Madison International Realty
Climate Impact & Sustainability Data (2020, 2021)
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:2019: 38.669 MTCO2e; 2020: 33.195 MTCO2e (Scope 3)
Scope 3 Emissions:2019: 38.669 MTCO2e; 2020: 33.195 MTCO2e
Total Energy Consumption:2019: 145,013.06 kWh; 2020: 122,885.31 kWh
Water Consumption:Data not available for corporate offices; tracked for some investments
ESG Focus Areas
- Climate Change
- Diversity & Inclusion
- Governance
- Community Engagement
- Energy Management
- Responsible Procurement
- Health & Safety
- Data Security & Privacy
- Business Integrity
- Asset Level Certifications
- Tenant Satisfaction
- Waste Management
- Water Management
- Emerging ESG Regulations
- Climate Change Resilience
- Employee Satisfaction & Retention
- Supplier/Vendor Labor Practices
- Charitable Giving & Volunteering
Environmental Achievements
- Offset 100% of 2019 and 2020 corporate electric use with RECs
- New York office signed a green lease
- Tracked asset-level energy consumption across Madison Funds VI and VII
- Negotiated ESG Reporting Requirements in 100% of Joint Venture Agreements
- EnergyStar and Green Certifications Tracking
Social Achievements
- Became a Signatory of the UNPRI
- Signed the CEO Action for Diversity and Inclusion
- Created an ESG Scorecard to evaluate ESG maturity of sponsors
- Launched the ‘Madison Cares’ monthly newsletter
- Launched the virtual Madison Book Club
- Provided PPE and free medical concierge services to employees
- Completed unconscious bias training for all employees in April 2021
Governance Achievements
- Formalized Madison’s Philanthropy Committee
- Engaged with ESG and Sustainability Advisors for policy development and due diligence
- Completed mandatory ESG training for all Madison investment professionals
- Updated Madison’s Investment Process
- Updated Madison’s ESG Policy
Climate Goals & Targets
Short-term Goals:
- Update Diversity, Equity, and Inclusion Policy
- Enhance ESG Data Analytics
- Launch ESG Website
- Develop Responsible Contracting Policy
Environmental Challenges
- Difficulty obtaining ESG-related information in connection with real estate investing
- ESG-related factors may have little to no impact on an investment's profitability or value
- COVID-19 pandemic impacted operations and community engagement
Mitigation Strategies
- Disciplined, comprehensive approach to underwriting with in-house due diligence and industry specialists
- ESG considerations integrated into investment process where material and consistent with client mandates
- COVID-19 response included outreach and relief efforts, virtual mentoring, food drives, and employee support
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, GRESB, UNPRI
Third-party Assurance: ESG consultant review; no third-party assurance
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Climate Change
- Diversity, Equity & Inclusion
- Human Capital
- Climate Disclosure
- Business Integrity
- Tenant Satisfaction
- Health & Safety
- Business Continuity
- Community Engagement
- Data Security & Privacy
- Energy Management
- Greenhouse Gas Emissions
- Emerging ESG Regulations
- Employee Recruitment
- Asset Level Certifications
- Market Presence
- Asset Transportation & Accessibility
- Strategic Partnerships
- Training & Workforce Development
- Anticompetitive Behavior
- ESG Activity Disclosures
- Supplier/Vendor Labor Practices
- Waste Management
- Charitable Giving & Volunteering
- Employee Satisfaction & Retention
- Responsible Procurement
- Climate Change Resilience
- Water Management
- ESG Disclosure Participation
- Policy & Strategy
- ESG Authority
- Sponsor Management
- Corporate Environmental Performance
Environmental Achievements
- Retroactively offset all 2019, 2020, and 2021 corporate electric use in NYC, London, and Frankfurt offices through the purchase of Renewable Energy Certificates (RECs)
- Developed Asset-level KPI tracking dashboard. Collected energy and water KPIs for flagship fund investments where available.
- Window replacement and facade restoration at Trinity Centre (New York) completed in 2020
- Proactively analyzed and addressed 2024 implications of Local Law 97 regulation regarding carbon emission reduction in New York
- Implemented green leasing to ensure landlord & tenant partnership for energy efficiency upgrades and sustainability efforts
Social Achievements
- CEO Action for Diversity & Inclusion Pledge
- Implemented required company-wide DEI training
- Increased employee fitness benefits
- OneMedical membership provided to employees
- Expanded Parental Leave offering
- Formalized Social Impact Committee
- Established Madison’s four Pillars of Social Impact
- $520,869 Donated (since Jan 2020)
- 1,563 hours volunteered by Madison employees (since Jan 2020)
Governance Achievements
- Established ESG Policy, Responsible Investment Policy, DEI Policy
- Published first GRI-referenced CSR Report in 2021
- UN PRI signatory as of 2020, first submission in May 2021
- Maintain and update Compliance Manual and Cybersecurity Policy
Climate Goals & Targets
Long-term Goals:
- Support global climate goals through integrating physical and transition climate risks with investment underwriting and asset mgmt
- Enhance DEI monitoring and transparency
- Implement supply chain diversity tracking initiative
- Create long-lasting partnerships within our community to deliver impactful engagement events
- Mitigate exposure to regulation through proactive monitoring and engagement
Medium-term Goals:
- Utilize green building certifications/energy ratings to drive sustainable development and operations of assets in line with global sustainability goals
- Establish DEI targets supported by actionable initiatives to further integrate inclusion with Madison’s culture
- Utilize feedback from employee engagement surveys to enhance engagement offerings
- Provide a collection of health & well-being benefits to support Madison’s workforce inside and outside of the office
- Target 100% participation by Madison employees
- Bi-annually complete materiality assessments to reassess and engage on stakeholder ESG priorities
Short-term Goals:
- Increase data coverage and expand data collection to include emissions data
- Annually benchmark 100% of investments energy and water consumption
- Engage sponsors to increase quantity of certifications and ratings
- Issue 2022 Employee Engagement Survey, and implement new initiatives based on identified areas for improvement
- Establish process for creating Employee Resource Groups
- Create annual community engagement calendar
- Complete second materiality assessment
- Launch ESG website
- Evaluate alignment with UN Global Compact
- Complete second UN PRI submission
- Develop Responsible Contracting Policy
Environmental Challenges
- ESG-related information may be difficult to obtain in connection with real estate investing, and ESG-related factors may have little to no impact on an investment's profitability or value
- Data limitations in supporting infrastructure (metering, etc.), technology and lease limitations
Mitigation Strategies
- In-depth asset, deal sponsor and company research and engagement to understand material ESG risks and opportunities
- Annual review of year-over-year changes based on scorecard results, including new initiatives implemented and opportunities in program development
- Ongoing ESG monitoring and sponsor engagement
Supply Chain Management
Responsible Procurement
- Vendor Code of Conduct
Climate-Related Risks & Opportunities
Transition Risks
- Local Law 97 (NYC)
Reporting Standards
Frameworks Used: GRI, UN PRI