Good afternoon, everyone. My name is Anelisa. I am the Chief Sustainability Officer of Redefine Properties. Thank you very much for joining us for our ESG annual investor presentation. Now, my job today is to give you an overview of our ESG strategy as it currently stands. So much more importantly, I'm also going to talk you through the implementation journey that we have undertaken, especially in FY 2023, and where we feel that is going to lead us as a business. First things first, let's do some housekeeping. There is a Q&A function. Please do use it, and I will make sure that towards the end of the presentation, there's plenty of time for me to answer any questions that come from the floor. What you'll also be receiving tomorrow is obviously a thank you note, as well as a short survey, for us to really start to understand what you as investors expect from us from an ESG perspective in the long- term, as well as what other views you may have regarding the integration of ESG when it comes to the real estate sector as a whole. I do encourage you to please participate in that. Those insights are always very valuable to us. Let's talk about today's proceedings. We're going to start with an overview of the strategy as well as some of the key wins and the key challenges that we're currently experiencing. We'll then cross over to the environmental section, where you'll see that as much as our solar PV is one of the, key elements of our strategy, we really have quite a few initiatives on the go, and we're making real progress. We'll then go to the social side of ESG, wherein we will explain to you how stakeholder engagement is really aiding the scaling up of our ESG initiatives across the board. Lastly, we'll talk about governance and really focusing on ESG governance, our sustainable finance, facilities and our framework, as well as the target-setting process that we have undertaken, which I think has really made strides since FY 2021 when we first introduced our own clear ESG targets. I will quickly close the presentation, and then we'll go into Q&A. Let's start with an overview. W e really are focused on scaling up our ESG initiatives, and ultimately the point is to create demonstrable value both for ourselves and for our key stakeholders, as well as to manage many of the sustainability-related risks and opportunities that face us as a business. Both Redefine and EPP are required to have long-term ESG strategies in place. Obviously, those strategies are quite sensitive to the risks and opportunities that we face in each region. In terms of our operational control boundary, we still apply our ESG strategy to all properties under our operational control, but we're certainly doing a lot of work, especially during this current financial year, to start bringing in outside managed properties and making sure that from an ESG perspective, they really are living our key priorities. As much as I've said it before, I think it's worth just re-emphasizing. W e really focus on embedding ESG into every critical stage of the life cycle of our properties, and that, I think, is one of the elements that sets us apart. Right from development phase, right through to the management phase of our standing investments, and eventually to the recovery or disposal phase, the point of our investment strategy when it comes to ESG is to make sure that ESG considerations are not just treated as a box-ticking exercise but are actively incorporated into the overall investment decision-making process as well as into the nuts and bolts of how exactly we manage our assets on a day-to-day basis. Maybe just quickly touching on our overarching values. Our purpose is to create and manage spaces in a way that transforms lives, and that is why so many of our targets are really focused more on impacts than they are on inputs, which I think can sometimes have mixed results. I think once we start focusing on outcomes and long-term impacts, we really know that the initiatives that we have are going to create sustainable value for our stakeholders. You'll see as well, our vision is to be the leading South African REIT. I think as we go through the presentation, you'll see that the evidence speaks for itself when it comes to ESG. Our mission in this decade is to deliver the smartest and most sustainable spaces the world has ever known. Even though it is going to take quite a bit of time and a massive amount of effort, I think we've made substantive progress in terms of getting to that overarching 2030 goal by really focusing on tangible implementation in 2023 and going forward. Obviously, of course, our values really hold us together. I think in order for us to really implement the ESG strategy, it's important for us to live those values in terms of how we reach our decisions and how we execute them as well. Just to give you a quick recap, these are our Moonshot pathways, which are now part of our mission statement. ESG, although on the face of it falls within being a catalyst for good, it's worth noting that all of these different pathways are necessary for us to really achieve our ESG strategy. For example, we don't stand much of a chance of improving the ESG governance of our data processes without mobilizing digital transformation. As I'll make clear as we go along, there is no chance of us actually being able to achieve the UN SDGs if we don't nurture and optimize our ecosystems and really bring our key stakeholders into our ESG journey. You'll just see here, we have actually embedded the UN SDGs and our approach to the UN SDGs within our Moonshot pathways, which I think is market leading. From a stakeholder engagement perspective, this is our updated stakeholder matrix. Obviously, this matrix is situational, depending on the nature of the relationship we have with a particular stakeholder. It's worth noting as well that even though it will take time to embed. A lot of the content that you're going to see over the course of this presentation speaks directly to value that we have created for one or more of the stakeholders in this matrix, and we are able to prove that now tangibly, which I think we're quite proud of. EPP, I think, is also on the journey with us to make sure that that stakeholder engagement strategy is really focused on the effectiveness of those relationships going forward. This is just an overview of our UN SDGs. Nothing really has changed since 2022. E ven when we are setting targets around our sustainability strategy, we take great pains to make sure that those targets are specifically aimed towards helping to achieve one or more of the UN SDGs. They're not just a throwaway element or paragraph in our strategy. They really underpin how exactly we measure progress and determine our impact. Similarly, EPP has also got a set of SDGs that it has determined through a materiality analysis, which really takes into account the operating conditions within Poland as well. It's not all roses. As much as we've got to opt for the upside, there are several key challenges that we're facing in terms of implementing the strategy. I think from an environmental perspective. I don't need to tell all of you the impact of load shedding. Even from an environmental perspective, obviously business continuity in our context comes first, and we are forced to burn diesel generators in order to keep the lights on, especially when load shedding intensifies. That is unfortunately having quite a negative impact on our