Simon Property Group

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Carbon per million dollars of physical infrastructure — PP&E plus leased real-estate, including upstream and downstream leased emissions (Scope 3 categories 8 + 13). The most complete view of physical-asset carbon intensity, relevant for REITs and infrastructure-heavy firms.

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Simon operates photovoltaic panels at nine properties with combined installed capacity over 3,600 MW, generating 3,360 MWh on-site in 2024. Renewable electricity reached 9.86% from purchased renewable sources plus 0.24% on-site generated in 2024, up from 5.94% + 0.13% in 2023. Simon is committed to increasing renewable energy consumption where opportunity creates shareholder value.

Simon does not disclose carbon removal credits or DAC/BECCS investments. At Denver Premium Outlets, Simon introduced its first Zero-Carbon, Algae-Based Paving solution as a sustainable infrastructure pilot to reduce material-related Scope 3 emissions. Strategy is focused on absolute reduction via SBTi pathway rather than removals.

• Water reduction programme — 15% cut by 2030 from 2022 baseline

  Simon achieved its initial water reduction target of 20% against a 2013 baseline and set a new target to reduce water usage at comparable centers by 15% by 2030 (base year 2022). Water management and landfill waste reduction are identified as components of reducing the company's overall carbon and environmental footprint.

• Energy consumption reduction as central environmental commitment

  Simon states that reducing energy consumption is a central commitment to reducing its environmental impact. The company has adopted SBTi-approved 2035 targets to reduce Scope 1 and Scope 2 emissions by 68% (2019 baseline) and Scope 3 by 20.9% (2018 baseline). Sustainability initiatives are integrated into how the company plans, develops and operates its properties. The Governance and Nominating Committee oversees sustainability policies, and the Audit Committee oversees annual sustainability disclosure via a formal sustainability report.

• Sustainable redevelopment — embodied carbon and asset reinvestment

  Simon continuously redevelops and expands properties, completing 23 redevelopment and expansion projects in 2025. Capital expenditures totalled $934M in 2025 with $417M on redevelopments. The company aims to reinvest in higher-productivity uses and mixed-use components. New development projects are evaluated for energy efficiency and sustainability as part of Simon's integration of sustainability into business operations including how it plans and develops properties.

• Climate risk management aligned with TCFD recommendations

  Simon states its climate-related risk disclosures are aligned with the recommendations of the Task Force on Climate Related Financial Disclosures (TCFD). The company acknowledges physical climate risks including increased storm intensity, rising sea levels, and heat waves, particularly for properties in Florida, California, Texas and New York. Climate change-related costs include potential increases in insurance and energy costs. These risks are monitored under the Board's oversight of sustainability policies.

• Redevelopment and mixed-use transformation reducing embodied carbon intensity

  Simon has a major ongoing redevelopment program repurposing former department store anchor spaces into new uses (Dick's House of Sport, Kowalski's Market, Primark, Scheels) and adding hotels and residential units. In 2024, 15 redevelopment/expansion projects were completed across all U.S. platforms. Simon's share of total new development and redevelopment projects currently under construction is approximately $1.3 billion.

• Electric vehicle charging deployment across portfolio

  Simon leads its industry in electric vehicle charging deployments through innovative strategic alliances with major brands including Mercedes-Benz, Tesla, BP, Electrify America and Rivian. The company has expanded its EV charging network across its portfolio, positioning shopping centers as charging destinations.

• Energy efficiency: Motus VFDs and CryogenX4 retrofits

  Motus energy-efficient VFD motors deployed at 83 properties (34 + 49 added in 2024) cut HVAC motor energy by ~74%, projected to save $1.5M annually and 11 million kWh. CryogenX4 cooling efficiency treatment at 36 properties reduces unit energy use by 10-30% and overall energy use by 5-15%. New Energy Management platform replaced aging systems for better lighting, HVAC, and central plant control.

• Construction waste reduction via modular barricades

  In 2024, modular barricades deployed across 89 shopping centers (340,344 sq ft installed) diverted 1.02 million pounds of construction waste from landfills, reduced energy 33,184 kWh and lowered GHG emissions by 159,621 pounds. Cardboard recycling now active at all properties.

• Energy consumption reduction as central sustainability commitment

  Simon identifies reducing energy consumption as a central commitment to reducing environmental impact. The company has adopted 2035 GHG emissions targets approved by SBTi targeting a 68% reduction in Scope 1 and 2 emissions from a 2019 baseline. Simon integrates sustainability initiatives into how it plans, develops, and operates properties, and has held GRESB Green Star ratings since 2014.

• Building Management System and IREM certifications

  In 2024 Simon had 97 IREM Certified Sustainable Properties (+20% YoY). Energy use decreased 3% and carbon emissions 4% in 2024. Between 2013-2023, direct energy consumption fell over 31% and carbon footprint over 65%. South Shore Plaza scored 81 on IREM with MOTUS, ENERGY STAR HVAC, and efficient lighting upgrades.

