Simon Sustainability Report 2019

MATERIALITY ASSESSMENT

We have utilized the Global Reporting Initiative (GRI) guidelines for conducting a materiality assessment to identify key environmental, social, and governance risks and opportunities. The outcome guides the prioritization of sustainability initiatives at Simon. As part of Simon’s materiality process, we have engaged with various external and internal stakeholders. Key steps within Simon’s materiality assessment are shown in Chart A. Simon’s material topics are summarized in Chart B. Simon will update this assessment periodically to ensure all relevant and current topics are covered within the company’s sustainability framework.

Chart A: Steps for Completing Simon’s Materiality Assessment

Chart B: Simon’s Key Material Aspects

Ownership of High Quality Retail Real Estate

Step 1: Identify Identify Simon’s key stakeholders and list of potential relevant sustainability topics (through research and dialogue and external sustainability channels, such as research institutes, GRI guidelines, and benchmarking against peers).

Densify Simon's Well-Located Real Estate with Elements that Foster a Live, Work, Play, and Stay Environment

Ethical Business Conduct

Respect of Human Rights

Climate Change Adaptation and Resilience Strategies Energy Management

Low Medium High

Step 4: Prioritize Prioritize material topics based on importance to Simon’s business strategy and stakeholder expectations. Include all high priority topics in sustainability framework and long-term objectives.

Safety

Customer Engagement

Response to Natural Disasters

Community Engagement

Influence on Stakeholders Assessment and Decisions

Step 2: Analyze Assess each topic in terms of its wider economic, environmental, and social impact to understand its relevance to the business and stakeholders.

Water Conservation Health and Well-Being

Biodiversity

Recycling Waste from Operation

Low

Medium

High

Step 3: Validate Discuss outcomes with relevant external and internal stakeholders through one-on-one meetings and group discussions to validate results.

Impact on Business

| SIMON PROPERTY GROUP, INC.

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SUSTAINABILITY REPORT 2019 |