Scope 1 carbon emissions. Similarly, I think we are also driving significant progress in terms of the reduction of our Scope 2 emissions, as I'll explain later on. Wheeling of renewable energy, I think, is one of the key drivers in terms of actually helping us unlock the opportunities within a low carbon economy. The reality of the situation is most local municipalities prohibit it, and that's why we're so proud to have been included in the City of Cape Town's Wheeling Pilot, and that solar PV plant on Massmart Brackengate will come online in the coming months. I think there's a lot that has been said on energy, but there's quite a lot that needs to be said on water, and the fact that the supply and the security of our water going forward, I think is going to become very precarious. That is why it's so important for us to make sure that sufficient resources are devoted to making sure that we have enough access to water, and we can ensure that our tenants can continue to trade during water outages, which unfortunately are becoming increasingly frequent. From a social perspective, a lot has been said about the socioeconomic instability that's currently caused by poverty and inequality in South Africa. I think there's a lot to be said around the fact that it provides us an opportunity to really make sure that our properties are embedded within the communities that surround those properties and actually that enable the success of those properties in the long- term. From a social and governance perspective, and this is why I'm hoping that that survey tomorrow is going to help. There still seems to be quite a bit of divergence in terms of how investors and funders approach ESG, as well as ESG integration into key investment decisions. Similarly, I think what we're seeing in the EU is that the financial institutions are really expecting a large amount of focus to be placed on decarbonization strategies at an asset level, and that's also driven by the EU Taxonomy. EPP has published its inaugural climate risk report, which went out a couple of months ago. You'll see that, in response to those pressures. Ea ch and every property's climate risks are actually mapped out in quite a bit of detail. Lastly, I think as much as there has been a convergence on sustainability-related key concepts internationally, there still is some area of ambiguity. Ultimately, there's certain questions that need to be answered, and I think a lot of issuers, including ourselves, are really going to have to grapple with how exactly they quantify the sustainability-related risks and opportunities facing the portfolio in the manner envisaged within frameworks and standards such as the ISSB, IFRS S1 and S2 standards. Look, let's go to what we've achieved so far, and I think it's important to contextualize this in light of what I've just said now. W e've got our top green-rated assets in SA and EPP, and we are incredibly proud to celebrate the fact that three of those assets have achieved a Net Zero Carbon Level 2 certification based on the operational performance of those assets. Even if you look at the percentage of the portfolio in South Africa, EPP and ELI, that are covered by Green Star or BREEAM certifications respectively, we really have improved the coverage of our certifications, which really shows that these green principles for us are not just talk. They are being embedded, and we are holding ourselves accountable against those best practice principles. I'm very excited to also present to you our energy sourced from renewables. It's so interesting to look at the journey here, where in FY 2020, 6% of our total energy consumption was made up of consumption of renewables, whereas with the City of Cape Town wheeling pilot and the other wheeling arrangements that we have in place, by FY 2025, that number is going to be sitting at 22.5%. What's even more exciting is that that number is conservative because it's based on our current energy consumption. As we improve the energy efficiency of our buildings, the relative consumption of renewables is actually going to increase even further. Let's quickly talk about the business case for ESG, and you'll start seeing some of these principles play out in the slides to follow. I think when it comes to yielding projects, we are starting to see real cost savings come out for ourselves and for our tenants. Ultimately, they will depend on the utility arrangement within the building concerned. Ultimately, even when you're looking at office spaces, we are seeing very encouraging evidence of international tenants and brokers actually prioritizing Green Star rated offices. Similarly, I'll talk more about green leases as well, but when it comes to social projects, what is quite positive is that as much as they help us mitigate some of the socioeconomic risks that our properties face, it's so encouraging to see tenants start to get involved and start to show an increase in interest in some of those socioeconomic development projects. We're gonna be talking about that later. From a governance perspective, I think the efforts that we've put in to improve the governance of our ESG strategy has allowed us to continue to participate and remain relevant in sustainable finance markets, as well as to measure and monitor our ESG KPIs. Let's turn over to environmental and start at the beginning. This is just an overview of our carbon footprint in South Africa and in EPP respectively for FY 2022. Our FY 2023 respective carbon footprints are currently being prepared. You'll see here, especially if you compare to previous years, our Scope 1 emissions have gone up because of diesel consumption in the generators. What's quite interesting is that our Scope 3 emissions have actually decreased. Scope 3 emissions, to remind you, are primarily made up of electricity consumed within tenanted spaces. From an EPP perspective, if you actually track the journey there since 2019, which is their baseline for determining their ESG performance, their carbon footprint has actually been reduced by about 24%, and that has been achieved primarily through efficiency-based interventions, which is really encouraging, and I think it sets a blueprint, for both of our portfolios to really start decarbonizing in the future. From a physical risk perspective, first, before I get in deep into the jargon, let me helpfully explain the different concepts. Your physical climate risks are the risks of storms and flooding, extreme weather events, but they also include more long-term, risks such as droughts, for example, which have already hit several parts of our country. The transition risks, on the other hand, are really focused on the risks of the transfer or the transformation of the South African economy into a low carbon economy. Changes in market sentiment, changes in regulation, changes in the requirements from financial institutions all do pose a risk if we do not adequately anticipate and manage them. That's why I think going back to physical risks, the fact that we've actually mapped out for South Africa and EPP an asset by asset assessment of the different exposures, the different climate risks, really puts us in a very strong position, because now going forward, we are able to also apply that same methodology to any assets that we may include into the portfolio, and similarly start to manage some of the transition risks associated with that, such as through insurance. Ultimately, I think it is