ESG | Sustainability and Innovation

Habitat Inmobiliaria is not only strongly committed to being environmentally friendly and respectful of biodiversity, it also takes action to enhance natural capital by promoting the development of sustainable environments. To that end, we have produced a Handbook on Good Biodiversity Practices by compiling measures and practices that benefit the ecosystem within the building as well as the environment. Examples of such initiatives are:

• Introducing native plant species, which account for 70% of the plant life in all our schemes.
• Installing rain sensors across all developments designed in 2021.

In addition, we at Habitat Inmobiliaria have drawn up Green Guidelines for Residential Schemes, which stem from our shared duty to be sustainable and environmentally friendly, and to look after the health of our clients in their homes.

Mention should also be made of our Habitat Forest project, which aims to plant a tree for every new home delivered, thereby reforesting, regenerating particularly run-down areas, and offsetting C02 emissions..

Green Guidelines Leaflet

One of our priorities is to adapt and mitigate the impact and risks derived from various climate change scenarios across our developments. Thus, in line with achieving the 2050 European climate neutrality objective, we have implemented a number of measures to foster this strategic vision:

• Improving energy efficiency across all our schemes, corporate headquarters, and points of sale.
• Reducing the water footprint across all our schemes, corporate headquarters, and points of sale.
• Reducing the company's carbon footprint.

In order to reduce carbon emissions, we are engaged on each phase of a development, from design to the end of its life cycle. Such characteristics are defined in our Product Handbook which, in addition to representing Habitat Quality, is correlated with the company's strategic vision and its objective for residential market positioning.

In order to contribute to climate change mitigation and adaptation, we study the life cycle of developments as the starting point for laying down an action plan to reduce GHG emissions. In the documentation issued to our clients, we also make recommendations for engaging the services of green energy suppliers for their homes.

Transitioning to a circular economy in construction involves the responsible selection of materials, products and equipment according to health and environmental criteria. Incorporating such requirements in our Product Handbook ensures a reduction in the environmental impact of our residential schemes.

Minimising and sustainably managing waste generation is another course of action in terms of circular economy. In this sense, we have set ourselves the goal of separating and recovering 70% of all waste generated during construction across all our developments. In like manner, in the design phase of all of our schemes, we draw on BIM methodology to digitise and automate processes.

In line with the objectives in terms of minimising and sustainably managing waste generation, our Environmental Policy sets out a number of principles, among which:

• Promoting responsible sourcing decisions, taking into account the environmental impact and compliance with the ESG guidelines of assessed suppliers who have been selected based on environmental criteria.
• Driving the implementation of the circular economy in property development from a life cycle perspective.
• A responsible use of natural resources, minimising and sustainably managing waste generation.

Enhancing the professional and personal welfare of our employees has become our top priority. Safeguarding the professional well-being of our employees means creating a greater sense of belonging by identifying their talents and skills, and securing equal opportunities.

In line with this objective, a number of actions are subsumed under the term "Talent Retention and Development Programme", the aim of which is to identify talents and develop a career plan that retains the company's key employees. This programme is aimed at professionals from all areas and levels within the organisation as a motivating lever for participants. It includes actions to be carried out—such as training courses, coaching and mentoring, among others—, those responsible for said actions, and development times.

Moreover, we at Habitat Inmobiliaria secure equal opportunities when joining the company and throughout employees' working life. To that end, we have drawn up a "Diversity Programme", which includes criteria related to collective bargaining, an "Equality Plan", and information and consultation procedures.

We at Habitat Inmobiliaria listen to our clients in order to offer them a product that meets their needs. To do this, we carry out continuous analysis of our developments and, in the aftermath of the COVID-19 pandemic, we further assess the new needs and priorities of our clients. The resulting project is CoHabit, which brings together all the characteristics of future housing.

• Maximising the harnessing of natural light through windows and outdoor spaces, prioritising terraces, penthouses and gardens, and interior windows.
• Reducing energy consumption through façades designed to eliminate thermal bridging, which will improve the comfort temperature inside the homes. This is coupled with the installation of aerothermal or solar thermal systems, the use of natural materials, and increasing the number of Nearly Zero-Energy Buildings (NZEBs).
• Multipurpose spaces. Generously sized and flexible areas inside the homes, distinctly separating living areas from bedroom areas and preserving their privacy.

In addition, Habitat Inmobiliaria is endorsed by a demonstrable guarantee mark—the Spatium Label—in terms of health and well-being across all its developments. The certification aims to objectively demonstrate good user-oriented practices across all our new developments.

CoHabit-20

The development of the company's residential schemes has an impact on the health, welfare and safety of both the people involved in the construction works and the local community. In this sense, Habitat includes an ESG perspective in the approval of all key suppliers, as well as specific clauses in all contracts. Such clauses set out a number of requirements that must be fulfilled by our main supplier groups, among which:

• Construction companies must have an ISO 45001-certified Occupational Health and Safety Management System in place.
• Marketing companies and architects must have a Handbook or Policy on ESG Best Practices in place.

Thus, we have produced a Handbook on Good Health and Safety Practices and an Environmental Practices Handbook for implementation in construction works, even though they are not Habitat's own workplaces.

In terms of Health and Safety, the greatest impact occurs at the time of construction of the building. Therefore, in addition to the criteria and measures referred to above, at least four audits are performed for each development during the execution of the works.

With the aim of enabling our strategy of contributing positively to local communities, we have set up our "Commitment to the Community Programme" that seeks to outline the structure on which Habitat Inmobiliaria works to positively impact the community.

Thus, an agenda for action has been drawn up for the benefit of society. Such action has materialised as follows:

• The appointment of stakeholders responsible for relations with the community.
• A programme to stimulate local economies and a programme to foster social cohesion in each development.
• Carrying out studies and enquiries to study local society's demands and implementing improvement actions.
• Quantifying the positive impact on society by using measurement and valuation methodologies.
• Donating to NGOs and associations, engaging in solidarity activities, scholarship programmes, training programmes, forums, and actions for the benefit of disadvantaged groups or groups with special needs.
• Implementing a preventive culture in terms of Health and Safety not only in our own workplaces but also in those over which we have influence.