2016 Sustainability Report

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2016 Sustainability Report Sustainability REPORT 2016 ANNUAL SUSTAINABILITY REPORT 2016 1 Executive Message CommonWealth Partners aims to be at the forefront of green building and efficient operations In this report, we’re proud to share the Environmental, Social, and Governance (ESG) milestones we reached in 2016. We continued to deepen and broaden our sustainability commitment through new programs and initiatives such as building resiliency against natural disasters, demand response programs, and tenant engagement in sustainability. Additionally, we are proud of our performance in GRESB's annual Real Estate Assessment Survey — ranking 2nd out of 35 in the Office category, up from 3rd place last year. As the reporting competition gets steeper each year, the improvement in our ranking is a testament to the resilience of our ESG program Some highlights of our progress last year include: • Becoming a leader in GRESB’s annual survey for the office category • Benchmarking 96% of our portfolio in ENERGY STAR Portfolio Manager • Obtaining ENERGY STAR Labels with a weighted average score of 89.93 • Participating in ENERGY STAR’s annual Battle of the Buildings Bootcamp, achieving the highest estimated energy cost savings and reduction in total Greenhouse Gas emissions • A property award at Urban Green's 2016 EBIE Awards Ceremony These accomplishments are just a sampling of our overall advancement in becoming a more sustainable company. CommonWealth Partners will continue to integrate our sustainability policies and measures throughout our business in order to mitigate climate change risk, maximize competitiveness, and stay ahead of social, economic, and environmental impacts. And we can only do this in close cooperation with all of our stakeholders – investors, tenants, suppliers, and employees. We thank you for taking the time to learn about CommonWealth Partners and our work toward a healthier, more efficient, and environmentally responsible future. CommonWealth Partners 2Commonwealth COMMONWEALTH Partners PARTNERS ANNUAL SUSTAINABILITY REPORT 2016 3 Table of Contents Executive Message About This Report Governance 06 Company Profile Sustainability Commitment Risk Management Case Study: Building Resiliency Materiality Responsible Investment Environment 16 Environmental Management System Targets and Performance Goals Sustainability Initiatives Performance Indicators Our Properties Case Study: Health & Wellbeing Timeline About This Report Social 34 Each year, CommonWealth Partners Tenant Engagement publishes a corporate sustainability Community Engagement report to summarize the progress and commitments made within our Education and Outreach environmental, social and governance Awards (ESG) objectives. The qualitative and Benchmarking quantitative data referenced in this Case Study: City National Plaza report reflect the 2016 calendar year Partnerships & Programs and are illustrated by referencing the By integrating sustainability measures Global Reporting Initiative’s (GRI) G2016 guidelines. This report provides into all areas of our business, we minimize risk an “at a glance” overview of our key Reporting & Disclosure sustainability initiatives, strategies, The Global Reporting Initiative and increase environmental, social, and economic targets and programs. The properties resilience while remaining highly competitive. identified in this report represent those having been owned by CommonWealth Partners for at least 6 months or longer during the 2016 calendar year. 4Commonwealth COMMONWEALTH Partners PARTNERS ANNUAL SUSTAINABILITY REPORT 2016 5 CommonWealth Partners is proud to be an ethical company with a positive record of accomplishment Governance in world-class corporate governance. We aim to be a responsible member of all the communities in which we operate. CommonWealth Partners maintains a holistic investment strategy that puts sustainability and financial longevity at the center of our decision- making. Our mission and vision are consistent with the values and standards we hold ourselves to every day. 6Commonwealth COMMONWEALTH Partners PARTNERS ANNUAL SUSTAINABILITY REPORT 2016 7 GOVERNANCE Company Profile Sustainability Commitment CommonWealth Partners, LLC is a Partners has acquired and managed development levels. This fully-integrated Our commitment to sustainability goes beyond policies and compliance. private real estate investment, Class A office and mixed-use properties approach provides CommonWealth CommonWealth Partners believes in driving sustainability for the good of all development, and management across the United States. Partners, our tenants, and our investors our stakeholders and communities. company based in Los Angeles, material economic benefits and an California. We were founded in 1995 by