Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Completed 41 LED lighting retrofit projects in 2018, resulting in a 19% reduction in common area electric consumption at those communities.
• Reduced electric consumption by 8% between 2015 and 2018 (towards a 15% reduction goal by 2025).
• Reduced water consumption intensity by 2% between 2015 and 2018 (towards a 10% reduction goal by 2025).

Social Achievements

• 94% of Associates would recommend UDR as a great place to work (2018 Associate Net Promoter Score).
• Received an Outstanding Employer Award in 2018.
• Provided over 60,000 training hours to Associates in 2018 (average of 40 hours per Associate).
• Increased Associate volunteer hours by 17% from 2017 to 2018 (2,041 hours).

Governance Achievements

• 30% of board seats held by women in 2018 and 2019.
• All Associates received harassment training in 2018.
• Shareholder engagement with holders of approximately 80.4% of outstanding shares in 2018.

Climate Goals & Targets

Environmental Challenges

• Reducing indirect carbon impact (Scope 3 emissions from residents).

Mitigation Strategies

• Published "Living Current," a guide with tips for residents to lower energy and water consumption.
• Smart Building technology implementation to monitor and reduce energy consumption.
• Smart irrigation projects to conserve water.

Supply Chain Management

Responsible Procurement

• UDR Code of Business Conduct and Ethics

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Awards & Recognition

• Outstanding Employer Award (2018)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electric demand in 2019 by 4,241 KW through Demand Response programs resulting in over $200K in additional net operating income.
• Invested in rooftop solar to produce over 831,000 kWh annually.
• Procured over 12M kWh in Green-e Certified Renewable Energy Certificates to offset the Company’s carbon footprint.
• Installed smart irrigation at properties resulting in an over 5-million-gallon reduction in water usage in 2019.
• Used 25 million gallons of reclaimed water for irrigation in 2019, thereby reducing our consumption of potable water.
• Reduced trash waste by 337 metric tons at our same store properties.
• Issued a $300 million Green Bond, the net proceeds of which were used for eligible green projects.
• 13% cumulative reduction in energy consumption between 2015 and 2019.
• 13% reduction in GHG (Scope 1 and Scope 2 Market Based combined) emissions between 2015 and 2019.

Social Achievements

• Updated Associate training and human capital development programs with a greater focus on diversity, ethics, and safety.
• Paid our Associates for 2,558 hours of their time donated to charity.
• Worked with residents who experienced financial hardship as a result of the COVID-19 pandemic.
• Offered additional time-off, one-time bonuses for our front-line workers, flexible work schedules, and vacation buyouts to Associates during the pandemic.
• Increased Associate volunteer hours by 25% from 2018 to 2019.
• Installed Smart Home Program across over 50% of the portfolio by year-end 2019.
• Achieved an 11% increase year over year in average resident engagement score.

Governance Achievements

• Created a Government Affairs team to monitor and advise on regulatory matters, including potential environmental legislation.

Climate Goals & Targets

Environmental Challenges

• Potential spread of rent control
• Future carbon tax legislation
• Changing customer preferences
• Climate change threats
• Cybersecurity threats
• Long-term impact from Coronavirus
• Sourcing and retaining talented Associates

Mitigation Strategies

• Integrating ESG and sustainability targets into UDR’s near and long-term strategic goals
• Implementing a proactive Enterprise Risk Management (ERM) framework

Supply Chain Management

Responsible Procurement

• Code of Business Conduct and Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heat Stress
• Water Stress
• Sea-Level Rise
• Hurricane Risk
• Earthquake Risk

Transition Risks

• Carbon tax legislation
• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (core), SASB standards, TCFD framework

Certifications: ISO 14001

Third-party Assurance: LRQA

Awards & Recognition

• Smart Building Innovator of the Year
• Silver Sustainable Living Innovation Award
• Technology Innovation Award Finalist

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Associate Health and Well-being
• Stakeholder Engagement
• Corporate Governance

Environmental Achievements

• Exceeded 2025 greenhouse gas emissions and energy reduction targets five years ahead of schedule, achieving a 21% GHG emissions reduction compared to 2015.
• Achieved 12% renewable energy procurement, exceeding the original 10% target by 2025.
• Reduced common area energy consumption by 18% since 2015.
• Avoided emissions of greater than 21,000 MT CO2e through investments in energy conservation projects.

