Green Bond report 2022

Flexible, attractive and environment-friendly office properties

Green Bond report

Entra has issued 13 Green Bonds, capitalizing on the environmental qualities in a selection of its portfolio, in accordance with Entra's Green Bond Framework. The Green Bond Framework can be downloaded on: https://entra.no/investor relations/article/reports-and-presentations/38

Entra has established a Green Bond Register for the purpose of monitoring Eligible Assets financed by the Green Bonds issued by Entra, as well as to provide an overview of the allocation of the net proceeds from the Green Bonds issued to the pool of Eligible Assets.

The total amount outstanding under the Green Bonds Framework is currently NOK 18 bn. In addition, Entra has established green banks loan through Nordic Investment Bank and SEB. As of 31.12.22 Entra's green financing portfolio consisted of the following loans:

GREEN BOND ASSET POOL UTILISATION (NOKM) AS OF 31.12.2022

Eligible projects/properties (market value 31.12.2022)	29 845
Outstanding green bonds
ENTRA12 G	684
ENTRA20 G	924
ENTRA43 G	579
ENTRA44 G	600
ENTRA52 G	594
ENTRA55 G	2 000
ENTRA60 G	1 500
ENTRA61 G	1 000
ENTRA62 G	1 000
ENTRA63 G	1 815
ENTRA64 G	2 300
ENTRA65 G	1 150
ENTRA66 G	1 400
Total outstanding green bonds	15 546
Green Loans in compliance with the eligible asset pool	2 500
Total green financing	18 046
Unutilised green bond potential	11 799
Green share of total debt as of 31.12.2022	44.2 %

External review

CICERO (Norway's foremost institute for interdisciplinary climate research) has issued a Second Opinion on Entra's Green Bond Framework.

Entra has appointed Deloitte as an external independent auditor to assure that the selection process for the financing of Eligible Assets and the allocation of the net proceeds of the Green Bonds are done in accordance with Entra's Green Finance Framework.

The Green Bond Framework, the Second Opinion issued by Cicero, and the Green Bond Report are available on Entra's website: https://entra.no/investor-relations/ article/reports-and-presentations/38

The Green Bond Asset Pool

The Green Bond Asset Pool contains the properties in the following table, and as further outlined below:

GREEN BOND ASSET POOL - OVERVIEW OF PROPERTIES ELIGIBLE FOR GREEN BOND FINANCING, AS OF 31.12.2022

Property	EPC	Breeam NOR	Breeam In-Use	Earmarked	Category as of 31.12.2022

Akersgaten 34/36, Oslo	A		BREEAM In-Use Excellent		Existing building, management portfolio
Brattørkaia 13 B, Trondheim	C 1		Breeam In-Use Excellent (in process)		Redevelopment project, project portfolio
Brattørkaia 15A og B, Trondheim	A		Breeam In-Use Excellent		Existing building, management portfolio
Brattørkaia 16, Trondheim	A	Breeam NOR Excellent			Existing building, management portfolio
Brattørkaia 17A, Trondheim	A	Breeam NOR Outstanding			Existing building, management portfolio
Brynsengfaret 4 og 6 AB+F, Oslo	C		Breeam In-Use Excellent		Existing building, management portfolio
Fredrik Selmers vei 4, Oslo	A		Breeam In-Use Excellent		Existing building, management portfolio
Fyrstikkalleen 1, Oslo	B		Breeam In-Use Excellent (in process)		Existing building, management portfolio
Grensesvingen 26, Oslo	B		Breeam In-Use Excellent		Existing building, management portfolio
Holtermanns veg 70, Trondheim	A		Breeam In-Use Excellent		Existing building, management portfolio
Holtermanssveg 1 (BT1), Trondheim	A	Breeam NOR Excellent		Nordic Investment Bank	Existing building, management portfolio
Holtermanssveg 1 (BT2), Trondheim	A 1	Breeam NOR Excellent			New build project, project portfolio
Kjørboveien 12-26, blokk 1-2, Sandvika	A	Breeam NOR Excellent			Existing building, management portfolio
Kjørboveien 12-26, blokk 3, Sandvika	A	Breeam NOR Excellent			Existing building, management portfolio
Kjørboveien 12-26, blokk 4-5, Sandvika	A	Breeam NOR Outstanding			Existing building, management portfolio
Kongens gate 87, Trondheim	B		Breeam In-Use Excellent (in process)		Redevelopment project, project portfolio
Kristian Augustgate 13, Oslo	C		Breeam In-Use Excellent (in process)		Existing building, management portfolio
Media City Bergen, Bergen	B		BREEAM In-Use Excellent		Existing building, management portfolio
Møllendalsveien 6-8, Bergen	B		Breeam In-Use Excellent (in process)		Existing building, management portfolio
Nygårdsgaten 91/93, Bergen	A	Breeam NOR Excellent			Existing building, management portfolio
Otto Sverdrups plass 4, Sandvika	A		Breeam In-Use Excellent		Existing building, management portfolio
Prof. Olav Hanssens vei 10, Stavanger	B		Breeam In-Use Excellent		Existing building, management portfolio
Schweigaardsgt 16, Oslo	B	Breeam NOR Excellent	Breeam In-Use Excellent		Existing building, management portfolio
St. Olavs plass 5, Oslo	B		Breeam In-Use Excellent (in process)	Nordic Investment Bank	Existing building, management portfolio
Sundtkvartalet, Lakkegata 55, Oslo	A	Breeam NOR Excellent			Existing building, management portfolio
Tullinkvartalet, Oslo	A	Breeam NOR Excellent		Nordic Investment Bank	Existing building, management portfolio
Universitetsgate 7, Oslo	A	Breeam NOR Excellent		Nordic Investment Bank/SEB	Existing building, management portfolio
Vahls gate 1-3, Oslo	C 1		Breeam In-Use Excellent (in process)		Redevelopment project, project portfolio
Verkstedveien 1, Skøyen	A		Breeam In-Use Excellent		Existing building, management portfolio

¹ EPC in process, planned for and expected EPC category.

Akersgaten 34/36, Oslo

Akersgata 34-36 is an office building which was partly redeveloped and partly new-built by Entra and finalised in 2015. It is located in central Oslo.

Size: 6,100 sqm Finalised 2015 Certified: Breeam In-Use Excellent Energy class: A/B Energy usage: 102 kwh per sqm Water usage: 1.129 m3 Carbon emission: 40.5 tonnes

Brattørkaia 13B, Trondheim

Brattørkaia 13 B is an office property, redeveloped by Entra and finalised in 2023. It is located at Brattørkaia in Trondheim.

Size: 6,300sqm Finalised 2023 Certified: Breeam In-Use Excellent Energy class: C Energy usage: NA Water usage: NA Carbon emission: NA

Brattørkaia 15A and B, Trondheim

Brattørkaia 15 A and B is a new-built office property, developed by Entra and finalised in 2013. It is located at Brattørkaia in Trondheim

Size: 16,900 sqm Finalised: 2013 Certified: Breeam In-Use Excellent Energy class: A Energy usage: 71 kWh per sqm Water usage: 3.017 m3 Carbon emission: 72,4 tonnes

Brattørkaia 16, Trondheim

Brattørkaia 16 is a new-built office property, developed by Entra and finalised in 2018. It is located at Brattørkaia in Trondheim

Size: 11,200 sqm Finalised: 2018 Certified: Breeam NOR Excellent Energy class: A Energy usage: 32 kwh per sqm Water usage: 1.668 m3 Carbon emission: 11.5 tonnes

Powerhouse Brattørkaia (Brattørkaia 17 A), Trondheim

Brattørkaia 17 A is a new-built, office property, developed by Entra and finalised in 2019. It is located at Brattørkaia in Trondheim. Powerhouse Brattørkaia utilise sun and sea water for heating and cooling. The building is covered by ~ 3,500 sqm of solar panels and produce around 500,000 kWh of renewable energy annually. It is located at Brattørkaia in Trondheim

Size: 18,000 sqm Finalised: 2019 Certified: Breeam NOR Outstanding Energy class: A Energy usage: 59 kwh per sqm Water usage: 1.729 m3 Carbon emission: 49.05 tonnes

Brynsengfaret 4 og 6 AB + F, Oslo

Brynsengfaret 4 og 6 AB + F is an office building re-developed by Entra, finalised in 2011. The property is located at Helsfyr in Oslo.

Size: 35,500 sqm Finalised: 2011 Certified: Breeam In-use Excellent Energy class: C Energy usage: 174 kwh per sqm 1 Water usage: 5.323 m3 Carbon emission: 176 tonnes

Fredrik Selmers vei 4, Oslo

Fredrik Selmers vei 4 is an office building re-developed by Entra in 2013 (phase 1) and 2016 (phase 2). It is located at Helsfyr in Oslo.

Size: 38,000 sqm Finalised: 2016 Certified: Breeam In-Use Excellent Energy class: A Energy usage: 154 kwh per sqm 1 Water usage: 2.336 m3 Carbon emission: 219 tonnes

Fyrstikkalleen 1, Oslo

Fyrstikkalleen 1 is a new-built office property finalised in 2020 and acquired by Entra in 2021. The property is located at Helsfyr in Oslo.

Size: 39,600 sqm Finalised: 2020 Certified: Breeam In-Use Excellent Energy class: B Energy usage: 72 kwh per sqm Water usage: 8.254 m3 Carbon emission: 101.18 tonnes

Grensesvingen 26, Oslo

Grensesvingen 26 is an office building re-developed by Entra and finalised in 2018. The property is located at Helsfyr in Oslo.

Size: 18,200 sqm Finalised: 2018 Certified: Breeam In-Use Excellent Energy class: B Energy usage: 89 kwh per sqm Water usage: 2.886 m3 Carbon emission: 66.6 tonnes

Holtermannsveg 70 (Trondheimsporten), Trondheim

Trondheimsporten is a new-built office property, developed by Entra and finalised in 2017. The property is located in Trondheim.

Size: 29,000 Finalised: 2017 Certified: Breeam In-Use Excellent Energy class: A Energy usage: 73 kwh per sqm Water usage: 4.346 m3 Carbon emission: 117.4 tonnes

Holtermannsveg 1-13, Trondheim, Phase I

Holtermannsveg 1-13 is is a new-built university/office property, developed by Entra and finalised in 2020. The property is located in Trondhiem.

Size: 11,400 sqm Finalised: 2020 Certified: Breeam NOR Excellent Energy class: A Energy usage: 75 kwh per sqm Water usage: 2.243 m3 Carbon emission: 54.3 tonnes

Holtermannsveg 1-13, Trondheim, Phase II

Holtermannsveg 1-13 phase II is a new-built office property, developed by Entra and finalised in second quarter 2023. The property is located in Trondhiem.

Size: 20,900 sqm Finalised: 2023 Certified: Breeam NOR Excellent Energy usage: NA Energy class: A Water usage: NA Carbon emission: NA

Kjørbo office park, Block 1-5, Sandvika

The Kjørbo Powerhouse office park consist of five re-developed office properties finalised in the period from 2014-2019. The office cluster is located in Sandvika outside Oslo

Size: 25,600 sqm Finalised: 2014-2019 Certified: Breeam NOR Excellent Block 1-3, Breeam NOR Outstanding Block 4-5 Energy class: A Energy usage: 58 kwh per sqm Water usage: 4.011 m3 Carbon emission: 101,5 tonnes

Kongens gate 87, Trondheim

Kongens gate 87 is an office property, redeveloped by Entra and finalised in 2023. It is located in central Trondheim. Size: 7,100 sqm Finalised 2023 Certified: Breeam In-Use Excellent Energy class: B Energy usage: NA Water usage: NA Carbon emission: NA

Kristian August gate 13, Oslo

Entra finalised the redevelopment and expansion project involving 4,300 sqm office space in Kristian Augusts gate 13 in 2020. This involved a pioneer project within circular economy and more than 80 per cent of the input factors in the project came from re-used materials.

Size: 4,100 sqm Finalised 2020 Certified: Breeam In-Use Excellent Energy class: C/B Energy usage: 194 kwh per sqm Water usage: 1.175 m3 Carbon emission: 9,88 tonnes

Media City Bergen, Bergen

Media City Bergen is a large office property/media hub located in central Bergen. The property was redeveloped and extended by Entrqa and was finalised in 2017.

The property is 50 per cent owned by Entra through Entra OPF.

Size: 45,700 sqm Finalised 2017 Certified: Breeam In-Use Excellent Energy class: B Energy usage: 349 kwh per sqm 1 Water usage: 8.545 m3 Carbon emission: 442.8 tonnes

Møllendalsveien 6-8, Bergen

Møllendalsveien 6-8 is an office property, redeveloped by Entra and finalised in 2022. It is located in central Bergen.

Size: 14,200 sqm Finalised 2022 Certified: Breeam In-Use Excellent Energy class: B Energy usage: NA Water usage: NA Carbon emission: NA

Nygårdsgaten 91-93, Bergen

Nygårdsgaten 91-93 is a new-built office building finalised in 2022. It is located in central Bergen.

Size: 11,900 sqm Finalised: 2022 Certified: Breeam-NOR Excellent Energy class: A Energy usage: NA Water usage: NA Carbon emission: NA

Otto Sverdrups plass 4, Oslo

Otto Sverdrupsplass 4 is a new-built office property, developed by Entra and finalised in 2014. The property is located in Sandvika outside Oslo.

Size: 16,000 sqm Finalised: 2014 Certified: Breeam In-Use Excellent Energy class: A Energy usage: 96 kwh per sqm Water usage: 3.148 m3 Carbon emission: 86.2 tonnes

Proffessor Olav Hanssens vei 10, Stavanger

Professor Olav Hanssens vei 10 is a large office property re-developed by Entra and finalised in 2013. The property is located at Ullandhaug in Stavanger.

Size: 37,200 sqm Finalised: 2013 Certified: Breeam In-Use Excellent Energy class: B Energy usage: 112 kwh per sqm Water usage: 6.180 m3 Carbon emission: 182.1 tonnes

Schweigaardsgate 16, Oslo

Schweigaardsgate 16 is a new-built office property, developed by Entra and finalised in 2015. The property is located in central Oslo.

Size: 15,500 sqm Finalised: 2015 Certified: Breeam-NOR Excellent, Breeam In-Use Outstanding Energy usage: 91 kwh per sqm Water usage: 3.346 m3 Carbon emission: 70.01 tonnes

St. Olavsplass 5 , Oslo

St. Olavs plass 5 a large office property, redeveloped by Entra and finalised in 2022. It is located near Tullinkvartalet in Oslo.

Size: 16,500 sqm Finalised: 2022 Certified: Breeam NOR Very Good, Breeam In-Use Excellent Energy class: B Energy usage: NA Water usage: NA Carbon emission: NA

Sundtkvartalet (Lakkegata 55), Oslo

Sundtvkvartalet is a new-built office property, developed by Entra and finalised in 2018. The property is located in central Oslo.

Size: 31,600 sqm Finalised: 2018 Certified: Breeam-NOR Excellent, Breeam In-Use Excellent Energy class: A Energy usage: 80 kwh per sqm Water usage: 11.200 m3 Carbon emission: 122.4 tonnes

Tullinkvartalet UiO, Oslo

Tullinkvartalets is a new-built university/ office property, developed by Entra and finalised in 2021. The property is located in central Oslo.

