Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Environment
• Social

Environmental Achievements

• Reduced total energy consumption by 7.81% from 2019 to 2020.
• Reduced total GHG emissions by 8.36% from 2019 to 2020.
• Reduced Scope 3 emissions by 27.56% from 2019 to 2020.
• Installed 30 rooftop beehives at 17 properties.
• Implemented various energy efficiency projects, including LED lighting retrofits, occupancy sensors, and HVAC upgrades.

Social Achievements

• Over 40% of investment professionals are women or minorities; 45% of employees are women; 30% are minorities.
• Launched five new ESG subcommittees.
• Implemented a Vendor Diversity Program.
• Made a multi-year financial commitment to the Pension Real Estate Association Foundation (PREA) and an internship partnership with Sponsors for Educational Opportunity (SEO).
• Earned Green Lease Leaders Gold-level recognition.

Governance Achievements

• Maintained UNPRI score of A+ for Strategy and Governance and A for the real estate-specific module.
• Seven Clarion-managed funds and accounts earned Green Star designations in the 2020 GRESB assessment.
• Implemented an anti-bias and DEI training program.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted energy consumption data due to varying occupancy rates across property types.
• Difficulty tracking waste data due to tenant use of their own haulers.

Mitigation Strategies

• Developed sector-specific strategies for energy reductions during shutdowns.
• Working to increase the percentage of the portfolio with complete and accurate data for waste tracking.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Contractor Policy

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Energy efficiency projects
• Renewable energy generation

Reporting Standards

Frameworks Used: GRESB, UN PRI, GRI

Certifications: LEED, Fitwel, ENERGY STAR, BREEAM, EarthCraft Multifamily, Green Globes, IREM Certified Sustainable Property

Third-party Assurance: ISOS Group

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 15: Life on Land

Clarion's initiatives contribute to these goals through various programs and policies detailed in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Green Lease Leaders Gold
• Fitwel Champion

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental Stewardship
• Thriving Communities

Environmental Achievements

• 64 buildings received new or recertification in green building certifications (including 50 IREM, 10 Fitwel, and 4 LEED Gold)
• Developed a prototype for LEED Volume certification of new industrial projects (16 million sq ft pursuing certification)
• Assessing LED lighting retrofit opportunities at 485 properties (60 sites in pilot phase)
• Evaluating shadow meter installation at 233 industrial properties (40 sites in pilot phase)
• Achieved a -2.10% change in total energy consumption (LFL) from 2020-2021
• Achieved a -3.40% change in total Scope 2 emissions (LFL) from 2020-2021
• Achieved a -4.55% change in total Scope 3 emissions (LFL) from 2020-2021

Social Achievements

• Over 40% of investment professionals are women or minorities; 45% of employees are women and nearly 30% are minorities
• Launched mandatory Unconscious Bias training for all employees
• Expanded parental leave program to provide eight weeks of fully paid parental bonding time
• Continued partnership with SEO internship program, extending three post-graduation offers in 2021
• Implemented Vendor Diversity Questionnaire to track diversity statistics from vendors

Governance Achievements

• Expanded ESG leadership with the addition of a Global Head of ESG
• Public commitment to pursue net zero GHG emissions by 2050
• Officially signed on as a supporter of the Task Force on Climate-related Financial Disclosures (TCFD)
• Established a cross-functional ESG Committee and five subcommittees

Climate Goals & Targets

Environmental Challenges

• Continued COVID-19 pandemic
• Worsening climate change
• Growing public demand for social justice
• Limited data coverage across portfolio

Mitigation Strategies

• Enhanced data collection strategies (online survey, data management guide, partnerships)
• Pilot technologies like shadow meters to enhance data coverage
• Utilize green leases with data sharing clauses
• Developed enhanced “green” Property Condition Assessments (PCAs)
• Implemented portfolio-wide energy conservation project (lighting retrofits)
• Developed a Firm-wide climate risk management and resilience strategy

Supply Chain Management

Responsible Procurement

• Responsible Contractor Policy to promote fair and open business practices

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Wildfires
• Sea level rise
• Drought
• Severe storms

Transition Risks

• Continued use of fossil fuels
• Non-compliance with energy codes and climate legislation

Opportunities

• Transitioning to energy efficient, low-carbon portfolio

Reporting Standards

Frameworks Used: GRI G2016, TCFD

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 7
• SDG 9
• SDG 11
• SDG 12
• SDG 15
• SDG 10

Clarion has aligned with eight SDGs relevant to its business

Awards & Recognition

• Green Lease Leaders Gold-level recognition

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Diversity, Equity, and Inclusion (DEI)
• Environmental Sustainability (LEED Certification)
• Community Engagement
• Waste Reduction

Environmental Achievements

• Mansfield Logistics Park Building 3 achieved LEED Certification.
• Multiple properties earned 2022 ENERGY STAR certifications, demonstrating excellence in energy efficiency.

