CSR Policy a.s.r. real estate

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2 2 Foreword We are pleased to present you the third edition of s Corporate Social Responsibility (CSR) policy. Through this policy, we aim to inform you about the goals we have set ourselves and which we believe will have a contribution to a more sustainable, viable and workable society. We are pleased to see that our efforts increased the sustainability of our company and real estate portfolios. At the same time, we are more than aware that major and necessary steps still need to be taken to collectively safeguard a livable world for future generations. With this policy, we want to show our ongoing focus on CSR. As a real estate investment manager, making our real estate more sustainable is an important objective. We believe in long-term relationships with our stakeholders. Together with them, we want to reduce our carbon footprint, increase the share of renewable energy, and focus on the reusability of materials. But CSR goes further than just the sustainable management of property. We want to contribute to both the environment and the society by investing in neighbourhoods, partaking in the national energy transition process and offering internships, among other things. We also seek to have satisfied employees who are sustainably employable and aware of their own roles in contributing to our CSR objectives. We are confident that with this third edition of the CSR policy, we will continue to contribute to a more sustainable and viable society. Warm regards, Dick Gort CEO Responsible business practice goes further than sustainable management of property. We want to contribute to both the environment and society.

3 3 Introduction At present, the reduction in carbon emissions and the energy transition process in the Netherlands are going too slowly to help prevent the two degrees warming of the planet. is also aware that built-up areas and the agricultural sector play an important role in this. As a real estate investment manager with a long-term focus, wants to actively deal with this in order to have the greatest possible impact. That is why responsible investment management is a top priority for. The company invests in property where retailers, businesses, rural leaseholders and householders wish to do business, shop and/or live, as the case may be, now and in the more distant future. From a.s.r. real estate s perspective, it is not possible to guarantee sustainable returns if properties are not appealing to users in the long run. This CSR policy forms the basis for the CSR policies of the Funds and business lines. ASR Dutch Core Residential Fund (ASR DCRF), ASR Dutch Prime Retail Fund (ASR DPRF), ASR Dutch Mobility Office Fund (ASR DMOF), ASR Property Fund (ASR PF) and the Rural Real Estate business line have each drawn up their own CSR policy document, which sets out their vision and details their specific objectives. This is needed due to the different characteristics of the portfolios (homes, retail, offices and rural real estate) and the consequent wide variety of actions and measures. All these policy documents tie in with the current CSR policy of a.s.r. Nederland. This policy document, along with those of the Funds and the Rural Real Estate business line, can be found on the website: asrreim.com. For more information on a.s.r. Nederland s CSR policy, please visit: Dotterbloemstraat, Nieuwegein

4 4 Vision, mission and core values : more than a century of experience in real estate investment We have been investing in and managing real estate portfolios on behalf of institutional investors for more than 125 years. Our rich history began in 1890 with the purchase of derelict lands on the De Utrecht estate in the Dutch province of Brabant. In the 19th century, we began investing insurance premiums in dwellings alongside our investments in rural real estate. Shops and offices were added in the 20th century. We are part of a.s.r., one of the biggest listed insurance companies in the Netherlands. Our vision Driven by long-term success: Perpetual value for investors, users and society at large Long-term thinking is part of our DNA. We want to be a business that our clients and other stakeholders can trust and that is a valuable part of society. Our long-term vision translates into the judicious selection, management, development and redevelopment of agricultural land and real estate. We also have a strong focus on quality, believing that quality retains its value. For this reason, we continuously invest in maintenance, good-quality materials, sustainability of buildings and sustainable land use. To us, sustainability is not a vogue word; it is an integral part of our investment and management practice dating back more than 125 years, in the heart of society. Our mission We create perpetual value both for our investors and for society at large by trading and investing responsibly in high-quality real estate on a daily basis. Our efforts to achieve perpetual value are not driven solely by financial motives. We also have a clear social motive. We feel that we have a responsibility to contribute to a vibrant living, working and residential environment for everyone. Besides, our productive long-term relationships with tenants, land users and residents result in stable income and value development for our investors. Our core values Helpful, forward-thinking and resolute is a division of a.s.r. Nederland; as such, it endeavours to live by the same values in its business dealings. a.s.r. Nederland s vision is underpinned by three values: 1. helpful: we are approachable, we offer a listening ear and we are solutions-oriented 2. forward-thinking: we are empathic and think ahead to provide proactive support to our clients, advisers and colleagues 3. resolute: we are alert, have a sharp focus on the details and the process, and we come up with solutions. We coordinate, press ahead and do as we promise

5 5 Strategic objectives The CSR policy of and its Funds takes responsible investment management into account at all times, since it concerns the level and stability of the financial return and the accompanying risk profile. assesses all their CSR choices in this light. The CSR policy is thereby based on four key pillars, the so-called four Ps: Property, Partners, Planet and People. has defined a main strategic objective for each pillar. For each main objective, there are several smaller objectives that aims to achieve by the end of 2020 although in many cases, we can do better than that deadline. There is in fact also a fifth P: Profit. The company regards this as a self-evident parameter for the other four Ps. After all, a positive, stable return is an investment manager s core business. The table on page 6 shows the objectives that have been set for the period In the following chapters, the strategic objectives are explained in further detail. Property Partners Planet People Sustainable portfolio Sustainable partners in long term relationships Contribution to the environment and society Ongoing employability of employees Increasing sustainability of the portfolio through acquisitions and renovations Improve environmental performance of the standing investments Tenant satisfaction rating of at least 7 (out of 10) Long term relationships and specific agreements about sustainability In control Investing in CSR partnerships Helping by taking action Investing in local neighbourhoods Contribution to the opportunities and development of pupils and students Optimal monitoring of environmental performance Personal development of employees Informed and involved employees Employee satisfaction rating > 80% Increase in awareness and knowledge of CSR Reduce energy consumption and GHG emissions

