2018 GRESB | Siemens Sustainable Real Assets Conference - Washington DC

SUSTAINABLE
REAL ASSETS
CONFERENCES
2018
RESILIENCE

SUSTAINABLE
REAL ASSETS
CONFERENCES
2018
RESILIENCE
LONDON
WASHINGTON
SYDNEY
April 25
May 17
June 26

2009
Assesses the ESG
performance of
property companies,
fund managers and
developers
2015 2016
Assesses the ESG
performance of
infrastructure assets
and portfolios
GRESB Reporting Framework
Annual ESG disclosure for real asset portfolios
Assesses the ESG
performance of real
estate lenders
4

2018 Timeline
Preparation | Submission | Validation | Results
March July SeptemberApril June
March 1
Releases of
Assessments
and Reference
Guides for:
• Real Estate
• Developer
Release of
modules:
• Health &
Well-being
• Resilience
April 1
GRESB Portal
opens for
Assessment
submission
Real Estate
Response Check
period begins
June 8
Real Estate
Response Check
request deadline
June 15
Real Estate
Validation process
begins
July 1
GRESB Real Estate
Assessment
submission
deadline
September 6
Launch of individual
Assessment results
September 11
GRESB Real Estate
market reports
released
5

198
850
Participation Development
Continued growth
6
Real Estate
51 Funds
134 Assets
64 Funds
160 Assets
Infrastructure

The frequency,
size, and cost of
disasters is
increasing due to
climate change,
population
growth, and
urbanization
Why is Resilience important for all of us?
More Risk from Events

8
RESILIENCE
Definition
The capacity of companies or funds to
survive and thrive in the face of stressors
and shocks
Scope
The combination of management practices,
assets and circumstances that create or
mitigate risk.

9
“better access to data will enhance how
climate-related risks are assessed,
priced, and managed”

P R O G R A M
8 : 3 0 R e g i s t r a t i o n &
N e t w o r k i n g
W e l c o m e &
I n t r o d u c t i o n
S e s s i o n 1 : R e s i l i e n c e :
w h a t i s i t a n d w h y i s i t
i m p o r t a n t f o r t h e r e a l
e s t a t e a n d
i n f r a s t r u c t u r e s e c t o r s ?
C o f f e e & N e t w o r k i n g
S e s s i o n 2 : H o w d o e s
r e s i l i e n c e t r a n s l a t e
i n t o o p p o r t u n i t y a n d
r i s k f o r i n v e s t o r s ?
R e s i l i e n c e M a d e
S i m p l e
R e s i l i e n c e & G R E S B
9 : 0 0
9 : 3 0
1 0 : 1 5
1 0 : 4 5
1 1 : 4 5
L u n c h & P o l i c y
L e a d e r s h i p / P r i v a t e
S e c t o r O p p o r t u n i t i e s
N Y - N J T u n n e l p r o j e c t
S e s s i o n 3 : C a s e
s t u d i e s s h o w c a s i n g
r e s i l i e n c e l e a d e r s h i p
C o f f e e & N e t w o r k i n g
S e s s i o n 4 : W h a t a r e
k e y i n n o v a t o r s w o r k i n g
o n r i g h t n o w i n t h e
w o r l d o f r e s i l i e n c e ?
C l o s i n g & K e y
T a k e a w a y s
D r i n k s & N e t w o r k i n g
1 4 : 0 0
1 4 : 2 0
1 6 : 0 5
1 7 : 0 5
1 7 : 2 01 2 : 0 5
1 5 : 5 0
1 2 : 2 5

S E S S I O N 1
Resilience:
what is it
and why is it
impor tant
for the
real estate and
infrastructure
sector s?
E m i l i e M a z z a c u r a t i
F o u n d e r a n d C h i e f
E x e c u t i v e O f f i c e r
F o u r T w e n t y S e v e n
I n t e r v i e w e d b y
J o n a t h a n A . S c h e i n
G l o b a l H e a d o f B u s i n e s s
D e v e l o p m e n t & S V P
I n s t i t u t i o n a l R e a l E s t a t e , I n c

© 2017 Four Twenty Seven – All rights reserved
Building resilience in real asset portfolios
Emilie Mazzacurati, Founder & CEO, Four Twenty Seven
GRESB – May 17, 2018

+
Day of reckoning?
Top 15 cities most exposed
to sea level rise by
population
Source: Climate Central

+

+
Impacts on infrastructure
n Revenues
n Expenditures
n Assets
n Capital expenditures
n Tangible
n Intangible
n Financing

+
Climate change will redistribute wealth

+
And population
19
Hauer, Matthew. Migration induced by sea-level rise could reshape the US population landscape, Nature Climate Change 7, 321–325 (2017)
•doi:10.1038/nclimate3271
© 2018 Four Twenty Seven – All rights reserved.

+
Impacts on city’s economic welfare
Source: Four Twenty Seven, Impacts
of climate change on muni risk
ratings (May 2018)

+
What happens when the climate bubble bursts?

