2016 GRESB Real Estate & Debt Results Release - North America

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7.3billion

73 $ trillion

9.8GtC/year

+0.810C above 20th century average

Worldwide

GDP

CO2

Population

ACTIAM Aegon NV Alberta Investment Management Corporation (AIMCo) Amundi AMP Capital AP1 First Swedish National Pension FundAP2 Second Swedish National Pension Fund AP3 Third Swedish National Pension Fund AP4 Fourth Swedish National Pension Fund AP7 Seventh Swedish National Pension Fund Archbishops' Council Armstrong Asset Management ATP Australian Ethical Investment AustralianSuper Aviva Investors AXA AXA IM Baldwin Brothers Inc. Bank J. Safra Sarasin Bayerische Versorgungskammer Bedfordshire Pension Fund BMO Global Asset Management BNP Paribas Investment Partners Brawn Capital Brown University Sustainable Investment Fund BT Pension Scheme California Public Employees' Retirement SystemCalifornia State Teachers' Retirement SystemCathay Financial Holding Co., Ltd.

Catholic Super CBRE Global Investors Cbus Super CCLA Central Finance Board of the Methodist Church Christian Brothers Investment Services Christian Super Christopher Reynolds Foundation Church Commissioners for England Church of England Pensions Board Church of Sweden Connecticut Retirement Plans and Trust Funds Dana Investment Advisors Danske Bank Asset Management Danske Civil- og Akademiingeniørers Pensionskasse Deutsche Asset Management Dragon Capital EdenTree Investment Management Ltd. Encourage Capital Environment Agency Pension Fund Epworth Investment Management Ltd ERAFP ESSSuper ETF Partners Eureka Funds Management First Affirmative Financial Network Friends Fiduciary Corporation Friends Provident Charitable Foundation FRR - Fonds de Réserve pour les Retraites Greater Manchester Pension Fund Henderson Global Investors Hermes Investment Management

HESTA HSBC Global Asset Management IFM Investors Impax Asset Management Inflection Point Capital Management Insight Investment Jesuits in Britain Juristernes og Økonomernes Pensionskasse Kempen Capital Management L&G Investment Management Local Government Super London Pensions Fund Authority Mercer Merseyside Pension Fund Miller/Howard Investments, Inc. Mirova MN Nanuk Asset Management Pty Ltd Natixis Asset Management NEI Investments New York City Comptroller New York State Common Retirement Fund New Zealand Superannuation Fund NextEnergy Capital Nordea Wealth Management North East Scotland Pension Fund OFI Ohman Old Mutual Global Investors OPTrust Oregon State Treasurer OTTP Pax World Management LLC PensionDanmark PGGM PKA

Plater Trust Railpen Investments Rathbone Greenbank Investments Representative Body of the Church of Ireland Reynders, McVeigh Capital Management Robeco Russell Investments Sisters of St. Dominic of Caldwell, New Jersey Sonen Capital South Yorkshire Pensions Authority Stafford Sustainable Capital Statewide Super Tellus Mater Foundation Temporis Capital LLP The Barrow Cadbury Trust The Joseph Rowntree Charitable Trust The Pensions Trust The Sustainability Group at Loring, Wolcott and Coolidge The United Reformed Church Trillium Asset Management Trustees of Amherst College Unipension FAIF A/S Unitarian Universalist Association USS Veris Wealth Partners VicSuper Vision Super Pty Ltd Walden Asset Management Wespath Benefits and Investments West Midlands Pension Fund West Yorkshire Pension Fund WHEB

130 investors

INTRODUCING THE 11THGICS® SECTOR: REAL ESTATE

Buildings are part of the problem…

99TWh 27.9Mt 0.47km3 15.5Mt

Innovation in renewable energy

…but also part of the solution

Innovation in waste management

…but also the solution

Market Transformation

Sustainability Performance

Buildings

Leading

BREEAM OutstandingLEED PlatinumGreen Star Six StarEtc.

