Simon Sustainability Report 2020-2021
MATERIALITY ASSESSMENT In previous years, we have conducted a materiality assessment to identify key environmental, social, and governance 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 and current topics are covered within its sustainability framework and roadmap to 2035. SIMONMATERIALITYMATRIX We are focused on addressing the most material topics identified in our materiality assessment. For example, we have 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 minimize 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. SUSTAINABILITYGOVERNANCE Simon’s Sustainability Office is led by the Head of Sustainability, a full-time dedicated employee responsible for managing the company’s ESG programs. The Head of Sustainability reports to the General Counsel on a weekly basis and prepares reports for the CEO and Simon’s Board of Directors. The Head of Sustainability is responsible for climate-related programs including driving energy efficiency, 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 Head of Sustainability leads the ESG Executive Committee (formerly named the Sustainability Executive Committee), which includes C-suite executives from core functions of the Company, including the GC, CFO, Chief Administrative Officer, President of Development, EVP of Simon Management, and SVP of Human Resources. The ESG Executive Committee supervises our sustainability performance, including monitoring climate-related issues, and reports directly to the CEO and Board of Directors. ESG Executive Committee is primarily responsible for setting strategic direction for sustainability at Simon and providing counsel and executive oversight on sustainability initiatives. This team identifies which ESG issues are most relevant to our business and key stakeholders and communicates our approach to managing these risks and opportunities to the Board of Directors.
This Committee provides leadership and oversight to encourage and assure sustainability opportunities are supported and recognized at the highest level of the Company. The Committee is also responsible for all strategic Environmental, Social, Governance (ESG), and climate-related communications. Simon’s Board of Directors 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. 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, which were assessed by an independent corporate jury on scalability, profitability, and novel qualities. The annual winners received company-wide recognition on Earth Day 2021, and a monetary award of $500 USD, totaling $16,500 awarded. Simon will be piloting several of these initiatives in 2021. 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 Program recognizes and rewards 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. ENVIRONMENTAL PERFORMANCE LINKED TO PERFORMANCE PLANS
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