For personal use only

Abacus

Property

Group

Sustainability Report 2021

onlyWe believe that integrating sustainability useinto our investment decision-making

and business operations is congruent with the responsibility we have to our stakeholders and critical to us achieving

personalour long-term commercial goals. Our intention is to deliver sustainable, long-term value and we are focused on making ongoing improvements across the Abacus Group.

We have set strong sustainability Forcommitments across a range of

functions in order to meet this objective.

About this report

This annual Sustainability Report for the year ended

30 June 2021 forms part of Abacus Property Group's FY21 reporting suite. This Report covers Abacus' Australian and New Zealand operations This Report has been prepared in accordance with the Global Reporting Initiative's (GRI) Standards: Core option.

For questions and comments on our sustainability performance, contact enquiries@abacusproperty.com.au

Steven Sewell,

Managing Director

ABACUS PROPERTY GROUP | SUSTAINABILITY REPORT 2021

0 2 - 0 3

EMPLOYEE ENGAGEMENT

AND MOTIVATION

Contents

COUPLED WITH CHANGING

49 Key Achievements in FY21

50 FY21 Performance

only

CUSTOMER ATTRACTION,

50 Why is this important?

GLOSSARY

SATISFACTION AND RETENTION,

50 Our approach to managing

EXPECTATIONS

55 FY21 Priorities and Achievements

24 Key Achievements in FY21

24 Why is this important?

MANAGING

24 Our approach to managing

DIRECTOR'S

26 Business impact from COVID-19

MESSAGE

27 FY21 Performance

CLIMATE-RELATED RISKS

FINANCIAL PERFORMANCE

29 FY21 Priorities and Achievements

AND OPPORTUNITIES

56 Key Achievements in FY21

use

ABOUT US

38 Key Achievements in FY21

56 Why is this important?

38 Why is this important?

56 Our approach to managing

38 Our approach to managing

57 FY21 Performance and

38 FY21 Performance

the COVID-19 pandemic

39 FY21 Priorities and Achievements

context

58 FY21 Priorities and

FY21

Achievements

HIGHLIGHTS

04

06

08

24

38

49

56

63

personal

10

18

30

40

45

INDUSTRY59PARTNERSHIPS

HEALTH AND SAFETY

OF OUR PEOPLE AND

CUSTOMERS

GOVERNANCE, RISK, CYBER

18 Key Achievements in FY21

AND TRANSPARENCY

60

18 Why is this important?

40 Key Achievements in FY21

18 Our approach to managing

40 Why is this important?

For

20 FY21 Performance

40 Our approach to managing

20 Abacus business continuity

Abacus board diversity

during COVID-19

RESPONSIBLE RESOURCE

40 and tenure

20 Activities

MANAGEMENT

43 FY21 Performance

GRI INDEX

30 Key Achievements in FY21

23 FY21 Performance

44 FY21 Priorities and

30 Why is this important?

Achievements

30 Our approach to managing

RESPONSIBLE PROCUREMENT

31 Abacus Sustainability

Targets

45 Key Achievements in FY21

32 FY21 Performance

45 Why is this important?

OUR APPROACH

37 FY21 Priorities and

45 Our approach to managing

10 Abacus Sustainability Strategy

Achievements

partners

46 FY21 performance

13 Governance

14 Sustainability Commitments

14 Defining

our

material topics

16 Engaging with our stakeholders

ABACUS PROPERTY GROUP | SUSTAINABILITY REPORT 2021

0 4 - 0 5

FY21

only

highlights

Worker incident

25% reduction in GHG

severity rate

(scope 1 and 2)

useReduction in loss time due to injury

emissions intensity

compared to 2019 1

personal

Office tenant customer

Focus on providing

surveys undertaken

to inform customer

1.2

safe, secure and

engagement strategy

healthy workspaces

1.0

1.0

<1.0

1.0

for our employees

24% reduction in

and customers

water intensity

FY17

FY18

FY19

FY20

FY21

(compared to 2019)

ForOccupancy rate across Commercial Portfolio

assets

48 with

94.7% 92.6%

SOLAR PV

91.9%

91.3%

FY21

FY20

FY19

FY18

NET

ZERO

EMMISSIONS

2050

Development of board approved public sustainability targets including Net Zero Emissions (Scope 1 and 2) by 2050