Regulation

Market transformationTop down, bottom up

CapitalMarket

Company

Portfolio

Building

Investment CommunityCAPITAL Investment

Manager

Portfolio Manager/Asset Manager

Property Manager/Facility Manager

COMM

ITMENT

TRANSPARENCY

RISKOPPORTUNITY

3.9xThe difference in overall GRESB score between

the Top 10% and Bottom 10% entities in 2016

“U.S. REITs with higher GRESB ratings deliver higher returns

per unit of risk”

“2.75% return spread between the Top 10%

and Bottom 10% European non-listed

GRESB entities”

73,988Homes

EnergyLFL consumption (between 2014-2015)

90,197passenge

r cars

CarbonLFL consumption (between 2014-2015)

1,200Olympic

pools

WaterLFL consumption (between 2014-2015)

14,963truck loads

WasteLFL consumption (between 2014-2015)

The Assessment

REAL ESTATE PORTFOLIOS

PROPERTYCOMPANIES

CAPITALMARKET

BENCHMARKSCOREASSESS

COMMUNICATE

GRESB SCOREPolicy & Disclosure Building

Certification

Monitoring & EMSManagement

Performance Indicators

Risks & Opportunities

Stakeholder Engagement

8.8%

9.5%

12.4% 25.

2%

24.5%

10.9%

8.8%

DATA PARTNERS (API)

GRESB ASSET DATA

FREE GRESB ASSET SPREADSHEETS

ValidationThree-layer process for investment-grade data

100%

Validation Plus

Site Visit

All Participant Check

Open text boxes (quality)Open-ended questionsHyperlinksEvidence (presence)

Evidence (content)Data accuracy18%

2.5% Reporting boundariesData qualityEvidence for answers

GRESB Coverage

63 Countries 759 Entities 66,000 Assets

Response Rate DevelopmentGlobal

Response Rate DevelopmentNorth America

USD 100 billion

Apple Market CapUSD 584 billion

USD 7.6 trillionCommercial Real Estate Owned by Investors

USD 2.8 trillionGRESB Coverage

Competitive Differentiation & Advantage

Risk & Uncertainty USD 2.8 trillionGRESB Coverage

GRESB Performance

GRESB ModelGlobal ESG performance

GRESB ModelRegional ESG performance

GRESB ModelNorth America

Ruben Langbroek
Can we add average region scores of other regions? This is what everbody wants to know: how do we compare with....

ESG Performance DynamicsGlobal trends over time

Sector leadersNorth America

Listed PrivateDiversified Invesco Core Real Estate - U.S.A., LP - Invesco Real Estate 🌐

Retail The Macerich Company Pine Tree - Pine Tree

Office Kilroy Realty Corporation MetLife/Norges Bank Investment Management Joint Venture

Industrial Prologis - Prologis

Residential Equity Residential Invesco San Jacinto Core Fund

Diversified - Retail/Office Oxford Properties Group (OMERS) - Oxford Properties GroupDiversified - Residential/Office

Multi-Employer Property Trust/MEPT Edgemoor - Bentall Kennedy Group 🌐

Performance?

70,520Homes

EnergyNorth America: Footprint and LFL Consumption 2014-2015

83,418passenger

cars

CarbonNorth America: Footprint and LFL Consumption 2014-2015

9,897Olympic pools

WaterNorth America: Footprint and LFL Consumption 2014-2015

107,000truck loads

WasteNorth America: Footprint and LFL Consumption 2014-2015

Renewable EnergyGlobal

Renewable EnergyNorth America

Intensities – carbon emissionsInput versus output

But also...

GRESB AspectsNorth America

2016 2015

Stakeholder EngagementGlobal

…and many more indicatorsSuch as Health & Well-being

What drives performance?

PLAN

DO

CHECK

ACT

INDICATOR

Carbon ManagementGlobal

1. ESG policy includes carbon emissions2. Carbon emissions target in place3. Due diligence process includes carbon

emissions4. Risk assessments include carbon

emissions5. Data management system in place

6. Reporting carbon emissions data7. Offsetting carbon emissions8. Reporting carbon intensity data9. External review of carbon emissions

data

1.2.3.4.5.6.7.8.9.

Road Ahead

759ENTITIES

60(’15: 54)

LISTEDAUS/NZ

-2% LFL Change in Carbon Emissions (427kt)

SCORE LEADREPORT

Sustainability Performance

Building Certifications

& Ratings

LeadershipRegulation

Buildings

Leaders

Sustainability Performance

Companies

Leaders

Sustainability Performance Leaders

What is your GRESB Rating?

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