Simon Sustainability Report 2020-2021

METHODOLOGY

WATER The company’s data compiling is consistent with the way inventory for energy and GHG emissions are compiled, whereas Simon defines its organizational boundary conditions with the GHG protocol according to the operational control approach. Therefore, the same boundary has been utilized for water data. The only limitation in the data collection process has been in regard to purchases made directly by the tenant as this information is currently unavailable for reporting purposes. WASTE&RECYCLING Simon’s waste reporting is limited to properties that are only within Simon’s operational control, similar to how energy and GHG data are compiled. 6% of our facilities (12 out of 200 operational control sites that are also corporate entities) were unable to provide solid waste information and 7% of properties (14 out of 200 operational control sites that are also corporate entities) were unable to provide recycling data. Simon’s historical recycling figures have changed year over year. This is due to additional data validation and quality assurance checks that have been established as part of Simon’s waste and recycling data collection process. As we’ve received clarity from sites on information that was historically provided, we’ve worked to update the data to reflect the most current and accurate information. Simon will continue to establish processes and engage stakeholders to increase the comprehensiveness of the waste data. EMISSION FACTORS&GLOBALWARMING POTENTIAL All methodologies are based on guidance from the GHG Protocol. Emission factors are from governmental and non-governmental organizations' sources including U.S. Environmental Protection Agency (EPA), Climate Registry, International Energy Agency (IEA), Department for Environment Food and Rural Affairs (DEFRA), Climate Leaders, and U.S. Energy Information Administration. Additionally, where available, we utilize utility- specific emission factors that support our market-based inventory. As of 2019, we utilize IPCC's Fifth Assessment Report (AR5) as our source for global warming potentials.

Simon's GHG inventory is consistent with the principles and guidance of the World Resources Institute (WRI) and the World Business Council for Sustainable Development's (WBCSD) Greenhouse Gas Protocol Initiative (GHG Protocol) for corporate GHG accounting and reporting. Simon defines its organizational boundary conditions consistent with the GHG Protocol according to the "control approach." This mean's the scope of Simon's organizational boundaries includes locations in the company's ownership or under its control where Simon has responsibility for GHG emissions from these locations. The "control approach" is the most appropriate organizational boundary for Simon because it reflects where Simon can influence decisions that impact GHG emissions. Facilities included in Simon's boundary include retail properties and office buildings. Simon has established GHG and Energy goals that we plan to track over time. As our portfolio changes, Simon strives to ensure that the disclosure of emissions is both consistent and relevant and therefore, have established accounting rules that help account for changes in our emissions over time. As noted in the GHG Protocol, there are certain structural changes that can essentially 'trigger' a recalculation of our emissions. These structural changes include the buying and selling of sites within our portfolio and are defined below: • Acquisition (buying a facility): If SIMON were to buy a facility, we estimate consumption back to our baseline in order to maintain consistency over time. • Divestiture (selling a facility): If Simon were to sell one of their facilities, we would remove consumption information back to our baseline. It's important to include adjustments for both sites that Simon sells and buys to ensure that Simon isn't falsely accounting for emissions reductions that were a result of selling facilities or alternatively, seeing an increase in emissions due to buying additional facilities. Note: Any brand-new construction or complete demolition of a facility is not considered a structural change that will retrigger emission calculations. Therefore, any brand-new construction that Simon undergoes will ultimately impact our emissions trending. Continued efforts in energy efficiency initiatives and other reduction activities will help to offset these impacts. EMISSION FACTORS All methodologies are based on guidance from the GHG Protocol. Emission factors are from governmental and non- governmental organizations' sources including the United States Environmental Protection Agency (EPA), Climate Registry, International Energy Agency (IEA), Department for Environment Food and Rural Affairs (DEFRA), Climate Leaders, and U.S. Energy Information Administration (EIA).

GLOBALWARMING POTENTIAL (GWP) VALUES RELATIVE TO CO 2

GWP values for 100-year time horizon Second

Industrial designation or common name

Chemical formula

Fourth Assessment Report (SAR)

Fifth Assessment Report (SAR)

Assessment Report (SAR)

1

1

1

Carbon Dioxide C0 2

Methane

CH 4

21

25

28

Nitrous Oxide N 2 0

310

298

265

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