Size: 20,800 sqm Finalised 2020 Certified: Breeam NOR Excellent Energy Class: A Energy usage: 103 kwh per sqm Water usage: 11.285 m3 Carbon emission: 100,4 tonnes

Universitetsgata 7, Oslo

Universitetsgata 7-9 is a new-built office property developed by Entra and finalised in 2021, It is located in Tullinkvartalet in central Oslo.

Size: 21,900 sqm Finalised 2021 Certified: Breeam NOR Excellent Energy class: A Energy usage: 116 kwh per sqm Water usage: 1.984 m3 Carbon emission: 59 tonnes

Vahls gate 1-3, Oslo

Vahls gate 1-3 is an office building refurbished by Entra and finalised in 2023. It is located in central Oslo.

Size: 14,900 sqm Finalised 2023 Certified: Breeam In-Use Excellent Energy class: C Energy usage: NA Water usage: NA Carbon emission: NA

Verkstedveien 1, Oslo

Verkstedveien 1 is a new-built office property, finalised in 2014 and acquired by Entra in 2016. The property is located at Skøyen in Oslo.

Size: 31,700 sqm Finalised 2014 Certified: Breeam In-Use Excellent Energy class: A Energy usage: 76 kwh per sqm Water usage: 4.933 m3 Carbon emission: 119.9 tonnes

¹ Includes tenants energi use from dataserver.

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Managements' responsibilities

The Management is responsible for:

ensuring that the Use of Proceeds follows the Entra Green Financing Framework
ensuring that the project evaluation and selection, management of proceeds and reporting described in the Entra Green Bond Report are in accordance with the purpose defined within the Entra Green Financing Framework.
Designing, implementing, and maintaining internal processes and controls over information relevant to the preparation of the Selected Information to ensure that they are free from material misstatement, including whether due to fraud or error.
Providing sufficient access and making available all necessary records, correspondence, information and explanations to allow the successful completion of the services.
Confirming to us through written representations that you have provided us with all information relevant to our services of which you are aware, and that the measurement or evaluation of the underlying subject matter against the Applicable Criteria, including that all relevant matters, are reflected in the Selected Information.

Our responsibilities

We are responsible for:

Planning and performing procedures to obtain sufficient appropriate evidence in order to express an independent limited assurance conclusion on the Selected Information.
Communicating matters that may be relevant to the Selected Information to the appropriate party including identified or suspected non-compliance with laws and regulations, fraud or suspected fraud, and bias in the preparation of the Selected Information.
Reporting our conclusion in the form of an independent limited Assurance Report to the management.

Our independence and quality management

We are independent of the company as required by laws and regulations and the International Ethics Standards Board for Accountants' Code of International Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We apply the International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, and accordingly, maintain a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Key procedures performed

We are required to plan and perform our work to address the areas where we have identified that a material misstatement of the description of activities undertaken in respect of the Selected Information is likely to arise. The procedures we performed were based on our professional judgment. In carrying out our limited assurance engagement on the description of activities undertaken in respect of the Selected Information, we performed the following procedures:

Obtained an understanding of Entra's systems and processes for the identification, processing and controls associated with the Selected Information.
Made inquiries with relevant personnel to obtain an understanding of the process for collecting and reporting the Selected Information and relevant internal controls; but did not evaluate the design of particular control activities, obtain evidence about their implementation or test their operating effectiveness.
Performed limited substantive testing on a selective basis of the Applicable Criteria to test whether data has been appropriately measured, recorded, collated and reported.

The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance

ESG

Sustainable strategy and business model

Sustainability is fundamental to Entra's strategy and has been so for more than 15 years. Entra's ESG strategy and work is built on the precautionary principle and is focused on areas where Entra can have the greatest impact.

Environmental leadership is one of Entra's three strategic pillars, and its Net Zero Carbon strategy is set to contribute to the world's carbon reduction targets whilst also focusing on the use of natural resources and circularity
To operate Entra's business and value chain in an ethical and sustainable manner is of key strategic importance and seen as a prerequisite for our license to operate.
Growing social value, health, safety and wellbeing in the company's properties, clusters and communities is important and sensible from both a social and financial perspective.
Through investing in its culture and people, Entra continues to improve its business and competitive edge, as well as being able to seize the opportunities emerging in its business environment.

Reporting standards and responses

To enable our stakeholders to compare and evaluate our reporting, we compile and align the ESG reporting for 2022 with three reporting frameworks: the European Public Real Estate Association Sustainability Best Practice Recommendations on Sustainability Reporting (EPRA sBPR), the Global Reporting Initiative Standards (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD). Entra also reports separately to the Global Real Estate Sustainability Benchmark (GRESB).

The EPRA sBPR Guidelines provide a consistent way of measuring sustainability performance for real estate companies

and cover environmental, social and corporate governance categories. The GRI Standards, applicable to all industries, include both relevant disclosures for a range of economic, environmental and social topics as well as reporting principles related to the reporting process. The TCFD framework provides for consistent climate-related financial risk disclosures. The EPRA, GRI and TCFD tables and references are included at the back of the annual report.

Entra achieved the EPRA Sustainability Gold Level also in 2022 and the Global Real Estate Sustainability Benchmark (GRESB) Green Star status with a total score of 90.

Third party verification

Entra has engaged Deloitte to conduct a review and provide a "limited level of assurance" on Entra's ESG reporting. The review is carried out in accordance with the assurance standard ISAE 3000 "Assurance Engagements other than Audits or Reviews of Historical Financial Information" established by the International Auditing and Assurance Standards Board. The auditor's conclusion and scope of work is presented in the Auditor's report, included on page 95-97.

Sustainability governance and organisation

The Board of Directors determines Entra's ESG strategy, priorities, targets and risk profile and reviews performance. Analysing materiality and stakeholder expectations is done annually and the materiality analysis and ESG topics and targets for the coming year are determined. The Board follows up each ESG

topic in individual in-depth business reviews with relevant business units at least once a year. These reviews also include ESG targets and KPIs which are then aggregated into company KPIs.

The CEO is responsible for implementing and following up the ESG strategy in Entra. Implementation is primarily handled in the individual business units and is reported to the CEO/ CFO through quarterly business reviews and in corporate management meetings. The CFO is responsible for the risk management framework, including climate related risks. Entra's risk management framework is structured to enable effective identification, evaluation and management of risk factors facing the company. Ownership and management of all key risks, including climate related risks, are assigned to members of the corporate management who are responsible for implementing key risk mitigation plans

Entra also has an ESG reporting unit with a separate responsibility to follow-up on ESG targets and actual performance. The figures are reported to corporate management and Board of Directors on a regular basis and externally through the quarterly and annual financial report.

Engaging with stakeholders

It is important for Entra to maintain an open and honest dialogue with its main stakeholders. Such dialogue builds trusting relationships, better business intelligence, and enables Entra to continue to improve, enhance its reputation, and spur ideas for future business development.

Entra has a structured approach towards understanding and managing the company's impact on the environment and society, as well as stakeholder requirements and expectations.

