAKING OUR CENTERS RESILIENT FOR THE FUTURE
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COMMUNITIES : SHAPING COMMUNITIES, NOW AND IN THE FUTURE
22
ENVIRONMENT : REDUCING OUR ENVIRONMENTAL FOOTPRINT
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EMPLOYEES : CREATING TEAMS THAT CAN MAKE A DIFFERENCE
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STATEMENT FROM OUR GENERAL COUNSEL
DEAR STAKEHOLDERS,
Our properties, employees, tenants, and shoppers are the central focus of our sustainability programs. We have implemented sustainability into our business; from how we plan, develop, and operate our properties to how we do business with our customers, engage with our communities, and create a healthy, safe, productive, and positive work environment for our employees.
Our sustainability framework focuses on four key areas: Customers, Communities, Environment, and Employees. Each of the Board’s committees is tasked with monitoring certain elements of our strategy.
We are well on our way to achieving our carbon-reduction goals. We have set clear ambitions to reduce our emissions by 68% for Scope 1 and 2 carbon emissions, and 20.9% reduction for Scope 3 GHG emissions by 2035. In 2022, we achieved a significant reduction of 65% in Scope 1 and Scope 2 absolute emissions from 2013 baseline, demonstrating that Simon takes its commitment to sustainability seriously.
We invite you to review our sustainability report and see for yourself how our ESG program provides the basis for future benefits and improved results for our business, and the communities we serve.
Thank you for your continued support.
Sincerely,
Steven E. Fivel General Counsel & Secretary Simon
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KEY HIGHLIGHTS 2022
EXTERNAL RECOGNITION Simon has consistently been recognized for its sustainability disclosure and performance by third parties.
193 Centers are WELL Health-Safety Rated 1
77 Green Building Certifications (IREM)
1,261 EV charging stations in place for 124 properties in 2022
Carbon Disclosure Project: Achieved an A- score.
GRESB: Received a Green Star rating, the highest designation for sustainability in the real estate industry awarded by the Global Real Estate Sustainability Benchmark (GRESB) (2014–2022).
$4.3B Total state sales tax generated and collected
OVER 3,500 Community engagement events 12,555 hours of staff time dedicated $2.9M+ raised at fundraising events
26,126 Students supported through Simon Youth Foundation in the past 25 years
Awarded 2022 Leader in the Light Award for retail property sector by Nareit for demonstrating outstanding sustainability practices.
1. In March 2022, Simon renewed its WELL Health-Safety Rating at 193 centers
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THIS IS SIMON A GLOBAL LEADER IN RETAIL REAL ESTATE AND AN S&P 100 COMPANY
173M Square Feet of GLA in North America COMPANY HIGHLIGHTS 2022
PORTFOLIO HIGHLIGHTS
196 U.S. Portfolio Properties 1, 2
INTERNATIONAL PORTFOLIO 2
U.S. PORTFOLIO 1, 2
94 107 Properties Simon Malls ® 69 30 Properties Simon Premium Outlets ®
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$5.3B Annual Consolidated Revenues
Million Square Ft
Million Square Ft
Premium Outlets
Premium Outlets (Canada, Japan, Malaysia, Mexico, South Korea, and Thailand) 23 Designer Outlets (Austria, Canada, France, Germany, Italy, the Netherlands, Spain, and the UK) 11 Designer Outlets
Million Square Ft
$75.6B Approximate Total Market Capitalization
The Mills ®
14 21 Properties
Million Square Ft
Owner and operator of 24 regional, super-regional, and outlet malls in the U.S. and Asia Interest in The Taubman Realty Group 80%
22.4% Interest in Klépierre
1. As of December 31, 2022 2. Sustainability reporting boundaries excludes non-managed domestic properties and international properties, except for certain managed properties in Canada.
A publicly traded real estate company based in Paris with a portfolio of high-quality shopping centers in 14 European countries
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CREATING SUSTAINABLE CENTERS At Simon, we define and implement sustainability initiatives that consider all aspects of our business. This approach enhances the communities in which we operate and also generates long-term shareholder value by embracing opportunities, improving the bottom line, and mitigating environmental and social risks.
Solar panels at The Mills at Jersey Gardens ®
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SUSTAINABILITY STRATEGY Our sustainability vision is to lead the way in sustainable retail real estate development and operations in the U.S. We are committed to creating sustainable centers that bring people together and enhance communities. To achieve this, we have strategized our efforts into four key focus areas.
