Dream Impact Trust (TSX: MPCT.UN)
View 2022 Dream Group of Companies Sustainability ReportMPCT.UN is committed to the ongoing measurement and reporting of its impact initiatives, targets and outcomes through Dream’s Impact Management Framework. For further information, please see the 2022 Impact Report.
2022 Key Accomplishments
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~2,500affordable units completed or under development(1)
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52%
discount to market rent on affordable units(1)
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~$47 million
annual rent savings for
households in affordable units(1) -
Published Net Zero by 2035 Action Planstrategy to achieve net zero by 2035 for Scope 1, Scope 2 and select Scope 3 emissions
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~$6 billion
in new net zero communities in
development pipeline(2) -
5 retrofit projects
to improve efficiency, reduce
GHG emissions or promote sustainability were completed -
$~7 millionin spending awarded to diverse vendors(3)
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~350 hours
of inclusive community programming through Dream Community Foundation
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Exceeded target
for the value of contracts to be awarded to businesses that are local, independent and/or socially-responsible
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Official supporterof the Task Force on Climate-related Financial Disclosures
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Increased alignment
to the Task Force on Climate-related Financial Disclosures recommendations by integrating responsibility of ESG and impact matters into corporate governance
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Hosted board education sessions
on ESG and climate-related risks and opportunities
(1) All figures are at 100% project level, inclusive of Quayside and LeBreton Flats Library Parcel developments. These are forecasted figures and are subject to change.
(2) Net zero communities in development consist of Zibi, LeBreton Flats Library Parcel and Quayside.
(3) Diverse vendors are defined as businesses that are majority-owned by people from equity seeking groups. MPCT.UN collected this information in coordination with in coordination with D.UN – and therefore tracked spending includes tracked spending by both MPCT.UN and D.UN. Spending is tracked only for focus groups.
ESG Scorecard
The Dream Impact portfolio is comprised of office and multi-family assets. Across the office portfolio, relative to the baseline, intensity reductions have been achieved from efficiency projects for energy, GHG emissions and water metrics. Reduced consumption in 2020 and 2021 can be attributed to COVID-related occupancy reductions. Dream Impact is working on a strategy to meet its waste diversion targets at its office assets.
The portfolio-wide data is influenced by the changing portfolio make up, as Dream Impact has intentionally purchased assets that need improvement and has diversified into the multi-family asset class. Year over year, energy, GHG emissions, water and waste has increased due to the acquisition of multi-family assets and an increase of occupancy across the office portfolio assets.
| Indicator | Target | 2019 baseline | 2021 | 2022 | % Change from Baseline |
| Energy | |||||
| Energy Consumption (ekWh) | 21,704,774 | 25,870,751 | 43,804,755 | 102% | |
| Energy Intensity (ekWh/sf)(4) | 10% reduction by 2025(vs. 2019 baseline) | 26.06 | 18.72 | 21.32 | -18% |
| Water | |||||
| Water Consumption (m3) | 61,827 | 59,916 | 199,194 | 222% | |
| Water Intensity (m3/sf)(4) | 10% reduction by 2025(vs. 2019 baseline) | 0.064 | 0.038 | 0.046 | -28% |
| GHG Emissions(5) | |||||
| Scope 1 Emissions (tCO2e) | 1,211 | 1,774 | 3,906 | 223% | |
| Scope 2 Emissions (tCO2e) | 391 | 389 | 569 | 46% | |
| Total GHG Emissions (Scope 1 and Scope 2 tCO2e) | 1,602 | 2,163 | 4,475 | 179% | |
| GHG Emissions Intensity (kg CO2e/sf)(4) | 20% reduction in carbonintensity by 2025(vs. 2019 baseline) | 1.92 | 1.32 | 1.58 | -18% |
| Waste | |||||