CommonWealth Partners is vertically overall competitive advantage. Mission and Vision senior members of a diversified integrated to provide portfolio It is our mission to create and maintain environments that are safe, healthy, and development and operating team who management, asset management, We own and manage premier efficient while securing the financial health of our investors and tenants. Our most had worked together for 15 years. property management, marketing and institutional-quality office properties Sustainability Policies: valued assets are not the structures we own and operate, but the occupants and Together they acquired, planned, leasing, development, and accounting/ across the United States, offering a partners who rely on us to make sound and lasting decisions. Founded on an entitled, and developed over 20 million reporting services. This approach wide array of services with a sharp unparalleled dedication of service and entrepreneurial spirit, our mission is to drive square feet of large-scale, premier- maximizes value and provides superior focus on our customers. Our success is Corporate-Level service because the same organization due to our commitment to provide an sustainability for the common good. quality office and mixed-use projects • ESG Policy that set new standards of excellence in and, in many cases the same unmatched level of service to our CommonWealth Partners envisions a future when our valued assets become a individuals, will be involved in strategy tenants and financial partners by • Building Resilience & Climate serving the needs of corporations, reflection of our shared responsibility to our business partners and the natural and implementation at the portfolio, combining the highest level of capability Change Guide professional firms, and financial environment. We seek to achieve a balance between strategic sustainability institutions. As an investment partner of investment, asset management, and experience. • Energy Efficiency Policy initiatives and sound investment management. This balance enables us to seek CalPERS since 1998, CommonWealth property management, leasing, and opportunities that have a positive impact on the health and well-being of our building • Water Efficiency Policy occupants, while strengthening our valued business relationships. • Stakeholder Engagement Policy CWP Guiding Principles • Sustainability Due Diligence Policy Co-managing Partners Unparalleled level of service • Health and Wellbeing Guide CWP Principals/Executive Vice CommonWealth Partners prioritizes the needs of our tenants and financial partners Sustainability Committee by delivering the highest-quality assets with first-class services that are unequalled Property-Level Executive Vice President in the marketplace. & Vice President Sustainability Consultant • Site Management Plan Verdani Partners: Highest investment opportunities and returns • Integrated Pest Management Plan Sustainability Advisor We deliver fiscally responsible and sustainable buildings that outperform the market. Director of Sustainability • Cooling Tower Management Plan CWP CWP Engineer Healthy and productive work environments Acquisitions/Assets Property Mgmt. & • Refrigerant Management Policy Mgmt. Teams Engineering We maintain office environments that maximize workplace health, safety, and productivity. • Ongoing Commissioning Plan • Sustainable Purchasing Policy High-performance operations Tenants Third-party Vendors Our buildings reach high efficiency standards through ongoing maintenance and • Solid Waste Management Policy continuous improvement measures. • Green Cleaning Policy • Smoking Policy Operators/ Janitorial Security Contractors Maintenance • Green Tenant Guide Sustainability Policies • New Construction and Renovations Guide We’ve implemented several company-wide sustainability policies throughout our • Facility Maintenance and Founded on an unparalleled dedication of service and operations to make sustainability an inherent part of our operations and culture. Renovations Policy entrepreneurial spirit, our mission is to drive sustainability To ensure the policies stay relevant and useful for the organization, we updated and • Indoor Air Quality Policy simplified the language of our polices and condensed all relevant information into 20 for the common good. policies. 8Commonwealth COMMONWEALTH Partners PARTNERS ANNUAL SUSTAINABILITY REPORT 2016 9 GOVERNANCE Risk Management CommonWealth Partners and its ownership are responsible for Sustainability Due Diligence Certifications and Labels Climate Change & Building Resiliency the risk management and insurance program for all owned and managed assets. Our due diligence during the acquisition Sustainability due diligence is reviewed annually to determine • LEED certifications CommonWealth
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