GOING 360° We aim to create sustainable value by investing in shopping centers that offer more than retail experiences. We prioritize vibrant spaces where people can Live, Work, Play, Stay, and Shop. Our Going 360° approach means we work closely with local teams, offer an attractive tenant mix, and create safe, healthy, and visually appealing venues. Our portfolio improvements keep us responsive to customers’ changing needs. Going 360° is central to our commitment to create sustainable value for stakeholders.
CUSTOMERS Responding to customer needs and assisting our tenants to succeed in their business by enhancing the shopping experience at Simon centers
COMMUNITIES Building strong communities through development and engagement activities that have a meaningful social and economic impact at the local level
ENVIRONMENT Effectively developing and operating our properties with innovative solutions that reduce our environmental footprint as well as our operational costs
EMPLOYEES Maintaining a culture that attracts and retains the sector’s best talent through thoughtful employee engagement
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360° COMMITMENTS
FOCUS AREA
COMMITMENTS
STATUS 2022
Continuing to expand our tenant engagement initiative to collaborate with tenants and develop strategies to reduce our Scope 3 carbon emissions by 20.9% by 2035
See the Green Retailer Collaboration on page 17 for more information
CUSTOMERS
In 2022, 193 properties covering over 191M square feet, had been certified under the WELL Health-Safety Rating™ for Facility Operations and Maintenance; See page 18
Maintaining the WELL Health-Safety Ratings at our centers through 2022
Providing EV charging stations at 100% of our properties
1,261 EV charging dispensers in 2022; See page 14
Creating a positive impact on over 207 million residents living near our centers
In 2022, we supported communities with over 3.5K programs and activations; See page 23
COMMUNITIES
Graduating the 30,000 Simon Youth Foundation (SYF) students by the end of the 2024–2025 academic year
26,126 SYF total graduates since inception; See page 27 for details
Roll our community engagement program, ‘Love Simon’ throughout our operations
In the Northeast Central region, we rolled out our Love Simon Program; See page 24
68% reduction in Scope 1 and 2, and 20.9% reduction in Scope 3 GHG emissions by 2035
See status against the Science Based Targets initiative on page 39
ENVIRONMENT
Preparations are currently in progress to develop an initial low carbon transition plan
Developing a low carbon transition plan in 2023
Increasing the number of green building certifications annually
Guidelines in place are being used; See page 40
Over 41 initiatives participated with the Sustainability Innovation Award in 2022; See page 34
Establishing an annual employee Sustainability Innovation Award
EMPLOYEES
Participating in the Disability and Equality Index (DEI) annually, and being named among DEI’s Best Places to Work for Disability Inclusion™
Recognized as a Best Place to Work for Disability Inclusion by the Disability Equality Index (DEI) in 2022; See page 52
Providing Ethics training to 100% of full-time employees within 30 days of hire
Over 300 new hires completed the Business Ethics Training in 2022
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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
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COMPENSATION AND HUMAN CAPITAL COMMITTEE
GOVERNANCE AND NOMINATING COMMITTEE
ESG EXECUTIVE COMMITTEE
AUDIT COMMITTEE
■ Assist the Board in reviewing and overseeing the Company’s policies relating to sustainability, including ESG matters (except as may be specifically retained by the Board or delegated to other Board committees). ■ Assist and generally advise the Board on ESG matters, including overseeing the Company’s ESG strategy and related goals and policies, and periodically review with management the Company’s progress towards the achievement of such strategy and goals.
■ Primarily responsible for setting strategic direction for sustainability at Simon and providing counsel and executive oversight on sustainability initiatives. ■ Identifies which ESG issues are most materially relevant to our business and key stakeholders and communicates periodically with the Board of Directors. ■ Provides leadership and oversight to encourage and assure sustainability opportunities are supported and recognized at the highest level of the Company. ■ Responsible for all strategic ESG and climate-related communications.
■ Oversee and discuss with management the Company’s annual disclosure of its sustainability, including ESG matters and efforts in the form of an annual sustainability report.
■ Oversee human capital management, including but not limited to management succession planning, D&I, and talent development. ■ Periodically review and make recommendations to the Board, as appropriate, with respect to certain of the Company’s human capital management strategies and policies, including with respect to matters such as D&I, management succession planning, workplace environment and culture, and talent recruitment, development, and retention.
