Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Tenant Relationships
• Employee Engagement
• Community Partnerships
• Governance

Environmental Achievements

• Like-for-like GHG emissions decreased by 2% (48,000 tCO2e in 2018 vs. 49,000 tCO2e in 2017)
• Like-for-like electricity consumption reduced by 2% (162 M ekWh in 2018 vs. 166 M ekWh in 2017)
• Like-for-like water consumption reduced by 2% (1.68 M m3 in 2018 vs. 1.71 M m3 in 2017)
• 26 properties BOMA BEST certified as of December 31, 2018
• Implemented Guidelines for Sustainability for development and construction projects
• Implemented a property-wide data and utility management system

Social Achievements

• Overall employee engagement score of 77%, 5% higher than benchmark
• 94% of employees completed the engagement survey (7% increase over 2017)
• $100,000 donation to Habitat for Humanity and 140 employees volunteered
• Partnership with Evergreen’s Future Cities project
• Participation on the Economic Opportunity Leadership Table

Governance Achievements

• 38% of Board of Trustees are women
• Established a mandate to report sustainability progress to the Audit Committee of the Board of Trustees
• Incorporated sustainability considerations into long-term business planning processes

Climate Goals & Targets

Environmental Challenges

• Long-term nature of climate change-related impacts and emerging regulations (e.g., EWRB)
• Challenges in obtaining full and accurate data due to multi-tenant building configurations and varying waste hauler methods
• Need to broaden diversity and inclusion efforts beyond promoting women

Mitigation Strategies

• Investing in programs such as a national LED retrofit program and smart technologies
• Exploring green energy solutions
• Educating property staff and tenants on consumption patterns and energy conservation
• Implementing a Crisis Management Program
• Working with utility providers and third parties to improve data analysis
• Connecting with leading organizations to learn best practices for diversity and inclusion

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Corporate Purchasing Guideline
• Sustainability considerations integrated into Property Operations’ Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• New regulations (e.g., EWRB)

Opportunities

• Operational efficiencies to reduce resource consumption

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB Real Estate sub-sector

Certifications: ISO 14001, BOMA BEST

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Race2Reduce Crest Award (Yonge Eglinton Centre)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Sustainable Development
• Health, Well-being and Safety
• Tenant Relationships
• Employee Engagement and Development
• Diversity, Equity and Inclusion
• Community Partnerships
• Board and Corporate Governance

Environmental Achievements

• 5-Star Rating in 2020 GRESB Real Estate Assessment (1st among Canadian peers)
• 1st Canadian REIT to publish a Green Bond Framework (raised $850 million through two green bonds)
• 90+ BOMA Best Certified Sites representing ~50% of GLA

Social Achievements

• Named one of Canada’s 50 Best Corporate Citizens by Corporate Knights
• Initiated BlackNorth CEO Pledge
• Signed the Inclusive Local Economic Diversity Opportunity (ILEO) Charter
• Established RioCan Diversity, Equity & Inclusion Council and appointed DEI Officers
• Offered rent abatements and deferrals to tenants
• Supported tenants through Canada Emergency Commercial Rent Assistance Program (CECRA)

Governance Achievements

• ESG Rating Upgrade by MSCI
• Included ESG objectives in performance scorecard for every bonus-eligible employee
• Implemented a Sustainability Policy and Plan for RioCan’s Development department

Climate Goals & Targets

Environmental Challenges

• Physical impacts of climate extremes and changes in climate over the next three decades
• Increase in the average number of heating degree days
• Risk of more stringent carbon policies and regulations
• Potential for increasing costs to insure properties against natural disasters
• Potential impact on property marketability due to government regulations
• COVID-19 pandemic impact on operations and tenant relationships

Mitigation Strategies

• Preliminary climate change and resilience assessment
• Nation-wide LED retrofit project
• Environmental audits and resilience surveys
• Hiring a dedicated Building Resilience Manager
• Developing a Crisis Management Program
• Offering rent abatements and deferrals to tenants
• Assisting tenants with CECRA program

Supply Chain Management

Responsible Procurement

• Embedding ESG considerations within RioCan’s purchasing, contracting and procurement processes

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Natural disasters

Transition Risks

• Stringent carbon policies and regulations

Opportunities

• Incorporating environmental and resilience criteria in acquisitions
• Building resource-efficient and resilient sites
• Offering investors low-carbon assets
• Reducing GHG emissions and energy consumption

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB Real Estate sub-sector, TCFD

Certifications: BOMA BEST

Third-party Assurance: Quinn & Partners Inc.

