Dream Impact Trust (TSX: MPCT.UN)
View 2023 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 2023 Impact Report.
2023 Key Accomplishments
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$40,000in estimated water utility savings achieved by a leak detection and repair program launched at 262 Jarvis Street in Toronto
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75,014 kWh
of renewable power generated as part of the first renewable power system within Dream Impact’s portfolio(1)
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$2.6 million
funded by the Canada Infrastructure Bank (“CIB”) for decarbonization projects(2)
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376affordable housing units added to portfolio in 2023(3)
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51%
average discount to market rent on affordable units (4)
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~$16 million
in spending awarded to diverse vendors(5)
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Completedinaugural Principles for Responsible Investment (“PRI”) submission and achieved scores above the PRI median in two out of three modules(6)
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Completed
second annual reporting requirements for the Net Zero Asset Managers (“NZAM”) initiative(6)
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Green Star
Awarded for the third consecutive time by GRESB(7)
(1) Data is available from date of acquisition in April 2023 to December 2023.
(2) Based on cumulative draws to date as at December 31, 2023. Reflective of the Residence at Weston LP credit facility at 100%.
(3) At 100% project level. Affordable units are classified in line with certain government program’s affordability definition that each project is governed by.
(4) All figures are at 100% project level, inclusive of Quayside and Dream LeBreton developments. These are forecasted figures and are subject to change. Affordable units are
classified in line with certain government program’s affordability definition that each project is governed by.
(5) Diverse vendors are defined as businesses that are majority-owned or majority-managed by people from equity-seeking groups. MPCT.UN collected this information in coordination with DRM and D.UN – and therefore includes tracked spending by MPCT.UN, DRM and D.UN. Spending is tracked on specific categories that include development projects (Quayside and Dream LeBreton), decarbonization retrofits in office and multi-family buildings, and general operational spending.
(6) DRM completed the submission on behalf of the Dream group of companies, including MPCT.UN.
(7) All intellectual property rights to this data belong exclusively to GRESB B.V. All rights reserved. GRESB B.V. has no liability to any person (including a natural person, corporate or unincorporated body) for any losses, damages, costs, expenses, or other liabilities suffered as a result of any use of or reliance on any of the information which may be attributed to it. Green Stars recognize Real Estate entities with a score higher than 50% of the points allocated to each relevant component.
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 | 2019 Baseline | 2022 | 2023 | YoY% Change | % Change from Baseline |
| Energy | |||||
| Energy Consumption (ekWh) | 21,704,774 | 43,804,755 | 50,782,995 | 16% | 134% |
| Energy Intensity (ekWh/sf)(4) | 26.06 | 21.32 | 20.47 | -4% | -21% |
| Water | |||||
| Water Consumption (m3) | 61,827 | 199,194 | 221,187 | 11% | 258% |
| Water Intensity (m3/sf)(4) | 0.064 | 0.046 | 0.041 | -11% | -36% |
| GHG Emissions(5) | |||||
| Scope 1 GHG Emissions (tCO2e) | 1,211 | 3,906 | 4,221 | 8% | 249% |
| Scope 2 GHG Emissions (tCO2e) | 391 | 569 | 650 | 14% | 66% |
| Total Scope 1 and 2 GHG Emissions (tCO2e) | 1,602 | 4,475 | 4,871 | 9% | 204% |
| Scope 1 and 2 GHG Emissions Intensity (kgCO2e/sf)(4) | 1.92 | 1.58 | 1.29 | -18% | -33% |
| Waste | |||||
| Waste Diverted (tonnes)(6) | 88 | 79 | 126 | 59% | 43% |
| Waste Diversion (%)(4) | 40% | 32% | 30% | -2% | -10% |
| Waste to Landfill (tonnes) | 134 | 167 | 288 | 73% | 115% |
| Total Waste Generated (tonnes)(6) | 222 | 246 | 414 | 68% | 87% |
| Certifications and Ratings | |||||
| Percent of Portfolio with Green Building Certification(6) | see note(7) | 74% | 73% | -1% | – |
| Percent of Eligible Portfolio with an Energy Rating(6)(8) | 93% | 74% | 71% | -3% | -22% |
| Indicator | 2020 | 2021 | 2022 | 2023 |
| Employees(10)(11) | 195 | 215 | 247 | 266 |
| Voluntary turnover rates(12) | 15% | 18% | 19% | 20% |
| Women employees(13) | 49% | 50% | 46% | 48% |
| Women managers(14) | 35% | 41% | 37% | 42% |
| Women executives(15) | 43% | 25% | 50% | 50% |
| Indicator | 2020(16) | 2021(17) | 2022(18) | 2023(19) |
| Women Directors | 50% | 50% | 57% | 63% |
| Independent Directors | 67% | 60% | 71% | 88% |
(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 Gross Leasable Area (“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, MPCT.UN and Canadian DRR.U employees, as well as employees of Dream European Advisors GmbH, Dream Netherlands Advisors B.V., Dream US Manager LLC). Does not include employees employed at Dream recreational properties, employees on leaves of absence (e.g., permanent disability, long-term disability, parental leave) interns and DRR.U employees.