ENVIRONMENTAL PERFORMANCE LINKED TO PERFORMANCE PLANS In 2020, Simon initiated the Sustainability Innovation Award for those employees who proactively implement or identify new, innovative solutions that contribute to reducing the environmental impact of our centers while simultaneously increasing their profitability. Employees were encouraged to submit their ideas, and they were assessed by an independent corporate jury on scalability, profitability, and novel qualities. The annual winners received company-wide recognition on Earth Day 2022 and each received a monetary award of $500USD. Read more about the contest in the Environment chapter. In normal operating years, employees at Simon have financial and non-financial incentives to achieve Simon’s ESG objectives. All corporate employees, including those not normally part of a bonus plan, are eligible to receive a discretionary or calculated bonus as a result of the Company’s financial performance. Some of the factors considered include performance indicators that are the result of energy-efficiency and emission-reduction efforts. In addition to a monetary award, the Simon Employee of the Month and Employee of the Year programs recognize and reward employees who show exemplary performance in their jobs. The General Counsel, who is part of Executive Management, leads the Company’s sustainability program, including investor-focused climate change-related communications, supporting tenant-focused climate change-related initiatives, emissions reduction, and energy-efficiency initiatives. The success of the program impacts a portion of his compensation.
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STAKEHOLDER ENGAGEMENT
JOINT VENTURE PARTNERS —Partnership Relations Team —Identify Opportunities for Investment in Green Infrastructure at JV Properties (e.g. On-Site Solar, Building Certifications, etc.) —Ad Hoc ESG Requests
A foundational core for our sustainable business success is stakeholder engagement. These relationships allow for ongoing dialogue through which we can better understand business needs and concerns, and then take action to improve our performance. The stakeholder engagement process is applied across Simon’s portfolio of existing properties and new development activities. The process involves analyzing and identifying the most relevant stakeholders, assessing procedures for engaging (such as frequency and method), and determining level of engagement (corporate, property, and/or project). Simon’s leadership carefully reviews the feedback from these engagements and integrates them into our strategic planning.
TENANTS —On-site Meetings to Collect Feedback and Increase Tenant Satisfaction —Green Lease Clauses —Fit Our Guidelines —Programs Connecting Tenants with Customers Including: MyPark Express Parking, Fillogic, etc. —Dedicated ESG Collaboration Program
INVESTORS —Annual Reports —Annual Proxy Statements —Annual Stockholder Meetings
—Investor Presentations —Quarterly Earning Calls —Investor Relations: Individual Investor Meetings, Including ESG-Specific Meetings
GOVERNMENT & INDUSTRY RELATIONS —Regular Interaction with
SHOPPERS —Digital Directories —Shopper Interviews —Social Media Channels —Feedback Forms —Enhanced Experiential Programs Including: Clicks to Bricks, Dropit, etc.
Local, State, and Federal Governmental Authorities —National Association of Real Estate Investment Trusts (NAREIT): Member of Real Estate Sustainability Council —Member of the International Council of Shopping Centers (ICSC)
SUPPLIERS —New Suppliers Code of Conduct —On-Site Meetings and Engagement —Collaborate with Local Suppliers
COMMUNITIES AND NGOs —Collaborate on Industry Initiatives and with Industry Associations —Provide Spaces for Non-Governmental Organizations (NGOs) —Founder of Simon Youth Foundation —Partner with Local Non-Profit Organizations to Provide Philanthropic Support to the Communities
EMPLOYEES —Simon Employee Association (SEA) —Talent Acquisition, Training, and Talent Development Programs —Succession Planning —Performance Management/ Continuous Feedback
—Corporate Core Values —D&I Policy and Council —Governance Policies
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UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS
EDUCATION Through Simon Youth Foundation, we are able to substantially increase the number of youth and adults who have relevant employment skills, including technical and vocational skills. Over 26K students have benefited from this program since 1998. GENDER EQUALITY Simon’s D&I program supports and promotes equal opportunity for all. Additionally, Simon Youth Foundation provides equal opportunities for all students who want to participate. A diverse group of students were enrolled in 2022–2023, with nearly two-thirds from underrepresented groups, and 50% were female students. AFFORDABLE AND CLEAN ENERGY By purchasing renewable energy, Simon is able to support the United Nations Sustainable Development Goal by utilizing clean energy across our portfolio. We are committed to increasing usage of renewable energy in the coming years to reduce our carbon impact. SUSTAINABLE CITIES AND COMMUNITIES By 2030, Simon aims to provide access to safe, affordable, inclusive, accessible, and sustainable transport systems—with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities, and older persons—by improving road safety and expanding public transport. For this reason, Simon is rolling out EV charging stations to all centers. RESPONSIBLE CONSUMPTION AND PRODUCTION By 2030, Simon will substantially reduce waste generation at its centers through prevention, reduction, recycling, and reuse. Educating and collaborating with our tenants and visitors on recycling are essential focus points for Simon. We have rolled out a tenant education program that outlines the availability of recycling programs, announces improved signage at centers, and regularly communicates reminders about proper implementation of recycling programs. We have also worked with tenants to roll out a pilot program that will enable them to recycle hard-to-recycle materials. CLIMATE ACTION Thanks to updated protocols and procedures, Simon has been able to add sustainable property certifications to its portfolio, increase its use of renewable energy, and anticipates addressing climate change in all business activities through its low-carbon transition plan, currently in development.
