Climate Change Data

Granite Real Estate Investment Trust and subsidiaries and Granite REIT Inc.

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance
  • Resilience

Environmental Achievements

  • Spent over $3 million on energy-saving initiatives (EVCS, bike racks, LED lighting, high-efficiency heating equipment), with tenants spending an additional $2.5 million; expected to significantly reduce energy consumption.
  • Several properties received third-party green building certifications (Green Globes, BREEAM).
  • Reduced printing by approximately 70% (330k pages) compared to 2019.

Social Achievements

  • Launched inaugural employee engagement survey in April 2021.
  • Hosted various social and charity events.
  • Invested in employee professional development.

Governance Achievements

  • Completed the GRESB Assessment for the second year.
  • Incorporated ESG+R disclosures in investor presentations and financial disclosures.
  • Published annual ESG+R report.

Climate Goals & Targets

Long-term Goals:
  • Plant at least 100,000 trees by 2030.
  • Certify 100% of new developments to a third-party green building certification standard.
Medium-term Goals:
  • Reduce energy, emissions, and water consumption by 25% by 2030 (2.5% annual reduction).
  • Increase energy, emissions, water, and waste data coverage to 50% by 2030.
  • Upgrade lighting in 80% of modern facilities to LED by 2030.
  • Achieve 30% third-party green building certifications by floor area by 2030.

Environmental Challenges

  • COVID-19 pandemic impacted operations and data collection.
  • Increased ESG+R and climate risk questions from investors and stakeholders.
Mitigation Strategies
  • Implemented work-from-home policies and safety measures.
  • Regularly evaluate and update ESG+R program and processes to mitigate risks.
  • Collecting energy, water, and waste/recycling data from tenants.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Floods
  • Hurricanes
  • Heat stress
  • Water stress
  • Wildfires
  • Earthquakes
Transition Risks
  • Increasing emissions regulations
  • Reputation among stakeholders
  • Technology advancements
Opportunities
  • Energy efficiency improvements
  • Renewable energy generation

Reporting Standards

Frameworks Used: GRESB, SASB, CDP, GRI, TCFD

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:93,673 tCO2e/year
Scope 1 Emissions:459 tCO2e/year
Scope 2 Emissions:5,794 tCO2e/year
Scope 3 Emissions:72,485 tCO2e/year
Renewable Energy Share:1.7% of total energy use
Total Energy Consumption:254,122 MWh/year
Water Consumption:288,832 m3/year
Waste Generated:3,365 tons/year

ESG Focus Areas

  • Environmental
  • Social
  • Governance
  • Resilience

Environmental Achievements

  • Reduced landlord-controlled energy by 14.7% (absolute) and 14.8% (intensity) from 2019-2021.
  • Reduced landlord-controlled emissions by 8.0% (absolute) and 73.7% (intensity) from 2019-2021.
  • Reduced landlord-controlled water by 2.1% (absolute) and 29.4% (intensity) from 2020-2021.
  • Installed solar PV systems with a combined peak electricity generation capacity of 8.5 MW (exceeding the 5 MW target by 2025).
  • Planted 12,500 trees.

Social Achievements

  • Completed tenant and employee satisfaction surveys.
  • Provided ESG+R resources to tenants.
  • Contributed over $840 CAD per income-producing property to charitable causes.

Governance Achievements

  • Completed ESG+R acquisition assessments on 100% of potential acquisitions.
  • Maintained compliance with all known local government benchmarking disclosure requirements.

Climate Goals & Targets

Long-term Goals:
  • Plant 100,000 trees by 2030.
Medium-term Goals:
  • Upgrade lighting in 80% of modern logistics/distribution facilities to LED by 2030.
  • Achieve 30% third-party GBCs by floor area by 2030.
  • Increase the total peak electricity generation capacity from solar PV systems to 24 MW by 2025.
Short-term Goals:
  • Increase energy, water, and waste coverage to 50% by 2030.
  • Reduce landlord-controlled energy, emissions, and water by 25% on an intensity basis by 2030.
  • Develop a strategic EV charging plan.

Environmental Challenges

  • Tracking total whole-building (landlord and tenant) utility data across the portfolio due to a significant portion of triple-net leases.
  • Obtaining tenant-controlled data for Scope 3 GHG emissions.
Mitigation Strategies
  • Exploring innovative solutions to collaborate with tenants on data tracking.
  • Collaborating with tenants to track utility data and expanding total coverage of energy data at properties.
  • Incorporating green lease language into standard leases.

Supply Chain Management

Responsible Procurement
  • Sourcing sustainable materials where possible; considering recycled, renewable, biodegradable, and recyclable materials.

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Wildfire
  • Hurricane/typhoons
  • Sea level rise
  • Heat stress
  • Water stress
Transition Risks
  • Building efficiency standards
  • Carbon fines
  • Higher energy costs
Opportunities
  • Renewable energy generation
  • Energy efficiency improvements

Reporting Standards

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

Third-party Assurance: Lucideon CICS (2022, aligned with ISO 14064-3)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:64,846 MTCO2e
Scope 1 Emissions:513 MTCO2e
Scope 2 Emissions:6,045 MTCO2e
Scope 3 Emissions:90,080 MTCO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:319,629 MWh
Water Consumption:354,185 m3
Waste Generated:12,129 tonnes
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance
  • Resilience

Environmental Achievements

  • Completed a large LED lighting retrofit project at 6201 Green Pointe Drive South, installing 359 interior and 19 exterior fixtures.
  • Obtained 3 new construction green building certifications and 8 operational green building certifications.
  • Completed 3 new developments in accordance with the Green Bond Framework, with construction commencing on another 10.

