VGP : Corporate Responsibility Report 2022

Corporate

Responsibility

Report

2022

Content

PAGES 120 - 129		PAGES 130 - 143
1. Introduction	2. Group ESG Strategy
1.1	Letter from the CEO / page 121	2.1	ESG Strategy: Building Tomorrow
1.2	Summary of the Group's		Today Together / page 131
	ESG achievements / page 122	2.2	Governance of ESG / page 141

1. About this report / page 129
2. Company at a glance / page 129

PAGES 144 - 187PAGES 108 - 209

3. Commitments	4. Green financing
3.1	The 2030 Sustainable	of the Group activities
	Development Goals / page 145
3.2	Address climate change / page 148	4.1	EU Taxonomy / page 190
3.3	Sustainable Properties / page 154	4.2	Green bonds / page 193

1. Improve eco-efficiency / page 159
2. Protect and improve biodiversity / page 168
3. Empowering our workforce / page 170
4. Sustainable Supply Chain Management / page 176
5. VGP in the community / page 179
6. VGP Foundation / page 183

PAGES 210 - 214PAGE 216

5. Additional	6. Corporate
Information	Directory
5.1	VGP Reporting methodology / page 211
5.2	Independent third-party's
	assurance report / page 213	PAGE 119 - VGP NV Annual Report 2022 / Corporate responsibility report / Content

Introduction

1.1 Letter from the CEO

This past year has shown again that sustainability is no longer optional. It's an imperative! From energy price volatility due to the geopolitical events, student 'strikes' over climate change to protests over plastic packaging, it's clear that everyone is looking for better solutions.

We are leveraging our capital and technical expertise across the countries in which we operate to support a greener future. A responsible approach to energy and cli- mate, especially during a time of war, is to immediately help provide energy security to our clients and remain focused on accelerating the development of reliable and lower-carbon energy solutions. We have significantly accelerated our photovoltaic roll-out with now 204.3 MWp either installed or in the pipeline which means that we will now be able to generate more electricity than that our tenants consume. And, as a result, in the annual CRREM review of our building portfolio, compliance for the 1.5˚C global warming pathway increased to 45.5% in 2050.

Our Scope 1 and 2 GHG reduction targets have been confirmed by the Science Based Targets initiative (SBTi) as aligned with keeping global warming below the 1.5°C. Yet, we are ready to go further, and we have set ourselves the target to challenge the materials choice and reduce the embodied carbon in our development projects by 20% by 2030. Meeting these goals, particularly our SBTi confirmed Scope 3 goals, will require collaboration with our stakeholders including both suppliers and clients.

Over 2022, the Group has been working to expand its innovation strategy. We aim to facilitate and invest in products that provide sustainable solutions to clients across property technology, supply chain, transport, construction and manufacturing. Examples include heat pumps and carbon neutral building materials. Our focus is on evaluating how these can be applied to our wider portfolio to improve sustainable outcomes for all.

The VGP Foundation has made a tangible and sustainable difference for various communities, with 7 additional projects approved and initiated in the course of 2022 bringing the total to 36 projects, with €6.6 million committed or spent. We also extended €3 million beyond our established pillars, for the UNHCR responding to emergency of the humanitarian crisis in the Ukraine and the neighbouring countries in Europe.

We are pleased that the Group's ESG performance has been recognized by Euronext, by including VGP among the 20 Belgian companies leading on ESG efforts, by CDP with recognition on the global Supplier Engagement Leadership board and by Cicero, part of S&P Global, in their attestation of our Green Finance Framework, for demonstrating a holistic approach to climate and environmental performance of our building portfolio.

Finally, as I have mentioned in my annual letter to share- and bondholders, I am proud of our team, who serve every day our clients and communities, build our VGP parks, manage the risks and drive our innovation. Here you will be able to read of the continued steps we've taken to cultivate a workplace where everyone can thrive - diverse and inclusive.

There is no doubt we - both as a company and society - have a long way to go. Yet, moments of crisis are also moments of opportunity. In this year's ESG report, I invite you to read about the work we do every day to drive lasting change.

Jan Van Geet

CEO

PAGE 121 - VGP NV Annual Report 2022 Corporate responsibility report / Introduction