EMBEDDING SUSTAINABILITY IN OUR BUSINESS - 2018 Real Estate Sustainability Report - Manulife Real ...
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EMBEDDING SUSTAINABILITY IN OUR BUSINESS 2018 Real Estate Sustainability Report
TABLE OF
CONTENTS
Letter from the CEO............................................................................................................ 4
Sustainability Highlights...................................................................................................... 5
Sustainability Objectives...................................................................................................... 6
Responsible Property Investment......................................................................................... 7
Sustainability Vision and Commitments............................................................................... 8
Sustainable Building Standards............................................................................................ 9
MINIMIZE
MINIMIZE OUR ENVIRONMENTAL
OUR ENVIRONMENTAL IMPACT
FOOTPRINT
Environmental Performance......................................................................................... 10
Green Building Certification........................................................................................ 12
Clean Economy........................................................................................................... 13
SUPPORT
SUPPORT HEALTH
HEALTH AND AND WELLNESS
WELLNESS
Health and Wellness.................................................................................................... 14
ENGAGE
ENGAGE OUROUR STAKEHOLDERS
STAKEHOLDERS
Employee Engagement................................................................................................ 15
Tenant Engagement.................................................................................................... 16
Community Engagement............................................................................................. 17
PROMOTE
PROMOTE RESPONSIBLE
RESPONSIBLE BUSINESS
BUSINESS PRACTICES
PRACTICES
Working with Partners, Suppliers and Industry............................................................. 18
BE ACCOUNTABLE
BE ACCOUNTABLE FOR PERFORMANCE
FOR OUR OUR PERFORMANCE
Sustainability Governance and Reporting..................................................................... 19
About Manulife Real Estate............................................................................................... 20
About this Report............................................................................................................. 21
Important Information...................................................................................................... 23
A LETTER FROM THE CEO
Creating value for We maintain our position among industry
leaders, with all of our funds achieving
our stakeholders for Green Star ranking in the 2017 Global Real
sustainable leadership Estate Sustainability Benchmark (GRESB)
assessment.
At Manulife Real Estate, sustainability in
In 2017, we developed our Sustainable
the form of environmental, social and
Building Standards. This global program
governance (ESG) management is part
advances sustainability practices in thirteen
of our business. Our buildings form a
areas. We renewed environmental targets in
community for tenants, employees, visitors
2017, re-setting our goals for the next five
and local organizations. Sustainability helps
years. We also embedded sustainability into
us deliver high-quality services, create places
employee objectives, leasing and third-party
where people thrive and minimize our
manager contracts. Key sustainability out-
environmental impact. Sustainability also
comes in 2017 included training more than
helps us manage risks and opportunities
200 employees on sustainability, certifying
from changing market and societal trends,
more than 12.5 million square feet to green
technology and regulation. This provides
building standards and reducing energy
value to our fund investors and shareholders.
consumption by 4%.
Effective sustainability management requires
integration in all parts of our business, from In this report, we invite you to learn more
investments and developments to operations about our sustainability management
and asset management. Our program is approach, our 2017 results and how sustain-
overseen by our Executive Sustainability ability provides value to our stakeholders.
Steering Committee, which sets annual
objectives and reports on our progress. Sincerely,
Sustainability is not a new idea at
Manulife. We have a long track record of
sustainability management. For example,
we have measured our energy consumption Kevin Adolphe,
and greenhouse gas emissions since 2005. President and CEO, Manulife Real Estate
4
SUSTAINABILITY
HIGHLIGHTS
2017 PERFORMANCE
HIGHLIGHTS
In 2017, we made progress on our five Sustainable Real Estate Policy commitments.
MINIMIZE OUR ENVIRONMENTAL IMPACT1
9% increase in 7% renewable 6% decrease in
waste diversion electricity purchased water use
Achieved a 52% waste diversion rate in 2017. Purchased 42,000 MWh of renewable energy. 138,000 m3 water savings in 2017.
The equivalent to water needed to fill
55 Olympic-sized swimming pools.
4% decrease 4% decrease in 41.2 million square
in energy use GHG emissions feet certified green
29,000 MWh energy savings in 2017. Reduced greenhouse gas (GHG) emissions An increase of 12.5 M SF in 2017.
The equivalent to the energy used by by 5,500 tCO2e. The equivalent to removing
approximately 1,000 Canadian homes. 1,200 cars off the road.
SUPPORT HEALTH AND WELLNESS PROMOTE RESPONSIBLE BUSINESS PRACTICES
2 Pilots Working Group
Launched two health and Established a renewable energy working group.
wellness certification pilots.
ENGAGE OUR STAKEHOLDERS BE ACCOUNTABLE FOR OUR PERFORMANCE
Published 5 Green Stars
Our inaugural sustainabiliy report. Achieved five GRESB2 Green Star rankings.
200+ Employees Launched
Trained on sustainability. Sustainable Building Standards.
1. Reductions are for a like-for-like set of properties from our global portfolio
2. Global Real Estate Sustainability Benchmark
5
SUSTAINABILITY
OBJECTIVES
2017 PROGRESS
TOWARDS OBJECTIVES
We met or are on track for our 2017
sustainability objectives.
Participation in GRESB for all our Improve GRESB scores for all our funds Provide sustainability training to operations,
funds and the General Account (GA) compared to their 2016 baseline asset management and investments teams
• All funds and the GA participated in • All five received improved scores and • Trained more than 200 employees
the GRESB assessment earned Green Star ranking in sustainability
Include sustainability information- Set five-year targets for energy, water, Integrate sustainability procedures into
sharing clauses in new leases waste and greenhouse gas emissions new third-party manager agreements
• Integrated information sharing clauses • Set 2022 portfolio targets for energy, • Updated third-party management
in our standard lease water, waste and a long-term greenhouse agreements are almost final
gas emissions target
Publish stand-alone real estate
Reduce energy consumption by 2%
sustainability report
• Published our first Real Estate • Achieved a 4% energy reduction in 2017
Sustainability Report
THE WAY FORWARD: Surpass 60% certification Achieve level 1 or higher on
2018 SUSTAINABILITY rate for the global all our Sustainable Building
OBJECTIVES portfolio (GA and funds) Standards at all properties
Our Executive Sustainability Steering Com-
mittee sets annual sustainability objectives, Meet 2% energy and 1.5%
Hire a dedicated
which focus our efforts and outlines key water reduction targets for
sustainability director
milestones in our strategy. Here are our the global portfolio
outlined objectives for 2018.
