REPORT ESG 2023

index GRI

projects residential 10

apartments 1,564

:occupancy 2023 of End 78%

:value Asset EUR million 408

1971-1996

.only Israel in activities investment and development estate Real

1997

,Europe in operations of Commencement the with ,Republic Czech the in starting residential and mall shopping a of development .Prague in projects

2004

Public Initial on) IPO (Offering Stock Aviv Tel the the under ,Exchange Israel Africa name .Ltd Properties

today2008-

through CEE in portfolio s'AFI of Expansion investment growing continuously and intensive the in especially ,activity development and ,Serbia ,Romania :markets core s'Company Successful .Poland and Republic Czech ,projects development major of completion office and parks business numerous as such ,Romania in malls shopping three ,complexes delivering projects residential several and .sale and rent for apartments of thousands office operating of acquisition Strategic and Republic Czech ,Romania in properties core-non of divestment the as well as ,Poland .Hungary and Germany in assets

Development s'AFI

2004-2007

to Europe in operations of Expansion ,Bulgaria ,Poland ,Romania ,Serbia Significant .Hungary and Germany ,Latvia .CEE across activity development

2019

new to Transition change the and ownership to name s'Company the of .Ltd Properties AFI

2021

a is centers Shopping BIG with shareholder controlling of change a ,ownership new the term-long to strategy group a .estate real the of holding

Highlights ESG 2023

AFI About

1971

1996

1997

2004

2007

2008

2019

2021

years five next the for strategy investment s'AFI generating-income of portfolio its expand to is increasing of objective the with ,properties new through) operations from funds (FFO rental and office of acquisitions and developments s'Company the on focusing ,properties housing ,Romania ,Republic Czech ,Israel – markets core .Poland and Serbia

to commitment s'AFI with alignment In will projects development new the ,sustainability BREEAM and LEED by set standards the to adhere in improvement continuous ensuring ,certifications .performance environmental and efficiency energy expand to aims Company the ,Furthermore its diversifying ,activity rental residential its sustainable promoting while portfolio investment seeks only not approach This .development urban contributes also but ,growth financial achieve to AFI which in communities the to positively .operates

s'Company the in role key a plays Innovation IT in investment significant with ,projects that solutions building smart and infrastructure

Approach Business s'AFI

tenant and efficiency operational enhance advancements technological These .satisfaction objectives sustainability achieve to designed are that ensuring ,optimization resource and and environmental modern meet properties .standards digital

actively is and introduced also has AFI offering ,Home AFI ,brand new its developing meet to designed apartments rental quality-high brand This .living urban modern of needs the creating to dedication s'Company the highlights AFI The .communities livable and sustainable balance a provide to built are properties Home the meeting ,design innovative and comfort of conscious environmentally of expectations .growth termlong s'company the supporting and tenants

a demonstrates AFI ,initiatives these Through and innovation embracing in approach proactive benefit the for practices sustainable integrating as position its reinforcing ,stakeholders all of estate real relevant the in leader industry an .markets

Introduction

Highlights ESG 2023

AFI About

Environment

approach business s'AFI

Resilience Operational Conflict Amid

in began which ,Israel in war the Throughout and resilience demonstrated has AFI 2023, October continuity operational maintaining by adaptability .employees its of safeguarding the prioritizing while measures implemented swiftly Company The ,operations business uninterrupted ensure to enable to infrastructure IT robust its leveraging included This .capabilities work remote seamless flexibility and protocols security data enhanced allowing ,arrangements home-from-work for unprecedented under efficiently work to employees .conditions

its on war the of toll emotional the Recognizing support comprehensive introduced AFI ,employees stress managing on workshops as such ,programs resilience health mental fostering ,anxiety and .family the within communication improving and to contributed have measures proactive These maintaining and burnout employee preventing of continuity the ensuring while productivity .crisis ongoing the despite operations business

its demonstrated Company the ,addition In making by responsibility social to dedication arising needs community support to donations .war the from

to ability s'AFI underscores approach holistic This resilience its proving ,challenges complex navigate being-well the to commitment its reflecting and .employees its of

Stands AFI its With Employees

Introduction

Highlights ESG 2023

AFI About

Environment

Social

the its in embodied are values core s'Company The to employees all guides which ,Conduct of Code ,practices work of standards highest the uphold As .laws with compliance and ethics business required are employees s'AFI ,Code the in outlined and ,respect and integrity of principles to adhere to .regulations and laws applicable all with comply to for expectations clear sets Conduct of Code The with act to employees encouraging ,behavior their for responsibility take and accountability s'Company the supporting thereby ,actions .trustworthiness and reliability for reputation

committed is AFI ,Code the with alignment In its in inclusivity and diversity promoting to for tolerance zero with ,environment work .harassment or discrimination

Values Core s'AFI

guidelines provides also Conduct of Code The ensures This .interest of conflicts managing for goals s'Company the prioritize employees that .organization the across makingdecision ethical maintaining ,gains personal over

to dedication s'AFI ,Code the with keeping In reporting its in embedded is transparency to employees all require which ,mechanisms .information accurate and truthful provide report to encouraged are employees ,Furthermore behavior unethical or violations suspected any open an promoting ,retaliation of fear without .protected and valued is integrity where culture Company the ,approach driven-values this Through ,term-long building to commitment its reinforces

.stakeholders with relationships sustainable

of foundation the shape values core s'AFI making-decision ,culture organizational its These .direction strategic and processes operations daily s'Company the guide values to commitment term-long its reflect and of culture a fostering By .growth sustainable ,transparency and accountability ,integrity and operations its across value creates AFI and stakeholders of expectations the meets .community broader the

,decisions influence values core s'Company The to partnerships and investments strategic from ,values these with line In .operations day-to-day on impact its improve to seeks consistently AFI culture work positive a foster ,environment the .serves it communities the to contribute and

Highlights ESG 2023

AFI About

Environment

Report ESG 2023 14 |

Vision s'AFI Mission and

leading a as position its enhance and maintain to is vision s'AFI residential and retail ,office of operator and developer ,investor notch-top and assets landmark its for reputable ,properties sustainability to dedication its for and ,quality development .practices business ethical and

that properties operate and develop to aims Company The through achieved is This .life and work' clients its improve ,buildings office quality-high of management and design the with aligned are that projects residential and centers shopping .LEED and BREEAM as such ,standards sustainability global ,responsibility environmental prioritize developments s'AFI renewable to methods construction efficient-resource from portfolio its of footprint carbon the reducing ,integration energy .environment the on impact positive a fostering and

sustainable driving by value enduring create to is mission s'AFI the to contributing while performance business and financial it communities the of being-well environmental and social .serves

,stakeholders its to committed deeply is Company The retention and engagement employee of culture a promoting a and being-well ,development professional in investing by risks operational mitigates AFI .environment work collaborative continuously and Governance of standards high upholding by .capabilities technological and efficiency its enhancing

ability its by driven is success term-long s'Company The market evolving of face the in resilient and agile remain to its of being-well the prioritizing consistently while conditions .serves it communities the of and employees

to is mission s'AFI value enduring create sustainable driving by business and financial while performance social the to contributing environmental and the of being-well serves it communities

Introduction

Highlights ESG 2023

AFI About

Environment

,environmental high to committed fully is AFI (ESG (Governance corporate and social ESG integrate to strives Company The .standards development property its into considerations creating thereby ,practices management and employees ,partners business ,clients for value .investors and

of implementation effective the ensure To Directors of Board s'AFI ,practices sustainable

Commitment Management ESG to

framework Governance a established has leadership Key .matters ESG overseeing for AFI of CEO Deputy the ,CFO the including ,roles ,Manager Operational Group the and Europe across efforts ESG lead to assigned been have each ,Additionally .operations s'Company the projects s'AFI managing subsidiaries the of operation of countries its in properties and for responsible officer ESG an appointed has .matters ESG specific-project and local managing ensuring ,reports regular provide officers These in accountability and consistency ,transparency .initiatives ESG s'Company the of execution the views AFI ,framework Governance this Through

growth key a as aspects ESG of integration the its maintaining for essential as well as ,driver relationships fostering and reputation strong .stakeholders all with

Introduction

Highlights ESG 2023

AFI About

Environment

Topics Material Reporting for

s'AFI to central are reporting for selected topics ESG The well as ,expectations stakeholder and strategy business its enhancing of goal overarching s'Company the to as As .performance Governance and social ,environmental benchmark a conducted we ,report this preparing of part priorities and performance ESG s'AFI compare to analysis material identified and ,companies peer of those with The .objectives strategic term-long its with aligned topics executive with discussed and presented were findings ensuring ,Directors of Board the and management with aligned is topics material of selection the that .objectives strategic term-long s'Company the

most the represents topics material of list final The the of basis the forms and ,AFI for issues ESG significant range a encompass topics These .strategy ESG s'Company ,management environmental including ,areas critical of and Governance ,responsibility social ,efficiency energy AFI ,areas these prioritizing By .conduct business ethical for value term-long creating to commitment its reaffirms sustainable to contributing actively while stakeholders .practices business responsible and development urban

s'Company the guide will topics material selected The continuous ensuring ,focus strategic and reporting future :performance ESG in improvement

,AFI for issues ESG significant most the represents topics material of list final The strategy ESG s'Company the of basis the forms and

Introduction

Highlights ESG 2023

AFI About

Environment

Material topic	Description
GHG emissions	Reducing greenhouse gas emissions is critical for combating climate change and , this becoming top a priority AFI for to due regulatory pressures the and global shift toward decarbonization The . Company will is strive to achieve this through the implementation of energy efficiency solutions and investment in renewable energy across both its operational asset portfolio and new developments
Energy management	Efficient energy use and the transition to renewable energy sources not only reduce operational costs ,AFI for but also significantly contribute to environmental sustainability , making energy management highly relevant The Company will invest in technologies that promote the of use renewable energy and reduce dependence on conventional sources , thereby enhancing energy efficiency
Climate adaptation	Proactively addressing climate - related risks aligns AFI with global sustainability initiatives this to; end the , Company will implement measures to mitigate climate change , including emissions monitoring and the adoption of green solutions for new developments
Green building certification	Certifications such LEED as and BREEAM are for vital maintaining market competitiveness and meeting stakeholder expectations for sustainability real in ; estate therefore AFI , to aims continue obtaining LEED and BREEAM certifications its for properties its in portfolio , ensuring compliance with sustainability and energy efficiency standards
Waste management	Effective waste management minimizes environmental impact and contributes to circular economy efforts ; accordingly AFI , will promote responsible waste management both during construction phases and the in operation of buildings , integrating recycling and waste reduction initiatives
Water management	AFI prioritizes reducing water consumption its and properties will include -water efficient installations to minimize their water footprint

Impacts Environmental

Highlights ESG 2023

AFI About

Reporting for Topics Material

Material topic	Description
Health , Safety & Well being-	Ensuring safe a and healthy environment for employees , tenants and visitors is essential for operational stability and maintaining stakeholder ,trust making top a it social impact priority thus; AFI , implements strict health and safety policies in compliance with local and international standards to uphold safe a and healthy environment .all for
Tenant engagement & Customer satisfaction	Satisfied tenants and customers are to key business success in real the estate ,sector impacting retention ,rates reputation and overall business growth ; therefore is AFI , committed to monitoring and addressing the expectations its of tenants and customers , actively assessing their needs to ensure properties and services meet their requirements
Human capital	Investing in employees and promoting a diverse , inclusive workforce are critical for team collaboration , engagement and long term- value creation thus; is AFI , committed to creating an inclusive and diverse workforce and , provides professional training and internal mobility opportunities while safeguarding human rights throughout its operations
Community involvement & Corporate giving	Engaging with and supporting local communities enhances social awareness and contributes to sustainable urban development ; accordingly AFI , actively fosters strong relationships with local communities by understanding their needs and positively contributing to community development and quality .life of
Diversity & Inclusion	While closely to tied s'AFI human capital , diversity and inclusion initiatives are also relevant our to tenants , customers and visitors they as support broader social equity goals and strengthen the company s' social impact ; therefore the , Company promotes diversity and inclusion within its workforce its and properties , incorporating accessibility features to foster an inclusive environment

