Grand City Properties SA

While the Company does not directly engage in lobbying activities or make donations to political parties, we recognise the pivotal role of trade associations in shaping policies and influencing societal actions and finds these to be appropriate forums for engaging with emerging climate policy in the EU. In selecting and renewing our memberships, we consider the extent to which an organisations' values and commitments resonate with our dedication to sustainability ambitions. We are members of the German Property Federation, Zentraler Immobilien Ausschuss (ZIA), the European Public Real Estate Association (EPRA), and the German Sustainable Building Council, Deutsche Gesellschaft für Nachhaltiges Bauen (DGNB). As of the time of this publication, our internal review of the climate positions of these associations has found a high degree of alignment with our own policy positions. However, if misalignments are identified in the future the Group would first engage the relevant organisation to address the misalignment, and in the case of irreconcilable differences terminate its membership.

Our governance structure incorporates consideration of sustainability issues at both the strategic Board level and the management level. Our Sustainable Business Strategy is set by the Board of Directors, with operational oversight from the Board's Chairman, Mr. Christian Windfuhr. The Board of Directors acts independently of any conflict of interest, representing the best interests of the Company's base of shareholders. The Board is made up of three independent directors, who are elected by the General Meeting. The success of the Board of Directors and senior management in meeting their remit, and their compliance with corporate governance rules, are assessed annually. They are overseen by five committees, consisting mostly of independent directors: these are the Risk Committee; Audit Committee; Remuneration Committee; Nomination Committee and ESG Steering Committee. The Chairman of the Board of Directors has direct responsibility for ESG topics and chairs the ESG Steering Committee, which also includes the Head of Sustainability, Head of Energy, Chief Operating Officer and Head of HR. The Committee meets at least twice a year, with additional meetings called as required and is charged with overseeing strategic guidance on ESG topics and providing direction to the Sustainability Department. The Sustainability Department acts as a cross-departmental interface, working across the Group to implement and monitor sustainability programs and initiatives at an operational level. It is led by the Head of Sustainability and reports directly to the CEO and Chairman of the Board of Directors. The Department also prepares the Group's materiality analysis and ESG reporting, as well as responds to enquiries by investors and rating agencies on ESG topics. It collaborates closely with the Energy Department, which applies its engineering expertise to implement the technical elements of our sustainability strategy.