Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Corporate Governance

Environmental Achievements

• 2.9% annual average reduction in energy intensity since 2014 (cumulative 10% improvement)
• 3.6% reduction in CO2 emissions (Scope 1 and 2)
• 5% reduction in water usage
• 4% increase in waste diversion

Social Achievements

• Launched Washington Housing Initiative, raising $104 million for affordable housing and preserving workforce housing
• Conducted first employee engagement survey with excellent outcomes (84% total engagement, 89% would recommend JBG Smith as a place to work)
• Added a Vice President of Diversity and Inclusion to the team

Governance Achievements

• Amended bylaws to provide for a majority voting standard in uncontested trustee elections
• Regularly reviews best practices and proactively engages with investors on corporate governance issues

Climate Goals & Targets

Environmental Challenges

• Compliance with DC Clean Energy Omnibus bill requiring all electricity purchased in the District to be renewable by 2032 and setting building energy performance standards
• Potential for unplanned capital improvements, increased development costs, and further engagement to manage occupant energy use due to climate change regulations
• Risk of fines for non-compliance with energy performance standards, decreased demand, and decline in value for properties that cannot meet standards

Mitigation Strategies

• Initiatives designed to manage resources efficiently and drive down energy and water consumption
• Leveraging local jurisdictions' programs offering financial incentives for improving energy efficiency (bonus density, property tax discounts)
• Conducting climate risk assessment to inform asset management planning and design of new developments

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Specifying products with low or no VOCs
• Using environmentally friendly cleaning products

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Sea level rise
• Heat stress

Transition Risks

• Regulatory changes (e.g., DC Clean Energy Omnibus bill)
• Market shifts towards lower-carbon economy

Opportunities

• Development of energy-efficient products and services
• Financial incentives for improving energy efficiency

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: LEED, ENERGY STAR, BOMA 360

Third-party Assurance: Codegreen Solutions (limited assurance)

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• 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)

Initiatives are aligned with various UN SDGs, including those related to affordable housing, clean energy, sustainable cities, and responsible consumption and production.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• GRESB Global Sector Leader in diversified assets
• NAIOP DC/MD Awards of Excellence for Best Corporate Responsibility Program
• Green Lease Leader Gold Award
• National SatisFacts Resident Satisfaction Company Award
• Washington Business Journal Philanthropic Awards (#8 for volunteer hours, #6 for giving)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Corporate Governance

Environmental Achievements

• 11% reduction in like-for-like Scope 1 and 2 CO2e (MT)
• 17% reduction in like-for-like energy consumption
• 12% reduction in like-for-like water consumption
• 2% increase in waste diversion
• Completed first on-site solar installation at The Wren (51.1kW, expected 60,000 kWh/year)
• 8.8 million square feet of LEED certified space
• 4.1 million square feet of ENERGY STAR certified commercial space
• 1900 N Street LEED Gold certification
• 4747 Bethesda Avenue 1-Star Fitwel rating

Social Achievements

• Launched Washington Housing Initiative (WHI) Impact Pool, securing ~$115 million in investor commitments and deploying ~$22 million to preserve ~1,150 affordable housing units
• 92% overall employee engagement, 96% would recommend JBG SMITH as a place to work
• Decline in employee turnover for the second consecutive year
• 2020 internship class 54% diverse, 30% from new partnerships with diverse colleges/universities
• Over 500 residents participated in virtual apartment gardening class
• Nearly 300 residents participated in virtual beer tasting

Governance Achievements

• Strengthened Board of Trustees with the appointment of Phyllis R. Caldwell
• Advanced succession planning with three executive promotions
• ESG strategy integrated into annual report, proxy statement, annual ESG report, corporate website, and investor presentations

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (flooding, sea level rise, heat stress)
• Transitioning to a low-carbon economy (compliance with regulations, potential capital improvements)
• Housing affordability in the DC metro area
• COVID-19 pandemic impact on operations, tenants, and residents

Mitigation Strategies

• Climate risk assessment conducted by Four Twenty Seven
• Strategic sustainability plan with targets for energy, water, and embodied carbon reduction by 2030
• Washington Housing Initiative to address housing affordability
• COVID-19 response plan including enhanced cleaning, remote work capabilities, and support for tenants and residents

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Specifying products with low or no VOCs
• Green cleaning practices

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Sea level rise
• Heat stress

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• On-site solar installations

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive Option, UN Sustainable Development Goals, SASB, TCFD

Certifications: LEED, ENERGY STAR, Fitwel

Third-party Assurance: CodeGreen Solutions (limited assurance)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• 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