6 6 Property Strategic objectives Increasing sustainability of the portfolio through acquisitions and renovations Improve environmental efficiency of the standing investments The pillar Property is about the sustainability of the real estate portfolios, in regard to environmental performances, ecology and the use of sustainable and recyclable building materials. a.s.r. real estate invests in sustainable, attractive properties and continues to invest in them to ensure lasting attractiveness. Increasing sustainability of the portfolio through acquisitions and renovations The Funds and business lines continuously strive to make the properties in their portfolios more sustainable. The focus is on both sustainable acquisition and making standing investments more sustainable. Hereby s demands comply at least with the Dutch Building Code, for instance on the minimum EPC label standards for new buildings. For the residential properties, ASR DCRF aims for an average Energy Index of 1.30 (energy label B) by ASR DPRF s goal for 2020 is to ensure that over 80% of the portfolio has been awarded a Green Label and for ASR DMOF s offices the 2020 objective is that 80% of the portfolio has been awarded an energy label A. The objective for ASR PF s direct portfolio is to be 100% energy label awarded. The Rural Real Estate business line focuses on sustainable soil management, applying sustainable forestry, farmland related growth and being asbestos-safe in When possible, a Green Building Certificate (like BREEAM) will be deployed and is constantly working on investigating and implementing new developments and applications, such as solar parks, the circular economy, transforming vacant spaces and/or buildings, offering electric bike and car services, energy neutral dwellings, charging points for electric cars and greenery and biodiversity. ASR DCRF - Residential The residential fund aims to reduce the average Energy Index (EI) at portfolio level to less than 1.30 (energy label B) by In 2017, the EI will lower from 1.52 to 1.35 by acquiring sustainable dwellings and completing several sustainable renovation projects. Since 2015, the Fund has renovated no fewer than 850 dwellings, upgrading them to energy label A. From 2018 to 2020, the Fund will focus both on renovating at least an additional 500 homes, upgrading them from energy label D-G to energy label A, and acquiring highly- efficient as well as energy-neutral dwellings. In 2015, about 11% of the portfolio had an EI greater than 2.4. The Fund expects to reach a percentage of maximum 7% in 2018 and aims to reduce this to less than 3% by The Fund aims to increase the share of properties with a Green Label Certificate (such as BREEAM) from 1% in 2016 to at least 11% in 2018 and 15% by 2020.

7 7 Distribution of energy labels before first renovation and after current renovations - ASR DCRF PERCENTAGE % A+ 12% 33% A+ A 8% 33% 26% 24% Mid 2015 Q Q (prognosis) A % 15% 20% 19% 17% 16% 14% 14% 10% 12% 5% 5% 9% 7% 5% % 1% 1% Energy index A+/A B C D E F G EPA Label Spotlight: Staalmeesterslaan, Amsterdam & Bonifaciuslaan, Hilversum The renovation of 7 residential towers, with 430 apartments, towards energy label A After successfully renovating 213 single-family homes in 2015 and 2016, the Fund commenced with the renovation of 7 apartment buildings in All 430 apartments will have been transformed from energy label D/E/F/G to energy label A by Q Five of these towers are located at the Bonifaciuslaan, Hilversum (250 units) and two at the Staalmeesterslaan, Amsterdam (180 units). The appearance of the building is greatly improved trough modernization and upgrades of the common areas and the parking garages. The sustainable upgrades in the Staalmeesterslaan include wall cavity insulation, HR++ glazing, LED lighting in common areas and the parking garage and individual heating systems. At the Bonifaciuslaan insulation and HR++ glazing are installed as well as a sophisticated central heating system, which integrates a central heat pump, high-efficiency boilers and solar panels. This results in homes with a much improved indoor climate and significantly lower energy costs. These investments are appreciated through the WWS systems, which allow the increase of rent on all apartments. These renovations contribute to the Fund s goal of reducing units with an Energy Index (EI) > 2.4. After the renovation of these units the share of the portfolio with an EI > 2.4 has been reduced from 8% to 7%.

8 8 ASR DPRF - Retail ASR DPRF has set the goal to increase the share of the portfolio awarded with a Green Label to 80% by In 2017, this figure was 69%. In the same year, the Fund received BREEAM In-Use certificates for the Hudson s Bay department store in Haarlem (after receiving certificates for HBC Amstelveen and HBC Leiden in 2016). The Fund will also receive BREEAM In-Use certificates for district shopping centres Vathorst and Vleuterweide. The goal is to certify all wholly owned district shopping centres by 2020 and all newly developed properties on completion of the project. In addition, the Fund continues with transforming spaces above shops into apartments with a green energy label. This decreases the carbon footprint, increases the quality of life in and liveliness of Dutch city centres and it contributes to the sustainable use of scarce space. Distribution of energy labels as per Q (including pipeline) - ASR DPRF PERCENTAGE % 48% Q Q % % 12% 9% 9% 13% 10% 10% 3% 5% 3% 3% 0 A B C D E F G ENERGY LABEL Langestraat, Alkmaar

9 9 ASR DMOF - Office ASR DMOF seeks to increase the share of its portfolio awarded with a Green Label to 90% and with an energy label A to 80% by In , the Fund expects to refurbish a minimum of 80% of the portfolio s properties that currently have an energy label D, E, F or G in order to at least obtain an energy label A. Green Building Certificates (among others BREEAM, LEED and GPR) are issued in recognition of sustainable and well-managed properties. About 12% of the portfolio, including the pipeline, currently holds a Green Building Certificate. With the planned renovations, this percentage will increase to at least 30% by Preparations for refurbishing the Laan van Puntenburg asset in Utrecht have almost been completed. Once renovated, the asset will receive an energy label A and a BREEAM Excellent certificate. Distribution of energy labels, before and after planned renovations as per Q ASR DMOF PERCENTAGE % 80% 44% Before renovation After renovation % 0% 11% 4% 6% 6% 2% 3% 3% A B C D E F G 5% 2% ENERGY LABEL Laan van Puntenburg, Utrecht