Social Achievements

  • Provided Sustainability Reference Guides and checklists to 100% of tenants.
  • Donated a workshop to a local school.
  • Achieved a 91.3% employee retention rate.
  • Contributed an average of $590 CAD per employee towards training and development.
  • Donated over $170,000 CAD across Canadian, US, and European regions.

Governance Achievements

  • Reported ESG+R performance in the annual report, aligning with GRESB, SASB, CDP, GRI, and TCFD frameworks.
  • Reviewed and updated policies to maintain compliance with benchmarking requirements and regulations.
  • Provided company-wide training on cybersecurity and awareness.

Climate Goals & Targets

Long-term Goals:
  • Plant at least 100,000 trees by 2030.
Medium-term Goals:
  • Achieve 30% third-party green building certifications by floor area by 2030.
  • Upgrade lighting in 80% of modern facilities to LED by 2030.
  • Achieve 24 MW of peak solar capacity by 2025.
Short-term Goals:
  • Increase energy, emissions, water, and waste data coverage to 50% by 2030.
  • Reduce landlord-controlled energy, operational emissions, and water by 25% on an intensity basis by 2030.

Environmental Challenges

  • Difficulty in measuring absolute environmental metrics over time.
  • Challenges in collecting whole-building energy data due to triple-net leases and tenant participation.
  • Limited data coverage for water and waste due to tenant-controlled utilities.
Mitigation Strategies
  • Normalized environmental performance metrics by floor area.
  • Collaborating with tenants, implementing green lease language, and obtaining data directly from utility companies.
  • Implementing strategies to increase tenant engagement and data collection.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Considering materials made from recycled or renewable materials, biodegradable or recyclable, with recyclable packaging, energy-efficient, and backed by trustworthy labeling programs.

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Wildfire
  • Hurricane/typhoons
  • Sea level rise
  • Heat stress
  • Water stress
Transition Risks
  • Building efficiency standards and requirements
  • Carbon fines
  • Higher energy costs
Opportunities
  • Development of energy-efficient products
  • Renewable energy procurement

Reporting Standards

Frameworks Used: GRI Universal Standards, TCFD, SASB Real Estate Standards, GRESB

Certifications: LEED, BREEAM, Green Globes, DGNB

Third-party Assurance: Lucideon CICS

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance
  • Resilience

Environmental Achievements

  • Ranked 2nd out of 10 in the United States of America | Industrial GRESB peer group; score increased by 6 points compared to 2022.
  • Achieved 1st out of 9 in the North American Industrial | Listed | Tenant Controlled GRESB peer group for Standing Investments with a score of 79.
  • Total green bond offerings increased to $1.4 billion.
  • $1.161 billion of green bond net proceeds allocated towards Eligible Green Projects.
  • Increased peak generation capacity of onsite solar PV systems by 14.3 MW, bringing the total to 22.8 MW.
  • Obtained 25 new green building certifications (9 Two Green Globes and 16 IREM CSP certifications).
  • Exceeded the target of 30% third-party green building certifications by floor area by 2030, achieving 44%.

Social Achievements

  • Administered its second Employee Engagement Survey in May 2023.
  • Contributed at least 500 local currency per income-producing property toward charitable donations.
  • Assessed 100% of potential acquisitions for ESG+R and identified areas for improvement.
  • Established a hybrid working model.

Governance Achievements

  • Published Granite’s 3rd annual comprehensive Corporate ESG+R Report.
  • Ranked 10th and the top real estate entity in the 2023 Globe & Mail Board Games governance ranking.
  • Amended and restated the Declaration of Trust to align with evolving governance best practices and enhance unitholders’ rights.

Climate Goals & Targets

Medium-term Goals:
  • Increase energy, emissions, water and waste data coverage across Granite’s portfolio to 50% of its income-producing portfolio by 2030.
  • Support the production of new renewable energy through the installation of on-site solar PV systems with the capacity to generate 24 MW of electricity by 2025.
  • Achieve 30% third-party green building certifications by floor area by 2030.
Short-term Goals:
  • Reduce landlord-controlled energy, operational emissions (scope 1 and 2), and water by 25% on an intensity basis, per square foot, by 2030.

Environmental Challenges

  • Real estate sector challenges in 2023 due to increased borrowing costs and higher interest rates impacting asset values.
  • Increase in interest rates impacted leasing activity.
  • Demand for logistics space moderated globally to historical levels.
Mitigation Strategies
  • Established priorities for 2023: driving FFO, AFFO, and NAV per unit growth; executing development projects; advancing ESG program; disposing of non-core assets; and pursuing strategic opportunities.
  • Successfully executed on these priorities, delivering double-digit FFO per unit growth for the second consecutive year.
  • Opportunistically exploited difficult market conditions to drive NAV growth.
  • Maintained strong balance sheet with over $1.1 billion of liquidity and net leverage of 33%.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRESB, GRI, TCFD

Certifications: LEED, BREEAM, Green Globes, DGNB, IREM Certified Sustainable Properties (CSP)