< > 2016 CORPORATE RESPONSIBILITY REPORT SIMCOE PLACE, TORONTO CORPORATE PROFILE ABOUT THIS REPORT MATERIAL IMPACTS ASSESSMENT CEO S MESSAGE

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1 SIMCOE PLACE, TORONTO 2016 CORPORATE RESPONSIBILITY REPORT

2 WINDSOR STATION, MONTREAL 2 Cadillac Fairview (CF) is one of North America s largest owners, operators and developers of commercial real estate. Our mission is to own, operate and develop best-in-class retail, office and mixed-use properties to generate long-term, stable cash flow and risk-adjusted returns. The CF portfolio is valued at $29.7 billion and encompasses over 38 million square feet of leasable space at 73 properties across North America. CF is wholly owned by the Ontario Teachers Pension Plan. Ontario Teachers is a diversified global investor and administers the pensions of more than 300,000 active and retired school teachers. Our 2016 Corporate Responsibility Report highlights CF s activities and accomplishments primarily between September 1, 2015 and August 31, 2016 the reporting period for our Green at Work (GAW) program. However, there is additional information that pertains to the 2016 calendar year. The report disclosures encompass all of CF s Canadian commercial and retail properties, and has been prepared in accordance with the GRI Standards: Core option. Additional components required by the GRI Standards that are not contained in this report can be found in the GRI Supplement. The GRI Content Index is separate from the report and is available on our corporate website. Please note the following considerations regarding data boundaries and conversion factors: Energy data includes all reported and managed electricity, natural gas, steam and chilled water consumption for office buildings and common areas within retail properties. Greenhouse gas emissions data includes client and common areas at commercial office properties. Data includes common areas for retail properties, but excludes client spaces. Water data includes all properties, but excludes heavy users. Waste data includes all properties. Baseline data is normalized for weather, occupancy, major users and portfolio changes. CF uses the Greenhouse Gas Protocol, which aligns with ISO 14001, in accounting for greenhouse gases. Activity data includes natural gas, generator fuels, fugitive refrigerant losses, vehicle fuels, grid electricity, steam, chilled water, landfill waste and water. The gases included in the calculations are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3). Emission factors are used as per the National Inventory Report published by Environment Canada.

3 3 Our Responsibility objectives and strategy are developed in consultation with internal and external stakeholders and industry experts. The content of our Corporate Responsibility Report reflects themes most important to our stakeholders and the management team. If these environmental, social and governance aspects are managed effectively, the company, our stakeholders, our communities and the environment will all benefit. In order to identify and prioritize material aspects to the organization, in 2015, we formally conducted a materiality assessment by interviewing over 40 individuals representing internal stakeholders, as well as external stakeholders such as clients, suppliers and industry bodies. You can find more information about this process in the GRI Supplement. We continue to refine our approach to managing material aspects by obtaining frequent input on our Corporate Responsibility and Sustainability programs. We are also integrating brand and Enterprise Risk Management strategies and frameworks through our Responsibility Steering Committee and Responsibility Management Council, which are comprised of more than 20 senior leaders of the organization. HIGHER PRIORITY ASPECTS EXTERNAL STAKEHOLDERS LOWER PRIORITY ASPECTS Green leases LOWER PRIORITY ASPECTS Responsible employment EMS GHG emissions Sustainability governance Community impact Regulatory compliance Sustainable development Water Health & safety Air quality Occupant wellness Risk mgmt Ethics Responsible procurement Building certifications Waste INTERNAL STAKEHOLDERS Energy Financial performance People and Culture Client satisfaction HIGHER PRIORITY ASPECTS LEGEND Environmental Social Governance Included in report Included in supplement

4 4 CORPORATE RESPONSIBILITY AT CF: EMBEDDED AND ACTIVATED In last year s report, I outlined an ambitious agenda for 2016, identifying key outcomes to build on CF s continued leadership in environmental, sustainability and community support. They included the rollout and embedding of our Responsibility Strategic Plan; development of the next iteration of our Green at Work program, as well as ensuring that we achieve our targets for reducing our environmental footprint; new green leasing and occupant wellness initiatives; and a new approach to philanthropy for major gifts and partnerships. I am pleased that we made substantial progress in meeting these priorities and with this report, we are providing details on our successes, challenges and results. Our 2016 metrics demonstrate our ability to meet and even exceed specific targets while undergoing growth in the size and scope of our business. For example, CF s portfoliowide conservation efforts, resulted in 3.1% and 3.9% reductions respectively in energy and water consumption in 2016, and contributed to some $40 million in accumulated savings since our 2008 baseline. Between 2008 and 2016, we have also reduced our carbon emissions by 43%. The efforts of our team have led to industry recognition and distinction during the past year: Being recognized as one of Canada s Greenest Employers Achieving the Global Real Estate Survey Benchmark (GRESB) Green Star ranking Adding nine new LEED (Leadership in Energy and Environmental Design) Platinum and three LEED Gold certifications to our portfolio; including Toronto- Dominion Centre becoming one of the first and largest Platinum certified LEED complexes in North America Collaborating with TD Bank to assist in its achievement of the first WELL certification (Gold) in the world under V1 Scoring A+ in the Direct Property Investing module conducted by the United Nation s-backed, Principles for Responsible Investment Initiative Contributing close to $200,000 in support of local charities in 2016 and forming an exciting partnership with WE I view these accomplishments as milestones in a conscious process of transformation. Over the past two years, we have redefined our approach to Corporate Responsibility most notably, by assigning direct oversight of our Responsibility Strategic Plan to our Executive team. This formally elevates and embeds responsible practices across all our developments, operations and investments. The entire CF team is excited by the possibilities in 2017, as we continue our mission to have our people and properties recognized as building leaders. Environmental, societal and governance principles are fundamental to all aspects of CF s business operations. All of our decisions are made through the lens of Corporate Responsibility. John Sullivan Chief Executive Officer and Chair, CF Responsibility Steering Committee

