Simon Sustainability Report 2021

SIMON SUSTAINABILITY REPORT 2021

SCIENCE-BASEDTARGETS In the period 2013-2021, we reduced our direct energy consumption by 32% and our carbon footprint by 67%. At Simon, we are taking deliberate steps to minimize our carbon footprint. Therefore, we fully support the Science Based Targets initiative (SBTi), a joint initiative by the Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute, and the WWF. Simon has committed to reduce absolute scope 1 and 2 GHG emissions by 68% by 2035, from a 2019 base year. We have also established an SBTi approved 2035 target to reduce our absolute scope 3 carbon emissions for our downstream leased assets by 20.9%. A cornerstone of our efforts will be robust engagement with our tenants to encourage them to adopt science-based targets themselves and invest in renewable energy and other efficiency measures to reduce their operational emissions. We know that given our large number of tenants, meeting our target will be a challenge but we will continue to share our knowledge in this area with, and extend our relationship with this critical stakeholder group.

BASELINE EMISSIONS BY SCOPE 2019 - Scope 1 and Scope 2 2018 - Scope 3

ENERGY CONSUMPTION (MWh)

900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0

220,851

21,129

MWh

1,001,385

2016

2017

2018

2019

2020

2021

Energy (MWh) 2016-2021

ABSOLUTE EMISSIONS FROM SCOPE 1 AND SCOPE 2 (METRIC TONS OF CO 2 e)

350,000 300,000 250,000 200,000 150,000 100,000 50,000 0

2035 TARGET EMISSIONS BY SCOPE

70,672

6,761

CO2e

792,096

2016

2017

2018

2019

2020

2021

PROGRESS TOWARD SCIENCE BASED TARGETS 8 :

Emissions (mtons CO 2 e) 2016-2021

● Scope 1

● Scope 2

● Scope 3

● Electric Power ● Natural Gas ● Other Energy/Emissions Sources*

Base Year

Base year emissions

2021 Emissions

Percent Reduction Since Base Year

(TENANT EMISSIONS ONLY)

GHG emissions: Scope 1+2 (CO 2 e)

Energy Source (MWh)

2016

2017

2018

2019

2020

2021

% Reduction (2013-2021)

-50.70%

2019 241,980 119,230

Electric Power

652,381

626,998

589,392

565,948

442,313

494,069

-30.28% -56.45%

Natural Gas

58,561

61,342

35,728

38,819

21,839

26,908

GHG emissions: Scope 3 (CO 2 e)

Other Energy Sources*

60,783

52,001

56,408

60,726

38,977

49,686

-22.36%

-14.90%

2018 1,001,385 852,639

Total

771,725

740,341

681,527

665,494

503,130

570,664

-31.61%

Emissions Source - Scope 1 +2 (mtonsCO 2 e)

To meet the 2035 goal, we are making changes to our environmental program, and have designed several scenarios on how to achieve the targets. We will finalize our low carbon transition plan in the next two years and will break down the actions to take over the next 5, 10, and 15 years.

2016

2017

2018

2019

2020

2021

%Reduction (2013-2021)

Electric Power

273,286

262,588

228,320

215,489

93,117 3,966

97,334 4,886

-70.86% -56.41%

Natural Gas

10,632

11,137

6,486

7,049

Other Energy Sources*

14,841

13,035

15,276

19,441

14,729

17,010

2.16%

Total

298,760

286,759

250,082

241,979

111,812

119,230

-67.05%

* Other energy/emission sources include chilled water, diesel, ethanol blends, gasoline petrol, propane, and refrigerants.

We follow the GHG Protocol Corporate Standard for our greenhouse gas inventory. For our GHG data tracking, we use the operational control boundaries since they most accurately reflect the day-to-day practices of our business and are most relevant to retail real estate.

8. See GRI Table for full emissions breakdow n

43

ENVIRONMENT

CREATING SUSTAINABLE CENTERS

CUSTOMERS

COMMUNITIES

EMPLOYEES

APPENDIX