SUSTAINABILITY 2020 REPORT Table of Executive Message 04 GOVERNANCE 06 Company Profile 08 Contents Governance Risk Management 10 Sustainability Commitment 12 Strategic Partnerships 14 Case Study: Pandemic Response 16 2020 ESG Materiality Assessment 18 ENVIRONMENT 20 Performance Goals, Targets & Progress 22 Environmental Management System (EMS) 24 Policies & Guidelines 26 Green Operations 27 Sustainability 28 Environmental Risk & Resilience 32 Case Study: 1 Greenway Plaza 34 Performance Indicators 36 Certified Properties 38 Aligning with the SDGs 40 Industry Recognition 42 Sustainability Timeline 44 SOCIAL ENGAGEMENT 46 STRUCTURE Stakeholder Engagement 48 Tenant & Employee Engagement 50 This report reflects the operations, programs, policies, and sustainability goals of Parkway Properties Houston, LLC (“PKY”) that are implemented by Parkway Property Investments, LLC (“Parkway”) in its capacity as property manager and operator of Tenant & Employee Events 52 PKY’s portfolio, in the context of the three ESG principles: Environmental, Social, and Governance. Case Study: Creating Virtual Community 54 Charitable Events 56 SCOPE Case Study: Friends of Foerster Campaign 58 This 2020 ESG Report reflects operations across PKY’s portfolio of owned assets for the year ending December 31, Education & Outreach 60 2020. To remain consistent with data, we track and report on the U.S. EPA’s ENERGY STAR Portfolio Manager website Sustainability Awards 61 and in the annual GRESB survey. The performance indicators highlighted in this report are based on building count rather than property count and gross square footage rather than leasable square footage. We are currently REPORTING & DISCLOSURE 62 reporting on the performance indicators only for assets that were owned by PKY during the year ending December 31, 2020. Stakeholder engagement activities and public speaking engagements listed in this report occurred between Reporting & Disclosure 64 January 2020 and December 2020. Our stakeholders include our investors, tenants, employees, industry partners, GRI Standards Table 66 and the communities in which we operate. DNV-GL Independent Assurance 68 Executive Message hat a year this has been! Despite the 2020 was an unprecedented year for many challenges we experienced as a result reasons and, while we all continue to deal with of the COVID-19 pandemic, Parkway the impacts of the COVID-19 pandemic, Parkway Property Investments, LLC (“Parkway”) continued remains committed to providing a safe and healthy Wto prioritize our commitment to sustainability for environment for our tenants and employees, and our Houston portfolio. we recognize that executing our sustainability strategy is central to achieving this. We are pleased to report our 2020 sustainability accomplishments, which include the following: As we look to the year ahead, we have set ambitious — sustainability goals for 2021 and beyond and are Earning ISO 14001 Certification for our confident that we will be able to achieve them in Environmental Management System; large part because of our employees’ and executive — team’s continued commitment to doing so. Earning fifth place in the 2020 GRESB Real Estate Assessment and first place in the Resilience Module; A. NONI HOLMES-KIDD — Partnering with Entronix to install real-time CHIEF ADMINISTRATIVE OFFICER energy management software; and AND GENERAL COUNSEL JULY 2021 — Holding over 300 virtual events for our tenants and community. Additionally, we completed several energy-saving projects this year, such as replacing chillers and air handling units, and also focused on further refining and aligning our programs with the U.N. Sustainable Development Goals. Parkway remains committed to providing “ a safe and healthy environment for our “ tenants and employees. PARKWAY GREEN 04 EXecutive Message 2020 SUSTAINABILITY REPORT 05 Our rich history of successful investments is grounded in responsible and ethical governance practices. We pride ourselves on our strong leadership that creates long- term value for our stakeholders as we conduct our business with integrity and accountability. 