| Waste Diverted (tonnes)(6) | 88 | 54 | 79 | -10% | |
| Waste Diversion (%)(4) | 75% waste diversion by 2025 | 40% | 32% | 32% | 20% |
| Waste to Landfill (tonnes)(6) | 134 | 115 | 167 | 25% | |
| Total Waste Generated (tonnes)(6) | 222 | 169 | 246 | 11% | |
| Certifications and Ratings | |||||
| Percent of Portfolio with Green Building Certification(6) | 100% certification (any program) of all officebuildings by 2025 | see note(7) | 92% | 74% | – |
| Percent of Eligible Portfolio with an Energy Rating(6)(8) | 93% | 97% | 74% | -20% |
| Indicator | 2020 | 2021 | 2022 |
| Employees(9)(10) | 205 | 223 | 251 |
| Voluntary turnover rates(11) | 15% | 18% | 19% |
| Women employees(12)(13) | 49% | 50% | 46% |
| Women managers(14) | 35% | 41% | 37% |
| Women executives(15) | 50% | 50% | 50% |
| Indicator(16) | 2020(17) | 2021(18) | 2022(19) |
| Women Trustees | 50% | 60% | 57% |
| Independent Trustees | 67% | 60% | 71% |
(1) Each year’s energy, GHG, water, waste, building certification and energy rating data is based on the relevant properties owned for the calendar year in that year unless otherwise stated. Floor area square footage is based on (GLA) as of end of reporting year. MPCT.UN assets jointly operated with D.UN (such as Sussex Centre) were included in this assessment at 100% of GLA.
(2) Represents absolute data not like-for-like data. 2019 figures have been updated to reflect enhanced data tracking procedures and changes to calculation methodologies.
(3) Refer to Supplemental Disclosure and Standard Index for more information including sources of emission factors, data coverage, inclusions, and exclusions.
(4) Includes office-type assets with GLA at 100% operational for the full year.
(5) GHG emissions are calculated in accordance with the World Resource Institute Greenhouse Gas Protocol. They capture activities MPCT.UN has direct and indirect operational control over: Scope 1 emissions generated directly from its operations, including heating at MPCT.UN’s properties. Scope 2 emissions indirectly associated with generation of purchased electricity, heating, cooling, and steam consumed by properties.
(6) Represents all office-type assets with GLA at 100%.
(7) Indicators were not tracked in the noted time period.
(8) Represents the percentage of office-type asset portfolio based on sf using ENERGY STAR Portfolio Manager (ESPM).
(9) Includes employees employed by Dream Asset Management Corporation, which includes DRM and MPCT.UN employees, and Canadian DRR.U employees. Does not include employees at recreational properties, employees on leaves of absence (e.g., permanent disability, long-term disability, parental leave), interns, and DRR.U employees of Pauls Corp.
(10) Numbers represented as total headcount; not full time equivalent.
(11) Turnover is calculated as a percentage of employee headcount within the noted category.
(12) Percentages are based on total headcount.
(13) Includes employees at all levels.
(14) Includes managers and above.
(15) Includes the Portfolio Manager and Chief Financial Officer of MPCT.UN.
(16) Based on members of the Trust and GP boards.
(17) Board composition as at December 31, 2020.
(18) Board composition as at December 31, 2021.
(19) Board composition as at December 31, 2022.
Environmental
As an owner and developer of real estate, Dream Impact Trust integrates sustainability into the design, construction, and operations of all its buildings and communities. It is focused on developing and operating its properties to optimize energy use, limit GHG emissions, and reduce water use and waste while also creating resiliency against natural disasters and major climatic events.
Quayside:
Targeting CaGBC Zero Carbon Building Certification
In 2022, Dream Impact, together with Dream Unlimited and a partner were the winning proponent on the highly sought after Quayside redevelopment on Toronto’s waterfront. Quayside is considered one of the most significant projects in Canada, integrating multiple levels of government and ambitious sustainability and inclusivity targets. Dream Impact has a 12.5% ownership interest in this 12-acre waterfront development, that will be operationally net zero.