Impacts Social

Highlights ESG 2023

AFI About

Reporting for Topics Material

Material topic		Description
	Corporate Governance & Ethical business conduct	Robust corporate Governance frameworks are essential for maintaining investor ,trust ensuring regulatory compliance and upholding ethical standards thus; AFI , upholds transparency , accountability and ethical business practices through clear Governance mechanisms and policies to manage risks and conflicts of interest Frameworks such the as Company ESG s' Policy and Code of Conduct ensure responsible and sustainable operations that meet the expectations of investors , tenants and other stakeholders
	Risk management	Effective risk management is crucial for maintaining business resilience and addressing both operational and strategic ,risks particularly those related ; ESG to therefore AFI , implements preventive and remedial risk management measures across its operations
	Compliance	Ensuring compliance with ,laws regulations and standards a is fundamental aspect of maintaining credibility and avoiding legal risks thus; AFI , conducts its activities full in compliance all with applicable ,laws regulations and standards
	Privacy protection & Data security	As digitalization and data privacy become more critical , safeguarding is data essential for maintaining stakeholder trust and preventing reputational damage ; therefore AFI , prioritizes protecting the privacy and security of employee , tenant and customer data through robust technological and procedural measures
	Transparency & Stakeholder dialogue	Open communication with stakeholders is to key fostering trust and managing expectations ; consequently , AFI promotes open and transparent dialogue with stakeholders to ensure continuous communication regarding ESG its progress and initiatives

Impacts Governance

Highlights ESG 2023

AFI About

Engagement Stakeholder

a as Report ESG the views AFI its disclosing for tool strategic enhancing for as well as ,activities by engagement stakeholder how on transparency providing considerations ESG integrates it operations its into

,transparency of principles the to committed is AFI it that ensuring ,responsibility social and accountability ,manner ethical and responsible ,prudent a in operates ,shareholders including ,stakeholders its to respect with the and regulators ,suppliers ,employees ,tenants ,customers fostering that recognizes Company The .community broader fundamental is stakeholders with relationships term-long with objectives business aligning and trust maintaining to .expectations stakeholder

its disclosing for tool strategic a as Report ESG the views AFI engagement stakeholder enhancing for as well as ,activities ESG integrates it how on transparency providing by key a as serves report This .operations its into considerations ,identifies Company the how communicating for instrument highlighting while risks related-ESG mitigates and assesses .sustainability in efforts ongoing and achievements s'AFI internal for essential is report ESG periodic the ,Additionally and improvement continuous driving ,assessment-self .performance future for goals measurable setting

qualitative with along ,areas these in activities it publishing By foster to seeks Company the ,metrics quantitative and data to them encouraging ,stakeholders with dialogue deeper a .journey sustainability s'AFI in partners as themselves view its into expectations and feedback stakeholder integrating By and relationships strengthen to aims Company the ,approach sustainability its that ensuring thereby ,trust term-long build contribute and standards global with aligned are efforts .environment and community broader the to positively

open maintaining to committed is AFI ,Furthermore ensure to stakeholders with channels communication and understood are expectations and concerns their that stakeholder to dedication s'Company the reflecting ,addressed .processes making-decision in inclusiveness

Introduction

Highlights ESG 2023

AFI About

Environment

address and input gather to stakeholders relevant with engages AFI of aspects social and environmental the to related concerns any in involved actively are stakeholders that ensuring ,projects its feedback their that and ,processes development and planning the .planning project and findings diligence due into integrated is

the via ,stakeholders its with communication ongoing Through that ensures Company the ,below presented channels dialogue approach This .engaged actively and informed-well are they to ability s'AFI enhances and trust builds ,transparency fosters .effectively concerns stakeholder address

Stakeholders With Collaboration

Stakeholder group	Internal level of engagement	Engagement channel	ESG topics discussed
1. Regulators & Public authorities	Company level	Regulatory compliance reporting ● Participation in public consultations ● Direct and indirect communication ● with regulators Partnerships with public authorities ●	Corporate Governance ; Compliance with local regulations ; Environmental standards ; Sustainability certifications ; Financial and tax reporting obligations ; Health and safety compliance
2. Shareholders , investors & Financing partners	Company wide- level	Shareholder meetings ● Periodic financial and ESG reports ● Direct communication with public ● institutional and private investors Dedicated investor relations ● platform ( website (	Corporate Governance ; Sustainability reporting Risk . management Green . building certifications Health and ; safety Energy efficiency and resource management ; Diversity , equity and inclusion initiatives
3. Employees	Company level	Annual performance reviews and ● -self evaluation Health and safety trainings ● on-One one- meetings with ● management Internal newsletters ●	Health & safety at .work Employee well being- and work life- balance ; Diversity equity , and inclusion Professional development and training opportunities ; Human rights and ethical behavior ; Internal mobility ; Internal sustainability initiatives .,g.e ( resource efficiency , recycling .(

Introduction

Highlights ESG 2023

AFI About

Environment

Stakeholder group	Internal level of engagement	Engagement channel	ESG topics discussed
4. Contractors	Company wide- and project asset/ level	Contractors ' periodic inspections ● Direct communication with relevant ● managers Policy and contracts due diligence ● Health and safety guidance ● provided during site visits	Ethical practices ; Health and safety standards during construction Waste . management during project of Use -energy efficient materials
5. Tenants	Company wide- and project asset/ level	Direct communication with relevant ● managers Contractual communication ● Customer service hotline and ● Information desk Media platforms ●	Energy and water management ; Health and safety the in workplace ; Recycling and waste reduction programs ; Environmental certifications Tenant well being- Social; initiatives ; Tenant financial performance
6. Local community	Project and private asset level	Community engagement programs ● Social initiatives , sponsorships and ● donations Partnerships with local NGOs and ● schools Community events and ● environmental awareness campaigns	Social initiatives ; Community contributions Local . economic development ; Creation and maintenance of green spaces ; Education on sustainability practices ; Cultural heritage and local ecosystem preservation
7. End consumers – visitors	Company wide- and project asset/ level	Public announcements and ● marketing campaigns Information desk and customer ● support Media platforms social ( (media ●	Health and safety in public spaces ; Social responsibility initiatives ; Recycling and waste reduction programs ; Accessibility and inclusiveness of facilities ; Community involvement and event participation

Highlights ESG 2023

AFI About

Report ESG 2023 23 |

Development Sustainable Nations United The ,Goals Global the as known also ,)SDGs (Goals as 2015 in Nations United the by adopted were and social tackle to action to call universal a targeting also while ,challenges environmental .innovation and inequalities reduced ,growth economic development urban for sector pivotal a as ,estate Real advancing in role crucial a plays ,infrastructure and responsibility its recognizes AFI .objectives global these ,investments its through SDGs the of progress drive to ,commitment this with line In .workforce and operations

its into SDGs key several integrated has Company the efforts sustainability its aligning ,approach business .priorities global with

s'AFI Commitment SDGs the to

its recognizes AFI to responsibility the of progress drive Development Sustainable its through Goals operations ,investments workforce and

Introduction

Highlights ESG 2023

AFI About

Environment

SDGs the to Commitment s'AFI

and work Decent – #8 SDG growth economic

employee protecting to committed is AFI and fair ,safe a promoting and rights The .environment work supportive and work decent to approach s'Company :includes growth economic

a ensuring ,policies safety and Health● employees both for environment safe local to adheres AFI .contractors and and ,standards safety international and .training regular provides
,practices employment fair Promoting● policies discrimination-anti including in ,initiatives inclusion and diversity and .values s'Company the with line
,development employee in Investments● advancement career offering and training leadership ,opportunities .programs development skills
local to contribute projects s'AFI● ,jobs generating by economies and growth economic supporting local of development the fostering .communities

equality Gender – #5 SDG

,diverse a creating to dedicated is AFI The .workplace equitable and inclusive on emphasis strong a places Company fair create to aims and equality gender .demographics all across representation

:include initiatives Key

equal for pay equal Ensuring● regular through monitored ,work .assessments compensation
senior into women Promoting● .roles management
practices recruitment Inclusive● pool diverse a attract to designed hiring fair ensuring ,candidates of .processes

working flexible promotes AFI ,Additionally ,balance life-work and arrangements that policies friendly-family supporting and equality gender both to contribute .being-well employee

energy clean and Affordable – #7 SDG

the increasing to commitment its of part As

its reduce to strives AFI ,energy clean of use

energy renewable advance and footprint carbon

.portfolio its across solutions

achievements Key

:include initiatives ongoing and

energy green from electricity Purchasing●

Serbia in properties s'AFI All | .suppliers

green 100% a from electricity consumed

in supplier energy

,measures efficiency energy in invests also AFI for optimized are buildings its that ensuring use the through consumption energy minimal and systems HVAC ,lighting efficient-energy of .technologies smart

Highlights ESG 2023

AFI About

Environment

SDGs the to Commitment s'AFI

Responsible – #12 SDG consumption

advancing to committed is AFI .practices consumption responsible asset and developer estate real a As critical a plays Company the ,manager use responsible the promoting in role minimizing and resources natural of :include initiatives Key .waste

and materials sustainable Using● construction in materials certified reducing ,projects refurbishment and building of impact environmental the .activities
and reduction waste Implementing● during both ,programs recycling the throughout and construction .properties the of phase operational
consumption water Reducing● efficient-water of use the through .installations

construction green to commitment s'AFI circular a of principles the with aligned is used are resources that ensuring ,economy .minimized is waste and efficiently

Innovation ,Industry – #9 SDG Infrastructure and

infrastructure sustainable and Innovation term-long s'AFI of pillars key are ,manager asset leading a As .strategy sustainable promotes Company the :by industrialization

building green to Committing● for) BREEAM ,LEED .,g.e (certifications demonstrating ,properties its of many and sustainability to commitment its .operations and design in efficiency
,solutions friendly-eco Implementing● that systems building smart including reduce and use resource optimize .impact environmental
energy renewable in Investing● ,portfolio asset its across technologies electric of expansion the as such .stations charging) EV (vehicle

edge-cutting leverages AFI ,addition In real in innovation drive to technologies efficiency operational enhancing ,estate .impact environmental minimizing while

cities Sustainable – #11 SDG communities and

creating of importance the recognizes AFI ensuring and environments urban sustainable s'Company The .communities local of beingwell the to contribute developments its that :includes approach

features design sustainability Implementing● efficient-energy as such ,properties its in friendly-eco ,systems recovery heat ,lighting that ensure features These .elements designeco other and facades glazed-triple ,elevators of reduction the to contribute buildings s'AFI visually a offering while impact environmental integrates seamlessly that façade appealing .sustainability with aesthetics
land during assessments risk Conducting● the minimize to development for selection .community and ecosystem local on impact
sustainable and public to proximity Prioritizing● private on reliance reducing ,transportation .mobility urban supporting and vehicles

leasing term-long promotes also Company The ,practices construction sustainable and strategies of principles the with operations its aligning .development urban sustainable

Highlights ESG 2023

AFI About

AFI 2023, In Poland Europe honored was Best the with ,Use-Mixed Architectural Legacy& Development Year the of Award AFI the for 83 Złota Home project Warsaw in

sustainable in excellence to commitment continued s'AFI environmental and innovation architectural ,development prestigious several through recognized been has responsibility the underscore accolades These .certifications and awards ,estate real into sustainability integrating in leadership s'Company ,functionality combine that projects deliver to efforts its and .impact social and environmental positive and value aesthetic

Rating and Awards

Best the with honored was Poland Europe AFI 2023, In of Development Legacy & Architectural ,Use-Mixed in project 83 Złota Home AFI the for Award Year the competitive highly a followed recognition This .Warsaw included which ,submissions 100 over of evaluation leading from projects distinguished most the of some .CEE across providers service and businesses estate-real

Highlights ESG 2023

AFI About

Introduction

Highlights ESG 2023

AFI About

Environment

index GRI

27 | Report ESG 2023

- Romania Europe AFI 2023 for Awards

2023 Awards Estate Real SEE 1.

Romania Europe AFI Developer Retail●
ov¸Bras AFI Project Use-Mixed● ov¸Bras Park AFI & Center Shopping Building Office
Office Park Tech AFI Project Office● Buildings
Noi tii¸Bucures City AFI Project Retail●

& Forum Property SEE 2023 2. :Gala Awards

AFI – Year the of Company Estate Real Romania Europe

:Awards Romania CSR 2023 3.

