Focus and performance
Focus and
performance
01. Overview
Approach
NEPI Rockcastle strongly believes in its duty to be a responsible corporate citizen and achieve the highest standards of sustainability. Under the guidance of the Board of Directors and the permanent coordination from the Committees, the Group embraces this approach as a driving force of its strategic objectives, influencing relationship management and allowing one unified approach towards internal and external stakeholders.
NEPI Rockcastle’s sustainability outlines its management’s approach to Environmental, Social, and Governance topics with focus on:
- development and maintenance of healthy and sustainable
- being a preferred business partner for our stakeholders and focus on social topics pertaining to the Company’s assets, operations, tenants, customers, suppliers, and the wider community
- creating an attractive, professional and ethical organization.
United Nations Sustainable Development Goals have an important role in the objectives set by NEPI Rockcastle. These are the most relevant for our business:
Sustainability targets
Targets | End year/ set to be delivered | UN SDG | KPIs | Status in 2022 |
|---|---|---|---|---|
Increase energy efficiency
by 20% | 2024 | No. 12 No. 13 | % MWh % Energy intensity | 1% reduction in consumption
compared to 2021 1% increase in intensity compared to 2021 |
Produce renewable energy
for own consumption | 2030 | No. 7 No. 13 | on-site renewable production capacity | Ten assets in Romania with solar
panels installed in 2022 |
Reach a waste recycling rate
of 60% from operations | 2025 | No. 11 | % Waste recycled/total
waste produced during
operations % of recycled waste per visitor | 47% of waste was recycled in 2022
15% increase in recycling rate compared to 2021 |
Achieve zero waste to
landfill from operations | 2025 | No. 11 | Remove avoidable waste
going to landfill | Compost equipment installed in
Bulgarian and selected Romanian
properties, enabling onsite
processing of organic waste, further
diverting waste from landfill |
Decrease (potable) water
consumption by 15% | 2024 | No. 6 | % water consumption % water intensity | 16% increase in the total water
consumption compared to 2021,
due to operating at full capacity and
return of customers to the centres
after pandemic limitations were
lifted (2021 still affected by Covid-19
measures) 3% decrease of water consumption per visitor |
Reduce emissions from operations by 70% | 2030 | No. 13 | Operations carbon footprint | 20% reduction in emissions from own
operations compared to 2021 (scope
1 and 2) 13% reduction in emissions from total operations compared to 2021 |
Reduce embodied emissions from new constructions by 30% | 2030 | No. 13 | Construction carbon footprint | LCA carried out for assets under development with full commitment to analyse and address recommendations |
Continue BREEAM In-Use buildings certification, with a minimum of “Very Good” and above | Ongoing | No. 11 | Number of assets with a
Biodiversity Action Plan | 100% of eligible portfolio has
been certified for their operations
conducted up to December 2022
(excluding strip centres and
industrial) |
Implement a Biodiversity Action Plan for all properties in operation and under development | 2025 | No. 3 | Strategy developed Number of assets | Specific ecology reports and habitat management action plans for BREEAM certified assets |
Link to latest sustainability report
Key sustainability metrics in 2022
23 kg
Carbon intensity
CO2e/m2/year
73%
Assets equipped with highlyefficient LED lighting (by GLA)
10
Photovoltaic
installations
74%
Share of renewable electricity in total electricity
100%
of the properties are BREEAM Certified
Key sustainability progress compared to 2021
-13%
CO2 emissions
-13%
electricity intensity/ 1000 visitors
+15%
waste recycling rate
+11%
share of renewable electricity
-18%
gas and district heating consumption
ESG indicies, ratings and awards
2023 CERTIFICATE OF ACHIEVING: - Gold Award for compliance with its Best Practices Recommendations (BPR) for financial reporting - Silver Award for compliance with its Best Practices Recommendations for sustainability reporting (sBPR)
ESG Risk rated as negligible
AAA ESG rating "leader" industry
In July 2023 NEPI Rockcastle received a rating of AAA (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment *
Prime Label Corporate Responsibility
Environmental, Social and Governance rating
ESG Risk rated as Negligible (7.8/100) by Sustainalytics, a leading independent global provider of ESG ratings.
The company is at negligible risk of experiencing material financial impacts from ESG factors, due to its low exposure and strong management of material ESG issues. The company is noted for its strong corporate governance performance, which is reducing its overall risk. Furthermore, the company has not experienced significant controversies.
