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2019 GRESB Real Estate Results | Toronto

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September 18, 2019
Hosted by Oxford Properties, in partnership with REALPAC and S&P Global

Published in: Investor Relations
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2019 GRESB Real Estate Results | Toronto

  1. 1. Toronto – September 18, 2019
  2. 2. Assess and benchmark ESG performance of real assets, providing standardized and validated data to capital markets. 2
  3. 3. Institutional Investors GRESB Assessments Fund managers Listed companies I N V E S T O R P E R S P E C T I V E E S G A N A L Y T I C S E S G A N A L Y T I C S E S G P E R F O R M A N C E D A T A An interactive ESG Data platform for Real Assets
  4. 4. Key Figures Participants Total property value (USD tn) Properties covered Institutional investors Institutional capital (USD tn) Industry associations 20 10 20 19 3 100 +100,000~18,000 0.9 4.1 1,005198 220.3 Partners1 +50 +403
  5. 5. Sustainability / ESG is a journey
  6. 6. Scores distribution AVERAGE GRESB SCORE 40% 30% 20% 10%
  7. 7. Benchmark size & Assets Location
  8. 8. Benchmark size & Assets Location
  9. 9. 2019 Private market coverage “75 of IPE Real Assets’ Top 100 Global Real Estate Investment Managers“
  10. 10. GRESB Overall Score Development
  11. 11. Regional Scores
  12. 12. Regional Scores
  13. 13. Country scores – Americas & US & Canada CANADA IM: 75.2 MP: 80.5 Overall: 76.6 US IM: 69.9 MP: 79.0 Overall: 72.3 AMERICAS IM: 69.7 MP: 78.6 Overall: 72.0
  14. 14. Reporting of assets 38,274 53,015 8,703 1,089 2,107 # assets AMERICAS EUROPE ASIA OCEANIA AFRICA OTHER
  15. 15. From quantity to quality +100,000 +66,000 +25,000 # assets All assets Assets • Reported at asset-level Assets • Reported at asset-level • With full data coverage • Excluding outliers
  16. 16. AMERICAS Energy Intensities per type & Environmental Impact ENERGY consumed 1.02% WATER consumed -1.48% GHG emitted -0.16% WASTE diverted 14% GLOBAL
  17. 17. Country-level Energy and Water Intensities - CA
  18. 18. Country-level intensities - CA
  19. 19. 10 years of impact LIKE-FOR-LIKE REDUCTIONS EQUIVALENT
  20. 20. AMERICAS Building Certifications (% area) GLOBAL 12.8% 8.8% Design/Construction Operational AMERICAS GLOBAL 23.3% 15.8%
  21. 21. EUROPE Building Certifications (% area) GLOBAL 12.1% 8.8% Design/Construction Operational EUROPE GLOBAL 16.0% 15.8%
  22. 22. GRESB Universe (Like-for-like) GRESB Universe (Targets) UN SDG (Target 7.3) Sustainable Development Goals (SDGs)
  23. 23. Carbon Risk Real Estate Monitor Property Investing in the Age of Climate Risk CRREM “CRREM is a framework for science based decarbonization pathways and a toolkit to identify stranded assets and promote sustainable investments in the real estate industry.” CRREM EU funded H2020 research project: February 2018 – January 2021
  24. 24. NYC Carbon Reduction Law
  25. 25. Resilience module vs. TCFD METRICS AND TARGETS RISK MANAGEMENT STRATEGY GOVERNANCE
  26. 26. https://vimeo.com/356495575/95606682e8
  27. 27. MINI PANEL DISCUSSION 2019 GRESB Results Resilience Moderator: Ben Shinewald, President and CEO, BOMA Canada • Natalia Moudrak, Director, Climate Resilience, Intact Centre on Climate Adaption • Derek Billsman, Director, Real Estate Management and Sustainability, HOOPP
  28. 28. MINI PANEL DISCUSSION 2019 GRESB Results ESG in Real Estate - Past and Future Moderator: Michael Brooks, CEO, REALpac • Darryl Neate, Director, Sustainability, Oxford Properties Group • Hugh Molyneux, President, Refined Data Solutions • Regan Smith, Director, Sustainability, Manulife Investment Management
  29. 29. No content below the line Dow Jones Green Real Estate Indices Copyright © 2019 by S&P Global. All rights reserved. For Financial Professionals/Not for Public Distribution September 2019 Michael Orzano, CFA Senior Director, Global Equity Indices Product Management
  30. 30. No content below the line Dow Jones Green Real Estate Indices Key Attributes 2 • Constructed from the Dow Jones Select Real Estate Securities Indices (RESI), a widely used listed real estate index series with approximately $29bn in index- linked assets* • Utilize data from GRESB – a leader in evaluating the ESG performance of real estate companies • Incorporate property level data that measure such criteria as energy and water usage, carbon emissions and leasable area covered by green building certifications • Index methodology is designed to improve the overall sustainability profile of the index without significantly altering its investment characteristics • Green indices have historically had low tracking error vs conventional real estate benchmarks *Source: S&P Dow Jones Indices; Evestment; Morningstar. ETF data as of 2/28/2019. Index fund and other investment vehicle data as of 12/31/2017. For Financial Professionals Only
  31. 31. No content below the line Index Methodology Overview 3 *Companies that do not participate in the GRESB real estate assessment are scored as a zero for ranking purposes. Rebalancing occurs annually effective the 3rd Friday of December. Source: S&P Dow Jones Indices. For more information see the index methodology at www.spindices.com. Charts are provided for illustrative purposes. weight reduced by 30% weight increased Each DJ Green Real Estate Index is the result of re-weighting its parent index by relative GRESB ranking, as indicated in the following steps: DJ Global Green RESI DJ Global ex-U.S. Green RESI DJ U.S. Green REIT DJ Japan Green RESI 1) All constituents of each relevant Parent Index are included : DJ Global Select RESI DJ Global ex-U.S. Select RESI DJ U.S. Select REIT DJ Japan Select RESI 2) Within each parent index, constituents are ranked by GRESB Total Score and relative weights are redistributed : • The weight of stocks in the lowest 50th percentile by GRESB score are reduced by 30% from their current weight in the parent index* • The weight of stocks in the highest quartile are increased in order to redistribute the relative weight that was reduced in the prior step GRESBTotal Score Highest Score Lowest Score 25th percentile 50th percentile 3) Re-weighted constituents of each parent index form the new indices : Dow Jones Green Real Estate IndicesDow Jones Select RESI For Financial Professionals Only
  32. 32. No content below the line Improved ESG Profile With Low Tracking Error 4 Dow Jones Global Green RESI Dow Jones Global ex-U.S. Green RESI Dow Jones U.S. Green REIT Dow Jones Japan Green RESI Source: S&P Dow Jones Indices. Data as of June 28, 2019. Charts are provided for illustrative purposes. GRESB Score improvement based on Weighted-Average GRESB Score for the indicated Dow Jones Green Real Estate compared against the weighted average GRESB Score for the appropriate parent index as of Dec 2018. Tracking Error measured from inception (Dec 2014). Past performance is not an indication or guarantee of future results. These charts and graphs may reflect hypothetical historical performance. Please see the Performance Disclosure at the end of this document for more information regarding the inherent limitations associated with back-tested performance. 18.7% 0.51% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 0% 5% 10% 15% 20% Relative GRESB Improvement Tracking Error TrackingError GRESBScoreImprovement 17.1% 0.88% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 0% 5% 10% 15% 20% Relative GRESB Improvement Tracking Error TrackingError GRESBScoreImprovement 19.3% 0.57% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 0% 5% 10% 15% 20% Relative GRESB Improvement Tracking Error TrackingError GRESBScoreImprovement 12.2% 1.60% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 0% 5% 10% 15% 20% Relative GRESB Improvement Tracking Error TrackingError GRESBScoreImprovement For Financial Professionals Only
  33. 33. GLOBAL AND NORTH AMERICA SECTOR LEADERS CommonWealth partners
  34. 34. 40 - Institutional investors - Asset managers - Industry associations - Asset managers - REITs - Service providers - Data providers Reporting framework Benchmarking tool ESG performance Assessment Engagement tool Stakeholder feedback loop REAL ESTATE Benchmark Committee INFRASTRUCTURE Benchmark Committee
  35. 35. - Strategy & Leadership - Policies - Reporting - Risk Management - Stakeholder Engagement - Risks & Opportunities - Monitoring - Performance Indicators - Energy - GHG emissions - Water - Waste Industry consolidation - Targets - Building Certifications - Tenants - Community Engagement
  36. 36. Assessment structure
  37. 37. Sustainable Real Assets

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