Project CSR") Plan Life" ("ă¸Vias de Plan" Community the supporting for Awarded–

:Forbes 2023 4.

Lakeview AFI – 2023 Working of Way New Building Office

s'Company the emphasize awards These performing-high to developments usemixed and retail from ,capabilities diverse to ability s'AFI showcase and ,spaces office innovative ,sustainable deliver consistently .region the across projects

been have projects s'Company the ,awards these to addition In sustainability international with alignment their for recognized ,certifications leading achieved have properties Several .standards energy on focus s'AFI reflecting ,WELL and BREEAM ,LEED as such and tenants of being-well the and ,conservation resource ,efficiency commitment s'Company the reinforce certifications These .occupants .developments estate real its into sustainability integrating to

its strengthen to continues AFI ,achievements these Through also while development estate real sustainable in reputation .agenda sustainability global the to contributing

Introduction

Highlights ESG 2023

AFI About

Environment

Social

index GRI

28 | Report ESG 2023

ensure to designed is chain value s'AFI business responsible and sustainable that ,operations its into integrated are practices property term-long to development land from to dedicated is Company The .management ,stakeholders its for only not value creating broader the and environment the for also but at sustainability embedding by community .processes making-decision its of core the

Chain Value s'AFI

local to disruptions potential reducing and .ecosystems

development the emphasizes AFI ,Furthermore combine that projects use-mixed ,integrated of .spaces residential and commerce ,employment developments these locating strategically By Company the ,hubs transportation public near on reliance reduces ,mobility urban enhances carbon reducing to contributes and vehicle private planning use-land of integration This .emissions ,sustainable creating of vision s'AFI supports .environments urban accessible and inclusive

construction Building 2.

construction s'AFI to central is Sustainability the prioritizes Company the where ,phase contractors ,suppliers of selection responsible partners its that ensures AFI .subcontractors and .requirements regulatory and legal with comply ,practices sourcing ethical prioritizes Company The minimize to materials building sustainable selecting By .construction during impacts environmental construction its of footprint carbon the reducing both are that materials utilizing and processes the supports AFI ,recyclable and efficient-energy the ,Additionally .economy circular a to transition strategies reduction waste integrates Company that ensuring ,practices construction its into minimal with managed are sites construction .consumption resource and generation waste

Development and planning Land 1.

selection careful the to committed is AFI that ensuring ,development for land of with aligned strategically is project each y regulator and social ,environmental conducts Company The .considerations impact environmental and assessments risk on effects negative minimize to analyses compliance in ,communities and ecosystems proactive This .regulations and laws local with developed are projects that ensures approach environment surrounding the with harmony in

Introduction

Highlights ESG 2023

AFI About

Environment

index GRI

29 | Report ESG 2023

Chain Value s'AFI

tenants potential with Engagement 3.

,phases leasing and marketing the During tenants potential with engages actively AFI and needs specific their understand to the enables dialogue This .requirements ensuring ,solutions tailored offer to Company with aligned are expectations tenant that functionality ,design of terms in spaces available .sustainability and

the in early feedback tenant incorporating By to properties its position better can AFI ,process sustainability and needs operational both meet

management Property 5.

AFI ,operational are properties its Once management property ongoing provides standards high maintaining on focusing management waste ,efficiency energy of Company The .conservation water and management building advanced uses and monitor to) BMS (systems water reduce ,usage energy optimize waste improve and consumption .practices recycling and segregation

visitor and tenant prioritizes also AFI health implementing by being-well indoor as well as ,measures safety and its that ensuring ,controls quality air standards highest the meet properties environmental and comfort occupant for .performance

● ● ●

,approach chain value holistic its Through an is sustainability that ensures AFI the from ,operations its of aspect essential the to development land of stages earliest .properties its of management term-long responsible to commitment This stewardship environmental ,consumption strengthens engagement stakeholder and dedicated ,developer estate real thinkingforward a as position s'Company the .all for value sustainable creating to

strengthens engagement proactive This .goals ESG s'Company the between alignment the ensuring ,aspirations tenant and commitments term-long to approach collaborative a .sustainability

tenants with relationship term-Long 4.

tenants with relationships term-long builds AFI These .contracts transparent and fair through mutual promote to designed are contracts feel tenants that ensuring ,benefit and trust .occupancy their throughout supported

Environment

is AFI to committed environmental and stewardship its minimizing environmental by footprint upholding sustainability across standards operations its

stewardship environmental to committed is AFI by footprint environmental its minimizing and its across standards sustainability upholding challenges global the Recognizing .operations Company the ,change climate by posed ,consumption energy reducing prioritizes preventing and resources conserving reflects policy ESG s'AFI .harm environmental foundation the as serves and commitment this .initiatives sustainability its for

Vision Sustainability s'AFI

Sustainability in embedded is s'Company the business from practices earliest the project of stages development

business s'Company the in embedded is Sustainability ,development project of stages earliest the from practices through extending and acquisition land with starting AFI .management assets term-long and construction with comply projects existing and new all that ensures regulations environmental international and national both buildings its certify to strives Company The .standards and ,certifications green recognized globally to according to commitment its reinforcing ,LEED or BREEAM as such .development estate real responsible environmentally

Environment

s'Company The process EIA a takes comprehensive by approach both evaluating positive the negative and the of impacts on focusing ,land areas significant during identified scoping the phase

in ,development for land potential selecting When engages AFI legislation local the with accordance Environmental conduct to consultants environmental a provide which ,)EIAs (Assessments Impact environmental potential of analysis comprehensive potential mitigate and predict to helping ,process makingdecision the to critical are assessments These .impacts .communities human and ecosystems natural both to risks building green meeting in requirement key a are s'EIA The factors environmental of range a covering ,standards air and prevention radiation ,control noise as such .projects new in management pollution

comprehensive a takes process EIA s'Company The and positive the both evaluating by approach significant on focusing ,land the of impacts negative Mitigation .phase scoping the during identified areas the to tailored and developed then are strategies potential that ensuring ,land the of context specific effectively are impacts environmental negative mitigation These .minimized or reduced ,avoided use land the into integrated directly are measures practical their ensuring ,plans management and .property the of lifecycle the throughout application

soil conducts AFI ,EIAs to addition In evaluates and surveys contamination acquiring when certifications green existing diligence-due These .properties new s'Company the that ensure activities sustainability its with align acquisitions responsible to contribute and principles broader examines also AFI .use land related-climate and socioeconomic public to access considering ,impacts .factors ecological and transportation

Sustainable practices construction

AFI ,phase construction the During into technologies efficient-energy integrates environmental the minimize to projects its the includes This .buildings its of impact ,materials insulation advanced of use smart and systems HVAC efficient-energy resource optimized for systems building Company the ,Additionally .management ,employees for programs training provides safe ,awareness environmental on focused and clean maintaining ,materials of storage promoting and ,sites construction safe .practices saving-energy

waste on emphasis significant places AFI conservation resource and management projects that ensuring ,construction during minimizing for practices best to adhere use the optimizing and generation waste the with align initiatives These .materials of ,goals sustainability broader s'Company circular a to transition the supporting footprint carbon the reducing and economy .activities construction its of

management Environmental construction-post

AFI ,phase construction the of completion After Environmental comprehensive a implements incorporates EMS The .)EMS (System Management programs management waste ,practices efficient-energy are which of all ,strategies conservation resource and compliance ongoing ensure to monitored regularly s'Company The .objectives environmental with and Managers Facility the as such ,officers relevant in role crucial a play Manager Operational Group the of performance and implementation the overseeing .initiatives environmental these

green to Commitment standards building

certified portfolio s'AFI in properties of 54% With Company the ,standards LEED and BREEAM under to commitment standing-long its demonstrates .performance environmental high and sustainability energy on focus s'AFI reflect certifications These environmental indoor and conservation water ,efficiency green in practices best global with aligning ,quality .design building

explores actively Company the ,Furthermore green of integration the expand to opportunities .pipeline development entire its across certifications certified of proportion the increase to is goal s'AFI to contribute projects future that ensuring ,buildings growing the meet and environments urban sustainable .estate real performance-high ,friendly-eco for demand

projects its into technologies efficient-energy integrates AFI buildings its of impact environmental the minimize to

Highlights ESG 2023

Environment

and infrastructure compromise ,chains-supply .communities of being-well the threaten

change climate addressing in role its recognizes AFI its reduce to order In .sector estate real the within ,tracks Company the ,change climate on impact its in efficiency energy promotes and monitors low a to transition global the supporting ,properties

Change Climate

this accomplishes AFI .economy carbon ,practices building green integrating by to shifting and usage resource optimizing efforts These .sources energy renewable strategic s'Company the with align emissions GHG reducing of objective and economic both enhancing while .performance environmental

its minimizing to commitment s'AFI embedded is footprint environmental .processes making-decision its in compliance monitors Company The and ,regulations environmental with reviews and measures continuously ongoing achieve to performance its .improvement

reduce to order In on impact its ,change climate Company the monitors ,tracks promotes and efficiency energy ,properties its in the supporting transition global carbon-low a to economy

reaching-far and significant poses change Climate ,health human ,environment the impacting ,threats around ecosystems of stability the and economies ,emissions gas greenhouse in rise The .world the contributes ,activities human by driven primarily more to leading ,temperatures global rising to disrupt ,turn in ,which ,events weather extreme

Highlights ESG 2023

Environment

s'AFI – electricity green of Purchase sourcing been have Managers Property electricity sustainable from energy to contributing further ,suppliers carbon s'Company the reducing .footprint
(EV (vehicle electric of Installation the promote To – stations charging ,transportation friendly-eco of adoption at stations charging EV installed has AFI transition the supporting ,properties its based-fuel conventional from away had Company the 2023, of As .vehicles charging EV 404 of total a installed with ,properties its across stations on based expansion further for plans and market EV the of development the .infrastructure regional available the

efficiency energy increase to initiatives pursues actively AFI recognizing ,properties its in energy renewable integrate and reducing to fundamental are practices energy sustainable that :include initiatives Key .footprint carbon overall its

had AFI total a installed 404 of charging EV across stations properties its

implement to continued has AFI – programs efficiency Energy energy optimizing at aimed programs efficiency energy various consumption energy unnecessary reducing on focusing ,use .performance operational enhancing and
LED efficient-energy to Transition traditional replaced has AFI – lighting efficient-energy with systems lighting .properties its in technology LED y energ reduces transition This lower in results and consumption the both benefiting ,costs electricity .tenants its and Company

integration energy renewable and efficiency Energy

Environment

Change Climate

Adaptation and resilience Building change climate to

building optimizes AFI design Passive and ventilation natural ,insulation ,orientation heating for demand energy reduce to shading .efficiency energy enhancing ,cooling and
AFI – insulation performance-High to materials insulation advanced employs temperatures indoor comfortable maintain .consumption energy minimizing while
that materials durable uses AFI – materials Durable ensuring ,conditions weather extreme withstand can .buildings its of resilience and longevity the both
be to designed are Buildings – integrity Structural environmental other and earthquakes ,wind to resistant .durability and safety their enhancing ,stressors
for sites selects carefully AFI selection Site related-climate to prone areas avoiding ,development .landslides or wildfires ,flooding as such hazards
backup integrates AFI preparedness Emergency emergency and materials resistant-fire ,systems power ensuring ,designs building into supplies water safely be can or functional remain properties that .events weather extreme during evacuated

resilience ensure to strategies incorporates designs building s'AFI ,efficiency energy to addition In both addresses Company The .change climate by posed risks increasing the to adaptation and :approaches following the through risks related-climate term-long and immediate