NEPI Rockcastle was also included in the FTSE4Good index (founded by FTSE Russell) measuring the performance of companies demonstrating strong ESG.
ESG approach revolves around the following:
- strong focus on corporate governance through compliance with the King IV Report on Corporate Governance in South Africa, and voluntarily implements selected principles recommended in the UK and Dutch codes
- relevant supporter and developer of the communities where it operates
- commitment to achieve the highest standards of sustainability and act as a responsible corporate citizen
- consistent application and continuous improvement of the ESG approach
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02. Commitments
Green Financing link
Suppliers commitment link
D&I policy
Other that will come and will become public
Sustainability Commitment
NEPI Rockcastle is committed to leading the change to a better future by continuously increasing the sustainability efforts and intends that the Group’s business partners to join that effort and share similar ambitions around positive environmental impact, circularity, dialogue and all the ESG pillars respectively. The sustainability commitment with NEPI Rockcastle’s business partners is one of the steps to join efforts for the ambitious points which the Group has to reduce the environmental impact of the building’s operations, as well as in maintaining and improving the existing environmental performance of the buildings. To this extent, the Group directs its efforts on reducing the carbon footprint of its property portfolio.
Green Financing
€1 billion green bonds have been issued under the Green Finance Framework (€500 million in July 2020, and another €500 million in January 2022). Moreover, a green loan agreement was concluded with the IFC in June 2021, undertaking that all proceeds will be allocated as per the Green Finance Framework.
The Company has committed to use proceeds from green bonds and green loans to finance or refinance existing and future projects which improve the environmental performance of the Group’s property portfolio.
Green Financing Framework
Green Bond Report
03. Invest In Healthy And Sustainable Buildings
While climate change and environmental protection are topics of global importance, there are also local and community issues that everyone should be concerned about.
NEPI Rockcastle considers it essential for both companies and individuals to contribute to the preservation of the planet. Environmentally-friendly practices have been implemented in all countries where the Group operates.
The Group makes active efforts to engage with tenants and business partners in order to create awareness and obtain support for the Company's initiatives, as well as positively impact the carbon footprint upstream and downstream in the supply chain.
04. Green buildings
Green Buildings
BREEAM is the world’s leading environmental assessment method and rating system. Buildings that obtain BREEAM recognition have achieved the highest corporate, organisational and environmental objectives, and enhance the continuous improvement capability for sustainable design, construction and operation.
The BREEAM ‘In Use’ certification policy ensures that biodiversity issues are well addressed and promoted to achieve high standards. Once the project has been built and delivered, the Group’s operating management team, particularly the on-site teams that manage each asset, are responsible for maintaining and monitoring biodiversity.
The Group continues to monitor its buildings, to certify or re-certify them, as a measure of its commitment to long-term sustainability. BREEAM certification is a continuous process, where all buildings requiring review and re-certification are analyzed timely by independent authorized consultants.
KPIs/Targets
BREEAM certified assets as at 31 December 2022*
Property | Country | Property Type |
|---|---|---|
*100% BREEAM certified eligible portfolio without strip malls and industrial | ||
Alfa Centrum Bialystok | Poland | Retail |
Arena Centar and Retail Park | Croatia | Retail |
Arena Mall | Hungary | Retail |
Atrium Copernicus | Poland | Retail |
Aupark Kosice Mall | Slovakia | Retail |
Aupark Kosice Tower | Slovakia | Office |
Aupark Shopping Center Piestany | Slovakia | Retail |
Aupark Zilina | Slovakia | Retail |
Aura Centrum | Poland | Retail |
Bonarka City Center | Poland | Retail |
Braila Mall | Romania | Retail |
City Park | Romania | Retail |
Focus Mall Piotrkow Trybunalski | Poland | Retail |
Focus Mall Zielona Gora | Poland | Retail |
Forum Gdańsk | Poland | Retail |
Forum Liberec Shopping Centre | Czech Republic | Retail |
Forum Ústí nad Labem | Czech Republic | Retail |
Galeria Mlyny | Slovakia | Retail |
Galeria Tomaszow | Poland | Retail |
Galeria Warminska | Poland | Retail |
Galeria Wolomin | Poland | Retail |
Iris Titan Shopping Center | Romania | Retail |
Karolinka Shopping Centre | Poland | Retail |
Korzo Shopping Centrum | Slovakia | Retail |
Mammut Shopping Centre | Hungary | Retail |
Mega Mall | Romania | Retail |
Ozas Shopping and Entertainment Centre | Lithuania | Retail |
Paradise Center | Bulgaria | Retail |
