Crombie Real Estate Investment Trust : ESG Report 2023

2023 Environmental, Social & Governance Report

CROMBIE 2023 Environmental, Social, & Governance Report	About Crombie

Our Approach

Environmental

Social

Governance

Appendix

2

About this Report

Our 2023 Environmental, Social & Governance (ESG) Report highlights our ESG priorities, initiatives, and accomplishments.

Crombie's ESG Report is guided by our 2021 Materiality Assessment. For relevant financial statements and governance-related disclosures, please refer to Crombie's website and Management Information Circular. The content of this report was reviewed by Crombie's ESG Steering Committee, Disclosure Committee, and our Board of Trustees. All financial figures are reported in Canadian dollars.

Table of Contents

3 Message from the CEO

5 2023 Highlights

1. Our Approach
2. Environmental

13 Social

19 Governance

22 Appendix

CROMBIE 2023 Environmental, Social, & Governance Report	About Crombie

Our Approach

Environmental

Social

Governance

Appendix

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Message from the CEO

Taking a sustainable approach to our business is vital to the short-,medium-, and long-term health and success of Crombie. In 2023, we advanced and strengthened our ESG commitments, further embedding ESG priorities into our strategy and culture.

Focusing on Climate Action

I am proud of the work we completed in 2023 and our team's commitment to reducing our impact on the environment.

In 2023, we improved our GRESB scores, resulting in Green Star designations and improvements of 45% and 25% Standing Investments and Development Assessments, respectively. The dedication of our Operations team led to BOMA BEST Platinum and BOMA BEST Gold certifications for two of our largest properties. We also made significant progress tracking, measuring, and reducing our greenhouse gas emissions (GHG) through our Climate Action Plan (CAP). In 2023, our CAP was validated and approved by the Science Based Targets initiative (SBTi), and we are committed to achieving net zero by 2050 for scopes 1, 2, and 3. To date,

we have had a 32% reduction in our operational GHG emissions from our 2019 baseline. We will continue to evaluate recommendations of certifying organizations such as GRESB and BOMA to achieve our emissions reduction targets.

Enriching Communities and Culture

A winning culture that supports our commitment to fostering a diverse, equitable and inclusive environment for our team members, tenants, and communities has contributed to Crombie being selected in three categories of the 2023 Canada's Top Employers Awards: Canada's Top Small & Medium Employer, Atlantic Canada, and Nova Scotia. Our team volunteered thousands of hours to community organizations across Canada, and we have introduced a Community Impact Strategy to maximize our contributions to the communities we serve.

Enhancing Oversight and Mitigating Risks

Achieving Crombie's strategic objectives requires adherence to strong oversight, accountability, and risk mitigation. Throughout 2023, to mitigate external risks, attention to cybersecurity, systems recovery, and service partner responsibilities were top of mind. Internally, we created an Internal Governance Committee, which is focused on ensuring effective governance practices and reviewing evolving opportunities and best practices.

Crombie's Board of Trustees completed a robust succession planning process to identify new Board and Committee Chairs and refreshed tenure mandates to ensure ongoing succession. The Board of Trustees take seriously their commitment to good governance, with guiding policies and programs in-place, including comprehensive Board and committee mandates and independent voting rules.

The efforts of our team throughout 2023 demonstrate our commitment to the environment, our social responsibility, and corporate governance. I look forward to building and shaping stronger communities with our team members, partners, and Board of Trustees into the future.

Mark Holly

President & CEO

CROMBIE 2023 Environmental, Social, & Governance Report	About Crombie

Our Approach

Environmental

Social

Governance

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Who We Are

Crombie invests in real estate with a vision of enriching communities by building spaces and value today that leave a positive impact on tomorrow. As one of the country's leading owners, operators, and developers of quality assets, Crombie's portfolio primarily includes grocery-anchored retail, retail-related industrial, and mixed-use residential properties.

