EXCELLENCE. achieved all 43 points pursued

Transcription

1 EXCELLENCE achieved all 43 points pursued example of Oxford s environmental leadership & commitment Measuring & Reducing the Footprint of a Major Canadian Portfolio raised the bar for existing buildings CCIM / TREB Green Day Darryl Neate, Director, Sustainability June 24, 2009

2 Measuring & Reducing the Footprint of a Major Canadian Portfolio 1. Background & Context 2. Oxford s Scorecard & Target 2012 Commitment AGENDA 3. Beyond Measurement & Reduction Efforts

3 PART 1 Background & Context

4 Owner, Developer, Investor & Manager PROFILE Diversified Portfolio 50 Million Square Feet

5 Climate Change Corporate Scrutiny BIG TRENDS Environmental Consciousness Energy Security

6 MOTHER OF ALL RISKS

7 RISKS OPPORTUNITIES SUSTAINABILITY Energy / Carbon Prices Market Shift Green Building Regulations Unprecedented Transparency Reputation Competitive Advantage High Performing Buildings Cost Savings Tenant & Employee Satisfaction Long Term Asset Values

8 GREENHOUSE GAS INVENTORY TERMINOLOGY Statement of an organization s GHG sources and emissions. NOTE: Also commonly referred to as a Carbon Footprint

9 STANDARDS ISO GHG Protocol

10 ORGANIZATIONAL BOUNDARIES EQUITY SHARE OPERATIONAL CONTROL BOUNDARIES 1 GHG emissions according to ownership interest. Commercial Reality Liability & Risk Management Alignment - Financial Accounting Example - BP 100% of GHG emissions from managed properties. Completeness Alignment with Future Regulations Most Likely Industry Benchmark Example Royal Dutch Shell

11 OPERATIONAL BOUNDARIES BOUNDARIES 2 Source: GHG Protocol

12 GHG SOURCE Purchased Electricity GHG Activity Data GHG Emission Factor GHG Emissions GHG EMISSIONS Consumption (kwh) Drivers Capital investments Management practices Tenant behaviour Weather conditions Space usage Building age Varies by Province Drivers Provincial electricity grid Tonnes CO 2 e NOTE: Process is followed for all GHG sources within the organizational and operational boundaries

13 REPORTING CHALLENGE #1 PORTFOLIO CHANGES How to report on performance taking into account portfolio changes over time? SOLUTION Report consumption on an intensity basis (e.g. Electricity Usage / ft 2 or GHG Emissions / ft 2 )

14 REPORTING CHALLENGE #2 NORMALIZATION How to report on performance taking into account the impact of occupancy, weather & space usage? SOLUTION Report normalized numbers for these issues OR non-normalized numbers with notes

15 SUMMARY KEY QUESTIONS When evaluating sustainability performance metrics from different sources, need to consider: 1. What are the organizational boundaries? 2. What are the operational boundaries? 3. How are portfolio changes accounted for? 4. Are performance metrics normalized or not?

16 PART 2 Scorecard & Target 2012 Commitment

17 SUSTAINABILITY Oxford s Sustainability Program Launched in September 2008 Oxford knows that sustainability is fundamentally about good management respecting our stakeholders, the environment and the communities in which we do business. R. Michael Latimer President & CEO Oxford Properties

18 1. Leadership 2. Performance SUSTAINABILITY Guiding Principles 3. Innovation 4. Credibility 5. Risks & Opportunities 6. Stakeholder Engagement

19 Energy & Atmosphere SUSTAINABILITY Scorecard Water Efficiency Sustainable Sites Materials & Resources Indoor Environmental Quality

20 Organizational Boundaries Operational Control (Managed by Oxford) Scoped Out 1. Directly Metered Tenants 2. Indirect Investments 3. Industrial Properties Oxford Footprint Activities BOUNDARIES Operational Boundaries

21 Energy & Atmosphere Electricity Number of buildings Floor area of buildings 1 (ft 2 ) 32,524,665 30,679,544 30,422,206 31,011,997 Metered electricity consumption 2,3,4 (kwh) 939,501, ,838, ,403, ,137,336 ELECTRICITY Consumption Intensity (kwh/ ft 2 ) Reduction (2005/2008): 10.1% Reduction (2007/2008): 2.2% NOTES: 1. Number of buildings and floor area of buildings refers to buildings with actual, complete year data. 2. Vacancy across the portfolio decreased from 9.2% in 2005 to 3.3% in 2008 resulting in upward pressure on consumption. 3. Capacity upgrades at several data centre properties between 2005 and 2007 also resulted in upward pressure on consumption. Energy efficiency capital improvements, conservation, and enhanced management practices resulted in downward pressure on consumption.

22 Energy & Atmosphere Natural Gas Number of buildings Floor area of buildings 1 (ft 2 ) 26,732,959 25,446,199 26,453,707 27,785,928 NATURAL GAS Metered natural gas consumption 2,3,4 (GJ) 932, ,339 1,004,824 1,050,801 Consumption Intensity (GJ/ ft 2 ) Increase (2005/2008): 8.4% Reduction (2007/2008): 0.4% NOTES: 1. Number of buildings and floor area of buildings refers to buildings with actual, complete year data. 2. Vacancy across the portfolio decreased from 9.2% in 2005 to 3.3% in 2008 resulting in upward pressure on consumption. 3. The portfolio included a greater percentage of residential properties in 2007 compared to 2005 resulting in upward pressure on consumption. 4. Energy efficiency capital improvements, conservation, and enhanced management practices resulted in downward pressure on consumption.

23 Energy & Atmosphere Emissions Floor area of buildings 2 (ft 2 ) 39,823,213 35,831,380 32,567,146 31,450,018 Emissions 2,3,4,5,6,7,8 (tonnes CO 2 e) 479, , , ,464 Direct (Scope 1) Natural Gas, Other Fuels, Refrigerants, Fleet Vehicles Energy Indirect (Scope 2) Electricity, Steam 78, ,033 64, ,970 63, ,111 54, ,696 Emissions Intensity (tonnes CO 2 e/ft 2 ) EMISSIONS Reduction (2005/2008): 10.9% Reduction (2007/2008): 3.8% NOTES: 1. This indicator now aligns with Oxford s Target 2012 commitment a 20% reduction in direct (Scope 1) & energy indirect (Scope 2) greenhouse gas emissions, on a per square foot basis by 2012 (relative to a 2005 base year). 2. Floor area, consumption and emissions are prorated in accordance with the period held for new, acquired, and sold properties. 3. Actual and estimated direct (Scope 1) and energy indirect (Scope 2) emissions. 4. Vacancy across the portfolio decreased from 9.2% in 2005 to 3.3% in 2008 resulting in upward pressure on consumption and emissions. 5. The portfolio included several new properties in 2007 when compared to 2005 in provinces with higher electricity emission factors, resulting in upward pressure on emissions. 6. Capacity upgrades at several data centre properties between 2005 and 2007 resulted in upward pressure on electricity consumption and emissions. 7. Energy efficiency capital improvements, conservation, and enhanced management practices resulted in downward pressure on consumption. 8. New Environment Canada provincial electricity grid emission factors have been applied to 2006 & 2007 electricity consumption numbers (since previous numbers, as at December 31, 2007), resulting in slight adjustments to total emissions.

24 TARGET 2012 Oxford is committed to reducing greenhouse gas emissions from buildings we directly own and manage, on a per square foot basis, by 20% by the year Covers Direct (Scope 1) and Energy-Indirect (Scope 2) emissions relative to a 2005 base year.

25 Water Efficiency Number of buildings Floor area of buildings 1 (ft 2 ) 22,036,706 24,699,720 25,006,802 28,175,259 Metered water consumption 2,3,4 (m 3 ) 3,270,065 3,488,655 3,580,405 3,767,688 Consumption Intensity (m 3 / ft 2 ) Reduction (2005/2008) 9.9% Reduction (2007/2008) 6.6% WATER NOTES: 1. Number of buildings and floor area of buildings refers to buildings with actual, complete year data. 2. Vacancy across the portfolio decreased from 9.2% in 2005 to 3.3% in 2007 resulting in upward pressure on consumption. 3. The portfolio included a greater percentage of residential properties in 2007 & 2008 compared to 2005 resulting in upward pressure on consumption. 4. Water usage (cooling tower only) from two Quebec office properties was added in 2008 resulting in downward pressure on consumption intensity.

