Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Management
• Water Management
• Waste Management
• Diversity & Inclusion
• Employee Well-being
• Corporate Governance

Environmental Achievements

• Improved Energy Star certifications of owned SF from 64% (2019) to 74% (2020)
• Improved average Energy Star score from 73 (2019) to 78 (2020)
• Reduced energy intensity by 23% compared to baseline (2016)
• Reduced water intensity by 31% compared to baseline (2018)
• Achieved WELL Health-Safety Rating at five buildings
• Finalized agreements and designs to build and operate two solar electricity generating systems

Social Achievements

• Continued commitment to Diversity & Equity through training and policy updates
• Launched a Gold Level Sponsorship of Project REAP
• Established scholarship and internship programs with Morehouse College and Howard University
• Supported communities by partnering with various organizations
• Continued COVID-19 relief efforts

Governance Achievements

• ISS Corporate Governance score of 1 (highest possible rating)
• Green Street’s 2019 Corporate Governance Rankings: 3rd out of all Office REITs
• First Green Bond Issuance

Climate Goals & Targets

Environmental Challenges

• Increasing operating costs due to increased pricing of resources
• Increasingly stringent building and energy codes
• Rising temperatures and natural disasters
• Energy grid and water distribution reliability
• Resource quality or availability

Mitigation Strategies

• Setting targets to reduce property energy and water consumption and improve landfill diversion rates
• Updating buildings with energy-efficient equipment
• Issuing green bonds
• Investing in building resilience
• Exploring and investing in on-site and locally distributed power
• Adopting a policy of incorporating renewable energy purchasing into supply contracts
• Utilizing LEED guidelines and BOMA 360 and ENERGY STAR standards

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Rising Temperatures and Natural Disasters
• Energy Grid and Water Distribution Reliability
• Resource Quality or Availability

Transition Risks

• Increasing Operating Costs
• Increasing Stringent Building and Energy Codes

Opportunities

• Reducing operating costs
• Providing additional amenities for tenants
• Providing healthier work environments and communities

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: ENERGY STAR, LEED, BOMA 360, WELL Health-Safety Rating

Awards & Recognition

• 2021 ENERGY STAR Partner of the Year Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Recognized as a 2022 Energy Star Partner of the Year for the second consecutive year.
• Top 5 companies nationwide with the most BOMA360 certified buildings
• Decreased energy use intensity by 25% and GHG emissions intensity by 31% compared to baseline.
• Invested $12M in HVAC and lighting improvements in 2021, contributing to a 5% year-over-year energy intensity reduction.
• Increased the average ENERGY STAR® score of our portfolio, up from 73 in 2019 to 79 in 2021.
• Entire multi-tenant portfolio awarded the WELL Health and Safety Rating

Social Achievements

• Launched a Gold-Level Sponsorship of Project REAP
• Established partnerships with two Historically Black Colleges and Universities (HBCUs) to provide need-based, scholastic support and increased student resources in commercial real estate
• Added employee benefits: Paid Parental Leave, Infertility Medical Coverage, Adoption Assistance, Flex Work Schedules, Comp Structure Changes, Stock Incentive Conversion, Additional Volunteer Time, Employee Recognition Program

Governance Achievements

• Participating in first GRESB Real Estate Assessment in 2022 (due to investor feedback)

Climate Goals & Targets

Environmental Challenges

• Increasing operating costs (electricity, natural gas, water, waste removal)
• Increasingly stringent building and energy codes
• Future implementation of GHG emissions regulations
• Maintaining tenant comfort with rising temperatures
• Natural disasters
• Energy grid and water distribution reliability
• Resource quality or availability

Mitigation Strategies

• Set targets to reduce property energy and water consumption and improve landfill diversion rates; investing in energy-efficient projects.
• Continuously updating buildings with energy-efficient equipment; engaging with tenants regarding environmental initiatives.
• Set reduction targets for Scope 1 and 2 GHG emissions; including GHG emissions as a project investment priority; tracking location- and market-based emissions.
• Utilizing thermal analysis for building upgrades; increasing cooling capacity along with increased cooling efficiency.
• Ensuring each property has an updated Business Continuity and Disaster Recovery Plan; completing climate risk analysis for new market expansions.
• Exploring and investing in on-site and/or locally distributed power; incorporating renewable energy purchasing clauses into supply contracts.
• Utilizing LEED guidelines as minimum standards for construction; operating according to BOMA 360 and ENERGY STAR standards.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Rising temperatures and ability to maintain tenant comfort
• Natural disasters

Transition Risks

• Increasing stringent building and energy codes
• Future implementation of GHG emissions regulations

Opportunities

• Energy efficiency improvements reducing operating costs; renewable energy investments

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: ENERGY STAR, BOMA 360, LEED, WELL Health-Safety

