More information on how we are building a more resilient business is available in the Places to Thrive section of our 2025 Responsible Investments Report.
Resilient
Places to Thrive
As we grow as an organization, we remain agile, constantly striving to learn, develop, and adapt our operations within our risk management framework to build resilience. This includes evolving our Responsible Investments strategy to embrace our growth and adapt to new technologies, regulations, and stakeholder demands.
Risk Management
Risks evolve, and we seek to keep pace, face emerging challenges, and manage risks strategically across our investments and operations.
As asset and location risk profiles change, we assess the change in risk impact and severity across markets and geographies. This assessment includes monitoring weather patterns, evaluating probable maximum loss modeling results, complying with regulatory changes, and adapting our risk appetite, all of which serve to identify the current risks monitored by our teams. Our risk management practices also look internally, using robust policies, procedures, and best practices to uphold workers’ rights and keep our operations free from bribery and corruption.
Adhering to Building Performance Standards
Building Performance Standards (BPS) are designed to reduce the carbon impact of the built environment. These outcome-based regulations are responsible for setting energy use- and emissions-reduction targets for existing buildings. Alongside building codes that regulate performance in new construction and renovation projects, BPS provide a structured framework for monitoring the performance of buildings.
We manage our BPS framework through a four-step process of identify, evaluate, plan, and implement, ensuring that our properties have effective risk mitigation strategies in place.
Resilience Risk Assessments
Understanding and preparing for climate-related risk is critical to ensuring safe and sustainable communities. We conduct regular resilience assessments across our portfolio to identify potential vulnerabilities related to physical, social, and transitional climate hazards that have the potential to impact our properties and their occupants.
Responsible Investments Due Diligence for New Acquisitions
We conduct thorough due diligence for every potential acquisition or development project in which we have a direct equity investment. To ensure our evaluations remain comprehensive, we partner with engineering consulting firms that have significant experience in conducting sustainability due diligence.
Using a checklist of key sustainability considerations, assessors evaluate the current condition of buildings and analyze potential climate-related risks. Examples of factors considered include walk, bike, and transit scores, HVAC system characteristics, ENERGY STAR-certified appliances, plumbing fixtures and irrigation systems, and types of light fixtures and lighting controls.
The resulting Due Diligence Checklist provides actionable insights for our teams regarding the necessary conservation measures and capital expenditures required to bring the sustainability performance of the properties up to standard. A summary of our findings is carefully reviewed by our Investment Committee.
