GECINA - REFERENCE DOCUMENT 2017

RISKS Risks

The corresponding provision of €5 million has been written back in the accounts of SIF Espagne and a debt has been recognized to Bami Newco and Inmopark 92 Alicante, on the assets side of the balance sheet, immediately written down for impairment due to the financial position of these two companies and their ongoing bankruptcy proceedings. The ensuing statements of claims were confirmed in the bankruptcy proceedings of Bami Newco and Inmopark 92 Alicante. There are no other government, judicial or arbitration ■ proceedings pending, including any proceeding of which the company is aware, or with which it is threatened, which may or have had in the last twelve months material impacts on the financial position or profitability of the company and/or the Group. The specific risks related to climate change consist of the following: physical risks: the impact of rising average temperatures ■ and of the increased frequency of extreme weather events on Gecina buildings; transition risks: changes related to the development of a ■ low-carbon economy (changes in regulations and standards governing the carbon footprint and energy performance, changes in the expectations of stakeholders and, in particular, those of clients, evolving sector practices, etc.). Physical risks resulting from climate change are among the social pressures which Gecina is exposed to. The control process is based on the deployment of a strategy to adapt the property portfolio to climate change. The transition risks related to a low-carbon economy are a contributing factor of obsolescence. The associated control process consists in deploying a strategy to mitigate the impact of Gecina’s activities throughout its value chain with the aim of complete neutralization. risks related to climate change Since 2016, Gecina has used the services of Carbone 4, a third-party expert in climate strategy, to analyze and understand the physical risks associated with climate change impacting its property portfolio and, consequently, to define a adaptation strategy. Identification and control process for 6.1.6.1 MANAGEMENT OF SPECIFIC RISKS RELATED TO CLIMATE CHANGE 6.1.6

A first study focused on identifying the main climate risks which could impact the region in question (greater Paris area) by 2070. In a second step, Gecina determined the zones of vulnerability of the assets to these climatic hazards, by constituting seven families of buildings representative of its property assets. An analysis of the aggravating or mitigating factors related to the location of each building then revealed those with the greatest risk in terms of the portfolio. Finally, consideration of the adaptation solutions incorporated in these buildings helped identify nine priority assets on account their level of exposure to physical risks related to climate change. Gecina has also implemented action plans to mitigate the impact of its activities on climate change since 2008. In 2016, Gecina drew up a climate roadmap consisting of four main areas and created jointly by all of the company’s departments. The roadmap sets reduction objectives for the broader carbon footprint both in terms of the operation of assets and the development of real estate programs involving Gecina partners and clients. In 2017, the major objective of reducing the greenhouse gas emissions of commercial properties by 2030 was recognized by the Science Based Targets initiative as being compatible with the trajectory required to maintain the average rise in temperature at 2°C. The action plans are identified and included in multi-year project plans to ensure attainment of the target performances (details are available in chapter 7.5.1 “Carbon impact management” of this Reference Document). As part of the updating of its CSR roadmap, Gecina carried out an exhaustive analysis of Eurosic’s residential and commercial real estate portfolio to identify the actions and budgets required to extend the objective across its entire new scope. change risks The continuous progress made by Gecina with respect to its portfolio contributes to the appeal of its assets with tenants and investors while reducing operating costs. By creating a carbon budget, Gecina improved the resiliency of its economic model in the event that a global carbon tax comes into effect. The budget consists of annual contributions from the office real estate in operation and an internal carbon price set at €25 per ton. It is partially dedicated to the purchase of carbon credits to offset Gecina’s residual emissions. In addition, value of the property assets identified as priorities following analysis of the physical risks related to climate change, less the two assets that are the subject of a short-term restructuring project, represents €0.9 billion. Financial assessment of climate 6.1.6.2

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GECINA - REFERENCE DOCUMENT 2017