Materiality matrix and material themes

Materiality analysis

The ARC Fund attaches great value to corporate social responsibility and sustainable entrepreneurship. The Fund Manager believes that this can be achieved by permanently adhering to the wishes and expectations

of the stakeholders and society. In order to assess the interests of the tenants, investors, developers, maintenance companies, real estate managers and employees of the Fund Manager, a materiality analysis has been conducted. An extensive survey (based on the GRI Standards, GRESB, the INREV guidelines and a peer analysis) was sent to the stakeholders of the ARC Fund questioning the materiality of a wide range of themes and the performance of the Fund on these themes.

The materiality survey was broadly composed, covered ESG factors and consisted of six sections:

The output of the survey is reflected in a materiality matrix that shows which themes are material according to the external stakeholders

and the employees of the Fund Manager. This matrix is drawn up in accordance with the guidelines of the Global Reporting Initiative (GRI), an independent international organisation that set (inter alia) the Sustainability Reporting Standards (SRS). The GRI SRS are considered to be the worldwide standard in the field of sustainability reporting. In order to be able to report on sustainability, ESG factors should be fully embedded in the Fund’s strategy.

In the materiality matrix, which is represented in graph 21, all themes are plotted on two axes:

on the vertical axis, the importance of the theme to the stakeholders (0-10);

on the horizontal axis, the importance of the theme to the employees of the Fund Manager (0-10).

ESG measures

From the extensive list of material themes, twelve themes were selected as most material for the Fund in the coming years (items in the green shaded area of graph 20). These most material themes were selected in the following manner:

• themes which scored 8.0/10 or higher by both the stakeholders of the ARC Fund and the employees of the Fund Manager;

• themes which scored 8.5/10 or higher by the stakeholders or the employees of the Fund Manager;

• themes which are closely related to other selected themes (M4 and M5, see graph 20 and table 21).

Figure 27: Materiality matrix ARC Fund

Figure 28: Material themes for the ARC Fund