Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Initiated annual property inspections, assessing sustainability features at approximately 20% of properties.
• Launched a tenant outreach survey, with approximately 224 respondents reporting on implemented energy-efficient measures (89% reported at least one).

Social Achievements

• Supported community organizations like Arizona Helping Hands and JDRF, with employee volunteering and donations.
• Implemented employee engagement committees to foster professional development and well-being.

Governance Achievements

• Adopted Proxy Access provision.
• Stockholders approved amendment to Bylaws allowing them to amend Bylaws.
• Established ESG oversight through the Nominating and Corporate Governance Committee and a Sustainability Working Committee.

Climate Goals & Targets

Environmental Challenges

• As a net-lease REIT, STORE Capital does not directly control tenant operations or sustainability practices at each property location.

Mitigation Strategies

• Engaging tenants through surveys and initiatives to encourage sustainable practices.
• Incorporating environmental risk assessment into the property acquisition process.
• Implementing a Vendor Code of Conduct promoting environmental stewardship.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Advanced commitment by hiring a dedicated ESG professional to head customer programs and reporting, engaging energy optimization specialists to develop turnkey solutions.
• Growing interest and participation in customer programs promoting solar power, efficient building energy technologies, and electric car charging (16 stations in place, over 40 in process).
• Dramatically increased disclosure in reference to the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB).

Social Achievements

• Significant progress in gender equality, included in the Bloomberg Gender-Equality Index for the second consecutive year.
• Committed resources to recruit and retain a diverse workforce; employee diversity increased by over 9% in ethnicity in 2021.
• Increased commitments to employee benefits (parental leave, charitable volunteer work credits, charitable gift matching, training and reimbursement programs).
• Initiated a STORE Capital stock equity grant program.

Governance Achievements

• Successfully concluded Board of Directors-led succession planning process in 2021.
• STORE is one of only three publicly traded US corporations with women serving as non-executive Chairman of the Board, CEO, and CFO.
• Nine-person Board of Directors (eight independent) includes three women and two members diverse in ethnicity.

Climate Goals & Targets

Environmental Challenges

• As a triple-net lease REIT, STORE has limited physical control of the properties it leases, making direct environmental impact mitigation challenging.

Mitigation Strategies

• Focus on educating customers on environmental strategies, soliciting feedback, gathering data, developing vendor relationships, and supporting customers in implementing green programs.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct (covers fair business practices, safe labor conditions, human rights, environmental stewardship)

Climate-Related Risks & Opportunities

Physical Risks

• Water-related risks

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Certifications: WELL Certified™ (corporate office)

Awards & Recognition

• 2022 Bloomberg Gender-Equality Index
• 2021 SRP Champions of Sustainability Award (Mountainside Fitness)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Enhanced environmental initiatives and partnerships with a continued focus on energy savings and carbon footprint reductions at portfolio properties
• Expanded vendor programs by partnering with additional vendors to identify opportunities and streamline the tenant engagement process
• Added 138 properties to the pipeline for evaluations for EV charging stations and increased providers to meet customer needs
• Added EV charging solutions at company HQ to support employees' transition to a lower carbon economy

Social Achievements

• Selected as a member of the Bloomberg Gender-Equality Index for the third consecutive year, increasing GEI score by over 8% and data excellence score by 56%
• Awarded the Great Place to Work Certification in 2022 and 2023, with top scores in justice, community, and leadership behavior
• Introduced a Diversity, Inclusion, Equity and Belonging Policy
• Expanded Parental Leave Policy resulting in a 200% increase in usage from 2021 to 2022

Governance Achievements

• Appointed a new Board to oversee governance efforts, operating similarly to the publicly traded board
• Revised corporate policies to reflect changes to governance structure and Board of Directors

Climate Goals & Targets

Environmental Challenges

• Difficulty accessing energy usage and emissions data from most of the portfolio due to the triple-net lease structure
• Rising tenant costs due to future grid energy decarbonization, water usage, increased insurance premiums, and legislation requiring retrofits
• Large investments in new carbon-focused technology may be required
• Changing customer behavior and tenants' growing expectations for highly efficient and resilient buildings
• Risk of not responding to shifting tenant preferences and inability to comply with future regulations

Mitigation Strategies

• Introducing green lease terms into new leases to collect energy usage data
• Performing comprehensive due diligence, including environmental evaluations and sustainable practices assessments, on each property prior to acquisition
• Promoting efficiency through National Vendor Programs offering energy management, optimization, renewable energy, auditing, and financing for sustainability projects
• Working with tenants to reduce their impact and enhance properties' climate resilience
• Proactively reaching out to customers to explore energy efficiency and carbon emissions reduction opportunities

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct outlining standards for fair and ethical business practices, safe labor conditions, respect for human rights, and environmental stewardship

Climate-Related Risks & Opportunities

Physical Risks

• Coastal and flash floods
• Extreme precipitation
• Hurricanes
• Severe weather
• Wind storms
• Heatwaves
• Wildfires
• Poor air quality
• Droughts
• Water scarcity

Transition Risks

• Potential and emerging regulations
• Increased emissions & risk reporting obligations
• Increased operating costs
• Cost to transition to lower emissions technology
• Changing customer behavior
• Shifting tenant preferences

Opportunities

• Resilience and resource efficiency
• Promoting efficiency and cost savings
• Enhanced customer focus
• Tenant expectations
• Enhanced resilience and efficiency
• Shifting market opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Awards & Recognition

• Bloomberg Gender-Equality Index (2023)
• Great Place to Work Certification (2022, 2023)