Environmental, Social and Governance
“Sustainability is not just a competitive edge or an optional business strategy—it’s a collective obligation.”
At Shorenstein, sustainability means enhancing investment performance, operational resilience, and business governance for the benefit of the company’s properties, tenants, employees, investors, and communities. We embrace sustainability as an opportunity to improve our business practices and create value while also reducing our impact on the environment and strengthening the communities in which we operate.
Shorenstein strives to be an industry leader in sustainability practices, and in 2008 formed a “Green Committee” with a strong commitment to energy conservation and responsible environmental practices. We aim to employ operational best practices by setting annual goals and measuring our performance through national and international benchmarks such as LEED, ENERGY STAR, Green Lease Leaders, the US Department of Energy Better Buildings Challenge, and GRESB. We believe these efforts have added value to our portfolio, including through reduced operating expenses and increased tenant satisfaction.
Our investment approach aims to incorporate the consideration of sustainability and other environmental, social, and corporate governance (“ESG”) matters in its investment activities. We strive to be responsible investors by integrating ESG considerations into investment management processes and ownership practices where appropriate and consistent with our fiduciary duties, with the belief that these factors can have a positive impact on financial performance. Shorenstein recognizes that material ESG risks could affect performance of portfolio investments, and, furthermore, that the effective management of ESG issues may contribute positively to returns through alignment of interests of Shorenstein investors, the general partner, joint venture partners, employees, and other key stakeholders.
ANNUAL ESG REPORT
PROPERTY HIGHLIGHTS & CASE STUDIES
ESG HIGHLIGHTS
BUILDING CERTIFICATIONS & RATINGS
| Total LEED Certified | Total ENERGY STAR Benchmarked | Total 2023 ENERGY STAR Certified | Total Health and Well-being Rated |
|---|---|---|---|
|
Total LEED Certified
Number of Properties: 33 Square Feet: 12.6 million |
Total ENERGY STAR Benchmarked
Number of Properties: 64 Square Feet: 17.6 million |
Total 2023 ENERGY STAR Certified
Number of Properties: 32 Square Feet: 12.3 million |
Total Health and Well-being Rated
Number of Properties: 24 Square Feet: 13 million |
RENEWABLES STATS
| Off-Site Renewable Energy | On-Site Renewable Energy |
|---|---|
|
Off-Site Renewable Energy
Number of Properties: 13 Total % of Electricity Consumption Met with Renewables in 2023: 23% |
On-Site Renewable Energy
Number of Sites: 4* *3 out of the 4 sites are in-design |
EV CHARGING STATS
| EV Charging Stats |
|---|
|
EV Charging Stats
Number of Properties: 42 Square Feet: 10 million |
- Our 2023 Utility Data was third-party assured by Sustainable Investment Group on June 12, 2024.
- The difference in buildings that were benchmarked but not certified represents buildings that do not meet the occupancy minimum for ENERGY STAR at this time.
- Our water consumption in 2020 through 2023 was disproportionately impacted by decreased occupancy during and since the COVID-19 pandemic.
Performance Indicators
Year-end 2023 Performance
energy
29%
From 2018 Baseline
energy
2023 Intensity: 12.7 kWh/sf
Total Energy Consumption: 215,800 MWh
water
40%
From 2018 Baseline
water
2023 Intensity: 7.0 US gal/sf
Total Water Consumption: 123,000 kgal
waste
31%
Diversion from Landfill
waste
Recycling Rate: 24%
Composting Rate: 7%
carbon emissions
-19%
From 2018 Baseline
carbon emissions
Scope 1: 5,000 MTCO2e
Scope 2: 54,400 MTCO2e
Total Emissions: 59,400 MTCO2e*
*Reflects Scopes 1 and 2 location-based total emissions, as reported in GRESB.
BUILDING PARTNERSHIPS, CERTIFICATIONS, & INITIATIVES
GRESB
The ESG benchmark for real estate assets, GRESB works in collaboration with the industry to define the global standard for sustainability performance in assets and providing standardized and validated ESG data. We have been participating in the GRESB Real Estate Assessment on an annual basis since 2014.
GREEN LEASE LEADERS
Shorenstein has been involved with the Institute for Market Transformation and the Green Lease Leaders program since 2019. Green Lease Leaders sets the standard for what constitutes a Green Lease and recognizes building owners who are effectively using the lease to drive high performance buildings and energy efficiency in commercial buildings. Shorenstein has maintained its Gold level designation since our inaugural participation and renewed this status in 2023.
LEED
The Leadership in Energy and Environmental Design rating system is an internationally recognized green building certification developed by the U.S. Green Building Council (USGBC) and administered by Green Business Certification, Inc. Shorenstein is a Platinum member of USGBC. We require that all Shorenstein existing buildings and development projects pursue LEED certification where feasible. During 2023, our portfolio included 33 LEED Operations and Maintenance (O+M) certified assets totaling over 12.6 million square feet.
ENERGY STAR CERTIFICATION
The ENERGY STAR platform dynamically scores each building on a percentile scale, measuring its energy performance compared to a nationally representative statistical model. In 2023, 32 properties in our portfolio were ENERGY STAR Certified, totaling 12.3 million square feet.
Better buildings
Better Buildings is an initiative of the U.S. Department of Energy (DOE) designed to improve the lives of the American people by driving leadership in energy innovation. Through Better Buildings, DOE partners with leaders in the public and private sectors to make the nation’s homes, commercial buildings, and industrial plants more energy-efficient by accelerating investment and sharing successful best practices. At Shorenstein, we’re honored to be involved with many Better Building programs, including:
- Better Buildings Challenge
- Low Carbon Pilot
- Water Savings Network
- Waste Reduction Network
UN PRI
Participating as a signatory to the United Nations Principles for Responsible Investing (UN PRI) in 2023, our inaugural reporting year, marked a significant milestone for Shorenstein and reflects a recognition that our responsibility extends beyond our investors to society and the planet.
As a UN PRI signatory, Shorenstein pledges to adhere to its six core principles, which include incorporating ESG considerations into investment decision-making and ownership practices, seeking appropriate ESG disclosure, and promoting the principles in our industry. We plan to align our operation with these principles and strive to promote responsible business practices within the real estate sector.