2016 SUSTAINABILITY REPORT KINGSETT CAPITAL: INVESTING FOR THE FUTURE

Transcription

1 2016 SUSTAINABILITY REPORT KINGSETT CAPITAL: INVESTING FOR THE FUTURE

2 WHO WE ARE KingSett Capital is a private equity real estate investment business headquartered in Toronto, serving investors in Canadian real estate. KingSett s core business is acquiring, investing in and actively managing real estate. Our cohesive approach ensures that our efforts address our key sustainability themes throughout our investment lifecycle. PORTFOLIO GROWTH Efficient & Resilient Portfolio/Properties Effective Investment Management Effective Risk Weighted Returns ACQUISITIONS Risk Assessment & Mitigation Planning Energy Audits & Resiliency Assessment Responsible Investment Analysis VALUE PROPOSITION Expense Containment NOI Growth Asset Repositioning Value Creation ASSET MANAGEMENT Building Efficiency Utility Cost Management Tenant & Stakeholder Engagement Responsible Procurement Asset Lifecycle Assessment 1 KingSett Capital / 2016 Sustainability Report

3 OUR MESSAGE Corporate Sustainability We are pleased to present our 2016 Sustainability Report which details our progress in providing environmental, social and governance value for our investors and stakeholders. At KingSett Capital, our purpose is to deliver premium risk weighted returns to our clients supported by a sound sustainability strategy. The economic environment in recent years has reinforced the importance of consistently applying our sustainability principles to the way in which we manage our assets. Sustainability is a key part of our proactive strategy to increase value, maintain transparency and remain a trusted partner to our clients. In 2016, we were honoured to be recognized once again with a GRESB Four Star Rating. Our annual participation in the GRESB Real Estate Assessment demonstrates our commitment to making responsible investment decisions an everyday part of the way we do business. (From left to right) Bill Logar, Anna Kennedy, Rob Kumer, Joe Mazzocco, Jon Love Other achievements in 2016 include: Received a Clean 50 Leaders in Green Energy Award Achieved BOMA BEST Sustainable Workplaces recognition for our Toronto Corporate Office Reduced our Toronto office greenhouse gas (GHG) emissions by 12% 90% of KingSett employees received professional training in % of our employees participated in KingSett community outreach events Added a Sustainability Manager to our Asset Management Team Updated our Sustainability Policy In recent years, our sustainability program underwent significant growth. In 2016, we chose to focus on optimizing the program through two main activities: firstly, we completed an extensive review to confirm that sustainability is properly embedded in every business unit. Secondly, we analyzed workplace trends, changing technologies and innovations, as well as new Federal and Provincial regulations, to ensure that we are well-positioned for the future. We recognize that the continued support of our stakeholders is integral to our program s success and are grateful for their ongoing contribution. Regards, Jon Love, Chief Executive Officer For more information about sustainability at KingSett, please contact: Trevor Gilbert, Manager, Sustainability / / TGilbert@kingsettcapital.com KingSett Capital / 2016 Sustainability Report 2

4 OUR APPROACH KingSett believes in active risk management through our environmental, social and governance activities. KingSett has been tracking our progress using key performance indicators (KPIs) since This allows us to proactively manage our assets, identify opportunities for savings and rapidly rectify potential performance issues immediately. STAKEHOLDER ENGAGEMENT We engage our stakeholders on sustainability issues in several ways: Our Executive Committee receives bi-monthly Sustainability Updates that include portfolio case studies, portfolio progress, highlights of key sustainability issues, and summaries of sustainabilityrelated articles. The KingSett Employee Sustainability Team meets several times each year to discuss and plan green office initiatives and philanthropic campaigns. Investors and other stakeholders receive regular updates on progress. Our Every Annual Quarterly Sustainability Report to the Report Board of provides Directors an includes in-depth a update section on dedicated sustainability throughout to sustainability the corporation. achievements. Our Annual Sustainability Report provides an in-depth update on KingSett actively participates in the following sustainability throughout the CREIF portfolio. industry associations: KingSett actively participates in the following CaGBC Charter Member industry associations: CaGBC Toronto Chapter (Board of Directors) CaGBC Charter Member BOMA Toronto (Board of Directors) CaGBC Toronto Chapter (Board of Directors) Downtown Yonge Business Improvement Area (Board BOMA Toronto (Board of Directors) of Directors) Downtown Yonge Business Improvement Area (Board REALpac (Member) of Directors) International Council of Shopping Centers (Member) REALpac (Member) Sustainable Investment Committee (Member) International Council of Shopping Centers (Member) GRESB Real Estate (Respondent) Sustainable Investment Committee (Member) GRESB Real Estate (Respondent) SUSTAINABILITY GOVERNANCE KingSett s sustainability program is overseen by a multi-stakeholder group, including: our CEO and Executive Committee, a dedicated Sustainability Director and Manager, an internal Employee Sustainability Team, the Asset Management Team and an external property manager Employee Green Team. Asset Management Team Property Management Green Team KINGSETT S SUSTAINABILITY PROGRAM CEO and Executive Committee Sustainability Director and Manager KingSett Employee Sustainability Team 3 KingSett Capital / 2016 Sustainability Report