5 5 For decades, CF has demonstrated industry leadership with sustainability core principles directing the way we run our business and develop our properties. Here is a sampling of how we have applied new technologies and best practices to minimize our environmental impact: ONGOING 1. DEEP LAKE COOLING (2005) CF was one of the first companies to use the Enwave Deep Lake Water Cooling system to significantly reduce GHG emissions at all its downtown Toronto office properties. The system transports cold water from 83 meters below the surface of Lake Ontario to Enwave s closed-loop chilled water network, which then distributes the water to air condition our buildings. 2. GREEN TEAMS/COUNCILS (2008) Most CF properties have Green Teams / Councils which identify, prioritize and catalyze sustainable practices throughout the property. The work of these groups has advanced our operational efficiency on environmental metrics while engaging stakeholders. 3. BEST-IN-CLASS MANAGEMENT (2008) CF Masonville Place in London achieved an outstanding water reduction of 34% between 2008 and 2014 by changing operational practices, upgrading equipment and collaborating closely with clients. Annual savings are estimated to be more than one million litres of water and almost 500,000 kwh of electricity. 4. REUSABLE DINING HALL DISHES (2009) CF Carrefour Laval in Quebec launched the first dining hall in Canada to offer patrons re-usable food wares, significantly reducing waste. The scullery washer cleans up to 14,000 dishes per hour, while using only 5 ml of water per dish. 5. ON-SITE COMPOSTING (2013) The on-site composter in the dining hall of CF Pacific Centre in Vancouver processes food waste and compostable plates, cups and napkins, significantly reducing waste volume by eliminating most of the water in the material. The clean compost is used as nutrient-rich fertilizer. CF Pacific Centre achieved a 70% reduction in organic waste, resulting in a 50% reduction in haulage costs to the organics depot. 6. WORLD-LEADING GEO-EXCHANGE RETROFIT (2014) 777 Dunsmuir Street in Vancouver implemented the first geo-exchange retrofit of an occupied, high-rise complex in a city core. The project involved drilling 30 boreholes 400 feet into the earth below the existing structure. Geoexchange reduces the energy costs and greenhouse gas emissions associated with traditional heating and cooling. 7. INNOVATIVE COGENERATION (2014) CF Chinook Centre in Calgary installed a 265-kW cogeneration unit, which simultaneously produces heat and power using clean-burning natural gas. This cutting-edge technology lowers greenhouse gas emissions by about 9,700 tonnes per year by capturing waste heat from electricity generation and using it to offset 75% of the heating needs. 8. DAYLIGHT HARVESTING (2015) Deloitte Tower is Montreal s first office building with LEED Platinum Core and Shell certification. More than 80% of the height of the dual pane glass wall on all office floors is specially insulated, promoting both energy efficiency and daylight harvesting to significantly reduce power consumption and contribute to overall comfort. 9. LIVING ROOFS (2015) CF Sherway Gardens has installed one of the largest Living Roofs in the Greater Toronto Area. At over 100,000 square feet, the roof is planted with native drought-resistant creek sedge grass which reduces storm run-off, provides cooling through evapotranspiration, reduces heat island effect and contributes to better air quality. 10. LEED LEADERSHIP (ONGOING) Currently, nine of our office properties are LEED Platinum certified. Toronto-Dominion Centre is one of North America s first and largest building complexes certified LEED Platinum. Simcoe Place augmented its LEED certification to Platinum, a level also attained by Deloitte Tower. In January 2012, RBC Centre attained LEED Gold Certification, becoming the largest certified LEED for New Construction project in Canada.

6 6 CORPORATE RESPONSIBILITY: Our Responsibility Strategic Plan has transformed the way we think about our role as a developer and our ability to strengthen the communities we impact. The Responsibility Steering Committee, chaired by the Chief Executive Officer, provides strategic input into the Responsibility plan and reviews progress and results Niall Collins Senior Vice President, Development Responsibility Management Council Member The Responsibility Management Council identifies opportunities, supports cross-departmental coordination, reports on departmental progress and contributes to internal and external reporting Director, Corporate Responsibility develops the plan and works with departments to implement initiatives As we enter emerging markets, our approach to Responsibility can help us shape partnerships and projects. Karl Kreppner Senior Vice President, Investments Responsibility Management Council Member Responsibility plan is aligned with Corporate Strategy and Enterprise Risk Management All of our teams at CF, from Operations to Development, drive many initiatives, with considerations for Environmental, Social, Governance (ESG) impacts high priority across the organization 2016 RESPONSIBILITY MANAGEMENT COUNCIL 1. Reinforce and promote a culture where CF employees feel connected to our Responsibility Strategy, empowered to positively impact the communities in which they live and work and contribute to a leaner footprint on our planet 2. Achieve the highest ESG industry standards relevant to our portfolio 3. Engage our clients, customers and other stakeholders in full understanding of our commitment < Inge van den Berg Vice President, Strategic Insights Responsibility Management Council Member CORPORATE RESPONSIBILITY OBJECTIVES We know the new generation of shoppers and employees build loyalty based on integrity and trust; Responsibility helps us to react to societal issues and get ahead of changing community needs. > 4. Ensure we operate with good management practices and rigorous oversight to protect our employees, our clients, our shareholder and other stakeholders * Not all council members are represented in this photo

7 CF PLACED IN THE TOP QUARTILE GREEN STAR RATING 7 OVER REDUCED million 23ekWh EQUIVALENT TO AMOUNT CONSUMED BY 780 CANADIAN HOUSEHOLDS IN A YEAR SURPASSED 2.5% REDUCTION TARGET WITH A 3.9% REDUCTION RATE WITH OVERALL REDUCTIONS OF 27% BETWEEN IMPROVED DIVERSION ACROSS ALL THREE PROPERTY TYPES (AAA OFFICE, NON-AAA OFFICE, RETAIL) FROM 73.5% TO77.4% DIVERTED OVER 52,0000 OF MATERIALS FROM LANDFILL TONNES EQUIVALENT TO 3,100 TRUCKS CONSERVED OVER million 63litres OF EQUIVALENT TO 480,000 AVERAGE SIZED BATHTUBS SURPASSED 2% REDUCTION TARGET WITH A 3.1% REDUCTION RATE WITH OVERALL REDUCTIONS OF 33% BETWEEN ACHIEVED AN A + IN THE DIRECT PROPERTY INVESTING MODULE BY THE UNITED NATION S- BACKED, PRI INITIATIVE ST WELL-CERTIFIED 1SPACE IN THE WORLD AT TD CENTRE UNDER V1 BOMA BEST CERTIFIED 45PROPERTIES CALGARY CITY CENTRE WON DOWNTOWN VITALITY AWARD IN FROM CALGARY DOWNTOWN ASSOCIATION URBAN DESIGN LEED PLATINUM 9TOWERS CF WAS RECOGNIZED AS REDUCED BY 2,900IN 2016 TONNES WITH OVERALL REDUCTIONS OF 80,000 TONNES BETWEEN EQUIVALENT TO REMOVING 600 CARS OFF THE ROAD

