Climate Change Data

Environmental Metrics

ESG Focus Areas

• decreasing energy and water use
• reducing waste and emissions
• creating excellence in energy and environmental management that results in green building certifications
• collecting consistent data that tracks and validates our performance towards our objectives
• reporting transparency
• engaging investors, employees and tenants to support our initiatives
• embracing strategies and best practices aimed at incorporating new and pertinent changes to the reporting environment
• driving new sustainability ideas and policies that align with our focus areas

Environmental Achievements

• 7.9% less energy usage
• 8.5% less greenhouse gas emissions
• 5.4% less water usage
• 1.3% increase in waste diversion rate
• Achieved a waste diversion rate of 70% at 11th Avenue Place

Social Achievements

• Morguard and their tenant, The Canadian Council for the Arts, achieved the HOOPP LEAP Award for Tenant Leader: Collaboration
• 2019 Earth Day Community Planting Inspires Healthy Eating and Upcycling
• BeYou Campaign garnered 207 million impressions
• Indigenous Art Conference supported indigenous women entrepreneurs
• The Shoebox Project donation
• Donations to the North Harvest Foodbank

Governance Achievements

• Received its seventh consecutive Canada’s Safest Employer award

Climate Goals & Targets

Environmental Challenges

• Extending our green building certifications across our portfolio has been multifaceted and an area that requires improvement

Mitigation Strategies

• Moving into the next reporting year, our goal is to embrace a more integrated management approach to Morguard’s Corporate Sustainability and Responsibility strategy and align operational efficiency with our climate change efforts

Supply Chain Management

Responsible Procurement

• green procurement strategies in both our sustainability and purchasing policies
• purchase of building and maintenance products that meet leading environmental standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Awards & Recognition

• HOOPP LEAP Award
• BOMA Earth Award
• TOBY Award
• National TOBY Award
• Certificate of Excellence
• Canada’s Safest Employer award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Etobicoke Wellness Centre, Toronto and 41 rue Victoria, Gatineau achieved LEED Silver Certifications for new construction.
• 2920 Matheson Blvd., Mississauga earned a BOMA Earth Award for water system upgrades.
• Canadian commercial portfolio used 8.3% less energy, generated 11.1% less GHG emissions, consumed 28.2% less water in 2020 compared to 2019.

Social Achievements

• Maintained recognition as one of Canada’s Safest Employers for the 8th consecutive year.
• Upgrades to the new Human Capital Management System (myHR) were completed.
• BeYou initiative garnered 924,000 online social views and 124,000 engagements while raising $4,300.

Governance Achievements

• Continued to expand the review of long-term objectives through specific committees.
• Overall oversight of Sustainable Morguard is provided by Morguard’s Board of Directors.
• Updated Morguard GREEN LINK Environmental Sustainability Policies to include sustainable procurement practices.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted real estate operations and changed the way properties were managed.
• Changes in building usage patterns due to work-from-home policies and retail closures.
• Decreased waste diversion amounts due to lower overall waste volume.

Mitigation Strategies

• Activated Morguard's Crisis Management Team.
• Updated Business Continuity, Infectious Disease and Crisis Management plans.
• Implemented changes and efficiencies to organizational structure to ensure employees could work safely and effectively.

Supply Chain Management

Responsible Procurement

• Green procurement strategies in sustainability and purchasing policies.
• Purchase of building and maintenance products meeting EcoLogo and Green Seal standards.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Reporting Standards

Frameworks Used: GRI Standards: Core option, GRI’s Construction and Real Estate Sector Supplement (CRESS)

Awards & Recognition

• LEED certifications
• BOMA Earth Awards
• BOMA BEST certifications
• HOOPP LEAP Awards

Environmental Metrics

ESG Focus Areas

• Climate change risk and mitigation
• Tenant engagement
• Development and land management
• Renewable energy
• Labour practices in supply chain
• Energy, water, and waste
• Green building design and certification
• Environmental regulatory compliance
• Workplace health and safety
• Employee engagement and satisfaction
• GHG emissions
• Ethics and transparency
• Board governance and oversight
• Responsible property investing