going to fall upon us to make sure that from a design perspective, our assets are strong enough to withstand the increasing frequency and severity of these extreme climate events and ultimately continue to trade no matter what may come next. From a net zero perspective, I mean, we've mapped this out. We actually started mapping this out back in 2021, if you recall. I'm proud to actually show you the amount of progress that we've made and how this kind of journey has really developed, because we've actually just completed a complete net zero strategy, which very clearly maps out how exactly we are going to approach net zero throughout our operations, which I think is going to be very useful, even when it comes to decisions around budgets and the selection of appropriate environmental projects. It's worth noting, I think this pathway here is aligned with international best practice. Why that's important is that there are already several local regulations as well as, of course, the EU Taxonomy in Europe that are already starting to show that a lot of these principles you see on the screen are going to become regulated. Our assets, for example, most of them are located in local municipalities that are signatories to the C40 Cities initiative, which is a global initiative whereby municipalities actually commit towards net zero by 2050 for all of the assets within their boundaries. Ultimately, this positions us quite well to make sure that we can actually take advantage of that as opposed to being on the back foot when eventually these regulations come to pass. This just gives you an overview of our long-term environmental strategy. W e've incorporated energy, water, waste, and climate-ready design. I think it's worth noting here that some of the things that we've put on the screen are going to be hopefully achievable by 2050, but some of them are going to be extremely stretching and difficult to maintain. Getting a building to 60 kWh per sq m of energy intensity is incredibly difficult, especially given how large the building is, how dense the building is, et cetera. It's worth noting as well that some of these targets are not confined to landlord-controlled common areas. They also incorporate the entire building, which includes the tenanted spaces. That's why it's so important for our tenants to follow us on the journey, because listen, I can go out and order LED lighting for the entire portfolio. And actually we've covered most of the common areas in retail and office with LED lighting. But ultimately, if our tenants are going to leave the lights on or if our tenants are not going to manage the air con, and commit to those good behaviors, a lot of that good work can become undone. By the way, I say that about tenants, but it applies equally to us as landlords. A lot of these ambitions are going to be heavily influenced by the behavior of ourselves as well as our key stakeholders. Let's talk about energy management. I think a lot has been said, and I don't think we're going to stop talking about our renewable energy strategy. We've got about 40 MW of renewable energy currently installed with more to come. It's worth noting here that this is just the energy that has been installed on rooftops. More can be done once the wheeling arrangements we already have in place come on board, and once the municipalities start to accommodate us from a regulatory perspective so that we can actually start incorporating offsite renewable energy sources. R enewable energy is part of the story. The other part of the story is obviously diesel, which I mentioned earlier, as well as energy efficiency. It's worth noting any interventions you choose to use in terms of renewables, et cetera, is ultimately going to be influenced by the building's energy demand. You optimize the energy demand, you can get more out of your renewables. That's why I think from an efficiency perspective, this is just an example, we actually introduced a set point temperature adjustment to the air conditioning facilities in about 12 office and retail buildings. This was about three months ago. We're already seeing an average cumulative projected monthly reduction of ZAR 5.8 million in the cost of electricity across those buildings. This is what we're trying to achieve, because that didn't cost us any money. That was simply something that we influenced through behavior. Enough from me. We're going to transition over to a video from my colleague, Victor Matthey. He is our Sustainability Project Manager, and he is going to talk to you a bit more around our energy management strategy. What is Redefine's current approach towards energy management? Redefine's ESG framework is based on the UN SDGs, and we've set clear targets to reach by 2030. UN SDG 13 is applicable here as it requires urgent action to combat climate change and its impacts. The aim is to reach net zero, which requires a two-pronged approach to energy management. Firstly, improving energy efficiency and also increasing our generation of renewable energy through rooftop solar PV plant. How is Redefine really focusing on and improving its energy efficiency? At present, we're prioritizing efficiency interventions that are relatively capitalized. As at December 2022, emissions associated with electricity sold to tenants amounted to 92% of our total emissions. We've thus started introducing smart metering solutions to provide tenants real-time data on how they're using energy. Currently, we've got over 5,000 smart meters installed in the portfolio, and these meters help the tenants manage their usage, which translates into lower bills for them and a smaller carbon footprint overall. We've also embraced LED lighting solutions as they're typically 50% more energy efficient than their fluorescent counterparts. We've installed over 45,000 LED light bulbs over the last two financial years, saving 11.8 MWh of electricity annually. Through energy efficiency assessments, we investigate lighting, heating, ventilation, and air conditioning, as well as IT equipment such as smart building intervention. It's crucial that the energy management process be based on clear assessments. This will help us determine renewable or energy storage opportunities to further explore. That's very insightful, but renewable energy is obviously a very hot topic at the moment. Could you tell us a little bit more about Redefine's solar PV strategy and footprint? Sure. With the reality of load shedding in South Africa, our solar PV plants are crucial to fulfilling our ESG commitments and creating value for our stakeholders. We have achieved one of the largest solar PV rollouts in the South African REIT sector. Our current solar generation capacity is 31.9 MWp, which meets roughly 7% of our electricity demand, and there's currently an expansion project underway of 12.9 MWp worth ZAR 142.5 million. Obviously, with this discussion comes a lot of opportunities. Where do you see further opportunities for Redefine to expand its solar PV footprint in its portfolio? We are excited about opportunities for wheeling as provided by the City of Cape Town pilot project. What this would mean for future renewable energy projects in our spaces, not just in the City of Cape Town, but in other municipal areas as well. I would go so far as to say that renewable energy and solar PV is the flavor of the year, but batteries really seem to be the flavor of the month. Could you tell us about Redefine's approach