Make 2017 your best GRESB year yet Dan Winters Helee Lev Hillman Daniel Lake CRE MBA, LEED AP BD+C, Energy Advisor Head of North America ID+C EnerNOC GRESB EVP Goby GRESB Real Estate | Debt | Infrastructure

February 2017 Dan Winters, CRE Head of Americas [email protected] 202.997.3922 – m 202.742.3277 – o

© 2016 GRESB BV Unless explicitly stated otherwise, all rights including those in copyright in publication are owned by or controlled for these purposes by GRESB B.V. Except as otherwise expressly permitted under copyright law or GRESB B.V’s terms and conditions, no part of this publication may be reproduced, copied, republished, downloaded, posted, broadcast or transmitted in any way without first obtaining GRESB B.V’s written permission.

4 Enhance and protect shareholder value by assessing and empowering sustainability practices in the real asset sector

MISSION Market Behavior Distribution of activity | all economic sectors Regulation Industry Leadership

Sustainability Performance Real Estate Assets Economic signaling Regulation Market Leadership

Buildings

Sustainability Performance Corporate Practice Real estate industry :: private equity firms | property companies | REITs | developers Legal Requirements ESG Leadership

Sustainability PerformancePerformance Institutional Investors Assessing companies and private equity funds

OPPORTUNITY TRANSPARENCY RISK

Efficient Capital Markets GRESB Assessments Powered by a common mission and platform 2009

GRESB Real Estate Assesses the ESG performance of property companies, fund managers and developers 2015 GRESB Real Estate Debt Assesses ESG performance of real estate lenders

GRESB Infrastructure 2016 Assesses the ESG performance of infrastructure assets and portfolios

10 Members Founding Members Integrate ESG data | utilize GRESB analytic tools

11 Institutional Investor Members New in Integrate ESG data | utilize GRESB analytic tools 2017

12 Competencies Understanding and improving ESG performance

Systematic assessment companies | funds | separate accounts | JVs

0 - 100 Objective scoring ESG performance – environmental | social | governance

Peer benchmarking differentiate market participants Applications

Data for investor engagement – portfolio risks / opportunities

Institutional Investors 1. Positive screening 2. integration 3. Portfolio monitoring

Participants – Private Equity Firms / REITs 1. Comparative business intelligence 2. Internal engagement | gap analysis | improvement pathways

14 2016 GRESB Participants Comparative business intelligence | gap analysis | management introspection

Aberdeen Asset Management CommonWealth Partners Heitman Nomura UBS Global Asset Management AEW Capital Management Cordea Savills Investments Hermes Real Estate Nordic Real Estate Partners AB Universities Superannuation AEW Europe Cornerstone Real Estate Internos Global Investors Normandy Real Estate Partners Scheme Alberta Investment Mgmt CorVal Real Estate Ontario Teachers' Pension Plan USAA Real Estate American Realty Advisors Investa Oxford Properties Group Vasakronan AMP Capital Investors Crown Estate Ivanhoe Cambridge PGIM Real Estate Vesteda Investment B.V. Avison Young Deutsche Asset Management J.P. Morgan Asset Management Pine Tree Xander Investment Management Aviva Investors DEXUS Property Group Jamestown Properties Principal Real Estate Investors Investment Management DivcoWest Jonathan Rose Companies Prologis Bentall Kennedy Group DTZ Investors Ltd KingSett Capital Rockefeller Group BlackRock Europa Capital LLP LaSalle Investment Management Royal London Blackstone Exeter Property Group 217 private equity firms Legal and General Property BNP Paribas REIM France Federal Capital Partners RXR Realty 190 listed companies Bouwfonds Investment Mgmt Fidelity International Lendlease Schroder Real Estate Bouwinvest REIM Fortius Funds Management MacFarlane Partners Sentinel British Land Frasers Property Madison Marquette Shorenstein Properties Brookfield Goodman Group Majid Al Futtaim Properties Standard Life Investments Canary Wharf Group Grainger Asset Management / John Hancock Syntrus Achmea Carr Properties Greystar MetLife Investment Management TA Realty CBRE Global Investors Grosvenor Fund Management Minto Group TIAA Henderson Real Estate CIM Group GTIS Partners Moorfield Investment Management Tishman Speyer Clarion Partners GWL Realty Advisors Morgan Stanley Trinity Real Estate Colony Capital, Inc. Harrison Street National Real Estate Advisors LLC Triovest NBIM Tristan Capital Partners 15 ESG Engagement Drivers Top down | bottom up Institutional Investors CAPITAL

Capital Market REITs Private Equity

Company Portfolio Managers Asset Managers Portfolio

Property Managers Building Facility Managers Management 8.8% 8.8% Monitoring & EMS

GRESB Policy & Disclosure 9.5% 10.9% Building Certification SCORE

Risks & Opportunities 12.4% 24.5% Stakeholder Engagement 25.2%

Performance Indicators Biggest Hurdle: Portfolio Data Access Implementation and measurement

GRESB ASSET DATA

DATA PARTNERS (API)

+ others Validation Three layer process for investment grade data

All Participant Open text boxes (quality) Check 100% Open-ended questions Hyperlinks Evidence (presence)

Validation Plus 18% Evidence (content) Data accuracy

Site Visit 2.5% Reporting boundaries Data quality Evidence for answers Participant Information Tools Aggregated business intelligence into market advances

Annual Scorecard Benchmark Report Portfolio Analysis

Free to all participants GRESB Member benefit GRESB Members only

available ala carte

20 2017 Assessment Objectives

GRESB is dedicated to continue on the route towards investment grade data, as co- developed with PwC in 2014.