UN Sustainable Development Goals

• SDG 3: Good Health and Well-Being
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 9: Industry, Innovation and Infrastructure
• SDG 11: Sustainable Cities and Communities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

RioCan has aligned its environmental, social and governance objectives to specific UN SDGs.

Awards & Recognition

• 5-star GRESB Real Estate Assessment
• 1st among Canadian peers in GRESB Public Disclosure Assessment
• One of Canada’s 50 Best Corporate Citizens

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency (Energy, Water, Waste)
• Tenant Relationships
• Employee Engagement & Development
• Diversity, Equity & Inclusion
• Community Partnerships
• Governance, Business Ethics and Compliance

Environmental Achievements

• Reduced like-for-like GHG emissions (Scope 1 and 2) by 0% in 2021 compared to 2020. Reductions in 2020 and 2021 attributed to COVID-19 lockdowns and LED retrofits completed in 2019.
• Increased BOMA BEST certified GLA to over 60% of portfolio in 2021 (10% increase from 2020).
• Over 40 properties utilize drip/smart irrigation systems for water efficiency.
• Improved waste output data quality in 2020 and 2021.

Social Achievements

• Conducted employee engagement survey in Q4 2021.
• Conducted tenant engagement survey in 2021 with over 1900 tenants.
• Launched DEI scholarship program in 2021.
• Published Trust's inaugural DEI policy and framework in 2021.
• Organized events to raise awareness about DEI issues in 2021.
• Over 40% of sites have community engagement programs.

Governance Achievements

• 100% of employees underwent training and acknowledgement of RioCan’s Code of Conduct.
• Established a Whistleblower Program.
• No incidents of non-compliance with environmental laws and regulations in 2021.

Climate Goals & Targets

Environmental Challenges

• Challenges in establishing a waste performance baseline due to varying waste hauler methods.
• Difficulty obtaining full and accurate data on utility consumption in multi-tenant buildings.
• Tenant utility consumption not always separately metered.
• Data limitations due to properties sold, purchased after January 1, 2022, under renovation, or with inaccessible data.

Mitigation Strategies

• Working with service providers to improve waste tracking using cameras and sensors.
• Discussions with tenants to pilot programs for improved waste management.
• Working directly with utility providers and third parties to advocate for easier analysis of full building data.
• Property teams trained to review available data to manage utility consumption.
• Conducting property-level energy, water, and waste assessments.

Supply Chain Management

Responsible Procurement

• Code of Conduct
• Sustainable Development Policy
• Sustainable Corporate Purchasing Guideline
• ESG considerations integrated into Operations’ Procurement & Purchasing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Reporting Standards

Frameworks Used: GRI Standards: Core level, SASB, TCFD

Certifications: BOMA BEST, LEED (targeted for ~35% of new developments), Toronto Green Standard Tier 2 (targeted for ~35% of new developments), ISO 14001 (aligned), ISO 45001 (aligned)

Third-party Assurance: Quinn+Partners, Inc. (limited assurance on 2021 energy, water, waste, and GHG emissions)

Environmental Metrics

ESG Focus Areas

• Climate
• Governance
• Finance
• Environment
• People
• Community
• Tenants
• Suppliers
• Industry

Environmental Achievements

• More than 65% of the gross leasable area of RioCan’s portfolio across Canada is now BOMA BEST certified
• WELL Health-Safety Rating for over 3 million square feet of RioCan’s portfolio
• Reduced usage per fixture by over 60% in a bulb replacement project at RioCan Centre Sudbury, avoiding an estimated 500 kilograms of fixtures being sent to landfill.
• Implemented Source Separated Organics and single-stream recycling programs at RioCan sites in Edmonton.

Social Achievements

• Achieved a 95th percentile ranking in employee engagement survey
• Recognized as one of Canada’s Greenest Employers and one of the top 100 employers by Greater Toronto’s Top Employers
• Introduced diversity, equity and inclusion (DEI) Champions within each department
• 98% response rate and 90% engagement score in 2022 employee engagement survey (3 point increase from 2021).