8 8 (GAW) Our National Operations group is responsible for supporting our portfolios and properties with expertise in operational excellence, procurement, health & safety, security and sustainability, including our GAW program. GAW, our national environmental sustainability program, integrates sustainability into building operations and maintenance. Since establishment in 2008, this program has resulted in a 43% reduction in GHG emissions and a savings of $40 million in energy and water costs. Under GAW, CF s properties are required to act on sustainability by planning and implementing projects to improve performance in five pillars of environmental impact. FIVE GREEN AT WORK PILLARS PILLAR DESCRIPTION TARGET MANAGEMENT ENVIRONMENTAL PROTECTION RESPONSIBLE PROCUREMENT STAKEHOLDER COLLABORATION Use energy conservation techniques, leading operational standards and efficiency technologies where possible. Implement an industry-leading approach to waste diversion and waste minimization. Focus on minimizing adverse impacts from our activities, products and services on land, air and water through management of hazardous materials, greenhouse gas emissions, air quality and water. Use environmentally preferred products and services and follow best management practices whenever possible. Collaborate with key stakeholders to inspire and drive positive change, share information about our sustainability initiatives and involve partners to contribute to the program s success. 2.5% total energy reduction per year Waste diversion rate: Retail 70%; non-aaa Office 75%; AAA Office 90% 2% total water reduction per year Embed sustainable procurement practices into our processes and policies Inform, educate and build partnerships for sustainability success with our clients, shoppers, employees, communities and industry GAW 2.1 In 2017, CF will launch GAW 2.1 an enhanced program, designed with input and collaboration from people across the company. GAW 2.1 aims to Enhance collaboration among Green Teams Better support properties by leveraging National and Portfolio-led initiatives Focus on best practices to drive higher levels of performance and align with industry standards

9 9 CF POLO PARK, WINNIPEG < > GREEN TEAMS Under the GAW program, each CF property forms a Green Team engaging employees and clients to integrate sustainability into the management of our properties. Our Green Teams also engage with our National Operations group to identify best practices for sustainability and work to integrate these ideas into strategic planning and management processes. My unique role, where I oversee energy initiatives, demonstrates CF s progressive leadership and commitment to reducing energy and greenhouse gas emissions. Ringo Ng Embedded Energy Manager National Operations

10 10 CF S NATIONAL 2016 CONSUMPTION + INTENSITY Office and retail properties use significant amounts of energy (still largely generated from fossil fuels) to heat, cool, ventilate and power buildings. Energy conservation is particularly important because it helps reduce our impact on the environment, while reducing costs for our clients. In order to manage this aspect effectively, we have outlined our energy management objectives through the GAW program: ekwh (millions) % 342 OFFICE % OFFICE 3.3% OFFICE 3.9% OFFICE 30 ekwh/sq ft RBC CENTRE, TORONTO Ensure we operate and maintain existing systems in the most energy-efficient manner Improve our analysis of building energy performance data in near-real time Provide a national platform to aggregate all performance data to streamline monitoring and regulatory reporting requirements GAW also outlines a 2.5% energy reduction target for each year, with our total consumption seeing a 3.9% reduction in energy consumption compared to 2015, exceeding our target. These results are achieved with the support of third-party energy audits, which are completed at the properties every three years, and additional incentives to reduce energy consumption. Target Performance Target Met Baseline Year Intensity Marker 142 ekwh: Equivalent kilowatt hours, the standard unit of energy consumption used to aggregate and compare different energy sources (e.g., natural gas to electricity) Through our conservation efforts, between 2009 and 2016, we have reduced our energy consumption by almost a quarter, at an average rate of 3.3% per year. We have also established a long-term energy intensity target of 20 ekwh/sqft for our office portfolio RETAIL % 16% RETAIL 2.5% 4% % 3.3% 2014 RETAIL requiring a reduction of our average energy use per square foot by an additional 17%. We expect client and industry engagement will continue to play a crucial role as we promote simple changes that can reduce energy consumption. RETAIL 2.5% 3.9% 2015 CASE STUDY: SMART BUILDINGS TECHNOLOGY In 2016, we launched the Energy Smart Operations program, utilizing smart buildings technology, to enable real-time energy management, monitoring, and reporting as well as providing fault detection, energy visualization and analytics. The program is in use at 725 Granville and is currently being deployed at RBC Centre, Toronto- Dominion Centre, and 20 Queen Street West.

11 11 CASE STUDY: SIMCOE PLACE, TORONTO Simcoe Place is a leader in energy efficiency, now ranking in the 98th percentile among the most energy-efficient buildings in Canada. In 2016, Simcoe Place upgraded its LEED Gold certification to Platinum, validating the property s multi-year energy management leadership. Since 2010, its Integrated Performance Team, composed of CF employees, key vendors and consultants, has worked to reduce the environmental footprint of the property. The property conducts ongoing commissioning and periodic energy audits to continually uncover and address improvement opportunities. In 2016, Simcoe Place had five energy-efficiency projects underway.

