2015 Sustainability Report KingSett Capital Investing For The Future

Transcription

1 2015 Sustainability Report KingSett Capital Investing For The Future

2 2015 Performance Highlights 1 ENVIRONMENTAL 7.5 % 10 % reduction in energy use intensity (ekwh/sq.ft.) 2013: : : % reduction in GHG emissions intensity (kgco 2 e/sq.ft.) 2013: : : % KingSett employees take public transit or walk to work reduction in water use intensity (L/sq.ft.) 2013: : : % increase in waste diversion (% waste recycled or composted) 2013: 51% 2014: 47% 2015: 52% 83 average Walk Score at our properties Green building certifications provide a credible means to recognize high-performance buildings. In 2015, 75% of our portfolio by asset value was LEED or BOMA BEST certified, with certifications being pursued at an additional 7% of the portfolio. 75% LEED or BOMA BEST certified 7% Certification pending 6% Development projects 12% Not eligible 75% 7% 6% 12% SOCIAL GOVERNANCE 83 % employees participated in KingSett community outreach events 52 % employees personally volunteered an average of 57 hours each for the year 66 % employees received professional or career training 1. Performance information represents like-for-like properties for 2013, 2014 and 2015, and excludes those that underwent significant construction and/or redevelopment in Percentages represent yearover-year performance improvements from 2014 to Due to data collection and tracking updates, 2013 and 2014 energy, water and waste performance figures have been restated. The full KingSett Capital 2015 Sustainability Report may be viewed at

3 Our Message We are pleased to present our second sustainability report and our first prepared using reporting principles from the GRI G4 Sustainability Reporting Guidelines. At KingSett, sustainability is a strategic imperative for both environmental and business reasons. We believe that investing in sustainability is critical to our long-term success because it creates economic, ethical, social and environmental value, and enhances our premium risk-weighted investment returns. Recognizing this, we continue to integrate sustainability into our business practices. In 2015, our priority was reducing energy and water use at our properties to conserve resources and to address risks inherent in rapidly rising utility costs. Last year, we also focused on working with our clients, partners, employees and tenants to further embed sustainability throughout our operations. Our 2015 progress includes: Portfolio energy and water savings of 7.5% and 10%, respectively, through conservation initiatives, retrofits and engagement programs 58% of properties set energy targets and 62% set water targets that align with our capital budgeting and approvals processes. These targets were developed in collaboration with our property managers to ensure we work towards common goals Achieving GRESB Green Star status Two new LEED Gold certifications, bringing our total to 12 certified properties with additional applications pending. Our portfolio is now 75% LEED or BOMA BEST certified by asset value Our sustainability program is focused on maintaining momentum and delivering on key business priorities. We continue to actively mitigating risks related to carbon, energy and water trends, such as the upcoming mandatory energy reporting in Ontario. This proactive management is helping us address emerging cost risks posed by carbon pricing and rising utility rates. By tracking our performance over the past three years, we are well prepared for more stringent measurement and verification requirements. We are grateful for the co-operation of our various stakeholders as we continue to work together on improving the sustainability performance of our real estate assets. Regards, In 2015, our priority was reducing energy and water use at our properties to conserve resources and to address risks inherent in rapidly rising utility costs. Jon Love, Managing Partner KingSett Capital / 2015 Sustainability Report 1

