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Elo Mutual Pension Insurance Company

PRI reporting framework 2020

Basic information [OO 01 - 09] Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - HF 01]

Strategy and Governance

Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]

Indirect – Manager Selection, Appointment and Monitoring

Listed Equity and Fixed Income Strategies [SAM 01] Selection [SAM 02 - 03] Appointment [SAM 04] Monitoring [SAM 05 - 07] Outputs and outcomes [SAM 08 - 09]

Direct - Listed Equity Incorporation

ESG incorporation in actively managed listed equities [LEI 01 - 10] Implementation processes [LEI 01 - 10] (A) Implementation: Screening [LEI 04 - 06] (B) Implementation: Thematic [LEI 07] (C) Implementation: Integration of ESG factors [LEI 08 - 10] ESG incorporation in passively managed listed equities [LEI 11] Outputs and outcomes [LEI 12 - 13]

Direct - Listed Equity Active Ownership

Overview [LEA 01] Engagement [LEA 02 - 08] Outputs and outcomes [LEA 09 - 11] (Proxy) voting and shareholder resolutions [LEA 12 - 21]

Direct - Fixed Income

ESG incorporation in actively managed fixed income [FI 01 - 12] Implementation processes [FI 01 - 03] (A) Implementation: Screening [FI 04 - 06] (B) Implementation: Thematic [FI 07 - 09] (C) Implementation: Integration [FI 10 - 12] ESG incorporation in passively managed fixed income [FI 13] Fixed income - Engagement [FI 14 - 16] Outputs and outcomes [FI 17 - 18]

Direct - Property

Overview [PR 01] Pre-investment (selection) [PR 04 - 06] Selection, appointment and monitoring third-party property managers [PR 07] Overview [PR 08] Property monitoring and management [PR 09 - 10] Property developments and major renovations [PR 11] Occupier engagement [PR 12 - 13] Community engagement [PR 14] Outputs and outcomes [PR 15 - 16]

Direct - Infrastructure

Overview [INF 01 - 02] Pre-Investment (Selection) [INF 05 - 09] Selection, appointment and monitoring of third-party infrastructure operators [INF 10] Post-investment (monitoring and active ownership) [INF 11 - 16] Overview [INF 11] Infrastructure Monitoring and Operations [INF 12 - 14] Infrastructure Maintenance [INF 15] Stakeholder engagement [INF 16] Outputs and outcomes [INF 17 - 18]

Confidence building measures

Confidence building measures [CM1 01 - 07]

Export Public Responses

You are in Direct - Property » Post-investment (monitoring and active ownership)

Post-investment (monitoring and active ownership)

Overview

PR 08. ESG issues in post-investment activities

08.1. Indicate if your organisation, and/or property managers, considers ESG issues in post-investment activities relating to your property assets.

Yes

08.2. Indicate whether your organisation, and/or property managers, considers ESG issues in the following post-investment activities relating to your property assets.

We consider ESG issues in property monitoring and management

We consider ESG issues in property developments and major renovations.

We consider ESG issues in property occupier engagements

We consider ESG issues in community engagements related to our properties

We consider ESG issues in other post-investment activities, specify

          Communication with tenants and other partners e.g. by providing them property-specific ESG information

08.3. Describe how your organisation, and/or property managers, considers ESG issues in post-investment activities related to your property assets.

We monitor consumption figures on energy, electricity, water and waste and seek for opportunities to improve efficiency. This is mainly conducted by the managers, who monitor the figures through their IT-systems and seek opportunities to reduce these impacts as well as provide information for us related to these issues. Specific projects aiming at reducing environmental impacts (e.g. waste management improvements, air ventilation units, lighting, building automation systems, window sealings etc.) are discussed in cooperation with managers. 2019 we changed to carbon neutral electricity in our directly owned buildings.

We conduct tenant satisfaction surveys with our partners on yearly basis and go through the results as well as tenants' suggestions for improvements with property managers and decide on arrangements based on the results. We require careful selection of service providers on property maintenance and projects in order to assure that all regulations and legislation is met and sites are safe and environmental issues are covered.

With one of our main management partner we have established a cooperation group consisting of Elo's and managers' key personnel in order to develop implementation of energy and environmental issues.

Property monitoring and management

PR 09. Proportion of assets with ESG targets that were set and monitored

09.1. Indicate the proportion of property assets for which your organisation, and/or property managers, set and monitored ESG targets (KPIs or similar) during the reporting year.