12 12 GREENHOUSE GAS (GHG) EMISSIONS In December 2015, 195 countries negotiated the Paris Agreement on GHG emissions mitigation, adaptation and finance. Within this broader global context, CF recognizes that climate change and subsequent new regulations and carbon pricing mechanisms could impact our day-to-day operations. GHG emissions are managed by the GAW program under both the energy and environmental protection pillars and through corporate policy in place since Emissions reductions are driven through operational practices and technology upgrades including energy audits, retro-commissioning and piloting new technologies such as geothermal exchange systems. CF s Climate Change and Greenhouse Gas Corporate Statement of Principles stipulates that we: Exceed regulatory requirements related to climate change Track and disclose emissions generated from building operations Prohibit CFC and HCFC refrigerants use in cooling equipment Incorporate environmental design into new construction activities Investigate opportunities for innovation These are select initiatives we have implemented: CORPORATE INITIATIVES POLICY OPERATIONAL PRACTICE Climate Change and GHG Corporate Statements of Principles Energy, Water & Waste Reduction Policy Green at Work Green Teams Data management system GHG data management State of the art equipment and building automation systems External review of GHG data PROPERTY INITIATIVES POLICY OPERATIONAL PRACTICE LED lighting retrofits Smart building operations system Alternative energy implementation (e.g., geothermal system, deep lake water cooling, cogeneration) TECHNOLOGY TECHNOLOGY

13 13 GREENHOUSE GAS (GHG) EMISSIONS Our annual energy reduction target of 2.5% contributes to emissions reductions. In 2016, we emitted 110,500 tonnes of GHGs a 2% decrease from the previous year and a 43% decrease from our 2008 baseline. Despite our portfolio expanding by 3.3 million square feet since 2008, we have managed to reduce our carbon footprint by 80,000 tonnes this shows we can decouple economic growth from emissions. Our analysis shows that 50,000 tonnes of those reductions can be attributed to operational efficiencies and upgrades. CF also purchased renewable energy certificates to offset 4,600 tonnes of emissions. Our biggest challenge to reducing our emissions remains the availability of cost-effective technologies to minimize energy use or replace fossil fuel use with renewable energy. tco2e CF S NATIONAL INTENSITY 192, , ,500 Intensity Marker 121,300 71,000 OFFICE RETAIL % -43% 60,700 52,700 OFFICE RETAIL ,400 48, * Percent changes are compared to 2008 baseline data was recalculated for this report. A market-based approach was used per the Greenhouse Gas Protocol. 4.4 OFFICE RETAIL tco2e/1000 sq ft DATA CENTRES CF S NATIONAL 2016 (tco 2e) LANDFILL 31,290 REFRIGERANTS 1,112 NATURAL GAS 15,570 SCOPE 3 SCOPE 3 CHILLED 879 * Greenhouse gas emissions disclosures represent all Canadian properties with GHG data available, including certain properties not on the GAW program. BACK-UP GENERATOR FUELS 262 VEHICLE FUELS 166 SCOPE 1 STEAM 17,642 GRID ELECTRICITY 43,309 SCOPE 2 Scope 1 emissions: Direct greenhouse gas emissions from activities at company-owned properties, including combustion of natural gas in boilers and furnaces, the use of gasoline in generators and vehicles and refrigerant losses Scope 2 emissions: Indirect greenhouse gas emissions from the generation of electricity, steam and chilled water purchased by the company Scope 3 emissions: Greenhouse gas emissions from company operations, but from sources not owned or controlled by the company, e.g., landfill waste, water and waste transportation and data centres

14 14 CF S NATIONAL 2016 TOTAL PORTFOLIO MATERIAL BREAKDOWN (TONNES) Solid waste diversion is a key environmental and operational performance indicator as employees, guests, shoppers and clients expect waste to be recovered and removed responsibly at our properties. Waste targets and waste management initiatives are established through GAW, which provides recycling amenities at all properties and education programs for our clients and shoppers. Waste data is collected through haulage reports and invoices, and contractors are required to submit reports that track waste data for specific construction projects. GAW outlines the following waste targets: AAA Office: 90% diversion Non-AAA Office: 75% diversion Retail: 70% diversion In 2016, approximately 68,000 tonnes of waste were reported across the portfolio, with 52,000 tonnes, the equivalent to 3,100 truckloads diverted. CF was successful in surpassing the 70% diversion target for retail properties with a rate of 75%. This also marks an increase in diversion from last year s rate of 70%. 0.02% 0.4% 0.4% 2.8% Construction and demolition recycling Organic recycling Other recycling Waste to energy Used material donations 8.2% 22.6% 13.9% While CF was not successful in meeting its 75% target for non-aaa offices and 90% diversion target for AAA offices, the 2016 performance of most buildings improved significantly: non-aaa offices had a diversion rate of 65%, a significant improvement from 60% in 2015; while AAA offices experienced a rate of 86%, an improvement over last year s 83% rate. 30.3% 21.4% Electronic waste Hazardous waste Landfill waste Cans, glass, mixed plastics, paper and cardboard We have also achieved an organization-wide diversion rate of 77.4%, a function of hard work and progressive thinking from our property teams. In the last four years, 96% of properties have conducted a waste audit, identifying areas for further improvement. NON-AAA OFFICES HAD A DIVERSION RATE OF IN % A SIGNIFICANT IMPROVEMENT FROM 60% IN 2015 AAA OFFICES HAD A DIVERSION RATE OF IN % AN IMPROVEMENT FROM 83% IN 2015 CF HAD A 77.4% PORTFOLIO-WIDE DIVERSION RATE

15 CF S NATIONAL 2016 DIVERSION + INTENSITY 15 waste diversion (%) 70% % % % kg/sq ft Target Performance Target Met 65% 70% 82% 61% 68% 90% 75% 70% 83% 60% 70% 86% 65% 75% Intensity Marker AAA Office Non-AAA Office Retail CASE STUDY: EARTH WEEK To celebrate Earth Week, many CF properties organized events to educate the public about waste diversion and the closed-loop economy. CF Lime Ridge partnered with Revolution Recycling to offer shoppers a convenient way to safely dispose of electronic waste at no charge. CF Polo Park hosted a unique fashion event: the Trashion exhibit, featuring eight couture-style fashion pieces, all made entirely from waste and recyclable materials. CF Polo Park Trashion Exhibit