Environment

Change Climate

(2m/kWh (Intensity Electricity

70.7

consumption Electricity

y electricit total s'AFI 2023, In 2GWh 90.8 was consumption Despite . the ,activity operational increased – intensity consumption electricity consumption electricity as measured 5% by decreased – area property per the continuing 2022, to compared 2021. since established trend reduction intensity electricity in decrease This and savings cost both to contributed The .emissions GHG in reduction a the to attributed is saving energy various of implementation successful .initiatives efficiency energy

Introduction

Highlights ESG 2023

Environment

Change Climate

.data emissions full the for table data ESG the see Please .method based-market the to according emissions GHG s'AFI to refer Figures 4

emissions gas Greenhouse

Israel in operations its encompasses footprint carbon s'AFI globally the using calculated was and CEE across and 2 Scope and 1 Scope into categorized activities relatedenergy on focusing ,methodology Protocol GHG recognized .emissions

from arise emissions direct These – emissions 1 Scope 1. stationary and vehicles controlled or owned-company systems power backup for essential ,combustion fuel 3electricity ongoing and .needs
from result emissions Indirect – emissions 2 Scope 2. building other and heating ,cooling in used electricity based-Location the both follow Calculations .operations the by recommended as methods based-Market and .activities operational from emissions relatedelectricity of view nuanced a providing ,Protocol GHG

reached emissions GHG total s'Company the 2023, In a ,initiatives sustainability s'AFI to Due .e2CO tons 27,061 decrease 24% a and emissions total the in 12% of reduction to 2021 from achieved been have intensity emissions in occurred emissions total in reduction 5% a which of 2023, efforts continuous to attributed 2023, and 2022 between .strategies reduction-emission and efficiency energy in

increase marginal a showed emissions 1 Scope While 2023, and 2021 from fleet vehicle expanded an to due 4below graphs the in illustrated as total s'Company the , square per emissions as measured — intensity emissions This .trend downward its continued — area property of meter efficiency energy s'AFI of impact the underscores decrease the despite emissions reduced to led which ,measures .footprint operational growing

,initiatives sustainability s'AFI to Due emissions total the in 12% of reduction a intensity emissions in decrease 24% a and 2023 to 2021 from achieved been have

Environment

^.gas natural and diesel ,gasoline includes sources Fuel 3

Change Climate

emissions its expand to is aim s'AFI related-energy all cover to analysis thereby ,comprehensively activities alignment and transparency improving standards sustainability global with

(e2co kg (Emissions GHG

(2m/e2co kg (Intensity - GHG Total

based Market - Intensity 2 Scope | Intensity - 1 Scope based Market - Intensity GHG Total

Environment

Building Sustainable

selection material Sustainable 1.

a with materials building of use the prioritizes AFI social or economic ,environmental positive proven materials selecting includes This .impact cycle-life by accompanied those or content recycled with ensuring ,declarations product environmental reduced a have processes construction our that .footprint environmental

materials emitting-Low 2.

safeguard and quality air indoor protect To .properties its in materials emittinglow uses AFI ,occupants building of health the

and technologies efficient-Energy 3. Design

efficient-energy incorporate projects s'AFI construction its into designs and technologies a with ,phase design initial the from projects certification LEED achieving on emphasis strong (nZEB (Building Energy Zero near meeting and certified-LEED with Collaborating .standards performance energy authorized and designers the that ensures Company the ,consultants possible highest the achieves design s'building buildings new all and ,areas sustainability in scores aligns renovations major undergoing those and focusing ,compliance nZEB for regulations EU with carbon on and consumption energy total on both .emissions

its across practices sustainability integrating to committed is AFI building ongoing to construction and planning from — projects property environmental leading with compliance ensuring By .management actively Company the ,certifications BREEAM and LEED as such ,standards to technologies efficient-energy and practices sustainable incorporates .sustainability term-long to contribute and impact environmental minimize :include practices building sustainable Key

Highlights ESG 2023

Environment

Building Sustainable

activities Commissioning 4.

mance for per - high maintain To independent engages AFI ,standards the by certified ,experts experienced and fundamental both conduct to ,authorities of commissioning enhanced and and plumbing ,electrical ,mechanical approach This .systems energy renewable and construction ,design the that ensures ,energy our meet building the of operation and quality environmental indoor ,water the to contributing ,standards durability efficiency and sustainability term-long .projects our of

demolition and Construction 5. management waste

consultants sustainability with works AFI and develop to contractors and plans management waste implement ,demolition and construction for at for goals diversion waste setting aligns AFI .streams material five least industry with practices construction its ,standards European and practices best proportion significant a divert to aiming thus ,landfills from waste construction of principles economy circular supporting .impacts environmental minimizing and

control sedimentation and Erosion 6.

erosion implements AFI ,practices best with line In pollution limit to measures control sedimentation and local protects plan This .activities construction from ,erosion soil managing effectively by ecosystems .dust airborne and sedimentation waterway

management quality air Indoor 7.

management) IAQ (Quality Air Indoor an implements AFI construction both of being-well the ensure to plan is plan This .occupants building future and workers associated issues quality air indoor minimize to designed fostering ,activities renovation and construction with .construction-post environment indoor healthy a

Environment

Promoting – WELL Certifiably 8. being-well and health

sustainable fostering to addition In safety ,health the prioritizes AFI ,buildings within occupants all of being-well and Safety-Health WELL The .properties its International the by developed ,Rating a as serves ,)IWBI (Institute Building WELL evaluates that system based-performance environment built the of features critical ,being-well and health human impact that ,lighting ,water ,quality air including comfort ,activity physical ,nourishment .support health mental and

management building Ongoing 9.

incorporates AFI ,construction Beyond LED as such features saving-energy insulation performance-high ,lighting enhance to systems HVAC advanced and operational its in efficiency energy management Waste .ties proper economy circular incorporate strategies during established are and principles audits Regular .phase construction the operation our Through conducted are ,practices waste optimize and assess to local with compliance ensuring .reducing and regulations

conducts AFI thorough environmental assessments of mitigation potential any local on impacts biodiversity

biodiversity and impact Environmental10. assessments

urban in located are projects our of most Though environmental thorough conducts AFI ,areas on impacts potential any mitigate to assessments project each that ensures This .biodiversity local stewardship environmental s'Company the with aligns .disruption ecological minimizes and goals

AFI ,practices building sustainable these Through environmental to dedication its demonstrates meet only not that properties creating ,responsibility contribute also but ,standards performance-high and communities the of being-well the to positively .operates it which in ecosystems

Environment

Building Sustainable

building sustainable to commitment s'AFI its across projects in reflected is practices tailored are practices key the where ,portfolio operational and environmental specific meet to how illustrate examples following The .goals the into integrated been have principles these showcasing ,developments recent s'Company responsibility environmental to dedication our .efficiency operational and

portfolio office s'AFI – Romania 1.

exemplifies Romania in operation Our ,practices building sustainable s'AFI the and procurement local strategic through wellness and health to commitment a prioritized Company the 2023, In .standards of 50% sourcing by businesses local while suppliers local from materials all materials of 30% least at that ensuring

portfolio s'AFI across Implementation

incorporated projects its in used not approach This .content recycled impact environmental reduces only transportation minimizing by circular the supporting and emissions strengthens also but ,economy regional with relationships to contributing thereby ,suppliers the reducing and economy local the of footprint environmental overall .projects its we 2023, of as ,Furthermore s'AFI across Certification Safety-Health WELL the achieved have in portfolio office A Class entire seven encompassing ,Romania

.projects fice of quality-high AFI positions milestone This providing in frontrunner a as ,responsible environmentally ensuring ,spaces centered-people ,healthy a offer buildings its that tenants for environment productive to adhering By .alike visitors and Company the ,standards WELL to commitment its demonstrates sustainability to approach holistic a environmental beyond extends that supporting actively ,performance being-well mental and physical the .communities its of

Introduction

Highlights ESG 2023

Environment

Report ESG 2023 44 |

Building Sustainable

Israel 2.

building sustainable to dedication s'AFI Israeli the to adherence through practices which ,)5281 TSI (Standard Building Green responsibility environmental emphasizes In .process development the throughout s'Company the ,standard that with alignment 'projects its reduces actively Israel in operation recycled incorporating by footprint carbon .technologies savingenergy advanced implementing and materials

that ensure we ,practices these integrating By with comply only not Israel in buildings s'AFI support also but ,standards environmental .goals ESG broader s'company the

operation s'AFI actively Israel in its reduces carbon' projects by footprint incorporating materials recycled implementing and advanced saving-energy technologies

Introduction

Highlights ESG 2023

Environment

Building Sustainable

Karlin AFI – Republic Czech 3.

exemplifies Prague in complex office Karlin AFI The design sustainable to commitment s'Company the strategically Located .being-well occupant and and business thriving a of intersection the at combines building office this ,area residential thinking-forward with excellence architectural :as such ,features sustainability

harvesting Rainwater – initiatives Sustainability covered -plant the for irrigation support systems stations charging vehicle electric while façade sustainable promote garage underground the in .transportation
holds Karlin AFI – certification building Green reflecting ,certification" Excellent BREEAM "the energy ,sustainability in standards high its .responsibility environmental and efficiency
square 1,400 Approximately – design Green by covered is facade s'building the of meters to selected carefully ,panels plants living 624 enhancing ,microclimate local the to adapt .aesthetics and quality air
optimize blinds Automated – systems Smart provide flaps openable while light natural on reliance reducing ,ventilation natural .cooling mechanical and lighting artificial
features design Inclusive – Accessibility and elevators ,restrooms accessible include disabled the for spaces parking designated .all for accessibility ensuring ,individuals

Introduction

Highlights ESG 2023

Environment

Building Sustainable

Zlota Home AFI – Poland 4.

residential distinguished a is Złota Home AFI ,Warsaw of heart the in situated development for apartments restored elegantly offering significant of building a in rental term-long renowned the in Located .value historical to back dating tenement Krongold Wolf of example prime a is Złota Home AFI 1899, harmoniously architecture Renaissance-Neo .practices sustainability modern with combined :include features sustainable Key

meticulously been has façade Renaissance-Neo s'building The – restoration Historical● architectural iconic preserving ,restored figures sculpted intricate including ,features restoration This .frescoes wall detailed and building the of integrity historical the enhances .heritage cultural its respecting while

Złota Home AFI – integration Modern● tenement historic the blends seamlessly .section modern ,constructed newly a with not new and old of integration This also but ,functionality enhances only versatility architectural the showcases .project the of

character original of Preservation traditional including ,details Historical decorative unique and stoves tiled preserved carefully been have ,elements authentic maintaining ,restored and .design original s'building the of charm
The – practices building Sustainable building green incorporates restoration efficient-energy as such ,practices were which ,windows These .windows friendly-eco using manufactured paints based-water utilize ,technologies reducing ,materials certified-FSC and improve and impact environmental .performance thermal
AFI – certification building Green BREEAM pursuing actively is Złota Home an achieve to aiming ,certification certification This 2025. by level Excellent to dedication s'AFI underscores effort commitment and development sustainable .standards environmental high to

pursuing actively is Złota Home achieve to aiming ,certification BREEAM 2025 by level Excellent an

Highlights ESG 2023

Environment

Use Water Wastewater and Management

sustainability its of part as use water efficient and conservation water prioritizes AFI support efforts These .practices management water implementing ,strategy to contribute as well as ,compliance regulatory and stewardship environmental and LEED as such ,standards global with aligned certifications environmental key :initiatives s'Company the outlines approach structured following The .BREEAM

Compliance and monitoring quality Water 1.

monitoring water s'AFI program monitoring quality Water accredited by analysis and sampling regular includes program ensures This .parameters quality water assess to laboratories properties its within resources water of quality the that .environment the safeguards and standards regulatory meets
regulatory to adheres AFI – reporting and Compliance quality and usage water to related requirements regularly by transparency maintains and ,management .authorities relevant to performance its reporting

strategies conservation Water 2.