(10) Numbers represented as total headcount, not full-time equivalent.
(11) Includes permanent part-time employees.
(12) Turnover is calculated as a percentage of average employee headcount in noted category.
(13) Based on employees at all levels.
(14) Managers includes Manager level employees and above.
(15) Executives include: the Portfolio Manager and Chief Financial Officer of MPCT.UN.
(16) Board composition as at December 31, 2020.
(17) Board composition as at December 31, 2021.
(18) Board composition as at December 31, 2022.
(19) Board composition as at December 31, 2023.
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.
Decarbonizing 723 Bloor St. West as part of the DRC
723 Bloor Street West is a 16-unit, mid-rise multi-family residential apartment building in Toronto. The building, constructed in 1920, originally had natural gas boilers for space heating and domestic water heating. Deep retrofits planned at the building include electrifying of the heating system by replacing the gas boilers with heat pump technology for the domestic hot water systems, and installation of mini-split heat pump systems in each unit for efficient heating and the provision of cooling for residents. Each suite was also fitted with low flow faucets and shower heads to further drive down energy consumption and resulting emissions.
Advantages of heat pump technologies:
- Highly energy efficient and can produce lower GHG emissions
- Ability to increase the number of thermal zones in the building
- Provides cooling capabilities for residents in the summer months
Include the following estimated saving statistics:
- 55% reduction in energy use intensity(1)
- 77% reduction in GHG emissions(1)
(1) Compared to baseline.
Building Certifications
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73%BOMA BEST certification -
57%LEED certification
(1) The above numbers are based on GLA of assets as at December 31, 2023, including all Canadian office-type properties including co-owned assets at 100% of GLA. Properties may have more than one certification which is why the chart adds up to more than 100%.
Social
Dream Impact’s strong and diverse workforce contributes to the collaborative and innovative work of embedding impact throughout the business. Employees come from a wide range of backgrounds and experiences, bringing many valuable skills and perspectives to the team.
Building Affordable and Attainable Housing
Providing affordable and attainable housing is one of Dream Impact’s three impact verticals. As such Dream Impact is dedicated to the development and integration of market and affordable units with a focus on investing in mixed-income communities that are transit oriented, located close to employment opportunities, and support an overall lower relative cost of living with a high quality of life. Dream Impact provides access to housing for people across all income levels and are proud to have built one of the largest affordable housing portfolios in Canada.
Include the following floating statistics:
- ~6,500 market and affordable housing units(1)
- 1,300+ affordable units(1)(2)
- 50% average discount to market rent at Canary Landing
(1) At 100% project level. Affordable units are classified in line with certain government program’s affordability definition that each project is governed by. Includes forecasted figures from the development pipeline and are subject to change.
(2) In Dream Impact’s portfolio, located in the area shown on the adjacent map.
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.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.
(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 Dream Impact 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(1)
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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
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Highest-level executive with oversight over ESG and impact matters, including sustainability and climate change, at Dream Impact
Works with the Chief Financial Officer to provide leadership over the sustainability strategy and oversee adoption of the
ESG Framework -
ESG Executive Committee (Members of the Executive Leadership team from each Dream entity)
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Receive regular updates from the Sustainability and ESG team on behalf of all departments and the sustainability working groups
Adopt ESG Framework for Dream Impact
Communicate sustainability strategy and commitment across the company and to key external stakeholders
Delegate implementation to Dream Impact’s Sustainability and ESG team
Reports to the Governance, Compensation and Environmental Committee of Dream Impact Master GP Inc
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Sustainability and ESG Team
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Embed sustainability strategy and commitment across the company and with 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 initiatives
Meet 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 leve
Includes three working groups covering the following focus areas: Green Property Operations, Employee Engagement, and Tenant Engagement
Includes representatives from across 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 the project team accountable to achieve goals and create impact
(1) Based on members of the Trust and GP Boards, as at December 31, 2023. 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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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 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, on behalf of the Dream group of companies, became a signatory to the PRI in 2021, and completed the inaugural submission in 2023. -
United Nations Principles for Responsible Investment ↗The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. There are 17 goals in total which provide a shared blueprint to achieve the 2030 goals. The Dream group has identified relevant SDGs throughout its investment strategy and considers how projects may contribute to the achievement of these goals. In particular, the Dream group of companies is dedicated to building safe, resilient, inclusive, and sustainable cities – expressed by Goal 11. -
Taskforce on Climate-related Financial Disclosures ↗In 2021, Dream Unlimited became an official supporter of the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations. To align with TCFD recommendations and enable appropriate oversight, Dream Unlimited 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 Unlimited 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. In 2023, 69% of the Dream group of companies’ total assets under management were committed to be managed in line with net zero by 2050, an increase from 61% in 2022.(1)
（1）Assets under management as of December 31, 2023.
