Climate Change Data

Environmental Metrics

ESG Focus Areas

• Affordable Housing
• Environmental Impact
• Diverse Teams
• Strong Governance

Environmental Achievements

• Launched an environmental task force to develop environmentally friendly homes
• Reached 50% of Progress homes equipped with smart-home technology (estimated energy savings of ~11.7M kWh)
• Launched a 40-home energy reduction pilot program (projected 20%+ energy savings)
• Invested $7.5M in Hurricane Ian reconstruction
• Inaugural submission to GRESB for ~30,000 homes

Social Achievements

• Expanded Affordable Housing team, serving more families through the Housing Choice Voucher program
• Positive rent reporting for 156,529 residents, establishing 147 first-time credit scores (Esusu)
• Launched Pride at Pretium, an employee resource group
• Relocated 41 vulnerable families from Forest Cove to homes in higher-opportunity areas
• Opportunity Home program facilitated 44 families' moves to neighborhoods of choice
• Provided $17.96M in rent forgiveness to 3,000+ families
• Provided $52.8M in emergency rental assistance to 5,605 residents

Governance Achievements

• Became a signatory to the UN Principles for Responsible Investment (PRI)
• Became a signatory to the CFA Institute’s Diversity, Equity, and Inclusion Code
• Expanded ESG team and ESG consultants
• Launched Learning & Development department
• Published second annual State of ESG report

Climate Goals & Targets

Environmental Challenges

• Complex and non-standardized ESG data in corporate credit
• Data limitations on energy usage (lack of access to residents' electricity accounts)

Mitigation Strategies

• Continuous improvement and expansion of ESG grading system in corporate credit
• Partnership with Measurabl for utility data management and benchmarking
• Development of updated environmentally forward renovation scope with energy monitoring

Supply Chain Management

Responsible Procurement

• ENERGY STAR certified appliances
• WaterSense labeled fixtures
• GREENGUARD certified paints
• Long life cycle products

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs), GRESB, TCFD (partial alignment)

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 10
• 11
• 12
• 13

Appendix details how initiatives contribute to these goals

Sustainable Products & Innovation

• Energy-efficient appliances
• Smart home technology
• Drought-tolerant landscaping
• Long life cycle products

Awards & Recognition

• Military Friendly® Award
• Global Candidate Experience Award
• Michelson Found Animals Foundation’s “Most Innovative Pet Friendly Marketing Award”

Environmental Metrics

ESG Focus Areas

• People
• Social Impact
• Environmental
• Governance

Environmental Achievements

• Progress Residential added more than 500 Energy Saver Homes under its Enhanced Energy Efficiency Renovation Scope, met its goal of equipping 70% of homes with Smart Home technology, and launched a solar panel pilot program.

Social Achievements

• Progress Residential maintained an A+ Better Business Bureau rating and managed more than 2,250 Housing Choice Voucher homes — representing a 74% increase year-over-year. In addition, Progress Residential facilitated positive rent payment reporting for more than 185,000 residents, creating nearly 8,000 new credit scores for previously credit invisible individuals.
• Selene Finance stabilized more than 14,500 homeowners with non-performing loans through sustainable loan modifications.
• Deephaven Mortgage originated more than 3,000 homeowner mortgage loans, 17% of which were for first-time buyers.
• Anchor Loans funded over 1,900 construction, ground-up, and renovation loans, totaling more than $1.6 billion.

Governance Achievements

• Submitted first United Nations Principles for Responsible Investing report for real estate and fixed income strategies and made second submission to the Global Real Estate Sustainability Benchmark for two largest housing funds, with increased scores by more than 13% and 16%, respectively.

Climate Goals & Targets

Environmental Challenges

• Complex and non-standardized ESG data in corporate credit.
• Collecting and digesting utility consumption data across tens of thousands of homes.

Mitigation Strategies

• Continuous improvement and expansion of the ESG grading system.
• Partnership with real estate data management platform to measure, monitor, and act on key performance indicators from available tenant-controlled utility data.

Supply Chain Management

Supplier Audits: Launched a program to engage with direct suppliers and contractors on sustainability categories in 2023.

Responsible Procurement

• Sustainability Policy
• Questionnaire on business ethics, environmental process, product standards, employee health and safety, inclusion, and working condition standards

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Winter storms
• Tornadoes
• Hurricanes

Opportunities

• Development of energy-efficient products
• Expanded solar panels, batteries, virtual power plants

Reporting Standards

Frameworks Used: GRI, UN Sustainable Development Goals

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 5
• 7
• 8
• 10
• 11
• 12
• 13

See UN Sustainable Development Goal (SDG) Content Index in Appendix.

Sustainable Products & Innovation

• Energy Saver Homes
• Solar Homes

Awards & Recognition

• Charles A. Thompson Award for Distinguished Service
• NAHRO Advocacy Award
• Great Place to Work US Certification (Progress Residential)