SUSTAINABLE DEVELOPMENT 4Strategy and organization Update of the materiality matrix This process was, for the first time, done collaboratively through The Group’s broader goal to maximize its value creation requires it to a panel of internal and external stakeholders, which put together be as targeted as possible with its actions. This ambition to achieve the materiality matrix presented below. The 20-member panel value motivates Klépierre to identify all environmental, societal was comprised of representatives of Klépierre’s main stakeholders: and social issues and to focus on the most important ones; it also retailers, investors, human resources or CSR experts, scientists, NGOs, enables it to bring its actions in line with the recommendations of local public authorities, etc. It also included Group representatives: the French Grenelle 2 environmental law, the G4 guidelines of the members of the Executive Board, the Chief Operating Officer, two Global Reporting Initiative (GRI), and the sustainability best practices operational staff, and the team in charge of CSR. recommendations by the European Public Real Estate Association Methodology (EPRA). In 2013, Klépierre had undertaken an initial “materiality analysis” – a The internal and external stakeholders in the panel were given commonly used tool to identify and rank non-financial issues within a questionnaire covering 38 pre-identified issues to assess the an organization – which had brought to light the 20 environmental, materiality of these issues. The methodology used comprises two societal and social issues that have a material impact on the Group’s components: the importance of the issue and its classification as performance. a risk or an opportunity for the Company; these two components are combined to produce the final rating for each issue. To this Four years on, evolving issues, the speed of societal change but also end, participants rated the importance of the issues as follows: the Group’s growing ambition, led Klépierre to repeat the exercise. “very important,» «important,» «moderately important,» or «not very Thus, in 2017, the Group worked on updating its materiality analysis. important» (this accounted for 75% of the rating), and they ranked the top ten issues in terms of risks or opportunities for Klépierre (this represented 25% of the rating). The main risks and opportunities are represented in the materiality matrix below. This allows Klépierre to rank its issues and to think in terms of priorities: 1 Tenant relationships Partnerships with retailers Stakeholder dialogue Employees' health and safety Customer Health and safety Outsourcing and responsible Development and purchasing Local economic career path development Waste reduction and management Circular economy Customer Relationships Protection of personal data Quality of life at work Business ethics Sustainable mobility Governance Open Design & Innovation Accessibility of shopping centres Sustainable Territories Certification and labelling Client health and wellness Responsible Energy efficiency and External importance consumption models GHG emissions for a 2 degree Water consumption Responsible design Local quality of life Renewable energy Organisation & management practices Resilience to Transparent Compensation climate change and fair taxation and benefits Biodiversity Respect for human rights Volunteering Responsible products Diversity Financial accessibility and services of products Landscape Integration 0 0 Internal importance 1 166 KLÉPIERRE 2017 REGISTRATION DOCUMENT