10 10 ASR PF ASR PF focuses on a fully EPA-certified direct real estate portfolio. As for the direct real estate portfolio, the sustainability policy and implementation of the non-listed real estate funds in which the Fund invests are assessed in the Global Real Estate Sustainability Benchmark (GRESB). For its non-listed real estate funds, the goal is to invest in funds with a GRESB score of at least three out of the maximum possible five stars. The management of ASR PF s listed real estate funds is outsourced to AXA Investment Managers (AXA). Within the selection procedure, sustainability is an important topic. To further improve insight in the listed funds, ASR PF is investigating which tool could help them to make in-depth portfolio analyses, set concrete goals and carry out periodic assessments. Distribution of energy labels retail - ASR PF PERCENTAGE % 30 29% % 5% 4% 0% 0% A B C D E F G ENERGY LABEL Distribution of energy labels offices - ASR PF PERCENTAGE % % % 0% 0% 0% 0% A B C D E F G ENERGY LABEL

11 11 Rural Real Estate The Rural Real Estate business line s first objective is to take an active role to enhance the knowledge about soil fertility. This is why participates in a charter coalition promoting sustainability. The ultimate goal is to make certified farming a reality. One of the topics raised, especially with dairy and cattle farmers, is the relationship of available farmland and the number of heads of the farmer s herd. At present, there are attempts to quantify farmland related growth, but there is no univocal manual that one can apply. For this reason, a.s.r. real estate s second goal is that its stewards actively discuss the achievement of farmland related business models together with the farmers. The regulatory practice prescribes that asbestos needs to be removed before the year As the impact of asbestos is considered to be harmful for health and safety reasons, decided to accelerate this cleaning process and defined the goal asbestos safe by At present, 38% of the portfolio is declared asbestos safe. The objective for sustainable forestry is to age s forests every year by cutting less m 3 wood relative to the growth rate. If less wood is cut, the forests manages will age. An ageing forest has a positive impact on the nature experience and value for our visitors. Rural estate Molecaten, Hattem

12 12 Improve environmental efficiency of the standing investments Properties can be made more sustainable with relatively small measures instead of just large sustainable renovations. The portfolio is assessed to identify green solutions such as LED lighting, high-efficiency boilers, H++ glass, solar panels, water-saving plumbing and sedum roofs. a.s.r. real estate has also mapped out how sustainable improvements can be made in day-to-day operation. The resulting actions are documented and monitored at asset levels. Where possible, sustainability improvements are linked to the multi-year maintenance programme. This ensures that the employees and partners are aware of the importance of using sustainable materials and working methods. In 2015 and 2016, ASR DCRF applied energy saving measures in more than 20% of the standing investments; it aims to increase this percentage to over 50% of the portfolio by ASR DPRF and ASR PF focus on energy saving measures in all redevelopments and large maintenance projects. In 2018, the portfolio of the new office fund, ASR DMOF, will be assessed to identify green solutions (LED lighting, high-efficiency boilers, solar panels, water-saving plumbing and sedum roofs) and to see how sustainable improvements can be made in day-to-day operation. The table below shows the 2020 strategic objectives for the pillar Property per fund or business line. Property DCRF Residential DPRF Retail DMOF Offices Property Fund Rural real estate Reduce average Energy Index to at least 1.30 Reduce ownership of properties with Energy Index > 2.4 to less than 3% of portfolio Implement energy saving measures in 50% of the portfolio Obtain Green Building Certificates for 15% of the portfolio Over 80% of the portfolio will have a Green Label Portfolio 100% asbestos safe Environmental savings in all projects and included the maintenance BREEAM certification for newly developed properties BREEAM In-Use for all wholly owned District Shopping Centres Green Label for > 90% of the portfolio An energy label A for > 80% of the portfolio Green Building Certificate for > 30% of the portfolio Explore energy saving measures forindividual assets Energy labels awarded to entire direct real estate portfolio Minimum Green Star GRESB score with three out of five stars for direct and unlisted real estate Gaining an understanding of objective ESG scores for listed real estate Promotion of sustainable soil management Portfolio asbestos safe Apply sustainable forestry Farmland related growth

13 13 Partners Strategic objectives Tenant satisfaction rating of at least 7 (out of 10) Long-term relationships and specific agreements about sustainability In control Investing in CSR partnerships The pillar Partners focuses on the wishes of the stakeholders (tenants, land users, contractors and investors) and our relationships with them. The principal objective is to maintain long-term relationships with sustainable partners. seeks to achieve a high satisfaction rating from its stakeholders by paying attention to their wishes and interests. Together with them, wants to reduce the carbon footprint, increase the share of renewable energy and focus on reusability of materials. That is why the company prefers to team up to sustainably upgrade the real estate portfolios. Tenant satisfaction of at least 7.0 (out of 10) The tenants are very important partners. Therefore, wants them to be involved, aware and satisfied. The Funds carry out periodic satisfaction surveys among their tenants and the business line Rural Real Estate does the same among the leaseholders to find out how they rate the services, properties and their living and working environments. The findings are processed by asset management and, where applicable, discussed with the internal or external property managers. Both parties then formulate follow-up measures. aims to achieve an average tenant satisfaction rating of at least 7 (out of 10). Long-term relationships and specific agreements about sustainability regards the need for long-term relationships as self-evident. The Funds feel honoured to work for the long-term benefit of the investors, but the company also makes long-term agreements with its tenants, leaseholders, suppliers and other partners. This creates certainty, enhances the quality of the supplier s services and allows to make explicit agreements on sustainability measures. Investors The Funds investors generally stay involved with for many years. It goes without saying that must observe openness and transparency in the mutual dealings. The company informs its investors in the Three Year Business Plans, and the Annual and Quarterly Reports. Furthermore, tries to involve them in important decisions that affect the assets, stakeholders and their surroundings. Where ESG issues are concerned, the Funds asks the Meeting of Investors through the yearly updated Three Year Business Plan to approve the Funds CSR policies every year. In addition, the Funds offer investors detailed insight into the sustainability performance through the participation in GRESB, and by way of newsletters and the Fund s Annual and Quarterly Reports.

14 14 Green Lease Tenant Responsibility + obligations Landlord Tenants and leaseholders seeks to ensure that its tenants and leaseholders are involved, aware and satisfied. In addition to being well-informed and involved in making the property more sustainable, a.s.r. real estate wants them to make a positive impact on energy reduction and sustainable land use through their behaviour. is convinced that sustainable behaviour is as important as sustainable, energy-efficient properties. In addition, likes to have input from its tenants to use their knowledge and experience to better meet their needs. To this end, holds periodic consultations with relatively large tenants and leaseholders (such as farmers, retailers and office tenants) and CSR is a standing item on the agenda of these sessions. also strongly focuses on concluding Green Leases for its commercial tenants and educating the residential tenants by distributing a sustainable living information package to all new tenants and sending a yearly CSR newsletter. In the coming years, s focus on tenant participation will certainly continue. Eempolis, Amersfoort

15 15 Interview: word from a tenant Arcadis is the largest tenant in Eempolis, Amersfoort. Frans Hofstede, Financial Director of Arcadis Netherlands, shares his thoughts on the company s choice to become a tenant in Eempolis and about its sustainability policy. How important is it that Arcadis s offices are located near a mobility hub? One of the priorities of Arcadis s housing policy is that its offices must be located within walking distance of a public transport hub. Eempolis has a leasable floor area of approximately 32,000 sq.m., 13 tenants and an energy performance label A. Arcadis is renting over 9,500 sq.m. in the building. Eempolis is a multi-tenant building adjacent to the Amersfoort railway station, one of the Netherlands key public transport hubs, connecting the North and East of the country with the Randstad conurbation. Arcadis is a design, engineering and management consultancy firm with approx. 27,000 employees working in more than 350 offices in over 40 countries. Its head office is located in Amsterdam. This policy is put into effect each time when the lease on a property that is not located near a mobility hub expires. Arcadis will then look for a location that meets this requirement. Nine of Arcadis s eleven offices in the Netherlands are now located near a public transport hub. How does Arcadis like the location and amenities? Access by bicycle, car and public transport is good to excellent. It is also very convenient to have a broad offer of restaurants, supermarkets and other shops within walking distance. This includes the station concourse, which offers quite a few retail shops. Eempolis s large parking garage and its proximity to park & ride facilities complete the required amenity level. Does Arcadis encourage its people to use public transport? Our employees are offered a public transport card, which allows them to choose the sustainable and efficient way of transportation that suits them best. Given that our offices are located near public transport hubs, we are seeing a significant increase in the use of these public transport cards we distribute. Frans Hofstede, Financial Director of Arcadis Netherlands In addition, all our larger offices offer electric bicycles and fully electric shared cars; these are available to colleagues visiting clients whose offices are difficult to reach by public transport. All in all, we offer plenty of alternatives to driving to work. Are the Green Lease provisions in the contract far-reaching enough for Arcadis? The long-term lease on Eempolis is governed by sustainability targets based on Green Lease provisions. The targets that were defined earlier may eventually become obsolete. When they do, we are dependent on the landlord. That is why we are pleased that the building is part of the ASR Dutch Mobility Office Fund, managed by investment management. a.s.r. has demonstrated its commitment to high sustainability standards, reflected, for instance, in the way in which it has turned its own head office in Utrecht into a textbook example of a sustainable building.

16 16 Partners in management, maintenance and (re)development With the works carried out for the management, maintenance and (re) development regarding a.s.r. real estate s properties, the company would like to team up with sustainable-conscious suppliers and contractors that share the believes and interests of. By doing so, can be certain that care has been put into the use of sustainable building materials, future operational costs and output, and the energy requirements for its portfolios. By working with suppliers and contractors who not only aim to do what is most profitable, but also the most efficient, is better able to meet its CSR goals. As an example: since 2011, has only purchased green electricity for their real estate portfolios. The company has also employed waste disposal services that adhere to carbon-neutral methods for the tenants waste collection. In 2017, ASR DPRF and ASR DCRF have sharpened their Programme of Requirements for new buildings and large redevelopments that are currently in place, to standardize the acceptable materials and processes. Focus for next years is to make ESG requirements stipulated in the working contracts more stringent, in addition to mandatory screening by the Safety/CDD department. Spotlight: Large development works within the portfolio with limited effect on the ecological footprint The ASR Dutch Prime Retail Fund invests in high street retail and convenience oriented shopping locations, with sustainable long-term value as a result. Because the energy performance of the Fund s assets depend on the usage by the retailer, having a program of requirements and a fit-out guide benefits the CSR performance. The ASR Dutch Prime Retail Fund will use FSC timber for all wooden structural and finishing uses within the Fund s portfolio. Having an FSC label contributes to the reduction of global deforestation. Furthermore, for common areas in the property s, LEDlighting is used when renewing the lighting fixtures. LED-lighting not only saves energy, but also add to lower service charges for the retailer. The ASR Dutch Prime Retail Fund can impact CSR measures to a greater extend in DSCs, compared to high street retail. The Manager aims to enable parking facilities near DSCs with electronic charge options for consumers to enjoy and provide safe, pleasant-to-use common areas for tenants and consumers alike. In inner cities the Fund contributes to the liveliness of the city by providing apartments in former vacant areas. A fit out guide and program of requirements help assist project managers and retailers to operate the retail assets with the ASR Dutch Prime Retail Fund s CSR targets in mind. Buitenplein 101, Amstelveen