26 Sustainable Sites Total number Green Building Certifications & Awards 1 NOTES: 1. Includes certifications such as LEED, BOMA Go Green, BOMA Go Green Plus and environmental awards such as those awarded by BOMA, International Council of Shopping Centres, and Recycling Council of Ontario. AWARDS Improvement (2005/2008) 392% Improvement (2007/2008) 23%

27 Materials & Resources WASTE DIVERSION Number of buildings 1 N/A Waste & Resources 2,3,4 (tonnes) N/A 11,225 11,999 30,879 3,492 3,011 12,204 Waste N/A Resources (Recycled Materials) N/A 7,733 8,988 18,675 Waste Diversion Rate (%) N/A 68.9% 74.9% 60.5% Decrease (2006/2008) 12.2% Decrease (2007/2008) 19.3% NOTES: 1. Number of buildings refers to buildings with actual, 3rd party audited waste data. 2. Waste denotes the materials generated on-site which were sent to landfill. Resources (Recycled Materials) denotes materials generated on-site which were reused or recycled. 3. Percentage increase is listed to maintain consistency across all indicators. Also represents a simple diversion level increase of 8.4% (2006/2008) or 14.4% (2007/2008). 4. Reduced diversion rate in 2008 is due to the inclusion of a number of office and retail properties in markets with less access to recycling (properties listed in 2006 and 2007 were Ontario office properties only).

28 Indoor Environmental Quality GREEN CLEANING Total properties with Green Cleaning Programs Increase (2005/2008) 152% Increase (2007/2008) 16% NOTES: 1. Includes cleaning programs that use green cleaning products and/or practices. Beginning in 2008, Oxford requires all cleaning vendors use EcoLogo certified green cleaning products and green practices / equipment.

29 Oxford s approach to Sustainability OPERATIONS GUIDE Requirements, recommendations & best practices Aligns with 5 core LEED / scorecard categories

30 PART 3 Beyond Measurement & Reduction Efforts

31 Awareness e.g. Tenant Newsletters Information e.g. Carbon Footprint Green Buildings e.g. Target 2012, LEED NC/EB Alignment with Tenant Goals TENANTS LEED CI Construction Manuals Green Lease

32 SIGNATURE PROJECT SIGNATURE PROJECT OBJECTIVES Innovation, Performance, Internal Competition, Marketing & Communications WHAT IS IT? Highest profile sustainability project at each property Examples Lighting Retrofit LEED Certification New Technology

33 Differentiators Gold Standard Tenant Recognition International 3 rd Party Verification LEED

34 Oxford MetroCentre 225 King St West Toronto, Ontario achieved all 43 points pursued optimized energy performance achieved Energy Star 95 rating raised the bar for existing buildings 1 st multi-tenant LEED-EB in Canada LEED

35 Awareness e.g. OPEN Newsletter Information e.g. Oxford Scorecard Green Buildings e.g. Target 2012, LEED NC/EB Alignment with Employee Goals EMPLOYEES Leadership in Office Employee SI Council Community Engagement Volunteer Program Recognition SI Property & Star of the Year

36 Oxford as a Sustainability Leader Mitigating Risk, Capitalizing on Opportunities Alignment with Co-Investor Goals CO-INVESTORS Commitment to Green Buildings Cognizant of Stakeholder Requirements Ability to Deliver Stable Returns

37 One Less Tonne (Pembina Institute) One Million Acts of Green (CBC) RESIDENTIAL

38 Sustainability is about a long term market shift and commitment SUMMARY Sustainability is about good management - embracing changes and capitalizing on new opportunities FURTHER INFORMATION sustainableintelligence@oxfordproperties.com