Simon Sustainability Report 2021

SIMON SUSTAINABILITY REPORT 2021

MANAGINGPHYSICALCLIMATERISKS

PROCESS FOR OBTAINING CLIMATE RISK DATA: In 2021, the Sustainability team reached out to Simon’s Corporate Security Manager of Administration and Emergency Management (CSM) in order to obtain a risk metric for disclosing climate-related risks. In response, the CSM produced a high-level climate report utilizing the U.S. Federal Emergency Management Agency’s (FEMA) National Risk Index (NRI) data. The NRI data was ideal for a high-level climate-risk assessment, as it assigned each county in the U.S. a risk level (Very Low, Relatively Low, Relatively Moderate, Relatively High, Very High) for each of 18 climate risks, including: Strong Wind / Tornado / Hail / Lightning / Coastal Flood / Riverine Flood / Heatwave / Wildfire / Drought / Volcano / Earthquake / Landslide / Hurricane / Tsunami / Winter Weather / Ice Storm / Cold Wave / Avalanche FEMA calculated the NRI risk scores from three factors: ■ Expected Annual Loss : The average economic loss in dollars resulting from natural hazards each year ■ Social Vulnerability: The susceptibility of social groups to the adverse impacts of natural hazards ■ Community Resilience: The ability of a community to prepare for anticipated natural hazards, adapt to changing conditions, and withstand and recover rapidly from disruptions The CSM then calculated each Simon center’s climate risk for each of the 18 categories listed above by translating the NRI risk levels to a numerical scale of 1 (Very Low) through 5 (Very High) and applying the risk score that corresponds to the county each center is located in. CURRENT AND FUTURE USE CASES FOR CLIMATE RISK DATA: During the discovery phase of the climate risk analysis, Simon’s CSM located several areas where Simon is already acknowledging and utilizing climate information, including existing Simon policies related to heat stress, environmental management, and hurricane preparation, as well as Simon’s Comprehensive Emergency Management Plan (CEMP) which contains specific safety and security policies related to Hurricanes, Earthquakes, Fires, Floods, Tornados, and Hailstorms. The Sustainability team and Simon’s CSM also held meetings with department leaders from Simon’s Risk Management, Property Management, Project Construction, and Financial Reporting to determine additional ways in which climate reporting is currently being used and could be used to benefit the Company going forward. We learned that Simon’s Risk Management team currently utilizes climate risk data by procuring loss modeling for named storm, wind, and earthquake incidents, which is used to inform budgeting allocations, while the Project Construction team engages insurance risk management groups to ensure climate risks such as heat islands, flood hazards, sun exposure, and prevailing winds are taken into consideration during construction planning. Additional use cases could include incorporating a review of climate data during development of capital plans by Property Management and during annual CEMP updates by Security, as well as in the development of climate-related communication protocols. Climate data may also be used in reviews of equipment specifications to ensure they are compliant not only with today’s climate risk, but future anticipated climate changes. By continuing to provide key stakeholders at Simon with information on the ever-evolving climate risk, we can ensure greater protection of our existing assets and improve allocation of resources going forward.

Climate Risks to Simon Centers Top 5 Physical Climate Risks to U.S. Counties Containing Simon Centers

1. Tornado Risk 2. Flooding Risk* 3. Lightning Risk 4. Strong Wind Risk 5. Heat Wave Risk

* Includes both coastal and riverine flooding categories

Climate-Risk Assessment Includes: 190 Simon Properties* 143 U.S. Counties 18 Physical Climate-Risk Categories

* Excludes Properties in Puerto Rico & Canada

Mitigation and Adaptation Actions Taken by Simon 191 Simon Properties are StormReady Certified* Invest in Properties to Prepare Them for Potential Impact of Climate Change Involve Key Stakeholders in Mitigation Plan Carbon Reduction Plan in Place to Mitigate Our Impact on Climate Change * Only Simon Centers in the U.S. and Puerto Rico are eligible for StormReady Certification under the U.S. National Weather Service

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ENVIRONMENT

CREATING SUSTAINABLE CENTERS

CUSTOMERS

COMMUNITIES

EMPLOYEES

APPENDIX

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