Environmental Achievements

• Direct and indirect GHG emissions decreased by 23.3% and 21.4% at our Canadian and U.S. retail properties, respectively, relative to the 2019 baseline
• 11.6% reduction in energy use in Canadian office and retail portfolio compared to 2019 baseline
• 17.5% reduction in GHG emissions in Canadian office and retail portfolio compared to 2019 baseline
• 15.5% reduction in water usage in Canadian office and retail portfolio compared to 2019 baseline
• 4,979 metric tonnes of waste diverted from landfill in 2021 in Canadian office and retail portfolio

Social Achievements

• Conducted a gender pay equity comparison for all senior-level roles
• Introduced a mobile app to connect employees with trained mental health providers
• Named one of Canada’s Safest Employers in the Service Sector, for the ninth consecutive year
• Teamed up with Earth Rangers to empower kids to turn their eco-anxiety into eco-action through the “Got Your Ears On?” awareness campaign
• Collected $41,850 in food donations to support families impacted by the ongoing pandemic
• Donated 185 bikes to residents of Toronto’s Thorncliffe Park community through Project BREEZY

Governance Achievements

• Board of Directors received training on emerging ESG trends and regulatory developments, and cybersecurity risk
• Introduced anti-trafficking training for hotel staff
• Published updated privacy policy
• Reviewed committee structure and responsibilities, including updated mandates, with primary responsibility for ESG assigned to the Corporate Governance and Nominating Committee

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on resource use
• Increased employee turnover due to competitive labor market
• Climate change risks (extreme weather events)

Mitigation Strategies

• Increased building ventilation and higher-grade air filtration systems
• Strengthening Employee Value Proposition, expanding search for qualified employees
• Property mapping exercise to identify properties in critical climate zones, climate resiliency discussions at high-risk properties
• Strengthening risk reporting around privacy and cybersecurity

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strong standards for hiring building service contractors
• Green Purchasing Guidelines embedded into material services
• Sustainable procurement practices in GREEN LINK Environmental Sustainability Policies
• Encouraging locally sourced materials, materials with recycled content, and products with third-party certifications

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards Core option, GRI’s Construction and Real Estate Sector Supplement, United Nations Sustainable Development Goals (SDGs)

Certifications: LEED, BOMA BEST®, ENERGY STAR®, Canadian Residential Green Building, Green Key Eco-Rating, Rick Hansen Foundation Accessibility Certification, WiredScore Global Digital Connectivity

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 11: Sustainable Cities and Communities
• SDG 13: Climate Action

Contributions through job creation, sustainable development projects, and energy reduction initiatives

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• BOMA Canada TOBY Award (Bramalea City Centre)
• HOOPP LEAP Awards (Heritage Place)
• HOOPP LEAP Forward Pitch Award (Intercity Shopping Centre, Northgate Shopping Centre)
• BOMA Canada National Earth Award (Quinte Consolidated Courthouse)
• Canada’s Safest Employers in the Service Sector (nine consecutive years)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Morguard’s Canadian office and retail portfolio reduced energy consumption by 4.2%, GHG emissions by 12.3% and water consumption by 16.8%, compared to our 2019 baseline.
• Properties reduced emissions by upgrading electrical and mechanical equipment, including LED lighting retrofits and boiler upgrades. Purchased renewable energy certificates (RECs) and renewable natural gas (RNG) to reduce GHG emissions.
• Attained a total potable water savings of 1,186,000 litres at office properties and 8,573,000 litres at industrial properties.

Social Achievements

• Conducted first-ever in-house engagement survey.
• Held a Wellness Week in October to support and promote every aspect of employee wellness.
• Provided employees with access to Inkblot – a digital platform that provides video counselling.
• Morguard’s first Diversity, Equity and Inclusion (DEI) employee survey showed five of six dimensions scored at least 75% favourable.
• Sixteen employees received Keeper of the Flame Award.
• Morguard employees completed more than 19,000 hours of training.
• Received an Excellence Award from Canada’s Safest Employer Awards.
• Established social partnerships at close to 40% of properties.
• Supported a broad range of social causes through partnerships with established non-profit organizations.
• Joined Bridge the Digital Divide.
• Nine commercial properties received WiredScore Global Digital Connectivity certification.
• Expanded the certification program for Fitwel and The Rick Hansen Foundation’s Accessibility Certifications.