Social Achievements

• Invested approximately $3.2 million in PPE, intensified cleaning procedures, and provided flexible work schedules to support associates during COVID-19.
• Offered accommodative rent payback plans and secured $14.3 million in rental assistance for residents impacted by COVID-19.
• Expanded Diversity, Equity, and Inclusion initiatives, including unconscious bias training for all associates.
• Revised culture statement and launched a culture website to reflect evolving values.
• Maintained an average Net Promoter Score greater than 33.

Governance Achievements

• Formally adopted the Rooney Rule for Board refreshment.
• Added two new independent directors, enhancing Board gender and ethnic diversity to 40%.
• Enhanced business continuity and IT security processes.
• Performed internal and external compliance screening for all new vendors.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted energy, water, and waste consumption rates.
• Increased price of GHG emissions.
• Costs to transition to lower emissions technology.
• Enhanced emissions-reporting obligations and associated costs.
• Evolving stakeholder expectations for ESG initiatives and reporting obligations.
• Changing customer behaviors and preferences around ESG.
• Rising raw material costs for ESG initiatives or new green (re)-development projects.
• Growing regulatory constraints impacting operations and increasing capital needs for retrofitting existing assets.
• Climate risks to specific markets, submarkets, and assets.

Mitigation Strategies

• Developed and implemented integrated protocols to ensure the safety and wellbeing of associates and residents during the COVID-19 pandemic.
• Implemented an Environmental Management System (EMS) to monitor and evaluate the economic and environmental benefits of sustainability investments.
• Conducted three primary risk assessments annually to gauge climate change risks (physical, transition, and regulatory).
• Invested over $12 million in sustainability initiatives since 2015.
• Actively monitoring and incorporating climate-related regulatory risks into the Company’s overall ESG Governance Process.
• Engaging in science-based target setting through the SBTi.
• Expanding technology investment to capture whole-building energy consumption data.
• Encouraging resident participation in demand response programs and providing energy conservation education.

Supply Chain Management

Responsible Procurement

• Periodic due diligence reviews of vendors to confirm compliance with federal laws and company policies.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heat Stress
• Water Stress
• Sea-Level Rise
• Hurricane Risk
• Earthquake Risk

Transition Risks

• Increased price of GHG emissions
• Costs to transition to lower emissions technology
• Enhanced emissions-reporting obligations
• Changing customer behaviors
• Increased raw material costs
• Regulatory changes

Opportunities

• Development of energy-efficient products and services
• Investment in renewable energy technologies

Reporting Standards

Frameworks Used: GRI Standards (core), SASB Standards (Real Estate), TCFD framework

Third-party Assurance: Lloyd's Register Quality Assurance, Inc.

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

UDR's ESG goals align with these UN SDGs through initiatives related to associate well-being, energy efficiency, renewable energy, sustainable buildings, community engagement, and climate action.

Sustainable Products & Innovation

• Smart home technology
• Smart building technology
• Onsite renewable energy (solar)

Awards & Recognition

• Smart Building Innovator of the Year (Logical Buildings, two consecutive years)
• GRESB Real Estate Survey #1 Performer and GRESB Global Sector Leader

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Resident Experience
• Associate Well-being

Environmental Achievements

• Exceeded emissions reduction, energy procurement, and waste diversion targets ahead of schedule.
• Achieved third-party certification of Environmental Management System (EMS) to ISO 14001.
• Completed sustainability certification of five owned apartment communities.
• Committed $20 million to Climate Technology and Sustainability Funds.

Social Achievements

• Formed a Human Resources (HR) Committee to integrate HR into ESG and People Strategy.
• Conducted associate engagement surveys resulting in new benefits and programs.
• Expanded application of the “Rooney Rule” to all associate hiring.
• Incorporated DEI performance into executive compensation.
• Released a new UDR Resident App.

Governance Achievements

• Codified a political contributions and charitable donations policy.
• Increased Internal Audit involvement in ESG.
• Elevated monitoring of training compliance.
• Added ESG and DEI criteria to executive compensation.
• Introduced a minimum vesting period for equity grants.