Develop a business plan for Integrate utility tracking and
tenant health and well-being environmental compliance
and offering clean energy into our central IT system for
to tenants the global portfolio
Implement sustainability
Complete renewable energy
clauses into the standard lease
strategy for a portion of the
Apply for Green Lease global portfolio
Leader designation
Achieve Green Star ranking
for all GRESB submissions
6
RESPONSIBLE
PROPERTY INVESTMENT
DEVELOPMENT INVESTMENTS OPERATIONS ASSET MANAGEMENT LEASING
Real Estate Life Cycle
DEVELOPMENT INVESTMENTS OPERATIONS ASSET MANAGEMENT LEASING
• Integrate sustainability into • Embed sustainability in • Embed sustainability in • Integrate sustainability into • Enhance green leasing practices
development practices investment and due diligence operational procedures budgeting and planning
• Apply third-party practices and standards • Ensure third-party managers
certification standards • Support investment teams • Validate practices with apply sustainability standards
• Partner with sustainability leaders with in-house sustainability third-party certifications • Provide sustainability training
expertise • Collaborate with stakeholders to asset and fund managers
• Provide investment team • Provide sustainability training
training on sustainability to operations and property teams
• Set targets for sustainability
performance
In the real estate life operating efficiencies through technology
and resource efficiency.
estate portfolio since 2005. Manulife Asset
Management, which includes Manulife Real
cycle, sustainability In addition to contributing to prudent risk
Estate, has been a signatory to the Principles
makes business sense management, sustainability creates shared
for Responsible Investment (PRI) since 2015.
We also participate in the Global Real
value for our many stakeholders. It supports
SUSTAINABILITY PROVIDES Estate Sustainability Benchmark (GRESB)
the well-being of our employees, tenants,
VALUE TO OUR STAKEHOLDERS assessment and became a member in 2017.
the communities where we operate and the
At Manulife, we believe that systematically environment. Our customers and investors There are important ESG considerations at
reviewing sustainability factors when we in- recognize that sustainability is important, all stages of the real estate life cycle. Before
vest allows us to manage longer-term risks. and we have committed to being a sustain- we invest, our teams assess sustainability op-
Risks can include new regulations, changing ability leader. portunities and risks. Once we own a build-
tenant expectations, and increasing resource ing, sustainability considerations become
A LONG HISTORY OF
costs. A sustainability overlay allows us to an integral component of operations, asset
SUSTAINABILITY INTEGRATION
get out in front of these to identify new management and leasing. A key function of
revenue opportunities, such as health and We have tracked our energy consumption this report is to show how this happens and
wellness programming, and to increase and greenhouse gas emissions for our real why it is important.
7
SUSTAINABILITY VISION
AND COMMITMENTS
Our Sustainability Vision
Our vision is to drive leadership in sustainable real estate
practices across our global organization. We seek to provide
healthy and efficient workplaces for our customers in
collaboration with our tenants and community partners,
while enhancing our long-term returns.
Real Estate Sustainability Integration Framework
Our sustainability Our Sustainable Real Estate Policy outlines investment practices, we list sustainability
leadership framework, our sustainability commitments and guides
sustainability practices in our organizational
issues that must be considered in investment
due diligence and include checklists to
from vision to reporting processes and property portfolios: ensure nothing is overlooked. Training for
investment team members includes use of
Our vision is to drive leadership in • Minimize our environmental impact
tools and checklists.
sustainable real estate across our global
• Support health and wellness
organization. In collaboration with our We validate practices and performance
tenants and community partners, we seek • Engage our stakeholders through public reporting and industry
to provide healthy and efficient workplaces benchmarking initiatives. These inform our
• Promote responsible business practices
for our customers while enhancing our stakeholders of our sustainability approach
long-term returns. • Be accountable for our performance and results and help advance sustainability
in our industry.
To achieve our vision, we have developed For ease of reference, we have aligned
eight leadership strategies that are addressed the report sections with these policy
in more detail throughout this report. commitments.
One strategy, our Sustainable Building Sustainability Practices include devel-
Standards program, was rolled out in 2017 opments, investments, operations and
and is described in detail on the next page. asset management. For example, under
Sustainability Leadership Strategies
Sustainable building standards Centre of sustainability expertise
Renewed
ESG Leadership
ESG performance management system
Internal and external communications Employee awareness and education
Sustainability
Brand & Culture
Corporate sustainability culture
Health and wellness
Differentiated
Offerings
Clean energy
8
SUSTAINABLE
BUILDING STANDARDS
STANDARDS LEVELS
MINIMIZE OUR ENVIRONMENTAL IMPACT 1 2 3 4 5
1. Energy management and assessments
2. Energy measurement and analysis
3. Water management and assessments
4. Waste management
5. Alternative transportation
SUPPORT HEALTH AND WELLNESS
6. Indoor environmental quality
All properties are committed to
7. Health and wellness programming establishing a Sustainable Building
Standards scorecard baseline in 2018
PROMOTE RESPONSIBLE BUSINESS PRACTICES with a minimum requirement of
achieving level 1 for all standards.
8. Procurement program and tracking
ENGAGE OUR STAKEHOLDERS BUILDING STANDARDS
LEVEL DEFINITIONS
9. Tenant engagement Level 1
Sustainability essentials, achievable
10. Community engagement
for all property types
11. Employee engagement
Level 3
Strong sustainability practices, achievable
BE ACCOUNTABLE FOR OUR PERFORMANCE
for all office and residential properties
12. Certifications and sustainability brand Level 5
Sustainability leadership applicable
13. Sustainability management
to A-class offices
Sustainable Building The thirteen standards align with the where tenants manage their own space.
