Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Sustainability
• Corporate Governance

Environmental Achievements

• Reduced greenhouse gas emission intensity by 1.49% and energy intensity by 2.34% between 2018 and 2019. Water intensity decreased by 4.20% since 2018.
• Invested over $250,000 in energy efficiency projects, resulting in over 900,000 kWh in energy savings and nearly $110,000 in annual cost savings.
• Completed construction of a hotel in Los Angeles County built to CalGREEN and LEED Silver standards.

Social Achievements

• Signed the CEO Action for Diversity and Inclusion pledge.
• Pledged to the American Hotel & Lodging Association’s 5-Star Promise.
• Supported charitable organizations focused on food security and youth empowerment, resulting in 6,300 lbs of donated food, 5,705 meals prepared, 2,106 young people impacted and $21,800 raised.

Governance Achievements

• Established ESG policies including Environmental Policy, Human Rights Policy, Supplier Code of Conduct, and Anti-Harassment Policy.
• Board oversight of ESG risks through the Nominating and Corporate Governance Committee.
• Strong corporate governance practices including gender and ethnic diversity on the Board of Trustees, a majority of independent trustees, and a Code of Business Conduct.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on the hospitality industry.
• Renewed attention to racial injustices.
• Improving waste tracking and continuously improving the portfolio’s environmental efficiency.

Mitigation Strategies

• Reinforced corporate responsibility commitments.
• Ensuring safety of workers and guests.
• Promoting diversity and inclusion.
• Working with third-party hotel management partners to improve waste tracking and environmental efficiency.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Working with Ecolab to ensure safe and environmentally friendly chemicals

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: LEED Silver (for one hotel)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Sustainability
• Corporate Governance

Environmental Achievements

• 27% reduction in greenhouse gas emission intensity since 2017
• 14.8% reduction in energy intensity since 2017
• Construction of a hotel in Los Angeles County built to CalGREEN and LEED Silver standards

Social Achievements

• Continued support for Quantum House and other local charities
• CEO joined the CEO Action for Diversity and Inclusion initiative
• Increased diversity on the Board of Trustees

Governance Achievements

• Establishment of an ESG Committee in February 2022

Climate Goals & Targets

Environmental Challenges

• High water risk for almost half of the portfolio
• High climate risk for just under half of the portfolio
• High biodiversity risk for almost half of the portfolio
• Socio-economic risks such as crime, air pollution, and food insecurity

Mitigation Strategies

• Portfolio-wide risk assessment to identify and address challenges
• Development of best practices for withstanding extreme weather events
• Due diligence to ensure properties do not negatively impact local biodiversity
• Collaboration with local communities to reduce violent crime and food insecurity

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Procurement of sustainable materials

Climate-Related Risks & Opportunities

Physical Risks

• Inadequate water supply
• Extreme weather events
• Building flooding
• Fire damage
• Poor indoor air quality
• Rising mean temperatures
• Sea level rise
• Precipitation change
• Temperature change

Transition Risks

• More stringent building codes
• Higher customer expectations
• Increased insurance premiums
• Requirements to change equipment
• Increased ESG disclosure requirements

Opportunities

• Increased consumer preference for green hotels
• Improved emergency response practices
• Increased building and operating efficiencies
• Increased revenue from green initiatives
• Financial savings from renewable energy and efficiency
• Availability of low-emission goods and services
• Increased long-term asset value

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

UN Sustainable Development Goals

• Good Health and Well-being
• Clean Water and Sanitation
• Affordable and Clean Energy
• Reduced Inequalities
• Responsible Consumption and Production
• Climate Action
• Life Below Water

The report details how Chatham's strategies and actions contribute to these SDGs.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Risk
• Sustainability
• ESG
• Human Rights
• Human Capital Management
• Community and Social Impact
• Diversity and Inclusion

Environmental Achievements

• Set 2030 portfolio-wide environmental intensity reduction targets using a 2017 baseline year, including a target to cut carbon emissions by 50% by 2030, and reduce energy intensity and water intensity by 30% by 2030 respectively.

Social Achievements

• Not disclosed

Governance Achievements

• Established an Environmental, Social and Governance (ESG) Committee in February 2022.

