Company: NNN
Filing Date: 2025-03-20
Form Type: DEF 14A
Source: 0000950170-25-042337
Chunk: 18

Company: NNN REIT, INC.
Filing Date: 2025-03-20
Form: DEF 14A
Chunk 18
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 certain environmental risks.

When possible under our triple-net leases, we engage with our tenants to promote environmental best practices on our properties, including discussions regarding the following: (i) environmental sustainability and recycling requirements, (ii) energy efficiency requirements, including ENERGY STAR requirements, and EPA Water Sense program requirements, (iii) environmental conservation and green building requirements, in accordance with industry best practices, and (iv) energy usage reporting requirements. Furthermore, our form leases contain "green lease clauses" (to require the tenants to report energy usage and emissions) which we encourage tenants to accept during negotiations. With the updates discussed above along with others that have been made to the Company’s form leases, the Company was awarded Green Lease Leader silver recognition. We also have over 60 tenants who are currently required to send the Company sustainability data, and we anticipate this number increasing as we continue to utilize the updated form leases.

Climate Preparedness.We regularly monitor the status of impending natural disasters and the impact of such disasters on our properties. In the substantial majority of leases our tenants are required to carry full replacement cost coverage on all improvements located on our properties. For those properties located in a nationally designated flood zone, we typically require our tenants to carry flood insurance pursuant to the federal flood insurance program. For those properties located in an area of high earthquake risk, we strongly encourage, and in some cases require that our tenants carry earthquake insurance above what is generally covered in an extended coverage policy. In addition, we also carry a contingent extended coverage policy on all our properties which provides coverage for certain casualty events, including fire and windstorm. In cases where our tenants do not provide coverage, or if a property is vacant, the Company carries the necessary direct insurance coverage.

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Some of the highlights of the Company's ongoing commitment to being a good and ethical corporation include the following actions taken by the Company:

| Corporate Sustainability Highlights                                                                          |
| ●   Offer a hybrid work policy providing flexibility to associates based on feedback from our Associate      
 Engagement Survey.                                                                                           |
| ●   Maintained our Supplier Code of Conduct ensuring our suppliers comply with ethical rules and moral       
 commitments.                                                                                                 |
| ●   Upheld our Human Rights Policy to acknowledge our obligation to promote human rights in our              
 relationships with our associates, suppliers and tenants and to ensure right to collective bargaining and    
 freedom of association.                                                                                      |
| ●   Upheld our Human Capital Policy furthering our commitment to our associates and the ethical treatment    
 of others which is embedded in everything we