Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Resilience

Environmental Achievements

• Achieved first-place ranking for U.S. Industrial Listed companies in GRESB® Real Estate Assessment.
• Over 8 million square feet of Green Building Certified SF.
• 235,220 lbs of waste diverted from landfills.

Social Achievements

• Implemented green lease language into standard lease form.
• $4,500 in employee-made charitable contributions.
• 138 employee volunteer hours in local communities.

Governance Achievements

• ISS Governance QualityScore of 1.
• Published first Corporate Responsibility Report aligned with SASB Real Estate Standards.
• Became a supporter of the TCFD reporting framework.

Climate Goals & Targets

Environmental Challenges

• Difficulty in measuring absolute metrics over time due to the fluid nature of the business.
• Limited access to tenant utility data due to the net lease nature of the portfolio.
• Challenges in achieving certain GBCs due to the industrial, net lease nature of the portfolio.

Mitigation Strategies

• Normalized environmental performance metrics by floor area.
• Tracks landlord-paid utility data and tenant data where available.
• Works with tenants to gain access to data and implement sustainable building improvements.
• Tenant outreach initiative to increase utility data coverage.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct encouraging sustainable practices and use of recyclable materials.

Climate-Related Risks & Opportunities

Physical Risks

• Increased acute hazards (earthquakes, wildfires, floods, storms)
• Chronic stressors (heat stress, water stress, sea level rise)

Transition Risks

• Increasing building benchmarking, audit, and performance mandate requirements
• Carbon pricing
• Increased utility costs

Opportunities

• Increasing efficiency
• Optimizing building controls
• Installing metering to obtain Scope 3 emissions
• Installing high-efficiency motors and equipment
• Installing solar and batteries
• Moving toward 100% LED lighting
• Supporting a move toward electrification

Reporting Standards

Frameworks Used: GRI Standards Core Option, SASB Real Estate Standards, TCFD

Third-party Assurance: Lucideon CICS

Awards & Recognition

• GRESB® first-place ranking for U.S. Industrial Listed companies

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Resilience

Environmental Achievements

• Reduced energy consumption by 73.01 MWh from 2021 to 2022 through energy conservation measures.
• Increased total square footage of green building-certified space in our portfolio year after year.
• 258,480 LBS of Waste Diverted from Landfills
• 7,000,000+ SF of cool roofs installed since 2020

Social Achievements

• Contributed to 20 different non-profit organizations and events.
• Employees logged over 80 hours of volunteer time in 2022.
• 92% employee retention rate in 2022.
• 468 Total Hours of Employee Training and Development
• 4.11/5 overall score in 2022 tenant satisfaction survey

Governance Achievements

• Aligned with industry and global reporting standards and frameworks such as GRESB, SASB, and GRI.
• Increased the diversity of our Board of Trustees.
• Achieved an Institutional Shareholder Services (“ISS”) Governance Quality Score of 1 in 2022.

Climate Goals & Targets

Environmental Challenges

• Fluctuating tenant utility consumption and other absolute metrics over time are difficult to assess due to the nature of the business as a real estate investor and not the end-user of the spaces.
• Limited data coverage on tenant utility consumption and waste generation.
• Difficulty in achieving certain green building certifications due to the industrial, triple-net-tenant characteristics of the portfolio.

Mitigation Strategies

• Actively engaging tenants to offer solutions and ideas on efficiency and conservation measures.
• Implementing a tenant outreach initiative to increase the coverage of utility data tracked across the portfolio.
• Working with tenants to obtain utility data and increase the use of green lease language.
• Utilizing Moody’s Climate on Demand climate analytics software to identify potential physical risk exposure from climate change across its portfolio.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct covering business ethics, diversity and inclusion, labor standards, environmental standards, and responsible sourcing.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (earthquakes, wildfires, floods, storms)
• Natural disasters
• Drought
• Heat stress
• Sea-level rise

Transition Risks

• Increased building benchmarking
• Audit and performance mandated requirements
• Emerging technologies
• Fluctuating costs of carbon fines and renewable energy certificates
• Shifts in energy supply and utility costs

Opportunities

• Increasing efficiency
• Optimizing building controls around consumption
• Installing metering to obtain Scope 3 emissions
• Prioritizing high-efficiency equipment at replacement
• Installing solar and battery storage where feasible
• Moving toward 100% LED lighting
• Supporting a move toward electrification

Reporting Standards

Frameworks Used: GRESB, SASB, GRI, TCFD

Certifications: ENERGY STAR, BREEAM In-Use

Third-party Assurance: Lucideon CICS

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions

LXP's ESG+R objectives are aligned with these SDGs through initiatives related to employee well-being, diversity and inclusion, training, community engagement, green building, energy and water conservation, emissions reduction, and governance.

Awards & Recognition

• 2022 Best Companies to Work for in New York
• Featured on the 2022 Bloomberg Gender Equality Index

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Resilience

Environmental Achievements

• Completed first GHG inventory
• Installed first LXP-sponsored solar array (207 kW peak capacity)
• Reached green building certifications across 32% of portfolio square footage (5M+ SF secured in 2023)

Social Achievements

• Achieved 4.09/5 ranking on tenant satisfaction survey (beating Kingsley Index)
• Maintained inclusion in Bloomberg Gender Equality Index
• Employees dedicated 103 hours to volunteering
• Completed 370 hours of employee training
• Selected as a 2023 Best Company to Work for in New York
• Hosted an internship program
• Donated over $40k to DEI-focused charities

Governance Achievements

• Named 2023 Green Lease Leader with Gold recognition
• Named a 2023 Gamechanger to Watch by CohnReznick
• Attained 1st place ranking in U.S. Industrial Peer Group for GRESB Public Disclosure (A score with 96/100)
• Maintained ethnic and gender diversity of 62.5% for Board of Trustees

Climate Goals & Targets

Environmental Challenges

• Limited access to tenant utility data due to the net lease nature of LXP's portfolio (99% tenant-controlled)
• Geographical location of properties and administrative barriers impacting data collection
• Climate-related physical risks (extreme weather, natural disasters)
• Transitional risks (regulatory changes, market shifts, emerging technologies)

Mitigation Strategies

• Tenant outreach initiative to increase utility data coverage
• Use of Moody’s Climate on Demand tool to assess climate-related physical risks
• Implementation of mitigation measures and emergency preparedness plans for high-risk assets
• Regular monitoring of energy disclosure and benchmarking, audit and performance target ordinances
• Annual reevaluations of portfolio-level positioning in relation to energy markets, carbon pricing, REC purchasing and technological adaptations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters
• Drought
• Heat stress
• Sea-level rise

Transition Risks

• Increased building benchmarking
• Audit and performance mandated requirements
• Emerging technologies
• Fluctuating costs of carbon fines and renewable energy certificates
• Shifts in energy supply and utility costs

Opportunities

• Increasing efficiency
• Optimizing building controls
• Installing metering
• Prioritizing high-efficiency equipment
• Installing solar and battery storage
• Moving toward 100% LED lighting
• Supporting a move toward electrification

Reporting Standards

Frameworks Used: TCFD, SASB, GRI

Certifications: ENERGY STAR®

Third-party Assurance: Lucideon CICS (for energy, GHG emissions, water, and waste data)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

LXP's ESG+R objectives align with these SDGs through initiatives related to employee well-being, diversity and inclusion, community engagement, energy efficiency, and climate risk management.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2023 Green Lease Leader (Gold)
• 2023 Gamechanger to Watch (CohnReznick)
• 1st Place U.S. Industrial Peer Group for GRESB Public Disclosure
• 2023 Best Company to Work for in New York