16 16 The World Economic Forum believes the world water crisis is a critical issue. Canada has been affected by forest fires and lower agriculture yields due to lower precipitation and hotter temperatures. CF s GAW program sets our water consumption targets, which drives conservation strategies, including a range of capital upgrades and new technologies. The cost-benefit of these initiatives are usually viewed favourably by our clients. GAW outlines a 2% year-over-year reduction target to drive our water performance. Between 2015 and 2016, CF realized a 3.1% reduction in water consumption, surpassing our target by over 50%, and 85% of our properties have completed a water audit to identify opportunities for further water conservation. Between 2008 and 2015, we reduced water consumption on average by 4.2% per year. In total, CF consumed 2 million cubic meters of water in 2016 (the equivalent of 14.7 million average-sized bath tubs). In office properties, approximately one-quarter of all water use can be attributed to cooling tower evaporation; therefore, we strive to implement more water-efficient cooling technologies as buildings are retrofitted. However, water is still a relatively low-cost utility, making it challenging to rationalize capital upgrades. m 3 (1000S) Target 2,368 2,055 2,003 1,884 Performance Target Met Baseline Year Intensity Marker CF S NATIONAL 2016 CONSUMPTION + INTENSITY 28% 1, OFFICE RETAIL % 28% % 1,338 1,024 OFFICE RETAIL % 2% % 1,070 OFFICE 985 RETAIL % 0.4% % 1,029 OFFICE 974 RETAIL % 3.1% m 3 /sq ft

17 17 CASE STUDY: CF PACIFIC CENTRE PROPERTIES, VANCOUVER Several properties located within CF Pacific Centre in Vancouver have significantly reduced their water consumption: Canaccord Genuity Place, a LEED Gold-certified property, installed low-flow flush meters and aerators, and engaged with tenants to remove inefficient equipment At TD Tower, a LEED Silver-certified building, the installation of new water coils dramatically improved the efficiency of the chiller equipment TD Tower replaced three heat pump units which saved approximately 10 million litres of water 725 GRANVILLE ATRIUM, VANCOUVER

18 18 Effective stewardship of health & safety is a priority for most organizations because of the inherent operational risks. While we work to ensure high levels of compliance internally, this is also an area where we see that we can positively influence (through our own behaviours and commitment) our industry, our clients through site audits, our trades, and our suppliers. Our focus in the coming year is on driving a culture shift from a mindset of compliance to a proactive and progressive culture of safety. This is an approach aligned with and valued by our clients, their customers and our Board. Another priority lies in the development of a consolidated protocol for collecting related health and safety metrics, such as absenteeism and lost time, which currently are captured in other ways, but not undergoing any analytical rigor. This effort is essential to the success of our efforts to change culture. Our comprehensive environmental, health & safety manual defines our policy, procedures and practices. It incorporates elements of OHSAS 18001, which builds on the internationally-leading ISO 9001 and ISO 14001standards. Health & safety issues that are addressed include: Hazardous material management Contractor safety Safe equipment operation Harassment, discrimination and workplace violence Worker rights and work refusal Employee training, protection and orientation Hazard recognition and control Accident prevention, reporting and investigation In the way of accountability, CF employs a third-party health & safety consultancy for independent, annual onsite assessments and an online compliance management tool. Dayto-day requirements are addressed through the compliance tool and all related activities and remediations are evaluated through the annual audit program. Additionally, CF undertakes a comprehensive health, fire safety and emergency management audit program that ensures our OH&S program aligns with operational risk management efforts. This internal audit program also identifies property best-practices where exemplary efforts are shared throughout the company. All third-party and internal reports are reviewed by each property, the respective portfolio managers and our head office team. Our properties target full compliance through the internal and external evaluation programs, with actual compliance rates continually above 90%. CF s National Security Operations team s Occupational & Life Safety group provides guidance and mentoring, conducts spot audits, evaluates and shares exemplary practices for universal acceptability, and conducts training that supports the related learning needs of both new and current employees. CASE STUDY: CF TORONTO EATON CENTRE, TORONTO In 2016, CF enhanced our approach to addressing mental health. We worked with the Centre for Addiction and Mental Health (CAMH) to provide training for front line staff at CF Toronto Eaton Centre, improving their ability to communicate with people in crisis.

19 19 In 2016, GRESB launched its Health & Well-being module that evaluates and benchmarks the leadership and actions of real estate companies related to health and well-being in buildings. Of the 174 entities that responded, 51% reported that they had a health and well-being policy for clients and occupants and 63% reported that they monitor health and well-being-related outcomes. Increasingly, the link between poor air quality and asthma, allergies and upper respiratory diseases is indisputable, making indoor air quality an important consideration for clients. Research has revealed that low- VOC, high ventilation office space produced up to a 101% increase in cognitive function. Our GAW program manages air quality under the environmental protection pillar, with properties establishing indoor air quality (IAQ) audits and plans. An audit conducts indoor and outdoor air testing and reviews schematics and specifications to determine whether the space meets minimum ventilation requirements. Audits also identify materials and substances that pollute the indoor air, and in 2016, it becomes mandatory for CF properties to develop an indoor air quality management plan. We congratulate TD Bank on obtaining the world s first WELL Gold Certification under v1 of the WELL Building Standard (WELL). As part of a 25,000 square foot renovation of the 23rd floor of the TD Bank Tower, more than 60 WELL features were integrated into the design. The process took over 18 months and as the landlord, CF is proud to support the efforts of our client toward achieving their goals. CASE STUDY: TORONTO-DOMINION CENTRE Toronto-Dominion Centre (TDC), one of the first and largest building complexes in the world to achieve LEED EBOM Platinum certification, is making significant inroads in the field of occupant wellness. As a part of its certification, TDC has adopted the industry s most progressive indoor air quality practices: Implementation of an IAQ program Measures to reduce exposure of building occupants to potentially hazardous particulate contaminants Prevention of indoor air quality problems resulting from construction or renovation Many of TDC s programs are aligned with the WELL Building Certification and its focus on enhancing health and well-being within built environments. HEALTH & WELLNESS CONCEPT AIR TD CENTRE EXAMPLES Low VOC procurement standards paint, fixtures and furniture Green cleaning protocols and equipment Water quality testing and maintenance practices NOURISHMENT AIR FITNESS COMFORT MIND Dietician lunch n learns Healthy eating calendar with retail tenants LED retrofit improves light quality in tenant spaces Large windows with adequate shading Fitness classes Yoga classes Improved temperature control for occupants Exterior noise intrusion management Original Canadian art in common spaces Occupant education on stress management and sleep quality Example of a Toronto-Dominion Centre tenant wellness program poster

