Climate Change Data

KBS Capital Advisors LLC

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:43,556 MtCO2e
Scope 1 Emissions:1,762 MtCO2e
Scope 2 Emissions:41,794 MtCO2e
Total Energy Consumption:131,914 MWh

ESG Focus Areas

  • Climate Change
  • Energy Management
  • Employee Safety & Wellbeing
  • Employee Satisfaction & Engagement
  • Employee Development & Training
  • Tenant Safety & Wellbeing
  • Tenant Satisfaction
  • Diversity, Equity & Inclusion
  • Business Ethics & Anti-Corruption
  • Business Continuity & Resilience
  • Data Privacy & Cybersecurity

Environmental Achievements

  • Achieved UL Verified Healthy Building Mark for Indoor Air for more than 14 million square feet of Class A office space.
  • 10 out of 34 buildings are ENERGY STAR certified
  • 10 out of 34 buildings are LEED certified

Social Achievements

  • Launched Intrinsic, a quarterly sustainability newsletter for tenants.
  • Conducted first employee engagement survey with 78% response rate and 86% favorable satisfaction.
  • Implemented a supplier diversity survey to foster an inclusive supply chain.

Governance Achievements

  • Established a dedicated “Green Team” and appointed an ESG manager.
  • Established the KBS Executive Committee to strengthen governance and oversight.
  • Implemented a comprehensive web-based compliance training program for all employees (average 11 hours/employee).

Climate Goals & Targets

Short-term Goals:
  • Reduce Scope 1 and 2 emissions 5% by 2025 from a 2021 base year.

Environmental Challenges

  • 6% increase in like-for-like energy consumption from 2021 levels due to tenants returning to the office.
  • Need for consistent benchmarking and tracking of energy usage and emissions.
Mitigation Strategies
  • Implementing energy efficiency measures at properties.
  • Exploring opportunities to integrate renewable energy.
  • Prioritizing green building certifications.
  • Engaging with tenants to promote environmental awareness.
  • Implementing a dedicated ESG data management platform.

Supply Chain Management

Responsible Procurement
  • Vendor due diligence surveys
  • Vendor risk management platform
  • Contractual T&Cs including fair dealing and anti-bribery and corruption provisions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Awards & Recognition

  • Kingsley Excellence Award (15 of 17 KBS REIT III properties)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:40,073 MtCO2e
Total Energy Consumption:125,995 MWh

ESG Focus Areas

  • Climate Change Mitigation
  • Energy Management
  • Employee Safety & Wellbeing
  • Employee Satisfaction & Engagement
  • Employee Development & Training
  • Tenant Safety & Wellbeing
  • Tenant Satisfaction
  • Diversity, Equity & Inclusion
  • Business Ethics & Anti-Corruption
  • Business Continuity & Resilience
  • Data Privacy & Cybersecurity

Environmental Achievements

  • Reduced portfolio emissions by 2.98% from the 2021 baseline, on track for a 5% reduction by 2025.
  • Achieved Green Star designation from GRESB for KBS REIT III.
  • Implemented an ESG data management platform to monitor energy and water use, emissions, and other relevant metrics.
  • Over 90% of properties achieved UL Veri/f.shortied Healthy Building Mark for Indoor Air.

Social Achievements

  • Implemented LiveFit, Vitality, and Calm programs to encourage employee health and well-being.
  • Average employee training hours per year was 18 hours.
  • 11 of 17 KBS REIT III properties won the Kingsley Excellence Award for tenant satisfaction.
  • Employees volunteered 310 hours across various service organizations.

Governance Achievements

  • Established an Executive Committee to strengthen governance and oversight.
  • Implemented a comprehensive ESG policy extending from the corporate office to managed properties.
  • Formalized property-level supplier procurement attestation and tenant guidelines.

Climate Goals & Targets

Long-term Goals:
  • Achieve 100% UL healthy air certification across the entire portfolio.
Medium-term Goals:
  • Develop an internal leadership training program by 2025.
Short-term Goals:
  • Achieve a 5% GHG emissions reduction by 2025.
  • Increase KBS REIT III’s waste coverage by 20% by 2026.

Environmental Challenges

  • Maintaining and further reducing GHG emissions across the portfolio.
  • Ensuring ongoing tenant satisfaction and engagement.
Mitigation Strategies
  • Implementing energy efficiency measures, exploring renewable energy, prioritizing green building certifications, engaging with tenants to promote environmental awareness, and consistent benchmarking and tracking.
  • Conducting tenant satisfaction surveys, on-site events, and utilizing the quarterly newsletter, Intrinsic, to enhance properties and address tenant needs.

Supply Chain Management

Responsible Procurement
  • Vendor risk management platform
  • Formalized property-level supplier procurement attestation and tenant guidelines
  • Fair dealing and anti-bribery and corruption provisions in contracts

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2021), GRESB, SASB

Certifications: ENERGY STAR, LEED, UL Healthy Air, Fitwel

Third-party Assurance: UL Solutions

Awards & Recognition

  • GRESB Green Star
  • Kingsley Excellence Award