Governance Achievements

• Ranked first among Canadian peers in the 2022 GRESB Real Estate Assessment and Public Disclosure Assessment
• Maintained first-place ranking among Canadian peers in the GRESB Public Disclosure Assessment
• Gold Level 2022 Green Lease Leader in recognition of our strong commitment to best practice leasing and high performance for buildings
• Included in the Canadian Coalition for Good Governance’s 2022 edition of its Best Practices for Proxy Circular Disclosure publication

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions make up 90% of RioCan's footprint (tenant energy consumption, materials and construction of assets, capital purchases)
• Physical climate risks (flooding, high winds, hailstorms, snow, forest fires, temperature extremes, rising sea levels, tsunamis)
• Transition risks (evolving building standards, regulatory changes, new taxes, supply chain disruptions, carbon credit costs, electricity prices, skill shortages, litigation, natural gas prices)
• Need to prepare for IFRS Sustainability Disclosure Standards (ISSB)

Mitigation Strategies

• Conducted a Scope 3 emissions scan to inform SBTi target setting
• Completed a physical climate risk assessment examining the portfolio in present-day conditions and hypothetical cases for 2030, 2050, and 2070
• Conducted a transition risk assessment under three Network for Greening the Financial System scenarios
• Mobilized legal, finance, and investor relations teams to form the ISSB working group

Supply Chain Management

Responsible Procurement

• Health and safety guidelines enhanced to include suppliers, general contractors and construction managers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• High Winds
• Hailstorms
• Snow
• Forest Fires
• Temperature Extremes
• Rising Sea Levels
• Tsunamis

Transition Risks

• Evolving building standards
• Regulatory changes
• New taxes
• Supply chain disruptions
• Carbon credit costs
• Electricity prices
• Skill shortages
• Litigation
• Natural gas prices

Opportunities

• On-site energy generation

Reporting Standards

Frameworks Used: SASB, TCFD

Third-party Assurance: Quinn+Partners (limited assurance)

Awards & Recognition

• Canada’s Greenest Employers
• Greater Toronto’s Top 100 Employers
• Gold Level 2022 Green Lease Leader

Environmental Metrics

ESG Focus Areas

• Governance
• Climate
• Finance
• Environment
• People
• Community
• Tenants
• Suppliers
• Industry

Environmental Achievements

• 70% of the GLA of RioCan’s portfolio is now BOMA BEST certified
• Launched a new organic waste program at Head Office and regional office
• Formed a strategic partnership with a non-profit organization to support naturalization projects, including pollinator gardens.
• The Well received LEED Platinum Certification

Social Achievements

• MSCI ESG rating upgraded to "A" from "BBB"
• Ranked 1st among Canadian peers in the 2023 GRESB Public Disclosure and Real Estate Standing Investment Assessments
• Greater Toronto’s Top 100 Employers by Mediacorp Canada Inc. seven years running
• Employee Engagement: Top Decile Ranking
• 98% response rate on employee engagement survey with 90% overall engagement score
• 97% response rate on DEI survey with 93% favorable rating
• RioCan Impact, a new online platform for talent management, launched
• Partnership with Autism Canada to provide sensory-friendly experiences
• Partnership with Indigo Love of Reading Foundation, donating 2,500 books to Indigenous communities

Governance Achievements

• Strengthened ESG competency and accountability through employee training
• Held first RioCan ESG Investor Forum
• Developed near- and long-term GHG reduction targets validated by the Science-Based Targets initiative (SBTi)

Climate Goals & Targets

Environmental Challenges

• Flood risk across portfolio
• Need to align with IFRS Sustainability Disclosure Standards and CSDS
• Managing a vast and multi-tiered supply chain with ESG considerations

Mitigation Strategies

• Undertook a detailed evaluation of flood exposure across the portfolio
• Conducted IFRS Sustainability Disclosure Standards Gap Assessment
• Developed a Supplier Code of Conduct to address forced and child labor risks
• Integrating decarbonization criteria into budgeting, underwriting, property management, and development processes

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: LEED Platinum (The Well)

Third-party Assurance: Ernst & Young LLP (limited assurance for Scope 1 & 2 GHG emissions and energy); Quinn+Partners (limited assurance for asset water consumption and waste output)

Awards & Recognition

• BOMA International Award (Yonge Sheppard Centre)
• MSCI ESG rating upgrade to "A"