Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Piloted energy labeling of apartment homes, planned to triple the number of communities with energy labeling in 2014.
• Piloted energy usage benchmarking in 48 communities.
• Increased the number of communities pursuing environmental certification by 78% (adding 26 communities).
• Completed 12 apartment communities in 2013 resulting in 297,000 kilowatt hours in electricity savings per year, a 30% reduction in heating and cooling costs, and 18 million gallons of water saved compared to minimum code regulations.
• Expanded car charging capacity planned for over 480% increase in 2014.

Social Achievements

• Resident satisfaction rate of 83% (7 percentage points higher than the industry peer index).
• 11% increase in AvalonBay associate hours donated to community service projects during Spirit of Caring month.
• Created a new position, director of safety (filled in 2014), and increased safety training and focus.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: LEED, Energy Star

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Emissions reductions
• Energy efficiency
• Green design and construction
• Renewable energy
• Waste management
• Water efficiency
• Community investment
• Philanthropy
• Volunteering
• Inclusion and Diversity
• Associate engagement
• Health and safety
• Corporate governance
• Ethics and compliance
• Financial reporting
• Responsible human rights
• Supply chain

Environmental Achievements

• Reduced scope 1 & 2 emissions by 43.6% and scope 3 emissions by 13.9% since 2017 baseline.
• Achieved LEED certification for two additional communities, bringing the total to 63.
• Increased procurement of renewable energy to 95% of the total procurable common area electric load.
• Activated an additional 13 solar panel systems representing 2.25 MW, bringing the total to 51 sites operating with 6.97 MW of solar.

Social Achievements

• Increased volunteer and philanthropic efforts through Building Strong Communities program, resulting in over 8,000 volunteer hours.
• Growth of seven associate resource groups and launch of department-level inclusion and diversity action plans.
• Recognized as a Best Place to Work for LGBTQ+ Equality and as a National Inclusion, Diversity and Equity Excellence Award winner.

Governance Achievements

• ESG performance and metrics included in corporate component of annual bonus for all eligible associates.
• Named a Residential Global and Regional Sector Leader by GRESB and Residential Leader in the Light Award winner by Nareit.

Climate Goals & Targets

Environmental Challenges

• Electrification of existing communities is challenging.
• Increased scope 3 emissions in 2022 due to increased development activity and residents working from home.
• Keeping pace with evolving building performance standards and regulations across different markets.

Mitigation Strategies

• Teams are assessing options and planning for future electrification.
• Developing programs to create meaningful progress towards SBTs in 2023.
• Created an Energy and Climate Legislation Dashboard to track policy shifts and evaluate impacts on the portfolio.

Supply Chain Management

Supplier Audits: 38 vendors surveyed in 2021

Responsible Procurement

• Vendor Code of Conduct
• Responsible Procurement Principles

Climate-Related Risks & Opportunities

Physical Risks

• Pluvial Flooding
• Fluvial Flooding
• Hurricane
• FEMA flood rating
• Wind
• Tornado
• Earthquake
• Tidal Flooding
• FEMA NRI
• Wildfire
• Tsunami
• Extreme Drought
• Extreme Heat
• Extreme Rainfall

Transition Risks

• Regulatory changes
• Technological changes
• Economic shifts
• Legal risks
• Reputational risks

Opportunities

• Development of energy-efficient products
• Renewable energy generation

Reporting Standards

Frameworks Used: GRI-G4, SASB, TCFD, UN SDGs

Certifications: LEED

Third-party Assurance: Lloyds Register Quality Assurance, Inc (LRQA)

UN Sustainable Development Goals

• Not disclosed

Aligned with 8 of the 17 UN Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Second Space (mixed-use office concept)
• Avalon Connect (bulk internet package)
• Furnished+ (furnished apartment offering)

Awards & Recognition

• GRESB Global & Regional Sector Leader
• CDP “A-” Climate Change Score
• Human Rights Campaign — Best Place to Work for LGBTQ+ Equality
• Associated Builders and Contractors — National Inclusion, Diversity and Equity Excellence Award
• Nareit’s 2022 Residential Leader in the Light Award
• Newsweek America’s Most Responsible Companies
• 3BL Media’s global list of 100 Best Corporate Citizens
• MSCI “A” ESG Rating
• ISS ESG Corporate Rating “Prime” Status

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Water Conservation
• Waste Reduction
• Inclusion & Diversity
• Community Investment
• Associate Well-being
• Corporate Governance
• Responsible Business Practices
• Health and Safety

Environmental Achievements

• 46% reduction in scope 1 & 2 GHG emissions since 2017 baseline
• 20% reduction in scope 3 GHG emissions since 2017 baseline
• 22% decrease in landfill-bound waste since 2017 baseline
• Increased green electricity procurement to cover 85% of procurable common area electric load
• Activated nine new solar PV systems representing 1.53 MW of clean electricity capacity

Social Achievements

• Donated over $2.57 million in cash and in-kind support to 286 organizations
• Over 10,000 volunteer hours at 226 volunteer events nationwide
• Recognized as a Diversity & Inclusion Excellence Award winner by Associated General Contractors
• Recognized as a Best Place to Work for LGBTQ+ Equality by the Human Rights Campaign for the second consecutive year

Governance Achievements

• Integrated ESG progress into the corporate component of annual bonuses for all eligible associates
• Expanded external limited assurance process to cover emissions from residents

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (flood, precipitation, wildfire, wind, heat, drought)
• Asset stranding risk due to emissions profile and local regulations
• Emerging regulatory requirements (BEPS, climate disclosure)
• Rising trash and recycling costs
• Limited ability to directly influence resident utility consumption

Mitigation Strategies

• Updated climate risk assessment program with numerical risk scores
• Incorporating physical climate risk into investment decisions
• Partnering with ULI Greenprint to refine CRREM data models
• Conducting preliminary assessments for BEPS compliance
• Developing asset-specific decarbonization plans
• Implementing green leases to improve communication and transparency with residents
• Expanding waste diversion and recycling options
• Implementing resident education programs

Supply Chain Management

Supplier Audits: 1,181 safety observations logged and tracked

Responsible Procurement

• Vendor Code of Conduct
• Responsible Procurement Principles
• National Supplier Diversity Program (planned for 2024)

Climate-Related Risks & Opportunities

Physical Risks

• Flood
• Precipitation
• Wildfire
• Wind
• Heat
• Drought

Transition Risks

• Asset stranding
• Regulatory changes (BEPS, climate disclosure)

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy programs

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: LEED, ENERGY STAR

Third-party Assurance: LRQA Inc.

UN Sustainable Development Goals

• Not disclosed

Aligned with 8 of the 17 UN Sustainable Development Goals.

Sustainable Products & Innovation

• Smart thermostats
• Weather-based irrigation systems
• Mass timber construction
• Community solar
• Resident solar

Awards & Recognition

• GRESB Standing Investments score of 83
• CDP Climate score of A-
• ISS ESG "Prime" status
• Sustainalytics' "Regional and Industry Top Rated Company"
• MSCI "A" ESG Rating
• Institute for Market Transformation — Green Lease Leaders Gold Level
• Human Rights Campaign — Best Place to Work for LGBTQ+ Equality
• Associated General Contractors — Diversity & Inclusion Excellence Award
• Washington Post Best Places to Work
• Newsweek America’s Most Responsible Companies
• Newsweek America’s Greenest Companies
• 3BL Media global list of 100 Best Corporate Citizens
• World Benchmark Alliance 2023 Buildings Benchmark Ranked #10
• Forbes Top 100 List of Net Zero Leaders