includes strategy landscaping s'AFI – conservation Outdoor as ,vegetation adaptive and native ,tolerant-drought using reduce to systems irrigation drip efficient highly as well new all across 50% least at by usage water potable landscaping our that ensures approach This .developments resource and sustainable environmentally both are efforts ,Additionally .standards aesthetic maintaining while efficient and capture to systems harvesting rainwater implement we .uses potable-non other and irrigation for rainwater utilize
saving-water integrates AFI – efficiency water Indoor ,showerheads and faucets ,toilets flow-low as such ,fixtures indoor reducing significantly ,projects active and new in .functionality compromising without usage water
systems irrigation Outdoor – systems irrigation Smart responsive-weather ,automated with equipped are time-real on based use water adjusts that technology and roots plant to precisely water directs ,conditions wastage water reducing ,runoff and evaporation reduces .efficiency resource optimizing and

Highlights ESG 2023

Environment

Management Wastewater and Use Water

management water Smart and Monitoring 3.

metering Advanced – integration BMS and metering Smart System Management Building s'AFI to connected systems allowing ,usage water of monitoring time-real enable) BMS( implementation and inefficiencies of identification timely for lifecycle the throughout measures saving-water additional of .properties the of
regular conducts AFI maintenance and detection Leak promptly to systems irrigation and plumbing of inspections infrastructure the ensuring ,issues leaks address and detect maintenance proactive This .sustainable and efficient remains resource supports and wastage water minimizes approach .efforts conservation

site-on integrates AFI treatment wastewater during solutions manage to construction wastewater treat and reducing ,effectively municipal on reliance facilitating and systems and recycling the purposes potablenon for water of reuse

maintenance external for practices Sustainable 4.
- tolerant-drought selects AFI – mulching and landscaping efficient-Water to bases plant around mulch applies and climates local to adapted plants .moisture soil maintain and evaporation water minimize
- mornings early for scheduled is Irrigation – schedules watering Optimized .effectively water conserving ,evaporation reduce to evenings late or

treatment wastewater site-On 5.

wastewater site-on integrates AFI – systems treatment Wastewater● wastewater treat and manage to construction during solutions treatment the facilitating and systems municipal on reliance reducing ,effectively reduces approach This .purposes potable-non for water of reuse and recycling .circularity resource supports and systems water municipal on impact the

Environment

and conservation water to approach s'AFI on Building reflects that data recent highlight to essential s'it ,management .use resource on impact its and activity increased both

5consumption water 2023, In cubic 339 was areas public in rise This 2021. to compared increase 30% a representing ,meters ,activities operational in increase 15% a to attributed largely is intensity consumption water the influenced has that factor a of importance the underscore metrics These .area property per manage to efficiency water in initiatives ongoing s'Company the .operations expanding amid sustainably resources

Consumption Water

Intensity Consumption Water | Consumption Water

(³

m (Comsumption

		Introduction
		2023 ESG Highlights
		About AFI
		Environment
0.45		Social
		Corporate Governance
0.35	Int en sit y	GRI index
0.25	m ( m³/ 2 (
0.15

Management Wastewater and Use Water

Management Waste Procedures Recycling and

waste sustainable prioritizes AFI waste reduce to striving ,management rates recycling increase ,generation This .efficiency resource promote and waste responsible to commitment economy circular with aligns management are resources that ensuring ,principles is impact environmental and optimized .minimized

Resource and economy Circular 1. optimization

economy circular integrates AFI management waste its into principles and reusing ,reducing by practices .possible wherever resources recycling :include initiatives Key

waste demolition and Construction● management Waste – management n o d e t n e m e l p m i e r a s n a l p material facilitate to sites construction diversion and recycling ,separation that ensures This .landfills from waste demolition and construction supporting ,responsibly managed is reducing and recovery resource .impact environmental

locally and Recycled – Reuse and efficiency Material .projects construction in prioritized are materials sourced minimizing and content recycled with materials selecting By environmental reduces AFI ,transportation distance-long .economies local supports and footprint
implement buildings Office – reduction waste Operational resource support to programs recycling and reduction waste .waste landfill decrease and recovery

Recycled locally and materials sourced prioritized are construction in projects

Environment

Procedures Recycling and Management Waste

operations building in management Waste 2.

:practices handling waste sustainable foster and waste generatedtenant reduce to measures proactive takes AFI ,properties active managing In

materials recyclable for areas Dedicated separation Waste and Recycling and tenants for access convenient facilitating ,buildings within provided are .teams management waste
for place in are procedures Proper – management waste Hazardous and batteries as such ,waste hazardous of disposing and storing ,collecting and regulations safety with compliance ensures This .devices electronic .risks environmental reduces
waste in tenants involves actively AFI Support and engagement Tenant on-hands ,procedures and policies clear through programs management Recycling .department operational the from support continuous and training with align tenants help assistance site-on and guidelines visible ,programs .goals sustainability s'Company the

Green and practices construction Sustainable 3. certifications

embedded is approach management waste sustainable s'AFI :practices construction its within

Sustainability – construction in management waste Solid● for plans management waste solid develop consultants .projects construction

Continuous and compliance ,Monitoring 4. improvement

AFI ,objectives sustainability its with alignment ensure To to audits waste external and internal regular conducts :practices management waste refine and assess

audits Waste – analysis Data and audits Internal providing ,inefficiencies and streams waste major identify sorting waste to adjustments drive that insights actionable .efforts recycling and protocols
findings Audit – Engagement and training Employee best emphasizing ,programs training employee guide .recycling and reduction waste in practices
reporting Transparent and compliance Regulatory waste regarding regulations local with complies AFI– and transparently data waste reporting ,management adherence ensuring ,authorities relevant to consistently .standards environmental to

recyclable for areas Dedicated within provided are materials convenient facilitating ,buildings waste and tenants for access teams management

Environment

practices ethical to Commitment 1.

Responsible Chain Supply

with operate who suppliers and contractors with works AFI and laws applicable all with compliance and fairness ,integrity .regulations

responsibility climate and Environmental 2.

its with align who partners of selection the prioritizes AFI subcontractors and suppliers that ensuring ,goals sustainability .requirements related-climate and environmental the meet

prequalification supplier and Contractor 3.

potential evaluate to process prequalification a developed has AFI Key .phase tendering the during suppliers and contractors :include process this of components

comprehensive of Submission review Documentation● :as such ,documentation
.policies labor and ,safety and health ,Environmental) a

environmental for 14001 ISO .,g.e (certifications Relevant) b .(systems management

and environmental in performance of records Historical) c .management safety

performance of Verification – Recommendations and References● .clients previous from recommendations and references through

monitoring Compliance and obligations Contractual 4.

enforce to contracts in clauses performance detailed includes AFI :specify clauses These .standards relevant all with compliance and ,safety and health ,environmental to adherence Mandatory .regulations labor

and accountability ensure to compliance-non for Penalties .improvement continuous promote

,chain supply sustainable and responsible a fostering to committed is AFI ,ethical to adhere subcontractors and suppliers ,contractors that ensuring By .operations their throughout standards regulatory and environmental Company the ,collaboration promoting and criteria evaluation integrating and products its of impact climate and environmental the minimize to seeks .lifecycle their across services

Environment

recognizes AFI critical the human of role in capital its driving success business term-long its and sustainability goals

Social

Report ESG 2023 54 |

its driving in capital human of role critical the recognizes AFI a As .goals sustainability term-long its and success business s'Company the to central are employees ,group stakeholder key estate real the in position its maintain and value create to ability diverse ,inclusive an fostering to committed is AFI .industry ,physical the prioritizes that environment work equitable and .workforce its of being-well professional and emotional

human promoting and upholding to dedicated is Company The international with aligning ,operations its all across rights AFI .violations any prevent to regulations local and standards rights fundamental their afforded are employees all that ensures .dignity and fairness ,respect with treated are and

Capital Human

comprehensive a established has Company The focuses that management capital human to approach :pillars following the on

Development Employee Engagement and

growth professional the fostering to committed is AFI its that recognizing ,workforce its of engagement and s'Company the achieving to central are employees continuous supports AFI .objectives strategic tailored through employees its of growth professional career and opportunities mentorship ,programs training .excellence of culture a creating ,initiatives advancement

provided Company the 2023, In 1 employee of hours ,408 enhancement skill continuous ensuring ,training hold managers of 97% ,Notably .workforce the across emphasis the underscoring ,degree academic an .roles leadership within attainment educational on degrees s'master 21 subsidized AFI ,Additionally and 2023, in employees for degrees s'bachelor 4 term-long in investment its demonstrating further .growth employee

a allocated Company the ,initiatives these support To employees enabling ,budget training annual dedicated seminars specialized ,certifications in participate to enhances approach This .courses language and s'AFI with aligns also and capabilities individual excellence of culture a fostering of vision strategic .learning continuous and

1 ,408 of hours employee training

97 % managers of hold academic an degree

AFI for subsidized :employees

21 s'master

4 degrees s'bachelor degrees

Social

Capital Human

	Managers ( academic degree holders )	Managers ( -non degree holders )	Total	Degree holders a as percentage of managers	Employees ( degree holders )	Employees ( -non degree holders )	Total	Degree holders a as percentage of employees
2021	53	1	54	98%	111	71	182	61%
2022	56	1	57	98%	113	82	195	58%
2023	72	2	74	97%	152	106	258	59%

individual under working all ,employees 354 of total a With Company the ,term indefinite an for typically ,agreements internal its with align practices employment its that ensures s'AFI of professionalism The .procedures and policies Company the enabling ,advantage distinct a offers employees its market ,opportunities business identify effectively to .position competitive strong a maintain and properties

,performance enhance and workforce its motivate further To incentive and compensation several established has AFI on based bonuses annual includes These .methods based-leasing /sales and ,evaluations performance its in investing By .personnel leasing /sales for incentives commitment its reinforces Company the ,capital human and development professional ,engagement employee to .success organizational term-long

hours training Employee

Introduction

Highlights ESG 2023

Social

Inclusion and Diversity

fostering to committed deeply is AFI its of levels all on inclusion and diversity and diverse a that recognizing ,operations creating for essential is workplace inclusive The .culture organizational thriving a ensure to strives management s'Company feel backgrounds all from employees that .respected and valued

rank by employees of Distribution

management level-First | management Middle | management Senior employees other All|

women represented 51% workforce s'AFI of

31% executive of leadership were positions women by held

,workforce s'AFI of 51% represented women 2023, In gender promoting to dedication s'Company the evidencing positions leadership executive of 31% ,Moreover .diversity to commitment s'AFI underscoring ,women by held were management senior in representation female increasing transparent and fair by complemented are efforts These .roles pool diverse a attract to designed practices recruitment .performance organizational enhance and candidates of

Introduction

Highlights ESG 2023

Social

Capital Human

discrimination toward policy tolerance-zero a maintains Company The are Employees .laws applicable the with accordance in ,harassment and To .witness they behavior inappropriate of form any report to encouraged and harassment sexual a appointed has AFI ,commitment this reinforce accessible an provides and ,law by required as ,officer prevention bullying policy corporate A .needed when support seek to employees for channel are rights' employees ensure to place in is harassment sexual against .principles s'Company the with accordance in protected

council General a appointed has AFI ,efforts inclusivity its further To training oversees officer The .officer accessibility s'Company the as and issues accessibility about awareness raise to designed programs services accessible delivering for tools practical with employees provide .visitors and tenants ,clients to

commitment unwavering its demonstrates AFI ,initiatives these Through perspectives diverse values that environment inclusive an creating to .employees all for belonging of sense a fosters and

gender by Employees

2023 2022 2021 Women | Men 49% 52% 51% 51% 48% 49% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0

Introduction

Highlights ESG 2023

Social

Capital Human

opportunity Equal

equitable and inclusive an fostering to committed is AFI all at provided are opportunities equal where workplace prohibits strictly Company The .employment of levels privacy that ensures and kind any of discrimination handled information personal with ,respected are rights .regulations and laws applicable with compliance in

Company The strictly prohibits discrimination and kind any of that ensures rights privacy ,respected are personal with information in handled compliance applicable with and laws regulations

appointed has AFI ,principles these uphold To for responsible officer compliance dedicated a employment relevant to adherence overseeing are Employees .policies company and laws through concerns their voice to encouraged that procedure whistleblower confidential a compliance the to reporting anonymous allows reported All .auditor internal the and officer and ,investigated thoroughly are concerns and CEO the to communicated are findings ,Notably .Committee Audit the of Chair the .filed were complaints no 2023, in

