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
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
PART 1 Background & Context
Owner, Developer, Investor & Manager PROFILE Diversified Portfolio 50 Million Square Feet
Climate Change Corporate Scrutiny BIG TRENDS Environmental Consciousness Energy Security
MOTHER OF ALL RISKS
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
GREENHOUSE GAS INVENTORY TERMINOLOGY Statement of an organization s GHG sources and emissions. NOTE: Also commonly referred to as a Carbon Footprint
STANDARDS ISO 14064 GHG Protocol
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
OPERATIONAL BOUNDARIES BOUNDARIES 2 Source: GHG Protocol
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
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 )
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
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?
PART 2 Scorecard & Target 2012 Commitment
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
1. Leadership 2. Performance SUSTAINABILITY Guiding Principles 3. Innovation 4. Credibility 5. Risks & Opportunities 6. Stakeholder Engagement
Energy & Atmosphere SUSTAINABILITY Scorecard Water Efficiency Sustainable Sites Materials & Resources Indoor Environmental Quality
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
Energy & Atmosphere Electricity 2005 2006 2007 2008 Number of buildings 1 74 75 76 77 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) 939,501,820 846,838,684 807,403,154 805,137,336 ELECTRICITY Consumption Intensity (kwh/ ft 2 ) 28.89 27.60 26.54 25.96 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.
Energy & Atmosphere Natural Gas 2005 2006 2007 2008 Number of buildings 1 55 58 60 62 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) 932,370 947,339 1,004,824 1,050,801 Consumption Intensity (GJ/ ft 2 ) 0.0349 0.0372 0.0380 0.0378 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.
Energy & Atmosphere Emissions 1 2005 2006 2007 2008 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) 479,678 394,945 373,727 339,464 Direct (Scope 1) Natural Gas, Other Fuels, Refrigerants, Fleet Vehicles Energy Indirect (Scope 2) Electricity, Steam 78,645 401,033 64,975 329,970 63,616 310,111 54,768 284,696 Emissions Intensity (tonnes CO 2 e/ft 2 ) 0.0120 0.0110 0.0112 0.0107 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.
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 2012. Covers Direct (Scope 1) and Energy-Indirect (Scope 2) emissions relative to a 2005 base year.
Water Efficiency 2005 2006 2007 2008 Number of buildings 1 57 67 68 70 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 ) 0.1483 0.1412 0.1432 0.1337 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.
Sustainable Sites 2005 2006 2007 2008 Total number Green Building 12 25 48 59 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%
Materials & Resources 2005 2006 2007 2008 WASTE DIVERSION Number of buildings 1 N/A 27 26 59 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).
Indoor Environmental Quality GREEN CLEANING 2005 2006 2007 2008 Total properties with Green Cleaning Programs 1 23 29 50 58 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.
Oxford s approach to Sustainability OPERATIONS GUIDE Requirements, recommendations & best practices Aligns with 5 core LEED / scorecard categories
PART 3 Beyond Measurement & Reduction Efforts
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
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
Differentiators Gold Standard Tenant Recognition International 3 rd Party Verification LEED
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
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
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
One Less Tonne (Pembina Institute) www.onelesstonne.ca One Million Acts of Green (CBC) www.green.cbc.ca RESIDENTIAL
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 www.oxfordproperties.com/sustainable sustainableintelligence@oxfordproperties.com