Upon full build-out, Quayside is expected to include 3.5 acres of public forested green space, a significant urban farm, and Canada’s largest residential mass timber structure as well as:
- 4,000+ units
- 800+ affordable units
- 3.5 acres of public green space
Building Certifications
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74%BOMA BEST certification -
58%LEED certification
(1) Percentages are based on GLA of assets as of December 31st, 2021 including 349 Carlaw, 49 Ontario, 10 Lower Spadina, Sussex Centre (at 100% GLA), 76 Stafford, Weston Common, 262 Jarvis and Zibi Block 2-3 since its acquisition or commencement. It excludes 68-70 Claremont, Plaza Imperial, Plaza Bathurst, 100 Steeles Ave, Robinwood Portfolio and Zibi Block 211 as the assets were not operational or owned during the full calendar year. Properties may have more than one certification which is why they add up to more than 100%.
Social
Our work at Dream Impact Trust is focused on creating positive social change. Our strong and diverse workforce contributes to the collaborative and innovative work of embedding impact throughout the business. Our people come from a wide range of backgrounds and places, bringing many valuable skills and perspectives to our team.
Affordability at Zibi
In 2022, the first rental offering in Zibi’s Affordable Housing Program was completed with the construction of Aalto Suites. Aalto Suites was made possible thanks to financing secured
in 2021 through Canada Mortgage Housing Corporation. 160 units at the 162-unit project are priced at or below 30% of median household income for the Ottawa/Gatineau region. Affordable units are distributed throughout the building, applied across bedroom types, have access to all amenities, and include the same unit quality and finishes as market rent suites. Aalto Suites began leasing to renters in December 2021, and achieved stabilization in 2022, ending the year with 87% occupancy. Zibi has committed that 7% of all residential units will be affordable, and the completion of Aalto Suites is an important step towards this goal.
Zibi is also continuing construction on Block 206, which also has an affordable housing component. Occupancy of Block 206 is expected for October 2023.
Dream Impact Employee Gender Breakdown(1)
(1) Includes employees employed by Dream Asset Management Corporation, which includes DRM and MPCT.UN employees, and Canadian DRR.Uemployees. Does not include employees at recreational properties, employees on leaves of absence (e.g., permanent disability, long-term disability, parental leave), interns, and DRR.U employees of Pauls Corp. Percentages are based on total headcount.
(2) Includes employees at all levels.
(3) Includes Managers and above.
(4) For the purposes of this report, Executives include: the Portfolio Manager and Chief Financial Officer of MPCT.UN.
Governance
Sustainability at MPCT.UN is overseen and managed by DRM, with whom MPCT.UN co-invests on many of its projects.
Sustainability at MPCT.UN is managed by the following:
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Board of Trustees
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The MPCT.UN board discharges such oversight together with the board of directors of Dream Impact Master GP Inc.,which delegates such oversight to its Governance, Compensation and Environmental Committee(2)
Oversee approach to environmental, social, governance and impact investing matters
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Governance, Compensation and Environmental Committee of Dream Impact Master GP Inc.
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Oversee approach to environmental, social, governance and impact investing matters
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Portfolio Manager, MPCT.UN
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Provide oversight of sustainability and ESG for Dream Impact
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ESG Executive Committee (Members of the Executive Leadership team from each Dream entity)
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Adopt ESG Framework for MPCT.UN
Communicate sustainability strategy and commitment across company and key external stakeholders
Delegate implementation to MPCT.UN’s Sustainability and ESG team
Reports to the Governance, Compensation and Environmental Committee of Dream Impact Master GP Inc.
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Head of Impact Investments and Strategy
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Responsible for the execution of MPCT.UN’s impact pathways, which includes delivering specified, measurable outcomes for specific social and environmental goals
Identify opportunities with external stakeholders and community partners to further advance MPCT.UN’s impact initiatives and broader community objectives
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Sustainability and ESG Team
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Embed sustainability strategy and commitment across company and key external stakeholders
Oversee the implementation of the ESG Framework for each Dream entity
Manage portfolio sustainability initiatives including building certifications, energy, water and waste management and
monitoring, as well as strategic initiativesMeet quarterly with the ESG Executive Committee
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Sustainability Working Groups
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Responsible for advancing sustainability initiatives and activities at company and property level
Includes three working groups covering the following focus areas: Green Property Operations, Employee Engagement, and Tenant Engagement
Includes representatives from central functions, regions, and properties
Each group reports regularly to the Sustainability and ESG team
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Investment Committee
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Review each investment’s Acquisition Checklist and approve investments that meet both financial and impact goals
Hold project team accountable to achieve goals and create impact
(1) The responsibilities set out in this column are for illustrative purposes only, reflect certain relevant ESG matters, and do not purport to reflect the full extent of responsibilities or the full mandate of any of the boards, committees or teams referred to in this chart.
