Simon Property Group

Simon Property aims to reduce absolute scope 1 and 2 emissions by 68% by 2035 compared to 2019. The target is validated by the Science-Based Targets Initiative (SBTi) as aligned with the group’s 1.5°C pathway. Simon Property also set a target to reduce its absolute scope 3 downstream leased assets emissions by 21% by 2035 compared to 2018. Ambitious emissions reduction targets reflect the willingness of the management to develop sustainable building practices. The group can improve by setting intermediate targets at gaps of no more than five years to incentivise short-term actions and by extending its commitments up to net-zero.

Although Simon Property has implemented board-level oversight of climate change, there is no evidence that its board has adequate climate expertise. The incentive program of the group’s executives is linked to climate change. Simon Property can improve by developing a comprehensive low-carbon transition plan informed by the results of the climate change scenario analysis conducted by the group. The plan should consider a carbon price and include financial considerations and commitments.

Simon Property developed a supplier code of conduct in 2021 that includes environmental criteria and applies to all suppliers, including subcontractors, agents and their employees. Suppliers must demonstrate compliance with these requirements upon request. However, the group has not integrated emissions reduction into this engagement. Suppliers are not required to publicly report their GHG emissions or other low-carbon requirements. The code of conduct and the group’s strategy do not include considerations of emissions reduction in the selection or renewal of supplier contracts.

Simon Property developed a Green Retailer Collaboration Strategic Framework as part of their scope 3 emissions reduction commitment. The framework includes several action levers such as education, information sharing, and collaboration to implement best practices. In 2021, the group started engaging with the corporate sustainability teams of over 30 tenants, representing over 20% of the portfolio, and began to identify opportunities to reduce environmental impact. The group also launched an engagement campaign to educate customers about the climate change impacts of products, goods and services, targeted at nearly 70% of customers. The group can improve by evaluating the impact of these actions.

Simon Property commits to reducing absolute scope 1 and 2 emissions by 68% by 2035 compared to 2019. It has also set a target to reduce its absolute scope 3 downstream leased assets emissions by 21% by 2035 compared to 2018. The targets have been validated by SBTi.

Simon Property is finalising the initial phase of its low-carbon transition plan. The group plans to substantially increase the share of renewable energy in its global energy mix and double its global rate of improvement in energy efficiency by 2030. Simon plans to involve tenants and partners to achieve its goals.

In 2021, Simon Property approved over USD 12.3m in sustainability projects across the group’s portfolio. Simon Property invested in several projects, including HVAC replacements, updated chillers and LED retrofits. It also invested in automation platforms, renewable energy production and other innovative solutions.

The group is consistent in its efforts and has reduced its in-use emissions intensity by about 20% since 2019. Simon has ten properties that produce on-site renewable energy through photovoltaic panels and began procuring renewable energy in 2021. It has electric vehicle charging stations at 62% of its properties.

Although Simon Properties is performing well against its current targets, the group does not have any short-term emissions reduction targets or targets beyond 2035. The group has not made a commitment to net-zero. A detailed transition plan is yet to be published.

No evidence was found that Simon Property commits to social dialogue or engages with the categories of stakeholders on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found that the company undertakes low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by Simon Property was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found that the company actions promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No public commitment by Simon Property was found stating its intention to re- and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if Simon Property identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

While Simon Property has a grievance mechanism available to workers, no evidence was found that the mechanism is available to external stakeholders. Moreover, no policies or commitments are available to display if the company relates to respecting other human rights found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

While Simon Property expects its business relationships to commit to respecting the health and safety of workers, no evidence was found that the company commits to respecting the health and safety of its workers. Moreover, no evidence was found of a time-bound target for paying all workers a living wage. While the company discloses that there are no collective bargaining agreements in place, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including the age, gender, and race and ethnicity of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. There was also no evidence to indicate that the company commits to gender equality and women’s empowerment.

While Simon Property expects its business relationships to commit to respecting the health and safety of workers, no evidence was found that the company commits to respecting the health and safety of its workers. Moreover, no evidence was found of a time-bound target for paying all workers a living wage. While the company discloses that there are no collective bargaining agreements in place, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including the age, gender, and race and ethnicity of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. There was also no evidence to indicate that the company commits to gender equality and women’s empowerment.