Standards—key to commitments in our Sustainable Real
Estate Policy, as well as with industry best
Higher levels of tenant engagement (levels
two through four) involve holding events
leadership practices, including GRESB, LEED® and and campaigns, such as e-waste drives, at
BOMA BEST®, to facilitate implementation, the property. Achieving level five requires
In 2017, we rolled out our Sustainable Build-
certification and reporting. forming a tenant-landlord green team to
ing Standards, one of our eight sustainability
work collaboratively to implement initiatives
leadership strategies. These standards apply To achieve a consistent approach across
at the property.
to practices in all areas of sustainability at our portfolio, the standards are being
all properties, from energy management rolled out to all properties including those In 2018, all properties are expected to
to tenant engagement to health and managed by external property managers. achieve at least level one of each standard,
well-being. Their purpose is to: In 2017, we piloted the standards ahead of and properties with strong sustainability
their rollout in November. practices are expected to achieve levels
• Build a consistent sustainability
four or five.
experience for tenants, employees Because sustainability expectations vary
and visitors among property types and regions, each Throughout this report, we provide
standard has five levels. For example, examples of how the Sustainable Building
• Enable benchmarking of sustainability
Tenant Engagement level one involves Standards are used to embed and improve
performance and understanding of
communicating with tenants on sustain- sustainability across our global portfolio.
business outcomes
ability and providing tips to reduce their
• Provide tools and resources environmental footprint. Any property can
for property teams implement this, even industrial buildings
9
ENVIRONMENTAL MINIMIZE OUR ENVIRONMENTAL IMPACT
PERFORMANCE
Focusing on operational 5 Year Environmental Targets (2018 to 2022)
efficiency and technology
is paying off 10% energy reduction by 2022
Buildings consume substantial amounts of
energy and water and the design, construc-
tion, and operation of buildings accounts 7.5% water reduction by 2022
for nearly 40% of greenhouse gas emissions,
globally.1 As building owners and managers,
we minimize our environmental footprint by 65% waste diversion rate by 2022
systematically investing in resource efficiency
and embedding conservation practices Note: energy and water targets are intensity based compared to a 2017 baseline
throughout our operations.
RESOURCE MANAGEMENT AT In 2018, we are implementing a new envi- The rise in regional disclosure requirements
MANULIFE REAL ESTATE ronmental data management system to save is increasing the importance of energy man-
property managers’ time, increase efficiency agement. Two of the Sustainable Building
Resource management is particularly
and improve data quality, so that we receive Standards focus on energy management
important because it reduces operating
actionable information sooner. and measurement and include initiatives
costs, minimizes our environmental foot-
to identify, track and improve energy
print, mitigates utility price increases and ENERGY
performance.
maximizes cost savings for our clients.
The energy footprint of our real estate port-
WATER
Our building operations incorporate sustain- folio is 828,000 equivalent megawatt hours
ability best practices, and our Engineering (eMWh). When normalized for weather and Water conservation is increasingly important
and Technical Services team provides extreme energy users, our annual “like-for- due to rising costs, regulations and lack
expert guidance to support and enhance like” energy reduction was 4%, surpassing of fresh water supply in some regions. In
operational efficiency. our target of 2%. California, for example, access to fresh
water is a material sustainability issue.
Our external utility manager tracks,
2016-2017 Energy Use and Intensity
analyzes and reports on energy, water and We embed water conservation into
waste performance to identify conservation 20.0 19.2 operations and introduce technology to
opportunities and support decision-making. minimize consumption. For example, our
We also work with our tenants to collect 114,000 office property at 3161 Michelson in Irvine,
data and deepen our understanding of California employs an innovative water
building performance. In 2017, we increased reuse system that uses reclaimed grey water
our energy data coverage to 96% for for use in restrooms, irrigation and cooling
properties where Manulife or third-party towers. In 2017, the result was a reduction
managers pay utilities. estimated at nearly 27,000 m3, equivalent
736,000 714,000 to almost half of the building’s total water
In 2017, we set new five-year energy, water
2016 2017 consumption.
and waste targets for our global portfolio. Energy use from properties added to mgmt. system (kWh)
We believe targets encourage asset and Energy use from “like-for-like” portfolio (kWh) 2016-2017 Water Use and Intensity
property managers to manage sustainability Normalized energy use intensity (ekWh/sf/year) 65
61
as a business issue, identify cost-saving
opportunities and help reduce our environ-
Across all managed office buildings, our 549,000
mental footprint.
normalized energy use intensity decreased
Four of the Sustainable Building Standards 4% to 19.2 ekWh per square foot (sf). This
directly target energy, water and waste is lower than both the U.S. and Canadian
management. Meeting low-level standards benchmarks for office buildings (22.8 and
requires basic tenant communication and 25.5 ekWh/sf, respectively).
identification of conservation opportunities. 2,279,000 2,122,000
Through good operational practices and
Higher levels require sub-metering, 2016 2017
investing in innovative technology like
recommissioning and organic and e-waste Water use from properties added to mgmt. system (m3)
advanced metering and diagnostic systems,
recycling streams. Water use from “like-for-like” portfolio (m3)
we are confident that we can deliver on our Normalized water use intensity (L/sf)
1. Source: National Institute of Building Science, 2016. (Brian Theordor, E.I.T)
https://www.wbdg.org/resources/greenhouse-gas-emissions-federal-buildings five-year, 10% energy reduction target.
10In 2017, our total water consumption was This increase in reporting led to an increase 2016, thanks to a fuller, more comprehensive
2,700,000 m3. We increased our water data in total waste accounted for. energy reporting. Comparing our “like-for-
coverage to 92% in 2017. The normalized like” portfolio, we decreased total emissions
In 2017, our “like-for-like” portfolio
water use intensity across all properties by 4%.
decreased waste sent to landfill by 300
decreased 4% to 63 L/sf, lower than the
tonnes. In total, our portfolio’s diversion rate Improving carbon productivity in already
Canadian and U.S. averages of 91 and 81
increased from 44% to 52%. efficient buildings is challenging. We con-
L/sf, respectively. Comparing the weather
tinue to assess new opportunities to drive
normalized “like-for-like” portfolio, we Looking forward, we will continue to
performance, pilot innovative technologies
reduced water consumption 142,000 m3 in monitor waste streams and volumes, provide
and install and purchase renewable energy
2017, enough water to fill 55 Olympic-sized recycling options and encourage tenants
to reduce GHG emissions.
swimming pools. to support and align with our efforts to
encourage recycling and waste reduction.
