Neinor Homes S A : Statement of Non-Financial Information and Sustainability Report

01 Executive summary

02 Letter from the CEO

03 From CSR to sustainability. Policy and Strategic plan

038.1. Housing Excellence and Quality

138.3. Environmental Sustainability and

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health in housing

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05 Social impact: Creating value through our responsible business model

1. Economic and social environment
2. Developments on the stock exchange
3. Accessibility to housing / decent housing
4. Measuring social impact
5. Industrialised business model with the customer in mind
6. Sustainability as an internal action framework
7. The importance of communication with our stakeholders
8. Social action

06 Our business is based on a model of responsible governance

1. Principles of corporate governance
2. General Shareholders' meeting
3. Board of Directors
4. A comprehensive Control, Compliance and Assurance model

07 We offer a personalised service tailored to the needs of the customer

1. Neinor Experience
2. Complaints and claims handling

08 Environmental Impact.The homes we build will have no added value if we fail to think about the environment we are leaving behind for those we care for.

8.4. Climate risk analysis of our homes

268.5. Urbanisation and activation of the

27environment

298.6. Innovation as an engine of

30transformation

8.7. Life cycle analysis

09 We have a Committed Team

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9.1. Equality and Diversity

329.2. Professional and personal

9.3.Training

359.4. Well-being and work-life balance

469.5. Health and safety of our employees 9.6. Employee communication and

52satisfaction

55 10 We are strategic partners of our suppliers

6210.1. Our supply chain

6410.2. Responsible procurement management 10.3. Selection, approval and evaluation

7310.5. Communication, satisfaction and

82 11 Sustainable financing and compliance with the European Taxonomy

99 12 Our big sustainability milestones

1. 13 About this report
   14 GRI contents
   Annex I. Sustainability plan
2. Annex II. Updated sustainability plan

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STRATEGIC PILLARS

Environmental

We build homes for tomorrow

Because the homes of today will determine our homes of the future, we want to provide residential solutions that respect the environment, whose consumption of resources is only what is essential and which are energy efficient in their development. Homes that our children and future generations will be proud of.

Social

Our people

and communities

In addition to building the homes where people will live their lives, we are also committed to the social environment and people's safety, health and well-being. Our aim is to increase the supply of accessible, quality residential housing for all segments of the population.

Governance

The value of doing the right things, the right way

We firmly believe that how we do things determines who we are and who we want to be.That is why we live by ethical standards of integrity and transparency, so that our words are consistent with our actions.

People: We evolve with people in mind, to provide homes that are more sustainable, spacious, high quality and environmentally responsible.

Sustainability: Committed to the future we will leave behind for the next generations, we measure the impact of everything we do. We have a responsibility to conduct our business in an environmentally friendly way.

Employees and talent: People are fundamental to our development as a company. We believe in equal opportunities, with our Equality Plan, as well as in the development of talent. and work-life balance

Benchmarks: We want to be able to inspire all our stakeholders by our example and become a benchmark within and outside the sector.

Responsibility: We are committed to society so that housing is at the heart of a fair and sustainable social growth. We contribute to the regeneration

of urban environments, to the development of the social fabric and the promotion of employment.

Principles: Transparency, Good Governance and Social Commitment guide all our business decisions.

HOW DO WE CREATE VALUE?

We create value through a responsible business model.

EMPLOYMENT GENERATION

516 6.142

ECONOMIC

VALUE

GENERATED

599

million euros

EBITDA

136

million euros

Objectives

Lead the transformation of the sector

Define the commitment to good governance, environment and society

Provide a basis for integrating sustainability into business strategy

Deliver a quality product

Care for employees

Environmental (A)

• Sustainability and

eco-efficiency of housing

• Consideration of climate change
• Protection and improvement of the environment
• Circular economy

Social (S)

• Access to housing
• People's safety, health and well-being
• Customer relations and protection
• Commitment to the team and to society

Governance (G)

• Ethics, integrity and transparency
• Good corporate governance practices
• Responsible supply chain
• Sustainable financing
• Innovation

WHAT IS OUR GOVERNANCE MODEL BASED ON?

Our business is based on a model of responsible governance

GENERAL

SHAREHOLDERS'

MEETING OF

BOARD

OF DIRECTORS

• In 2023: quorum 78.62% of share capital

Audit

and Control

Committee

• 6 meetings
• 5 members
• 40% proprietary directors
• 60% independent directors

Appointments

and Remuneration

Committee

• 9 meetings
• 5 members
• 40% proprietary directors
• 60% independent directors

Land

Investment

Committee

• 4 meetings
• 7 members
• 14% executive directors
• 57% proprietary directors
• 29% independent directors

Whistleblowing Channel

• Code of Ethics
• Whistleblowing Channel
• Ethical channel management procedure
• Code of Conduct for third parties
• Code of best practices in the real estate mediation services
• Human Rights Policy

Risk Management Model

• Integrated Internal Control System
• Corporate Risk Map
• Risk Plan (Covid 19)

Prevention of criminal liability

• Criminal Risk Policy
• Criminal Risk Prevention Manual
• Internal rules of conduct
• General economic-financial and corporate communication policy
• Internal manual for the disclosure of privileged and other relevant information

ISO 27001

Information

Security

Certification

ISO 9001

Quality

Management

Certification

ISO 14001

Environmental

Management

Certification

UNE 166002

R&D&I Management

Certification

NEINOR NEXT

• Collaboration with start-ups to test their products/services and see if they generate added value for Neinor Homess

PROCESS INNOVATION

• Analysis of the integration and optimisation
  of the construction white book in the adaptation to the technical code

COOPERATIVE INNOVATION

• Participation in forums and working groups: Basque Construction Cluster, Building Cluster, PTEC (Spanish Construction Technology Platform) and Cemex

DIGITAL TRANSFORMATION

• Digital Transformation Plan
• Digital initiatives that add value

Strategic Human Resources Plan Loyalty plan Protection of employees in pandemics

Professional and personal development

Internal Promotion

Welcome Pack

Attractive and flexible remuneration

Well-being and work-life balance

Work-life Balance Plan

Work-life balance measures

Diversity and non-discrimination policy Equality Plan

Code of Ethics

Code of Conduct for third parties Human Rights Policy

Training

Training platform

31.41 h. of training per employee and 17 training courses given to employees

Health and safety

Occupational Risk Prevention (ORP) audits

Life insurance: inclusion of cover for Absolute Permanent Disability due to illness in common for all the employees

Work site safety

Health and safety policy

Communication, satisfaction

and initiatives to engage employees

Social initiatives Work climate survey

Regular communications from Management Team building activities

HOW DO WE WORK

WITH OUR SUPPLIERS?

We are strategic partners of our suppliers

Responsible purchasing management

• Purchasing management procedure

• Mandatory clauses

• Tendering procedure for construction companies

Approval /

Evaluation of suppliers

• Demanding accreditation and selection process
• Annual re-approval of construction companies
• Evaluation of suppliers and subcontractors

Communication, satisfaction and cooperation

• Bilateral communication
• App. to evaluate the perception of Neinor Homes
• Cooperative initiatives