• Simplify and consolidate the process

• Increase data quality

• Enforce compliant reporting practices

• Enhance clarity on data validation, scoring and analysis 2017 Timeline Predictable annual cycle

April 1, 2017 GRESB assessment opens until June 1 Deadline for Response Check request June 30 [end of 2Q17] GRESB assessment closes July + August Data validation + analysis September Release Scorecards | Benchmark Reports November + December Assessment review + 2018 updates January 2018 GRESB IT preparation April 1 2018 assessment opens

22 2017 Participant Training North America dates

March 13 – San Francisco: GRESB Participant Training – INTRODUCTION March 13 – San Francisco: GRESB Participant Training – ADVANCED March 15 – New York: GRESB Participant Training – INTRODUCTION March 15 – New York: GRESB Participant Training – ADVANCED March 21 – Toronto: GRESB Participant Training – INTRODUCTION March 21 – Toronto: GRESB Participant Training – ADVANCED New! Public Disclosure Assessment New tool to assess transparency in the listed market

• Complementary feature to the annual Real Estate Assessment

• Overall measure of ESG performance disclosure by listed companies

• Solely based on publicly available information

• Score based on a A to E sliding scale REAL ESTATE INSTITUTIONAL DEVELOPERS INVESTORS

COMMUNICATE

BENCHMARK SCORE ASSESS

PORTFOLIO OWNERS GRESB Participation Participants year-on-year

26 Global Scope 2016 industry coverage

759 Entities | 63 Countries | 66,000 Assets Geographic Distribution

Global response rate

28 Investment Capital [$B] North America Participation Rate United States and Canada :: 2013 to current

AEW Capital Management Heitman Pine Tree Alberta Investment Mgmt Invesco Real Estate Principal Real Estate Investors American Realty Advisors Investa Prologis AMP Capital Investors Avison Young Ivanhoe Cambridge Rockefeller Group Bentall Kennedy Group J.P. Morgan Asset Management RXR Realty BlackRock Jamestown Properties Savanna Funds Blackstone Jonathan Rose Companies Sentinel Real Estate Brookfield KingSett Capital Shorenstein Properties Carr Properties LaSalle Investment Management Standard Life Investments CBRE Global Investors MacFarlane Partners TA Realty CIM Group Clarion Partners Madison Marquette TIAA | Henderson Real Estate Colony Capital, Inc. Manulife / John Hancock Time Equities CommonWealth Partners MetLife Investment Management Tishman Speyer Cornerstone Real Estate Minto Group Triovest DivcoWest Moorfield Investment Management UBS Global Asset Management Exeter Property Group Morgan Stanley USAA Real Estate Federal Capital Partners Federal Realty Trust National Real Estate Advisors LLC Greystar Normandy Real Estate Partners GTIS Partners Ontario Teachers' Pension Plan GWL Realty Advisors Oxford Properties Group Harrison Street PGIM Real Estate

30 2016 Results Scoring and benchmarking ESG performance

31 3.9x The difference in overall GRESB score between the Top 10% and Bottom 10% entities in 2016 Performance Trends GRESB cohort analysis

98 153 152 86 67 60 143 # Participants per cohort GRESB Assessment Private equity funds | separate accounts | private + public REITs | JVs & club deals Regulation

Portfolios

ESG Performance Leaders GRESB Infrastructure Private equity funds | governments | SPE’s

Renewable energy Conventional energy Social infrastructure

Airports Ports Toll roads 35 GRESB Real Estate Debt Private equity debt funds | primary lenders

36 GRESB Green Bond Guidelines Industry-specific sector guidance

• Developed as real estate sector guidance to compliment the Green Bond Principles

• Provides framework for the full spectrum of real estate issuers and investors

• Drawn from GRESB Green Bond Working Group recommendations Property bond originators Underwriters and placement firms Green bond investors

37 GRESB Dan Winters, CRE Head of Americas [email protected] 202.997.3922 – m 202.742.3277 – o GRESB Make 2017 your best GRESB year yet Goby’s DNA

~100 Goby Employees

$5 MM

THE CORPORATE AND COMMERCIAL REAL ESTATE CLOUD & Our Solutions

Invoice Energy Sustainability Automation Management Reporting ```

Green Talk Green Stars

Green Starters Green Walk 2016 Goby Results +35% 50% Top 5 2016 Goby Results

Leading Office Fund Pine Tree Leading Office Fund Cousins Federal Realty Green Star Green Star Green Star Properties Sector leader - Office Sector Leader - 2015 19 KPI Green Star Green Star increased score by 27% Retail 2016 40 KPI 2015 6 KPI 97% increase First time submittal 2016 37 73 points of 100 Tax time! 4/15 Tax time! 4/15