Various initiatives throughout the report align with these SDGs

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 5-Star GRESB sustainability rating
• Green Lease Leader
• NAIOP DC/MD Best of the Best Awards

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved carbon neutrality across our 16.8 million square foot operating portfolio
• Added 20 electric vehicle (EV) charging stations to our portfolio, increasing our total available EV chargers to 144
• Achieved Fitwel Viral Response Certification for all our office REIT assets and became a Fitwel Champion

Social Achievements

• Launched JBGS H.I.R.E.S (Helping Individuals Reach Employment Success) Workforce Development Program
• Recruited an internship class that was 64% diverse, a 10% increase from the prior year
• Introduced The Lion’s Guild – JBG SMITH’s first formal mentorship program
• Reached 33% women representation in Executive Leadership (Board of Trustees and Senior Leadership)

Governance Achievements

• Established and published our Board of Trustees’ long-term diversity commitment
• Launched company-wide D&I Training
• Released the inaugural D&I Report

Climate Goals & Targets

Environmental Challenges

• Supply chain shortages and disruptions
• Labor scarcities
• Redesigns and retrofits of the modern workplace
• Climate change impacts (flooding, sea level rise, heat stress)
• Compliance with carbon emission reduction standards and regulations

Mitigation Strategies

• Developed a master plan to reduce energy and water usage by 2030
• Conducted a climate risk assessment of assets in Near-Term and Future Development Pipelines
• Focusing on envelope design elements, reducing both solar heat gain and the use of refrigerants, and continuing operations in the event of utility interruptions
• Offsetting scope 1 emissions with verified carbon offsets and applying renewable energy credits (RECs) for scope 2 emissions

Supply Chain Management

Responsible Procurement

• Specifying products that meet sustainability standards for recycled content, VOC levels, and regional production

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Sea Level Rise
• Heat Stress

Transition Risks

• Compliance with carbon emission reduction standards and regulations

Reporting Standards

Frameworks Used: GRI Standards: Core Option, UN SDGs, SASB, TCFD

Third-party Assurance: CodeGreen Solutions (Environmental data)

UN Sustainable Development Goals

• 3
• 6
• 7
• 9
• 11
• 12

See UN SDGs Index in Appendix

Awards & Recognition

• William L. Berry Sustainable Communities Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Development
• Employee Well-being

Environmental Achievements

• Maintained carbon neutrality across our 14.1 million square foot operating portfolio
• Reduced operational energy use
• Reduced operational water use
• Increased total waste diversion rate
• Certified first multifamily Fitwel asset in DC

Social Achievements

• Increased total workforce housing preservation to 2,565 confirmed units
• Inclusion in the 2023 Bloomberg Gender-Equality Index
• The Washington Post’s Top Workplaces 2022
• LinkedIn’s Top Companies Real Estate 2022
• Newsweek’s America’s Most Responsible Companies 2022
• Launched the 2nd cohort of the “Lion’s Guild” mentorship program
• 71% diverse summer intern class company-wide

Governance Achievements

• Established cross-functional ESG Committee to advise the Board on ESG oversight and climate change risk management
• Conducted two ESG roadshows with the majority of our top 10 investors
• Updated organizational mission and core values
• Developed an ESG assurance process

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (heat stress, flooding)
• Regulatory changes (SEC proposed amendments on climate-related disclosures)
• Supply chain disruptions (not explicitly stated, but implied through discussion of responsible procurement)

Mitigation Strategies

• Climate risk assessment of Development Pipeline focusing on envelope design, reducing refrigerant use, and fortifying energy management
• Developed and formalized processes and internal controls for ESG data assurance
• Implemented VendorShield compliance program, including supplier diversity initiatives and responsible procurement practices

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• VendorShield compliance program
• Updated contracts with diversity, equity, and inclusion provisions
• Buying Policy prioritizing sustainable and diverse suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heat stress

Transition Risks

• Regulatory changes
• Increased development costs due to compliance with carbon emission reduction standards

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, UN SDGs, SASB, TCFD

Certifications: LEED, Fitwel, ENERGY STAR, BOMA 360

Third-party Assurance: LRQA (limited assurance for environmental data)

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 9
• Goal 11
• Goal 12
• Goal 13

See UN SDGs Index in Appendix

Sustainable Products & Innovation

• Converged digital infrastructure platform (5G, fiber, edge data centers)

Awards & Recognition

• Bloomberg Gender-Equality Index
• Washington Post’s Top Workplaces
• LinkedIn’s Top Companies Real Estate
• Newsweek’s America’s Most Responsible Companies