Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Water and Waste Management
• Tenant Sustainability Management
• Employee Engagement/Culture
• Business Ethics
• Responsible Land Stewardship
• Diversity & Inclusion

Environmental Achievements

• Reduced energy consumption by 1.1% across its commercial real estate portfolio in 2019, equivalent to a 700,000 kWh reduction and $162,000 in savings.
• Produced 40,849 MWh of direct renewable energy and 67,220 MWh of indirect renewable energy in 2019.
• Recycled more than 115,000 tons of concrete and asphalt annually, making it Hawaii's second-largest recycler by volume for construction & demolition recycling.
• Incorporated sustainable elements in its CRE portfolio, including adaptive reuse of buildings, energy-efficient fixtures, PV systems, EV charging stations, and eco-friendly landscaping.

Social Achievements

• Established three employee-led diversity and inclusion initiatives: A&B Pride, Green Team, and Women’s Leadership.
• Conducted an annual employee survey showing high levels of employee satisfaction (87% are proud to work for A&B, 86% feel valued, 92% have a good working relationship with their manager).
• Provided A&B scholarships to employees' families and an annual safety drawing contest for employees' children.
• Contributed $1.02 million to 281 organizations in 2019 through its Kokua Giving program.

Governance Achievements

• Maintained a Board of Directors with 71% independent directors and a diverse representation of gender and ethnicity.
• Achieved a “1” ranking (highest score) in governance by Institutional Shareholder Services.
• Implemented a robust shareholder engagement program, meeting with investors representing approximately 65% of its stock.

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including extreme weather events and rising sea levels affecting properties in flood zones (approximately 17% of its CRE portfolio is located within 100-year flood zones).

Mitigation Strategies

• Taking preventative measures for existing properties, making improvements during redevelopment, and maintaining appropriate casualty insurance.
• Pursuing longer-term energy initiatives to reduce carbon emissions.
• Identifying climate risks during the acquisition process.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Cost recovery clause in leases for energy efficiency improvements.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, high winds)
• Rising sea levels

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: LEED Silver (for Kamalani project)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Kupaa Award from Hawaii Nature Center

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Water and Waste Management
• Climate Change
• Tenant Sustainability Management
• Employee Engagement/Culture
• Business Ethics

Environmental Achievements

• Completed a 1.3-megawatt rooftop solar system at Pearl Highlands Center, offsetting approximately 15% of the center's energy usage.
• 100% of properties now utilize ENERGY STAR Portfolio Manager for better tracking of energy and water consumption.
• Conducted comprehensive energy audits on eight properties, identifying energy-efficient lighting retrofit opportunities.

Social Achievements

• Expanded learning and professional development opportunities for employees.
• Augmented health and wellness benefits and programs for employees.
• Rolled out DEI training for all managers.
• Kokua Giving program directed $975,000 in charitable contributions to 181 nonprofits.

Governance Achievements

• Maintained alignment of ESG efforts and disclosures with the SASB Standards.
• Took action to identify and disclose climate-related risks and opportunities in alignment with the TCFD framework.
• Received a “1” ranking (highest score) in governance by Institutional Shareholder Services.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks including impacts from extreme climate events, rising sea levels, and increased environmental regulations.
• Tenant practices (beyond A&B's control) comprise the vast majority of utility consumption and GHG emissions.

Mitigation Strategies

• Establishment of emergency preparedness plans, tenant communication systems, adequate insurance policies.
• Identifying climate risks in due diligence for acquisitions, tracking properties in flood zones, monitoring regulations.
• Implementing energy efficiency initiatives, conducting energy audits, incorporating renewable energy generation.
• Tenant sustainability outreach, green lease terms, cost recovery clause for energy efficiency improvements.

Supply Chain Management

Responsible Procurement

• Eco-friendly materials and products in construction/redevelopment projects.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels
• Flooding
• Wildfires

Transition Risks

• Increased environmental regulations

Opportunities

• Renewable energy generation
• Energy efficiency improvements

Reporting Standards

Frameworks Used: SASB, TCFD

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Water and Waste Management
• Tenant Sustainability Management
• Employee Engagement/Culture
• Business Ethics

Environmental Achievements

• Completed a 464-kW solar system at Kaka‘ako Commerce Center.
• Completed refresh of Manoa Marketplace incorporating sustainable features.
• Completed 33 LED lighting retrofit projects since 2017, including 8 in 2023.

Social Achievements

• Launched first annual Collaboration & Learning Day.
• Rolled out DEI training for all employees.
• Introduced a new Diversity, Equity, Inclusion & Belonging (DEIB) policy.
• Implemented a three-band salary-based health insurance premium model.
• Added Chiropractic, Acupuncture, and Massage Therapy (CAM) benefits.
• Announced a new Lifestyle Spending Account (LSA) benefit for 2024.
• Introduced a parental leave policy for 2024.
• A&B Kokua Giving committed $50,000 in emergency aid to Maui nonprofits after the Lahaina wildfires.

Governance Achievements

• Appointed two new directors to the Board.
• Successful CEO transition.
• 100% Board & Committee attendance.

Climate Goals & Targets

Environmental Challenges

• Variability of tenant use and operation impacting water consumption reduction goals.
• Tenant consumption being a significant contributor to property energy usage and GHG emissions.
• Increased energy usage accompanying portfolio growth.

Mitigation Strategies

• Proactive outreach to tenants to encourage sustainable practices.
• Developing a comprehensive portfolio-wide water conservation strategy.
• Implementing energy efficiency retrofits and installing on-site photovoltaic (PV) systems.
• Conducting comprehensive energy audits every five years.

Supply Chain Management

Responsible Procurement

• Use of eco-friendly materials and products in development and redevelopment projects.

Climate-Related Risks & Opportunities

Physical Risks

• Hurricane
• Flooding
• Heat stress
• Drought & wildfire
• Water stress
• Sea level rise

Transition Risks

• Increased federal, regional, and local regulations related to carbon and greenhouse gas (GHG) reductions

Opportunities

• Development of energy-efficient products
• On-site renewable energy generation

Reporting Standards

Frameworks Used: SASB, TCFD