• Water efficiency & xeriscaping in common areas

  Achieved 26% water reduction 2013-2022 (vs. 20% target by 2025), then set a new 15% reduction by 2030 (2022 baseline). Investments in WaterSense fixtures, low-flow toilets, waterless urinals, drought-tolerant landscaping, drip irrigation and smart irrigation controls; 2% reduction 2021-2022 saving 66.51 mega gallons.

• Energy efficiency in common areas — HVAC, chillers, LED, controls

  Over $25.8M in sustainability projects approved across the portfolio in 2022 to reduce environmental footprint, including HVAC replacements, updated chillers, irrigation controllers, LED retrofits and new energy controls systems. Simon also runs a biannual demand response review and an internal Sustainability Innovation Contest (41 initiatives in 2022) that drives portfolio-wide rollouts such as a 48-property water monitoring program.

• EV charging infrastructure rollout

  Simon expanded open-to-public EV charging dispensers to 1,261 across 124 centers in 2022 (up 72 YoY), with 1,043 Level 3 and 218 Level 2 chargers; 69% of properties now have EV charging with a commitment to install at 100% of qualified properties. Supports decarbonization of customer transport (shopper trips).

• Waste diversion & tenant recycling programs

  Cardboard recycling at all properties, plastic film recycling at select centers, single-stream recycling feasibility studies, tenant education with improved signage. Partnerships with GreenDrop (donation drop-off at Arundel Mills, Smith Haven Mall, Walt Whitman Shops) and Give Back Box (1,264 boxes returned in 2022) divert reusable items from landfill, supporting the Scope 3 (Cat 5 waste) reduction trajectory.

• EV charging infrastructure rollout to 100% of qualified properties

  Simon had 1,187 EV charging stations at 124 centers in 2021 (961 Level 3, 226 Level 2), present at 62% of properties. Target: 100% of qualified properties. This supports reduced shopper transport emissions and tenant Scope 3.

• On-site renewables at 10 properties (12.5 MW solar)

  Simon has ten properties with on-site photovoltaic panels with combined installed capacity of 12.5 MW, generating 3,489 MWh in 2021 to power common areas. Plans include strategically increasing renewable procurement going forward.

• Green building certifications and sustainable development guidelines

  Updated sustainable development guidelines incorporate energy efficiency, water conservation, sustainable sourcing for all new (re)developments. 31 green building certifications in portfolio with 28 new IREM CSP certifications in 2021. Phipps Plaza redevelopment includes LEED-certified office tower.

• Energy efficiency: LED retrofits, BAS at 48 properties, HVAC upgrades

  Simon invested over $12.3M in sustainability projects in 2021 including cooling tower replacement, skylight restoration, HVAC replacements, updated chillers, roof recovery, irrigation controllers, LED retrofits, and xeriscaping. Initiated a substantive LED lighting conversion at 60+ properties and rolled out robust building automation platforms at 48 properties. Demand Response program expanded to 43 centers.

• Electric vehicle (EV) charging infrastructure deployment

  Simon has installed 985 electric vehicle charging stations at 120 centers across the U.S., supporting the electrification of transportation for shoppers and employees at its retail destinations.

• Energy management and efficiency in owned/operated properties

  Since 2003, Simon has measured environmental impact and implemented energy management practices and continuous monitoring, reducing energy consumption every year. Over 2003-2019 (excluding new developments), Simon reduced energy usage under direct control by 354 million kWh, a 33% reduction; from 2013-2019 alone the reduction was 182 million kWh (20% in six years, accounting for 51% of total reductions). These efforts also drove a 54% GHG reduction (312,067 metric tons CO2e scope 1+2) since 2003 baseline.

• Water consumption reduction targeting 20% by 2025

  Simon tracks and reduces water usage across its portfolio. By 2019 it had achieved a 5.4% reduction in water use in that year and a cumulative 18% reduction since 2015, representing 1.5 million gallons saved. Simon is on track to meet its 2025 target of a 20% reduction ahead of schedule.

• LED lighting & energy efficiency capital program

  Over $70 million invested in LED upgrades at 200+ properties delivering 11.6 million kWh in electricity savings. In 2019 alone, $24.5 million was invested in 625 energy efficiency projects. Continuous portfolio assessment for HVAC, central plants, chillers, pumps, VFDs, and Energy Management Systems. Cielo Vista Mall is a flagship: $1.4M invested produced 14% efficiency improvement, 1,800 MWh annual reduction and 1,700 tCO2 avoided.

• EV charging infrastructure rollout

  816 EV charging stations installed at 115 centers (56.6% of domestic properties). Target is 100% of properties where EV providers are available and Simon has operational control, supporting tenant access to lower-carbon transport.

• Green building & LEED-aligned new development

  New developments such as Northgate include LEED Gold office building, stormwater detention and bioretention, sanitary waste heat recovery system, and mass-transit accessibility. Simon promotes adoption of building certifications (LEED) and is implementing more rigorous vendor selection guidelines so new construction can meet net-zero building standards.

• Water conservation & efficient irrigation

  18.5% reduction in water consumption since 2013 (target 20% by 2025). Measures include low-flow restroom fixtures, waterless urinals, drought-tolerant landscaping, xeriscaping, smart irrigation control, and cooling tower upgrades. Aqueduct Water Risk Atlas used to assess physical/regulatory/reputational water risk across portfolio.