Our Focus

Creation	Own and Operate	Optimize	Partner
Value

Our Guiding Values

Care

Passionately

Deliver Excellence

Together

Embody

Integrity

Foundation
Solid	Financial Strength

Crombie at a Glance

$5.6b fair value

including properties held in joint ventures1

ESG	People and Culture

304 properties	19.2m sq. ft.
including properties under development	of GLA inclusive of joint ventures
and 4 properties owned in joint ventures

Empower

One Another

Outperform

Expectations

10.6m sq. ft.

of development GLA potential

1 Non-GAAP measure which includes fair value of properties held in joint ventures at Crombie's share; for additional information please reference Non-GAAP Financial Measures section in the MD&A.

CROMBIE 2023 Environmental, Social, & Governance Report	About Crombie

Our Approach

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Social

Governance

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2023 Highlights

Crombie is proud of our 2023 accomplishments across all areas of our ESG priorities.

Environmental

Social

Science Based Targets initiative Approval and Validation of Crombie's Climate Action Plan

32% reduction in operational GHG emissions1

Top Employer

Named one of Canada's Top Small and Medium Employers, Atlantic Canadian, and Nova Scotia Employers for over six years

Awarded		55% increase in
Green Lease		building certifications,
Leader Gold		and BOMA BEST Platinum
		certification for Scotia Square

91% employee	New Community
participation rate	Impact Strategy

in advanced Diversity, Equity, and Inclusion (DEI) data collection survey

Governance

Completed

ISSB Gap

Assessment

Introduced mandatory Trustee term limits

of 15 years

Service Partner Code of Conduct

implemented for all contractors, consultants, and external agencies

1 Crombie has restated its 2019 baseline total GHG emissions to 358,000 tonnes of CO2e, previously 335,000 tonnes of CO2e. The restatement reflects changes to Crombie's portfolio composition through acquisition and disposition activity, as well as greater data availability.

CROMBIE 2023 Environmental, Social, & Governance Report	About Crombie

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Our ESG Roadmap

2024

Renew Materiality Assessment to heighten ESG approach

Wellness Reimbursement program launched for employees

Ongoing enhancement of ESG-related disclosures to prepare for adoption of Canadian Sustainability Standards Board (CSSB)

2023

Received Climate Action Plan (CAP) and SBTi validation and approval Completed International Sustainability Standards Board (ISSB) gap assessment Renewed philanthropic strategy

2022

Embedded ESG in Board mandates

Adopted voluntary standards for psychological health and safety

Received GRESB Green Star designation in Performance and Development assessments

2019

Baseline year for utility and greenhouse gas (GHG) performance measurements

2020

First submission to GRESB

2021

Completed first materiality assessment to guide ESG focus Refreshed organization's guiding values

Set DEI targets for Board of Trustees and embedded ESG in management scorecards

CROMBIE 2023 Environmental, Social, & Governance Report

About Crombie

Our Approach

Environmental

Social

Governance

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Our Approach

Crombie's ESG strategy focuses on eight material topics, as outlined in this 2023 ESG Report. We have achieved significant progress on these objectives and, in 2024, are renewing our Materiality Assessment to ensure we continue to focus on Crombie's most material ESG topics.

Environmental

Social

Climate Action

Reducing the greenhouse gas (GHG) intensity of operations and supply chain to address the growing challenge of climate change.

Diversity, Equity & Inclusion

Fostering a diverse, equitable, and inclusive environment for employees, tenants, and contractors.

Leasing & Operations

Incorporating ESG considerations through efficiency and green lease programs in our existing portfolio and newly-acquired assets.

Building & Attracting Talent

Attracting, retaining, and developing top talent across the organization who are committed to advancing Crombie's purpose, values, and business strategy.

Design & Development

Incorporating ESG considerations into the design and development of new and existing assets, and pursuing building certifications, where appropriate.

Health, Safety & Well-being

Fostering a safety culture that protects the physical and psychological health of employees.

