Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Resilience

Environmental Achievements

• Achieved WELL Gold Certification for Boston headquarters
• 101 AEW properties across the U.S. have achieved Green Building Certifications (GBCs)
• AEW Europe properties have achieved 205 GBCs
• 12 of 18 properties in Asia Pacific held GBCs
• Declared commitment to net zero carbon operations by 2050

Social Achievements

• Established a scholarship at the University of Massachusetts Boston
• Partnered with Project Destined to drive minority youth education in real estate
• Received Green Lease Leader recognition

Governance Achievements

• Appointed a Chief Sustainability Officer and dedicated ESG+R team
• Launched inaugural Task Force on Climate-related Financial Disclosures (TCFD) Index
• Continued participation in GRESB and PRI

Climate Goals & Targets

Environmental Challenges

• Reducing energy, water, and waste consumption by 15% over 10 years
• Achieving net zero by 2050 for scope 1 and 2 carbon emissions
• Identifying and mitigating physical and transition risks at properties and portfolios

Mitigation Strategies

• Utilizing MSCI climate risk analytics to analyze physical and transition climate risks
• Implementing energy efficiency projects and sustainable measures
• Engaging with leaders in carbon reduction to lower emissions
• Incorporating ESG+R factors into asset analyses, underwriting, due diligence, and asset management
• Regular portfolio-level assessment of environmental and energy issues presented to AEW’s Risk Management Committee

Supply Chain Management

Responsible Procurement

• Encourage supplier responsibilities and sustainable best practices

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Heat stress
• Hurricanes
• Typhoons
• Sea level rise
• Water stress
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts
• Capital costs associated with retrofits
• Insurability
• Financeability
• Stranded assets

Reporting Standards

Frameworks Used: GRESB, PRI, TCFD, GRI

Certifications: WELL, LEED, BREEAM, ENERGY STAR, Green Lease Leader, NABERS, Green Star, BCA Green Mark

Third-party Assurance: GRESB (for GRESB scores)

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 10 (Reduced Inequalities)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)

Focus on built environment, climate action, and inequality

Awards & Recognition

• GRESB scores above average
• Green Lease Leader

Environmental Metrics

ESG Focus Areas

• Energy consumption from non-renewable sources
• Emissions of greenhouse gases
• Water consumption
• Impacts on biodiversity
• Production of waste and non-recovered waste
• Predicted climatic risks
• Natural risks, particularly flooding
• Respect for human rights
• Respect for diversity and equality

Environmental Achievements

• Implementation of energy efficiency plans for existing buildings
• Optimization of operations to reduce energy consumption in existing buildings
• Construction of low energy buildings for new buildings and major renovations

Social Achievements

• Not disclosed

Governance Achievements

• Integration of high principles of governance based on best international standards, including PRI since 2009 and Natixis group policies
• Annual evaluation by PRI and GRESB on policy compliance

Climate Goals & Targets

Environmental Challenges

• Energy inefficiency in some real estate assets
• Greenhouse gas emissions from buildings
• Water pollution
• Air pollution
• Waste generation
• Consumption of raw materials
• Use of natural land for new buildings
• Exposure to fossil fuels via real estate assets
• Climate risks
• Biodiversity loss
• Asbestos
• Lead
• Noise
• ICPE*
• Waste
• Water
• Energy
• CO2
• Transportation
• Well being
• Health

Mitigation Strategies

• Technical and environmental audits (and in some cases ESG and climate resilience audits) for all investment opportunities
• ESG clauses in PM contracts
• Tenant awareness raising
• Periodic reports on ESG action plans
• Regular reviews with PMs to ensure ESG objectives are met
• ESG clauses integrated into standard leases
• Environmental annexes for service sector assets > 2,000m²
• Annual environmental committees for commercial buildings > 2,000m²
• ESG objectives for construction projects (environmental certifications, energy labels, biodiversity considerations, etc.)
• Limiting nuisance for local residents during construction
• Limiting water and material resource use during construction

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ensuring key service providers comply with ESG commitments through internal controls

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Pollution
• Climate change

Transition Risks

• Energy
• CO2
• ICPE*

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: PRI, GRESB, GHG Protocol

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed