Corporate Responsibility Adding Value Across Our Portfolios

Reduce Consumption, Lower Operating Expenses and Decrease Risk

• Achieve net zero by 2050 for scope 1 and 2 carbon emissions of AEW’s real property asset investments¹

• Committed to reducing the amount of energy, water and waste by 15% over the next ten years (or 1.5% annual reduction)
• Evaluate our real estate portfolios regularly to identify sustainability measures as well as pilot innovative practices to lower operating expenses and increase the efficiency and long-term value of our properties
• Seek opportunities to utilize low carbon and renewable energy sources in an effort to reduce our carbon footprint
• Explore and apply for third-party green building certifications such as LEED, BREEAM, IREM CSP, as well as health and wellness certifications like WELL and Fitwel. Pursue ENERGY STAR certifications for all eligible buildings annually
• Monitor progress at the listed companies in which we invest and integrate the results of engagement into a proprietary ESG risk score which ultimately impacts how we value a stock

¹Scope 1 includes emissions from sources that are owned or controlled by the landlord; Scope 2 includes emissions that are purchased and consumed by the landlord but generated elsewhere

Stakeholder Engagement, Awareness and Communication of Our ESG+R Practices

• Create healthy work environments for AEW’s employees and tenants at our buildings, where possible, that stimulate productivity and promote sustainable communities

• Communicate ESG+R best practices to our property managers, leasing agents and joint venture partners through property management and joint venture agreements, green leases, resources & communication

• Support and encourage supplier responsibilities and sustainable best practices
• Encourage engagement with local communities through building and tenant outreach, as well as volunteerism amongst our managers, tenants and employees
• Enhance disaster response and recovery plans to address potential storm impacts; effectively communicate plans to tenants
• Monitor and improve employee and tenant engagement through the deployment of regular surveys

Transparency and Accountability of Our ESG+R Program

• Identify specific sustainability issues and establish goals for assets under management, as well as firm-wide goals
• Conduct annual portfolio-level assessment of environmental and energy issues and present to AEW’s Risk Management Committee
• Monitor and ensure compliance with government benchmarking requirements and any additional policy or regulatory changes
• Continue to provide and improve training to our employees on governance topics including our Compliance Program and Code of Ethics
• Demonstrate transparency and accountability to our investors through regular disclosure of ESG+R practices and performance in quarterly investor reports and reporting frameworks such as GRESB, PRI and INREV
• For the listed companies we own on behalf of our clients, assess ESG practices and engage with companies in meetings and through proxy voting