Dream Industrial Real Estate Investment Trust (TSX: DIR.UN) (“Dream Industrial”, or “DIR.UN”) owns, manages and operates a global portfolio of well-located, diversified industrial properties comprising 327 assets totaling approximately 71.4 million square feet (“sf”) of high quality distribution and urban logistics assets in key markets across Canada, Europe, and the United States.

Dream Industrial’s goal is to deliver strong total returns to its unitholders through secure cash flows underpinned by its high-quality portfolio and an investment grade balance sheet as well as driving growth in its net asset value and cash flow per unit.

2023 Highlights

  • Environmental Icon
    3.6 million sf

    of completed green building certifications, an increase of 123% in GLA compared to 2022

  • Environmental Icon
    3.7 MW

    of renewable energy capacity added by completing 3 solar projects in the Netherlands and 1 solar project in Alberta

  • Environmental Icon
    $1.4 million

    generated in revenue from renewable energy production

  • Government Icon
    Completed

    inaugural Principles for Responsible Investment (“PRI”) submission and achieved scores above the PRI median in two out of three modules(1)

  • Government Icon
    Completed

    second annual reporting requirements for the Net Zero Asset Managers (“NZAM”) initiative(1)

  • Government Icon
    Launched Climate Resiliency Working Group

    to standardize an asset-level approach to climate risk adaptation

  • Social Icon
    2.5 million

    in green leases executed

  • Social Icon
    $69,000

    in charitable donations

(1) DRM completed the submission on behalf of the Dream group of companies, including DIR.UN.

ESG Scorecard

Indicator 2019 Baseline 2022 2023 YoY% Change % Change from Baseline
Energy
Energy Consumption (ekWh)(2) 39,877,285 38,945,824 36,852,772 -5% -8%
Annual MWh of Renewable Energy Produce (MWh)(3) 2,507 12,077 22,859 89% 812%
Cumulative On-site Solar PV System Capacity (kW)(3) 2,433 19,489 25,685 32% 956%
Cumulative Percentage of Total Floor Area with On-site Renewable Energy Generation (%)(3) 4% 12% 16% 4% 12%
Water
Water Consumption (m³)(2) 284,744 218,444 340,773 56% 20%
Annual Water Savings from Climate-controlled Irrigation (litres)(4) 15,667,000 10,467,000 18,107,000 73% 16%
GHG Emissions(2)(5)
Scope 1 GHG Emissions (tCO2e) 4,435 3,544 2,338 -34% -47%
Scope 2 GHG Emissions (tCO2e) 5,020 3,386 5,438 61% 8%
Total Scope 1 and 2 GHG Emissions (tCO2e) 9,455 6,930 7777 12% -18%
Other Indicators
Cumulative GLA with LED Lighting Upgrades (sf)(6) 11,320,546 14,690,768 30%
Cumulative GLA of Portfolio with Green Building Certifications (sf) 472,123 1,601,582 5,175,305 223% 996%
Percentage of Eligible Portfolio GLA with an Energy Rating(7) see note 46% 62% 16%
Percentage of Portfolio GLA with Sustainable Roofs (%)(8) see note 23% 23% 0%
Number of Electric Vehicle (“EV”) Charging Stations(9) see note 136 258 90%

(1) Excludes co-owned properties in the US Portfolio and Dream Summit JV. Please refer to Supplemental Disclosures for more detail including data coverage and sources of emission factors.
(2) Excludes data from assets in the European portfolio.
(3) Includes estimations, third-party and tenant-owned systems on DIR.UN’s properties.
(4) Data is collected from 46 buildings in Calgary.
(5) GHG emissions are calculated in accordance with the World Resource Institute Greenhouse Gas Protocol. Calculations in this table capture activities DIR.UN has direct and indirect operational control over: Scope 1 emissions generated directly from its operations, including heating properties; Scope 2 emissions indirectly associated with generation of purchased electricity.
(6) Historic numbers have been updated to exclude T5 lighting and US Portfolio GLA to stay consistent with future reporting.
(7) Represents 100% of GLA of properties in ENERGY STAR Portfolio Manager or that have an EPC rating. Changes in years are due to acquisitions and dispositions of assets.
(8) Sustainable roofs include cool roofs and green roofs with vegetation.
(9) Includes EV chargers owned or installed by tenants or third parties.
(10) Includes only employees 100% dedicated to DIR.UN (including Dream Industrial Europe Advisors Coöperatieve UA, Dream Industrial Netherlands Property Management B.V., Dream France Advisors SAS, Dream Summit Industrial Management Corp) and excludes employees on unpaid leaves of absence (e.g., permanent disability, long-term disability, parental leave) and interns.
(11) Numbers represented as total headcount, not full-time equivalent.
(12) Includes permanent part-time employees.
(13) Turnover is calculated as a percentage of average employee headcount.
(14) Includes employees at all levels.
(15) Managers include Manager level and above.
(16) The Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of DIR.UN are employees of Dream Asset Management Corporation. However, for the purposes of representation here, they are included under DIR.UN.
(17) Board composition as at December 31, 2020.
(18) Board composition as at December 31, 2021.
(19) Board composition as at December 31, 2022.
(20) Board composition as at December 31, 2023.

Environmental

Dream Industrial has a responsibility to manage and mitigate its overall impact on the environment. It recognizes that sustainability and impact investing are fundamental to doing business and a key driver of creating long-term value for its stakeholders. Dream Industrial’s approach to sustainability includes increasing energy efficiency throughout its portfolio, engaging tenants, lowering operational costs, incorporating energy management initiatives into its capital expenditures, and future-proofing assets against the impacts of climate change.