17 17 In control s risk management function has a number of key principles. First, the Manager conducts risk management in accordance with the AIFMD licence it was awarded by the AFM at the beginning of In addition, IT risks are managed in accordance with the Cobit standards of the Dutch Central Bank (DNB) and integrity risks are managed on the basis of DNB s SIRA (Systematic Integrity Risk Assessment). Finally, the risk management model (ERM COSO) is based on the central risk management of a.s.r. Nederland, supplemented by local real estate risk management tools. Each year, a risk self-assessment is conducted with the Executive Board based on the company s objectives. Key policies are reviewed every year, addressing such aspects as conflict of interest, incidents and outsourcing. If necessary, the existing controls are supplemented or changed. Dutch Insurance Code Governance principles are enshrined in the Dutch Insurance Code, which was implemented in January The Dutch Insurance Code is mandatory for all supervised insurance companies. As a result, it also applies to the managing directors of a.s.r. and its management team members. This code states the terms and conditions that risk management must comply with, including the monitoring by Audit (third line of defence) based on the Three Lines of Defence model. Evaluation of processes and reports s large purchase, sale and investment proposals are also reviewed by the Compliance Officer and the Business Risk Manager. They form the second line of defence and ensure that all procedures and fund restrictions are applied in the correct manner. All key processes are identified and described in an AO/IC and ISAE framework. Every month, the Internal Control team tests the ISAE controls. As of 2018, the ISAE 3402 controls are tested annually by the external auditor. Every quarter, the Business Risk Manager reports the ISAE test results, his or her own periodic observations of real estate risks and any findings from the processes to the Business Risk Committee. This enables the Fund Management Team to monitor the speed at which a.s.r. real estate resolves incidents (NFR dashboard report, ISAE). Code of ethics has introduced a code of ethics, which consists of a diverse range of integrity policy documents on the issue of combating bribery and corruption. These documents contain various rules of conduct for the proper implementation of this Code of ethics. Investing in CSR partnerships In the years to come, will continue working together with its CSR partners. For instance, has a partnership agreement with IVN, the Institute for Nature Education and Sustainability. The main goal of this coalition is to develop sustainability initiatives in neighbourhoods in order to make these neighbourhoods (even) more livable and to increase the awareness of sustainability. The objectives were made more detailed and focused during A specific project is the Tiny Forest. Together with IVN, is trying to realize those Tiny Forests at several locations in the next few years. In addition, has come to an agreement with Vandebron, a supplier of sustainable energy. The idea is to encourage as many of its residential tenants as possible (almost 5,000) to switch to renewable energy. As a pilot, has approached about 500 of its tenants during Some door-to-door actions were more successful than others. In 2018, will continue to evaluate and proceed with actions that have impact.

18 18 Because believes that entering into CSR partnerships is a good, visible and effective way of adding social value, will seek at least one new CSR partner during 2018, bringing the total number of CSR working partnerships to three. would therefore like to enter into talks with possible partners. At the end of 2017, already discussed opportunities with two potential new partners. Increasing knowledge and network For, increasing and sharing its knowledge and network in the area of CSR is an important objective. In the Company, involvement, participation and support of promoting CSR initiatives throughout the industry and society as a whole is top of mind. For this reason, a.s.r. real estate is affiliated with several organizations (including IVBN, INREV, NRW, GRESB, DGBC, NEPROM, VOGON and RICS) and participates actively in the sustainability working groups of a.s.r. Nederland, IVBN, NEPROM and DGBC. a.s.r. real estate regularly talks about its CSR vision and activities at congresses and other events such as Provada, the Dutch Green Building Week, a NeVaP sustainability event and the Rooftop Symposium. CSR policy a.s.r. Nederland s CSR policy ties in with the current policies of a.s.r. Nederland. Important CSR policies are Socially Responsible Investment and the obligation to have all employees take an oath or make an affirmation. Socially Responsible Investment For a.s.r. Nederland, Socially Responsible Investing (SRI) is an important part of CSR. a.s.r. Nederland wants to have a leading role in the area of sustainable business in the financial sector. Last 5 years, a.s.r. Nederland was sector leader of the Fair Insurance Guide, a benchmark concerning social, environmental and human rights standards. As an insurer, investor and employer as well as involved member of society we are always looking for the right balance between people, society and the environment. We deliberately choose not to invest in certain industries and companies. The criteria we apply relate to the arms trade, human rights and the environment. The Sustainable Investment Code, the UN Principles for Responsible Investment (UN PRI) and the UN Global Compact are guided by the following principles: Sustainable Investment Code The Dutch Sustainable Investment Code was drawn up by the Dutch Association of Insurers and applies to its individual members. Members of the Association agree to be bound by and act in accordance with the spirit of the Code and can be held accountable for this. In the event of noncompliance, the Association may take appropriate measures. UN PRI In 2011, a.s.r. Nederland ratified the United Nations Principles for Responsible Investment (UN PRI). The 1,500 companies worldwide that endorse these principles together manage investments worth 54 billion. By applying the six UN principles for responsible investment, we help to build a more sustainable financial system. UN GLOBAL COMPACT a.s.r. has ratified the United Nations Global Compact, an initiative to encourage corporate social responsibility. By signing the UN Global Compact, a.s.r. endorses these principles in the area of human rights, labour rights, environment and anti-corruption, supports them and will carry them into its sphere of influence. Oath or affirmation Since 1 April 2015, employees in the financial services industry are required to take an oath or make an affirmation. As an employee, you do so to demonstrate that you will act ethically and with due care. The objective is to help restore public confidence in financial institutions and their role in society. a.s.r. Nederland too has introduced this system for its employees. In November 2015, employees of a.s.r. real estate took an oath or made an affirmation in the presence of their director, the Compliance Officer and their own colleagues.

