ESG+R Policy

TA Realty is committed to evaluating our investments with a holistic sustainability approach, incorporating Environmental, Social, Governance and Resilience (ESG+R) into the evaluation and decision-making process. We incorporate ESG+R issues into our evolving policies which adds to our responsible business practices and seeks to positively impact our assets’ financial performance now and for the future. As a fiduciary, our selection of initiatives involves thoughtful analysis of expected results including the impact our assets have on the environment, the impact the environment has on our assets (climate change), our carbon footprint, and the environment in which our employees and tenants live and work. Sustainability factors are considered throughout the investment process, at all stages of an investment’s lifecycle; development, acquisition, operation and through disposition. Investing in ESG+R is expected to help future-proof our assets by decreasing operating costs, increasing tenant awareness, lowering environmental impacts, and mitigating physical and transition risks associated with climate change. This approach enables us to manage our risks and strive to create and preserve more value over the long term for our clients.

 

 

Environmental Stewardship

 

Objectives

  • Benchmark our properties’ energy, greenhouse gas emissions, water, and waste metrics to measure our portfolios’ environmental TA Realty strives to track all landlord data and obtain tenant data when available.
  • Identify opportunities to improve our building efficiencies, increase water conservation, and divert more waste from landfills to reduce the portfolios’ environmental footprint
  • Evaluate third-party green building certifications to achieve recognition for sustainability and health measures at our properties and pursue ENERGY STAR certification for eligible properties annually
  • Evaluate opportunities for renewable energy across the portfolios, including the installation of solar, green power procurement in deregulated markets, and purchasing Renewable Energy Certificates (RECs)
  • Start the process of tracking embodied carbon on new development projects

 

Targets

  • 25% reduction in Greenhouse Gas (GHG) emissions over 10 years (2.5% annually)
  • 25% reduction in energy consumption over 10 years (2.5% annually)
  • 15% reduction in water consumption over 10 years (1.5% annually)
  • 40% diversion rate within 10 years

 

 

Social Responsibility

 

Objectives

  • Foster a workplace environment of respectful engagement, transparency, health, and well-being for our employees and tenants
  • Provide relevant guidance and resources to property teams and tenants including sustainability, health and well-being standard practices
  • Increase tenant engagement and education on ESG+R initiatives at the property level
  • Support charities and community groups financially and with volunteering through the TA Realty Social Impact Committee as well as locally at our properties, to align more with the United Nations Sustainable Development Goals (SDGs)
  • Promote diversity, equity, and inclusion by, among other things, providing trainings and resources (see DE&I policy)
  • Increase outreach, mentorship, and education targeting young women and minorities about commercial real estate
  • Incorporate green lease language into tenant leases promoting collaboration on ESG+R initiatives
  • Provide professional training to employees including career development, health and well- being, investment due diligence, compliance, and environmental issues
  • Employ ESG+R-specific requirements in procurement and partnerships to promote sustainable processes

 

 

Corporate Governance

 

Objectives

  • Educate and update stakeholders on our ESG+R implementation and achievements through appropriate ESG+R reporting, disclosures, and commitments, including GRESB and the United Nation’s Principles for Responsible Investment (UN PRI)
  • Improve transparency by posting ESG+R objectives and achievements on our corporate website
  • Incorporate ESG+R considerations into our investment decisions and related due diligence processes
  • Ensure and track our assets’ compliance with (1) applicable city and state benchmarking ordinances, (2) audit and improvement mandates, and (3) greenhouse gas emissions performance requirements
  • Ensure all employees participate in annual compliance and code of ethics review/training
  • Embrace corporate responsibility, accountability, fairness, and transparency in our relationships with clients and investments by implementing comprehensive policies and procedures that govern the activities of the group, including:

o Employee remuneration, executive compensation, fiduciary duty, data protection & privacy, fraud, bribery, corruption, political contributions, and whistleblower protection

 

 

Climate Change Resilience

 

Objectives

  • Develop a program aligned with the Task Force on Climate-Related Disclosures (TCFD)
  • Incorporate physical and transition risk into the Investment Process
  • Evaluate physical and transitional risk of existing portfolios and all new acquisitions
  • Share information with property teams to help create disaster recovery plans and direct property teams to share with tenants

 

THE REALTY ASSOCIATES FUND XI S.C.S. (the “Luxembourg Fund”)

 

It is noted that, with respect to the Luxembourg Fund, which qualifies as a so-called “article 6 product” under the Disclosure Regulation (as defined below), the LIS ESG-policy being published at https://lis-aifm.com/esg/ shall apply. Considering that the Luxembourg Fund is closed for subscription, no pre-contractual documentation will however be updated in light of Regulation (EU) No 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosure requirements in the financial services sector (the “Disclosure Regulation“).

 

 

The above objectives may vary by fund/account depending on confidential private placement memorandum (PPM) and investment strategy and by separate account mandates. Contact your TA Realty representative for additional inquiry. TA Realty reviews these ESG+R Objectives annually and is committed to the implementation and integration of ESG+R practices.

 

 

Additional details on TA Realty’s ESG Program will be coming soon.