4 2015 Scorecard Summary Distance to Target ENVIRONMENTAL (% of properties) 51% Achieved* Energy target in place 2018 Target: 100% Completed retro-commissioning 2018 Target: 40% Water target in place 2018 Target: 100% Completed water audit 2018 Target: 75% Waste target in place Target: 70% Completed indoor air quality audit 2018 Target: 50% SOCIAL / GOVERNANCE (% of properties or employees) 75% Achieved* Community engagement programs 2018 Target: 75% Administered tenant surveys Target: 70% Employees trained 2018 Target: 100% * To 2018 Target 1. Performance Highlights and 2015 Scorecard reflect data provided to KingSett from our property managers, as verified by GreenCheck. We believe this information fairly represents our sustainability results for Outliers resulting from major development projects have been excluded. 2. Target based on non-residential properties. Commitment to Our Sustainability Vision ANNA KENNEDY / Chief Operating Officer & Chief Financial Officer, KingSett Integrating environmental, social and governance (ESG) filters into our decision making and investment analysis has had a tangible, positive effect on KingSett. We believe that improved environmental performance will carry less risk, that employees will be better engaged and that proactive corporate governance ensures that we are safeguarding investor assets and mitigating risk. COLIN BARYLIUK / Managing Director, Investments, KingSett Conducting energy audits as part of our due diligence process enables us to explore potential value-creation opportunities as well as better understand capital expenditure requirements. 2 KingSett Capital / 2015 Sustainability Report

5 Sustainability Leading by Example Clean Energy Since 2007, KingSett s Toronto office has purchased 1,760 MWh of Renewable Energy Certificates (RECs) Employee Commuting Survey 80% of employees take public transit or walk to work GRESB Green Star status for our portfolio KingSett was the Presenting Sponsor of the 2015 Canada Green Building Council Greater Toronto Chapter Gala and Awards Paper Reduction Initiative Reduced paper consumption by 11% $17,300 raised for United Way Toronto and York Region by KingSett Partners and employees The Honourable Glen Murray Ontario Minister of Environment and Climate Change TOP PERFORMER STATUS OF OUR OFFICE IN A TORONTO DOMINION CENTRE ENERGY AUDIT 14% LESS ENERGY USED THAN THE BUILDING AVERAGE UNPLUG FOR THE WEEKEND Energy Campaign laptops chargers Thanksgiving Food Drive Employees generously collected 45 bags of groceries p l e a s e f o r t h e w e e k e n d computers monitors 2015 LEED CI KingSett Sustainability Excellence Awards (Commercial Interiors) CERTIFICATION of our Toronto office New recycling and waste management signage installed throughout our offices WIN A $150 PRIZE Commuting Challenge for Earth Day On April 22 nd, leave the car at home! You ll be reducing your carbon footprint and you ll have the chance to win $150 towards the cost of public transportation for the month of May! Snap a selfie (landscape) of yourself green commuting into work and send it to Jason Love before 10am. Your selfie enters you into the contest for the raffle draw. Photos will be posted on Connect for the day and the raffle will be held that afternoon LET S CELEBRATE EARTH DAY BY COMMUTING TO WORK IN A GREEN WAY! KingSett Capital / 2015 Sustainability Report 3

6 Case Studies Cornwall Centre / Regina, SK Identifying and Implementing Conservation Measures at a Retail Property 5% energy 8% GHG emissions 6 months simple payback on retro-commissioning cost Cornwall Centre in Regina completed a retro-commissioning investigation to ensure that building equipment and systems were operating properly. The investigation revealed several operational strategies, schedule changes and repairs to improve both energy and water performance. After addressing some issues immediately, the team created an ongoing retro-commissioning plan to seize future efficiency opportunities. Energy cost savings are expected to pay for the retro-commissioning investigation in six months. In addition, the Cornwall Centre property team is achieving significant water savings through enhanced cooling tower management and repair. They also retrofitted common area and parkade lighting with high-efficiency LED fixtures, which are expected to pay back in operating cost savings in four to five years. The Lex Vancouver, BC Grid 5 Calgary, AB Calgary Place Calgary, AB Altius Centre Calgary, AB Midtown Plaza Saskatoon, SK Cornwall Centre Regina, SK Cherryhill London, ON Burlington Mall Burlington, ON Silver Spear Mississauga, ON Sheppard Centre Aura Retail Silver Spear / Mississauga, ON Saving Energy and Water at a Multi-Residential Property Improves Net Operating Income 6% energy 15% water $22,000 annual water costs Silver Spear in Mississauga replaced existing lighting fixtures with high-efficiency LED lights in common areas. The new fixtures reduce energy use by 6% and associated energy costs. Similarly, rising water costs posed another opportunity to conserve. Silver Spear installed over 150 3L toilets to replace the original fixtures. Silver Spear estimates the replacement toilets will be paid for in under two years, saving $22,000 annually based on current water prices. The new toilets will reduce water use by 15%. 4 KingSett Capital / 2015 Sustainability Report

