Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Funded installation of white TPO (cool roofs) at 4 portfolio properties to lower roof surface temperature and reduce energy consumption.
• Funded a $17MM+ expansion project for a tenant, integrating sustainable building solutions (high-efficiency IMPs, HVAC units, cool roofs).
• Approved funding for an additional $30MM+ property expansion project with sustainable building components.
• Tenant completed installation of over 4,100 solar panels, producing nearly 2,000,000 kWh of renewable energy per year and abating over 2,800,000 lbs of CO2 per year. BNL waived all legal fees for the project.
• Acquired multiple properties with sustainable features (vegetative roofs, EV charging stations, solar panels, rainwater harvesting systems).

Social Achievements

• Made over $120,000 in charitable donations in 2022.
• Maintained employee health and safety with no workplace incidents.
• Conducted a gender pay equity review, identifying no material risks.
• Launched a series of mandatory DE&I trainings on unconscious bias and inclusive culture.
• Formed a Women’s Group to engage and support female employees.
• Launched a summer rotational analyst internship program.
• Issued a quarterly DE&I newsletter to employees.
• Provided employees with numerous opportunities for professional development and growth.

Governance Achievements

• Formed an ESG Committee and a DE&I Committee.
• Completed an external review of ESG performance and maturity.
• Developed short- and long-term roadmaps for ESG initiatives.
• Delegated oversight of ESG initiatives to the Nominating & Corporate Governance Committee.
• Enhanced governance-related policies.
• Improved internal risk management processes.

Climate Goals & Targets

Environmental Challenges

• Limited ability to influence physical changes across the property portfolio due to the net lease business model.
• Managing climate-related risks (physical risks from natural disasters and transition risks from reputational, market, policy/legal, and technology changes).

Mitigation Strategies

• Partnering with tenants to facilitate improvements that reduce environmental impact (e.g., solar panels, EV charging stations).
• Investing in portfolio properties to improve environmental performance (e.g., cool roofs).
• Developing risk mitigation plans to manage climate-related risks.
• Commissioned an external review of ESG risk exposure, including climate risks.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and impact of natural disasters (storms, floods)

Transition Risks

• Reputational, market, policy/legal, and technology risks

Reporting Standards

Frameworks Used: TCFD

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)

BNL's initiatives align with these SDGs through charitable giving, employee well-being programs, educational opportunities, gender equality promotion, workforce development, sustainable building practices, and waste reduction.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Robust Corporate Governance
• Workforce Health, Safety & Wellbeing
• Stakeholder Engagement & Transparent Corporate Disclosures
• Sustainable Performance of Asset Portfolio
• Management & Oversight of Risk and Opportunity
• High Standards of Ethical Behavior
• Relationships with Local Communities
• Employee Training & Development
• ESG Considerations in Procurement & the Supply Chain
• ESG Considerations in the Tenant Portfolio

Environmental Achievements

• Completed initial calculations of Scopes 1 and 2 greenhouse gas emissions (Scope 1: 14.16 MT CO2e; Scope 2: 182.67 MT CO2e)
• Relocated corporate headquarters with features designed to minimize environmental footprint (LED lighting, renewable energy sources, recycling capabilities, efficient building management system)
• Funded $1.6 million roof replacement project for a retail tenant (expected significant energy usage and cooling cost improvements)
• Provided $130,000 for LED lighting installation at an industrial tenant’s warehouse (substantial energy efficiency improvements expected)
• Installed energy-efficient metal panel structural ceilings at an industrial facility (significant environmental performance improvements expected)

Social Achievements

• Maintained employee health and safety with zero workplace incidents
• Enhanced employee benefits, health, and wellness programs
• Established Diversity, Equity, and Inclusion (DE&I) Committee
• Donated $126,000+ to charitable organizations
• Provided mandatory inclusive-hiring training sessions
• Developed BNL Women’s Group with programs focusing on professional development and networking
• Established an intranet-accessible anonymous feedback channel for employees

Governance Achievements

• Amended and restated Articles of Incorporation to enable stockholder Charter amendments by majority vote
• Enhanced suite of governance-related policies (including Anti-Bribery and Anti-Corruption Policy)
• Formal process of internal and external stakeholder engagement to inform Sustainability Strategy
• Enhanced risk management processes for climate risks
• Zero cybersecurity incidents in 2023
• 100% mandatory workforce cybersecurity training

Climate Goals & Targets

Environmental Challenges

• Managing climate-related risks and opportunities (transition risks, physical risks)
• Integrating sustainability-related risk management into short, medium, and long-term strategy
• Balancing regulatory requirements with resource allocation
• Potential for legal disputes related to climate performance
• Changing stakeholder preferences regarding climate performance
• Reputational damage due to negative perception of climate mitigation efforts
• Managing the impact of extreme weather events on properties
• Higher operating costs due to climate change (e.g., increased air conditioning demand)

Mitigation Strategies

• Developed a Climate Risk Register aligned with TCFD taxonomy
• Enhanced risk management documentation to reflect climate-related risks
• Developed strategies to decarbonize operations
• Engaged with tenants to improve environmental performance of leased properties
• Implemented robust climate and environmental due diligence for property acquisitions
• Developed energy-efficient solutions and smart-property design
• Engaged with insurance and advisory partners to mitigate risks
• Integrated climate-resilient design into portfolio

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Acute climate-related events (flood, wildfire, hurricane)
• Chronic climate change effects (extreme heat, drought, sea level rise)

Transition Risks

• Regulatory changes
• Technological advances
• Changing stakeholder preferences
• Reputational impacts

Opportunities

• Development of climate-resilient properties
• Energy-efficient solutions
• Green building certifications
• Improved occupancy rates from smart property systems

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

BNL's initiatives contribute to these goals through various environmental, social, and governance programs