Entra's stakeholder management procedure is summed up in the illustration below and provides a systematic approach towards:

Understanding stakeholder requirements and expectations as well as specific opportunities and concerns about the business and its impact
Implementing important impact and expectations into our strategy and targets

Below is a summary of Entra's interaction with stakeholders in 2022, what the key topics have been as well as how the company responds to expectations and concerns

Stakeholders groups	Engagement	Key topics 2022	Response
Employees	• Manager - Employee dialogue • Top management communication and dialogue • Performance and goals with employee appraisals and feedback • Talent management and succession planning • Employee surveys • Knowledge sharing and teambuilding • Training and coaching • Employer branding • Sponsorships and social engagement • Engagement with trade unions and working environment committee • Cultural events for aligning strategy, professional development and social interaction • Outside work activities	• Occupational health and safety • Diversity, equality and inclusion • Workplace health and well-being • Development and career opportunities • Leadership development and training • ICT systems and tools • Employee satisfaction • Workplace strategies and guidelines	• Increased monitoring of employees' well-being through surveys • Continued to follow up and improve our health and safety performance • Updated workplace strategy and remodelling of office premises • Individual career planning and development plans • Focus on work-life balance and well being framework • Established a strategy and process for continuous development and reporting for diversity, equality and inclusion (DEI)
Suppliers	• Regular, direct dialogue • Integrity due diligence • Strategic collaboration and long-term relationships • Tenders and negotiations • Supplier audits • Supplier CSR survey	• Future business needs and deliveries • Responsible business conduct • Technology and environmental solutions • Energy efficiency and environmental building qualities • Accuracy and timely deliveries • Risk assessment • Cost savings	• Revised sustainable procurement terms & conditions • ESG due diligence of suppliers • Human rights policies and compliance with the Transparency Act • Workplace health and safety • Risk mitigation
Customers	• Regular, direct dialogue • Relationship management • Customer satisfaction surveys and feedback • Conferences and meetings with relevant office topics on the agenda • Advisory services within workplace strategies, energy and waste management • Customer service centre, with first and second-line support	• Workplace strategies and how to use the office to enhance employee engagement • Flexible work and impact on how the office is used • Workplace health and well-being • Introducing products and services to meet customer needs • Energy efficiency and environmental building qualities	• Established strategic customer advisory team for assisting with workplace strategies • Give customers insight about office trends and how to create offices for the future • Follow up customer satisfaction feedback and make sure that concrete action is being taken to respond to customer needs

Stakeholders groups	Engagement	Key topics 2022	Response
Investors and lenders	• Regular, direct dialogue • Quarterly and annual financial reporting and presentations • Stock exchange releases, press releases and presentations • Roadshows, conferences and meetings	• Strategy and priorities • Operational and financial performance • Shareholder return requirements • Balance sheet management, including asset disposals and dividends • Availability and price of funding • Asset valuations • Macro impact, particularly from rising inflation and interest rates • Office market dynamics • Construction cost and project profitability • ESG expectations and performance • Shareholders and governance • Risks and uncertainties • Post Covid-19 effect on office demand	• Communication on material strategic priorities • Communication on material events, e.g the 2022 acquisition of Oslo Areal • Open and transparent reporting on financial, governance and sustainability strategy and performance • Communication on effects of changing macro fundamentals and effects on property market, valuations and financial metrics • Communication on risks and opportunities • Continuously strengthening ESG reporting, introduction of quarterly ESG reporting, and focus this year on EU Taxonomy and preparations for CSRD/ESRS
Real Estate Industry	• Partnerships and joint ventures • Partnering in industry coalitions, visits, meetings and seminars	• Decarbonisation of the value chain • Green Building Council's Roadmap to 2050 • Market trends and outlook • Impact of new regulations, e.g., the EU Taxonomy	• Part of three JVs • Building partnerships with real estate companies to drive more sustainable solutions and investigate digitalisation initiatives • Active engagement in industry associations, such as Norwegian Green Building Council, Norsk Eiendom
Regulatory and policy makers	• Meetings with politicians and policymakers • Engagement in policy making processes • Engagement in industry associations • Arranging/participating in conferences • Participation in Oslo Municipality's "Business for climate"	• Real estate market and industry trends • Climate regulations and implications for Entra • Definition and adaptation of EU taxonomy criteria in Norwegian market	• Setting Net Zero Carbon by 2030 target • EU Taxonomy alignment and reporting • New energy standard scheme • City development, urban planning and architectural quality principles • Building relations and collaborating with municipalities for sustainable use of resources in zoning plans and planning processes.
Local communities	• Neighbourhood cooperation • Participation in planning processes • Direct dialogue with politicians, municipalities, and public agencies, both in general and on specific matters • Management and participation in various landowner collaborations in Oslo (Skøyen, Kvadraturen, Nedre Akerselva, Tullin and Bryn). Sandvika, Bergen and Trondheim. Several of these are organised in OMA (Oslo Metropolitan Area).	• Engaging in living and working conditions in the company's clusters and around its buildings • Working to create safer and better local environments and to contribute to increased employment of disadvantaged groups • Extended participation scheme related to the planning processes for Lilletorget and Bryn	• Sponsor of Church City Mission • Cooperation with social entrepreneurs such as Sisters in Business in certain buildings • Participation in Nedre Akerselva Neighbourhood cooperation, a co-operation between a group of landowners to activate outdoor space and bring more life to the streets • Preparation of knowledge-based targets and measures for social sustainability in the Lower Akerselva area

Materiality analysis forming the basis for priorities

In 2022, Entra revisited its materiality analysis and approach to materiality. This has involved widening the mapping of impacts on the environment and society and strengthened the link of the materiality assessment to our stakeholder dialogue, strategy and risk processes and performance management. The analysis is based, among other things, on the ten principles of the Global Compact and the UN's sustainability goals.

The 2022 materiality assessment was led by Entra's ESG function, concluded by senior management and approved by the Board. The material topics are areas where Entra and its stakeholders believe the company can make an important and sustainable impact. The topics are also believed to be important for future progress and long-term value creation. The outcome of the analysis and its main topics are illustrated below. The most important topics are summarised in the top right corner. These are areas of high importance for Entra, in terms of both their potential financial impact and as Entra's potential impact on people and environment. Other important topics are considered to be material to Entra either due to their potential financial impact or Entra's potential impact on people or environment.

Link to the

Material topics and how Entra understands them: Impacts, Risks and Opportunities

Entra closely measures and seeks to reduce its risks and negative impacts, whilst also focusing on the opportunities arising from e.g. the green shift and new technology. Below is a summary of the material topics and Entra's understanding of impacts, risks and opportunities.

	Impact	Risks	Opportunities	UN Sustainable Development Goals
Climate change 52-71	The real estate industry is referred to as the "40 per cent industry" as it globally accounts for 40 per cent of carbon dioxide emissions. Of these emissions 70 per cent are produced by building operations, while the remaining 30 per cent comes from construction.1	Climate change's physical and transition risks touch almost every aspect of a building's operations and value. Physical risks are hazards caused by a changing climate, including both acute events, such as floods, fires, extreme heat, and storms, and chronic conditions, such as rising sea levels and increased average temperatures. Transition risks include changes in the economy, regulation, consumer behaviour, technology, and other human responses to climate change.	Entra is deeply committed to contribute to the transition towards a low carbon society and the overarching target is to become a Net Zero Carbon company by 2030. Entra can use its locations, building qualities, connections to utility systems, local footprints, and climate intelligence to improve asset values and potentially create new revenue streams.	7 9 11 12 13
Energy use and green energy	Around 67 per cent of Entra's carbon emissions in Scope 1 and 2 stem from the use of energy. There are thus significant gains from working on improving energy performance, reducing energy consumption and from producing green energy in and around the company's buildings.	Production and use of energy is a significant contributor to global carbon emissions. The real estate sector stands for 40 per cent of European energy demand of which 80 per cent is derived from fossil fuels according to the UN 2. In 2022 the war in Ukraine has also shown the vulnerability of the international energy system. As a result, energy costs in 2022 reached levels not previously seen in Norway.	Improving building quality and reducing energy consumption has been an important part of Entra's environment strategy for more than 15 years and the average energy consumption per square metre has been reduced by 40 per cent over the last ten years. Entra furthermore has ambitious targets for energy use in its newbuild and redevelopment projects. Building green energy sources such as solar panels is part of Entra's strategy and will be further implemented in the coming years.	7 9 11 12 13
Resources and circular economy	New buildings are becoming increasingly more energy efficient, and material use is a large contributor to greenhouse gas emissions in a building's life cycle. Large amounts of waste are also generated in new-build and redevelopment projects as well as in tenant alterations and adaptations.	Most of the emissions come from concrete and steel in the buildings' foundations, and support systems. It is expected that the focus and regulatory framework connected to reuse rather than building or buying new will become significantly stricter.	Entra seeks to effectively reduce the use of resources and the carbon emissions associated with it. By 2030, the CO2 emissions from project development shall be reduced by 80 per cent from today's average levels. Entra seeks to use low emission materials and to considerably reduce waste. In redevelopment projects, focus is on reuse of inventory and materials. Entra strives to build with robust, reusable materials and installations. Ensuring that new materials are reusable is as important as reusing existing materials.	3 7 9 11 12 13