Building Certifications

Green building certifications help Dream Industrial incorporate a range of sustainable features into its global portfolio of properties and provide tenants, investors and lenders with credible proof points of the value of sustainability features in buildings.

In 2023, Dream Industrial made significant progress on its commitment to increase the number of green building certifications in the portfolio and executed on its commitment to obtain green building certification for all new developments including:

  • LEED Silver Certification on a 154,000 sf new development in Caledon, Ontario
  • The German Sustainable Building Council (“DGNB”) Gold Certification on a 241,000 sf expansion in Dresden, Germany
  • LEED Silver Certification on a 43,000 sf expansion in Richmond Hill, Ontario

In 2023, Dream Industrial achieved and exceeded its 2025 target to obtain green building certifications for an additional 2.7 million sf (includes LEED, BREEAM, ZCB, BOMA or DGNB) vs. the 2020 baseline.

Net Zero Development Program at 220 Water Street

Dream Industrial’s net zero development project at 220 Water Street located in Whitby, Ontario is comprised of two buildings currently undergoing construction and slated for completion by 2025. The project involved working with an independent consultant to conduct comprehensive whole building energy and GHG emissions simulations, value engineering various design options and conducting a life-cycle assessment for GHG emissions.

The design strategy for 220 Water Street delineates a clear pathway for the asset to attain CaGBC’s Zero Carbon Building Performance Certification in the future:

  • Approximately 70% of all building systems are designed to be electric;
  • High-efficiency upgrades, including HVAC systems and roof insulation will be implemented;
  • The building design includes a reinforced roof, giving it the capacity to install a rooftop solar PV system to generate a minimum of 5% of the site’s energy consumption.
  • Increased electrical capacity to accommodate a future transition to an all-electric building.

Pre-planning for these net zero upgrades in the construction design minimizes the need for costly renovations and tenant disruptions in the future, underscoring Dream Industrial’s commitment to progression in its net zero strategy.

Renewable Energy

In 2023, Dream Industrial completed three rooftop solar projects in the Netherlands and one solar project in Alberta, representing a total capital investment of $4 million and 3.7 megawatts (“MW“) of system capacity. As at the end of 2023, Dream Industrial has completed a cumulative total of 18 renewable energy projects representing a total system capacity of 14 MW, which are estimated to save approximately 115,000 tonnes of carbon dioxide equivalent (tCO2e)(1) over the lifetime of the projects. Dream Industrial owns and manages these solar panel installations directly as well as the associated revenue stream, which exceeded $1.4 million in 2023.(2)

As at the end of 2023, construction is underway on four additional solar projects – two projects in the Netherlands and two projects in Alberta – representing 7 MW of renewable energy capacity. In addition, feasibility assessments are underway on ten potential projects in Ontario and Europe.

(1) Emission Factor released in the National Inventory Report during the year of completion is used in the estimation. The values are not updated annually to reflect updated and changes to the emission factors.
(2) Includes revenue from rooftop solar systems that were in place upon building acquisition.

Social

Dream Industrial has committed to promoting the highest standards of social responsibility throughout the organization and aims to improve the lives of everyone who works there. Employees come from a wide range of backgrounds and experiences, bringing many valuable skills and perspectives to the team. The people Dream Industrial hires all have one thing in common: they hold shared values and contribute to company culture.

Green Lease Program

Dream Industrial has adopted a green lease as its standard lease across Canada and has integrated green lease considerations into its lease negotiations in Europe. The green lease program includes tenant commitments to energy disclosures, low carbon construction practices, the purchase of on-site renewable energy (if available), energy efficiency engagement and training, and cost recovery clauses for energy efficiency upgrades.

Green Lease Leaders In 2023, Dream Industrial received Platinum level recognition from the Green Lease Leaders program during the Better Buildings, Better Plants Summit,

held by the Institute for Market Transformation and the U.S. Department of Energy’s Better Buildings Alliance. The improvement from Gold to Platinum level is attributable to training and engagement sessions that were held in 2023 with internal leasing teams and external brokers on energy efficiency, climate change, and net zero building design. Dream Industrial’s progress on the development of building-level net zero transition plans and the implementation of energy management best practices also supported the year-over-year advancement from Gold to Platinum level. Dream Industrial will continue to integrate innovative and leading sustainability initiatives into its leasing program.

Dream Industrial Gender Breakdown(1)

(1) Includes only employees 100% dedicated to DIR.UN and excludes employees on unpaid leaves of absence (e.g. permanent disability, long-term disability, parental leave) and interns. Includes employees employed by Dream Industrial Management Corp., including Dream Industrial Europe Advisors Coöperatieve UA, Dream Industrial Netherlands Property Management B.V., Dream France Advisors SAS and Dream Summit Industrial Management Corp.
(2) Includes employees at all levels.
(3) Includes Managers and above.
(4) Executives of DIR.UN are employees of Dream Asset Management Corporation however the CFO of DIR.UN is a woman, while the CEO and COO are men.

Governance

As part of the ESG Framework, Dream Industrial links ESG considerations to executive goals and compensation.

Sustainability at DIR.UN is managed by the following:(1)

(1) The responsibilities set out in this section 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 board, committees or teams referred to in this section.

Disclosure Frameworks

  • Principles for Responsible Investment logo
    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.
  • Task Force on Climate-Related Financial Disclosures logo
    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 logo
    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.

Case Studies

Sustainability Reports