Climate Goals & Targets

Environmental Challenges

• Obtaining emissions and activity data associated with leased assets (Scope 3 emissions).
• Managing climate-related physical, transition, and regulatory risks.

Mitigation Strategies

• Conducted Scope 3 screening process to evaluate emissions value chain.
• Incorporated climate-related risks into Environmental Governance and business strategies.
• Developing an updated long-term environmental strategy and targets, including science-based targets.
• Investing in technology and innovation (SmartHome, smart building technology, solar, etc.).
• Resident education and engagement programs to promote sustainable consumption.

Supply Chain Management

Responsible Procurement

• Internal and external compliance screening for all new vendors.
• Compliance with Federal Laws (Patriot Act, Money Laundering Control Act, Executive Order 13224).

Climate-Related Risks & Opportunities

Physical Risks

• Heat Stress
• Water Stress
• Sea-Level Rise
• Flooding Risk
• Earthquake Risk
• Hurricane Risk
• Wildfire Risk

Transition Risks

• Increased price of GHG emissions
• Costs to transition to lower emissions technology
• Changing customer behaviors
• Rising raw material costs
• Regulatory changes

Opportunities

• Development of energy-efficient products and technologies
• Renewable energy investments
• Improved resident experience through technology.

Reporting Standards

Frameworks Used: GRI (core), SASB (Real Estate), TCFD

Certifications: ISO 14001

Third-party Assurance: LRQA Limited

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 5: Gender Equality
• Goal 10: Reduced Inequalities

UDR's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• SmartHome technology
• Smart building technology
• Onsite renewable energy

Awards & Recognition

• GRESB 5 Star rating
• Newsweek’s 2022 America’s Most Sustainable Companies

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Associate Experience
• Resident Experience

Environmental Achievements

• 17% reduction in Scope 1 & 2 (Market Based) emissions intensity from 2020 to 2022
• 30% of operationally controlled electric procured through renewable energy sources in 2022
• 22% like-for-like waste diversion rate in 2022
• Four additional sustainability certifications obtained in 2022, bringing the total to 29 (over 15% of the portfolio)

Social Achievements

• Associate turnover rate of 28% in 2022 (lower than the industry standard of 38%)
• Launched Lifestyle Spending Account and Associate Resource Program for employee well-being
• 97% of resident leases, 90% of rent payments, 87% of service requests, and 85% of lease renewals were completed online in 2022
• 55% of newly hired associates in 2022 were from ethnic groups other than white and 40% were female

Governance Achievements

• Scored 87 on the 2023 GRESB Real Estate survey (ranked 1st in peer group)
• Obtained 19 out of 20 points in the Governance section of the 2023 GRESB Real Estate Assessment
• Simplified ESG Metrics in senior leadership Short-Term Incentive Program
• Expanded associate demographic disclosures to include the most recent EEO-1 report

Climate Goals & Targets

Environmental Challenges

• 6% increase in Scope 3 emissions intensity from 2020 to 2022
• Challenges associated with obtaining emissions and activity data for leased assets (Scope 3)
• Maintaining an average Net Promoter Score greater than 33

Mitigation Strategies

• Updated long-term Sustainability Strategy with actions-oriented approach
• Adopting science-based Scope 1, 2, and 3 GHG emissions intensity reduction targets (40% reduction in Scope 1 & 2, 30% in Scope 3 from 2020-2035)
• Proactively addressing Building Environmental Performance Standards
• Investing $20 million in ESG and Climate Technology Funds
• Increased resident education and engagement on sustainable practices
• Implementing quarterly associate pulse surveys for feedback

Supply Chain Management

Responsible Procurement

• Periodic due diligence review of vendors to confirm compliance with federal laws (Patriot Act, Money Laundering Control Act, Executive Order 13224)

Climate-Related Risks & Opportunities

Physical Risks

• Heat Stress
• Water Stress
• Sea-Level Rise
• Flooding Risk
• Earthquake Risk
• Hurricane Risk
• Wildfire Risk