¹ 13 April 2022 | Climate Change, News, TCFD.

² UN: 2022 Global Status Report for Buildings and Construction.

	Impact	Risks	Opportunities	Link to the UN Sustainable Development Goals
Employees and working conditions	Entra aims to be the most attractive employer in the industry and have motivated and skilled employees with high job satisfaction and fulfilling personal development	There are work environment risks in all businesses. A bad working environment may lead to increased sick leave and lead to direct costs in the form of sick pay and indirect costs in the form of loss of productivity.	Entra puts significant efforts into creating a good and healthy working environment for its employees. The company's employees are its most important asset and a competent and motivated workforce is a significant competitive advantage.	3 8
Health and safety	It must be safe to work, visit and stay in and around Entra's properties and construction sites. For the company's own employees, it is also important to have a health-promoting workplace where no one will be injured or sick because of their work	Construction work imposes health and safety risks that must be handled with a precautionary principle. Entra works actively to increase awareness with regard to the registration of all types of incidents (including accidents and near misses). The reporting of incidents is important to prevent potential accidents and to increase awareness among Entra's employees, suppliers and customers.	Health and safety work is central to Entra in all parts of the value chain. It shall be safe to visit and work in Entra's properties and construction sites. Safety is well established as a natural part of day-to-day operations, including being part of the bonus scheme for all employees. It is a focus area at all levels of the organisation and thus recognised widely in the organisation as a personal responsibility of all employees.	3 12
Ethics, integrity and transparency	Entra's ethical guidelines are built on principles of equal opportunities for all, concern for the environment and a society view that emphasises ethics, transparency, honesty and sincerity	Entra operates its business in Norway where regulations are strict and ethical awareness and standards are generally high. However, the construction industry in which Entra operates to some extent faces challenges related to business crime and social dumping. Entra has established procedures to ensure that Entra only uses qualified suppliers and performs risk assessments for its entire value chain.	The long-term success of Entra is based on trust combined with compliance systems to ensure that integrity and ethical standards are followed. To maintain this trust, Entra ensures that its behaviour is consistent with its corporate values. The Group's ethical guidelines describe the way Entra is to treat its stakeholders and the behaviour which is expected of its employees. Entra has also set "Socially Responsible Purchasing Guidelines" that must be followed by suppliers and their sub-contractors in its supplier qualification requirements.	3 8 10 12
Local communities and urban development	For Entra, urban development includes creating a good atmosphere and secure surroundings in and around its buildings for the benefit of tenants, visitors and others who pass through the area	Poor surroundings or atmospheres may cause our properties to be more difficult to let or lead to reduced rent levels and/or may cause property values to decline.	Entra ensures that the space around its buildings and building sites is neat, clean, and attractive. Entra works to get a mix of activities on the ground floors within its property clusters to create life and variation among visitors and users of its buildings. Where applicable, Entra considers how to activate the ground floors of its buildings to contribute to city life at street level.	8 11

	Impact	Risks	Opportunities	Link to the UN Sustainable Development Goals
Standards and new legislation	There is a significant amount of new legislation and standards that Entra needs to align and comply with. The EU Taxonomy, the Corporate Sustainability Reporting Directive (CSRD), the new energy standard scheme that is under development and the Transparency Act have all been particularly high on the agenda in 2022 and will likely continue to be so in the years to come.	Non-compliance with these new standards and regulations impose business risks in terms of loss of attractivity and reputation, and the implications of e.g., the EU Taxonomy may have an impact on future property values	Entra works continuously to monitor and implement new standards and regulations. Entra has incorporated and is reporting on the Transparency Act in 2022. Entra is well on track towards reporting in accordance with the EU Taxonomy, and has work ongoing to adapt to the CSRD	6 8 10 13
Equality, diversity and inclusion	Equal opportunities and diversity are an integral part of Entra's standards. Entra believes in the benefits of diversity, and this goal is incorporated into Entra's recruitment and talent development procedures and is reflected in the composition of senior management	There is a growing view that a lack of diversity and inclusion in the workforce is a strategic business risk. Both in terms of limitation in the business innovation and understanding of markets and society, as well as from an employer brand perspective.	Different expertise and experience contribute positively to Entra's development and to a broader and better basis for decision-making. Entra believes that a business characterised by diversity is more innovative and copes better with challenges than overly homogenous businesses do. The company therefore has clear goals that its organisation should be characterised by diversity and be free from discrimination and harassment.	3 5 8 10
Human Rights	Entra is committed to develop an organisational culture which respects and supports internationally recognised human rights. Entra supports all internationally recognised human rights standards such as the United Nations Guiding Principles on Business and Human Rights, as well as relevant international conventions and standards such as those of the International Labour Organisation	Entra performs risk assessments for its entire value chain and facilitates action plans to reduce any identified risk. Entra has identified suppliers that perform work on Entra's construction sites and cleaning vendors as high-risk suppliers within social responsibility and follow-up this sector accordingly.	Entra does not accept discrimination or bullying in the company or in its value chain. Everyone is to be treated with respect, irrespective of gender, religion, age, ethnicity, nationality, any disability, or sexual orientation. Entra has a Human Rights policy, and human rights are included in guidelines and management tools, including those dealing with fundamental values, ethical guidelines and socially responsible procurement	3 5 8 10
Nature and eco systems	More than two thirds of the world's population is expected to be living in cities by 2050. The impact on nature and biodiversity must be included in the decision making processes whether in the design and construction of a building or the development of a district.	Biodiversity can often represent a challenge in real estate development and may impose significant cost for cities and real estate developers, particularly on green field developments	Biodiversity contributes to making cities more pleasant and desirable to live in. Improving quality of life, and well-being, reducing heat islands and retention of rainwater are examples of the positive effects on nature and biodiversity in a city. Avoidance of building materials that are threatened with extinction, such as tropical wood in materials and furniture is important on a global scale.	3 12 13 15

Strategy score card and key performance indicators

In addition to targets and KPIs set within different business units, Entra's Board sets overarching KPIs on an annual basis. The KPIs are based on Entra's three strategic pillars: profitable growth, high customer satisfaction and environmental leadership. The environmental leadership pillar is for the scorecard extended to reflect Entra's broad focus on sustainability. These KPIs seek to drive and measure the most important focus areas and form the basis for the annual bonus for all employees.