• Tenant energy management via leasing and property operations

  As a REIT, Simon's dominant emissions exposure lies in tenant-occupied spaces (downstream leased assets, Scope 3 Cat 13). Simon offers property operating services to tenants including energy services, and recovers energy costs through lease structures. The company provides waste handling and facility services across its portfolio, and its lease structures allow significant cost recovery and influence over energy consumption at managed properties.

• Tenant energy and water management through leasing structures

  Simon structures its leases to allow recovery of a significant portion of property operating expenses from tenants, including utilities. CAM reimbursements cover utility costs across substantially all mall leases in the U.S. mall portfolio. Simon also has set a new target to reduce water for comparable centers by 15% by 2030 (base year 2022), having already achieved its prior 20% reduction target from a 2013 baseline.

• Tenant engagement to cut Scope 3 downstream leased emissions

  Cat 13 downstream leased assets dominate Simon's Scope 3 (~$779k tCO2e market-based). Simon has an SBTi-approved target to reduce these by 20.9% by 2035 (2018 base). Initiatives include green lease clauses, a dedicated ESG Collaboration Program with tenants (since 2021), and Tulsa Premium Outlets' Building Management System equipping tenants with smart electric meters for real-time consumption visibility.

• EV charging infrastructure at 132 centers

  In 2024 Simon expanded to 1,509 EV charging dispensers (from 1,426 in 2023) across 132 centers, up from 812 chargers in 2019 — supporting customer Scope 3 transportation emissions reductions by enabling EV adoption among shoppers.

• Tenant (downstream leased) energy engagement — Green Retailer Collaboration

  Approximately 83% of Simon's GHG emissions are associated with tenant operations (downstream leased assets, Scope 3 Cat 13). To meet the SBTi-approved 20.9% Scope 3 reduction by 2035, Simon launched the Green Retailer Collaboration program in 2021, structured around Educate/Collaborate/Act. Initiatives include a Go Green Retailer of the Month program (J.Crew was first awardee) and engagement to encourage tenants to adopt science-based targets and invest in renewables and efficiency.

• Green building certifications (IREM CSP)

  77 IREM Certified Sustainable Property certifications in 2022. The Mills at Jersey Gardens, with on-site solar, cool roofs, and parking-area LED lighting, scored highest in portfolio at 84 and reduced energy 9.9% (2018-2022) and water by 5,699 Mgal (2018-2022). Simon's updated EMS sets minimum sustainable-development requirements for all new developments, redevelopments, and refurbishments.

• Return-to-store strategy to cut e-commerce emissions

  Simon-Deloitte study found physical shopping up to 60% more sustainable than digital, and returning goods to store reduces carbon emissions by an average of 40% vs distribution-center returns. Simon intends to actively promote return-to-store strategies with retailers to lower combined supply-chain footprint.

• Tenant (downstream leased assets) engagement to cut Scope 3

  Approximately 83% of Simon's GHG emissions are associated with tenant activities. Simon committed to a 20.9% absolute Scope 3 reduction by 2035 (SBTi-validated, 2018 base) focused on downstream leased assets. In 2021, Simon launched a Green Retailer Collaboration program (Educate-Collaborate-Act framework) and engaged corporate sustainability teams of 30+ tenants representing 20%+ of portfolio sq ft to develop joint reduction initiatives.

• Physical retail sustainability advantage over e-commerce

  Simon published a white paper arguing that physical shopping can be up to 60% more sustainable than e-commerce, positioning its retail properties as a climate-positive alternative to online fulfillment. This is framed as a strategic sustainability lever and differentiator for the portfolio.

• Tenant emissions reduction via Scope 3 science-based targets

  Simon's 2035 SBTi-approved targets include a 21% reduction in scope 3 emissions (2018 baseline), explicitly including tenant emissions from plug-load consumption. Tenant energy use is the primary scope 3 source for a retail REIT. Simon publishes full scope 3 data in its annual sustainability report per GRI guidelines.

• LEED and sustainable building standards in redevelopment

  Simon incorporates sustainable building standards into its redevelopment projects. The Northgate project in Seattle is planned to feature a LEED Gold office building as part of its mixed-use redevelopment into a multi-phase project. Simon frames new mixed-use developments including residential, hotel, and health/wellness as built to elevated sustainability standards.

• Tenant engagement to cut downstream leased emissions (Cat 13)

  With 3,500+ tenants accounting for the dominant Scope 3 footprint, Simon's 20.9% reduction target for downstream leased assets by 2035 depends on tenant collaboration. Top-10 tenant engagement, sustainability awareness events, recycling rollout, and encouragement for tenants to adopt their own science-based targets are the key levers.

• Recycling & waste-stream programs at properties

  Cardboard recycling at all properties; plastic-film recycling at select centers; ongoing assessment of single-stream recycling feasibility; tenant education program around recycling signage and sorting. Aim to reduce Scope 3 emissions by 21% by 2035 partly through waste reduction.