19 19 The table below shows the 2020 strategic objectives for the pillar Partners per fund or business line. Partners DCRF Residential DPRF Retail DMOF Offices Property Fund Rural real estate Optimal engagement of partners in chain Continuous check for compliance with CSR requirements and objectives Tenant satisfaction rating of at least 7.5 (out of 10) Active tenant participation programme Optimal engagement of partners in the retail chain Continuous check for compliance with CSR requirements and objectives Tenant satisfaction rating of at least 7.0 (out of 10) in a new tenant satisfaction survey Active tenant participation programme Optimal engagement of partners in chain Continuous check for compliance with CSR requirements and objectives Conducting a tenant satisfaction survey with a satisfaction rate > 7 100% green leases for new lease agreements Optimal engagement of partners in chain Continuous check for compliance with CSR requirements and objectives Tenant satisfaction rating of at least 7.0 (out of 10) 100% green leases for new leases agreements Cooperation with coalition partners to implement sustainable soil management Tenant satisfaction rating of at least 7.5 Farmers knowledge sharing events on ground lease and soil management Investigate Farmland Guidance in partnership 100% green leases for new lease agreements

20 20 Planet Strategic objectives Helping by taking action Investing in local neighbourhoods Contribution to the opportunities for and development of pupils and students Optimal monitoring of environmental performance Reduce energy consumption and GHG emissions The pillar Planet stands for the active and valuable contribution makes to nature, society and the environment. Helping by taking action The motto of a.s.r. Nederland is helping by taking action. Its contribution to nature and society consists not only of a pecuniary sum; a.s.r. Nederland also tries to really help others. The a.s.r. Schools Challenge, Financial literacy workshops and the social partnership with Feyenoord football club are all recent examples of this. Volunteer work also comes under this category and every a.s.r. employee may devote one day each year to this. Many employees also contribute to, for example a.s.r. Schools Challenge, Money Week, National Reading Breakfast, and perform voluntary management duties on s own estates. Last year, 90 employees of participated in six different projects. The goal for coming year is to organize at least four charity projects. Together with elderly to the local garden centre

21 21 Rooftop Wibautstraat, Amsterdam Investing in local neighbourhoods considers it important that areas in which it manages property continue to thrive. That is why is actively involved in these districts and communities. contributes to associations for city centre management and organizes activities in its shopping centres. The company also sponsors neighbourhood and city centre initiatives so that these areas remain attractive places to work, shop, recreate and/or live. sets aside a budget to invest in neighbourhood facilities and greenery, such as playgrounds, hiking trails, green roofs, Tiny Forests or other enhancements. The tenants are actively involved in the allocation of this budget. In addition, has opened up and vitalized many country estates and nature conservation areas to the public for the purposes of strengthen the relationship between citizens and nature. Climate change adaptation Insight into the adverse effects of climate change is vital in order to respond to the impact which climate change already has, while at the same time preparing for future effects. This is why all the Funds of have investigated which effects, and corresponding urgencies, are applicable to their portfolios. From 2018 onwards, all a.s.r. Funds will monitor these impacts closely, as part of their commitment to managing a future proof portfolio. The monitoring results will be communicated in the Fund s annual reports.

22 22 Higher GRESB scores for all a.s.r. Real Estate Funds In 2017, all s Funds improved last year s scores on the Global Real Estate Sustainability Benchmark (GRESB). The ASR Dutch Core Residential Fund even recorded an excellent performance, with its GRESB score for 2017 being 28.5% higher than the 72 score in 2016 (on a scale of 0 to 100). The residential fund was also awarded four out of the maximum possible five stars. The ASR Property Fund increased its score by 10.5% to 64 and now has three stars, while the three-star score of 66 achieved by the ASR Dutch Prime Retail Fund in 2017 was 4.8% higher compared to the year before. As a result, all the Funds now score above the average of their peer groups. The ASR Dutch Mobility Office Fund, which was set up in December 2016, will take part in GRESB for the first time in GRESB is an independent benchmark that assesses real estate funds sustainability policies around the world. Fund managers can use their GRESB scores as the basis for examining and improving their sustainability policies. ASR Real Estate Investment Management ASR Dutch Core Residential Fund (70) +28,5% ASR Real Estate Investment Management ASR Dutch Prime Retail Fund (61) +4,8% ASR Real Estate Investment Management ASR Property Fund (63) +10,5% Contribution to opportunities for and development of pupils and students The future belongs to young people. That is why provides traineeships to a number of students at higher professional and university level each year. This greatly improves their prospects in the labour market, particularly in poor economic times. In addition, can learn and gain inspiration from students. The objective is to offer at least four work placements and a traineeship each year. In addition, various employees of give one or more guest lectures each year at universities and colleges of higher professional education, and has a partnership agreement with the interfaculty student association known as FRESH Students. On periodic basis, a.s.r. real estate joins hands to organize activities such as an In-House Day, a property tour or a symposium. Optimal monitoring of environmental performance aims to reduce its energy consumption and CO2 emissions. This goes hand-in-hand with gaining more insight in the portfolios environmental performance. An important ongoing objective is to optimize the monitoring of usage as much as possible. All the gas and electricity meters for the general systems in s buildings are read remotely and form part of s online data management system (DMS). Since 2016, water consumption has also been registered. This enables to monitor the gas, electricity and water consumption and waste production very closely and take active steps to reduce GHG emissions in a controlled manner. Important goals for 2018 are to further optimize the DMS and to analyze the data more actively.