The United Nations Sustainable Development Goals (UNSDG) provide a blueprint for achieving a more sustainable future, encompassing a broad range of sustainability topics such as climate change, environmental degradation, equal opportunities, and quality education. Simon is committed to aligning its sustainability strategy, programs, and commitments with the underlying actions and priorities of the UNSDG in order to contribute to a better world for all. Simon has identified key areas where it can make a positive contribution toward achieving these UNSDGs. For further information on our 2022 initiatives, please refer to the report. Alternatively, you may click on the icons located on the right-hand side of the page for direct links to the relevant sections.
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CUSTOMERS MAKING OUR CENTERS RESILIENT FOR THE FUTURE At Simon, we are dedicated to providing a healthy and safe environment for our shoppers, tenants, employees, and the communities we serve, and this commitment remains unwavering. Our goal is to serve as the epicenter of commerce and community, and to become the ultimate destination for Live, Work, Play, Stay, and Shop experiences in each of our markets. To achieve this vision, we are continuously exploring exciting projects that feature state-of-the-art residential opportunities and cutting-edge office and commercial spaces.
The Westchester, New York
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INNOVATIVE SHOPPING At Simon, we aim to always be at the forefront of enhancing the shopping experience for our shoppers, and in doing so, we have implemented several new initiatives to seamlessly bring our shoppers and tenants closer than ever. SIMON SEARCH ™ A tool designed to enhance the shopping experience for customers and retailers. This innovative platform allows shoppers to easily search for products across multiple retailers and check real-time inventory. Available at local Simon center websites, mobile apps, and interactive directories, Simon Search is the first of its kind to offer retailer-supplied data directly to customers at this scale. With over 1M monthly uses, Simon Search has become an essential tool for shoppers and retailers alike. SIMON ® AMERICAN EXPRESS ® CREDIT CARD An innovative way to reward customer loyalty, the Simon Credit Card offers customers up to 3% back on purchases at Simon centers and up to 5% back at participating retailers. This incentivizes cardholders to direct their spending at Simon destinations, rewards them for their loyalty, and drives incremental sales to brands and retailers. LIVESTREAMING This new feature enables retailers to connect with customers virtually, in real time. Filmed in conjunction with key retail seasons and on-site events like National Outlet Shopping Day™ (NOSD), SPO livestream events feature curated collections chosen from 200K+ products. Livestreaming offers a unique showcase for brands, bringing the shopping experience direct to consumers with event hosts interacting with customers in real time. This allows customers to shop their favorite Simon Premium Outlets and Mills from anywhere, anytime. AUGMENTED REALITY By embracing new technology, we are enhancing the retail experience through augmented reality (AR). Consumers are able to experience an unexpected “surprise and delight” during Beauty Week and Holiday with augmented reality Instagram filters. Through the magic of auto-zoom and real-time motion tracking, AR virtual transformations add fun for everyone and drive social sharing.
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SET UP STRONG PARTNERSHIPS FOR RETAILERS In 2022, Simon set up a partnership with Leap, the retail platform for modern brands. Both Simon and Leap are focused on helping brands, especially those that are digitally native, expand as omnichannel retailers. This partnership will start with four stores across California and Florida, including True Classic Tees at Los Angeles’ Del Amo Fashion Center ® and ThirdLove, Sugarfina, and Goodlife at Florida’s Town Center at Boca Raton. ® The collaboration with Leap allows Simon to introduce growing brands to the value of brick-and-mortar retail, a pivotal time where stores are top of mind with almost every brand growing in the U.S. The speed and nimbleness of the Leap model supports streamlining the expansion process in multiple centers. Simon and Leap have years of experience in helping brands select top, data- driven locations for their business. This level of expertise and collaboration is unprecedented and invaluable, particularly as retailers recognize the need to be omnichannel and look to open brick-and-mortar locations around the country. The partnership between Simon and Leap is a true example of how Simon aims to team up with innovative partners to support their retailers. Simon has a longstanding commitment to sustainability, and this partnership reinforces that commitment. The platform supports retailers by providing more data and insights with less overhead, resulting in customers and sales.
