Social responsibility

In 2015, the Colonial Group publishes the first Corporate Social Responsibility Report in order to meet the expectations of all its stakeholders.The stakeholders of the Colonial Group are de ned as the set of individuals who have contributed to the progress of the company and are considered part of the organization, being in,turn responsible for the business development of the Group. These are represented by shareholders and investors, financial lenders, clients,employees, suppliers and society as a whole. Integrated Annual Report 2017 responds to the concerns and expectations of these stakeholders.

For more information, see Integrated Annual Report 2017.

Corporate Social Responsibility Policy

Integrated Management Policy

Sustainability Awards

2018

In September 2018, Colonial received the "EPRA Best Practices Gold Award - Financial Reporting".

FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Inmobiliaria Colonial S.A. has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.

http://www.ftse.com/products/indices/FTSE4Good

2017

In September 2017, Colonial received the "EPRA Best Practices Gold Award - Sustainability Reporting". Currently it is the only Spanish company EPRA index that has been recognized with this top rating.

2016

In September 2016, Colonial received the "EPRA Best Practices Gold Award - Sustainability Reporting" and the "Most Improved Annual Report - Award". Currently it is the only Spanish company EPRA index that has been recognized with this top rating.

The colonial Group’s sustainability Model

1. A clear strategy of generating cash flows through proactive real estate management.

2. Attractive low-risk returns.

3.Premium portfolio of top-quality energy-efficient buildings.

4. Excellent service provision.

5. Transparent and immediate relationship with all stakeholders.

Supplier Relationship Management

The Group also promotes and offers partnerships with suppliers and contractors that approve social, environmental and ethical standards in keeping with its own. In 2016, Colonial worked with a total of 954 suppliers and SFL with a total of 336, of which 93.7% and 99.7% respectively, are local suppliers. All of the Group’s business suppliers (defined as providers of services to its buildings) are subject to approval, and also undergo an assessment, in order to ensure both legal compliance and fulfillment with the Code of Ethics of the Company.

Professional team

The purpose of HR management is to foster the professional and human potential by developing the employees of the organization. The Group seeks to offer a estable beneficial employment to achieve the targets of the Group’s strategic plan and guarantee the satisfaction of its employees. The action taken to date by Human Resources reflects the Group’s commitment to a customer-orientated growth strategy which has the full support of its employees.

At the end of 2016 the Group had 150 employees, 51% of which worked at SFL and the other 49% at Colonial, with a gender diversity of 87 female and 63 male.

Eco-efficiency

The Colonial Group has a commitment to be as environmentally friendly as possible in the course of its business, and to minimise environmentally adverse impacts that might be caused by Group companies. It seeks to establish best practices, involving clients, employees and suppliers to obtain maximum efficiency in the buildings and reduce their impact on the environment. The objective is to produce a portfolio of high- efficiency buildings that consume fewer resources, reducing emissions of CO2, as well as bringing down consumption of materials, the amount of waste produced and the quantity of water used.

Management approved a general policy which would contribute the resources required to achieve those objectives and goals. Moreover, energy audits were used as the basis of the initial energy review (under the terms of ISO 50001), establishing areas where there is significant energy use and identifying opportunities to improve energy efficiency.

Certification

The Colonial Group is working to increase energy efficiency by obtaining energy certification and, subsequently, implement schemes for continual improvement in its buildings. The portfolio has buildings which have obtained certification from five different organisations: ISO 50001, ISO 14001, BREEAM, LEED and HqE. Moreover, the company also provides specific energy efficiency certifications that are mandatory in Spain.

Currently, 90% of surface area of the Colonial Group's portfolio has some type of certification.