Climate Goals & Targets

Environmental Challenges

• Inadequate water supply
• Extreme weather events
• Building flooding from storm surges
• Fire damage from wildfires
• Poor indoor air quality
• Rising mean temperatures
• More stringent building codes for existing and new buildings
• Higher customer expectations for decarbonized travel
• Expectations of business travelers for carbon neutral stays and meetings
• Reduced demand for group travel due to organizational initiatives to reduce environmental impacts of business travel
• Increased insurance premiums for hotels located in areas with high exposure to physical climate risk factors
• Requirements to change out equipment or structures such as accommodation of electric vehicles for parking
• Increased requirements for ESG disclosure from investors and operators
• Sea level rise
• Precipitation change
• Temperature change

Mitigation Strategies

• Investments in resilience and planning as part of the capital budgeting process and asset planning
• Developing best practices for withstanding extreme weather events and impacts to our buildings
• Active engagement with brands and operators to identify energy efficiency and renewable energy opportunities
• Compliance with brand standards that include minimum guidelines for energy and water efficiency
• Insurance procurement process addressing specific climate risks
• Emergency manuals for each hotel including procedures for addressing emergencies caused by physical risks of climate change
• Evaluating the pathway and corresponding budgetary needs required to reduce its emissions toward net zero over the next 30 years

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Inadequate water supply
• Extreme weather events
• Building flooding from storm surges
• Fire damage from wildfires
• Poor indoor air quality
• Rising mean temperatures
• Sea level rise
• Precipitation change
• Temperature change

Transition Risks

• More stringent building codes
• Higher customer expectations for decarbonized travel
• Expectations of business travelers for carbon-neutral stays and meetings
• Reduced demand for group travel
• Increased insurance premiums
• Requirements to change equipment
• Increased requirements for ESG disclosure

Opportunities

• Improved emergency response practices
• Increased consumer preference
• Increased building and operating efficiencies
• Increased revenue from adhering to customer preferences for ‘green’ hotels
• Financial savings resulting from investments in renewable energy and efficiency
• Availability of low emissions goods and services
• Increased long-term asset value

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Sustainability
• Corporate Governance

Environmental Achievements

• 24.5% reduction in greenhouse gas emission intensity since 2017
• 10.6% reduction in energy intensity since 2017
• 5.9% reduction in water intensity since 2017
• Invested approximately $4 million in efficiency improvements in 2023

Social Achievements

• Supported various charitable organizations through donations and volunteering activities in 2023
• 29% female representation on the Board of Trustees post annual meeting in 2024
• 14% African American representation on the Board of Trustees post annual meeting in 2024
• Commitment to achieving no less than 30% female representation on the Board by the end of 2025
• 100% of associates trained to recognize signs of human trafficking at all properties

Governance Achievements

• Established an ESG Committee in 2022
• Achieved an overall GRESB score of 83/100 in 2024
• Inclusion of ESG/Governance Factors in executive compensation performance reviews

Climate Goals & Targets

Environmental Challenges

• Portfolio-wide assessment revealed high to very high water risk in almost half of Chatham’s portfolio, primarily due to baseline water stress.
• High to very high climate risk in just under half of the portfolio, mainly due to long-term temperature and precipitation change.
• Almost half of the portfolio is within 5km of a recognized protected area, impacting biodiversity.
• Socio-economic risks such as crime, air pollution, and food insecurity.

Mitigation Strategies

• Further research and adaptive plans for climate and water risk impacts.
• Due diligence to ensure properties and operations do not negatively impact local biodiversity.
• Collaboration with local communities to reduce violent crime through job creation, education, and mental health services.
• Support for properties in counties with high food insecurity to address food waste.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (2021)
• Procurement of sustainable materials for development projects
• Collaboration with contractors and brands on sustainability standards during renovations

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Cyclone
• Temperature change
• Flood
• Precipitation change
• Sea level rise

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: LEED (Silver and Certified), Green Globes, Austin Energy Green Building

Third-party Assurance: ANSI-accredited assurance provider (limited assurance)

UN Sustainable Development Goals

• Good Health & Well-being
• Clean Water and Sanitation
• Affordable and Clean Energy
• Reduced Inequalities
• Responsible Consumption and Production
• Climate Action
• Life Below Water
• Partnerships for the Goals

Initiatives described in the report align with these SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• GRESB Green Star (2024)
• NAREIT 2024 Diversity Impact Award for Small Cap REITs