23 23 s base monitoring and management of the environmental performance are confined to collective heating systems and the energy consumption of the communal areas in the portfolios. The remaining electricity, heating and water consumption and the production of waste in/for the so-called tenant space are for the tenants account. However, since 2017, has insight into the clustered residential tenant consumption of electricity and gas. Therefore, can analyze the actual impact of its CSR objectives at building level. To also gain insight in the total consumption of its retail and office portfolios, focuses on the exchange of energy data with its commercial tenants. Reduce energy consumption and GHG emissions To minimize GHG emissions, is aiming to scale back its energy consumption, water consumption and waste production. For this reason, the company pays attention to the energyefficiency of its portfolios, renewable energy generation and carbon storage improvement. In addition, all Funds set a long term target for the reduction of energy consumption and GHG emissions. Spotlight: Laan van Puntenburg, Utrecht Ambitious sustainable refurbishment of NS head office ASR DMOF bought this office property subject to the obligation to fully renovate it. As a result, the tenant Nederlandse Spoorwegen (NS) signed a new long term lease. The renovation will improve the building s quality and sustainability level significantly. As sustainability is one of NS s key strategies, the renovation is a joint effort between the tenant and the Fund, with the tenant also willing to invest in additional sustainability measures. This property, which has a leasable floor area of approx. 28,000 sq.m., was built for NS as their head office in After the renovation, NS will rent the vast majority of the building. The remaining space may be let to other tenants. The office building will be made suitable for multi-tenancy, ensuring additional flexibility and value after expiry of the lease. The new façade will give the building a new look and feel and is necessary to obtain the BREEAM Excellent certificate. NS and the Fund will both contribute to the costs of the adjustments. The Fund and tenant s joint ambition over the longer term is to make the building as carbon neutral as possible. ustainability measures include LED lights, high-efficiency boilers, HR++ glass, climate ceilings and air heaters with heat recovery. Laan van Puntenburg, Utrecht (new façade) The redevelopment of the NS head office will create a more sustainable and user-friendly office property. By constructing a new façade, a giant step is taken from energy label D to A. The building is aiming for a BREEAM Excellent certificate.

24 24 The table below shows the 2020 strategic objectives for the pillar Planet per fund or business line. Planet DCRF Residential DPRF Retail DMOF Offices Property Fund Rural real estate Retail Offices Optimal monitoring environmental performance Reduce energy consumption and green-housegases with 10% compared to 2015 Investing in neighbourhoods Contributing to the opportunities for and development of pupils and students Optimal monitoring environmental performance Reduce energy consumption and GHG emissions with 10% compared to 2014 Encouraging activities in inner cities and retail areas Contributing to opportunities for and development of pupils and students Optimal monitoring of environmental performance Reduce energy consumption and GHG emissions > 10% compared to 2016 Invest in mobility hubs and encourage use of public transport Contribute to opportunities for anddevelopment of pupils and students Explore renewable energy uses Optimal monitoring environmental performance Reduce energy consumption and GHG emissions with 10% compared to 2014 Encouraging activities in inner cities and retail areas Invest in mobility hubs and encourageuse of public transport Contribute to opportunities for anddevelopment of pupils and students Study carbon storage Enable renewable energy Vitalize rural estates to strengthen the link between citizens and nature Participation in social initiatives and organizations

25 25 People Strategic objectives Personal development of employees Informed and involved employees Employee satisfaction rating > 80% Increase in awareness and knowledge of CSR The pillar People is about the employability, development opportunities, rights and physical and mental health of s employees. aims to maintain the employability and satisfaction of its employees and therefore continuously invests in human capital. Another important aspect is raising awareness among employees about sustainability. Personal development of employees The main focus of the human resources management policy of a.s.r. Nederland is the personal development of its employees in terms of professional expertise, competences and skills. Each employee is entitled to a training budget of 2% of his or her annual salary. In addition, certain employees are given the opportunity of taking additional courses at higher professional or university level in order to broaden their knowledge and remain employable on a sustainable basis. A dedicated HR team provides guidance to employees who wish to develop their talents and seize control of their own future, for instance by talent development, moving to another position (sustainable employability) or leaving a.s.r. Nederland altogether. Development Programme To remain successful as an organization, you need to select talented people at all levels, get their commitment, and know how to keep them inspired and challenged. In addition, a.s.r. Nederland wants its employees to keep developing and growing stronger. To facilitate this, a.s.r. has come up with three different Development Programmes that play into the different needs of the participant groups. Each programme is linked to a.s.r. Nederland s objectives with the goal of getting the most out of its employees and thus advancing the organization as a whole. Sustainable employability Sustainable employability of employees involves ensuring they can continue to participate as long and as fully as possible in the labour market while retaining their vitality. An important precondition is that they are highly motivated and have the right skills and training. a.s.r. Nederland contributes to this by offering them the opportunities to develop themselves and improve their labour market prospects both inside and outside a.s.r. Nederland. All employees are entitled to a special training budget for the purposes of sustainable employability and can choose from a wide range of courses.

26 26 HR cycle a.s.r. Nederland is committed to having in place a proper cycle of planning, progress and assessment. At the start of each year, employees and their team managers make agreements about the focus for the coming year. The development of the employee concerned and the progress of the agreed targets are among the matters they discuss. If necessary, they can make adjustments for the assessment round. Since 2016, every employee has at least had one personal CSR-related objective. Informed and involved employees wants to adequately inform its employees about CSR issues to maximize the incorporation of CSR in their daily operations. This has been achieved by, among others, appointing a sustainability manager and making CSR a standing item on the agenda of various department meetings. In addition, keeps everyone informed on the latest CSR initiatives and results through a monthly internal newsletter. Since 2016, CSR has also been included in the annual targets for all employees. Another important focus is the attendance of internal and external CSR-related masterclasses, seminars and/or congresses. Last April, organized its first Sustainability Day whereby climatologist Reinier van den Berg informed us about the effects of climate change in general and for real estate in particular. Finally, members of the CSR working group act as a contact for other employees, as well as being catalysts and inspirations for CSR-related matters. Trees planting event, De Utrecht

