Our homes, our responsibility: TAG Immobilien AG publishes Sustainability Report 2021

- TAG to be largely CO₂-neutral by 2045 as active contribution to limiting global warming to 1.5 degrees Celsius

- Decarbonisation strategy adopted for German portfolio; specific planned package of measures includes investments of approx. EUR 690 million by 2045

- Employees design internal reorganization with the aim of increasing benefit for tenants and efficiency of management

- Portfolio expansion in Poland progresses, with focus on customer orientation

- TAG in top 3% of all real estate companies worldwide in 2021 based on latest Sustainalytics ESG rating

Hamburg, 21 April 2022

TAG Immobilien AG (TAG) today published its tenth sustainability report. This report supplements and complements the financial reporting in the Annual Report published on 15 March 2022 with all material non-financial aspects of the 2021 financial year.

Claudia Hoyer, COO of TAG, "We can only shape a sustainable future together with all stakeholders and in constant interaction with the latest requirements. Which is why our sustainability programme is not set in stone, but a living document that we once again adapted in 2021. As we gradually implement measures to our increase energy efficiency and conserve resources, we always bear in mind that climate-friendly housing must go hand in hand with affordability for our tenants."

Developing our portfolio responsibly - Our decarbonisation strategy

As early as 2020, TAG began working with external experts on the development of a stand-alone decarbonisation strategy for the German real estate portfolio. At the end of 2021, this strategy was finalised and approved by the Management Board and Supervisory Board. The goal is to become as carbon-neutral as possible by 2045. In the future, we will harmonise the objectives and activities for our portfolio in Poland, which is still being developed, across the Group.

Already, TAG manages a property portfolio in Germany that, at 31.5 kg/sqm, has lower CO₂ emissions than most of its competitors in the year under review 2020. By 2045, this value is to be reduced to below 7 kg/sqm. To achieve this, a comprehensive package of measures is planned, including the use of alternative energies, the modernisation of technical building equipment and the installation of smart building technology. This package of measures has a planned volume of approximately EUR 690 million.

TAG's CFO Martin Thiel says: "Our core business is the provision of affordable housing, so we want to minimise the additional costs resulting from CO₂ charges, for our tenants and ourselves. We will gradually reduce our CO₂ emissions and increase our energy efficiency, thereby sparing resources and the environment. By adopting a targeted investment strategy, we are contributing to climate protection and securing our competitiveness long-term. "

Our employees shape our future - Further development of the organisational structure

Because well-trained and committed employees are the basis for a company's success, TAG supports its employees and encourages them to play an active role in shaping the company. As part of a project to reorganize property management, eight different sub-project groups worked to develop practical and customer-oriented solutions, redesigned workflows in the day-to-day business, and further developed IT-supported processes. Optimising these operational processes also increases the benefits for tenants and business partners - especially with regard to accessibility, processing speed, and transparency.

Responsibility to society - Market specific portfolio development for broad sections of the population

TAG strives to offer its tenants a secure home and good service, long-term. In difficult situations such as those caused by the Covid-19 pandemic, special closeness to our customers and a sense of proportion are required in pursuing our business strategy. We have implemented rent increases very responsibly in the past and will continue to do so in the future, taking into account the individual income situation of the tenants at the location.

As part of TAG's business activities in Poland, the letting of newly-built residential space will become more of a focus in the future. Since 2020, a rental portfolio with attractive residential units in major Polish cities has been built up, which we intend to grow to at least 20,000 units in the next five to six years. Parallel to this, new teams have been formed that are responsible for tenant services and property management. This is to ensure fast processes, high quality, and the best possible service for our tenants in Poland.

The challenges arising from crisis-related refugee and migration flows from Ukraine will also play a role. "TAG's efforts in Germany and Poland include donations and logistical help 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 August 2021, TAG was ranked 27^th out of 1,000 real estate companies analysed worldwide, which corresponds to a ranking in the top 3% of the real-estate sector and the top 1% of all companies worldwide. The rating was in the best possible category ("negligible ESG risk"; TAG scored 9.9 after 12.6 in the previous year). TAG's rating with other leading agencies also further improved in 2021, e.g. its MSCI ESG Ratings rose from A to AA, the second-highest category.

Further details on TAG's sustainability activities and sustainability goals can be found in the Sustainability Report 2021 at https://www.tag-ag.com/en/sustainability/sustainability-reports.

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Dominique Mann
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