KPI	Target 2023	Target 2022	Result 2022

Profitable growth
Net operating income margin (incl. admin. cost) (%) 1	TBD	≥ 84.1%	85.0%
Return on equity (three-year rolling pre-tax) (%)	≥ 6.0	≥ 5.3	19.0
High customer satisfaction
Customer satisfaction score (area weighted)	≥ 84	≥ 84	84
Sustainability
Energy consumption per sqm	≤ 121	≤ 126	121
Waste sorting (%)	≥ 81.5 (Property management 70%/ Projects 93%)	≥ 80.5 (Property management 70%/ Projects 91%)	81.5 (Property management 70%/ Projects 94%)
Number of reported precautionary safety incidents in property management	≥ 2.5 reported precautionary safety incidents per person in property management per month	No injuries in and around our buildings involving sick leave absence with more than three days sick leave, where Entra can be held responsible	0
Number of reported unwanted events in project development	≥ 2.5 reported unwanted events per 1000 working hours per project	No injuries in our construction projects involving more than 16 days of sick leave.	5

¹ Administrative costs are for the calculation of the KPI adjusted for non-recurring effects not related to the ongoing business of Entra

Key ESG metrics

	2022	2021	2020	2019	2018

Resource efficiency in property management portfolio
Energy consumption (kWh/sqm/L12M)	126	131	123	136	145
Change in energy consumption year on year, like for like	-1%	5.6%	-10.1%	-2.8%	2.9%
Energy consumption – temperature adjusted (kWh/sqm/L12M)	121	123	118	135	142
Fossil free energy in property management portfolio
Share of produced green energy in % of energy consumption	1.3%	1.5%	1.4%	0.9%	0.2%
Guarantees of origin green energy in % of energy consumption	100%	100%	100%	100%	100%
Waste management
Waste in property management (kg/sqm/L12M)	3.2	2.5	2.7	3.6	3.7
Waste sorting in % property management	70%	69%	71%	65%	61%
Waste sorting in % in project development portfolio	94%	95%	92%	94%	85%
Water management
Water consumption (m3 /sqm/L12M)	0.2	0.2	0.2	0.3	0.3
BREEAM NOR/BREEAM-In-Use certification of property portfolio
Certified properties, % of sqm	60%	51%	51%	29%	21%
Certified properties, number of properties	39	28	24	18	12
Certified properties, % of rental income	56%	60%	54%	35%	27%
Certified properties, % of property values	58%	53%	52%	38%	31%
ESG benchmarks
GRESB points / stars awarded (out of 5 possible)	90	92/5	87/5	84/4	81/4
EPRA Sustainability Benchmark	GOLD	GOLD	GOLD	GOLD	GOLD
Environment Lighthouse award ("Miljøfyrtårn")	Yes	Yes	Yes	Yes	Yes
MSCI ESG Rating	AAA	AAA	NA	NA	NA
EU Taxonomy eligible	100%
Share of green financing (green bonds or bank loans)	45%	69%	48%	32%	10%
Social
Number of full-time employees	208	174	186	174	152
Diversity (% women/men)	36/64	37/63	38/62	38/62	30/70
Sick leave (% of total days L12M)	2.9%	2.6%	3.1%	2.6%	4.2%
Injuries with long term absence ongoing projects	5	1	0	0	3
Accidents with lost time ongoing projects (per mill. hrs. L12M)	4.9	8.1	4.7	2.0	6.9

Environment

Environmental leadership is one of Entra's three strategic pillars, and Entra has over the last decades developed a corporate culture with a strong environmental focus throughout the entire company. Entra's work to prevent climate change is built on the precautionary principle, and the company's environmental leadership has become well-known among its stakeholders. The environmental commitment contributes to attracting the best and most competent resources.

Entra is committed to contribute to the transition towards a low carbon society, and the overarching target is to become a Net Zero Carbon company within 2030. Entra's definition of Net Zero Carbon include:

· Scope 1 and 2 emissions (Entra includes tenants energy consumption in Scope 2)
· Emission from waste and water in property management (Scope 3 emissions)
· Embodied carbon from newbuild projects and large redevelopments (Scope 3 emissions). Embodied carbon refers to emissions arising from manufacturing, transportation and installation of building materials

This is an ambitious target that needs focused work to reduce both direct and indirect emissions throughout the entire value chain.

To reach this target, Entra has developed an environmental strategy with a 360° approach, which includes targets and strategies for 1) the property portfolio and property management, 2) the development projects, 3) the organisation, and 4) the company's stakeholders.

The property portfolio

Reducing CO² emissions from property management and operations are essential for Entra to reach the overarching target of becoming net zero carbon by 2030. When considering the total emissions from refrigerants, energy consumption, waste and water from the property portfolio in 2022, 67 per cent of the CO² emissions stem from energy consumption. The second largest source of CO² emissions is waste, which accounted for 27 per cent of the total emissions from the property portfolio in 2022.

In addition to focusing on reduction of CO² emissions, Entra has a strong focus on managing all environmental impacts from property management in an efficient manner. Among other things, this includes circular principles in operations, adapting buildings to be fit for future climate scenarios, and an increased focus on biodiversity. Having a sustainable property portfolio is critical for future-proofing the business, reducing operational costs, and ensuring the best product for customers.

Main target

Entra's main target for the management portfolio is to reduce CO2 emissions by 70 per cent by 2030, from a 2015 baseline. The target is set based on the methodology of the Science Based Targets initiative (SBTi). From 2021 to 2022, Entra reduced its CO² intensity from Scope 1 and 2 emissions from 4.0 kg CO² e/sqm to 3.6 kg CO² e/sqm. Entra includes energy consumption from tenants in Scope 2. If the Scope 3 emissions from waste and water is included the reduction was from 5.2 kg CO² e/sqm to 5.0 kg CO² e/sqm.

CO2 emissions from management portfolio

Entra continuously works towards greater insight in CO² emissions from the property portfolio. In addition to calculating emissions from refrigerants, energy consumption, waste and water from the property portfolio, Entra has in 2022 broadened its CO² calculation to include emissions from Scope 3, hereunder from purchased goods and services. For Entra the main part of the emissions within this category stems from goods and services purchased in the management portfolio, the majority in connection with tenant adaptations and refurbishments. The Scope 3 emissions from purchased goods and services are calculated using a spend based method.

Focus areas

Reduce portfolio energy consumption
Reduce waste quantities and increase waste sorting
Increase the percentage of buildings in the property portfolio which can be proven sustainable through objective criteria.
Responsible use of resources and increased biodiversity in property management.
Produce energy from renewable sources
Reduce water consumption
Phase out refrigerants with high GWP

Reduce portfolio energy consumption

As part of the Net Zero Carbon strategy, Entra has set ambitious yearly targets for energy reduction in the property portfolio.

For more than 20 years Entra has worked diligently to reduce the energy consumption in its portfolio. From 2011 to 2022 the energy consumption was reduced from 202 kWh/sqm to 121 kWh/sqm. The short-term target and KPI for 2023 is 121 kWh/ sqm. At the same time, work continues to reduce the peak load on the energy grid.

Focused and systematic work and technical upgrades over time are important drivers for how Entra has succeeded in this work,

Energy consumption

Internal measurement method derivates from EPRA methodology as it adjusts for differences in e.g. outside temperature.

supported by the energy management system which has made it possible to measure, compare and follow up various initiatives. Over time Entra has built and strengthened a corporate culture where energy management is an integrated part of the operating organisation. The company has operational staff with high technical competence who focus on deviations and energy use. Entra is now at a level where continued reductions in consumption primarily will be driven through technological development and continuous improvements in the portfolio.

Over time, several green measures have been implemented in the portfolio, amongst others through green benefit agreements together with tenants, as further described on page 64. This has been an important contributor to succeeding with energy reductions. This type of investment usually has a long payback period, and Entra has adopted a slightly lower return requirement for investments that contribute to energy reduction or other environmental measures.