+
The adaptation finance gap

+
Taking action: understand your risks
Exposure to extreme rainfall of real estate portfolio
Source: Four Twenty Seven

+
Taking action: build resilience
Value:
$92M
Residential building, San
Jose, CA
Rating:
Low-Med Risk
Hazards
Real Estate
Sensitivity
Site Risk Adaptive Capacity Signal
Heavy rainfall High High Medium
Coastal Flooding/ SLR
Medium-
High
Medium Medium
Temperature
Increases
Low Low Unknown, building-specific
Recommendations Inquire about on-site drainage

+
Taking action: Invest in community resilience

Emilie Mazzacurati, Founder and Chief Executive Officer – emazzacurati@427mt.com
Tel: 415.420.0074 – www.427mt.com

S E S S I O N 2
How does
resilience
translate into
oppor tunity
and risk for
investor s?
S t e p h e n S c o f i e l d
D i r e c t o r o f F i n a n c i a l I n d u s t r y
S o l u t i o n s , N o r t h A m e r i c a
S o u t h P o l e G r o u p
N i n a J a m e s
G M C o r p o r a t e S u s t a i n a b i l i t y
I n v e s t a O f f i c e M a n a g e m e n t
R a e l M c N a l l y
D i r e c t o r
B l a c k R o c k
A m a n d a W a l l a c e
M a n a g i n g D i r e c t o r I n f r a s t r u c t u r e
I n v e s t m e n t s G r o u p
J . P . M o r g a n A s s e t M a n a g e m e n t

Climate Risk Management & Institutional Investors

Disclosure & Transparency: Investor Initiatives & Legislation
Global Investor Statement on
Climate Change of 350
investors
Portfolio Decarbonization
Coalition with Allianz, AP4,
Amundi and others
UN PRI Montreal Carbon
Pledge with 170+ signatories
(USD 10tn+)
Mandatory investments
transparency laws in France
California, Sweden
The Investor Agenda Accelerate and scale up the
actions that are critical to tackling climate change
and achieving the goals of the Paris Agreement.
Task Force on Climate Disclosure
TCFD
G20, FSB leadership

FOR INSTITUTIONAL/WHOLESALE/PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION
Resilience in Infrastructure Assets
The Preparedness Imperative

STRICTLY PRIVATE | CONFIDENTIAL
37 | FOR INSTITUTIONAL/WHOLESALE/PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION
Resilience Approach
n Review climate change impact in specific regions of
the world – including those where material suppliers
are located
n Identify and assess actual and potential impacts of
climate-related risks and opportunities for the
company/asset and include in strategic and financial
planning
n Review metrics and targets used to assess and
manage relevant climate-related risks and
opportunities
n Build infrastructure assets to a higher engineering
standard
n Take initiative rather than wait to see what happens –
planning, testing, refining
n Focus on those things that can be controlled
n Monitor service reliability immediately before, during
and after extreme weather
n Implement communication programs (employees,
customers, communities, regulators and supply chain)
for immediately before, during and after extreme
weather
n Assess supply chain, including contractors,
sustainability during and after extreme weather
n Conduct after event reviews to surface learnings
n Share best practices across portfolio and with industry
more broadly
Planning Experiencing and Learning
Resilience is about the strength of our assets, how to use that strength during challenging times and
what the assets can do to bounce back

Identifying Stakeholders in Preparing and Maintaining a Resiliency Plan
Employees
Company Operations
Customers
Communications
Supply Chain and Third
Parties
Community
Environmental
Organizations
Government Agencies
Emergency Services
Providing alternate options, choices and
substitutions under shocks and
stressors
Strength or resistance of a company,
asset or system to withstand external
demands without material interruption
Resilience
Capacity to mobilize needed resources
and services in emergencies and
implement a resilience
roadmap/communications system for
stakeholders
Speed at which a disruption can be
overcome
IT and Technology
Identifying risks and creating a plan to prepare for events
related to natural disasters, climate change, population
growth, rapid urbanization and other factors related to
resilience

Renewables Case Study: Preparing for Natural Disasters
Global solar power producer that develops, builds, owns and operates solar power plants
Solar Plants and Resilience
• In September 2017, Hurricane Maria slammed into
Puerto Rico and Hurricane Irma made landfall in Florida
• Operations:
• While damage on Puerto Rico was severe to
homes, businesses and other power producers
(including catastrophic damage to the energy
grid), damage to the company’s 2 solar plants on
the island was minimal (>3% of panels)
• This was due to the company’s high engineering
standards (above 150 year storm event) and the
quality work done by the contractors during the
construction at each site
• Direct result of the company’s ESG-focus
and resilience preparation for weather and
natural disasters
Employees:
• To prepare for the hurricane Irma, the company
pro-actively booked a block of hotel rooms for
employees and their families which provided them
with a safe place to stay with water and electricity
and allowed for employees to get back to work
quickly after the hurricane to help to restore the
power to the community

Distribution Case Study: Stakeholder Communication Through Weather Events
Regulated electricity distribution network providing power to over five million people in
northwest England
Resilience and Effective Customer Communication
Source: Electricity North West materials.
Storm Desmond Communication Recap
• In 2015, Storm Desmond hit northwest UK and caused
widespread damage and disruption to the area (loss of
power to 55,000 people) and caused severe flooding (a
month’s worth of rain fell in just 24 hours, the highest rainfall
ever recorded in the UK)
• The company has invested over $350 million in
upgrading the power systems and underground
electricity cables
• Increased customer and stakeholder communication
to prepare for weather events and provide updates
during and after storms (created Priority Services
Register that customers can sign up for and receive
extra communications)
• In 2017, several storms (including Storm Emma – Beast
from the East) caused disruption in the UK by impacting
power networks due to strong rains and wind
• The company worked through the night to repair
damages and restore power to the majority of
customers through the different storms
• The company communicated to customers before,
during and after the storms about power cuts –
available 24/7