For many organizations, given that water is
relatively inexpensive, the biggest challenge The Waste Management standard includes
in reducing water consumption is the related initiatives such as waste audits, occupant
return on capital. In 2018, we will assess education and e-waste campaigns.
water use technologies as buildings are
GREENHOUSE GAS EMISSIONS
retrofitted.
Nearly 40% of global GHG emissions are
The Water Management and Assessment
attributed to the design, construction, and
standards include developing a water
operation of buildings.2 That means they
management plan, conducting audits and
also offer substantial reduction potential
implementing sub-metering.
through operational excellence and using
WASTE alternative sources of energy.
Building operations and occupant
2016-2017 Greenhouse Gas Emissions and Intensity
behaviours generate significant amounts CASE STUDY
4.9 4.9
of waste. Many tenants think of our waste
handling practices as an indication of our 2,600 York Mills Centre
sustainability performance. In our most 20,000
21,000
20,600
recommissioning
recent satisfaction survey, tenants ranked
Many of our operations teams are
recycling programs as the most-demanded
achieving significant energy and water
sustainability service. Generating less waste
savings. The team at York Mills Centre,
minimizes costs and limits the impact on
a LEED Gold certified building in
landfills, greenhouse gas emissions and
123,000 116,900 Toronto, manages numerous energy,
other environmental impacts.
2016 waste and tenant initiatives. As part
2017
Accessing accurate waste data, however, Scope 1 emissions from properties added to mgmt. system (tCO2e)
of a $16 million revitalization project,
is a challenge. In some regions, haulers do Scope 2 emissions from properties added to mgmt. system (tCO2e) York Mills Centre embarked on ongoing
not provide waste information and it is hard Scope 1 emissions from “like-for-like” portfolio (tCO2e) recommissioning, as well as HVAC and
to improve performance without access to Scope 2 emissions from “like-for-like” portfolio (tCO2e) boiler improvements. The result has
GHG intensity (kgCO2e/sf)
better data. In 2017, property managers’ been a 25% decrease in energy use
efforts increased collection of accurate and since 2014, with another 19% drop
Manulife Real Estate is committed to
comprehensive data, and our coverage for expected before 2020.
reducing our contribution to climate change
waste reporting rose from 46% to 72%.
by minimizing the GHG emissions from
buildings. These derive mainly from the
2016-2017 Waste/Recycling and Diversion Rate
electricity we use to power buildings and
52% from fuels used to heat spaces and water.
44% Improving energy efficiency is currently the
1,300 most cost-effective way to reduce our GHG
2,100 footprint. To further reduce emissions, we
also purchase renewable energy and pilot
clean technologies. Initiatives we have
4,600 6,600
implemented to advance toward a green,
low-carbon economy are described on
5,900 5,600 page 13.
2016 2017
In 2017, our total GHG footprint was
Recycled waste from properties added to mgmt. system (tonnes)
Waste to landfill from properties added to mgmt. system (tonnes)
161,000 metric tonnes of carbon dioxide
Recycled waste from “like-for-like” portfolio (tonnes) equivalent (tCO2e). This is an increase from
Waste to landfill from “like-for-like” portfolio (tonnes)
2. Source: National Institute of Building Science, 2016. (Brian Theordor, E.I.T)
Waste diversion rate (%) https://www.wbdg.org/resources/greenhouse-gas-emissions-federal-buildings
11GREEN BUILDING CERTIFICATION MINIMIZE OUR ENVIRONMENTAL IMPACT
Green building We will continue to certify buildings through
this program as they meet the relevant level
overall portfolio. We expect more buildings
to be certified through the BOMA BEST® and
certifications validate one Sustainable Building Standards, which LEED® programs. In addition, ENERGY STAR
our practices align with the BOMA BEST® requirements. certification is now available in Canada and
we will consider using it for buildings not
In 2018, we plan to expand the certification
Green building certification is a critical suitable for LEED® or BOMA BEST®.
program to surpass our 2018 objective of
component of our sustainability program,
60% green building certification for the
and the focus of one Sustainable Building
Standard. Certifications assure tenants
Manulife green building certifications as of December 31, 2017
and stakeholders of a minimum building
performance standard. Studies have shown Square feet certified (at least 1 certification) 41.2 M SF*
that certifications not only demonstrate
best-in-class sustainability management, Percentage of global portfolio 60%
but provide economic value through
higher rents, lower vacancy and improved
environmental performance.
14.8 M SF1 26.2 M SF1 10.3 M SF1
LEED® certified BOMA BEST™ certified ENERGY STAR certified
Most large commercial tenants expect *
Totals from different certification standards do not sum as properties with multiple certifications are only counted once
certification. Our certified spaces increase 1
Square footage for certifications based on gross floor area (GFA)
tenant satisfaction and productivity, reduce
facility costs and demonstrate the tenant’s
own sustainability commitment. CASE STUDY
Manulife certifies to many standards, de- Creating sustainable
pending on the market, such as Leadership
in Energy and Environmental Design (LEED®),
places at 707 Fifth Avenue
Building Owners and Managers Association 707 Fifth Avenue is Manulife’s new 27-storey “AAA” LEED
BOMA BEST® and the ENERGY STAR™ Gold certified office tower located in the downtown core
certification program. As of 2017, 60% of of Calgary. The building’s innovative design is not only
our portfolio is green building certified, an beautiful and resource efficient, but provides easier access,
impressive 18% increase from 2016. linking directly to Calgary’s +15 Skyway network and
LRT plaza and offering bicycle parking and change room
In 2017, we began using the BOMA BEST®
facilities. Its indoor, landscaped winter garden provides a
Portfolio Program in our industrial and office
sense of outdoors even on the coldest days of winter.
portfolio. After an initial pilot, we certified
7 million square feet through BOMA BEST®.