We’re thrilled to be expanding our footprint with Simon. The team invested in our Series B raise, and now, we’re pooling our competitive advantages and data-driven approach to deploy the next generation of brands in prime shopping centers across the country. This collaboration, in addition to opening physical stores, is also enabling brands to rapidly build and scale an omnichannel retail presence. Amish Tolia Co-founder and Co-CEO at Leap
Our retail expansion wouldn’t be possible without the Leap platform, so the fact that Leap is working with Simon makes us even more excited for the future of our brand.
Andrew Codispoti Co-CEO at Goodlife
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EXPANDING ELECTRIC VEHICLE CHARGING Simon has long been committed to promoting sustainable transportation options, and our efforts in the electric vehicle (EV) charging arena are a testament to this commitment. In 2022, we increased the number of open-to-the-public EV charging dispensers to 1,261, an increase of 72 from the previous year, across 124 centers nationwide. This steady annual increase is a reflection of our commitment
U.S. EV CHARGING STATIONS
to welcoming guests who choose sustainable transportation options.
Our EV network continues to expand, with an emphasis on increasing the number of properties hosting EV charging infrastructure and increasing the number of charging dispensers available at centers. Currently, 1,043 charging dispensers are Level 3, and 218 are Level 2. Simon is dedicated to installing EV charging at 100% of qualified properties. To date, we have EV charging available for public use at 69% of our properties. We are also working closely with our key strategic EV charging partners to identify additional opportunities for EV charging installations across our portfolios in the months and years ahead.
SIMON’S EV CHARGING NETWORK GROWTH: 2014-2022
1300
100% 90%
1,261
1,189
1100
80%
985
900
70%
60%
772
700
50%
567
500
40%
30%
300
240
20% 1O%
100
0%
(100)
2014
2018
2019
2020
2021
2022
■ CHARGERS
■ PERCENTAGE OF PROPERTIES WITH CHARGERS
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GOING 360: CREATING URBAN ENVIRONMENTS IN THE 21ST CENTURY
Over the past decade, Simon has been actively investing in new developments and redevelopments that align with the Simon 360° Live/Work/Play/Stay/Shop concept. Brea Mall ® in Brea, CA, is a prime example of this approach and is set to include even more exciting features, including high-end housing and a luxury fitness center. The proposed redevelopment project will cover a 15.5-acre area of the 74-acre property, with plans to demolish the vacant 161,990-square-foot building that previously housed a department store and its associated auto center, along with about 7.5 acres of adjacent parking space. In its place, a new mixed-use development will be built, featuring retail, sit-down dining options, high-end fitness, more green spaces, and an eight-story, 380-unit luxury apartment complex with subterranean and podium-level parking.
With the department store building sitting vacant for years, the redevelopment project is expected to be a major win for the city and community residents. The addition of bike lanes with the proposed development as well as on the surrounding public rights of way are also part of the plan, creating a connection to the Tracks at Brea multi-modal pathway. The connectivity together with the beautiful outdoor pedestrian plaza for gatherings, concerts, and other special events make this a truly community-forward project. The project received unanimous approval from the Brea Planning Commission in December 2022 and is set to be presented to the City Council in the summer of 2023 for final approval.
We are excited for reinvigorating those aspects of the mall, adding some unique and different uses, such as the fitness center and residential uses of the mall. Jason Killebrew Community Development Director
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SUPPORTING ENTREPRENEURS AT SIMON
In our pursuit of showcasing new brands that align with our values, Simon is excited to introduce Weird & Different, a clothing and apparel company founded by Romereo Brown Jr., in 2020. The brand’s mission is rooted in celebrating authenticity and uniqueness, promoting a positive message that encourages customers to embrace their differences, and stand out in a retail world often dominated by stereotypes. Romereo’s personal experiences with being born deaf in his right ear and struggling with speech throughout his childhood inspired him to create Weird & Different. Rather than hiding his insecurities, he chose to embrace them, and in doing so, found his calling to inspire others to do the same. By his junior year in high school, Romereo had graduated from speech development courses and was ready to make a difference in the world. The choice to operate in Broadway Square ® in East Texas was a conscious decision for Romereo, as he wanted to remain connected to his community while providing an opportunity for customers to see and feel the products in person. With 90% of the clothing made locally in Dallas, Weird & Different is committed to sustainability and transparency. Romereo believes that knowing where a product comes from is essential to his brand’s success, and he wants his customers to share that belief. Looking ahead, Romereo plans to visit high schools in 2023 to start an anti- bullying campaign and give away free clothes while sharing his inspiring story. Romereo believes that by encouraging young people to be themselves, he can help them realize their full potential and find success by staying true to their authentic selves. At Simon, we are proud to partner with brands like Weird & Different, which align with our values of sustainability, authenticity, and community engagement. We look forward to seeing the impact that Romereo and his brand will continue to make in the retail industry and beyond.