towards battery integration when it comes to its overall energy management strategy? Battery storage is currently the buzzword in the South African energy market or energy sector. It's atop solar PV, I would think, at this point in time. Unfortunately, purchasing batteries as a substitute for diesel generators is expensive, and they require extensive storage space. We thus need to determine whether they will be installed solely to address load shedding, or whether we can create long-term value for our stakeholders through the in-installation of batteries. Installing batteries purely to alleviate the effects of load shedding requires that we make assumptions around the average load shedding we will experience. Should the load shedding issue be resolved, the batteries may then become largely obsolete. Luckily, there are other opportunities for battery use. At Kwena Square, for example, we have installed batteries during the development of that asset. The battery systems spec'd for that installation was purely to assist us to free up some capacity during peak times, because the grid in the area is quite constrained. The battery system is integrated with a solar PV plant as well as the generator, which allows some reduction in cost on diesel cost for that specific asset. Other opportunities that exist around battery technology is energy arbitrage, where you can charge batteries in off-peak time slots, where energy is cheaper, and discharge batteries in peak time slots when energy is more expensive. That allows for a cost offset or a reduction in the cost for energy in peak times. You're substituting expensive energy with cheap energy, if that makes sense. Another opportunity is for peak shaving, where you can discharge batteries in your peak usage period to alleviate the draw from the grid during that peak time. Well, I hope you enjoyed that video. Victor really has an amazing way of explaining very complex concepts in quite a simple and straightforward manner. Let's talk about our water strategy. I think, once again, going back to that net zero example, our focus really is on looking at the efficiency of our buildings from a water consumption perspective. That's why, in addition to rolling out smart water meters across the portfolio, we've also looked at the installation of Propelair toilets, which are water-efficient toilets that reduce your average water consumed per flush from about 9 liters a flush down to 1.5 liters a flush. What is quite useful is that we've seen a cumulative projected annual saving of about ZAR 2.4 million across 21 office and retail properties where we've installed these toilets. Bearing in mind, of course, we only started that process in July of 2022. It's worth a note of caution that the anticipated savings from these toilets ultimately are going to be influenced by on-site behavior, such as, for example, responsible leak detection, and responsible water consumption practices on site. That is why for us, from an efficiency perspective, it has to be a combination of water-efficient technologies as well as responsible behavior. I just wanted to include a case study here. This is from the Golden Walk Shopping Center. To give you an idea, Golden Walk used to be the seventh biggest water consumer in our carbon footprint back in FY 2021. We installed about 64 toilets in July of 2022, and we incorporated training and awareness for the occupants as well as for the visitors at Golden Walk as part and parcel of the installation, as opposed to sort of, installing them and hoping for the best later on. Worth noting as well, despite appearances, the toilets are actually harder to break than your normal toilets. To really close the loop, even the leftover units that we have, we are in the process of donating those to schools and charities in need. That is where, for me, the environmental and social side of the ESG strategy really managed to cross over. Our annual water consumption decreased by about 59% on average, and that resulted in an average saving of approximately ZAR 900,000 since installation, as well as, of course, other water efficiency initiatives and responsible behavior interventions at Golden Walk. It's estimated now that that installation is going to increase the value of this asset by over ZAR 10 million and will contribute towards the growth in asset value. That really is the kind of success story that we're looking for here. We're not just going to throw CapEx at projects, but we really want to see where we can sort of show demonstrable value, either in a reduction in the resources used by the particular property or a resource or a reduction, I mean, in cost as well. Let's talk about waste management, which tends to be a little bit forgotten in mainstream ESG conversations, but I think it is critically important to make sure that from a waste management perspective, we understand that or in the ordinary course of events, when your municipalities collect garbage, they don't tell you the waste streams within your property. They don't recycle any of it. It goes straight to landfill. A lot of landfills in urban areas, as you probably know, are overwhelmed. That is why we've actually commenced a waste rationalization project within the portfolio covering 90 properties in phase one, which is complete. The purpose there is to make sure that we have waste service providers that can provide us with accurate real-time recycling data on our properties, and that they can actually help us sort and weigh the different types of waste on-site to make sure that our waste statistics are as accurate as possible. What I'm proud to show you here is that the recycling rate has actually increased by 9% since the rationalization, and we've actually introduced targets at a per building level. The actual cost of waste per sq m has actually decreased from ZAR 0.89 per sq m to ZAR 0.76 per sq m, which is very promising, and that's why, especially in the next financial year, we really are going to be improving, more the coverage, I mean, of our waste management initiatives in the portfolio to really maximize impact. Lastly, all of these initiatives really contribute towards our green building program. You'll see some of the statistics that I showed you earlier. Have a look at this, specific graph where back in FY 2014, the total number of certifications was sitting at just above 40 certifications. As at four weeks ago, we're sitting on about 186 active certifications. Most of them are comprised of existing building performance, certifications. What that means is that we constantly look at the operational performance of our green buildings every three years, as opposed to doing a once-off design level rating, which doesn't need to be measured constantly. Ultimately, even when you're talking about smart buildings, our smart building strategy and journey is going to be essential for us to operationalize some of these green building principles and monitor data in real time. We feel that this is a critical part of our net zero journey going forward. Let's go to social. Let me start off by saying, when it comes to our social strategy, it's what I said earlier, and I'll say it again, our stakeholder engagement strategy is absolutely critical to our ability to execute this ESG strategy in any meaningful way. You'll see that in the slides to come, that for each of the upstream and downstream, actual stakeholders, we have a clear target set approach as well as a clear