Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Improved GRESB Real Estate Assessment score by 23%
• Achieved 12 new BOMA 360 certifications (bringing the portfolio total to 22)
• Portfolio-wide EUI in 2019 was 58.1 kBtu/ft², a 5% decrease since 2017
• Portfolio-wide WUI in 2019 was 29.1 gal/ft², a 4% increase since 2017
• Portfolio-wide waste diversion rate in 2019 was 27%, a 7% increase since 2017
• Portfolio-wide CEI in 2019 was 0.0062 MT CO2e/ft²

Social Achievements

• Signed the CEO Action for Diversity & Inclusion pledge
• Hired a DEI consultant to create company-wide initiatives to address racism and bias
• Expanded initiatives fostering career growth, including mentorship programs
• Provided health and wellness screenings for 875 employees (58% participation rate)
• Implemented a portfolio-wide Health and Well-Being Guide
• Adopted a Green Cleaning Guide

Governance Achievements

• Developed a 10-year ESG strategic plan
• Implemented nine additional ESG guides in 2019
• Majority of executive pay tied to performance-based and long-term equity incentives
• Board follows Corporate Governance Guidelines
• Each Board committee is 100% comprised of independent directors

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Issues of diversity, equity, and inclusion (DEI)
• Climate-related risks (extreme weather, regulatory changes)
• Social risks (contamination, building safety)

Mitigation Strategies

• Developed best practices, strategies, and protocols in accordance with CDC, WHO, state, and local guidelines (COVID-19)
• Hired a DEI consultant and implemented company-wide initiatives (DEI)
• Conducted a property-level risk assessment analyzing over 60 physical, social, and climate-related transition risks (Climate and Social Risks)
• Implemented improved energy policies and operational guidelines, completed energy and water efficiency projects, expanded waste management programs, and pursued additional green building certifications (Environmental Risks)

Supply Chain Management

Responsible Procurement

• 30% Minority, Women, Disabled, Veteran-Owned, Local Business Enterprise (MWDVOLBE) contractor participation goal for Downtown Columbia

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (wind, flooding, hurricanes)

Transition Risks

• Regulation requiring disclosure and/or reduction of building greenhouse gas emissions and energy use
• Increased demand for green building certifications
• Energy supply disruptions
• Building systems failures
• Insurance costs
• Asset value changes

Reporting Standards

Frameworks Used: GRI Standards, GRESB

Certifications: ISO 14001, LEED, ENERGY STAR, BOMA 360

Third-party Assurance: DNV GL

Awards & Recognition

• ULI Greenprint Center for Building Performance, Most Sustainability Projects Award (2019)
• Numerous awards for master planned communities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Engagement
• Biodiversity

Environmental Achievements

• Achieved 16 ENERGY STAR labels
• Achieved LEED Gold certification for Juniper Apartments and LEED Gold and WELL Platinum for 110 North Wacker Drive (Chicago)
• The Woodlands and Bridgeland achieved LEED for Communities precertification
• Ward Village featured in World Green Building Council (WGBC) global report
• 110 North Wacker featured in Urban Land Institute’s (ULI) State of Green: Greenprint Performance Report
• Surpassed energy and emissions reduction targets
• Made modest progress against water reduction target

Social Achievements

• Awarded 31 scholarships through HHScholars
• Contributed over $3 million to more than 350 organizations through HHCares
• Welcomed inaugural class of 15 Summer Associates
• Initiated partnerships with Project Destined, ISCS Launch Academy, and Robert Toigo Foundation
• Hosted 648 community events across MPCs
• Expanded Diversity & Inclusion programming, including a diverse supplier contracting policy

Governance Achievements

• Published ESG narrative in Annual Report on Form 10-K
• Achieved ‘A’ Rating on GRESB Public Disclosure Assessment
• Maintained a robust risk management program
• Published first Task Force on Climate-related Financial Disclosures (TCFD) index

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact on occupancy rates and data collection
• Limited access to waste data across properties
• Fluctuations in environmental performance due to pandemic and property sales
• Climate change risks (windstorms, flooding, rising temperatures, water stress)