Risk and Disclosures
NOT FOR RETAIL DISTRIBUTION: This communication has been prepared exclusively for institutional/wholesale/professional clients and qualified
investors only as defined by local laws and regulations.
The views contained herein are not to be taken as an advice or a recommendation to buy or sell any investment in any jurisdiction, nor is it a commitment from J.P.
Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any forecasts, figures, opinions or investment
techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without
prior notice. All information presented herein is considered to be accurate at the time of writing, but no warranty of accuracy is given and no liability in respect of any
error or omission is accepted. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in
evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and
accounting implications and determine, together with their own professional advisers, if any investment mentioned herein is believed to be suitable to their personal
goals. Investors should ensure that they obtain all available relevant information before making any investment. It should be noted that investment involves risks, the
value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full
amount invested. Both past performance and yield may not be a reliable guide to future performance.
All case studies are shown for illustrative purposes only and should not be relied upon as advice or interpreted as a recommendation. They are based on current
market conditions that constitute our judgment and are subject to change. Results shown are not meant to be representative of actual investment results. Past
performance is not necessarily indicative of the likely future performance of an investment.
Securities products, if presented in the U.S., are offered by J.P. Morgan Institutional Investments, Inc., member FINRA/SIPC.
J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. This communication is
issued by the following entities: in the United Kingdom by JPMorgan Asset Management (UK) Limited, which is authorized and regulated by the Financial Conduct
Authority; in other European jurisdictions by JPMorgan Asset Management (Europe) S.à r.l.; in Hong Kong by JF Asset Management Limited, or JPMorgan Funds
(Asia) Limited, or JPMorgan Asset Management Real Assets (Asia) Limited; in Singapore by JPMorgan Asset Management (Singapore) Limited (Co. Reg. No.
197601586K), or JPMorgan Asset Management Real Assets (Singapore) Pte Ltd (Co. Reg. No. 201120355E); in Taiwan by JPMorgan Asset Management (Taiwan)
Limited; in Japan by JPMorgan Asset Management (Japan) Limited which is a member of the Investment Trusts Association, Japan, the Japan Investment Advisers
Association, Type II Financial Instruments Firms Association and the Japan Securities Dealers Association and is regulated by the Financial Services Agency
(registration number “Kanto Local Finance Bureau (Financial Instruments Firm) No. 330”); in Australia to wholesale clients only as defined in section 761A and 761G
of the Corporations Act 2001 (Cth) by JPMorgan Asset Management (Australia) Limited (ABN 55143832080) (AFSL 376919); in Brazil by Banco J.P. Morgan S.A.; in
Canada for institutional clients’ use only by JPMorgan Asset Management (Canada) Inc., and in the United States by JPMorgan Distribution Services Inc. and J.P.
Morgan Institutional Investments, Inc., both members of FINRA/SIPC.; and J.P. Morgan Investment Management Inc., which is regulated by the Securities and
Exchange Commission.
Copyright 2018 JPMorgan Chase & Co. All rights reserved

J o s h S a w i s l a k
A I C P , G l o b a l D i r e c t o r o f R e s i l i e n c e
A E C O MResilience
Made Simple

C h r i s P y k e
R e s e a r c h O f f i c e r
U . S . G r e e n B u i l d i n g C o u n c i l
H e a t h e r J o y R o s e n b e r g
F o u n d e r
B u i l d i n g R e s i l i e n c e N e t w o r k
Resilience
& GRESB

49
Motivation for Action
Resilience
1.Investor demand for information about the resilience of
property and infrastructure companies and funds; and
1.On-the-ground action to promote resilience by leading
companies and funds.

50
Losses Today

51
Future Risks

52
Industry Leadership
Risk Assessment Planning & Design Operations

53
Recommendations for Reporting

54
Resilience
Definition and Scope
Definition: The capacity of individuals,
organizations and communities to
survive and thrive in the face of
stressors and shocks
Scope: The combination of
management, assets, circumstances,
and operational practices that create or
mitigate risk.

55
Dimensions of Resilience
Aware. Prepared. Capable.
Employees
Tenants
Community
Partners
Buildings
Infrastructure
Natural systems
Business Processes
Products & Services
Market Position
Financial Capabilities
Physical
SocialEconomic

56
Resilient Organizations
Qualities
• Qualified and empowered leadership
• Integrated, coordinated internal team
• Strong, tested external partnerships
• High level of situational awareness
• Ability to perceive threats and opportunities
• Ability to mitigate, prepare for and adapt to disruptive change
• Ability to respond quickly and effectively
• Ability to learn from experience and improve over time

57
Transparency
GRESB Assessment
2013
2011
2012 2014
2015
2016
2017
GRESB provides transparency for
ESG performance

58
Transparency
GRESB Assessment
2013
2011
2012 2014
2015
2016
2017
What is the capacity of organizations to survive
and thrive in the face of shocks and stressors?

59
Resilience Module
Structure
A supplement for GRESB Real Estate and
Infrastructure with new indicators
addressing:
•Leadership and accountability
•Risk assessment
•Goals and management strategies
•Experience and learning

60
Resilience Module
Industry Challenges/Opportunities
•Absent or fragmented leadership and lines of accountability
•Changing capabilities for hazard assessment
•Confusion between hazard and risk
•Variation in legal perspectives on risk communication
•Untested business strategies
•Reliance on historic climatic data
•Absent or immature systems for evaluation and learning

61
Resilience Module
Development Plan 2018-2020
Year 1 Year 2 Year 3
Raise awareness
Establish an industry
baseline using a global
snapshot of practice and
performance for property
and infrastructure
companies
Raise expectations for
practice and
performance
Establish a global
benchmark for property
and infrastructure
companies
Track changes in
practice and
performance
Align with emerging
industry standards,
guidelines, and rating
systems

62
Resilience Module
Alignment with TCFD Recommendations
Year 1 Year 2 Year 3
Governance
Risk Assessment
Strategy
Governance
Risk Assessment
Strategy
Metrics & Targets
Governance
Risk Assessment
Strategy
Metrics & Targets
Standards &
Certifications

63
Resilience Module
2018 Milestones
April-June: Resilience Module open for participation
July-August: data validation
September-October: release of year 1 results
November-December: review and improvement

Learn more on GRESB.com
Participate in the Resilience Module
Action

L U N C H
Policy
Leader ship/
Private Sector
Oppor tunities
M o d e r a t o r :
M a t t E l l i s
C E O
M e a s u r a b l
D a n C a r o l
S e n i o r A d v i s o r f o r I n f r a s t r u c t u r e
a n d E n e r g y
C a l i f o r n i a G o v e r n o r J e r r y B r o w n
K e v i n J . B u s h
C h i e f R e s i l i e n c e O f f i c e r
W a s h i n g t o n , D . C .
S e t h M i l l e r G a b r i e l
D i r e c t o r
O f f i c e o f P u b l i c P r i v a t e -
P a r t n e r s h i p s ( O P 3 )
D C G o v e r n m e n t