20 20 Sustainable sourcing of services and materials brings positive benefits to the economy, reducing the environmental impact of the supply chain and promoting responsible business practices and fair labour principles. Responsible procurement is a GAW pillar its objective is to become embedded within the broader corporate procurement policy and procedures. To monitor our contractors, CF employs a third-party prequalification program for all contractors from over 100 trades, to assess their policies and procedures, training and insurance compliance. In 2017, CF will begin to make procurement procedures electronic. By doing so, we will integrate sustainability considerations into procurement across our operations and measure adoption of these principles. Our experience has shown that implementing sustainable procurement on a wide scale is challenging due to lack of information, differing levels of supplier engagement and complexity of supply chains. CASE STUDY: DELL BUYBACK PROGRAM For 10 years, CF has integrated the responsible disposal of laptops into procurement practices. The DELL Buyback program aligns with CF s governance policy on electronic waste management by integrating the cost of electronic disposal into the purchase price of the computer thereby ensuring the asset is disposed of responsibly. CF CARREFOUR LAVAL, MONTREAL

21 21 As responsible developers, we must ensure that important sustainability aspects are systematically identified and considered in all development activities. Incorporation of sustainability best practices into all aspects of designing, building and operating our properties relies upon committed people: sustainability experts, architects and consultants; plus the engineering firms and contractors required to demonstrate outstanding health & safety records, and minimize use of energy, water and non-renewable resources during construction. Our aim is to improve and meet the needs of communities in which we operate and as a result, our development and redevelopment activities include community consultation. We also design for the future. We recognize that Canadians will rely more on electric vehicles for transportation and as a result, we currently have 41 charging stations across our portfolio and we incorporate them into new developments. Nineteen charging stations, for example, have been installed at our recently opened Calgary City Centre. Continued education of investor and client groups remains key to addressing perceptions of steep capital investment in sustainable materials or retrofits, while promoting greater familiarity with new technologies and materials. CASE STUDY: CALGARY CITY CENTRE In June 2016, CF celebrated the official opening of Calgary City Centre, a 36-storey 853,000 square foot LEED Platinum certified office complex which exemplifies sustainability in design and development: The property optimizes energy and water consumption, indoor air quality and occupant well-being through the latest technologies Low-emission building materials used in construction A low-maintenance green roof helps cool the building and prevents storm water runoff

22 22 CASE STUDY: CF SHOPS AT DON MILLS, TORONTO In 2016, CF announced a $21 million redevelopment investment in CF Shops at Don Mills. The revitalization is a reflection of CF s relentless commitment to providing its consumers with a best-in-class retail experience. The redevelopment will also engage the community by creating an inviting and accessible space where everyone can spend the day and come together year-round. The project will feature pedestrian enhancements, art installations, improved way-finding signage and elevated entertainment zones. Construction is expected to be completed by Summer 2017.

23 23 Green building certifications are a key priority for CF, serving as third-party verification of environmental performance, and a recognizable proof of alignment with our clients own sustainability goals and principles. Analysis has shown that certified buildings exhibit higher occupancy rates and lower lease turnover. Our remaining AAA office properties are registered for certification and upon completion, 100% of all premium offices will be LEED certified. In our portfolio, 98% of all managed Canadian properties are either BOMA BEST or LEED-certified. CF targets for building certification: CERTIFICATION ASSET CLASS TARGET STATUS LEED AAA offices 100% 92% BOMA BEST or LEED Regular office and retail properties 100% 100% CF S 2016 ACHIEVEMENTS DELOITTE TOWER MONTREAL YONGE CORPORATE CENTRE TORONTO SIMCOE PLACE TORONTO TORONTO-DOMINION CENTRE TORONTO CALGARY CITY CENTRE CALGARY LEED CS Platinum certification in May 2016 First office tower built in Montreal in 20 years; first in the city to be LEED CS Platinum certified Energy-efficient design features include daylight harvesting and glazed dual pane insulated glass resulting in energy savings of 35-40% and lower operating expenses Premium air filtration, raised flooring and enhanced climate control improve comfort, ventilation and health LEED EB: O&M Gold certification in December 2015 Diverted 94% of building waste from landfill Reduced normalized energy consumption to under 20 ekwh/sf/year Features include up-to-date boiler burners, variable frequency drives and building automation programming Onsite bicycle racks and Zip Car services LEED EB: O&M Platinum certification in May 2016 Lighting controls, variable frequency drives, air conditioning and transformer optimization help save on average four million kwh and $555,000 in operating costs per year, equivalent to about 60 cents per square foot Energy Star score of 98 places Simcoe Place in the top 2% of efficient buildings in Canada LEED EB: O&M Platinum certification in September 2015 Significant $200 million multiyear revitalization investment 81% waste diversion rate Comprehensive Energy 201 Occupant Engagement Program that reaches 21,000 occupants Thermography scanning every two years Nano-Climate smart irrigation system for plants LEED CS Platinum certification in October 2016 Phase 2 is currently registered for LEED certification Designed to use 25% to 45% less energy relative to the Model National Energy Code for Buildings Low-maintenance green surface covering 50% of roof areas Developed with low emission building materials