CONTINUED IMPROVEMENT IN ENERGY AND WATER EFFICIENCY

4.63

4.05

Average NABERS rating

Average NABERS rating

Energy

Water

FY20: 4.26 stars

FY20: 3.34 stars

1 Assets under operational control as defined by the NGER Act

With the impact of COVID-19ongoing throughout the year, the focus for Abacus was on providing safe and healthy environments and supporting our people and customers. We remain committed to our people and focus on providing a safe, healthy, and constructive work environment. Our FY21-FY25Work Health and Safety Strategic Plan provides a planned and quantifiable approach for the management of WHS across Abacus' operations.
On-sitesolar PV continues to play a large part of our operational efficiency improvements program, with a total of 44 solar systems now installed in Storage King locations, and four in our Office portfolio.
Customer engagement remains a key focus and maintaining strong relationships with our customers was emphasised throughout the year. For the first time, we engaged an external property consultancy, Campbell Scholten to undertake customer engagement surveys across our Office portfolio. Pleasingly, we scored above average for an initial survey in our portfolio average response, with each building now having an action plan for improvement based on the feedback. These surveys will also go towards developing
a customer engagement strategy across the business and ensure a consistent and quality experience for
This year, despite the ongoing challenges associated with the COVID-19pandemic, we have made significant progress in our sustainability endeavours with the announcement of public sustainability targets, including net zero by 2050 and the approval of a sustainability strategy.
As part our sustainability strategy, the development of a net zero pathway (which covers our assets under operational and corporate activities) has already commenced. A significant proportion of this will be through energy efficiency measures and behind the meter on-sitesolar installations. Offsite renewable electricity procurement for residual energy needs plus high quality carbon offsets will be used for emissions we cannot avoid or reduce. We look forward to updating you on our progress throughout the year.
From an environmental perspective, we continue to improve our environmental efficiencies and have set future targets around energy, emissions, water, and waste. This year we recorded a 25% reduction in greenhouse gas emission intensity across our operations (like for like assets2) compared to the 2019 baseline, noting the impact from lower usage due to COVID-19.
Our NABERS Energy and NABERS water ratings have also improved within our Office portfolio and we have exceeded our FY25 NABERS water target, from a combination of water efficiency improvements via real time monitoring.
prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option.

0 6 - 0 7

Managing Director's onlymessage

Welcome to our FY21 sustainability report, highlighting our useprogress and achievements made over the year.

Abacus' FY21 results have progressed our vision to create exceptional value for our customers and stakeholders as an owner and manager of real estate and operator of storage locations.

FY21 was an active year for Abacus, personalwith the deployment of $1 billion of

capital, completion of a $402 million Entitlement Offer and internalisation of our Self Storage manager Storage King, to become a vertically i tegrated Self Storage investment platform. This has transformed Abacus, now a strong, asset backed, annuity style investment house focused on the ownership and management of our assets. The Group is focused on the sustainable, active asset and development management of our investments. As part of this, we continue to place strong emphasis on improving our systems and practices, and ensuring our stakeholders understand our commitment and approach to

Forsustainability. Sustainability is embedded within the decision- making process across the Group, receiving appropriate focus at all levels of management.

This report demonstrates our commitment to the many facets of sustainability including work health and safety; stakeholder engagement; customer satisfaction; responsible resource management; governance, risk and transparency, cyber security, employee engagement, climate change risk; responsible procurement and technology and innovation. Our reporting framework has been

our customers through all stages of their business lifecycle.

In response to our customers and the changing nature of work, we have been focused on increasing the flexible space options in our buildings with the commencement of our 'Flex by Abacus' offering. Flex by Abacus will feature fully fitted-out office space offered on flexible lease terms and will initially be offered at 14 Martin Place, Sydney NSW and 99 Walker Street, North Sydney NSW. These renovated, modern spaces complete with sophisticated technology, breakout and kitchen facilities are available to both new and existing customers who require overflow space or have additional meeting room requirements. Offering flexible space on dynamic leasing terms will widen our customer market and is expected to drive higher occupancy outcomes at our assets.

Our people, culture and community have been ongoing areas of focus. Despite the constraints of COVID-19 and associated restrictions, we have continued our investment in our people, culture and progressed our philanthropic program. Of note were the implementation of a full engagement survey which produced very positive and encouraging results; the commencement of the Abacus' NextGen graduate program; continuation of Employee volunteering and the introduction of pre-tax workplace giving.

Steven Sewell,

Managing Director

Image: Steven Sewell

Managing Director

ABACUS PROPERTY GROUP | SUSTAINABILITY REPORT 2021

2 Base building under operational control

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Abacus Property Group published this content on 10 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2021 06:24:03 UTC.