MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Risk and Opportunity Drivers Potential Financial Impacts Policies and Regulations 1. Tightened building energy codes Increased capital investment and guidelines and expenditures to meet these requirements 2. Increased ambition of national Increased capital investment decarbonisation strategies and and expenditures to support roadmaps these strategies and concurrent energy efficiency programmes Decreased operating costs due to the improved energy efficiency of buildings 3. Introduction of carbon pricing in Increased expenditures for operating markets compliance 4. More stringent public disclosure Increased expenditures requirements for meeting these new requirements Need to attract green investment and diversify financing sources Market, Reputation and 1. Increased market demand for Increased revenue due to shift Liability climate-resilient properties in market preference 2. Increased market demand for Increased revenue due to green and energy-efficient potentially higher rental properties premiums for green buildings 3. Increased tenant demand for Increased revenue due to energy efficiency and data improved tenant satisfaction transparency and experience Lower operating costs due to improved energy efficiency 4. Growing investor demand for Attract green investment and green and low-carbon finance and diversify financing sources investment 5. Potential increase in insurance Increased expenditures due to premiums increased insurance premiums 6. Increased exposure to reputation Decreased revenue due to shifts and litigation risks in market preferences SUSTAINABLE DEVELOPMENT REPORT 2022 234