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2022 Energy Star Partner of the Year
• Green Lease Leader (Silver)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced Energy Use Intensity by 23% (surpassing 20% goal)
• Reduced GHG Emissions Intensity by 29% (surpassing 20% goal)
• Reduced Water Use Intensity by 26% (surpassing 20% goal)
• Achieved 87% ENERGY STAR Portfolio Certification (up from 79% in 2021)
• Earned a GRESB Green Star in inaugural assessment
• Finalized a Decarbonization Plan to reduce emissions by 50% by 2030 and achieve net-zero by 2050

Social Achievements

• Renewed WELL Health-Safety Rating for entire portfolio
• Incorporated employee survey feedback into benefit structure and other areas
• Continued Gold-Level Sponsorship of Project REAP
• Partnered with HBCUs to provide scholarships

Governance Achievements

• Achieved maximum level of alignment (“A”) with TCFD recommendations
• 97% of eligible portfolio certified as BOMA 360 Performance building
• Third-party assurance of selected ESG metrics by ISOS Group, Inc.

Climate Goals & Targets

Environmental Challenges

• More frequent/intense natural disasters
• Increasing stringent building and energy codes
• Shortage of experienced building engineers
• Rising temperatures impacting tenant comfort
• Increasing utility and insurance rates
• Energy grid and water distribution reliability
• Changes to resource quality or availability
• Noncompliance with future carbon emissions caps and decarbonization policies
• Failure to meet long-term carbon emissions goal

Mitigation Strategies

• Developed a Decarbonization Plan with portfolio and regional strategies
• Committed to SBTi in line with the Paris Agreement
• Expanded use of water detection devices
• Retrofitted toilets and faucets with low-flow fixtures
• Implemented Cooling Tower Optimization
• Formalized an Exterior Maintenance Policy to minimize irrigation
• Investment in energy efficiency and working with tenants to reduce energy use
• Considering on-site renewable energy opportunities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• More frequent/intense natural disasters (lightning, tornado, strong wind, cold wave)
• Flooding

Transition Risks

• Increasing utility and insurance rates
• Increasing stringent building and energy codes
• Noncompliance with future carbon emissions caps and decarbonization policies

Opportunities

• Further improve the safety, resilience, and reliability of our properties
• Deepen tenant relationships by working to meet common sustainability goals
• Enhance tenant amenity offerings

Reporting Standards

Frameworks Used: SASB, TCFD, GRESB

Certifications: ISO 14001, ENERGY STAR, LEED, WELL Health-Safety, BOMA 360

Third-party Assurance: ISOS Group, Inc.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Low-flow fixtures
• LED lighting
• Hybrid waterless urinals
• Smart building technology (ASO platform)

Awards & Recognition

• ENERGY STAR Partner of the Year (3 years in a row)
• ENERGY STAR Certification Nation Premier Member
• 2022 Silver Green Lease Leader
• GRESB Green Star
• BOMA TOBY Awards

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Recognized as ENERGY STAR® Partner of the Year – Sustained Excellence for the fourth consecutive year.
• Improved average ENERGY STAR score from 79 to 82.
• Increased LEED® certified portfolio from 50% (2022) to 69% (2023).
• Achieved a 5-star rating on the 2023 GRESB Real Estate Assessment.
• 97% of eligible portfolio certified as BOMA 360 Performance Building.

Social Achievements

• Expanded employee volunteer programs and financial support of charitable organizations.
• Funded Piedmont’s Scholar Program supporting students at Historically Black Colleges and Universities.
• Partnership with Project REAP to bring multicultural professionals into commercial real estate.

Governance Achievements

• Earned top decile scores in 2023 for “Governance” ratings by Institutional Shareholder Services.

Climate Goals & Targets

Environmental Challenges

• More frequent/intense natural disasters resulting in property damage, operational disruption, and increased insurance rates.
• Rising temperatures impacting tenant comfort while reducing energy consumption.
• Energy grid and water system reliability.
• Changes to resource quality or availability.
• Increasing utility and insurance rates.
• Stringent building codes and performance standards.
• Shortage of experienced building engineers.
• Failure to meet long-term emissions goal of net zero by 2050.

Mitigation Strategies

• Installed leak detection devices, worked with insurance providers, created an Emergency Response Preparedness Committee.
• Monitored building envelope performance, upgraded HVAC systems.
• Explored and invested in on-site and locally distributed power.
• Used LEED guidelines, BOMA 360, and ENERGY STAR standards.
• Undertook Scope 3 emissions feasibility analysis.
• Optimized resource consumption, invested in asset improvements.
• Engaged tenants in environmental initiatives, considered green bonds.
• Worked with ABM on workforce training, piloted innovative technologies.
• Invested in energy efficiency projects, considered renewable energy opportunities.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wind
• Extreme heat
• Water stress

Transition Risks

• Increasing utility and insurance rates
• Stringent building codes and performance standards

Opportunities

• Energy efficiency improvements
• Renewable energy opportunities

Reporting Standards

Frameworks Used: GRESB, SASB, TCFD

Certifications: ENERGY STAR, LEED, BOMA 360

Third-party Assurance: ISOS Group, Inc.

Awards & Recognition

• ENERGY STAR Partner of the Year – Sustained Excellence
• GRESB 5-star rating
• BOMA TOBY Awards