During the year, the Group Head of ESG reports periodically on the findings of ESG-related risk assessments and internal controls to CTP's Board of Directors via the Sustainability Committee. Based on this reporting, the Sustainability Committee advises and recommends actions and targets, which the Board approves. Climate-related considerations are factored into the remuneration of the Executive Directors. See Section 5.3.2.2 for more information. The identified material IROs addressed by the board during the reporting period, are presented in Section 7.3.1. Since 2023, CTP publishes the results of its risk assessments and internal controls in an integrated report, as in this Annual Report. [...] CTP's Board of Directors established the Sustainability Committee in 2022 to strengthen and formalise ESG oversight at the Group level. The committee meets at least quarterly and prepares the Board for decision making on sustainability-related issues, including the skills required in the Company. The topics identified by CTP's 2024 DMA provide input for the committee's agenda. [...] Through the Group Head of ESG Management, the Group Head of Risk Management and Modelling, the Group AML Compliance Officer, and the Group HR Director, CTP possesses the sustainability-related expertise required to oversee its material ESG-related IROs and inform the senior management as part of their decision-making process. Through the Sustainability Committee Chair, CTP can leverage sustainability-related expertise at the Non-Executive level. See Section 5.1.1 for Ms. Eickermann-Riepe's biography. The Group Heads of the ESG Management and Risk Management and Modelling departments meet with the Group CFO and COO weekly to inform them of sustainability matters and concerns that require the Board's attention. The Group Head of ESG is also a regular guest of the Sustainability Committee to inform them on ESG-related issues, including physical and transition climate risks. For all major transactions—including acquisitions, land purchases, financing, and lease agreements—CTP ensures that ESG-related considerations are assessed as part of the approval process. In their decision making, the senior management consider, among others, the legal, technical, and environmental matters included in sustainability-related due diligence processes. [...] CTP deploys a multi-layered structure for identifying and managing risks throughout the Group's activities, including ESG-related risks. CTP's ESG department supports the Risk Management department in identifying and managing ESG-related risks facing the Group, including those related to the construction of new buildings, acquisitions, and property management. The ESG department also interacts with other departments as well as external stakeholders, coordinates the collection and management of internal, property-level data (e.g., relating to emissions, energy consumption, HR statistics, etc.) and prepares reporting in accordance with multiple standards, often using external partners for certification. As part of the data collected is done manually, human error is possible. The delivered data is reviewed and approved on the country level. These roles are segregated within CTP's data collection system, where reporters and approvers do not have overlapping rights. CTP has internal controls in place. During these controls, approved data is randomly checked against evidence. These controls are executed at the Group level. Additional internal control processes require that the collected data is compared against different periods and that outliers are verified. Where errors or inconsistencies are identified, corrections are mandated. Lastly, once a year, as part of reporting preparation, CTP invites an external party, different from the statutory assurer, to review the collected data as described in Section 4.2.1."
"CTP's Transition Plan for Climate Change Mitigation is approved by the Board of Directors. The Sustainability Committee monitors progress on its execution, while GHG emissions, EPCs, and other targets are reported annually through the Annual Report. [...] All activities of CTP as a corporate citizen (e.g., charitable donations, educational, and infrastructure support) must follow CTP's Code of Conduct and Group Anti-Bribery and Corruption Policy. CTP staff are prohibited from making any political contributions on behalf of a CTP Group entity. [...] The duties of the Audit Committee include supervising and monitoring as well as advising the Board and each Director regarding the integrity and quality of the Company's financial and sustainability reporting and the effectiveness of the Company's internal risk management and control systems. The Audit Committee is advised by the Sustainability Committee on the integrity and quality of the sustainability reporting. The Audit Committee advises the Board on the exercise of certain of its duties. It also supervises the submission of financial information by the Company, compliance with the recommendations of internal and external auditors on, among others, integral reporting, the Company's policy on tax planning, and the Company's financing arrangements. It assists the Board with the Company's information and communications technology and maintains regular contact with and supervises the external auditor, and it prepares the nomination of an external auditor for appointment by the General Meeting. The Audit Committee issues preliminary advice to the Board regarding the approval of the financial statements and the annual accounts, the annual budget and major capital expenditures. [...] The Sustainability Committee advises the Audit Committee on sustainability reporting. The members are Ms Eickermann-Riepe (Chair) and Ms Knoflach (member). CTP is in the process of gathering more knowledge on ESG-related risks and opportunities. In weighing business risks, the ESG component is valued, and the expectation is that this process will mature over time.