engagement approach when it comes to embedding those relationships. It's not just on environmental behavior, although I've talked about that a lot. It's also about our socioeconomic development initiatives. If you think about it, every large corporate you can think of probably has some kind of CSI strategy in place, and they devote certain resources to it. But because we being SA Inc, are not working together enough on these initiatives collectively, we're not actually moving the needle as much as we should. That is why the importance of collaboration and developing these ecosystems is important even from a socioeconomic development perspective. Let's talk about our strategic approach to stakeholder management. Obviously, I think how we manage those stakeholder relationships is going to be nurtured, of course, by the relationships that we build with key players within our stakeholder universe. Ultimately, we rely on all of our employees to carry that journey through. If you have a look as well, I think we're going to move towards a process whereby we're constantly measuring via surveys or via Net Promoter Scores, the quality and more importantly, the effectiveness of those stakeholder strategies and using that information strategically to make sure that those relationships and the effectiveness thereof is improved over time. When it comes to impact as well, I think a lot of these discussions around the social side of ESG tend to be focused on inputs once again, and less on outputs or impacts. That's why we have actually designed an internal impact framework that actually sets out a vision of transformational impact that's aligned to our mission as well as our purpose, which is to transform lives. Going forward, our BEE strategy is going to be included in that impact framework. What is important there is that we are not just going to follow a scorecard approach for the sake of getting BEE points. We're actually going to look across the business at the different initiatives we have, start seeing how we can marry the BEE scorecard, as well as the initiatives and the outcomes of those initiatives, and start seeing how we can use a BEE scorecard approach to our advantage to measure and scale up our transformational initiatives across our stakeholder base. Let's talk about communities. I think, once again, we've moved away from a simple CSI approach to really making an impact. W hen I say making an impact, it's also about how we engage with our communities. I think the mistake that a lot of corporates can sometimes make is talking at communities as opposed to talking to communities. that is why, our community engagement process is so critical and why we are continuously working at it, at each stage of the life cycle of our property. right from when we develop an asset and go into design, planning, and construction through to when we are actually operating an asset, it's important for us to really understand how those assets influence the local community. what is notable as well is that even when you're looking at Green Star, yes, a lot of the criteria in Green Star are green and focused on energy, water, and waste, but they also look at the walkability score of our properties. How close are our properties located to public transport facilities? Do they have cycling racks so that people can cycle to work? Do they facilitate, for example, ride-sharing among the occupants of the buildings? That really just helps focus the mind in terms of making sure that our assets in terms of the design of those assets are integrated into the community and take into account the needs of the community. Some of these findings you see here in terms of the for every rand invested and every euro invested, you've seen before. We published it in our 2022 ESG report. It's really worth noting that we've really gotten to the point where we are actually measuring the economic impact and the impact that our business has, our assets have on job creation in this country. That is something that we feel very passionate about, and we feel that similarly, other companies should start doing as well. Then we ta... We move over to tenants. Now, I think here as well, it's worth noting that our tenant engagement strategy has really become far more focused. We've engaged with a number of our national retailers in South Africa, and EPP is actively engaging with its tenants to improve its energy performance. If you have a look at the portion of our top 10 properties or top 10 tenants, at least, within our portfolio that we've engaged with, it's clear that we really are trying to engage with the tenants who can really move the needle, and we're trying to engage with them at a corporate level. Because ultimately, it's important for us to engage at a store level, and we're doing that too. If you don't have that push coming internally within tenant structures to actually start behaving more responsibly, it becomes quite difficult to implement the strategy. As a great example of how we've managed to turn this into a real success, we're now going to play you a video with Janis Cheadle. She is the ESG Director and Company Secretary at Mr Price, and she's going to talk to us a little bit about how we have actually managed to integrate Mr Price in Redefine’s ESG strategies. Thank you so much, Janis, for joining me today. It's such a pleasure. Janis, can you tell me more about the Mr Price Foundation and the HandPicked program? Sure. We established the Mr Price Foundation in 2005, and through the foundation, we take on the greatest needs facing South African youth by unlocking access to quality education and skills development, and our aim really is to empower youth to achieve their full potential. The Mr Price Foundation is also a key part of how we achieve our social initiatives for our sustainability strategy. HandPicked is a program for the Mr Price Foundation, and is a skills development program that cultivates youth entrepreneurship in agriculture. It equips interns with the knowledge, experience, and tools they need to establish growing hubs or to pursue careers in agribusiness. It also enables a shift from consumers to producers, stimulates local economies through generating income, and boosts sustainable food production. This is such an amazing initiative. Could you talk about the scalability of the HandPicked program in the context of commercial retail buildings? HandPicked has the potential to become a national beacon of hope with the right partners in place, providing space, sponsorship, and on-site grocers and customers to buy the fresh produce. Partnering with our commercial retail landlords is imperative to grow the reach and impact of the HandPicked program. I guess that's where Redefine comes in. It's been such a pleasure partnering with HandPicked to establish the HandPicked CityFarms initiative at Kenilworth Centre. Now, could you share with us some insights on how this partnership has really opened up new possibilities for HandPicked? Sure. Redefine as one of our biggest landlords really is in the ideal position to influence key suppliers and offtakers of the produce that's grown. Another exciting development is that it's enabled the potential expansion of the HandPicked CityFarm at Kenilworth Centre. Phase Two, we're aiming to increase the number of plants grown from around 5,500 to over 10,500. Okay. That's such an impressive feat. How do you see the partnership between Redefine and Mr Price going