(2) Dream Impact Master GP Inc. is the general partner of Dream Impact Master LP. Dream Impact Master GP Inc. oversees the management of Dream Impact Trust’s operating assets, which are held through Dream Impact Master LP.
Disclosure Frameworks
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United Nations Principles for Responsible Investment ↗The United Nations Principles for Responsible Investment (PRI) is the world’s leading responsible investor collaboration. It supports its signatories to incorporate environmental, social and governance (ESG) factors into their investment and ownership decisions. Signatories commit to follow PRI’s six principles and report annually on their progress through the PRI Reporting Framework. Dream Unlimited, with the support from Dream Impact, became a signatory to the PRI in 2021 and will report on its responsible investment activities starting in 2023. -
Taskforce on Climate-related Financial Disclosures ↗In 2021, Dream Impact became an official supporter of the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations. To align with TCFD recommendations and enable appropriate oversight, Dream Impact hosted board education sessions to increase understanding of ESG and climate-related risks and opportunities. To strengthen oversight, responsibility for ESG and impact matters was formally integrated into corporate board governance. Scenario analysis was also completed, which is a corporate strategy and risk/opportunity identification exercise to evaluate how Dream Impact prepares for the implications of climate change and climate-related financial disclosures. -
Net Zero Asset Managers ↗The Net Zero Asset Managers (NZAM) initiative is an alliance of global asset managers committing to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with the global efforts to limit warming to 1.5 degrees Celsius. As one of the first Canadian companies to join the NZAM initiative, Dream Unlimited, on behalf of the Dream group of companies, made its initial target disclosure in 2022. At the time of submission, across the Dream group of companies, 61%(1) of total assets under management was committed to be managed in line with net zero for Scope 1 and Scope 2 emissions by 2035. -
Operating Principles for Impact Management ↗Acting in its capacity as Dream Impact’s asset manager, Dream Unlimited is a signatory to the Operating Principles for Impact Management (the Impact Principles). The Impact Principles provide a framework for investors to ensure that impact considerations are purposefully integrated throughout the investment life cycle and require signatories to undergo independent verification at regular intervals to ensure consistent application across their portfolios.
(1) Assets under management as of June 30, 2022.
Environmental
Flood Mitigation at Zibi
Zibi is a net zero neighborhood development that spans Ottawa and Gatineau, overlooking the Ottawa River. The 34-acre development will be constructed over the next decade in a phased approach. The end result will be a mixed-use community, including eight acres of unique waterfront green spaces.
To date, the site has opened three parks and plazas, built a multi-use pathway, occupied two condos, and completed the
development of one apartment building and three office
buildings, all of which are over 80% occupied. Over the next year, three additional Zibi buildings are expected to be completed.
The Zibi development is in a 50-year flood zone. Physical
climate risk, specifically flood risk are top of mind given Zibi’s location on the shores of the Ottawa River. Flood mitigation measures on the site have been implemented to ensure the development is designed to withstand a 1 in 1,000-year flood.
Investing in flood mitigation provides several benefits to the Zibi community:
- Preserves long-term asset value
- Increases tenant comfort and satisfaction when investing in waterfront real estate
- Reduces business interruptions for retail tenants
Social
Social Procurement at LeBreton Flats Library Parcel
Pursuing social procurement goals has created opportunities
throughout the LeBreton Flats Library Parcel project supply chain to support diversity and inclusion that will extend the boundaries of the community. Over the project lifecycle, Dream Impact is committed to awarding 15% of the overall value of contracts to companies that are at least 50% owned or managed by equity-seeking groups, including at least 5% for Algonquin or Indigenous businesses. Similarly, at least
20% of on-site employment hours will be going to equity-seeking groups with 5% to Algonquin or Indigenous workers.