>90% of property assets

51-90% of property assets

10-50% of property assets

<10% of property assets

(in terms of number of property assets)

09.2. Indicate which ESG targets your organisation and/or property managers typically set and monitor

Environmental

Target/KPI

Progress Achieved

          Energy and electricity consumption

          Water consumption

          Waste amounts and recycling

          Extension of properties monitored, commitment to national energy efficiency agreement. Monitoring system development and green electricity 2019.

          Extended installations of new technology equipment to decrease water comsumption

          Improvements in waste management facilities etc. Education offered for tenants Renewal of waste management agreements in office buildings.

Social

Target/KPI	Progress Achieved
Tenant satisfaction	Slightly increased tenant satisfaction. We have updated processes concerning activities linked to customer relationships such as property management, leasing, lease administration

Governance

Target/KPI

Progress Achieved

          Potential deficiencies in grey economy prevention (partner selection, tax compliance etc.)

          Conflict of interest considerations

          No major defects or risks identified

          Issues during the reporting year handled according to operation protocols and transparent decision-making

We do not set and/or monitor against targets

09.3. Additional information. [Optional]

During the reporting year, we conducted calculation of carbon dioxide emissions for the majority of our portfolio in property level. Target for energy consumption reduction in the portfolio was set to -7,5% by year 2025.

We aim at systematic measurement of incidents and insurance claims in our properties in order to improve prevention of these incidents for taking place.

PR 10. Certification schemes, ratings and benchmarks (Private)

Property developments and major renovations

PR 11. Proportion of developments and refurbishments where ESG issues were considered

11.1. Indicate the proportion of active property developments and major renovations where ESG issues have been considered.

>90% of active developments and major renovations

51-90% of active developments and major renovations

10-50% of active developments and major renovations

<10% of active developments and major renovations

N/A, no developments and major renovations of property assets are active

(by number of active property developments and refurbishments)

11.2. Indicate if the following ESG considerations are typically implemented and monitored in your property developments and major renovations.

Environmental site selection requirements

Environmental site development requirements

Sustainable construction materials

Water efficiency requirements

Energy efficiency requirements

Energy generation from on-site renewable sources

Waste management plans at sites

Health and safety management systems at sites

Health and wellbeing of residents

Construction contractors comply with sustainability guidelines

Resilient building design and orientation

Other, specify

11.3. Additional information. [Optional]

Occupier engagement

PR 12. Proportion of property occupiers that were engaged with

12.1. Indicate the proportion of property occupiers your organisation, and/or your property managers, engaged with on ESG issues during the reporting year.

>90% of occupiers

50-90% of occupiers

10-50% of occupiers

<10% of occupiers

(in terms of number of occupiers)

12.2. Indicate if the following practises and areas are typically part of your, and/or your property managers’, occupier engagements.

Distribute a sustainability guide to occupiers

Organise occupier events focused on increasing sustainability awareness

Deliver training on energy and water efficiency

Deliver training on waste minimisation

Provide feedback on energy and water consumption and/or waste generation

Provide feedback on waste generation

Carry out occupier satisfaction surveys

Health and wellbeing of residents

Offer green leases

Other, specify

12.3. Additional information. [Optional]

In some of our buildings, modern information screens in common areas provide real-time information on consumption figures (energy, water etc.) of the building as well as advice in order to reduce these environmental impacts.

For residential tenants, we have building specific websites, which offer information on energy efficiency, general instructions, contact information etc.

In our large shopping centers waste management is a significant issue. We aim at minimizing waste amounts and maximizing recycling by increasing awareness and offering practical guidance for improved waste management in cooperation with our tenants.

PR 13. Proportion of green leases or MOUs referencing ESG issues

13.1. Indicate the proportion of all leases signed during the reporting year that used green leases or the proportion of Memoranda of Understandings (MoUs) with reference to ESG issues.

>90% of leases or MoUs

50-90% of leases or MoUs

10-50% of leases or MoUs

<10% of leases or MoUs

0% of leases or MoUs

N/A, no leases or MoUs were signed during the reporting year

(in terms of number of leases or MoUs)

13.2. Additional information.

We provide guidance for tenants in environmental efficiency objectives by providing for example sustainability guides and tips. In some properties, we have certifications (LEED), which require many ESG related operations such as improved waste management, energy efficiency monitoring etc. These operations and initiation of certificates is done in cooperation with our tenants. Tenants are also committed in environmental efficiency objectives in many properties through maintenance rents.

Community engagement

PR 14. Proportion of assets engaged with on community issues (Private)

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