J o h n D . P o r c a r i
P r e s i d e n t o f U S A d v i s o r y S e r v i c e s
W S PNY-NJ
Tunnel
project

THE GATEWAY PROGRAM -
RESILIENCY AND CAPACITY INVESTMENT
May 17, 2018
John D. Porcari, WSP USA
GRESB Sustainable Real Assets Conference

GLOBAL PARTNERS FOR SUSTAINABLE INFRASTRUCTURE
As a GRESB global partner, WSP supports all aspects of the GRESB process, including
compiling sustainability performance data; developing strategy, policy and governance
programs, setting goals and targets; assessing risk and opportunity; engaging
stakeholders and responding to GRESB’s annual assessments.
71

GATEWAY: THE MOST URGENT PROJECT IN AMERICA
• Busiest section of NEC is between Penn Station New York & Newark, NJ (450 trains, 200k trips/day)
constrained by a two-track bottleneck
• North River Tunnel, Portal Bridge & other infrastructure dates to early 1900’s
• PSNY regularly operates at capacity (1,300 train movements daily on 21 tracks)
• Capacity constraints + aging infrastructure = ↑ risk to 10% of U.S. GDP
• Super Storm Sandy accelerated degradation of these assets
72

STRATEGIC INVESTMENTS TO PRESERVE & EXPAND NEC
73

Hudson Tunnel Project
Portal North Bridge Project
PHASE I: ADDRESSING IMMEDIATE NEEDS
74

Portal South Bridge
Secaucus Station Expansion
Bergen Loop
NJ Rail Yard - Site TBD
Penn Station Expansion
Sawtooth Bridge Replacement
PHASE II: BUILDING FOR THE FUTURE
75

• Purpose: Replace century-old swing bridge over
Hackensack River in NJ with new, high-level, fixed span
• Frequent failures of mechanical and electrical systems cause
hours of delay and hundreds of canceled trains
• Project is fully designed & permitted
• Early work underway, funded by $16m TIGER grant +
$4m NJT match
• Financial plan in place:
• Port Authority of NY/NJ pledged $284m to support low-cost
loans
• NJT & Amtrak commitments in place
• Accepted into project development pipeline for FTA Core
Capacity grant program
• Requested entry into engineering phase in November 2017
• Financial plan being amended to support re-rating from FTA
Portal Bridge rotates open for river traffic
Rendering of the new bridge – a high-level fixed span
PORTAL NORTH BRIDGE PROJECT
76

Purpose: Preserve NEC functionality by repairing existing North River Tunnel and
strengthen resiliency by creating redundant capacity for Amtrak & NJ TRANSIT
HUDSON TUNNEL PROJECT
77

• Super Storm Sandy caused a 5-day closure of NEC
• 3.5 million gallons of sea water pumped out of
North River Tunnel
• Salts & chlorides left behind continue to damage
internal components (concrete bench walls, high-
voltage cables and other infrastructure)
• Tunnel is safe but increasingly unreliable; rehab
required ASAP
• Reconstruction requires ~2 years per tube
• Without new tunnel in place, closure would
devastate the regional economy
SUPER STORM SANDY CAUSED SEVERE DAMAGE
78

TUNNEL CLOSURE WOULD CRIPPLE THE REGION
79

• Accelerated environmental review led by FRA/NJT
nearing completion
• Preliminary Engineering led by Amtrak advancing in
support of NEPA
• Financial plan for $12.7 billion project being
amended to support FTA re-rating
• Construction start: 2019 or sooner
HUDSON TUNNEL PROJECT: NO TIME TO WASTE!
80

Preservation and Resiliency
• Replacement of century-old critical
infrastructure
• Preservation of existing NEC service to
Penn Station New York
• Protection from weather-related and man-
made events
Capacity
• Roughly double trans-Hudson capacity
(approx. 48 trains/hr)
• Elimination of two-track bottleneck at
busiest point on Northeast Corridor
• Redundancy for stable operations
THE GATEWAY PROGRAM WILL DELIVER…
81

• Design Flood Elevation of all components will be 5
feet higher than the current Base Flood Elevation
at any given location, based on the latest and best
available FEMA data
• Project elements will be designed to the highest
cost-effective standards
• All elements will be designed to allow for even
further future protection upgrades
• The track bed within the floodplain will feature
flood-resistant design
To avoid, minimize, and mitigate the potential risks of severe storms and flooding
in the future:
HUDSON TUNNEL PROJECT RESILIENCY
82

THANK YOU!
More info/resources at:
nec.amtrak.com
www.gatewayprogram.org
www.hudsontunnelproject.com
83

S E S S I O N 3
Case studies
showcasing
resilience
leader ship
M o d e r a t o r : D a n W i n t e r s
H e a d o f A m e r i c a s
G R E S B
B e n M y e r s
D i r e c t o r o f S u s t a i n a b i l i t y
B o s t o n P r o p e r t i e s
A n n K o s m a l
S t r a t e g i c R i s k M a n a g e m e n t & R e s i l i e n c e
O f f i c e o f F e d e r a l H i g h - P e r f o r m a n c e
B u i l d i n g s , U . S . G e n e r a l S e r v i c e s
A d m i n i s t r a t i o n
L a u r a C r a f t
H e a d o f G l o b a l S u s t a i n a b i l i t y
H e i t m a n
G r e g S i m m o n s
M a n a g i n g D i r e c t o r , E n t e r p r i s e C l i e n t
S o l u t i o n s
S i e m e n s B u i l d i n g T e c h n o l o g i e s
J i l l Z i e g l e r
D i r e c t o r o f S u s t a i n a b i l i t y a n d C o r p o r a t e
R e s p o n s i b i l i t y
F o r e s t C i t y R e a l t y T r u s t

Integrating Resiliency at
the Portfolio Level

• Promote our growth and operations
in a sustainable and responsible
manner
• Focus on the economic, social, and
environmental aspects of our
activities
• Maximize sustainability performance
transparency through the disclosure
of environmental, social and
governance (ESG) data
Sustainability Strategy

Reduce Operating Costs
Protect Asset Value
Grow Socially Responsible Investment

When there’s a
scoreboard,
people play
differently.

