CLIMATE RISK SCENARIO ANALYSIS

In each region where Macerich operates, our centers face unique vulnerabilities based on weather and climate patterns. Macerich regularly conducts a Company-wide scenario analysis to assess environment-related risk and response based on our properties’ locations and specific characteristics.

We assess properties by physical chronic and acute risk types, such as wildfires, extreme storms, sea-level rise, flooding, heat waves, drought, biodiversity and diseases; and transitional risks, such as market changes, technology, policy and regulation and reputation. This analysis informs preparedness activities at the Company and center levels and assists us in maximizing learning and efficiencies across our portfolio.

To understand physical risks, we extract facility-level data from risk assessments, including construction, occupancy, protection, exposure (COPE), conducted over the past five years by Macerich’s loss control surveyor. We garner additional information characterizing physical and transitional risks from various governments, independent organizations and academic resources. Facility-level absolute sales per square foot (calculated using income per square foot and gross leasable area) help us establish a magnitude of financial impact for climate-related risks.