Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced normalized emissions intensity by 4.1% (2019 vs. 2018) for properties tracked by H&R Utility Tracker.
• Achieved LEED and/or BOMA Best certifications for 59% of H&R’s Office Portfolio.
• ENERGY STAR Certification for 32% of H&R’s Office Portfolio.
• Like-for-like Greenhouse Gas (GHG) market-based emissions decreased by over 10% in 2020 compared to 2019.
• Like-for-like electricity use decreased by 9% in 2020 compared to 2019.
• Like-for-like water use decreased by 9.6% in 2020 compared to 2019.

Social Achievements

• Lantower Residential achieved “Great Place to Work” certification.
• Earned a spot on the Report on Business Women Lead Here list.
• Women represent 45% of Senior Executives, 42% of All Executives, 47% of Overall Workforce, and 25% of the Board of Trustees in 2020.
• Implemented COVID-19 safety protocols and business continuity measures.
• Supported community partnerships raising over $450,000 for Canadian Mental Health Association, over $880,000 for University of Quebec students, and over $270,000 for The Foundation of Guelph General Hospital.

Governance Achievements

• Established a Whistleblower Program.
• Created a Code of Business Conduct and Ethics with 100% employee compliance.
• Limited tenure for all new trustees to 10 years.
• Expanded the minimum unit ownership to Trustees and all Executive Officers.
• Implemented a clawback policy applicable to all incentive compensation.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and occupancy.
• Accurately reporting savings from resource reduction initiatives versus reduced occupancy during the pandemic.

Mitigation Strategies

• Implemented COVID-19 safety protocols and business continuity measures.
• Continued to evaluate and improve the environmental footprint of assets, confident that efficiency improvements will be reflected in future years.

Supply Chain Management

Responsible Procurement

• Sustainable procurement guidelines in Environmental Purchasing Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Awards & Recognition

• LEED Platinum and Gold certifications
• BOMA 360 Performance Building certification
• ENERGY STAR Certification
• International TOBY Award
• Report on Business Women Lead Here list

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 71% of H&R’s Office Portfolio LEED, BOMA Best and/or ENERGY STAR Certified
• 88% of H&R’s Office Portfolio is actively tracked on ENERGY STAR Portfolio Manager
• 2.5% reduction in total market-based emissions in 2020 vs. 2019
• 3.7% reduction in like-for-like electricity use in 2021 compared to 2020
• 2% reduction in like-for-like water use in 2021 compared to 2020

Social Achievements

• Implementation of mandatory immunization as a building entry requirement
• 1.04 Incident frequency rate that resulted in lost work days
• 0 Fatalities as a result of work-related injury
• 45% women in senior executive roles in 2021
• 50% women in all executive roles in 2021
• 37% women in overall workforce in 2021
• 33% women on the Board of Trustees in 2021

Governance Achievements

• Established policies governing the tenure and constitution of its Board
• Significant Board refreshment with two trustees resigning and four new trustees elected in 2021
• 78% of the Board being fully independent
• Use of a “Say on Pay” vote and independent compensation consultants
• 100% response rate on Code of Business Conduct and Ethics attestation

Climate Goals & Targets

Environmental Challenges

• Data coverage limitations (67% in 2021)
• Challenges in accurately reporting resource reduction initiatives versus reduced occupancy during the pandemic
• Impact of Varroa mites on beehives

Mitigation Strategies

• Implementation of Meter Reader Mobile (MRM) app to expand utility data coverage
• Waste Tracking implemented for H&R managed properties
• Introduction of new queen bees to repopulate impacted beehives

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Third-party Assurance: KPMG LLP (limited assurance on selected Scope 1 and 2 GHG emissions data)

Awards & Recognition

• ENERGY STAR Commercial Building of the Year (Brian Canfield Centre, 2020)
• ENERGY STAR Office Building of the Year (Brian Canfield Centre, 2021)
• ENERGY STAR Certification (145 Wellington Street West, 2021)
• Report on Business Women Lead Here list

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Energy Use
• Water Use
• Waste
• Climate-related risks and opportunities

Environmental Achievements

• 8.2% reduction in market-based GHG emissions in 2023 vs. 2022
• 7.9% reduction in market-based GHG emissions in 2023 compared to the 2019 base year
• Increased energy data coverage from 62% in 2019 to 83% in 2023

Social Achievements

• Not disclosed

Governance Achievements

• Board oversight of climate-related risks and opportunities through the Compensation, Environmental, Social & Governance and Nominating Committee (CESG&N Committee)

Climate Goals & Targets

Environmental Challenges

• Data limitations due to tenant-controlled utilities and incomplete data for some properties
• Transition risks associated with shifting to a low-carbon economy
• Physical risks from extreme weather events

Mitigation Strategies

• Developed an Environmental Management System to formalize strategic approach to ESG
• Engaged insurers to provide a Climate Change Impact Report to assess physical climate risks
• Continuous improvement of building performance through operational improvements and incentive programs
• Utilizing platforms to visualize building and portfolio performance

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme precipitation
• Wind
• Temperature
• Drought
• Sea level rise

Transition Risks

• Regulatory changes
• Market shifts
• Evolving stakeholder expectations

Opportunities

• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: LEED, BOMA BEST, ENERGY STAR

Third-party Assurance: KPMG LLP (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed