Apple Hospitality REIT, Inc.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:113,615 tCO2e/year

Scope 1 Emissions:28,187 tCO2e/year

Scope 2 Emissions:85,428 tCO2e/year

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:380,000 MWh/year

Water Consumption:923,000 kgal/year

Waste Generated:Not disclosed

Carbon Intensity:6.03 kgCO2e/square foot

ESG Focus Areas

Environmental Stewardship
Social Responsibility
Governance & Resilience

Environmental Achievements

5% reduction in energy intensity per occupied room
4% reduction in water intensity per occupied room
14% diversion rate (based on measured waste data representing 59% of the total portfolio)

Social Achievements

110+ nonprofit organizations impacted
625+ volunteer hours
100% employees received annual reviews
Top Workplaces in Richmond 2021, 2022 and 2023 (based on employee engagement surveys)

Governance Achievements

Board of Directors with 33% women and 67% independent members
78% of executive target compensation is incentive-based, with 50% based on shareholder returns
100% participation in DEI and anti-harassment training

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Not disclosed

Short-term Goals:

Set reduction targets for energy, emissions, and water
Increase recycling participation at hotels

Environmental Challenges

Increased operating costs associated with climate-risk mitigation efforts and enhanced ESG reporting requirements
Changing consumer preferences
Extreme variability in weather and shifts in asset valuations (long-term)

Mitigation Strategies

Broad geographic diversification of portfolio
Active risk management, property enhancements, preventative maintenance
Investing in energy efficiency, water conservation, and waste reduction projects
Monitoring power purchase contracts for increased renewable energy use and locking in longer-term, fixed rates
Implementing energy-efficient technology and conservation programs
Considering environmental and weather-related risks in capital investment and asset acquisition/disposition strategies
Purchasing business interruption insurance

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Leveraging procurement, logistics, and supply chain programs established by franchise brands
Responsibly sourcing materials for hotel renovations
Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events (hurricanes, droughts, wildfires, floods)
Rising sea levels
Systemic climate shifts

Transition Risks

Increased insurance premiums
Changing consumer behaviors
Increased requirements and regulations for climate-related disclosure and actions
Reputation and stakeholder perception and concern
Increased operational, capital, and reporting costs
Uncertainty in market signals
Asset valuation shifts

Opportunities

Use of renewable energy, sustainable supplies and building materials, reduced water usage
Energy efficiency and efficacy programs and resulting financial savings
Rebates and incentives offered with regulatory changes
Continued enhancement of companywide ESG performance reporting
Low-emission goods and services
Viability and asset value protection resulting from investment in resilience measures

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: LEED Certified® (2 hotels)

Third-party Assurance: Ernst & Young LLP (financial statements only)

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

Top Workplaces in Richmond 2021, 2022, and 2023

Reporting Period: 2023