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GREEN RETAILER COLLABORATION The buildings sector is responsible for a staggering 40% of global carbon emissions, from both construction and operation. Decarbonizing this sector is vital to meet the targets outlined in the Paris Agreement and the United Nations Sustainable Development Goals. At Simon, the carbon footprint of our shopping centers heavily depends on the activities of our tenants, with approximately 83% of our greenhouse gas emissions associated with their operations. To achieve our goal of reducing Scope 3 carbon emissions, we have committed to a 20.9% reduction by 2035 as part of the Science Based Targets initiative (SBTi). To achieve this goal, Simon launched a green retailer collaboration program in 2021. Both Simon and our retailers have ambitious environmental programs and goals, but there is a need for structured collaboration between landlord and tenants. By actively engaging and collaborating with our tenants on sustainability projects of mutual interest, we can streamline our processes and achieve better financial and environmental results at scale. This collaboration will not only reduce our carbon footprint but also elevate Simon’s reputation as a sustainability leader in the industry and the retailers in their respective sectors. Working together, we can make significant progress towards a more sustainable future. Simon introduced the Go Green Retailer of the Month initiative at Roosevelt Field, ® Garden City, NY, in 2022 to encourage our tenants to reduce their environmental impact. J.Crew has been awarded the first-ever Go Green Retailer of the Month award for its exceptional efforts in sustainability. The J.Crew team has made great strides in recycling the most single-use plastics in 2022. J.Crew has an active program in place to lower its greenhouse gas emissions through its recycling programs, the use of sustainably sourced and organic materials, as well as incorporating recycled and renewable materials in the company’s products. We applaud J.Crew’s commitment to environmental stewardship and hope that its efforts inspire other tenants to join us in our sustainability journey.
STRATEGY FRAMEWORK ‘GREEN RETAILER COLLABORATION’
EDUCATE EDUCATE AND SHARE INFORMATION
COLLABORATE WORK TOGETHER ON EVENTS AND SET COMBINED TARGETS
ACT TAKE ACTION AND IMPLEMENT BEST PRACTICES
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SIMON SUSTAINABILITY REPORT 2022
WELL HEALTH-SAFETY RATED CENTERS In 2022, Simon proudly announced that 193 properties, covering over 191M square feet, had been certified under the WELL Health-Safety Rating ™ for Facility Operations and Maintenance. Simon continued to prioritize the health and safety of its customers and employees by renewing the WELL Health- Safety Rating. The WELL Health-Safety Rating, which is evidence based and third-party verified, focuses on operational policies, maintenance protocols, stakeholder engagement, and emergency plans to address public health concerns and prepare organizations for future crises. By obtaining the WELL rating, Simon has taken proactive measures to address the health and well-being of its customers and retailers. Simon’s commitment to health and safety has been evident through the implementation of rigorous operational policies aimed at improving cleaning practices, reducing respiratory particle exposure, and reducing surface contact. These measures, coupled with comprehensive emergency response protocols, including business continuity and promotion of health and well-being management, have contributed to Simon achieving the WELL Health-Safety Rating. By prioritizing health and safety, Simon has shown its commitment to creating safe and healthy environments for all. Burlington Mall, ® located in northwest suburban Boston, is committed to providing a safe and healthy environment for its visitors. The property has received the WELL Health-Safety Rating, which demonstrates its dedication to promoting the health and well-being of its users. In response to the pandemic, the mall has implemented several health and safety measures, including clear cleaning and sanitization procedures, emergency preparedness programs, and continuous monitoring of air and water quality through air treatment systems and legionella management plans. The Village, located next to Burlington Mall, features tenants that provide health services to the community. These include All Eye Care Doctors, Lifestyle Health Weight Loss & Wellness, Relax The Back, StretchLab, and SkinMD. By providing access to these health services, Burlington Mall is promoting a healthy lifestyle for its visitors and contributing to the overall well-being of the community.