Highlights ESG 2023

Social

Report ESG 2023 59 |

Capital Human

compensation equitable that recognizes AFI inclusion ,diversity promoting for essential is s'Company The .meritocracy of culture a and by guided is framework compensation ,experience ,skills including ,criteria objective ,responsibilities job ,performance ,competencies .dynamics market and contributions

practices compensation ,fairness ensure To address and identify to reviewed regularly are ,process review annual An .disparities potential ,management of levels multiple by conducted alignment ensure to practices pay evaluates and values core ,objectives strategic s'AFI with .equity to commitment

to dedicated is leadership s'Company The organizational all across equity pay achieving inclusivity to commitment its reinforcing ,levels empowering and supportive a of creation the and .employees all for workplace

,fairness ensure To compensation are practices reviewed regularly and identify to potential address disparities

equitable and Fair compensation

Highlights ESG 2023

Social

Capital Human

welfare Employee

,employees its of being-well the prioritizes AFI a fostering in role critical its recognizing sustainable and productive ,supportive targeted Through .environment work aims Company the ,benefits and initiatives job enhance ,stress workplace reduce to care of culture a promote and ,satisfaction integral are efforts These .inclusion and ESG its advancing to commitment s'AFI to mental ,physical the ensuring by objectives .workforce its of being-well emotional and

in significantly invests Company The employee enhance to designed programs and physical both addressing ,being-well :include initiatives Key .health emotional

opportunities development Professional●
career and learning Continuous– contribute initiatives advancement and purpose of sense' employees to engagement their reinforcing ,satisfaction .mission s'AFI to connection and
such areas in Training – training skills Soft management stress ,communication as emotional supports teamwork and interpersonal positive and resilience thriving a for vital are which ,relationships .environment work
AFI – activities social and Wellness holistic promoting to committed is variety a through being-well employee

work flexible including ,initiatives of work oriented-wellness a ,arrangements and relaxation designated ,environment efforts These .areas interaction social between balance healthy a foster to aim personal and responsibilities professional .fulfillment

ESG its with alignment in programs beingwell its expand to planning actively is AFI the that understanding ,commitments employees of health mental and physical sustainability advancing for also but ,beingwell personal their for only not essential is cultivating By .goals responsibility social and the ,resilience and care of environment an that workplace a create to aims Company .growth collective and individual both supports

Sustainable and Transportation commuting

to commitment strong a demonstrates AFI providing by practices commuting sustainable reducing at aimed initiatives and resources and emissions related-tation transpor options friendly environmentally encouraging :include measures Key .operations its across

cyclists for Support 1.

sustainable a as cycling promote To properties its equips AFI ,option commuting showers ,facilities parking bike dedicated with are amenities These .rooms changing and visitors and employees support to designed .vehicles personal to alternative friendlyeco and healthier a as cycling choose who

transit public with Integration 2.

located strategically are offices AFI Many and hubs transportation public major near access seamless facilitating ,paths bike This .options commuting sustainable to and vehicles private on reliance reduces .emissions carbon overall decrease helps supports actively Company the ,addition In reimbursing by usage transportation public further ,expenses transit for employees .options commuting emission-low incentivizing into initiatives transportation these embedding By actively Company the ,strategy sustainability its .economy carbon-low a to transition the supports to commitment s'AFI reflect also efforts These contributing and being-well employee improving

the of sustainability environmental the to .serves it communities

Introduction

Highlights ESG 2023

Social

Safety and Health Occupational

safety ,health the safeguarding to committed is AFI of areas all across employees its of being-well and comprehensive a maintains Company The .operation and health occupational manage to framework requirements legal to adhering ,)OHS (safety proactive This .practices best incorporating and a fostering to dedication s'AFI reflects approach .environment work sustainable and supportive ,safe

Introduction

Highlights ESG 2023

Social

and legislation with Compliance 1. standards

relevant all with compliance ensures AFI legislation safety and health occupational local by issued directives regulatory and that guarantees adherence This .authorities and compliant legally both are practices .practices best industry with aligned

Safety and Health Occupational 2. Committee or Manager) OHS(

Committee OHS or /and manager dedicated A reviews ,policies safety and health oversees safety that ensures and ,procedures workplace and implemented effectively are measures This .countries relevant the in maintained closely collaborates committee or /and manager and concerns safety address to employees with .improvement continuous promote

and audits safety Internal 3. Monitoring

to conducted are audits safety internal Annual compliance ensure and risks potential identify Safety & Health A .protocols established with ,activities related-safety all oversees manager monitor who supervisors trained by supported .site-on compliance

Prevention and assessment Risk 4.

identify to regularly conducted are assessments Risk These .workplace the in hazards potential mitigate and protection and prevention develop to used are assessments and reviews continually AFI .risks minimize to plans from feedback incorporating ,protocols safety its updates enhance to incidents past from learning and employees .measures safety

programs Awareness and Training 5.

employees to provided are programs training OHS Regular general as such topics of range wide a covering ,levels all at handling equipment ,response emergency ,safety workplace :include sessions training These .prevention risk and

.hires new for training specific-role and onboarding Initial●
the of nature the to tailored courses refresher Regular● .risks associated and work
stress and aid first as such ,courses Specialized● .management

mechanisms Response and reporting Incident 6.

response and reporting clear implemented has AFI .incidents safety and health occupational for procedures corrective ,investigation prompt ensure mechanisms These future prevent to feedback of integration the and actions compliance include channels Reporting .occurrences .systems audit internal and officers

s'AFI of elements Key framework safety and health occupational

Highlights ESG 2023

Social

Safety and Health Occupational

being-well employee Promoting

by safety and health occupational to commitment its extends AFI ,initiatives various through being-well employee promoting actively ,strain physical minimize to designs workplace ergonomic as such management stress ,classes sports .g.e (programs wellness relaxation designated and) activities building-team and workshops .being-well physical and mental support to zones

2023 Performance highlights

0.4 Recordable Total (TRIR (Rate Incident

2.03 Recordable Total Frequency Injury (TRIFR (Rate

Highlights ESG 2023

Social

Tenants and Customers

2,700 over of base customer diverse a serves AFI business and individuals private including ,tenants and mall shopping ,residential across corporations committed is Company The .projects building office

its with environment collaborative a fostering to their improve to aiming ,customers and tenants and sustainability promoting while ,experience .use resource responsible

Highlights ESG 2023

Social

support to measures of range a implements AFI reducing and practices sustainable adopting in tenants :include initiatives Key .impacts environmental

meters Smart monitoring resource time-Real 1. time-real enable to installed are sensors and ,consumption water and energy of tracking decisions informed make to tenants empowering .costs and usage reduce to
controllers Intelligent – systems HVAC Efficient 2. by use energy optimize systems HVAC for .efficiency resource enhancing ,conditions timereal on based cooling and heating adjusting
procedures Recycling and management Waste 3. procedural detailed to access receive Tenants– Sorting and Collection Waste the as such resources reduced to contributed has which ,Procedure management waste lower and waste municipal training regular conducts AFI ,Additionally .costs reduction waste on tenants educate to sessions .practices best recycling and
Bicycle – commuting sustainable Promoting 4. changing and showers ,facilities parking friendly-eco encourage to provided are rooms available are stations charging EV .commuting to transition the support to properties across .transportation emission-low
Websites – accessibility transportation Public 5. include buildings office and centers commercial for and information transportation public detailed travel sustainable of use the encourage to maps .options

metrics performance Environmental 6.

water and energy monitors AFI– ,generation waste as well as ,consumption Management Building integrated through These .reporting regular and) BMS (Systems to improvements ongoing inform metrics .practices sustainability

s'AFI certification wellness and Health 7. WELL under certified are buildings office emphasizing ,standards Safety-Health healthier creating to commitment a .tenants for environments
Engagement and support Tenant 8. to services consultancy provides AFI sustainability implementing on tenants educational alongside ,measures communication and shops work about awareness foster to campaigns .stewardship environmental

Enhancement region by

and overviews Monthly – Republic Czech focus tenants for sessions training regular .recycling and management waste on
bicycle feature Properties Romania air 5M5-G ,showers with facilities parking and ,removal virus for filters purification on information transport public detailed .websites
public and stops bus Dedicated Bulgaria ,available are instructions transportation .initiatives separation waste alongside
include plans Development Israel environmental measure to tools adopting to clients incentivizing and impacts Enhanced .practices sustainable adopt also are systems monitoring quality air .consideration under

customers and tenants for initiatives Sustainability

Highlights ESG 2023

Social

Customers and Health Safety

Environmental and quality Air 3. monitoring

centers shopping and buildings office s'AFI systems purification air advanced feature neutralize to) 8-10 MERV (filters 5M5-G with such viruses including ,pathogens airborne sensors and meters Smart -19.COVID as energy ,quality air monitor continuously enabling ,consumption water and usage .needed when actions corrective immediate

maintenance Preventive 4.

maintenance preventive a employs AFI inspections regular includes that strategy This .deficiencies technical address to issues potential that ensures approach health impact they before resolved are .safety and

measures Accessibility 5.

equipping by inclusivity prioritizes AFI with elevators ,ramps with properties its ,impaired visually the for features special revolving for controls automated and access equal ensure measures These .doors with aligning ,visitors and tenants all for .inclusivity to commitment s'Company the

of safety and health the ensuring to committed is AFI ,centers shopping its across tenants and customers its Company The .properties other and buildings office management safety and health advanced integrates with aligning ,strategy operational its into practices .ESG in practices best and standards regulatory

management Safety framework

systems safety Comprehensive 1.

art-the-of-state with equipped are properties AFI ,systems address public including ,systems safety These .technologies detection fire and sprinklers align to updated and tested regularly are systems regulatory and advancements technological with for safety of levels highest the ensuring ,standards .occupants

sanitation and hygiene Enhanced 2. practices

strengthened AFI ,pandemic global the to response In disinfecting regularly by protocols sanitation its sanitizing hand providing and areas touch-high safeguarding ,properties its throughout stations .tenants and customers of being-well the

to committed is AFI and health the ensuring customers its of safety tenants and

Highlights ESG 2023

Social

Safety and Health Customers

and communication Safety 1. channels Feedback

with communication open fosters AFI various through customers and tenants including ,mechanisms feedback social ,addresses email dedicated reporting site-on and platforms media guidelines and signage Clear .systems of awareness ensure to provided are .protocols safety and health

Certifications Transparency and

Certifications Building Green 1.

that certifications hold properties AFI :safety and health emphasize

Certification Safety-Health WELL● air for protocols rigorous Recognizes emergency and sanitation ,quality .preparedness
Certifications BREEAM and LEED● s'AFI highlight certifications These ,safe maintaining to commitment .environments resilient and sustainable

metrics safety and Health 2.

undergo assets its of 100% ensures AFI is data Incident .inspections safety regular with ,reviewed and recorded meticulously address to policies to updates continuous .practices improve and risks emerging

open fosters AFI communication and tenants with through customers feedback various mechanisms

mechanism complaint Customer 2.

available are channels Multiple – system Reporting .concerns safety and health report to customers for
are Acknowledgments – Resolution and Response investigate teams safety and health and ,promptly issued .customers to feedback providing ,issues resolve and
customer from Data – Improvement and Monitoring health refine and trends identify to analyzed is feedback .strategies safety and

engagement customer and Tenant

Highlights ESG 2023

Social

Contributions Community Responsibility Corporate and

and impact social positive fostering to committed is AFI Through .operations its across engagement community meaningful and partnerships strategic ,initiatives targeted responsibility social its aligns Company the ,contributions ,inclusivity promoting ,objectives ESG core its with efforts .development local and sustainability

Introduction

Highlights ESG 2023

Social

Responsibility Corporate and Contributions Community

giving Charitable partnership Strategic and

to resources significant allocated AFI 2023, In Notable .programs and partnerships impactful :include partnerships

(Romania (Association" Incubator Social The "1. through ,AFI ,association this with Partnering– ,program") Plan Life" ("ă¸Viat de Plan "the transitioning individuals young 24 supported ,housing providing by care institutional from .counseling psychological and placements job
Association" children for homes and Hopes "2. "Scholarships DAR "the Sponsored) – Romania( individuals young 15 benefiting ,program personal and academic their supporting by .development
House Hospice" ("ei¸Sperant Casa Hospice "3. care palliative Funded) – Romania") (Hope of for support compassionate offering ,services .families their and patients ill terminally
support stakeholder and resilience Israel AFI 4. ,social to commitment its demonstrated AFI responsibility environmental and business Israeli the and stakeholders its supporting by ,contributions charitable through community October the following crisis national the during .outbreak war 2023, 7,

series a launched Company the ,Additionally societal strengthen to initiatives targeted of .need in those with engage directly and resilience :included initiatives These

actively AFI its involves social in tenants responsibility efforts

communities displaced and soldiers Supporting

medical as such ,supplies essential of Donations– residents displaced to ,toiletries and food ,equipment .soldiers and kibbutzim of

Provision – education for accessibility Enhancing Gaza the near communities in children to laptops of .Strip

– personnel frontline to assistance Immediate active on soldiers to chargers phone of Distribution proactive s'AFI reflect contributions These .duty and needs societal urgent addressing to approach .society Israeli within solidarity fostering

employee and Tenant involvement

initiatives social in engagement Tenant 1.

responsibility social in tenants its involves actively AFI community in participation encouraging ,efforts tournaments sports interschool as such programs prizes contribute also Tenants .events charity and overall the amplifying ,initiatives to support and .impact social

program Loyalty and recognition Employee 2.