Performance Management and Disclosure
Performance Scoring,
Benchmarking and Certification
Real-time Performance
Monitoring
Analysis, Reporting and
Disclosure

ESG Performance Benchmarking
92
• Ranked 41st out of 823 global companies in
2017 (among the top 5% of all participants)
• Achieved highest “Green Star” rating last 6
years and a GRESB 5-Star Rating

GOAL PROGRESS NOTES
32x25 Energy Use Reduction
Reduce energy use intensity, targets a 32%
reduction by 2025. Units are kBtu/SF.
BXP reached 72% of this goal by the end of 2017.
The Company has previously exceeded a 2020 target
and has recorded a 23% energy use intensity reduction
since 2008.
45x25 Greenhouse Gas Reduction
Reduce Scope 1 and Scope 2 greenhouse gas
emissions intensity, targets a 45% reduction by
2025. Units are kgCO2e/SF.
The Company had previously exceeded a 2020 target
and has recorded a 38% greenhouse gas intensity
reduction since 2008.
30x25 Water Use Reduction
Reduce water use intensity, targets a 30%
reduction by 2025. Units are gallons/SF.
The Company had previously exceeded a 2020 target
and has recorded a 26% water use intensity reduction
since 2008.
65x20 Waste Diversion
Increase waste diverted from landfill, targets a
65% diversion rate by 2020. Units are %
diverted.
The Company continues to make progress towards
achieving a waste diversion rate of 65%.
Sustainability Goals
93

Climate Action Leadership
94
38%

Times Square Tower
New York
Atlantic Wharf
Boston
601 Massachusetts Avenue
Washington, DC
888 Boylston Street
Boston
Salesforce Tower
San Francisco

Hurricane Sandy
97
• Record-setting storm surge caused extensive damage
along large portions of New Jersey, New York,
Connecticut, Rhode Island and Massachusetts coastal
zones
• $50 billion in property damage
• In New York City, 51 square miles flooded
• 17% of the city’s total land mass
• $19 billion in property damage
BXP portfolio
• 17 properties, physical damage
• 2 properties, time element loss
• Total Sandy Claim = $557K

Source: NASA/NOAA Satellite Image, Bomb Cyclone, January 4, 2018 98

Preliminary
Flood Vulnerability
Assessment

Resiliency Planning
105
• What are our known exposures to flood risk?
• How may these risks change over time?
• What cost effective measures should we be taking
to improve the resilience of our portfolio?
• How are government entities planning for sea level
rise and how may these efforts impact real estate
companies?

Sea Level Rise Predictions
SLR
Consensus
2050 2070 2100
Low High Low High Low High
BRAG 7 18 16 37 29 89
NPCC 10 20 15 35 22 50
NCA 6 18 8 30 12 48
NRC 11 24 24 45 36 66
NOAA 4 25 6 43 8 79
Average 8 21 14 38 21 66
Design SLR 18” 33” 55”

Washington, DC
107
500 East Street
Capital Gallery
Market Square North

108
Recommendation:
Acquisitions and Development
Integrate climate preparedness consideration into all new development and
acquisition decisions, including:
• Site selection
• Elevation of ground floor above BFE, now and future
• Elevation of critical equipment above BFE, now and future
• Emergency power generation
• Grid resilience and alternative power generation
• Floodable first floors
• Passive survivability

Building Resilience
Greg Simmons | Siemens Building Technologies
usa.siemens.com/ecsRestricted © Siemens Building Technologies 2018

Restricted © Siemens Building Technologies 2018
May 2018Page 2 Greg Simmons / Building Performance & Sustainability
The Enormous Global Impact Of Buildings
40%of all energy
consumed globally
33%of all green-house
gases emissions
25%of all water
consumed globally
Sources: CommScope/IDC Energy Insights, Business Strategy: Global Smart Building Technology Spending 2015-209 Forecast Intel, Smarter Building & Homes With the Internet of Things

Source: Ross, L. Arrow; K., Cialdini; R, Diamond-Smith N.; Diamond, J.; Murphy, C. (2016). The climate change challenge and barriers to the exercise
of foresight intelligence. BioScience, 66(5), 363-370. Schneier, B. (2013). Carry on. Sound advice from Schneier on security: John Willey & Sons
… our ability to perceive and manage risk still
functions in the same way as when humankind
first developed
… when little knowledge about the probabilities
and impact of risk exists (e.g. climate change),
humans are tempted to ignore them

Blue Lake Rancheria
Resiliency Case Study

About Blue Lake Rancheria
• A federally recognized Native American tribe in California
“The Tribal Council is very concerned about the increased
threats—and severe health and economic costs—of
flooding, large storms, and other imminent impacts of
climate change. The Tribe is working to stabilize the
environment, and they’re willing to invest in the work.”
Jana Ganion, Sustainability Director
• The site is rural and geographically isolated. Risks include
seismic events, storms (high winds and flooding), landslides,
and wildfires.
• 100-acre reservation including government offices, a casino, a
hotel, a Red Cross Safety Shelter, and an emergency
operations center.