Social Achievements

• Formation of a DEI Council to enhance business value, improve engagement, and deliver better outcomes for employees and clients.
• Company-sponsored volunteer activities across the nation, including participation in the September 11th National Day of Service and Remembrance, playground revitalization, and food bank support.

Governance Achievements

• All seven previously reported GRESB submissions saw score increases from 2021.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB, Global Reporting Initiative (GRI) Standards, Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: LEED, ENERGY STAR

Environmental Metrics

ESG Focus Areas

• Climate Change

Climate Goals & Targets

Environmental Challenges

• Reliance on partners (tenants, cities, states, utilities, technology developers) for successful net-zero transition.

Mitigation Strategies

• Supporting partner efforts, developing collaborations, tracking progress towards net-zero.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB, TCFD

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Diversity, Equity and Inclusion (DEI)

Environmental Achievements

• Named a 2023 ENERGY STAR Partner of the Year and an Executive Member of the U.S. Environmental Protection Agency’s 2022 Certification Nation for certifying 78 properties.
• Implementation of 154 energy efficiency projects in 2022, including installation of shadow meters and LED lighting.

Social Achievements

• Named a 2023 Best in Building Health Award winner for Portfolio Benchmarking by Fitwel.
• Named a Pensions & Investments (P&I) 2022 Best Place to Work in Money Management and a GlobeSt. Commercial Real Estate’s Best Place to Work 2023.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2023 ENERGY STAR Partner of the Year
• Executive Member of the U.S. Environmental Protection Agency’s 2022 Certification Nation
• 2023 Best in Building Health Award winner for Portfolio Benchmarking by Fitwel
• Pensions & Investments (P&I) 2022 Best Place to Work in Money Management
• GlobeSt. Commercial Real Estate’s Best Place to Work 2023

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Sustainable Development
• Climate Resilience
• Employee Engagement
• Health & Well-being
• Enhance Local Communities
• Diversity, Equity & Inclusion
• ESG Oversight
• Leadership
• Transparency & Disclosure
• ESG Risk Management

Environmental Achievements

• Completed LED lighting retrofits across 21 million square feet, projected to save over nine million kWh of electricity annually
• 37.997 MW of solar arrays installed across properties
• 74 active ENERGY STAR certifications
• 34 buildings totaling 12M square feet LEED certified through Volume program
• 72 buildings totaling 24M square feet under review for LEED certification

Social Achievements

• Recognized as a Best Place to Work in Money Management by Pensions & Investments for two consecutive years
• Established Diversity, Equity, and Inclusion (DEI) Council
• Hosted various educational and cultural heritage events
• Became a signatory to the CFA Institute Diversity, Equity, and Inclusion Code
• Clarion’s Head of Human Resources joined Evanta’s New York Chief Human Resources Officer Governing Body

Governance Achievements

• Established a structured and holistic firmwide ESG program
• Leveraged third-party, external reporting, and certifications to benchmark properties

Climate Goals & Targets

Environmental Challenges

• Tracking waste data
• Tenant control of building operations (Europe)
• Reliance on tenant reporting for data (Europe)

Mitigation Strategies

• Annual property sustainability survey; encouraging waste stream audits
• Distribution of tenant ESG guides; regular meetings with tenants; green lease clauses (Europe)
• Exploring automated data collection methods (Europe)

Supply Chain Management

Supplier Audits: Over 1,300 of Clarion’s service providers are Minority, Women, and Disadvantaged Business Enterprise (MWDBE) businesses

Responsible Procurement

• Considers diversity profiles when evaluating vendors

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Earthquakes
• Tropical cyclones
• Extratropical storms
• Tornadoes
• Wildfires
• Hail
• Heat stress
• Fire stress
• Drought stress
• Sea level rise

Transition Risks

• Carbon emissions regulations
• Building efficiency regulations

Opportunities

• Energy efficiency improvements
• Renewable energy deployment

Reporting Standards

Frameworks Used: GRI® 2021 Standards, GRESB®, TCFD

Certifications: LEED, ENERGY STAR, Fitwel, BREEAM

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Clarion has identified eight UN SDGs to incorporate into its ESG program

Sustainable Products & Innovation

• LEED Volume prototype for industrial buildings

Awards & Recognition

• ENERGY STAR Partner of the Year (2023 & 2024)
• GRESB 12-year participation
• Kingsley Excellence Award
• Green Lease Leaders – Gold Level