12CLEAN ECONOMY MINIMIZE OUR ENVIRONMENTAL IMPACT
Building for a opportunities to install more. We also pur- At many of our properties, we assist
clean economy chase renewable energy credits across North
America to offset our own emissions and
utility companies to manage peak electricity
demand. At 3161 Michelson in Irvine, Cali-
Climate change impacts our business and encourage the development of clean energy. fornia, we installed Powerpack, Tesla’s 1 MW
the communities in which we operate, caus- In 2017, we purchased more than 42,000 energy storage system. We plan to install
ing increases in both costs and regulations. MWh of renewable energy credits, almost similar systems at two buildings in Boston,
Our climate change mitigation efforts help 7% of our total electricity consumption. Massachusetts.
future-proof our portfolio against rising op-
We collaborate with teams across Manulife We continue to support our tenants and
erational costs, regulation, carbon taxation,
that invest in clean energy technology visitors’ efforts to transition towards a clean
flood risks and supply chain disruption.
and development projects on behalf of its economy. Many properties have secure
Manulife Real Estate does this primarily life insurance policy holders. In 2017, we bicycle storage and shower facilities. We
through energy and water efficiency established in our real estate operations a have installed almost 200 electric vehicle
improvements and associated reductions Renewable Energy Working Group to find (EV) charging stations and plan to add more.
in greenhouse gases. In addition, we have opportunities to use more clean power These charging stations not only support a
photovoltaic solar panels on one of our from renewable energy projects that the cleaner economy, they accommodate
building’s rooftop, and continuously look for group finances. tenant expectations.
CASE STUDY
Renewable Energy Working Group
Many companies, including many Manulife tenants, are making major renewable energy
commitments, such as joining RE100, a group of companies pledging to use 100%
renewable electricity. Manulife’s Renewable Energy Working Group was established to
advance clean economy practices and facilitate collaboration among different Manulife
business units. It consists of members from Real Estate, Project Finance and Regional
Power, Manulife’s renewable energy developer.
13HEALTH AND WELLNESS SUPPORT HEALTH AND WELLNESS
An integral part of our We also integrate wellness into new
developments by specifying natural lighting,
company vision indoor climate control, and social or outdoor
spaces in building designs.
As a progressive real estate owner, helping
our tenants live better lives is a key part of INVESTING IN WELLNESS
our sustainability vision and is ingrained in CERTIFICATIONS
our business. North Americans on average
Wellness certifications are an emerging real
spend almost 90% of their time indoors,3
estate trend. They validate property wellness
so the indoor environment and building
features and practices through an inde-
design have major impacts on their health.
pendent standard. Manulife Tower in Hong
PROVIDES TENANT VALUE Kong has applied for WELL® certification and
our corporate real estate teams are piloting
CASE STUDY Wellness is good for everyone’s business.
Fitwel benchmarking and certification at
Maison Manuvie Chronic disease, work-related injuries,
stress and disengagement cost businesses
four of our properties in Canada, the U.S.
and Asia. Lessons learned there will inform
We prioritized health and wellness $2.2 trillion per year in the United States
future standards and programming in our
when we designed our new office in alone.4 Research shows that building
investment portfolios.
Montreal, Quebec. Built to LEED Gold wellness features and programs improve
standards, floor-to-ceiling windows and employee productivity, engagement and WELLNESS MATTERS FOR EMPLOYEES
open floor plans maximize natural light. satisfaction, as well as reducing absenteeism
Manulife is committed to providing em-
Active design promotes the use of stairs and health care costs.
ployee programs and benefits that promote
over escalators. In our office space,
Two of our Sustainable Building Standards physical, emotional, social and financial safe-
adjustable-height desks are standard
focus on health and wellness. The Indoor ty and well-being, as outlined in our Health
and select workstations have treadmills,
Environmental Quality standard addresses and Well-Being in the Workplace Policy. Our
so that employees can walk while they
air and water quality testing and green corporate real estate team manages office
work. On-site bicycle storage, locker
cleaning. The Health and Wellness standard space for our employees worldwide. Our
and shower rooms are available to
focuses on wellness programming and occu- WorkSmart program provides employees
encourage active transportation.
pant communications to encourage healthy with more flexibility through mobile
behaviours like good nutrition, taking the office and remote working arrangements.
3. Source: Lawrence Berkeley National Laboratory (Neil E. Klepeis) 2001, "The stairs and scheduling active work breaks. Wellness features like natural lighting and
National Human Activity Pattern Survey (NHAPS): A Resource for Assessing
Exposure to Environmental Pollutants", https://www.buildinggreen.com/blog/ To achieve level five, we use the Fitwel® adjustable-height desks are included in
we-spend-90-our-time-indoors-says-who
4. Source: Milken Institute, UC-Davis, EU-OSHA, Gallup, 2013, https://www.
certification standard as a benchmark. many WorkSmart fit-outs.
globalwellnesssummit.com/images/stories/gsws2015/pdf/Johnston-Yeung-Well-
nessAtWork.pdf
14EMPLOYEE ENGAGEMENT ENGAGE OUR STAKEHOLDERS
Building a high- environment where employees can bring
their whole selves to work. Our Global Head
posted the Sustainable Real Estate Policy and
every property has nominated at least one
performance team of Diversity and Inclusion oversees diversity Green Champion. Green Champions form
and culture programs, such as our employee resource
groups, and fosters a culture that respects
a community of sustainability leaders who
act as property sustainability experts and
We want to be an employer of choice. and values difference. coordinators.
To attract and retain the best and brightest,
SUSTAINABILITY IS A PART
we focus on professional development,
OF EVERY EMPLOYEE’S JOB
wellness, diversity and inclusion. Providing
an outstanding employee experience Our employees make our sustainability vision
supports exceptional customer service. a reality. Engaging employees on sustain-
ability informs them of our commitments
All Manulife employees benefit from a struc-
and practices, builds a sense of purpose and
tured performance management program,
empowers them to build and share expertise.
including annual reviews, goal-setting and
professional development plans. Manulife In 2017, our co-heads of real estate
provides a suite of learning programs and shared our sustainability vision, policy and
courses to cultivate leadership skills. Topics commitments with our employees globally.
range from effective strategizing, creative All business unit leaders then reached out
thinking and problem-solving to coaching, to employees with guidance and training
building and leading teams. programs specific to their functions.