Three Fundamental Questions
Where are you now?
Requiring good quality of data & 100% honesty
Where do you want to go?
Must be defined as clearly as possible
Are you ready to commit
to become more resilient?
1
2
3

How
Resilient
Are
You?
Exposing Key Vulnerabilities
Grid Constraints1
Regulatory/Voluntary Obligations2 Exposure to Price Volatility 5
Shifting Behaviors3
Obsolete Technology4
Cyber Security 6
Reputation/Business Mission 7

Reliance Required Alignment Across Disparate Resources
A True Partnership
Blue Lake Rancheria, Humboldt State University, PG&E, and
Siemens partnered to support the project. Funding was
provided in part by a $5 million grant from the California
Energy Commission’s Electric Program Investment Charge
A Complex Challenge
• Coordination of diverse energy sources:
‒ 0.5 MW solar PV,
‒ 950 kWh battery storage system,
‒ a biomass fuel cell, and
‒ diesel generators
• Assets need to be optimally managed and
controlled to achieve energy efficiency, cost
savings, and emission goals.
• Operations need to be automated to allow
limited staff to manage the system in event
of a grid outage to ensure energy security
for the on-site emergency shelter.

A Smart And Resilient Energy System
1 MW Diesel
Generator
175 kW
Fuel Cell
+ Biomass
0.5 MW
Solar
~1 MW
Battery
Storage
Siemens
Spectrum
Power
Microgrid
Management
System
Project Benefits
• Provides the ability to “island” for up to 7 days during a
grid outage
• Provides renewable energy generation for up to 40%
of the site’s annual consumption
• Enables participation PG&E’s demand response
program
• Reduces annual electrical consumption from the grid
by at least 680 MWH
• Reduces annual greenhouse gas emissions more than
150 metric tons CO2
• Microgrid powering critical infrastructure will save the
Tribe approximately $200,000 per year
Ø Blue Lake Resiliency - Short Video (42 Seconds)

Did The Blue Lake Rancheria Become More Resilient?
Grid Constraints
Regulatory/Voluntary
Obligations
Price Volatility Cyber Security
Reputation/Business
Mission
• Extra capacity from onsite
generation
• Control of peak loads
• “Islanding” for up to 7 days
• Eliminating 150 tones of CO2
per year
• Use less, pay less
• Earning from Demand Response
• Control of peak loads
• ~$200,000 per year in energy
savings
• White House / US DoE “Climate
Action Champion”
• Appointed to the US DoE Indian
Country Energy and
Infrastructure Working Group
• PG&E “Golden Orb Award”
• US EPA “Program Champion”
• Siemens microgrid management
software offers fully encrypted
and secure communication
• Siemens provides ongoing
security updates, standardized
patch management, and virus
protection
Obsolete Technology
• Identification and management of
critical assets
• Siemens microgrid management
software predicts load and
dynamically manages generation
Shifting Behaviors
• Supports future plans for the
Tribe’s EV fleet

Value Generation Through Resilience
New earning model and cash flow
Improved efficiency
Earnings from demand response
Ownership
Asset Value Increases While Investments are Protected

Key Takeaways
Business continuity risks represent a growing challenge
Resilience is not a necessary evil. Resilience can be a great business model!
Find the right partner/trusted advisor
1
2
3
4
Manage “unrealistic optimism”

Greg Simmons
Managing Director
Siemens Industry, Inc.
Building Technologies Division
Building Performance & Sustainability
Chantilly, Virginia USA
Mobile: +1 571 926 3329
Email: Greg.Simmons@Siemens.com
www.linkedin.com/in/simmonsgreg/
Contact Information
usa.siemens.com/ecs

Appendix

Committed To Carbon-Neutrality By 2030

Integrating
Resilience into
Real Estate
Jill Ziegler, LEED AP BD+C
Forest City Realty Trust
May 17, 2018
METRO 417 | Los Angeles, CA
@ForestCityREIT

124
• About Forest City
• Resilience – Enterprise Risk Management
• Resilience – New Development Case Study
Agenda
NY BY GEHRY | NYC

About Forest City
INVESTOR PRESENTATION | 125
THE NEW YORK TIMES BUILDING | NYC
THE NEW YORK TIMES BUILDING | NYC
VISION
Our vision is to be the creative leader in
realizing the power of place.
MISSION
We create sustainable value by envisioning,
owning, and operating places where people,
businesses, and communities thrive.

Portfolio Composition
Office
30 properties | 80 mil sf
• 17 traditional office
• 13 life sciences
Residential
72 properties | 24,393 units
Development
$191 million under construction
YARDS PARK | Washington, DC

Environmental, Social, Governance (ESG)
Performance
| 127
Green Star 3rd consecutive
year
89th
percentile
overall ESG
performance on Sustainalytics
MSCI
“A”rating for ESG
committed to reduce
GHG emissions
27.5% by 2025
$2.4 million
reduction
in utility spend in 2017
100%
new development pipeline
targeting LEED certification
2017 Equileap Gender Equality
Global Report and Ranking
only U.S. REIT to receive recognition
2020 Women on Boards Winning ‘W’ Company 2017
25% of Directors are women
83% independence
among Board of Directors
Board tenure reduced
to an average of 3.6 years
Board oversight
of ESG
Enterprise risk management
process expanded to account for
environmental & social risks
Forest City develops and manages thriving places that address both
the environmental and social needs of our core markets.
Awards &
Recognition
Environment
Social
Governance

ARRIS | THE YARDS – WASHINGTON, D.C.
Resilience: Enterprise Risk Management (ERM)

129
Enterprise Risk Management: Process
• Standardized approach to identify, describe, and prioritize enterprise risks
across eight different risk areas covering operational, market, strategic,
reputational, and compliance risks
–Resilience is one of the eight
• Eight risk areas are comprised of 25 more specific risk categories, including
ESG topics, such as:
–Diversity & inclusion of thought
–Geographic concentration of assets and associated climate change
risks