Environmental
Decarbonizing 723 Bloor St. West as part of the DRC
723 Bloor Street West is a 16-unit, mid-rise multi-family residential apartment building in Toronto. The building, constructed in 1920, originally had natural gas boilers for space heating and domestic water heating. Deep retrofits planned at the building include electrifying of the heating system by replacing the gas boilers with heat pump technology for the domestic hot water systems, and installation of mini-split heat pump systems in each unit for efficient heating and the provision of cooling for residents. Each suite was also fitted with low flow faucets and shower heads to further drive down energy consumption and resulting emissions.
Advantages of heat pump technologies:
- Highly energy efficient and can produce lower GHG emissions
- Precise temperature control in each thermal zone to improve occupant comfort
- Ability to increase the number of thermal zones in the building
- Provides cooling capabilities for residents in
the summer months
Environmental
Leak Detection and Prevention at 262 Jarvis
262 Jarvis Street is a 71-unit, mid-rise multi-family residential apartment building. The art deco style building
in downtown Toronto, constructed in 1929, was acquired in 2021 by Dream Impact, Dream Unlimited and Dream Impact Fund.
Water utility system inefficiencies contribute to water scarcity, reduced resource availability, and increased GHG emissions from energy use in water pumps. A 2021 RCCAO (Residential and Civil Construction Alliance of Ontario) study found that leaky pipes cost the average Ontario household nearly a third more on monthly water bills, with CBC reporting that this translates to Toronto losing water equivalent to 15,000 Olympic-sized pools annually.(1)(2)
In 2023, an assessment carried out at 262 Jarvis revealed that the building had higher water consumption and water utility bill costs than a typical building in Dream Impact’s portfolio. To address the high water consumption, Dream Impact installed a non-invasive, wireless water intelligence platform with sensors at the utility meter to identify these inefficiencies, and as a measure to safeguard major leaks. The platform identified unusually high water use in 8 suites at the building in June 2023, caused by leaky faucets, shower heads and toilets.
The leak detection system, along with the subsequent repairs cost Dream Impact less than $5,000, and saved an estimated $40,000 in annual water utility costs. As a result of the success of this project, Dream Impact is currently rolling this technology out to five additional buildings in 2024.
Social
Community Engagement at the Quayside Development Project
Quayside is one of the most exciting development projects in Canada, integrating multiple levels of government and ambitious sustainability and inclusivity targets. This 12-acre site at the east end of downtown Toronto’s waterfront is expected to be a net zero GHG emissions masterplanned community and will also include 3.5 acres of public forested green space, a significant urban farm, and one of Canada’s largest residential mass timber structures.
Before initiating the application process for a city-transforming project like this, Dream Unlimited, as Dream Impact’s asset manager and development partner on Quayside, engages with the public to incorporate community needs and minimize environmental impact. It collaborates with leading urban designers and master community planners to create attractive, community oriented, and environmentally sustainable concepts.
In 2023, stakeholder outreach efforts began to raise awareness and gather feedback on project details, including programming, land use, density, massing and site plan design, and landscape. Meetings were attended by staff from Waterfront Toronto, the City of Toronto, Quayside Impact Limited Partnership and their consultant team. Additionally, the City hosted two Community Consultation meetings in November.
Key tools like the project website and social media accounts were created to educate the public about the development, share updates, and engage them in future phases.
Governance
Incorporating Climate Resiliency into Dream Impact’s Developments
In 2023, the Dream group established a working group which brings together various teams across the entities, including Dream Impact, to standardize an approach to climate risk adaptation and incorporate that approach into existing properties and developments.
Physical climate risks can impact developments by driving up operational costs, repair and maintenance costs and influencing tenant preferences in areas with exposure to certain types of climate perils.
Using a physical climate risk scenario analysis tool, the working group has aggregated asset typespecific climate risks and prioritized them on the basis of likelihood and severity. This information will be used to develop tactical methodologies for reducing the exposure of assets across the Dream Impact portfolio to climate perils identified to be relevant to each asset.
Dream Impact has a strong track record of building communities to last by identifying and preparing for physical climate risks. In Ottawa and Gatineau, while it is typical to design to withstand a 1-in-100-year flood risk, Zibi was designed to withstand a 1-in-1000-year flood risk due to the increased flood risk as a result of climate change. This helped Zibi avoid water damage during the two 100-year floods that occurred between 2016-2019.
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.
* All intellectual property rights to this data belong exclusively to GRESB B.V. All right reserved. GRESB B.V. has no liability to any person (inclusing a natural person, corporate or unincorporated body) for any losses, damages, costs, expenses or other liabilities suffered as a result of any use of or reliance on any of the information which may be attributed to it.