27 27 a.s.r. head office: energy efficient and healthy working conditions After the large-scale refurbishment of a.s.r. s head office, its energy label has improved from G to A++ and the property has obtained a BREEAM Excellent certificate. a.s.r. Nederland is concerned about nature and the environment and wants to do as little harm as possible through the efficient consumption of fuel, energy and water. a.s.r. Nederland applies the same attitude to waste disposal, mobility, energy reduction and carbon emissions, and has developed a special environment management system. A number of examples: 50% energy reduction: following completion of the refurbishment, energy consumption has been reduced by 50%; January 2017 to October 2017 saw another reduction of KwH. Recharging stations: in 2016, 12 new recharging stations for electric cars were added, making a total of 55 recharging stations. Solar panels: since 2016, 1,184 solar panels have been working at full strength. This means that all of a.s.r. s electric cars can be recharged using solar energy. Ecological Network: the office grounds are linked to the province of Utrecht s ecological network and offer sanctuary to a host of animal species such as bats, hedgehogs, salamanders, storks and grass snakes. 4% fossil fuel saving: at the end of 2016, a.s.r. Nederland started the Drivers Battle, a competition for lease car drivers to make them more aware of their driving behaviour. After 9 months, already 4% fossil fuel saving and 37% fewer damage claims were accomplished. 24% less paper and cardboard waste: due to an active policy to decrease the use of (print)paper, waste from paper and cardboard has dropped significantly since Improving the quality and sustainability of coffee and tea: from 2018 onwards, the quality and sustainability of the coffee and tea in a.s.r. s vending machines will be optimized. Partnership Treesforall: since 2016, the remaining CO2 emissions of a.s.r. Nederland s operations are compensated by the establishment of new forests in Bolivia. Healthy working conditions a.s.r. Nederland devotes much attention to the mental and physical health of its employees and offers them the option of flexible and remote working. This can help them strike a better work-life balance, and at the same time reduces their commuting mileage and the use of office space per FTE. Fresh fruit is also available on every floor of the building and employees can use a gym at an attractive price. In addition, the office have solar charged outdoor workplaces since With LEAF the Desk, a.s.r. Nederland s employees are able to enjoy the fresh outdoors while staying connected to the world wide web and powering up their gadgets via the solar panel roof. Studies show that being surrounded by nature helps to be more creative, as it can help to relax and thus provide space for imagination and creativity.

28 28 Employee satisfaction rating of > 80% Periodically, commissions what is known as the Great Place To Work survey. This global survey measures employee satisfaction on factors such as credibility, respect, honesty, pride and fellowship. The survey results are analyzed and then intensively discussed in the GPTW workforce and in all departments and business lines. Action is taken, where necessary, to improve a.s.r. real estate s standing as an excellent employer. In 2016, the goal was to achieve at least a 75% satisfaction rating. obtained a score of 80% that year and was therefore named as one of the best workplaces in the Netherlands by Great Place To Work. In 2017, exceeded the goal of an employee satisfaction rating of at least 80% by 1% and is now waiting to be named one of the best workplaces in the Netherlands again. From 2018 onwards, the goal is to maintain, at the very least, this satisfaction rating of 80%. Increasing awareness and organizational anchoring of CSR There is a formal CSR working group in place within, which consists of a representative cross-section of the departments and business lines. s management team acts as the formal client and is closely linked. A sustainability manager has been appointed to ensure that all actions and measures are carried out in line with the CSR policy. The sustainability manager is also a member of the CSR working groups of a.s.r. Nederland, DGBC, IVBN and NEPROM, to discuss and bring alignment into sustainability issues. The working group is responsible for the implementation of the annual CSR policy and for compiling progress reports for the management team and stakeholders such as investors, tenants and the supply chain. Each Fund produces its own CSR policy, quarterly and annual reports. The sustainability manager meets with the management team every quarter to give updates. To guarantee the correct implementation of its policy, focuses on optimizing the use of a sustainability assessment during internal decision-making processes. Since 2016, a sustainability assessment was included in all purchase and investment proposals and sustainability variables were included in the research department s analyses. Next to this, sustainability issues were added to the Programme of Requirements for acquisitions and renovations, portfolios were assessed in the light of sustainability opportunities and risks, and has worked consistently to optimize the administrative and ICT systems. The further organizational anchoring of CSR will continue to be an important focus of in The table below shows the 2020 strategic objectives for the pillar People per fund or business line. People DCRF Residential DPRF Retail DMOF Offices Property Fund Rural real estate Personal development of employees Informed and involved employees Employee satisfaction > 80% Optimal organizational embedding of CSR

29 29 Key Performance Indicators (KPI s) a.s.r. Nederland wants to have a leading role in the field of sustainable entrepreneurship within the financial sector. This fits in with its social role. For the sustainability policy, there are five appointed areas: insurance, human, investments, environment and society. All five areas have their own KPIs that are reviewed periodically and, where necessary, tightened to achieve the CSR goals. As part of a.s.r. Nederland, has defined 2 KPIs for the investment area. These KPIs are goals based on s CSR policy. 1. Rural portfolio asbestos safe in 2020 (Property & Planet) believes that it has a responsibility to help reduce the asbestos presence in its Dutch real estate portfolio. For the retail, office and residential portfolio, all high-risk and potentially highrisk asbestos applications have been removed in recent years. As a result, this part of the portfolio is completely asbestos safe. In the rural portfolio s buildings, there may still be some asbestos present. Currently, is remediate asbestos in all agricultural buildings. Farmers are informed about the possible presence of asbestos and involved in the clean-up, so that unsafe situations are avoided. At the end of 2017, 38% of the portfolio is declared asbestos safe. The goal is that the rural portfolio is completely asbestos safe in Tenant satisfaction of at least 7.0 (Partners) carries out periodic satisfaction surveys among their tenants and leaseholders to find out how they rate the services, properties and their living and working environments. The findings are processed by asset management and, where applicable, discussed with the internal or external property managers. Both parties then formulate follow-up measures. aims to achieve an average tenant satisfaction rating of at least 7 (out of 10). Daalsesingel, Utrecht