	EMISSION FROM MANAGEMENT PORTFOLIO					Absolute performance Like-for-like by (Abs) property type (LfL)
EPRA Code	Units of measure	Indicator			2021	2022	2021	2022

	GREENHOUSE GAS EMISSIONS
GHG-Dir-Abs	annual tonnes CO2 e	Direct	Scope 1		179	312	179	310
	GHG-Indir-Abs annual tonnes CO2 e	Indirect/location based	Scope 2		3 876	4 342	3 816	3 406
GHG-Int	kg CO2 e / sqm / year	GHG emissions intensity		GHG Scope 1 and 2 intensity from building energy	4.00	3.59	3.97	3.92

	GHG-Indir-Abs annual tonnes CO2 e	Indirect	*Scope 3	1. Goods and services purchased	NA	29 271	NA	29 271
				5. Waste and water generated in operations	1 226	1 812	1 160	1 287
			Scope 3 total		1 226	31 082	1 160	30 557
			Scope 1+2+3		5 281	35 736	5 155	34 273
	No. of applicable properties			Energy and associated GHG disclosure coverage	67 out of 84 81 out of 91		64 out of 71 57 out of 65
	%			Proportion of energy and associated GHG estimated	0%	0%	0%	0%
	GREENHOUSE GAS EMISSIONS
	GHG-Indir-Abs annual tonnes CO2 e	Indirect/market based	*Scope 2		9 960	13 928	9 914	9 616

Data Qualifying Note

1: GHG Scope 2: Alternative Electricity emission - Market based method (Guarantee of Origin) according to GHG-Protocol. Corrections 2021 emission due to calculation error.

2: GHG Scope 3: The following Scope 3 emissions are not considered relevant for Entra Management Portfolio: 2. Capital Goods, 3. Fuel and energy-related activities, 4. Transportation and distribution, 6. Business Travel, 7. Employee commutes, 8. Leases assets upstream, 9. Downstream transportation and distribution, 10. Prosessing of sold products, 11. Use of sold products, 12. End prosessing of sold products, 13 Leased assets downstream, 14. Franchise, 15. Investments.

3: GHG Scope 3: In 2022 Entra included emissions from purchased goods and services in management portfolio.

Reduce waste quantities and increase waste sorting

In addition to reducing emissions from energy consumption, Entra works actively to reduce emissions from waste as this constitutes some 27 per cent of the CO² emissions from the property portfolio.

The focus is on optimising waste management and solutions for waste sorting and collection as this is essential to enable optimal reuse or recycling of the waste. Targets are set for waste sorting in each asset, and the overall target for 2022 was 70 per cent waste sorting, which was also achieved. For 2023 the target is set at 70 per cent.

Furthermore, Entra strives to reduce the quantity of waste in buildings and looks for solutions for multi-use and reuse. Examples of this in the management portfolio are paperless offices, a reduction in food waste from canteens, as well as a focus on reuse in relation to tenant alterations.

In order to succeed in reducing waste from tenants' exclusive areas, including waste from canteens, it is necessary to collect data about the waste that is generated from individual tenants. Today, the data is collected at a building level. Enhanced data insight can help to follow-up and motivate each tenant individually based on their specific needs. At the end of 2022, Entra started a pilot project for collecting waste data together with the proptech company Carrot, to solve the lack of waste data by collecting and visualising it with their software. The main purpose of the pilot project is to identify relevant ways to use the waste data at tenant level to achieve increased sorting rates and reduce waste quantities.

Sustainable assets

Entra targets to increase the percentage of buildings in the property portfolio which can be proven sustainable through objective criteria. It is necessary to have a thorough insight of the sustainability of all the company's assets and management of the assets to reach the goals for the property portfolio set by the environmental strategy. Because of this, Entra works systematically to identify the sustainability performance of all buildings, and has set a goal to continuously increase the percentage of buildings in the portfolio which can be proven sustainable through objective criteria such as the EU Taxonomy alignment and BREEAM certifications.

EU Taxonomy alignment

The technical screening criteria and the "do no significant harm" criteria for "Construction of new buildings", "Renovation of existing buildings", and "Acquisition and ownership of buildings" in the EU Taxonomy are relevant for Entra and are used as a set of objective criteria when mapping out the sustainability performance of the property portfolio and investments in the future. 100 per cent of Entra's rental revenues and operating costs are taxonomy eligible.

In Norway, the EU Taxonomy is applicable from 1 January 2023. However, the necessary national criteria for fully-fledged reporting are not fully defined in Norway as of February 2023.

Nevertheless, Entra has made assumptions for its reporting for 2022 as to what the criteria will be, based on the conclusions from relevant industry forums that are described below.

Chapter 7.7 in the EU Taxonomy refers to the top 15 per cent of the national building stock with regard to energy demand. As of February 2023, there are no national guidelines or statistics that define what is required to qualify as top 15 per cent in Norway. Entra's approach for reporting on revenues and operating expenses from properties under management for 2022 is thus based on a report written by the technical consulting firm Multiconsult on behalf of Kredittforeningen for Sparebanker (KfS) and Eiendomskreditt1 . In this report, Multiconsult has developed a methodology for identifying the top 15 per cent of the national building stock in Norway for different building types. The report concludes that non-residential buildings which correspond to energy standard C or better are likely to be within the top 15 per cent of the national building stock.

There is further uncertainty in the criteria related to revenue and operating expenses coming from properties under management. If properties in the portfolio that were built as new buildings met the criteria for the activity described in "7.1 Construction of new buildings" at the time they were built, or if a renovation of an existing building met the criteria for the activity described in "7.2 Renovation of existing buildings" at the time it was renovated, it is unclear whether revenue and operating expenses for these properties are then considered EU Taxonomy aligned moving forward or if the buildings need to comply with criteria outlined in "7.7 Acquisition and ownership of buildings" to be seen as EU Taxonomy aligned.

Since the above is uncertain, the properties and subsequently all of Entra's revenue and operating expenses from properties under management have been mapped using the criteria for "Acquisition and ownership of existing buildings".

According to these criteria, and with the above mentioned definition of the top 15 per cent of the national building stock, 59 per cent of Entra's revenues and 45 per cent of Entra's operating expenses are likely aligned with the EU Taxonomy.

This methodology could, however, be on the conservative side and thus a higher share of Entra's assets could classify as compliant with the EU Taxonomy than what results from the methodology developed by Multiconsult and currently used in Entra's reporting.

When it comes to Entra's capital expenditure, the main part stems from investments in new construction and renovations and the acquisition cost of properties. The EU Taxonomy Annex 1 chapter 7.1 technical screening criteria state that the primary energy demand of a new construction must be 10 per cent lower than the national Nearly Zero Energy Building (nZEB) requirement. An official nZEB definition was not concluded until February 2023 in Norway. Entra will thus incorporate this and present numbers for alignment of its capital expenditure in the annual report for 2023.

Additionally, criteria for "7.3 Installation, maintenance and repair of energy efficiency equipment", "7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)", "7.5 Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings" and "7.6 Installation, maintenance and repair of renewable energy technologies" in the EU Taxonomy are highly relevant for Entra's operating organisation as the company continues to invest and take measures to improve the sustainability performance of each building. Expenses related to these activities will be included in the reporting for 2023.

Alignment with minimum social safeguards

To qualify as a sustainable activity under the EU Taxonomy, certain minimum social safeguards must be complied with. Entra has a Human Rights Policy and focuses specifically on risks related to health and safety and other working conditions for workers in its supply chain. In this respect, Entra carries out risk mapping and assessment of human rights risks in its supply chain. The company follows up with increased attention on projects identified as high risk, and regularly carries out audits of suppliers and contractors. For further information see the separate section on social issues. Entra expects it would fulfil requirements relating to minimum social safeguards.