Burlington Mall - WELL Health-Safety Rated
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SIMON SUSTAINABILITY REPORT 2022
GIVE BACK BOX Simon partnered with Give Back Box ® in 2022 to provide an effortless and convenient way for our shoppers to donate their gently used clothing and accessories. By using this initiative, our customers can reduce waste and ensure that used products are given a second life, which aligns with our commitment to sustainability. Give Back Box is a third-party donation service that partners with over 170 charities across the country. We have worked with Give Back Box to provide our shoppers with free shipping labels and instructions, which can be completed using recycled cardboard boxes. Shoppers can select the items they wish to donate, package them nicely in the box, print the shipping label, and choose the charity they want to donate to. Finally, they can take their package to their local shipping center. Give Back Box also supports recycling by giving corrugated boxes a secondary use, reducing the need to develop a new product and minimizing waste from products that are no longer in use. Through our partnership with Give Back Box, our shoppers have returned over 1,264 boxes in 2022, supporting charities such as American Cancer Society, Salvation Army, Planet Aid, and organizations that supported refugees from the Ukraine. We are excited to continue this partnership and help our shoppers make a positive impact on their communities and the environment.
Simon is the finest roof for retail in the U.S. By partnering with them, we help the most important brands in America to be more sustainable and generate effortless help for others within existing resources. Simon is like a ship steering retail in the right direction, and we are so proud to be on the same course. With their help, we are reaching more brands and helping
more people. Monika Wiela CEO and Founder at Give Back Box ®
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SIMON SUSTAINABILITY REPORT 2022
CUSTOMER SAFETY FIRST As a Company, our commitment to providing healthy and safe environments for our employees, shoppers, tenants, and the communities we serve remains unwavering. It is our vision to be the epicenter of commerce and community, and Simon aims to become the ultimate Live/Work/Play/Stay/Shop destination in each of our markets. Some of our most exciting projects feature state-of-the- art residential opportunities and ultra-modern office and commercial spaces. Simon Security Program, the top security program in the retail real estate sector, is dedicated to providing safe environments for shoppers and employees across the country. Simon’s Operational Intelligence Center (OIC) provides security monitoring services to 74 properties and life-safety alarm systems and intelligence monitoring services to 193 properties. The OIC’s centralized approach promotes efficiency, continuity, and situational awareness, while providing exceptional customer service through standardized training and work-flow management. Simon Corporate Security has expanded the implementation of CCTV camera towers and solar-powered LPR camera systems to supplement traditional security measures. The new towers and camera systems offer superior video quality and added features such as lighting, intercom connectivity, and exception-based alerting. Simon has also incorporated contraband-detection K9’s, a program that involves the strategic deployment of highly trained dogs and armed, uniformed handlers in certain mall interiors during peak periods. Shoppers are encouraged to engage with the dogs, who are specifically trained to be friendly to the public. These new programs were showcased during the Simon Law Enforcement Summit in September 2022. The Summit brought together several hundred stakeholders, including executive law enforcement leaders, Simon property managers, luxury tenant security executives, and more, for a two-day interactive event that stimulated networking opportunities and nourished public/private partnerships from across the country. The 2022 Law Enforcement Summit facilitated engagement with leading technologies that support Simon’s collaborative and adaptive security strategies.
2-DAY Summit organized in 2022
74 Properties receive the full suite of services from Simon’s Operational Intelligence Center
193 Properties receive Life Safety Alerting and Intelligence services from Simon’s Operational Intelligence Center
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SIMON SUSTAINABILITY REPORT 2022
CENTERS ACCESSIBLE FOR ALL At Simon, we aim to create sustainable centers for all of our customers, no matter their background or physical or mental limitations. Simon centers provide accessibility
207M+ Total Residents in Proximity of our Centers
solutions for our shoppers and all regular occupants. We’ve added a feature to our interactive directory maps that, when selected, shows wayfinding routes that use ramps and elevators instead of stairs and escalators. Our interactive digital directories, which are accessible in four languages, also come to life when a shopper comes within a few feet of the 65 ˝ LCD, full HD touch screen. We have also included the locations of many handicapped parking space areas on our maps and within our interactive directories, as well as a special wheelchair mode that shifts the entire directory down to a lower height and makes it easier for someone in a wheelchair to use. Our apps and websites list which centers offer complimentary wheelchairs to assist shoppers planning a visit to the mall. For our online visitors, we’ve remediated many of our websites to achieve conformance to the Web Content Accessibility Guidelines (WCAG) 2.0, which provides guidance on how to enable content to be more accessible to people with disabilities, including visually impaired shoppers.
