PRESS RELEASE

HOUSING WITH A VISION: TAG IMMOBILIEN AG PUBLISHES SUSTAINABILITY REPORT 2022

• TAG portfolio to be nearly climate-neutral by 2045 in accordance with long-term decarbonisation strategy
• Development of a future-proof portfolio with liveable neighbourhoods that remains affordable for TAG’s tenants
• Focus on employee satisfaction and employee retention
• TAG in top 2% of all real estate companies worldwide in 2023 based on latest Sustainalytics ESG rating
• ESG targets implemented in LTIP for management board; Olaf Borkers to be put up for vote as new member of the supervisory board

Hamburg, 20 April 2023

TAG Immobilien AG (TAG) today published its eleventh sustainability report. This report supplements and complements the financial reporting in the annual report published on 16 March 2023 with all material non-financial aspects of the 2022 financial year.

Claudia Hoyer, COO of TAG, comments: “As a major landlord in Germany, and with an increasing footprint in Poland, TAG has a significant responsibility towards its tenants, its employees, as well as to society and the environment. In order to define a sustainable future path for our business activities, we must have a constant dialogue with all of our stakeholders. With the sustainability report 2022, we reflect on our sustainability ambitions and vision until 2045, as defined by a concrete set of measures and interim targets. Our utmost priority is the provision of climate-friendly housing at affordable rents for our tenants.”

Long-term business strategy including sustainability goals

TAG pursues a long-term business strategy that ensures economic stability as well as adherence to sustainability goals. This approach is sustained by the ongoing management of potential risks and opportunities (including climate-related risks as defined by the Task Force on Climate-related Financial Disclosures, TCFD). Further, sustainable financing agreements are more and more important for TAG, which has issued “green” promissory notes with a total volume of EUR 74.5m throughout the financial year 2022.

Decarbonisation strategy is based on concrete measures and mid- to long-term objectives

TAG’s goal is to make its property portfolio nearly climate-neutral by 2045 and thus make its contribution to limiting global warming to 1.5 degrees Celsius. In the future, TAG will harmonise the objectives and activities for its portfolio in Poland, which is still being developed, across the group.

With a property portfolio in Germany that emits approx. 30.5 kg CO₂eq/sqm (2021), TAG is well positioned compared to its competitors. By 2045, this value is to be reduced to below 7 kg/sqm, with interim targets of 28 kg/sqm by 2025 and 22 kg/sqm by 2030. Most of the ongoing modernisation of our portfolio is carried out with a range of framework contract partners. Nearly 63% of all buildings in TAG’s German portfolio have Energy Performance Certificates in the four best categories (A+ to C) and only 3% are in the two worst categories (G and H).

TAG's CFO Martin Thiel says: "A major challenge that we are currently facing is the provision of affordable yet climate-friendly housing for our tenants. We are working towards meeting this requirement by developing our portfolios with efficient and highly targeted modernisation measures. We plan to achieve this by investing around EUR 690m by 2045.”

Our employees shape our future – Promotion of employee satisfaction and retention, strong diversity in leadership positions

Qualified and committed employees form the basis for TAG's success. The current employee survey, which we conducted in 2022 with Great Place to Work, resulted in a good score for TAG: Around 70% of employees are satisfied with TAG as an employer. In order to retain our employees long-term, we offer them an attractive working environment, fair remuneration in line with the market, flexible working-time models, and promote a healthy work-life balance.

Diversity, including in management positions, has been a matter of course for TAG for many years now. The representation of women in leadership positions is currently at 58%, while the share of women in TAG’s management and supervisory board is 50% and 33%, respectively.

Responsibility to society – Portfolio development catering to the socio-demographic and economic profile of our tenants

TAG aims to offer its tenants an appealing, secure, and affordable home with a good service offering. During times of elevated inflation, rising energy prices, and insecurity due to the war in Ukraine, a close dialogue with our tenants as well as a proportional and responsible approach to rent increases, forms the basis for a long-term relationship with our tenants.

The challenges arising from refugee flows from Ukraine are also a critical factor. "TAG's efforts in Germany and Poland include donations, logistical help, information and translation services for refugees as well as providing housing to accommodate refugees," explains Claudia Hoyer. "Because of our business in Ukraine's immediate neighbour Poland, this tragedy feels very close to home. We are trying to help where we can."

Success of TAG's sustainability activities and outlook

The sustainability efforts of TAG and its employees have also been noted positively by ESG rating agencies. In a report published by Sustainalytics in 2023, TAG was ranked 10th out of more than 1,000 real estate companies analysed worldwide, which corresponds to a ranking in the top 2% of the real-estate sector. The rating was in the best possible category ("negligible ESG risk"). TAG's rating with other leading ESG rating agencies also further improved in 2022, e.g. its CDP Ratings rose from D to C.

Changes in TAG’s corporate governance: ESG targets implemented in LTIP for the management board; Olaf Borkers to be put up for vote as new member of the supervisory board

From FY 2023 onwards, the variable remuneration of TAG’s management board will have a stronger weight on ESG targets. Whereas in prior years ESG targets have been implemented in the Short Term Incentive Plan (STIP) already, in future years also the Long Term Incentive Plan (LTIP) will contain such goals with a total weight of 20% within the LTIP. Main targets set for the next four years refer to the decarbonisation strategy for the German real estate portfolio and to tenant satisfaction.

Lothar Lanz, deputy chairman of the supervisory board and chairman of the audit committee, will leave the supervisory board as he is reaching the pre-defined age limit for supervisory board members. It is proposed to the annual general meeting of TAG on 16 May 2023, that Olaf Borkers will take up Lothar Lanz’ place in the supervisory board. Olaf Borkers, born in 1964, has studied business administration and brings a broad range of expertise and experience in the real estate sector and in capital markets. In the past 20 years, he has worked in various senior positions at Deutsche Bank AG, RSE Grundbesitz- und Beteiligungs AG, TAG Immobilien AG (CFO position) and, most recently, Deutsche EuroShop AG (CEO and CFO position).

Further details on TAG's sustainability activities and sustainability goals can be found in the Sustainability Report 2022 at www.tag-ag.com/en/sustainability/sustainability-reports.

Contact

TAG Immobilien AG

Dominique Mann

Head of Investor & Public Relations

Phone +49 (0) 40 380 32 305

Fax +49 (0) 40 380 32 388

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TAG Immobilien AG

Verena Schulz / Kati Pohl

Strategic Real Estate Management

Phone +49 (0) 30 52 00 54 100

Fax +49 (0) 30 52 00 54 950

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