Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainability
• Diversity, equity and inclusion
• Social inequality
• Forced labor

Environmental Achievements

• Investing in newer types of heat pumps that are more efficient
• Working with teams to identify ways to reduce the emissions of their highest-emitting properties
• Installing vertical wall solar panels on the sides of buildings
• Participating in district heating and energy systems
• Focusing on low-carbon construction techniques

Social Achievements

• Incorporating affordable housing into developments
• Addressing labor shortages through government initiatives
• Focusing on policies and programs to better distinguish between affordable and attainable housing

Governance Achievements

• Evolving reporting and regulatory requirements for ESG issues
• Adopting technology-enabled ESG reporting solutions
• Considering the full life-cycle costs of investments to reduce emissions

Climate Goals & Targets

Environmental Challenges

• Rising costs, labor shortages, and impacts on affordability in the housing market
• Higher interest rates and more expensive capital
• Uncertainty about asset prices
• Difficulties securing refinancing for some properties
• Tighter regulatory requirements on capital reserves
• Reduced availability of debt financing
• Productivity challenges and increased work defects
• Insufficient government programs to support ESG investments
• Lack of consistent key performance indicators to assess progress on social and governance aspects of ESG
• Shortage of houses and current homebuilding trends
• Tight rental market and rapid rent increases
• Long approval timelines for development projects
• Concerns about policy measures that could limit investment in rental housing
• Need for policies and programs to better distinguish between affordable and attainable housing

Mitigation Strategies

• Generating liquidity by selling off noncore assets and increasing lines of credit
• Focusing on various forms of commercial debt, such as preferred equity and mezzanine financing
• Strategically repositioning portfolios to diversify assets
• Exploring opportunities in subsectors such as student and senior housing
• Considering income-generating assets below replacement cost
• Being agile and creative in structuring deals
• Accelerating investments in data and technology capabilities
• Embracing digital solutions to improve business performance
• Exploring opportunities to incorporate generative AI
• Focusing on ESG initiatives with clear payback
• Working with insurers to understand climate-related risks and costs
• Streamlining approvals processes and facilitating new supply
• Implementing technology-enabled ESG reporting solutions
• Investing in sustainable building solutions
• Considering the full life-cycle costs of investments to reduce emissions
• Utilizing government incentive programs to support ESG investments
• Creating the right conditions for real estate companies to build homes
• Finding win-win approaches to ESG matters

Supply Chain Management

Responsible Procurement

• Addressing forced labor in Canadian supply chains

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Climate-related changes

Transition Risks

• Policy, legal, technology, market, and reputation risks as the world shifts to a low-carbon economy

Opportunities

• Higher rents for more sustainable buildings
• Reduced operating costs from energy efficiencies
• Long-term improvements in margins

Reporting Standards

Frameworks Used: ISSB