forward in terms of our mutual ESG strategies? Mr Price obviously occupies substantial GLA in the Redefine retail portfolio, so this enables us to discuss initiatives and to strategize with Redefine at a corporate level. We're talking about ways we can align our efforts on energy, water, and waste, and then align and agree on mutually agreed targets and priorities in a way that makes sense in the context of both of our ESG strategies. We are pleased that Redefine engages with Mr Price as strategic business partners rather than just a landlord. Redefine's involvement really can allow us to upscale initiatives, which in turn then supports Redefine's ability to be a force for good and to nurture and optimize ecosystems. Collaboration and partnership really is crucial to both of our ESG strategies. Collaboration is key, and we're so proud of this partnership, as well as Mr Price's willingness to engage with us on ESG issues. Let's end this interview. Please give us some specifics regarding the HandPicked CityFarms initiative at Kenilworth Centre. We're very proud that to date we've established six HandPicked farm hubs across South Africa, but the HandPicked CityFarm at Kenilworth Centre is the first retail rooftop farm in the Western Cape. Since its launch in November 2022, it's really grown from strength to strength. Janis, thank you so much for having me today. You're so welcome. Well, I hope you all enjoyed that discussion with Janis. It's really great to note that Mr Price is one of the tenants that is really committed to walking this journey with us. Let's talk about employees, because let's be honest, I can't engage with over 4,000 tenants in the Redefine portfolio. That has to be driven by our employees. I can tell you the most effective way that we've managed to actually scale up the implementation of our ESG initiatives is through employee buy-in and employees proactively engaging with tenants regarding their ESG practices and what we can do to support them. We've placed quite a focus on upskilling our employees, both in EPP and at Redefine South Africa, in order ultimately to make sure that we are optimizing building performance through, once again, responsible behavior, as well as looking for other opportunities to collaborate with tenants as well as other stakeholders. What's heartening is that our employees, that is, really feel that we are living our values, especially the value of being ethical. Our annual ethics survey, we still run that on an annual basis, and in FY 2022, we got an 88th percentile ethical cultural maturity score, which really shows that our employees have faith that when we're doing the right thing, we're actually doing it in the right way. Let's talk about suppliers. I t's important for us to understand that when we're talking about our sustainability risks and opportunities, they're not just confined to Redefine. They also extend into our supply chain. It's important for us to understand the extent to which our suppliers have incorporated best practice ESG principles into how they do their jobs. You'll have a look, of course, at these self-assessment scores. We introduced the self-assessment in FY 2022, and it's still in the development phase. As you can see, a lot of the suppliers got a D rating. Let me be clear. That doesn't mean that we're going to fire them on the spot. All that means is that it opens up an opportunity for dialogue to say, "Let's start talking about targeted interventions that can help you as a supplier, effectively transition into the low carbon economy in the long- term." In terms of our long-term social priorities, suppliers, I think we've spoken about that quite a lot, and improving supplier sustainability performance will be quite critical going forward. From a tenant perspective, making sure that our tenants buy into our green leases will be quite important. For us, it's worth noting, Scope 3 emissions, on the face of it, are actually an environmental target. But in reality, they are as much a social target because you require tenants to cooperate in order for you to reduce your Scope 3 indirect emissions. That is why you find the Scope 3 emissions in the environmental section. Similarly, from an employee perspective, we wanna make sure that gender equality really is embedded in every part of the value chain, and that ESG principles are lived principles, and that we really start measuring impact as opposed to inputs over time. Naturally, I think this kind of training on ESG initiatives does over time, of course, pave the way towards green jobs and allows our employees to participate in a low carbon economy in the future. This is just a case study we've included of Matlosana Mall, which incorporates a number of environmental and social wins through, for example, the introduction of the learning center, which is open to all members of the community, for them to use the IT resources on site for studying, for looking for jobs, et cetera. You'll see we've already installed Propelair toilets, and we have got a 5.1 MWp solar plant installed, probably one of the largest rooftop PV installations in Africa. This is what we want our properties to start looking like going forward, with not just exemplary from an environmental perspective, but they also incorporate social initiatives as well. A lot of these initiatives, by the way, were led by the teams at the center, and that's really what we want to achieve in the long- term. Let's talk about governance. Starting out with our governance approach, I think our board of directors has really incorporated board ESG governance into how it fulfills its mandate. The ESG strategy itself is actually approved by the board, and it is incorporated into the annual strategy, which is approved by the board, every year. What's notable as well is that every committee on the board is clear as to the role that it plays in terms of the achievement of the ESG strategy. Look, I'm not a board member, don't take it from me. We've got a AV of Amanda Dambuza. She is the Chairperson of the Social, Ethics and Transformation Committee, and she's going to expand on this topic. Firstly, thank you, Amanda, for joining me today to talk about Redefine's ESG strategy and the importance of good governance processes in terms of executing that strategy. Well, thank you, Anelisa, for hosting this discussion, firstly, and having me. I look forward to sharing some insights into the mechanisms that support our ESG strategy, and also, just to demonstrate our overall commitment to sustainability. Definitely. I think in the global context, ESG is so topical at the moment, and I know that it's top of mind for our board of directors. Yes. Could you give me some insight into the main drivers behind Redefine's overall ESG strategy? Well, I mean, there's a really fraught operating context, as you know, and globally and locally, the challenges have continued to cause inequality. They've caused climate change and political and economic instability. Therefore, this requires companies to just rethink how they do business. This is to ensure that they take the needs of stakeholders, every single stakeholders, and future generations into account. In response to this, I mean, operating from a place of purpose, Redefine developed an ESG strategy, which you know about, that embraces the UN SDGs as an overarching framework. It sets clear targets for 2030. Can you share some insights into how ESG is considered at a board level, going beyond just the social and ethics committee's mandate? Yeah. Well, I mean, the board has ultimate oversight of the ESG strategy and is supported in that role by the relevant committees who have a clear mandate in terms of references that support Redefine's ESG objectives. I mean, for example, Social, Ethics and Transformation Committee looks at Redefine's sustainable development and sustainable reporting. As well as transformation, diversity and inclusion, and just being good corporate citizens. Obviously the investment committee oversees the investment strategy. A part of this would be to ensure that Redefine upholds ethical conduct, but also that ESG considerations are taken into account for potential acquisitions. The Risk, Compliance and Technology Committee ensures that ESG related risks and opportunities are clearly managed and included in the enterprise risk management framework. I must say also obviously the audit committee, which is a critical committee, looks at how internal controls and assurance ensure that the ESG information itself is robust. Of course, finally, the RemCo, Remuneration Committee, ensures that any ESG related key performance indicators are well managed and aligned to the long-term strategy of our ESG. No, that's wonderful. I think from our discussion, it's clear to investors that ESG and the effective governance of ESG is critical to the board. Could you describe the board's forward-looking focus in terms of ESG for the year ahead? Well, first of all, I must reiterate that essentially from a board perspective, there are strong governance processes in place, and these ensure that ESG is fully embraced in our responsibilities and considerations. I believe this is critical to really embed ESG into an organization, 'cause it's one thing to have an amazing strategy, it's another to actually embed that and make sure that it's well lived in the DNA of the organization. As we look ahead, I mean, our key focus for the board will be on monitoring progress against the ESG strategy, which we believe is robust and really future looking. Also Redefine has clear targets it has set for 2030, and each year it's important to actively work towards those goals. The board plays a critical role in this process. We will continue to work with the management team to deliver on these targets because they're not just a board target. They're Redefine's targets. We wanna ensure that we leave a lasting legacy that we can all be really proud of. Fully agreed. Thank you, Amanda, for your time today. Yeah, it's my pleasure. Thank you so much. Thank you very much, Amanda, for showing us the board's true buy-in to the ESG strategy as a whole. Now let's talk about our approach to sustainable finance. I think it's important to note here that we've had a lot of successes since we first introduced our sustainable finance framework in July of 2022, having issued about ZAR 4.2 billion worth of listed green bonds since inception. What's notable here as well is that a lot of these bonds are linked to our Green Star rated assets, which is yet another opportunity that is unlocked by the fact that we are on a clear journey from a certification perspective, and we're able to demonstrate to the market that the green projects that we have are sufficiently green to merit financing or refinancing going forward. Obviously, our framework and our sustainable finance journey is driven by our KPIs. Let's be honest, KPIs need to be achievable, and they need to be realistic. If we go back to, for example, FY 2023, or FY 2022 rather, we had included both Scope 1 and Scope 2 emissions within our short and long-term incentives for non-financial performance conditions. Load shedding, unfortunately, has no clear end in sight, and it's quite clear that Scope 1 emissions are going to increase in the immediate term, which is why we have placed a greater focus on Scope 2 emissions, which are influenced by common area consumption, and less on Scope 1 emissions. That said, of course, we understand that eventually we are going to have to start seeing a drop in Scope 1 emissions, which will hopefully become more possible once the national energy grid becomes more stable. This is just an overview of some of our KPIs. You'll have a look to see which ones are linked to remuneration. Ultimately, I think all of these KPIs are enablers. Because ultimately, if we don't stay on track when it comes to Green Star certifications, a lot of the opportunities that I've explained to you, including the tenant engagements, will largely fall by the wayside or become much more difficult to achieve and also jeopardize our ability to transform this portfolio in time to transition into a low-carbon economy. You'll notice here as well, a lot of these KPIs are heavily dependent on our stakeholders in order for us to be able to achieve them. We can't measure the data that we've seen here if we don't have cooperation, for example, from our waste service providers, from some of our other on-site suppliers who influence our green rated buildings and so on. Let's talk about our reporting approach very quickly. I think it's safe to say that given the different regulatory frameworks in the EU and in South Africa, it is prudent in the short to medium term for Redefine and EPP to continue to publish separate ESG reports. That said, ultimately, we are adopting a one entity approach, even when it comes to telling our ESG story as a whole. In terms of the ISSB in particular, I think it'll be important for us to gradually adopt some of those principles into our reporting. Ultimately, whatever reporting standard we use, whether or not it's regulated, it's important that we are able to show the clear value that has been created for our key stakeholders, including yourselves. Just quickly talking about our external ratings. I'm quite cheeky, so I've listed all of the badges we've managed to accumulate, especially over the past 18 months or so. We don't work on this ESG strategy because we're trying to get ratings. We work on this strategy because we believe that it will create value. The ratings give us a useful data point to see how our practices compare to those of our local and international peers, and to also keep us honest as well. It gives us a window into what the international standards are around sustainability now and in the future. In closing, look, I think we've demonstrated we have got a clear implementation pathways for our ESG strategy. Even if you look at some of the key successes that we've had the achievement of our Net Zero Carbon measured certifications, which are based, once again, on operational performance, that is a first, not only for Redefine but for the South African real estate sector. In that way, we are actually helping to lead the way forward for the sector as we transition gradually into a low-carbon economy. Obviously, I think there's still a lot of work to be done in terms of taking advantage of wheeling arrangements, incorporating climate risk and opportunities into our day-to-day decision-making. I'm happy to tell you that we really are on track, and we really have a plan that we feel we can back into the future. All right, I am going to thank you all for joining me. I'm now going to start going through Q&A. Just a reminder to please use the Q&A, and also that you will be receiving that investor survey that should go out tomorrow morning. Let's see what questions we have. We've got a question