Resilience Case Study: Pier 70

San Francisco, CA – A former shipyard on San Francisco's eastern waterfront. The
Forest City master development area of 28 acres is a mixed-use project.
At full build-out (3.2
million sf):
Apartments: 1,000 –
2,000 units
Office: 900,000 – 1.75
million sf
Retail: 360,000 sf
Waterfront parks: 7 acres

132
• Sustainability Plan aligned with EcoDistricts
Protocol
• Guiding Principles:
1. Equity
2. Climate protection
3. Resilience
• Six priority areas:
1. Livability
2. Prosperity
3. Health + Wellness
4. Mobility + Connectivity
5. Ecosystem Stewardship
6. Climate Protection + Resource Efficiency

133
LIVABILITY: Create an inclusive and vibrant community
FOCUS AREA 2.1: Engagement
OBJECTIVES TARGETS STRATEGIES BENEFITS
Facilitate early and
meaningful engagement
that is inclusive and
representative of local
residents
Build capacity, ownership
and leadership to enable
implementation of shared
goals
At least 120 pre-
development community
outreach meetings and
events
At least 10,000 square
feet of indoor civic space
Engage citizens and
relevant stakeholders to
shape development
Provide indoor civic
space
Project better serves the
needs of local stakeholders
Increases social cohesion

134
LIVABILITY: Create an inclusive and vibrant community
FOCUS AREA 2.2: Housing
Create accessible,
affordable, and adaptable
housing for people of all
abilities, incomes, and ages
Ensure that housing is
equitable in terms of quality
of materials and overall
green building practices
At least 1,000 new
housing units
30% affordable housing
at the 28-acre site
50% or more units as
rental at the 28-acre site
100% of housing meets
San Francisco green building
standards
Design and develop a mix
of housing types
Design and develop all
housing units to the same
San Francisco green building
standards
A more diverse
community increases
resilience to social and
economic changes

135
PROSPERITY: Support economic opportunities that build prosperity and accelerate
innovation
FOCUS AREA 3.1: Employment
Generate diverse
employment opportunities
Ensure that economic
development investments
provide direct benefits for
San Francisco residents and
workers through job
creation and workforce
development
At least 1,000,000 square
feet of commercial-office and at
least 200,000 square feet of
retail, arts, and light industrial
space at full build-out
Up to 10,000 permanent jobs
Up to 11,000 construction
jobs
At least 30% local workforce
for construction jobs
At least 10% of contract
values awarded to Local
Business Enterprises
Provide a variety of
commercial spaces to generate
diverse employment
opportunities
Provide market spaces for
local vendors
Hire locally
Connect new Pier 70
residents and existing residents
in surrounding neighborhoods
to on-site job opportunities
Explore connecting
commercial tenants to local job
training programs
A more diverse
community increases
resilience to social and
economic changes
Increases local spending
and tax base

136
CLIMATE PROTECTION+RESOURCE EFFICIENCY: Work towards net positive energy,
water & waste
FOCUS AREA 7.3: Climate Resilience
Design the site to be
resilient to a changing
climate, including higher
temperatures and sea level
rise
At least 12% reduction in
hardscape surfaces from
current condition
All of the Project is
functional even by 2100
projected sea level rise +
coastal storm
Mitigate the urban heat
island effect by
incorporating green and cool
roofs, light colored
pavements, and
urban greening
Manage sea level rise
risks by elevating buildings
and the Bay Trail
Design the shoreline to
accommodate sea level rise
and storm events
Increases safety and
comfort of residents,
workers, and visitors
Improves access to the
shoreline even as sea level
rises
Reduces risk of flood
damage

138
CLIMATE PROTECTION+RESOURCE EFFICIENCY: Work towards net positive energy,
water & waste
FOCUS AREA 7.4: Water efficiency
Reduce potable water
demand by reusing treated
greywater and/or
wastewater and through
water efficient building
design
40% less potable water
consumed in fixtures and
cooling systems compared
to baseline standards
100% of non-potable
demands met through
alternative water resources,
consistent with local health
code
Use water efficient
fixtures and appliances
Prioritize native and
drought-resistant plants
Install on-site alternative
water treatment and reuse
system
Explore strategies to
maximize collection and
reuse of rainwater
Increases the project’s
resilience to drought
Reduces impact on aging
water infrastructure
Creates/enhances habitat
with native species
Lower water bills

Thank You
Jill Ziegler, LEED AP BD+C
Forest City Realty Trust
www.forestcity.net
@ForestCityREIT

S E S S I O N 4
Tech and tools
for resilience
M o d e r a t o r : C h r i s P y k e
R e s e a r c h O f f i c e r
U . S . G r e e n B u i l d i n g C o u n c i l
E l e n a A l s c h u l e r
D i r e c t o r
R e a l E s t a t e S t r a t e g y , V i e w I n c .
B r i a n A s p a r r o
C h i e f C o m m e r c i a l O f f i c e r
E n e r N O C
J a m i e S t a t t e r
P E E R
U S G B C
H e a t h e r J o y R o s e n b e r g
F o u n d e r
B u i l d i n g R e s i l i e n c e N e t w o r k
M a t t E l l i s
C E O
M e a s u r a b l

glass sold
4M+
SQFT
95%
Overall
occupant
delight
View Dynamic Glass in 25 million square feet of building space
Headquarters | R&D
Milpitas, California
Manufacturing
Olive Branch, Mississippi
• Founded 2007
• Product Launched 2012
• Employees 700+
• Funding $700M+
• Patents 600+
200+
more in
progress
400+
projects
installed
Select Investors

View Dynamic Glass saves ~10% of energy use compared to Low E
144
8%
14%
12%
8%
8%
0
2000
4000
6000
8000
10000
12000
14000
16000
Atlanta Miami Phoenix New York San Francisco
kWh
Low E View
View Dynamic Glass also enables up to 24% HVAC downsizing
*Assumed Low E with SHGC =0.38 and Tvis = 0.7 (PPG Solarban 60)