Social
Tesasini Park, Zibi
Tesasini Park is a planned waterfront park designed in
partnership with the National Capital Commission. It is the
largest of three parks to be built as part of the Zibi development.
Throughout the design process, representatives of the Algonquin Anishinabe communities were consulted to provide input on the park’s design, including the selection of trees, naming of the park, and introduction of cultural and artistic interpretive elements. Tesasini Park is scheduled to open in spring 2023.
In 2022, construction began on Tesasini Park. Due to its location between the shores of the Ottawa River and Zibi, the park’s design incorporated multiple flood mitigation features. The park will feature exposed bedrock shelves where layers of stone slabs will protect the park from erosion when water levels rise. Native plant species will be introduced between the Zibi development and the shoreline to further protect against erosion.
Sustainability Reports
- Previous years +
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Policies
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Declaration of Trust
Dream Impact Trust’s Declaration of Trust governs our operations and includes such topics as investment guidelines and operating policies, financing restrictions, units and distributions, and the responsibilities and obligations of the Trustees.
Disclosure PolicyThe objective of our disclosure policy is to ensure that communications to the investing public about Dream Impact Trust are timely, factual and accurate, and disseminated in accordance with all applicable legal and regulatory requirements. The policy covers topics including trading restrictions and blackout periods, confidentiality, and designated spokespersons. This policy applies to all trustees, directors, officers and employees of Dream Impact Trust and its subsidiaries, including trusts and partnerships in which Dream Impact Trust owns directly or indirectly.
Code of ConductOur Code of Conduct (the “Code) is our statement of the values and principles that guide us in our day-to-day business activities. The keystones are: integrity, respect, fairness, accountability and transparency. The Code supports our commitment to operate our business at the highest level of legal, moral and ethical standards. The Code applies to all directors, trustees, officers and employees of Dream Impact Trust and subsidiaries.
Whistleblower PolicyAt Dream Impact Trust, we are steadfast in our commitment to maintaining the highest business and personal ethical standards by dealing openly and honestly with our investors, tenants, suppliers and employees. With our Whistleblower Policy we marry this commitment to that of securities laws and regulations with respect to accounting standards and internal control standards. We have contracted EthicsPoint Inc., an independent service provider, to manage any complaints or concerns on our behalf. This service reports directly to the Audit Committee of the Trust Board of Dream Impact Trust and is available seven (7) days a week, 365 days a year. Any concerns may be reported directly, confidentially, and, if preferred, anonymously, through www.ethicspoint.com.
Majority Voting PolicyThe Trust has a majority voting policy, requiring that each Trustee nominee receive the support of a majority of the total number of votes cast by the unitholders entitled to elect such Trustee nominee, failing which such Trustee shall submit his or her resignation to the Board for consideration.
Advance Notice RegulationThe Trust has adopted an Advance Notice Regulation intended to: (i) facilitate orderly and efficient annual general or, where the need arises, special, meetings; (ii) ensure that all unitholders receive adequate notice of trustee nominations and sufficient information with respect to all nominees; and (iii) allow unitholders to register an informed vote.
Diversity Inclusion & Advancement CommitmentAs one of Canada’s leading real estate companies, we always invest with purpose, embracing creativity and diversity, passion and innovation, while positively impacting our communities and the world around us.
Board Diversity PolicyEach of Dream Impact Trust and Dream Impact Master GP Inc. seek to maintain a Board comprised of talented and dedicated trustees or directors whose skills and backgrounds reflect the diverse nature of the business environment in which Dream Impact operates. Accordingly, the composition of the Boards is intended to reflect a diverse mix of skills, experience, knowledge and backgrounds, including an appropriate number of women trustees and women directors.
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