7 130 Bloor Street West / Operating an Energy-Efficient Office Property 16% energy $32,000 annual energy costs 3 year simple payback 79 Energy Star Score The property team at 130 Bloor Street West in Toronto implemented HVAC system energy conservation measures, reducing energy use by 16% and saving nearly $32,000 in annual energy costs. Conservation measures implemented since 2014 have raised the building s Energy Star Score to 79. KingSett is targeting LEED Gold in High-Efficiency Lighting KingSett s sustainability policy calls for the replacement of energy-intensive T12 lighting at our properties with high-effi ciency fi xtures Results 15 properties underwent a high-efficiency lighting retrofit (11 with LED lighting) 1,068,000 kwh energy savings 737 tco 2 e GHG savings, equivalent to taking 155 cars off the road for one year $207,000 annual energy cost savings 1235 Bay St Bay St. 700 Bay St. 130 Bloor St. 101 Bloor St. Brookdale Pickering, ON 66 Slater Bayshore Shopping Centre Ottawa, ON Ottawa, ON Kanata Lakes Ottawa, ON Terrarium Montreal, QC Centre Terrarium / Montreal, QC Focused Monitoring with Smart Metering at a Retail Property 20% energy $11,500 annual energy costs Centre Terrarium in Montreal focused on implementing energy conservation measures. The property management team added Intelligent Smart Metering (ISM) to the building s energy systems that monitors consumption and nightly equipment shut-down. The ISM helps operators ensure that HVAC equipment and lighting are operating as planned and to quickly address inefficiencies, resulting in 20% energy savings. Water-Efficient Fixtures Installing water-effi cient washroom and kitchen fi xtures helps save water and protect against rapidly rising water costs Results 4 water efficiency projects 16,000 m 3 water savings, equivalent to 6 Olympic swimming pools $32,000 annual water cost savings KingSett Capital / 2015 Sustainability Report 5

8 Awards The KingSett Sustainability Excellence Awards (K-SEA) were launched in 2014 to reward our property managers for their significant contributions to our sustainability program and objectives. We thank them all for their participation. CHERRYHILL / LONDON, ON Excellence in Energy Reduction (Residential Asset Class) MIDTOWN PLAZA / SASKATOON, SK Excellence in Energy Reduction (Retail Asset Class) 1255 BAY STREET / TORONTO, ON Excellence in Energy Reduction (Office Asset Class) Excellence in Water Reduction (Office Asset Class) SILVER SPEAR / MISSISSAUGA, ON Excellence in Water Reduction (Residential Asset Class) ALTIUS CENTRE / CALGARY, AB Excellence in Waste Diversion (Office Asset Class) SHEPPARD CENTRE / TORONTO, ON Excellence in Waste Diversion (Retail Asset Class) BURLINGTON MALL / BURLINGTON, ON Innovation in Sustainability (Retail Asset Class) Looking Towards the Future Going forward, we will ensure that sustainability is deeply ingrained into the way we do business. We are focused on progress and ensuring changes are maintained for the continued success of our program. We will continue to monitor our performance and progress towards our 2018 targets, particularly in the areas of energy, water and waste. And we will seek to sustain the integration of our program into all facets of our business, maintain awareness of industry trends and undertake initiatives that best reflect our corporate strategy. For more information about sustainability at KingSett, please contact: Jeanne Medland, Director, Sustainability, LEED AP / jmedland@kingsettcapital.com 6 KingSett Capital / 2015 Sustainability Report