24 24 LEED REGISTERED BUILDINGS The following table presents our properties registered for LEED certification: REGION Ontario Ontario Ontario Ontario British Columbia British Columbia PROPERTY 16 York Street 160 Front Street CF Sherway Gardens expansion One Dundas Tower Pender Place 725 Granville Quebec 750 Peel Street Alberta Calgary City Centre Phase 2 LEED CERTIFIED BUILDINGS The following are CF s LEED certifications from 2011 to 2016: REGION LEVEL PROPERTY Quebec EB: O&M Platinum Deloitte Tower Ontario EB: O&M Platinum Simcoe Place Ontario EB: O&M Platinum TDC 95 Wellington Ontario EB: O&M Platinum TDC Ernst & Young Tower Ontario EB: O&M Platinum TDC North Tower Ontario EB: O&M Platinum TDC South Tower Ontario EB: O&M Platinum TDC TD Bank Tower Ontario EB: O&M Platinum TDC West Tower Ontario EB: O&M Gold 250 Yonge St. Ontario EB: O&M Gold Yonge Corporate Centre 4100 Ontario EB: O&M Gold Yonge Corporate Centre 4110 Ontario EB: O&M Gold Yonge Corporate Centre 4120 Ontario EB: O&M Gold CF Tower (20 Queen St. West) Ontario NC Gold RBC Centre Ontario CS Certified Maple Leaf Square Alberta CS Platinum* Calgary City Centre Phase 1 Alberta EB: O&M Gold Shell Centre British Columbia EB: O&M Gold 701 West Georgia St. British Columbia EB: O&M Gold 777 Dunsmuir St. British Columbia EB: O&M Gold Canaccord Genuity Place British Columbia EB: O&M Gold Granville Square British Columbia EB: O&M Gold HSBC Building British Columbia EB: O&M Gold PWC Place British Columbia EB: O&M Gold Shell Centre British Columbia EB: O&M Gold Waterfront Centre British Columbia EB: O&M Silver TD Tower British Columbia CI Certified CF Richmond Centre Dining Terrace * Outside of reporting period EB:O&M Leadership in Energy and Environmental Design for Existing Buildings: Operations & Maintenance CS Leadership in Energy and Environmental Design for Core and Shell BOMA BEST CERTIFICATIONS The following table presents the BOMA BEST certifications from : REGION LEVEL PROPERTY New Brunswick Silver CF Champlain Quebec Silver CF Fairview Pointe Claire Quebec Silver CF Promenades St-Bruno Quebec Silver Windsor Station Quebec Bronze CF Galeries d Anjou Quebec Bronze CF Carrefour Laval Ontario Platinum TDC TD Bank Tower Ontario Platinum TDC TD North Tower Ontario Platinum TDC TD West Tower Ontario Gold TDC 95 Wellington Ontario Gold TDC Ernst & Young Tower Ontario Gold TDC South Tower Ontario Gold 1 Dundas Tower Ontario Gold 250 Yonge Street Ontario Gold CF Tower (20 Queen Street West) Ontario Gold CF Fairview Mall Ontario Gold CF Lime Ridge Ontario Gold CF Markville Ontario Gold CF Shops at Don Mills Ontario Gold CF Toronto Eaton Centre Ontario Gold Yonge Corporate Centre 4100 Ontario Gold Yonge Corporate Centre 4110 Ontario Gold Yonge Corporate Centre 4120 Ontario Silver CF Fairview Park Ontario Silver CF Masonville Place Ontario Bronze CF Promenade Ontario Certified CF Rideau Centre Manitoba Gold CF Polo Park Alberta Gold CF Chinook Centre Alberta Gold CF Market Mall Alberta Certified 635 8th Avenue Alberta Certified Encor Place British Columbia Gold 701 West Georgia British Columbia Gold 777 Dunsmuir St. British Columbia Gold Canaccord Genuity Place British Columbia Gold Granville Square British Columbia Gold HSBC Building British Columbia Gold Pender Place British Columbia Gold PWC Place British Columbia Gold TD Tower British Columbia Gold Waterfront Centre British Columbia Silver CF Pacific Centre British Columbia Silver CF Richmond Centre British Columbia Silver The Station NC Leadership in Energy and Environmental Design for New Construction CI Leadership in Commercial Interiors

25 25 At CF we believe that our people are our competitive advantage and we make significant efforts to provide interesting work, while fostering a compelling employee culture. Empowering our people is especially significant when engaging a multi-generational workforce. Understanding employment expectations and how best we can meet those in an inclusive environment is a key component of delivering an optimal employee experience. Employee engagement is assessed through third-party surveys. Our most recent survey, which covered 100% of employees, had a response rate of 93% and identified productivity and manager effectiveness as areas to be addressed through specific action plans. CF s employee value proposition consists of five pillars: STRONG REPUTATION GREAT CULTURE INTERESTING WORK COMMITMENT TO BUILDING LEADERS TOTAL REWARDS Our training and development framework covers all employees and is routinely updated for all leaders, people leaders, and senior leaders: CF BUILDING LEADERS COACHING PROGRAM Leadership development program that provides development on their career path at CF. Every people leader commits to meeting with their employees (at minimum) quarterly and coach on the behaviours that have the greatest impact on business results. ONBOARDING PROGRAM Designed to provide an onboarding experience to new CF employees that is individualized. It aims to accelerate the learning curve and productivity in their role. TUITION REIMBURSEMENT PROGRAM CONTINUING PROFESSIONAL DEVELOPMENT TRAINING As a part of an employee s total rewards and benefits and upon the successful completion of the Tuition Reimbursement Application Form, CF will reimburse education up to $2,500 per year per employee. Reimbursement is available to all active, full-time or part-time employees (working 20 or more hours per week). CF has an extensive online Learning Hub which all employees have access to. The Hub offers a number of learning and development tools and resources, like online courses, registration for in-class courses and workshops, career resources and a virtual library. Creativity at CF is very much the result of our collaborative culture. We offer very challenging work and the opportunity to work in all parts of the organization. Years ago, having a strong balance sheet was a competitive advantage, whereas today, a strong culture and a great team are the ultimate competitive advantage. COMPLIANCE TRAINING Supports the provision of compliance training for the organization. All CF employees have access to the compliance training catalog through an online system. Norm Sabapathy Executive Vice President, People

26 26 CASE STUDY: ACHIEVERS 50 MOST ENGAGED WORKPLACES IN NORTH AMERICA This annual award recognizes top employers that display leadership and innovation in engaging their workplace via eight elements of employee engagement: communication, leadership, culture, rewards & recognition, professional & personal growth, accountability & performance, vision & values and corporate social responsibility. MULTICULTURAL DAY CFers believe that our diversity contributes to our friendly and flexible culture, advancing our adaptability through a variety of viewpoints, which in turn improves execution. On June 27, Canadian Multiculturalism Day, employees at various CF locations celebrated and showcased their diversity. < > NATIONAL CONFERENCE 2016