Every two years we assess employee All Operations and asset management
engagement, and in 2017 the response rate employees, including the Global Head of
CASE STUDY
was 89%. Based on this employee feedback, Asset Management, have a sustainability
senior and regional leaders develop action goal in their personal performance objec- Employee
plans to improve the work environment,
tools and processes.
tives. This embeds sustainability as part of
everyone’s job.
sustainability training
In 2017, more than 200 Manulife Real
As a company, we invest in diversity and Employee Engagement is one of our Sustain-
Estate employees participated in sus-
inclusion. By embracing differences, we can able Building Standards. All properties
tainability training through live webinars
understand our customers better, incorpo- have currently achieved levels one and
on our online training platform. Par-
rate fresh ways of thinking and create an two, which means all Manulife offices have
ticipants enhanced their sustainability
2017 employee engagement statistics knowledge and learned about Manulife
Real Estate’s sustainability vision and
Employees surveyed for engagement 100% commitments, including how and
why we embed sustainability into our
Employees response rate 89%
investments, asset management and
Employees trained on sustainability 203 building operations.
Manulife Real Estate Green Champions 78
15TENANT ENGAGEMENT ENGAGE OUR STAKEHOLDERS
Our world
is making
plastic oceans.
Every minute, the equivalent
of a garbage truck of plastic
is dumped in our oceans.
CASE STUDY
Building strong Chicago
relationships with tenant sustainability fit-out guide. The
updated green standard lease will be rolled Earth Week
our tenants out in 2018. We hope the new lease and
sustainability fairs
fit-out guide make information sharing
We aspire to provide our tenants with best-
and collaboration easier, and result in more Our Chicago office portfolio
in-class services and high-quality, healthy,
efficient buildings and higher occupant showcases leadership in tenant
sustainable work spaces. We continuously
satisfaction. sustainability engagement. Teams
engage with our tenants to ensure high
publish newsletters to inform tenants
customer satisfaction and long-lasting Level one of the Tenant Engagement
of upcoming events and provide tips
relationships. We believe sustainability and standard is communicating sustainability
to improve sustainability. In addition,
the sense of being part of a community are objectives and tips, while intermediate
buildings host green vendor fairs
important to our tenants’ businesses. levels involve hosting sustainability-themed
during Earth Week, which showcase
events and campaigns. Level 5 requires
In our biannual tenant satisfaction surveys, how service providers like cleaners
forming tenant-landlord green teams
we assess our tenants’ attitudes and needs and waste haulers support the sus-
to work together in achieving mutual
related to a sustainable workspace and tainability program, and also educate
sustainability goals. The standard includes a
building, and then create action plans to tenants on environmental issues and
tenant sustainability toolkit, communication
address the results in our operations. In 2016, building sustainability features. Ten-
templates, posters and campaign materials.
we surveyed more than 1,000 tenants from ants have access to electronic waste
This enables properties to participate
almost half of our properties. and used clothing recycling drop-offs.
in events such as Earth Week and hold
Events like this get tenants involved
In 2017, we began to integrate sustainability educational lobby events on topics such as
and build a sense of community at
into our standard lease and revamped our waste management.
the properties.
16COMMUNITY ENGAGEMENT ENGAGE OUR STAKEHOLDERS
CASE STUDY
Supporting bees
We support our We play an important role in local commu- and plants in our
local communities
nities and economies. Our buildings provide
space for community programming and
communities
fundraising for local organizations, and host Honeybees are a vital part of the
Manulife is an active member of the
blood donation drives and farmers’ markets. ecosystem: 88% of plant fertilization
communities where we operate. We support
In 2017, 66% of our office portfolio held at depends on bees. In 2017, Manulife
local charities, community organizations
least one community event. Real Estate partnered with Alvéole,
and non-profits. In 2017, Manulife donated
an urban beekeeping company, and
$43.7 million to community partnerships and Our Community Engagement standard pro-
welcomed two hives at our Toronto
philanthropy. Manulife employee volunteer vides resources to plan and host community
head office and eight hives at four
programs increase our community impact events including communications materials
Montreal properties. Alvéole provides
and provide opportunities for employees to and posters and a planning guide. In 2018,
the hives, bees and beekeeping
give back at work. For example, MatchBoard, we plan to introduce more opportunities for
expertise, while Manulife provides
a joint initiative of Manulife and Capacity our employees and tenants to partner and
funding and a home on our rooftops.
Canada, trains and connects employees support our local communities. We will also
By hosting honeybees, we’re giving
with board-level opportunities at community release a Sustainable Event Guide with tips
them a chance to flourish, and sup-
non-profit organizations. In 2017, Manulife on minimizing the environmental impact of
porting food sources and biodiversity
employees volunteered 80,400 hours events and maximizing their social benefits.
in the communities we serve.
through corporate supported programs.
CASE STUDY
Blood donor clinic partnership
Our partnership with Canadian Blood Services aligns our commitment to community with
our focus on health. In 2017, we strengthened our commitment by becoming an official
Give Life Partner with Canadian Blood Services, which made November its official Manulife
Month. However, our commitment is year-round, and in 2017 our properties hosted more
than 50 blood donation clinics across Canada.
17WORKING WITH PARTNERS, PROMOTE RESPONSIBLE BUSINESS PRACTICES
SUPPLIERS AND INDUSTRY
Promoting sustainable procurement needs, engaging suppliers on
sustainable options, and increasing sustain-
and ethical business able procurement spending and impact.
practices PROMOTING SUSTAINABILITY
IN OUR INDUSTRY
Achieving real impact company-wide
requires cooperation with our suppliers, As a member of and a participant in
business partners and peers. As a signatory the Global Real Estate Sustainability
to the Principles for Responsible Investment Benchmark (GRESB), Manulife Real Estate
(PRI), we are committed to promoting helps to advance sustainability in the real
responsible business practices within our in- estate industry. GRESB advances industry
dustry. We work with suppliers and partners knowledge, spreads best practices and
to manage risks and ensure that Manulife’s promotes leadership.
CASE STUDY
high ethical standards are adhered to.
Although we manage most of the buildings
We also play an active role in regional
industry initiatives. For example, we are part
Employee industry
we own, we contract third-party managers of A Better City, a group of Boston business participation spotlight
at select properties, and incorporate sustain- leaders that collaborate on sustainability.
Stephen Smith, the Regional Managing
ability requirements in to their contracts. In the Toronto region, we participate in the
Director of Manulife’s Western Canada
Race to Reduce, an industry challenge that
We also encourage third-party managers to real estate portfolio, has experience
has collectively reduced energy use by more
adopt our Sustainable Building Standards, in developing corporate sustainability
than 12% in its first four years.
and to date have 49 third-party Green programs and advancing sustainability at
Champions. While some third-party manag- Many of our employees are members of the property level. He uses his experience
ers have internal sustainability programs and sustainability organizations and promote and influence to affect change in the
resources, others benefit significantly from sustainability at events and conferences. commercial real estate industry. He was
our program’s tools and resources. In 2017, the head of our Engineering a member of the working group that
and Technical Services team spoke about developed our Sustainable Building
At level one of our Sustainable Procurement
Manulife Real Estate’s sustainability program Standards, and is Chair of the Canada
standard, all suppliers learn about Manulife’s
at two conferences. Green Building Council board.
Vendor Code of Conduct. At higher levels,
the standard provides guidance on analyzing
18SUSTAINABILITY BE ACCOUNTABLE FOR OUR PERFORMANCE
GOVERNANCE AND REPORTING
Drive continuous Manulife Executive Sustainability
OUR REPORTING VALIDATES
OUR PRACTICES
Steering Committee
improvement through To validate our practices, monitor progress,
sustainability manage- • Asset and Property Management
and support transparency and responsible
ment and transparency • Engineering and Technical Services business practices, we report on our
sustainability management approach and
As a large, global organization with a • Developments performance.
track record of excellence, integrity and
• Corporate Real Estate We report annually to the Global Real Estate
ethical business conduct, Manulife makes
Sustainability Benchmark (GRESB). We use
governance a priority. To learn more about • Leasing GRESB to evaluate our performance, identify
Manulife’s governance practices, visit our
gaps, inform decision-making and communi-
website: http://manulife.com/corporate-gov- • Investments
cate to investors. In 2017, we improved our
ernance.
• Marketing and Communications score and earned Green Star ranking for all
We apply the same high standards to man- five submissions.
aging sustainability. Manulife Real Estate’s • Human Resources
As a signatory to the Principles for Respon-
sustainability governance structure spans • Manulife Corporate Citizenship sible Investment (PRI), we report annually on
our organization and links to corporate
our responsible investment practices.
operations. It addresses both regulatory The Vice-President of Engineering and
obligations and voluntary commitments to Technical Services acts as the Environmental Manulife Real Estate also contributes to
sustainability. Officer for Manulife Real Estate, reporting Manulife corporate reporting, including:
to Manulife’s Enterprise Risk and Global
The Global Head of Real Estate Asset Man- • Manulife’s Public Accountability
Citizenship functions on matters related to
agement chairs our Executive Sustainability Statement
environmental risks and impacts.
Steering Committee, which consists of
• CDP (formerly the Carbon Disclosure
senior real estate representatives from key Our Sustainable Real Estate Policy sets out
Project) reporting
departments and regions. The Committee our commitment to integrate sustainability
oversees progress toward achieving our principles into our processes and property • Dow Jones Sustainability Index reporting
sustainability vision and ensures we meet portfolio across the real estate life cycle,
our commitments and adhere to corporate from development and investment to
policies and practices. operations and asset management.
19ABOUT MANULIFE REAL ESTATE
We own, develop and manage real estate
across the globe on behalf of our clients
and Manulife’s general account
ABOUT MANULIFE ABOUT MANULIFE REAL ESTATE REAL ESTATE
AND JOHN HANCOCK REAL ESTATE PORTFOLIO INFORMATION
Manulife Real Estate is a business unit of
(As of Dec. 31, 2017)
Manulife Financial Corporation (Manulife), At Manulife Real Estate, we manage a port-
a leading international financial services folio of properties across North America and
group that helps people achieve their Asia with more than 62.5 million square feet C$21.9 B
dreams and aspirations by putting of floor space. Our expertise includes real Value of assets under management
customers’ needs first and providing the estate investment and development, asset
right advice and solutions. We operate as
John Hancock in the United States and as
management, property management and
leasing. Our assets include office, industrial,
62.5 M SF
Area in square feet
Manulife elsewhere. We provide financial residential and select retail properties.
advice, insurance, as well as wealth and
asset management solutions for individuals, For more information on our sustainability program, please
visit: https://manuliferealestate.com/social-responsibility
420 Properties
groups and institutions. At the end of 2017, Properties owned, operated and/or managed
we had approximately 34,000 employees,
73,000 agents and thousands of distribution
partners, serving more than 26 million
8 Countries
Including Canada, China, Japan,
customers.
Malaysia, Thailand, United States,
To learn more about Manulife and our commitment to
Vietnam and Singapore
social responsibility, environmental sustainability, and
excellence in business conduct and corporate governance,
visit our website (www.manulife.com) or read our Public
4 Property Types
Accountability Statement. Office, industrial, residential and select retail
20ABOUT THIS REPORT
REPORT SCOPE AND BOUNDARIES
This report details sustainability practices and performance of all real estate
holdings owned or managed by Manulife Real Estate and John Hancock
Real Estate. This includes third-party real estate assets managed by us and
properties that are held in our life insurance investment portfolios. This also
includes properties we manage for investors in our real estate funds and the
Singapore based Manulife US REIT. Our approach to sustainability governance
and management is consistent across all portfolios, and our strategy and
programs apply to all properties we own or manage.
The content of this report was informed by the Global Real Estate Sustainability
Benchmark (GRESB) and references the Global Reporting Initiative Standards
summarized in the table below:
STANDARD (2016) DISCLOSURE CONTENT APPLIED PAGE
102: General Disclosures 102-1: Name of the organization Name of the organization 20
102-2: Activities, brands, products and services Description of the organization’s activities 20
102-3: Location of headquarters Location of the organization’s headquarters 24
102-4: Location of operations Regions in which the organization operates 20
102-7: Scale of organization Total number of employees 20
102-14: Statement from senior decision-maker Statement from the senior decision-maker of the organization 4
102-50: Reporting period Reporting period 22
102-50: Reporting cycle Reporting cycle 22
302: Energy 302-1: Energy consumption within the organization Total energy consumption 10
302-3: Energy intensity Energy intensity 10
303: Water 303-1: Water withdrawal by source Total volume of water withdrawn by source 10 - 11
305: Emissions 305-1: Direct GHG emissions Gross direct GHG emissions (MtCO2e) 11
305-2: Energy indirect GHG emissions Gross location-based energy indirect GHG emissions (MtCO2e) 11
305-4: GHG emissions intensity GHG intensity ratio for organization 11
306: Effluent and Waste 306-2: Waste by type and disposal method Total weight of waste
Indication of disposal method 11
21ABOUT THIS REPORT AND
ITS ALIGNMENT WITH
REPORTING STANDARDS
REPORTING CYCLE REPORTING PERIOD
Annual January 1, 2017 to December 31, 2017
DATA
Data coverage: Data coverage for performance for weather and extraordinary usage in the 2017 Greenhouse gas emissions: Greenhouse gas
data is outlined where it is presented. If no data reporting year. emissions data includes all buildings with available
coverage is noted, data represents all Manulife data. Methodology for determining greenhouse
Average U.S. and Canadian energy intensities
Real Estate and John Hancock Real Estate owned. gas emissions is aligned with the CAN/CSA-ISO
derive from the U.S. Environmental Protection
14064-1-06 and the WRI/WBCSD Greenhouse
Energy: Energy data includes electricity, natural Agency, 2012 and the Real Property Association
Gas Protocol standards.
gas, heating oil and steam consumption for of Canada (REALpac), 2014. Average water inten-
base buildings, common areas and tenanted sities derive from the DC Department of Energy
spaces. Energy use intensity has been adjusted and Environment, 2012 and REALpac, 2012.
DEFINITIONS
BOMA BEST: Building Owners and Managers Canada, Japan, New Zealand, Taiwan and the CI: Commercial Interiors. This rating pro-
Association Building Environmental Standards. European Union have adopted the program. gram is applicable to tenant improvements
This Canadian certification program evaluates of new or existing office space.
ekWh: Equivalent kilowatt hours. This metric is
properties based on energy, water, waste,
the standard unit of energy consumption used to EB: O&M: Existing Buildings: Operations
greenhouse gas emissions, indoor environment
aggregate and compare different energy sources and Maintenance. This rating program
and environmental management systems.
(e.g., natural gas to electricity). evaluates the sustainability of ongoing
CaGBC: The Canada Green Building Council. The operations of existing commercial and
Greenhouse gas emissions: Gases that trap
CaGBC is a national not-for-profit organization institutional buildings.
heat in the atmosphere, raising the average tem-
that has been working since 2002 to advance
perature of the planet. They are produced by fossil L/sf: Litres per square foot
green building and sustainable community
fuel combustion and industrial, agricultural and
development practices in Canada. PRI: The United Nations supported Principles for
waste management processes. They are measured
Responsible Investment. This organization works
CDP: Formerly the Carbon Disclosure Project, the in tonnes of carbon dioxide equivalent (tCO2e),
to understand the investment implications of
CDP is an organization that works to disclose the hence they are also known as carbon emissions.
environmental, social and governance factors and
greenhouse gas emissions of major corporations.
GRESB: Global Real Estate Sustainability to support its international network of investor
CDP’s climate change program collects informa-
Benchmark. This institutional investor-sponsored signatories in incorporating these factors into their
tion on the risks and opportunities of climate and
assessment is the global standard for assessing the investment and ownership decisions.
aims to drive companies to reduce companies’
sustainability performance of real estate compa-
greenhouse gas emissions and mitigate climate Scope 1 emissions: Direct greenhouse gas
nies and funds. In 2017, the assessment had 850
change risk. emissions from activities at company-owned
participants from 62 countries, representing $3.7
properties, including combustion of natural gas
CO2e: Carbon dioxide equivalent. This metric trillion in gross asset value.
in boilers and furnaces, the use of gasoline in
converts different greenhouse gases with different
LEED: Leadership in Energy and Environmental generators and vehicles and refrigerant losses.
global warming impacts into a standard measure
Design. This internationally recognized, third-party
of carbon dioxide so that their impact can be Scope 2 emissions: Greenhouse gas emissions
certification system rates a building’s site, water
compared. It is often displayed in metric tonnes from the generation of electricity, steam and
and energy efficiency, waste management,
(1,000 kilograms) or tCO2e. Greenhouse gas chilled water purchased by the company.
material selection and indoor air quality. There are
emissions intensity is expressed in kgCO2e per
different certification programs: Scope 3 emissions: Greenhouse gas emissions
square foot.
due to company operations from sources not
NC: New Construction. This rating program
ENERGY STAR™: An international standard owned or controlled by the company, e.g., landfill
applies to new construction and major
for energy efficiency. It was created in 1992 waste, water transportation and data centres.
renovations of commercial and institutional
by the U.S. Environmental Protection Agency
buildings. Waste diversion rate: The percentage of total
and the Department of Energy to provide an
waste that is diverted away from landfill disposal
energy performance rating system for commercial CS: Core and Shell. This rating program is
through recycling or composting.
building types. The ratings, on a scale from 1 to a derivative of NC and applies to buildings
100, benchmark the energy efficiency of specific where the owner controls 50% or less of
buildings against similar facilities. Australia, the building area that will be built to NC
requirements.
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