from Nicole from Old Mutual Investment Group. Inclusion of the SDGs is great to see. That said, they are more included than they are excluded. How have we gone about identifying what are the most material SDGs to focus on, so as to avoid rainbow washing? Rainbow washing is a cool term, by the way. I'm gonna use that going forward. You know what, Nicole, I think there's something to be said for the fact that our SDGs are also reflective and take into account South Africa's national progress against the UN SDGs. Across a lot of the SDGs that you saw at the beginning of this presentation, the reality is, as a nation, we're actually going backwards. We are regressing instead of progressing towards that 2030 agenda, and that's why we felt we could make the most impact within those SDGs. Similarly, we also took into account the progress that the local real estate sector has made within achieving those SDGs, and really what our key stakeholders need and what those needs look like within the context of the SDGs. We really tried to take a multi-pronged approach. Obviously, the SDGs are constantly reviewed for their relevance, but the idea is, even when you look at the global goals, to pick the one or two per SDGs that are most relevant to our business, as opposed to trying to achieve everything and trying to be everything to everyone. Then the other question also from Nicole, can you talk us through the escalation strategy for suppliers and their performance on ESG, i.e., how do you determine when to terminate an agreement in the case of failure to improve on ESG? At this point, Nicole, we're not going to necessarily, off-board suppliers automatically if they get a D rating. Where we would seriously consider termination, in light of the results of a supplier self-assessment, is if there is a regulatory or compliance related element or human rights related element that the supplier is not compliant with, because we don't compromise on human rights. But if it is dealing with environmental issues or non-compliance related elements of ESG, we certainly would open up that dialogue for our suppliers and try to encourage them to improve. The types of timelines that we set really will depend, of course, on the maturity of that supplier when it comes to ESG. 'Cause the reality is some suppliers at this point, especially the small guys, they don't know what ESG is. Y ou really have to kind of be prepared to walk the journey with them. We've got a question from Wayne from the PIC. How much more of sustainable finance is Redefine planning on taking on, and where will it be allocated? Thanks. Okay, in terms of our future sustainable finance plans, I think this will be very much influenced by our debt management strategy going forward. Ultimately, I think it will depend on, whether or not it is opportune at the time to raise a bond in the first place. Obviously commercial considerations will always be at the forefront. Turning to the question of where it will be allocated, at the moment, we are focused on refinancing, or financing new or existing Green Star rated properties that have got a four-star rating or above. There are obviously other opportunities where we are able to actually achieve the scale required, to actually use the proceeds of an issuance. If we're looking at numbers, for example, our solar PV fleet at the moment, in total, we've roughly spent about ZAR 550 million-ZAR 600 million, which could work quite well for a smaller issuance. But I think it is going forward, when we're looking at other projects, it's going to depend on the scalability of those projects across our properties in order to actually ramp up the scale required. And then I've got a question from Nomsa, from All Weather Capital. Does the group have a biodiversity policy, and how does RED ensure they protect biodiversity, especially on new projects? This is a great question. I'll work backwards. In terms of new projects, generally, we would determine the biodiversity needs of a particular new project based on whether or not it is on a greenfield or a brownfield development, and also depending on the results of the environmental impact assessment conducted on the property prior to development. In terms of our biodiversity policy, we've actually incorporated biodiversity into our net zero strategy, and I think the focus here is not to make any firm targets regarding net zero or net positive biodiversity. The point is to integrate positive biodiversity management practices into our existing operations. Green Star, for example, already incorporates biodiversity related considerations, including, for example, landscaping policies, pest control policies, et cetera. There are ways in which we can improve our biodiversity footprint through our existing programs, such as our water management strategy and our biodiversity strategy, or our Green Star program, without necessarily adopting a full-on biodiversity standalone policy. We've got a question from Taylor, from Umthombo Wealth. Do you address or have any plans to address the biodiversity concerns regarding your properties, or just address it in general? Taylor, I think the biodiversity concerns really are dealt with, depending on the biodiversity footprint of our properties. When I say of our properties, I'm also talking about the area, sometimes the municipal area surrounding our properties. If we are aware, like at S&J, for example, our property is located close to and incorporates a wetland. Wetland rehabilitation and wetland management will certainly be part and parcel of how we manage that asset going forward. Similarly, at Blue Route Mall, where it's quite close to an endangered species of toad. W e cooperate with the municipality in terms of making sure that our operations don't interfere with the breeding seasons of that toad. It is going to be quite specific to the property concerned, but ultimately, we want to mitigate our biodiversity footprint. Songo from the Green Building Design Group, "Great presentation, Anelisa." Thank you. "Are there any plans to register the 50 MW of solar on the carbon offset market?" The short answer at this point is no, because we want to use those carbon credits within our operations. That's why, for example, the City of Cape Town wheeling pilot, that energy is actually going to be used at Blue Route Mall and Kenilworth Centre. The point is for us to use those carbon credits in-house. I think once the floodgates are open in terms of wheeling opportunities and we can actually get to a point where some of our properties, especially in the industrial space, can transition to net positive. Territory where they're actually producing a surplus of renewables, it's definitely something that we would consider. Okay. Just looking for the next question. Okay, I'm gonna give it another five seconds. Please do feel free to grill me at your leisure. Otherwise, you can always reach out to investor relations and set up a one-on-one meeting with myself and the executive team. It looks like everyone is satisfied. Thank you very much. If anything occurs to you or you have any other questions after this presentation, please do reach out to us, and set up a meeting. More than happy to engage with anyone on the call. Really, I think the idea is to get the message out there, to explain the concepts, and to really help you understand Redefine's journey when it comes to ESG. Thank you all for your time, and please have a great afternoon.