Pitesti Retail Park | Romania | Retail |
Platan Shopping Centre | Poland | Retail |
Ploiesti Shopping City | Romania | Retail |
Pogoria Shopping Centre | Poland | Retail |
Promenada Mall | Romania | Retail |
Promenada Novi Sad | Serbia | Retail |
Promenada Sibiu | Romania | Retail |
Serdika Center | Bulgaria | Retail |
Serdika Office | Bulgaria | Office |
Severin Shopping Center | Romania | Retail |
Shopping City Buzau | Romania | Retail |
Shopping City Deva | Romania | Retail |
Shopping City Galati | Romania | Excellent |
Shopping City Piatra Neamt | Romania | Retail |
Shopping City Râmnicu Vâlcea | Romania | Retail |
Shopping City Satu Mare | Romania | Retail |
Shopping City Sibiu | Romania | Retail |
Shopping City Targu Mures | Romania | Retail |
Shopping City Timisoara | Romania | Retail |
Solaris Shopping Centre | Romania | Retail |
Vulcan Value Centre | Romania | Retail |
05. Be A Trusted Partner For Our Stakeholders
As the premier owner and operator of shopping centres in the CEE, the Group aims to be a trusted business partner for the key local stakeholders.
NEPI Rockcastle is creating a positive experience for the community visiting the shopping malls on a daily basis.
The Group ensures, for both visitors and retailers, healthy and safe environment, creating many places to work from and visit.
Visitors
NEPI Rockcastle welcomed close to 294* million visitors in 2022
Retailers
Over 7,000 lease contracts are in place as at 31 December 2022
Communities
The Group operates in the heart of 52 communities clustered around its retail portfolio
Priorities of the Community Engagement strategy
The Group focused on three main pillars that are contributing altogether to more healthy and responsible ecosystems, thus improving people’s lives and lifestyles:
Social and Health
NEPI Rockcastle increased the impact of its social and health education programs by developing a series of scalable projects across its network. It focused on rigorously selected community needs that tackled education and health support, from prevention to intervention. NEPI Rockcastle believes a community should be well informed, well connected with its relevant bodies, with strong networks within the respective community, becoming an engaged, responsible and active part of the society. The Group believes it is its role to support community growth and development, and it chooses to do that in ways that are collaborative, encourage engagement amongst community players, authorities and people. The Group brings all parties together and acts as a facilitator of sustainable engagement.
Environment
Climate change and environment protection are not just global priorities and top policy concerns in Europe, but also local and community issues. Tackling environmental matters starts at the level of each person and the community as a whole. The Group believes that it should also be a practice in everyday life of companies and people to bring their contribution. In this respect, environment responsible actions have been implemented across all countries. Moreover, the Group continuously engages with the tenants and business partners to encourage them to join in this initiative, build awareness and boost support.
Educating communities
NEPI Rockcastle invested in educational programs for children and parents, as it is the belief of the Group that education is the most powerful tool that one can use to truly create positive impact and change the world to a better place in the long run. The Group aligned educational topics with the local communities, bringing them relevant information from various fields of interest: science, parenting, technology, road safety, safeguarding and keeping traditions.
06. Create An Attractive, Professional And Ethical Work Environment
NEPI Rockcastle has a diversified internal management team that possesses strong asset management, sustainability, development, investment, leasing, and financial expertise.
The Company is able to efficiently pursue property opportunities in CEE due to its geographically diverse management skills, resulting in a strategic advantage in acquiring, developing, and managing properties.
The Group's focus on generating long-term performance is driven by skills, engagement, and teamwork of its employees, leading to the creation of value.
The Company is committed to maintaining the highest ethical standards and ensuring compliance with applicable laws and regulations in all of the jurisdictions in which it operates.
2024 CERTIFICATE OF ACHIEVING
Gold Award for compliance with its Best Practices Recommendations (BPR) for financial reporting - view certificates
Gold Award for compliance with its Best Practices Recommendations for sustainability reporting (sBPR) - view certificates
ESG Risk rated by Sustainalitics as Negligible, in August 2024 review
AAA ESG rating "leader" industry
In July 2024 NEPI Rockcastle received a rating of AAA (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment *
Prime Label Corporate Responsibility awarded by ISS ESG
CDP B-
CDP Climate Change B List (score on scale A to D-)
Taking coordinated management on climate issues