7/1 GRESB time! Time is of the Essence GRESB Timeline

Kickoff Survey review Goby GRESB GRESB Close out + progress report Submission meeting

1/2017 3-4/2017 5/31/2017 6/26-30 9/2017

2/2017 5/15- 19 6/2017 9/2017 KPI KPI Client GRESB Data Review feedback Results

Starting Early is a Game Changer New to GRESB: Benefits

• Benchmark yourself against peer groups • Collect property level data, such as energy, water, and waste over a 2 year period • Take a deeper look into internal policies • Identify risks and opportunities to improve performance New to GRESB: Plan of Action

• GRESB kick-off • Introduce GRESB to properties + Onboard within platform • Gather 24 months of energy, water and waste data from each property • Review GRESB survey questions with executive team • Collect documentation of organizational policies and asset-level plans, projects, improvements • Review Results • Set goals for next year New to GRESB: Goby Best Practices

• Notify properties of GRESB and what’s to come • Gather internal policies • Organize portfolio details • Transparency to stakeholders • Implement technical building assessments Veteran Players: Benefits

• Refine internal policies • Discover goals/areas for improvement • Improve transparency • Improve data collection Veteran Players: Plan of Action

• GRESB kick-off • Onboard new properties • Gather 12 months of data • Collect any new documentation • Review GRESB survey questions with executive team • Submit + review results • Set goals for next year Veteran Players: Goby Best Practices

• Increase data collection methods & monitor performance • Monitor efficiency projects within the portfolio • with intent to submit for Leader in the Light • Pursue low-hanging fruit items Empowering sustainability. Powering profitability. • KPI Data • Continuity • Consulting • All on one platform Can I do this Alone? OR Capture Once, Report Anywhere

Real Estate Infrastructure

Goby data collection Helee Lev, EVP

Email: [email protected] For more info: gobyinc.com Driving Sustainability Progress Across the Portfolio

February 16, 2017

© EnerNOC, Inc. All rights reserved. www.enernoc.com About the speaker

Dan Lake, P.E. Energy Advisor, EnerNOC Email: [email protected] An introduction to EnerNOC

Our solution addresses the three energy cost drivers

How you buy it How much you use When you use it Budgets and Procurement Visibility, Real-Time Data, and Demand Response and Facility Optimization Demand Management GRESB success requires sustainability success Investors expect to see progress

In 2016, the GRESB real estate assessment covered more than ESG Performance 66,000 assets across 63 countries, totaling $2.8 trillion in gross asset value.

As GRESB becomes universal, investors will expect to see GRESB strong results in your GRESB results. Reporting

Investment Decisions

Figures via GRESB Taking energy management to the next level A look at EnerNOC’s work with a real estate investment management services firm

§ Partnered with EnerNOC in 2014

§ Expanding partnership to 20 additional sites after successful 2016

§ Partners with Goby to streamline sustainability reporting Driving energy management success Greatly saving time by providing clear and actionable savings opportunities

Integrate customer energy EnerNOC’s Artificial Presents actionable data Intelligence Engine recommendations to analyzes the data improve efficiency Automatically identifying savings opportunities We are starting with these, but many more will be coming

Weekend Operation Holiday Operation Delay Building Startup

Late Building Shutdown Load Cycling Night Baseload Increase Tracking progress on measures Sort potential measures by projected savings or time to ROI

No accountability Measures went ignored Value left on the table (Add slide with email showing recommended actions, etc.) What makes a measure? How were the energy insights being used?

Insights into measures to EnerNOC analysts provide Some engagement at site improve efficiency provided to site-specific scorecards level, but still missing big building-level engineers opportunities Making operational efficiency a priority Mixed priorities led to unclear expectations

§ Tenant comfort § Equipment maintenance and upkeep § Tenant requests § Annual building activities § Building operations efficiency

Building Engineers What was missing? Visibility, accountability, and incentive to cut energy costs

No clear Time-consuming No clear accountability action items meetings and discussion or transparency Weekly updates on progress to drive accountability Putting actionable information into the hands of the right people Bridging the gap Provide portfolio-level contacts regular updates on efforts at the site level

§ Create customized reports containing relevant metrics for asset managers

§ Push reports to asset managers in automated monthly emails Fostering a culture of energy efficiency Visibility across the enterprise

EnerNOC Both site-level Building engineers Asset managers automatically engineers and asset take action to track progress and identifies savings managers receive implement measures collaborate with site opportunities and notifications with and document contacts on progress surfaces in Project savings projections progress Manager Achieved savings In 2016 and beyond

Prior to new Since new Future approach approach opportunities ~$40k ~$480k ~$180k Dan Lake, P.E., Energy Advisor, EnerNOC Email: [email protected] Learn more: enernoc.com

© EnerNOC, Inc. All rights reserved. www.enernoc.com Q&A