Two 250,000 SF buildings with 90,000 SF glass
Keep the
building
comfortable
using power
equivalent to
45 lightbulbs
View Dynamic Glass uses less than 0.001% of total building energy

Higher productivity
2%
Reduced eyestrain
63%
Fewer Headaches
Less drowsiness
56%
Less drowsiness
Research conducted by Professor Alan Hedge of Cornell University; scientific study of 313 people from seven different locations in North
America, who worked in offices with traditional windows or offices with self-tinting “smart” windows from View Dynamic Glass.
51%
56%
Human health & wellbeing is a core aspect of resiliency.
Occupants in buildings with View have:

Case Study in Resilience:
A First-of-its-Kind Microgrid
in New York City
5/17/2018 1

30/05/2018 2
The Enel Group Worldwide
Overview
§ Second largest global
utility by revenue
§ More than 50 years of
experience
§ No. 20 on Fortune’s
‘Change the World List’
§ CEO Francesco Starace
appointed to Board of
Directors of United
Nations Global Compact
World Class Resources
§ More than 63,000
employees operating in
31 countries
§ Net installed capacity of
more than 82 GW in
electricity and gas
§ Global leadership in
renewables with 36 GW
in consolidated capacity

The Enel X Vision
Enel’s 2017 acquisitions form the basis of Enel X
§ Innovative energy storage
and microgrid projects
§ Optimization of Distributed
Energy Resources
§ Worldwide leader in
demand response
§ Strategic commercial &
industrial energy
management provider
§ Market-leading smart EV
charging hardware
§ Optimization of EV
charging for load balancing
and sustainability

Project details
§ 625-unit residential complex located in
Brooklyn, NY
§ New York City’s first-ever solar+storage
microgrid in an affordable housing
development
§ First lithium-ion battery system approved
for use in a multi-family building in
New York City
§ BQDM requirements mandate that the
site can self-consume all power it creates,
without exporting to the grid
30/05/2018 Presentation footer 10PT. Please add the relevant country to the footer. 4
Overview of the property
Marcus Garvey Village Microgrid Project

Microgrid combines:
§ 400 kW solar PV
§ 400 kW fuel cell
§ 300 kW/1,200 KWh energy storage
Deployment needs:
§ Self-sufficient power supply during outages
§ Con Ed’s BQDM program
§ NYISO demand response
Automated deployment of DERs for maximum resilience and economic value
Marcus Garvey Village Microgrid Project

How we progressed from concept to value
Project Lifecycle
Planning
&
Permitting
Financing
&
Installation
Deployment
&
Optimization
Analysis
&
Expansion

Four Key Aspects of a Microgid
Site-level
Resilience
Local Grid
Reliability
Sustainability
Goals
Return on
Investment
Self-sufficient
power supply
in the event of
grid outages
Participation in
grid-level stability
programs
Reduce
reliance on
fossil fuels for
resilience
Maximize cost
reduction,
incentive
payments
Seamlessly deploying microgrid assets to capture multiple value streams
“This installation is an
important part of a
portfolio-wide effort to
use renewable energy
to enhance property
sustainability and
residents’ quality of life
in line with our double
bottom line approach
to development.”
—Josh Weisstuch,
Project Manager at L+M
Development Partners

Building Resilience Network
Heather Joy Rosenberg

Fundamentals of
Building Resilience
• Leadership Training

Resilience Relies on ESG
Data.
Technology improves ESG transparency and accuracy.
Here’s how.

#1 Sustainability Software
More than 27,000 properties representing in
excess of 5.3 billion square feet across 70
countries use Measurabl — more than any
other software of its kind.
27Kproperties
5.3Bsquare feet
70countries
$1.2T
AUM

Resilience. On-Demand.
Just like your building operations, resilience
must be measured to be managed. Tracking
actual asset-level performance is the key.
3
ESG data your
organization needs.
Build portfolio-wide resilience by
understanding its strengths and
weaknesses. Capital markets will
reward or punish you otherwise.
Establish Objectives
Why does your organization care about
resilience? Understand the motives and goals
before you act.
Monitor Performance
Create a baseline of current operations to
better understand where you need to improve.
Implement & Improve
Pilot new initiatives, iterate, then scale to
continually advance your portfolio’s resilience.

Data. Mastered.
Collect all data related to portfolio operations,
then identify areas to make your portfolio
more resilient.
4
Take charge
of your portfolio data.
Capture energy, water, and waste utility
data down to the meter-level, quality
assure it using data science, then push
it to external benchmarking
organizations for a complete data chain
of custody.
Collect Data
Utility data, certifications, projects, financial
performance… A wide variety of ESG data is
needed to best quantify resilience.
Integrate Widely
Spend less time collecting data and more time
improving. Choose software that integrates
with other data providers.
Analyze Continuously
Slice and dice your portfolio down to the
meter, then utilize your analyses to make
measurable improvements.

Investment. Grade.
Control your entire ESG data chain of custody
for auditable, investment grade reporting and
a competitive edge.
5
Quality and credibility
your investors trust.
From “meter to market” - Investment
Grade data is the next level increasingly
expected by capital markets.
Credible Reporting
Garbage in, garbage out. Peer relative
performance is meaningless if investors don’t
trust the reported data.
Totally Transparent
Provide data at the asset level backed up by
individual meter readings and other
documentation.
Capital Markets Accepted
Secure preferred cost of capital and premium
underwriting and diligence results using
Investment Grade ESG data.

Matt Ellis
CEO & Founder
matt@measurabl.com

P A R T N E R S
E V E N T P A R T N E R S :
G L O B A L M E D I A P A R T N E R S :
S P O N S O R S :
H O S T :

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