Governance Achievements

• Board received training on trends and topics related to Morguard's business risk and insurance, environmental management and cybersecurity.
• Established Information Management Committee.

Climate Goals & Targets

Environmental Challenges

• Balancing people, profit and planet to seek sustainable returns, reduce adverse impacts and risk to and from our organization and deliver on our promise of contributing positively to our employees and communities.

Mitigation Strategies

• Consideration of both financial and ESG factors when undertaking new development projects, property acquisitions, planning strategies, securing resources or investment in our people. This ensures our strategies align with the principles of Sustainable Morguard to deliver real and sustainable value for our stakeholders.

Supply Chain Management

Responsible Procurement

• Green procurement strategies in purchasing policies to encourage purchasing building and maintenance products that align with leading environmental standards, including EcoLogo, ENERGY STAR® and GreenSeal®.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

UN Sustainable Development Goals

• Goal 2
• Goal 12
• Goal 8
• Goal 13
• Goal 15
• Goal 17
• Goal 9
• Goal 11

Through our core business practices, climate resilience strategy, governance, natural resource management and human capital investments.

Awards & Recognition

• Canada’s Safest Employer Awards Excellence Award
• BOMA Edmonton Certificate of Excellence
• BOMA BEST® Platinum certification
• BOMA Edmonton Outstanding Building of the Year (TOBY) award (two-time recipient)

Environmental Metrics

ESG Focus Areas

• Responsible Governance
• Social Impact
• Environmental Sustainability

Environmental Achievements

• Etobicoke Wellness Centre won ENERGY STAR® Building of the Year Award for 2023.
• Morguard's Canadian office, retail, residential, and industrial, and U.S. retail portfolios used less energy and water in 2023 compared to 2022 (with some exceptions).
• 115 properties had major retrofits, equipment upgrades, or conservation measures completed in 2023.
• Total waste generated in 2023 for the Canadian office and retail portfolios decreased compared to 2022.
• Collected 1,100 lbs of batteries during Circular Economy Month.
• Morguard's retail and office portfolio consumed 18.3% less water, decreased waste generation by 28.7%, used 12.1% less energy, and generated 18.1% less GHG emissions compared to the 2019 baseline.

Social Achievements

• Partnership with Kids Help Phone launching in May 2024.
• Partnership with Diabetes Canada and York University on a textile diversion program.
• Corporate donations of $454,314 and food donations of 4,400 lbs in 2023.
• 87% of employees feel that Morguard has a positive work culture (based on 2023 employee surveys).

Governance Achievements

• Board of Directors has general oversight of Morguard's ESG performance targets.
• Implemented a framework of information security policies and procedures based on NIST-CSF.
• Morguard was recognized for excellence by Canadian Occupational Safety in two categories.

Climate Goals & Targets

Environmental Challenges

• Decreased waste diversion rates for office (36% in 2023 from 42% in 2022) and retail (45% in 2023 from 48% in 2022) portfolios due to changes in waste mix and occupancy.
• Data limitations and exclusions in reporting.
• Three cases of violation of Toronto Municipal Code Chapter 681 – Sewers occurred during the reporting period.

Mitigation Strategies

• Engaged an external consultant to collect and verify building performance data.
• Improved data capture capacity to enhance reporting.
• Implemented a rigorous weather adjustment model.
• Continued to align reporting practice with the latest GRI Standards.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 2021 Universal Standards

Awards & Recognition

• BOMA CREST Award for Emission Reduction
• GREEN BUILDING AWARDS
• HOOPP LEAP Sustainability Achiever Award
• BOMA Manitoba Earth Award
• ENERGY STAR® Building of the Year Award