Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Closed 1.3 million sq. ft. of new investments in green buildings, representing 26% of our total 2020 investment volume
• Moved our New York City headquarters to a LEED-Gold and WELL-certified building
• Expansion and solar roof installation for Sonae MC facility in Portugal (generating 4,000 MWh/year)
• Redevelopment of a warehouse in Lehigh Valley, PA into a LEED-certified distribution center
• BREEAM-Excellent expansion and 1,000,000 sq. ft. solar roof installation for Nippon Express in Rotterdam
• Build-to-suit financing for Cuisine Solution’s LEED-certified facility in San Antonio, TX

Social Achievements

• Signed the CEO Act!on Pledge for Diversity & Inclusion
• Achieved 30% female representation on our Board of Directors
• Recognized by Women on Boards as a “Winning” Company for Board Diversity
• Included as a constituent in the 2021 Bloomberg Gender-Equality Index
• Increased corporate giving by more than 25% in 2020
• Implemented firm-wide Interpersonal and Systemic Bias and ally skills training (100% participation)

Governance Achievements

• Maintained the highest QualityScore rating of “1” by ISS in Governance
• Increased female representation on the Board to 30%

Climate Goals & Targets

Environmental Challenges

• Lack of direct control over energy usage and environmental practices in triple-net leased properties
• COVID-19 pandemic and its impact on employees and operations
• Heightened cybersecurity risks due to remote work environment

Mitigation Strategies

• Launched a program to collect tenant energy usage data globally
• Implemented a mandatory global remote work environment, provided stipends, and enhanced communication
• Implemented additional employee training and outreach efforts, adjusted internal controls, and conducted a tabletop exercise to evaluate business continuity plan

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• Zero Hunger
• Good Health and Well-Being
• Quality Education
• Gender Equality
• Industry, Innovation and Infrastructure
• Responsible Consumption and Production
• Life on Land

Awards & Recognition

• Women on Boards “Winning” Company
• Bloomberg Gender-Equality Index constituent (2021)
• Cuisine Solutions facility named 2021 “Sustainable Plant of the Year”

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Published 5th annual ESG Report, our first with reference to the TCFD framework
• Obtained third-party verification for our Scope 1 and Scope 2 emissions
• Achieved Green Lease Leader Gold level recognition for two consecutive years
• Allocated full proceeds from our inaugural green bond
• Launched CareySolar™, W. P. Carey’s solar solution
• 7.5M sq. ft. of green-certified buildings (4.3% of total sq. ft.)

Social Achievements

• Certified as a Great Place to Work®
• Included as a Bloomberg Gender-Equality Index constituent for third consecutive year
• Maintained a “1” QualityScore Governance Rating from Institutional Shareholder Services (ISS)
• Voluntary employee turnover remained low, 10% for 2022
• Increased corporate donations by over 10% year-over-year

Governance Achievements

• Many governance provisions recognized as best practices
• Recently adopted Human Rights Policy
• Women now represent 36% of our Board

Climate Goals & Targets

Environmental Challenges

• As a net lease REIT, the majority of our properties’ emissions are indirect (Scope 3), requiring data collection from tenants.
• Managing climate-related risks impacting real estate assets.

Mitigation Strategies

• Launched a program to collect Scope 3 tenant energy usage data globally.
• Completed climate risk assessment of portfolio in early 2023 with insurance provider.
• Incorporated green lease provisions into new leases.
• Engaging with tenants on sustainability efforts and projects.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Inland, coastal, and rainwater flooding, wind, storms, hail, wildfire, earthquakes

Opportunities

• Renewable energy opportunities, building energy retrofits, green building certifications

Reporting Standards

Frameworks Used: TCFD, GRI

Third-party Assurance: HXE Partners (limited assurance for Scope 1 and 2 emissions)

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

The report details how W.P. Carey's initiatives contribute to these goals through various programs and partnerships.

Sustainable Products & Innovation

• CareySolar™

Awards & Recognition

• Great Place to Work® Certification
• Outstanding Corporate Leadership Award from the Dominican Women’s Development Center

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased tenants enrolled in our electricity usage data reporting program to more than 50% as a percentage of ABR and square footage
• Disclosed like-for-like Scope 1 and 2 emissions data for the first time
• Achieved Green Lease Leader Gold level recognition for the third consecutive year
• 82% of 2023 investment volume was completed with a green lease

Social Achievements

• Certified as a Great Place to Work® in the U.S. for the second consecutive year
• Voluntary turnover was 5% in 2023, remaining significantly lower than real estate peers
• Increased corporate giving by 9% year-over-year, donating more than $660,000 to support community organizations

Governance Achievements

• Maintained a “1” QualityScore Governance Rating from Institutional Shareholder Services (ISS)
• Communicated our ESG Objectives via our ESG Policy Statement
• Adopted Dodd Frank Clawback policy

Climate Goals & Targets

Environmental Challenges

• As a net lease REIT, the majority of our emissions are Scope 3 from our leased properties. Obtaining energy usage data requires substantial coordination with tenant companies.
• The extensive and geographically diverse portfolio requires significant time and resources to ensure accurate baseline data.

Mitigation Strategies

• Launched a program in 2021 to collect energy usage data globally in an automated and scalable manner.
• Established annual goals for tenant enrollment in electricity data reporting program.
• Incorporated green lease language in new leases and lease renewals to improve data collection.
• Leveraging technology and automation to streamline data collection (IoT smart metering).

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Inland, coastal and rain water flooding, wind, storms, hail, wildfire, earthquakes

Opportunities

• Renewable energy opportunities, building energy retrofits, green-building certifications

Reporting Standards

Frameworks Used: TCFD, GRI

Third-party Assurance: LRQA (limited assurance)

UN Sustainable Development Goals

• SDG 5 (Gender equality)
• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 11 (Sustainable cities and communities)
• SDG 13 (Climate action)

The report details how various initiatives contribute to these goals.

Awards & Recognition

• Green Lease Leaders Gold Level Recognition (3 consecutive years)
• Bloomberg Gender-Equality Index (2023)
• GRESB Public Disclosure Score of “A” (2023)
• Great Place to Work® (2 consecutive years)