201M Website Visits
193 WELL Health-Safety Rated Centers
1.3K+ Interactive Digital Directories
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SIMON SUSTAINABILITY REPORT 2022
COMMUNITIES SHAPING COMMUNITIES, NOW AND IN THE FUTURE At Simon, we are committed to building strong communities at the local level by promoting development activities and social initiatives. We have supported Simon Youth Foundation for over two decades, and by investing in individual lives through education, we have demonstrated the positive impact that is achievable when people are motivated and empowered to believe in a future greater than themselves.
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COMMUNITY ENGAGEMENT In 2022, we supported communities with over 3.5K programs and activations, including community educator appreciation, art installations, carnivals, health fairs, job fairs, and holiday celebrations. We also organized 210 fundraising and not-for-profit awareness events, disaster relief efforts, and raised $2.9M+ in funds. Additionally, we supported non-fundraising events such as blood drives, food drives, farmers markets, and Girl Scout cookie sales, totaling 2,085 events. Simon annually sponsors the National Black MBA Association ® , aligning with our responsible citizenship core value. The NBMBAA’s mission is to provide growth and educational opportunities for historically underrepresented students, entrepreneurs, and professionals. PROMOTING VOLUNTEERISM AT SIMON Simon supports activities that enhance, benefit, and serve the communities in which we live and work. This aligns with one of our core values, responsible citizenship. The Simon Employee Association (SEA) is an internal resource that promotes volunteer opportunities for employees. Through SEA, Simon corporate and field employees volunteer and participate in a variety of local and national philanthropic programs and fundraising events. These include supporting local food banks, homeless shelters, and blood banks. In 2022, Simon employees supported fundraising events with over 12,555 hours of their time. A PARTNER FOR THE COMMUNITY
3,518 Properties engaged in community engagement efforts
12,555 Hours of staff time dedicated to hosting fundraising events
2,085 Non-fundraising events (e.g., blood drives)
210 Fundraising events
$2.9M+ Raised at fundraising events for charity
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SIMON SUSTAINABILITY REPORT 2022
LOVE, SIMON At Simon, we believe in giving back to the communities we serve, and our regional offices are committed to supporting local causes. In the Northeast Central region, we continued to roll out our program called “October Acts of Service.” This program gave our property teams a day to contribute acts of service in support of a worthwhile cause in their communities during the month of October.
CREATING GREENER COMMUNITIES Team members at Orland Square, ® Orland Park, IL, supported BeeHaven, a nonprofit organization focused on creating and preserving pollinator habitats for bees, butterflies, bats, and birds. The team participated in a tree planting event in Burnham, organized by the Chicago Region Trees Initiative (CRTI). The initiative aims to improve the health, diversity, and equitable distribution of trees in the Chicago region to benefit people and communities. Walt Whitman Shops, ® Huntington Station, NY, and Smith Haven Mall, Lake Grove, NY, teams partnered with the North Shore Land Alliance (NSLA) to remove invasive plant species from local habitats such as the pollinator garden, shoreline, and wet meadow. This helped to maintain a healthy ecosystem and protect local wildlife. The project provided an opportunity for team members to connect outside of work while giving back to their community and the environment.
HABITAT FOR HUMANITY In the last year, Bay Park Square, Green Bay, WI, and Dover Mall, ® Dover, DE, teams partnered with Habitat for Humanity. Volunteers helped revitalize residential buildings, repair homes, and provide safe housing for families in need. This collective action serves as a powerful example of positive impact. We remain committed to supporting our communities meaningfully and are proud of our team’s work.
SUPPORTING LOCAL FOOD BANKS The Menlo Park Mall, Edison, NY, team supported their local food bank REPLENISH, which supplies dairy, frozen, fresh, and shelf-stable foods to over 150 food pantries, soup kitchens, and social service organizations in Middlesex County. Their goal is to ensure that all residents have access to nutritionally adequate food and necessities. The Roosevelt Field, Garden City, NY, team also hosted a charitable event. They assembled Thanksgiving bags, filled with stuffing, gravy, and cranberry sauce, to provide Thanksgiving dinner for more than 5K families in need.
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