(Romania (Center Shopping ti¸Ploies AFI outstanding Recognized – Month the of Employee promoting ,cards gift with members staff retail .culture workplace positive a and motivation
exclusive Offered) Romania (card Club AFI reinforcing ,employee to outlets foods at discounts .satisfaction community

Highlights ESG 2023

Social

is AFI committed strong to ethical and corporate Governance ,practices outlined as detail in below

Governance Corporate

assessment Compliance

external an with collaboration in Assessment Compliance a conducted AFI 2023, In evaluated ,requirements regulatory mapped review comprehensive This .firm law .recommendations actionable provided and ,procedures work internal with alignment Company the ,Department Legal the across collaboration involved process The .compliance to approach holistic a ensuring ,Department Finance the and Secretariat

Company the that ensuring for responsible officer compliance a appointed has AFI on reporting for responsible is and regulations and laws relevant all to adheres .subject this

program compliance Internal

maintains AFI ,Exchange Stock Aviv Tel the on company listed a As of objectives primary The .program compliance internal an standards establish to are program compliance internal the employees s'Company the for principles guiding provide and legislation with compliance to relation in management and .laws corporate other and securities s'AFI of trade the regarding

evolving the with align to updated continuously is program This oversees officer compliance internal The .environment legal and integrity of principles key reinforcing ,implementation its :include program the of elements Key .accountability

by supervised is program The – supervision Compliance ,Together .Officer Enforcement designated a and CEO s'AFI ,requirements legal of application consistent ensure they the oversee and policies internal to adherence monitor .matters related-compliance of reporting proper
a provides program The Guidelines and Standards in conduct management and employee guiding for framework preventing as such ,principles key emphasizes It .areas certain transactions' parties interested with dealing ,trading insider .proactively deficiencies potential addressing and
identifying for procedures Clear – mechanisms Reporting including ,outlined are gaps compliance addressing and potential and deficiencies reporting for mechanisms and transparency enhance measures These .violations .organization the within accountability

in changes address to reviews periodic undergoes program The .practices Governance evolving and environment regulatory the

71 | Report ESG 2023

Policies Internal Complianceand

Highlights ESG 2023

Corporate Governance

Policies Internal Complianceand

Conduct of Code

its of cornerstone a as serves Conduct of Code s'AFI and fairness ,integrity emphasizing ,culture corporate provides It .environment work positive a of creation the principles and values of framework comprehensive a ,committed are managers and employees all which to and ethical to dedication s'Company the reinforcing .practices business responsible

:include Conduct of Code the of features Key

are Employees – standards legal to Adherence applicable with compliance full in act to required .policies company internal and regulations ,laws
guidelines Clear – management interest of Conflict potential address and disclose ,identify to place in are .trust and transparency ensuring ,interest of conflicts
The – measures corruption and bribery-Anti the and corruption ,bribery prohibits explicitly code fairness promoting ,benefits personal of acceptance .dealings business all in integrity and
are Employees – protection information and Asset the maintain ,assets company safeguard to obligated adhere and information sensitive of confidentiality .regulations trading insider to
respectful a fosters code The values Workplace encouraging ,environment work inclusive and .employees among respect mutual and collaboration

,culture corporate its of cornerstone a as serves Conduct of Code s'AFI environment work positive a of creation the and fairness ,integrity emphasizing

Introduction

Highlights ESG 2023

Corporate Governance

Report ESG 2023 73 |

Board Directors of

Structure and Composition

.Ltd Properties AFI of Directors of Board The academic diverse with members five comprises broad a ensuring ,backgrounds professional and .perspectives and expertise of spectrum

corporate the ,Law Companies Israeli the to Pursuant .Ltd Properties AFI of framework Governance including ,mechanisms control various incorporates three appointed has AFI – directors Independent ● :following the

finance and accounting with directors external independent provide directors These .expertise Governance to adherence ensuring ,supervision .practices best
appointed-shareholder and directors Regular one ,directors regular two has AFI – directors of Board the of Chairman the as serves whom of interests the represent directors These .Directors .stakeholders its and Company the of

approved are directors external of Appointments ensure to meeting general s'Company the by are directors independent and Regular .impartiality subsequently and Board the by appointed initially

Highlights ESG 2023

Corporate Governance

Directors of Board

Board the of Committees

Board s'AFI of capabilities Governance the enhance To members with ,established are committees ,Directors of Chairperson the from recommendations on based appointed predominantly are committees These .Board the of uphold to directors external independent of composed .making-decision unbiased ensure and integrity

committees specialized three established has Company The various on advice strategic provide and supervise to :aspects management

committee statements Financial 1.

and transparency ,accuracy the ensuring for Responsible responsibilities Key .reports financial s'AFI of compliance :include

alignment confirm to statements financial Reviewing● .standards accounting with
with coordinating and controls internal Overseeing● .auditors external
.risks financial mitigating and Assessing●

maintaining in role critical a plays committee This accurate receive stakeholders ensuring and transparency .information financial reliable and

committee Audit 2.

ensure to is Committee Audit the of role primary The ethical and legal with compliance in operates AFI that the safeguard To .law Israeli by mandated as ,standards ,Committee Audit the of impartiality and independence are members its of majority a) i (:that requires law the their or shareholders controlling) ii (,directors external the in members as serving from prohibited are relatives parties interested of participation) iii (and ,Committee .limited is meetings s'Committee the in

regulate to is Committee Audit the of function key A ,parties interested involving transactions supervise and Governance with compliance and transparency ensuring .practices best

committee Investment 3.

significant approving and reviewing with Tasked the evaluates committee this ,investments and transactions associated and implications financial ,alignment strategic :are objectives primary Its .deals proposed of risks

financial major in interests s'AFI Safeguarding● .commitments
with compliance and Governance proper Ensuring● .requirements regulatory
through growth strategic and sustainable Promoting● .making-decision informed

this of member key a is Board the of Chairperson The .importance strategic its reflecting ,committee

activities Board 2023

committees its and Directors of Board the 2023, In engagement active their underscoring ,times 25 convened .supervision strategic and Governance in

policy Compensation

procedure compensation structured a implemented has AFI External .fairness and transparency ensuring ,directors for .quarterly disbursed ,fee annual an receive directors

Highlights ESG 2023

Corporate Governance

based-risk ,structured a employs AFI assess ,identify proactively to approach to related risks potential mitigate and comprehensive This .operations its the with alignment ensures framework regulatory ,goals strategic s'Company .objectives sustainability and requirements

process assessment Risk

an by conducted are assessments Risk leveraging ,auditor external independent :of review thorough a

areas strategic and Operational organizational ,activities s'AFI Evaluating .framework ownership and structure
Reviewing compliance Regulatory environments regulatory and legal the .operates AFI where jurisdictions all in
Analyzing – mechanisms Control and gaps identify to controls existing .improvement for areas
Including risks Environmental climate to related risks of assessments and management resource ,change .compliance environmental

Risk Management

making-decision into Integration

are assessment risk the of findings The management during discussion for presented focus discussions These .meetings board and :on

.factors risk prioritizing and Identifying●
mitigation tailored Developing● .strategies
in gaps identified any Closing● .operations or controls ,compliance

foundation the is process this of outcome The ensuring ,Plan Audit Internal Annual s'AFI for risks managing to approach systematic a .operations all across

supervision Governance

annual an conducts Directors of Board The with associated factors risk the of review supervision its of part as activities s'AFI Officer Financial Chief The .responsibilities responsible executive designated the is) CFO( and efforts management risk coordinating for mitigation risk of integration the ensuring .operations s'Company the into strategies

a employs AFI approach basedrisk ,structured proactively to and assess ,identify potential mitigate its to related risks operations

Highlights ESG 2023

Corporate Governance

conducting to commitment its in unwavering is AFI in and fairness ,integrity with activities business all .regulations and laws applicable with compliance full practices business ethical prioritizes Company The with aligning ,operations its of cornerstone a as .objectives term-long and values core its

practices ethical to Commitment

achieve to ,purpose clear a with operates AFI ethical to adhering while growth sustainable with works actively Company The .standards and fairness ,integrity demonstrate who partners with alignment ensuring ,law the with compliance strengthens approach This .principles ethical s'AFI and reliable a as reputation s'Company the its to contributes and organization trustworthy .success and stability term-long

unethical on policy tolerance-Zero conduct

towards policy tolerance-zero a enforces AFI ,corruption ,bribery including ,behavior unethical policy This .misconduct of forms other and fraud ,employees ,executives all to universally applies with interacting stakeholders and partners business seeks AFI ,stance this maintaining By .Company the ,tenants and customers its of trust the uphold to while ,employees and suppliers ,partners financing .accountability and integrity of culture a fostering

Ethics Business

principles ethical Core

a established has AFI ,Conduct of Code its on Based business its guide to principles ethical of framework :activities

.fairness with stakeholder all treats AFI Fairness these on based resolved are conflicts or disputes Any term-long s'Company the prioritizing while ,principles .interests
that ensures AFI – Transparency and Honesty public the and stakeholders to provided information .misrepresentation from free and truthful ,accurate is
to adheres strictly AFI – Prevention and Compliance ,regulations and laws corruption-anti and bribery-anti corporate its into principles these incorporating .framework Governance

improvement Continuous and Assessment

a conduct to expert external an engaged AFI 2023, In embezzlement and fraud of assessment comprehensive provided evaluation The .units operational all across risks controls internal s'Company the enhancing on insights commitment its reinforcing ,systems Governance and business ethical maintaining and risks mitigating to .operations

AFI ,operations its into conduct ethical embedding By sustainable to dedication its reinforces and risks mitigates fostering ,practices business responsible and growth .operations its across collaboration and trust

Highlights ESG 2023

Corporate Governance

,tenants ,employees its of security and privacy the safeguarding to committed is AFI protection data of importance the recognizing ,partners business and customers Company The .standards global with compliance maintaining and trust fostering in Protection Data General the including ,laws protection data and privacy to adheres ensuring ,regions operating its in regulations relevant other and) GDPR (Regulation .systems information its of integrity and confidentiality the

Cybersecurity and Protection Privacy

protection Privacy

protect to policies strict enforces AFI ,information sensitive and personal salary ,records medical including employee and details familial ,data limited is data such to Access .evaluations with accordance in ,only purposes relatedbusiness for personnel authorized to .policies internal and laws applicable is disclosure unauthorized or misuse Any subject violations with ,prohibited strictly .consequences legal and disciplinary to reviewed regularly are policies These evolving with align to updated and industry and requirements regulatory .practices best

Information and Cybersecurity security

of sophistication increasing the Given a implemented has AFI ,threats cyber under framework cybersecurity robust Information Chief the of management the is framework The .Officer Digital and with associated risks mitigate to designed other and breaches data ,cyberattacks ensuring ,vulnerabilities technological protecting and continuity business .interests stakeholder

Introduction

Highlights ESG 2023

Corporate Governance

strategy cybersecurity s'Company the of elements Key :include

risk Periodic – management risk Cybersecurity 1. form consultants external by conducted assessments .plan work systems information annual s'AFI of basis the ,vulnerabilities potential evaluate assessments These in investments guide and strategies response refine .measures cybersecurity

comprehensive A – plan response Incident 2. board the by approved ,plan response cyberattack and addressing for procedures outlines ,directors of data includes plan This .incidents security mitigating the in capabilities recovery ensure to systems backup .cyberattack a of event

:including ,technologies art-the-ofstate employs AFI – measures protective Advanced 3.