27 27 BUILDING COMMUNITIES < > Building Communities is CF s charitable program supporting employee volunteerism, where CF employees can request a corporate contribution of up to $5,000 for a charity based on personal volunteer hours. This year, CF contributed $179,000 to the program, surpassing our original goal of $175,000. Because of my volunteer hours as President of the Mississauga Association for Independent Living, CF provided us with a significant donation. I think that our Building Communities program has an excellent effect on morale; you feel that CF cares about what you do. Manisha Smith, Leasing Paralegal CASE STUDY: CALGARY DAY OF CARING CASE STUDY: HOCKEY HELPS THE HOMELESS Employees from CF s Calgary Office Properties portfolio participated in a day of volunteering in their community; buying and serving up breakfast for over 500 people at the Calgary Drop In Society, a downtown homeless shelter. In the afternoon, our group participated in a river and park cleanup along the Bow River pathway. Employees from Head Office and our Ontario Portfolio hit the ice for the third consecutive year of Hockey Helps the Homeless tournament in support of Eva s Initiative. Employees competed alongside former NHL and Olympic players, raising over $11,000 for the cause, while CF served as a corporate sponsor with a $50,000 donation. Our success rests on healthy and vibrant local communities, and volunteerism is a meaningful way to put our corporate values into action. Sandra J. Hardy Executive Vice President and General Counsel

28 28 CF s National Charitable Donations Committee governs and evaluates our corporate community investments and oversees corporate donations programs. The core theme of our 2016 National Charitable Donations program was empowering and inspiring youth in our communities; enabling them to go forth and make a positive impact in their communities and the lives of others. The 2016 program committed $500,000 to youth-based causes, with approximately 60,000 Canadian youth impacted by these donations. PROGRAM FOCUS FINANCIAL BREAKDOWN Education Health & Wellness Employment Youth Leadership FOCUS ORGANIZATION DONATION Education Employment Health & Wellness Youth Leadership Art s Umbrella, Vancouver Junior Achievement of Central Ontario, Toronto Living City Foundation, Toronto Kids Now, Toronto Merit Award Bursary Program, Toronto Foundation Quebec Jeunes, Quebec Youth Employment Services (YES), Toronto Eva s Initiative, Toronto Covenant House, Toronto Covenant House Vancouver Youth Impact Jeuness, Moncton Youth Central, Calgary Big Brother Big Sisters The Students Commission of Canada, Toronto $25,000 $25,000 $50,000 $25,000 $25,000 $50,000 $25,000 $50,000 $25,000 $50,000 $25,000 $50,000 $50,000 $25,000 In 2016, CF also announced the first corporate commitment of $600,000 to United Way Toronto and York Region s Youth Success Strategy, a bold new initiative dedicated to helping youth build the skills that can lead to lifelong employability.

29 29 CASE STUDY: Cadillac Fairview is proud to host two signature fundraising events each year, our 5K CF Run/Walk and CF Golf Classic. This year, CF Shops at Don Mills hosted the 12th annual 5K CF Run/ Walk on Sunday, April 24, 2016, drawing more than 600 participants for an active day in support of SickKids Hospital and the Pediatric Oncology Group of Ontario (POGO). The event raised more than $330,000 for our charity partners and is year two of a four-year, $1 million commitment to the two charities. In 2015, CF proudly pledged $1,000,000 to Women s College Hospital Foundation for a new, groundbreaking ambulatory care facility providing outstanding and innovative health care. With more than $650,000 raised thus far, CF will fulfill its commitment to Women s College Hospital Foundation in K CF RUN/WALK, CF SHOPS AT DON MILLS

30 30 WE PARTNERSHIP WE RETAIL STORE In 2016, CF proudly partnered with WE, a movement that brings young people together to achieve transformative outcomes for themselves and others. Our threeyear partnership has already begun supporting several youth empowerment initiatives, events and celebrations in CF retail properties across Canada. CF is donating retail space at CF Toronto Eaton Centre to WE as a full-time WE Store location. This marks the first time CF has donated a long-term lease to a charitable partner. The store features sustainable goods that promote social enterprise and youth empowerment. WE SCHOOLS WE STAND WITH WE WE Schools is a service-learning program delivered in more than 5,800 schools across Canada. CF will support these schools by providing space to students so they can reach out to their communities, showcase their action plans and amplify their message for local and global change. CF began the 2016 school year with a creative, cause-driven campaign called WE Stand with WE, whereby customers could take a digital pledge supporting social causes. CF will also award scholarships to 20 outstanding world-changers from the WE Schools program enabling them to attend ME to WE s Take Action Camp in the summer of By taking the WE Pledge, participants join a movement of caring and active people in the community and initiate conversation about causes young Canadians are most passionate about. Partnering with Cadillac Fairview provides a fantastic opportunity to amplify our national presence while strengthening our impact in local communities through exciting and innovative experiences available at CF shopping centres across the country. Marc Kielburger, co-founder, WE Together, we share a collective goal to encourage youth to take action and we are excited to support Cadillac Fairview s mission to empower youth in the community. Craig Kielburger, co-founder, WE For two years, CF has partnered with Autism Speaks Canada to present the Sensitive Santa program, specifically created for individuals with autism and their family members. The program, held at CF Toronto Eaton Centre and CF Sherway Gardens, is designed around shorter wait times, lighter crowds and a sensory-friendly environment where extended visits can take place with Santa and his helpers, who have received special training. All proceeds from the event were donated to Autism Speaks Canada, Covenant House and Women s College Hospital Foundation. < CASE STUDY: AUTISM SPEAKS CANADA PARTNERSHIP > In addition, CF Rideau Centre has partnered with QuickStart Early Intervention for Autism for three consecutive years to host a similar Sensory Santa program. We are thrilled to join forces with WE, to encourage youth to be agents of change in communities across Canada. Jason Anderson Senior Vice President, Marketing