2020 HIGHLIGHTS + 5th IN GRESB U.S. OFFICE PEER GROUP + 1st IN PEER GROUP ON THE GRESB RESILIENCE MODULE + 40% WOMEN IN PROFESSIONAL POSITIONS Governance + 14001 ISO EMS CERTIFIED IN 2020 Company Profile Sustainability Strategy Parkway has implemented a multi-year ESG strategy to increase asset value and lower operating expenses by completing major energy and water efficiency projects while pursuing LEED certifications. We meticulously measure the success of our sustainability investments through reducing operating expenses, enhancing marketability, improving occupant health and productivity, and minimizing our environmental footprint. ABOUT PARKWAY GOVERNANCE STRATEGY Headquartered in Orlando, Florida, Parkway Property Parkway is governed by a core team of executives: Investments, LLC (“Parkway”) is a privately-owned, — full-service real estate investment firm led by a team Jim Heistand with a strong track record of investing in high-growth Chief Executive Officer, Founding Partner markets across the U.S. and across economic cycles. — Scott Francis Parkway owns, operates, and manages institutional- President, Chief Financial Officer, and Founding Partner quality commercial office assets throughout the — Sunbelt region. In addition, Parkway identifies and M. Jayson Lipsey structures acquisitions and provides best-in-class Chief Investment Officer property and asset management, leasing, accounting, — and construction management services. Parkway Allen C. de Olazarra currently operates and/or provides accounting services Chief Operating Officer for approximately 22.6 million square feet of high-quality — office, industrial, and multifamily properties located in A. Noni Holmes-Kidd attractive submarkets in California, Texas, Georgia, SVP, Chief Administrative Officer, and General Counsel Florida, and Virginia as of April 1, 2021. For more — John Kosciulek information about Parkway, visit www.pky.com. SVP and Chief Accounting Officer 2020 HIGHLIGHTS CUSTOMER VALUE Parkway operates high-performance, sustainable Parkway also engages Verdani Partners as our ESG consultant to provide regular updates on all of + 22.6M SF + 19 buildings and work environments for our clients that contribute directly to their wellbeing and bottom line. our sustainability programs. We work diligently to ensure that our world-class, ACROSS PARKWAY SUBMARKETS CLASS A OFFICE PROPERTIES office settings fit our tenants’ needs and ensure IN HOUSTON productivity and profitability. We remain committed to finding innovative ways to create and deliver value and high-quality customer service. + 9.1M SF + 499 GFA IN HOUSTON TENANTS GOVERNANCE : PARKWAY GREEN 08 CompanY ProFILE 2020 SUSTAINABILITY REPORT 09 Governance Risk 2020 HIGHLIGHTS Management + 27% + 53% WOMEN MINORITIES + 40% + 20% WOMEN IN MINORITIES IN PROFESSIONAL POSITIONS PROFESSIONAL POSITIONS CODE OF BUSINESS require confidentiality, including keeping their CONDUCT AND ETHICS identity anonymous, then this confidentiality will be protected, subject to applicable law, Parkway’s core values and code of business regulation, or legal proceedings. conduct and ethics set the tone for our organization and provide clear guidance for our team members. All employees, officers, and DIVERSITY & INCLUSION directors are expected to apply these principles in their daily job responsibilities. Parkway Our human capital is the most valuable encourages prompt reporting of any illegal or asset we have. As such, we are committed to unethical behavior. fostering, cultivating, and preserving a culture of diversity and inclusion. ANTI-CORRUPTION POLICY Our culture, reputation, and achievement are all tied to the collective sum of the Our anti-corruption policy prohibits staff individual differences, knowledge, innovation, members from accepting or giving any bribes, self-expression, unique capabilities, life kickbacks, or any similar consideration for any experiences and talent that our employees reason whatsoever. invest in their work. We embrace and encourage our employees’ differences and EMPLOYEE RELATIONS strive to create a workplace where all of our employees can succeed and thrive. We firmly believe that all Parkway employees have the right to a respectful and inclusive As of December 31, 2020, Parkway had a total work environment. Employees and officers of 95 Houston employees. who are concerned about possible violations of Parkway’s Code of Conduct or other unethical behavior are encouraged to bring this to the attention of their supervisors, human resources personnel, or Parkway’s General Counsel. The company will not retaliate against anyone who makes good faith reports about suspected improprieties. If their concerns or complaints GOVERNANCE : PARKWAY GREEN 10 Governance RISK Management 2020 SUSTAINABILITY REPORT 11 Sustainability Commitment ENVIRONMENTALE SOCIALS GOVERNANCEG We believe performance is in Healthy and vibrant communities Parkway is committed to the details. We adhere to this are essential for our future. We creating long-term value for by continually finding ways to make our properties better our stakeholders through One of the top 5 improve our operating efficiency places in which to work and implementing responsible and and practices, resulting in grow through responsible ethical business practices. greenest portfolios reduced energy and water management and by engaging We pride ourselves on the in its peer group. use, waste, greenhouse gas