BREEAM certification

In addition to the criteria from the EU Taxonomy, Entra uses BREEAM-NOR for newbuilds and redevelopment projects and BREEAM In-Use in the management portfolio to screen and certify projects and the property portfolio in accordance with criteria set out by those schemes.

For all its existing buildings, the company works on assessing and benchmarking the performance of the buildings against best practice with BREEAM In-Use criteria.

BREEAM is holistic and robust, and the assessment process helps in recognising sustainable features and identifying measures that can be implemented in order to further improve the sustainability performance of the portfolio. This leads to better informed management decisions and continuous follow-up of the properties.

As of 31 December 2022, Entra has BREEAM-NOR certified 23 of its newbuild and development projects and has another four in process. Entra has BREEAM-In-Use certified the asset performance and management of 27 buildings in the portfolio and has another nine BREEAM-In-Use certifications ongoing as of year-end 2022.

Responsible use of resources and increased biodiversity in the property portfolio

Contributing to responsible use of physical resources in the operation of the company's properties is important, and Entra, as an environmental leader in the real estate industry, aims to be a frontrunner when it comes to the circular economy and repair and reuse of assets. Amongst other things, this approach decreases CO² emissions, enables the realisation of circular economy principles, and contributes to reduced use of raw materials and further degradation of nature.

The aim is to identify and log the inventory in our assets, making it easier for the facility managers and project leaders for retrofitting of office spaces to plan for repair, refurbishment and renovation using physical resources that are already available. This work needs greater attention going forward, and in 2023, a strategy will be prepared for circularity and reuse in the organisation.

Entra also wants to encourage and facilitate the reuse of tenant's physical resources and has, as an example, provided small areas in selected buildings for materials to be placed and made available for other tenants to reuse. We plan to expand such initiatives in the years to come.

BREEAM certification of the portfolio

Percentage share of portfolio certified in accordance with BREEAM NOR/BREEAM In-Use Very Good or better

Entra has increased its focus on biodiversity and aims to improve the biodiversity at all its properties. It will also strive to be involved in neighbourhood initiatives for creating and maintaining green lungs in the urban areas in immediate proximity to its buildings. Proximity to elements of the natural environment creates a positive impact on people and supports improvements in health and wellbeing. At the same time, green areas provide habitats for species that are needed in urban areas to maintain local biodiversity.

Energy from renewable sources

Emissions resulting from energy consumption in 2022 amounted to 67 per cent of the total emissions from the management portfolio. To reduce these emissions, measures to reduce the energy demand of all assets is crucial, but in addition to this, it is a part of Entra's strategy to increase the amount of energy produced from renewable sources on-site. In Entra's property portfolio there are six buildings with solar panels, including Nygårdsgaten 91 and 93 which is a new built property completed in December 2022. The total solar energy produced at these sites was 1,333 MWh in 2022.

Entra will gradually produce more renewable energy through new development projects, redevelopment projects and by installing solar panels on the roofs and facades of existing buildings. In Q4 of 2022, the company evaluated the roof

surfaces of all properties to assess the potential to install more solar panels to increase the amount of renewable on-site energy production. The work on detailing and installing the most suitable solar installations will continue in 2023. For all roofs which are identified as less appropriate for solar panels, alternative solutions such as blue-green roofs for better stormwater management and increased biodiversity, are considered.

In order to compensate for emissions from electricity used in Entra's buildings and make its business close to climate neutral in 2022, Entra bought guarantees of origin ("green power") corresponding to the electricity consumption of the buildings for 2022.

Reduce water consumption

Entra focuses on reducing water consumption. The aim is to minimise water wastage due to possible leakages and have meters to monitor water use in the company's buildings, which is followed up through the asset management system. Where possible, automated leak detection systems are installed as well as flow control devices that regulate water supply to demand. Whenever tenants are responsible for their own equipment, they are required to install water-efficient equipment.

Nevertheless, the water consumption for the property portfolio increased from 0.15 m3 per square metre in 2021 to 0.21 m3

Focus area	Performance 2022
Reduce portfolio energy consumption	Entra has reduced energy consumption in its portfolio from 202 kWh/sqm in 2011 to 121 kWh/sqm in 2022, which corresponds to a 40 per cent reduction.
Reduce waste and increase waste sorting	The target rate of sorting for 2022 was 70 per cent for Entra's property portfolio. Entra's waste sorting rate in 2022 was 70 per cent.
	In 2022, Entra began a pilot project to collect waste data and identify ways to reduce waste quantities.
Increase the percentage of buildings in the property portfolio which can be proven sustainable through objective criteria.	The percentage of the property portfolio value which is BREEAM certified or in the process of being certified has increased from 69 per cent in 2021 to 77 per cent in 2022.
Use resources responsibly and increase biodiversity in property management.	Entra considers contributing to responsible use of physical resources in the operation of its properties as important, and always considers repair and reuse above anything else. Entra has increased its focus on biodiversity and aims to improve the biodiversity at all its properties.
Produce more energy from renewable sources	In Entra's property portfolio there are 6 buildings with solar panels, including Nygårdsgaten 91 and 93 which is a new development finished in December of 2022. The total produced solar energy at these sites was 1,333 MWh in 2022.
Reduce water consumption	The water consumption for the property portfolio increased from 0.15 m3 per square metre in 2021 to 0.21 m3 per square metre in 2022. Looking back to the last full normal year, 2019, there was a decrease from 0.29 m3 per square metre.
Phase out refrigerants with high GWP	In 2022, the redevelopment projects St. Olavs Plass 5 and Tordenskiolds gate 12 were incorporated in the property portfolio. Both buildings are equipped with refrigerant equipment using propane as a refrigerant. Additionally, two systems with a large refrigerant charge have been replaced.

PERFORMANCE IN 2022

per square metre in 2022. However, comparing these last years is ambiguous due to the Covid-19 pandemic which caused lockdowns in Norway in large parts of 2020, 2021 as well as early in 2022. When comparing water consumption in 2022 to the last full normal year, 2019, there has been a decrease from 0.29 m3 per square metre.

Phasing out refrigerants with high GWP

Less than 1 per cent of the yearly CO² emissions from the property portfolio stems from leakage of refrigerants. To reduce these emissions, Entra has established a plan for phasing out of the refrigerants with high global warming potential (GWP) as they contribute to CO² emissions if there are leakages in the systems. The plan takes into account the remaining life of the technical equipment that utilises the specific refrigerant, as it is not seen as sustainable to replace technical equipment which is fully functioning. Monitoring and closely following all equipment to avoid leakage, is done by Entra's operational organisation. The technical equipment which has reached its service life is replaced by installations which use low-GWP refrigerants.

In 2022, the redevelopment projects St. Olavs plass 5 and Tordenskiolds gate 12 were incorporated in the property portfolio. Both buildings are equipped with refrigerant equipment using propane as a refrigerant. Additionally, two systems with a large refrigerant charge have been replaced.

Low carbon project development

Reducing emissions from refurbishments and project development is where Entra can make the largest contribution to CO2 reductions. The indirect CO² emissions from purchased goods and services account for several times the level stemming from operations and management of buildings. Entra has further developed its environmental strategy for project development during 2022 and set new and ambitious targets.

Main goal

By 2030, the life cycle CO² emissions from project development are to be reduced by 80 per cent compared to the 2020 industry average. In CO² reporting for project development, embodied carbon is included, as well as 60 years of operation and maintenance of the asset, and decommissioning after 60 years. The framework developed from FutureBuilt is the basis for the calculations and, going forward, Entra will target FutureBuilt criteria in new-build and redevelopment projects.