Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Transitioned from single-use plastic water bottles to water machines in headquarters.
• Implemented waste-diversion strategies focusing on recycling.
• Reduced electricity and natural gas use by 19% in the last 10 years (Vail Resorts, a tenant).

Social Achievements

• Launched EPR Impact, a charitable giving program with associate-directed contributions and company matching.
• Established a Diversity, Equity and Inclusion (DE&I) council.
• Average associate tenure of 7 years.

Governance Achievements

• Formed an ESG task force to develop and implement an ESG program.
• Adopted a Code of Business Conduct and Ethics.
• Implemented annual compliance training for associates.

Climate Goals & Targets

Environmental Challenges

• Limited control over properties leased to tenants (triple-net REIT).
• Addressing potential physical and transitional risks from climate change.

Mitigation Strategies

• Partnering with tenants to implement sustainable practices and energy conservation measures.
• Evaluating mitigation strategies for climate change risks, including local initiatives and community engagement.

Supply Chain Management

Responsible Procurement

• Choosing vendors that share company values on sustainability.
• Vendor Code of Conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB, PRI, TCFD

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Continued collecting property energy, emissions, water, waste & recycling data from our operating properties
• Contracted with a physical risk analysis platform to provide data needed for our Resilience Program
• Completed ESG assessments on all properties we acquired

Social Achievements

• Revitalized our DEIB Council and conducted an organizational assessment to establish a baseline and measure our progress
• Sponsored a student from Cristo Rey High School, assisting in the cost of tuition, as well as funding workplace experience
• 93% associate retention rate with average tenure of seven years

Governance Achievements

• Elected three new trustees, increasing the board’s gender diversity to 50%
• Named Virginia Shanks lead independent trustee
• Adopted a Code of Business Conduct and Ethics

Climate Goals & Targets

Environmental Challenges

• Most of our properties are leased to tenants under long-term triple net leases, giving us limited control of their emissions and sustainability practices and limited visibility to our tenants’ sustainability data.

Mitigation Strategies

• focused on working alongside and empowering our tenants in a collective effort to implement specific practices and energy conservation measures, by providing resources and assistance where possible.
• Distribute ESG Metrics Surveys with the goal of collecting and tracking the sustainability projects, waste programs, tenant engagement, and health and well-being initiatives that our tenants have in place.

Supply Chain Management

Responsible Procurement

• Code of Vendor Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wildfire
• Hurricane/Typhoon
• Sea level rise
• Heat stress
• Water stress

Transition Risks

• Higher carbon fines and energy prices
• Increasing regulations, building efficiency standards and ordinances
• Tracking and reporting carbon footprint of buildings and portfolios

Opportunities

• increasing efficiency through LED upgrade lighting options, optimizing building controls around consumption through new technology and installing metering to obtain whole building data

Reporting Standards

Frameworks Used: TCFD, GRESB, PRI

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Developed a comprehensive Scope 1 and 2 greenhouse gas (GHG) emissions inventory for our operating property portfolio
• Completed climate risk assessments on all new property transactions
• Installed a 1.6 megawatt (MW) community solar system on the rooftop of New Roc City property, reducing carbon emissions by 1,375 metric tons (MTCO2e)
• Partnered with tenant Premier Parks (Wet’n’Wild Hawaii) to add 111 kilowatts (kW) of solar power and a battery storage system, further reducing carbon emissions

Social Achievements

• Established a summer internship program to enhance our diverse talent pipeline
• Initiated the EPR Impact Grant Program, providing a one-time grant to the Veterans Community Project
• Achieved a 61% employee engagement score, a 4% increase from 2022

Governance Achievements

• Conducted inaugural Materiality Assessment to engage key internal and external stakeholders
• Maintained independent oversight, with seven of eight trustees being independent
• Received the 2023 Courage, Consistency and Commitment to Diversity, Equality, Inclusion and Belonging Award from the Reed Development Group

Climate Goals & Targets

Environmental Challenges

• Portfolio largely consists of properties leased to tenants under long-term triple net leases, limiting control and visibility regarding their sustainability practices and environmental performance data
• Limited data on Scope 3 emissions due to tenant-controlled properties

Mitigation Strategies

• Collaborating with tenants and supporting their efforts to prioritize sustainability by offering resources and educational materials
• Increased data tracking and adapting reporting to various frameworks (TCFD, SASB)
• Utilizing climate analytics tools (Moody’s Climate on Demand, Munich RE Location Risk Intelligence) to assess climate risks in new investments
• Portfolio diversification to manage climate-related risks

Supply Chain Management

Responsible Procurement

• Code of Conduct provided to vendors

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wildfire
• Hurricane/Typhoon
• Sea level rise
• Heat stress
• Water stress

Transition Risks

• Higher carbon fines and energy prices
• Increasing regulations
• Tracking and reporting carbon footprint

Opportunities

• Increasing efficiency through LED lighting upgrades
• Installing metering to obtain and analyze whole building data
• Optimizing building controls around consumption through the use of new technology

Reporting Standards

Frameworks Used: TCFD, SASB, UN SDGs

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 10
• SDG 11
• SDG 13

See page 45 of the report for details

Awards & Recognition

• Courage, Consistency and Commitment to Diversity, Equality, Inclusion and Belonging Award