Transition Risks

• Increased price of GHG emissions
• Enhanced emissions-reporting obligations
• Costs to transition to lower emissions technology
• Changing customer behavior
• Increased cost of raw materials
• Shifts in consumer preferences
• Increased stakeholder concern regarding climate-related risk

Opportunities

• Renewable energy and Next Generation Operating Platform
• Anticipating shifts in consumer preferences and optimizing resident experiences
• Leadership in ESG disclosures and performance

Reporting Standards

Frameworks Used: GRI Universal Standards (2021), SASB standards (Real Estate), TCFD

Certifications: ISO 14001 (2015)

Third-party Assurance: LRQA

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 9
• SDG 11
• SDG 12
• SDG 13

UDR's initiatives contribute to these goals through various environmental and social programs

Sustainable Products & Innovation

• SmartHome technology packages
• EV charging stations

Awards & Recognition

• 2023 GRESB Sector Leader
• Newsweek’s America’s Most Sustainable Companies (2023)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Associate Well-being
• Resident Experience
• Responsible Investing

Environmental Achievements

• Lowered portfolio-wide Scope 1 and 2 GHG emissions intensity by 20% below 2020 baseline.
• Deployed GHG emissions reducing initiatives in NYC, Washington D.C., and Denver, estimated to reduce total GHG emissions from energy in those markets by 10%.
• Certified seven additional apartment communities as sustainable, bringing the total to 36 (over 19% of portfolio).
• Named Outstanding Developer/Builder of the Year as part of the 2024 LEED Homes Awards.

Social Achievements

• Achieved 22% associate turnover rate in 2023 (below industry standard of 40%).
• Reduced average number of open positions and time to fill by 50% from January 2023 to December 2023.
• Improved internal communication; 78% of associates believe in open and honest communication (exceeding industry average).
• Implemented 1st Annual Virtual Health & Wellness Fair.
• Enhanced benefits package based on associate feedback.

Governance Achievements

• Obtained 19 out of 20 points in the Governance section of the 2024 GRESB Real Estate Assessment.
• Continued to augment senior leadership’s STI compensation targets to include important ESG priorities.
• Proactively contacted governance/stewardship departments of 119 investors; engaged with 17 (approx. 43% of outstanding common stock).
• Expanded social governance framework with new hires in Organizational Development and Talent Management.

Climate Goals & Targets

Environmental Challenges

• 8% increase in Scope 3 emissions intensity from 2020 to 2023.
• 3% increase in water intensity from 2020 to 2023.
• Challenges associated with obtaining emissions and activity data for leased assets (Scope 3).

Mitigation Strategies

• Sustainability Strategy update to target emissions reductions throughout the value chain.
• Investing in water efficiency technologies, reclaimed water, and submetering.
• Increasing resident education and engagement to reduce Scope 3 emissions associated with resident energy consumption.
• Obtaining whole building energy data to establish accurate baselines.

Supply Chain Management

Responsible Procurement

• Vendor compliance program including due diligence reviews, background checks, and compliance with federal laws.

Climate-Related Risks & Opportunities

Physical Risks

• Heat Stress
• Water Stress
• Sea-Level Rise
• Flooding Risk
• Earthquake Risk
• Hurricane Risk
• Wildfire Risk

Transition Risks

• Increased price of GHG emissions
• Costs to transition to lower emissions technology
• Changing customer behaviors
• Increased raw material costs
• Shifts in consumer preferences
• Increased stakeholder concern regarding climate-related risk

Opportunities

• Renewable energy investments
• Next Generation Operating Platform
• Anticipating shifts in consumer preferences
• Leadership in ESG disclosures and performance

Reporting Standards

Frameworks Used: GRI Universal Standards (2021), SASB standards (Real Estate), TCFD

Third-party Assurance: LRQA

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 9
• SDG 11
• SDG 12
• SDG 13

UDR's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• SmartHome technology
• Smart building technology
• Onsite renewable energy

Awards & Recognition

• Newsweek’s America’s Most Sustainable Companies (3 consecutive years)
• Just Capital’s Most Just Companies (2024)
• 2024 National Top Workplaces winner in Real Estate
• Outstanding Developer/Builder of the Year (2024 LEED Homes Awards)