.information sensitive safeguard to encryption Data●
anomalies address and detect to systems Monitoring● .time-real in
.databases and systems computing for controls Security●
address and identify to testing Penetration● .vulnerabilities

Supervision and Governance

supervising in role active an plays Directors of Board s'AFI The .practices security information s'Company the including ,systems information for plan work annual evaluated and reviewed is ,initiatives cybersecurity risk and objectives strategic with alignment ensure to .priorities management

infrastructure security information its enhanced AFI 2023, In monitor to firms cybersecurity external with collaborating by .tests penetration conduct and protocols update ,systems effectiveness the validated consistently have audits Internal AFI although ,measures protective s'Company the of the eliminate completely can system no that acknowledges .technology of evolution rapid the given cyberattacks of risk

improvement continuous to Commitment

information and privacy its strengthening to dedicated is AFI in investments ongoing through frameworks security By .optimization process and training employee ,technology emerging to adapting and standards rigorous maintaining remain operations its that ensures Company the ,threats .commitments ESG its with aligned and ethical ,resilient

Corporate Governance

Compensation Executive

policy remuneration the of Principles

aligning for guidelines clear establishes policy remuneration The and performance s'Company the with compensation management :includes It .goals strategic

compensation links policy The – incentives driven-Performance emphasizing ,performance organizational and individual both to management risk s'AFI with alignment and creation value term-long .strategy
variable the ,accountability promote To – structure Balanced ,results business by influenced ,compensation of component striking ,management of levels higher at weight greater a carries .appetite risk and responsibility managerial between balance a

Supervision and Governance

ensure to review periodic to subject is policy remuneration The requirements regulatory ,conditions market evolving with alignment .objectives strategic s'AFI and

highlights Compensation 2023

recommendation the following ,Directors of Board the 2024, 19, March On for bonuses annual approved ,Committee Compensation the of of framework the under ,CEO the including ,officers senior several of recognition in awarded were bonuses These .plan bonus 2023 the while milestones organizational key achieving to contributions their .policy remuneration the of principles the to adhering

to approach oriented-performance and structured its Through to commitment its demonstrates AFI ,compensation executive .growth sustainable and fairness ,accountability of culture a fostering

equitable and transparency to commitment s'AFI with alignment In comprehensive a implemented Company the ,Governance responsible and fair ensure to designed 2023, in policy remuneration was policy This .management and directors its for compensation external and management s'AFI by collaboratively developed practices best global incorporating ,consultants compensation was policy The .objectives strategic s'Company the to tailored and Directors of Board ,Committee Audit s'AFI by approved subsequently .Meeting' Shareholders and

Highlights ESG 2023

Corporate Governance

report This s'AFI underscores to commitment

and sustainability creating in role its value term-long ,stakeholders for the and communities environment

global.afi@RoeyG | Manager Operations Group | Graif Roey :to inquiries direct Please

Report ESG s'AFI About

Properties AFI represents Report ESG This ,disclosure sustainability inaugural s'.Ltd activities ,policies s'Company the covering of period reporting the for impacts and 2023. 31, December to 2023, 1, January comprehensive a provides document The and social ,environmental s'AFI of overview aligning ,performance) ESG (Governance commitment strategic s'Company the with .transparency and growth sustainable to

s'AFI detail to structured is report The Governance and policies ,initiatives ESG and metrics the as well as ,mechanisms evaluate and guide to established targets the highlights section Each .progress and challenges ,achievements s'Company performance ESG advancing for strategies and qualitative by supported 2023, in .data quantitative

Report the of Scope

this in presented data environmental The consumption operational includes report encompassing ,control direct s'AFI within lease-post properties of areas common the from Excluded .tenants with agreements and consumption operational-pre are scope .tenants to directly supplied electricity

AFI encompasses report the ,Geographically ,Israel across operations s'.Ltd Properties ,Serbia ,Poland ,Republic Czech ,Romania stated explicitly unless ,Latvia and Bulgaria .otherwise

with prepared been has Report ESG This ,standards recognized globally to reference (GRI (Initiative Reporting Global the including is It .framework GRESB the and Standards leading of expectations the meet to designed industry with align and agencies rating ESG and accountability ensuring ,practices best .stakeholders among trust fostering

and Feedback Inquiries

and engagement stakeholder values AFI this to related questions or feedback welcomes .strategy ESG broader s'Company the or report

Corporate Governance

Tables Data ESG

Environmental

	Unit	2021	2022	2023

General
Property Area	Square meters	1,115,094	1,160,743	1,283,301
Fuels
Diesel	liter	52,426	56,600	49,275
Gasoline	liter	70,353	69,501	65,743
Natural gas	Kwh	22,160,704	17,771,941	19,863,263
Electricity
-Non renewable	kwh	52,681,491	49,337,013	53,733,997
Renewable	kwh	32,746,246	36,699,325	37,031,720
Total electricity consumption	kwh	85,427,738	86,036,339	90,765,717
Renewable share	%	38.3%	42.7%	40.8%
Electricity Intensity	kwh square/ meter	76.6	74.1	70.7
GHG Emissions
1 Scope	e2co kg	4,813,687	3,901,895	4,287,391
Scope - 2 Location	e2co kg	41,812,793	43,923,052	42,735,594
2 Scope Market - based	e2co kg	25,987,036	24,458,827	22,773,998
Total - GHG Location	e2co kg	46,626,480	47,824,947	47,022,985
Total GHG Market - based	e2co kg	30,800,724	28,360,721	27,061,389
Total - GHG Intensity - Location based	2co kg square/e meter	42	41	37
Total GHG Intensity Market - based	2co kg square/e meter	27.6	24.4	21.1
Water
Water Consumption	³m	262,784	308,738	339,016
Water Consumption Intensity	m square³/ meter	0.341	0.378	0.361

Corporate Governance

Social

Introduction

Highlights ESG 2023

index GRI

1: GRI Foundation 2021
Disclosure	Description	Chapter
2: GRI General Disclosures 2021
2-1	Organizational details	Company profile ● About AFI ●
2-2	Entities included the in organization s' sustainability reporting	About AFI ESG s' report ●
2-3	Reporting ,period frequency and contact point	About AFI ESG s' report ●
2-4	Restatements of information	Not relevant
2-5	External assurance	Not relevant
2-6	Activities value , chain and other business relationships	Stakeholder engagement ● AFI value s' chain ● Business ethics ●
2-7	Employees	Human capital ● Employee welfare ● ESG● data tables
2-9	Governance structure and composition	Board of directors ●
2-10	Nomination and selection the of highest governance body	Composition and structure ●
2-11	Chair the of highest governance body	Board of directors ●
2-12	Role the of highest governance in body overseeing the management of impacts	Committees the of Board ● Governance supervision ●
2-13	Delegation of responsibility for managing impacts	Compliance assessment ● Internal compliance program ● Governance supervision ●
2-14	Role the of highest governance in body sustainability reporting	Material topics for reporting ●
2-15	Conflicts of interest	of Code Conduct ● Business ethics ●
2-16	Communication of critical concerns	Committees the of Board ●

Introduction

Highlights ESG 2023

index GRI

2-19	Remuneration policies	Executive compensation ● Principles the of remuneration policy ●
2-20	Process to determine remuneration	Executive Compensation ●
2-22	Statement on sustainable development strategy	s'AFI commitment the to SDGs ●
2-23	Policy commitments	AFI core s' values ● of Code Conduct ●
2-24	Embedding policy commitments	Core ethical principles ●
2-25	Processes to remediate negative impacts	Environmental assessments and land development ●
2-26	Mechanisms for seeking advice and raising concerns	Equal opportunity ● Customer complaint mechanism ●
2-27	Compliance with laws and regulations	Compliance assessment ● Internal compliance program ●
2-29	Approach to stakeholder engagement	Stakeholder engagement ● Collaboration with stakeholders ●
3: GRI Material Topics 2021
3-1	Process to determine material topics	Material topics for reporting ●
3-2	of List material topics	Material topics for reporting ●
GRI 205: -Anti corruption 2016
3-3	Management of material topics	Business ethics ●
205-2	Communication and training about -anti corruption policies and procedures	Commitment to ethical practices ● Core ethical principles ●
205-3	Confirmed incidents of corruption and actions taken	-Zero tolerance policy on unethical conduct ●
GRI 302: Energy 2016
3-3	Management of material topics	Climate change ●
302-4	Reduction of energy consumption	-Energy efficient technologies and design ● Energy efficiency and renewable energy integration ●

Introduction

Highlights ESG 2023

index GRI

GRI 303: Water and Effluents 2018
3-3	Management of material topics	Water and use wastewater management ●
303-1	Interactions with water a as shared resource	Water and use wastewater management ●
303-2	Management water of discharge related- impacts	site-On wastewater treatment ●
303-5	Water consumption	Water consumption ESG , data tables ●
GRI 305: Emissions 2016
3-3	Management of material topics	Climate change ●
305-1	Direct Scope ( GHG) 1 emissions	Greenhouse gas emissions ● ESG data tables ●
305-2	Energy indirect Scope ( GHG) 2 emissions	Greenhouse gas emissions ● ESG data tables ●
305-4	GHG emissions intensity	Greenhouse gas emissions ● ESG data tables ●
305-5	Reduction GHG of emissions	Energy efficiency and renewable energy integration ● Greenhouse gas emissions ●
	GRI 306: Waste 2020
3-3	Management of material topics	Waste management and recycling procedures ●
306-2	Management of significant waste related- impacts	Waste management in building operations ●
GRI 308: Supplier Environnemental Assessment 2016
3-3	Management of material topics	Responsible supply chain ●
308-2	Negative environmental impacts the in supply chain and actions taken	Responsible supply chain ●
GRI 401: Employment 2016
3-3	Management of material topics	Human capital ●
401-2	Benefits provided full to time- employees that not are provided to temporary part or time- employees	Employee welfare ●

GRI 403: Occupational Health and Safety 2018
3-3	Management of material topics	Occupational health and safety ●
403-1	Occupational health and safety management system	Key elements s'AFI of occupational health and safety framework ●
403-2	Hazard identification risk , assessment and , incident investigation	Key elements s'AFI of occupational health and safety framework ●
403-3	Occupational health services	Promoting employee well being- ●
403-4	Worker participation , consultation and , communication on occupational health and safety	Key elements s'AFI of occupational health and safety framework ● Promoting employee well being- ●
403-5	Worker training on occupational health and safety	Key elements s'AFI of occupational health and safety framework ●
403-6	Promotion of worker health	Promoting employee well being- ●
403-7	Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	Key elements s'AFI of occupational health and safety framework ●
403-9	Work related- injuries	Key elements s'AFI of occupational health and safety framework ●
GRI 404: Training and Education 2016
3-3	Management of material topics	Employee development and engagement ●
404-1	Average of hours training per per year employee	Employee development and engagement ● ESG data tables ●
404-2	Programs for upgrading employee skills and transition assistance programs	Employee development and engagement ●
404-3	Percentage of employees receiving regular performance and career development reviews	Employee development ●
GRI 405: Diversity and Equal Opportunity 2016
3-3	Management of material topics	Diversity and inclusion ● Equal opportunity ● and Fair equitable compensation ●
405-1	Diversity of governance bodies and employees	Diversity and inclusion ● ESG data tables ●