Governance

Board Composition & Governance

Ensuring strong governance and accountability through a diverse Board to advance the company and achieve its business strategy.

Risk Management

Evaluating and managing risks that could affect Crombie's operations or ability to achieve its business objectives.

CROMBIE 2023 Environmental, Social, & Governance Report

About Crombie

Our Approach

Environmental

Social

Governance

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Environmental

The Marlstone Rendering, Halifax, Nova Scotia

CROMBIE 2023 Environmental, Social, & Governance Report

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Governance

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Environmental Scorecard

Priority

Objective

Measure of Success

Status Progress

Achieved    On track

Climate Action	• Establish net zero framework	•	SBTi validation and approval of 1.5° Celsius net	• SBTi validation and approval achieved July 2023
		zero target
	• Near-term Scope 1 and 2 GHG emissions	•	50% reduction of Scope 1 and 2 GHG emissions	• Scope 1 and 2 emissions decreased 22% from 2019 to 20231
			by 2030 from 2019 base year

• Long-term Scope 1, 2, and 3 GHG emissions	• 90% reduction of Scope 1, 2, and 3 GHG
	emissions by 2050 from 2019 base year

• Scope 1, 2, and 3 operational emissions decreased 32% from 2019 to 20231

Leasing & Operations

• Reduce water consumption portfolio-wide	• 10% reduction by 2025	• Water consumption reduced by 9% on like-for-like data coverage
		of 43% in 2023
• Increase portfolio waste diversion	• 50% diversion by 2025	• 22% of total waste measured in 2023 was diverted from
		the landfill
• Increase building certifications and implement	• Certify 1M square feet per year and validate	• Certified 2.4M square feet in 2023
green lease	green lease precedent	• Awarded Green Lease Gold by Green Lease Leaders in
		April 2023

Design & Development

• On-site renewable and/or low-carbon	• Renewable and/or low-carbon technologies	• The Marlstone designed as operational net zero ready
energy systems in the design of new	included in the design of The Marlstone
major developments

• Certify all new major development projects through LEED, Zero Carbon, or other industry- recognized certification programs

• Certification of all new major developments from 2024 onward
• The Marlstone receives LEED Gold standard and Rick Hansen Foundation Accessibility Certification

• Crombie's Sustainable Development Policy requires all major developments to be certified
• The Marlstone is designed to meet LEED Gold standard and Rick Hansen Foundation Accessibility Certification

1 Crombie has restated its 2019 baseline total GHG emissions to 358,000 tonnes of CO2e, previously 335,000 tonnes of CO2e. The restatement reflects changes to Crombie's portfolio composition through acquisition and disposition activity, as well as greater data availability.

CROMBIE 2023 Environmental, Social, & Governance Report

About Crombie

Our Approach

Environmental

Social

Governance

Appendix

10

Climate Action

Crombie is committed to reducing the greenhouse gas (GHG) intensity of operations to meet our SBTi and CAP commitments.

2023 Accomplishments

32% reduction

in Scope 1, 2, and 3 operational GHG emissions from 2019 baseline1

Developed GHG reduction pathway and milestones

until 2025 including anticipated projects, required budgets, and estimated GHG reduction roadmap.

Net-zero transition framework

defined and implementation plan development underway.

Aberdeen Sobeys Modernization

The modernization of the Aberdeen Sobeys, in New Glasgow, Nova Scotia, partially funded by Crombie, highlights our commitment to our Climate Action Plan.

This modernization included industry-leadingenergy-efficient and carbon reduction features, showcasing the ways Crombie and Empire can work together to achieve each of our Climate Action Plan objectives, while also improving the quality of our portfolio and enhancing

our retail assets in the communities in which we operate.

1 Crombie has restated its 2019 baseline total GHG emissions to 358,000 tonnes of CO2e, previously 335,000 tonnes of CO2e. The restatement reflects changes to Crombie's portfolio composition through acquisition and disposition activity, as well as greater data availability.