Mitigation Strategies

• Portfolio-wide carbon inventory and carbon reduction roadmap evaluation
• Increased data collection efforts
• Resilient planning, green building design, high operational performance, and ongoing risk management
• Implementing adaptation measures to protect properties from sea level rise
• Drought-resistant landscaping and smart irrigation
• Reflective roofs and basement waterproofing
• Hurricane Policy and property-level emergency plans

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Diverse supplier contracting policy
• Green building certification consultants

Climate-Related Risks & Opportunities

Physical Risks

• Windstorms
• Flooding
• Rising temperatures
• Water stress

Transition Risks

• Increased investor concern about climate change
• Laws requiring GHG emissions and energy use reduction
• Rising utility costs

Opportunities

• Reduced energy and water consumption
• Green building incentives
• Increased tenant demand for green properties
• Renewable energy incentives

Reporting Standards

Frameworks Used: GRI Standards: Core option, TCFD

Certifications: LEED, ENERGY STAR, BOMA 360

Third-party Assurance: DNV Business Assurance USA, Inc.

UN Sustainable Development Goals

• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)
• SDG 4 (Quality Education)
• SDG 17 (Partnerships for the Goals)

HHC's initiatives align with these SDGs through green building, community development, resource conservation, and stakeholder engagement.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• GRESB Sector Leader (2022)
• Numerous awards for individual communities

Environmental Metrics

ESG Focus Areas

• Inclusivity
• Sustainability
• Transparency

Environmental Achievements

• The Woodlands became the world’s largest master planned community to achieve LEED Precertification.
• Planted more than 600 trees in Columbia.
• Earned top ranking by Global Real Estate Sustainability Benchmark (GRESB) in the U.S. Diversified Listed peer group for its 2022 Real Estate Assessment’s Standing Investments Benchmark.
• Decreased Scope 1 and 2 emissions intensity by 6% from 2021 to 2022.

Social Achievements

• Hosted more than 700 events across all communities.
• Contributed over $2.7 million in financial donations and hands-on support to more than 200 organizations and causes.
• Employees donated over 1,300 hours to their favorite causes.
• Collaborated with Real Estate Associate Program (REAP) and Real Estate Executive Council (REEC) to recruit diverse real estate professionals.

Governance Achievements

• Adopted voluntary certification standards for sustainability, including LEED, ENERGY STAR, and BOMA 360.
• Conducted annual assessment of managed real estate assets’ exposure to various climate impacts.
• Expanded inclusive, sustainable, and transparent narrative into the annual report on Form 10-K and Proxy Statements.
• Executive pay is tied to financial metrics and strategic goals, including ESG and DEI.

Climate Goals & Targets

Environmental Challenges

• Water stress
• Increased investor concern about climate change
• Laws requiring greenhouse gas emissions and energy use reduction from the building sector

Mitigation Strategies

• Implementation of water conservation guidelines, drought-tolerant landscaping, water-efficient fixtures, and smart water monitoring technology.
• Proactively and voluntarily designing and building to the LEED green building framework for all new developments.
• Benchmarking whole-building energy use and emissions in EPA’s ENERGY STAR Portfolio Manager; tracking emerging climate-related laws and changes to existing benchmarking ordinances; and completing building automation system upgrades.

Supply Chain Management

Responsible Procurement

• LEED certification requirements for new developments

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Windstorms
• Wildfires
• Hurricanes
• Winter weather
• Tornadoes
• Floods
• Heat stress
• Earthquakes
• Sea level rise

Transition Risks

• Increased investor concern about climate change
• Laws requiring greenhouse gas emissions and energy use reduction

Opportunities

• Reduced energy and water consumption
• Use of public-sector incentives
• Increased tenant demand for green properties
• Supportive policy incentives for renewable energy

Reporting Standards

Frameworks Used: GRI Standards, GRESB, TCFD, SASB

Certifications: LEED, ENERGY STAR, BOMA 360

Third-party Assurance: DNV Business Assurance USA, Inc.

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 13
• Goal 15

Initiatives aligned with SDGs 6 (clean water and sanitation), 7 (affordable and clean energy), 8 (decent work and economic growth), 12 (responsible consumption and production), 13 (climate action), and 15 (life on land).

Awards & Recognition

• Numerous awards for individual communities (see Awards and Rankings section)