5 OUR STRATEGY Our approach is guided by our Sustainability Vision, Objectives and Corporate Values. SUSTAINABILITY VISION KingSett will invest responsibly in sustainability enhancements to provide premium risk weighted returns. We seek to make innovative investment decisions that have a positive impact on the future. Our experienced team will put progressive development and operations strategies into practice every day. Tenants can expect us to provide prudent, creative solutions that address their needs. OBJECTIVES Through our sustainability policy and program, KingSett sets specific, measurable goals on key performance indicators. These enable us to integrate sustainability considerations into our business planning and decision-making processes. We identify, assess and manage environmental risks associated with our operations across the investment lifecycle. Throughout, we aim to build relationships with other stakeholders. Our activities comply with all applicable legal and regulatory requirements. In the interest of transparency, we prepare this report summarizing our sustainability activities. CORPORATE VALUES We respect all people and value long-term relationships. We are accountable and operate with transparency. We conduct ourselves with humility and integrity. We strive for sustainability. SUSTAINABILITY STRATEGY PEOPLE PORTFOLIO PROGRESS Skills and Leadership Health and Wellness Engaging Clients Community Connectedness Preparing for the Future Flexibility, Productivity and Growth Optimizing Building Environmental Performance and Resilience Energy, Carbon, Water and Waste Management Supply Chain Management Technical Innovation Thought Leadership Responsible Investment Resilient and Adaptive Buildings and Spaces KingSett Capital / 2016 Sustainability Report 4

6 CASE STUDIES CREIF MIDTOWN PLAZA, SASKATOON Midtown Plaza in Saskatoon completed a retrocommissioning study in The study identified overridden and malfunctioning parkade fans, malfunctioning rooftop unit dampers, exposed or uninsulated steam pipes as well as several opportunities to improve building schedules and HVAC settings. Mitigating these issues has yielded annual complex-wide energy savings of 2% at minimal cost. LP5 ABERDEEN MALL, KAMLOOPS Aberdeen Mall replaced several rooftop units that were past their useful life expectancy with units of a higher Energy Efficiency Rating (EER). The new units are expected to yield annual energy cost savings of $2,500. At a cost premium of $8,500, the units provide an anticipated payback of 3.5 years. Replacing interior 150 watt metal halide pot lights with 46 watt LED lamps is estimated to save an additional $4,400 in utility costs per year. As a result of these measures and others, annual energy use has decreased by more than 4% compared to KingSett Capital / 2016 Sustainability Report

7 COURTYARD MARRIOTT, TORONTO The 575-suite Courtyard Marriott underwent a complete building lighting upgrade project by replacing over 10,000 lamps throughout the hotel with high-efficiency LEDs. As a result, the Courtyard Marriott expects to save approximately 1 million kilowatt hours of electricity each year, reducing annual utility costs by $140,000 and achieving a simple payback of just over 2 years. Energy conservation will also yield GHG emissions reductions of 90 metric tonnes carbon dioxide equivalents. This has the same effect as preventing 38,000 litres of gasoline from being consumed each year. LP5 The Royal York implemented a significant lighting upgrade project and replaced approximately 35,000 lamps throughout the hotel with high-efficiency LEDs. As a result, the Royal York expects to save approximately 3.4 million kilowatt hours of electricity each year, reducing annual utility costs by $500,000 and achieving a simple payback of less than 2 years. Energy conservation will also yield GHG emissions reductions of nearly 320 metric tonnes of carbon dioxide equivalents. This has the same effect as taking 65 passenger vehicles off the road for an entire year. ROYAL YORK HOTEL, TORONTO LP5 KingSett Capital / 2016 Sustainability Report 6

8 LEADING BY EXAMPLE IN 2016 Presenting Sponsor of the 2016 Canada Green Building Council (CaGBC) Greater Toronto Chapter Gala and Awards Program 90 % of KingSett employees received professional or career training 76 % Michael Brooks, CEO, REALpac, toasting attendees at the 2016 CaGBC Greater Toronto Chapter Gala and Awards Program. of our employees attended industry conferences 2,470 MWH 11 % Renewable Energy Certificates (RECs) purchased since 2007 for our Toronto office; equivalent to greening the energy consumed by 183 homes for one year Clean 50 Leaders in Green Energy Award of all KingSett employees received sustainability-specific training GRESB Four Star Rating 8 % Office energy reduction $40,000 + raised for the United Way Campaign BOMA BEST Sustainable Workplaces Certification of our Toronto office 26 trees saved by participating in the Shred-it shredding and recycling program 40 % of employees participated in the Earth Day Commuting Challenge 7 KingSett Capital / 2016 Sustainability Report