39.8Msq. ft. of leasable floor area(1)
98%in-place and committed occupancy(1)
Our sustainability strategy enables us to establish meaningful and realistic benchmarks, measure our progress and integrate our environmental and social obligations into the ways we manage our business and create value.
1.2 millionsq. ft. LED lighting upgrades(2)
$400 millioninaugural green bond issued(1)
17 MWof potential installed solar capacity from 30+ renewable energy projects assessed for feasibility
Improvedaccessibility through ramp installations and washroom upgrades at 5 buildings representing 190,000 sq. ft.(1)
Tenant Surveyto determine satisfaction levels and measure interest in sustainable initiatives(1)
Centralizedtechnology platform for marketing, leasing and asset management to improve tenant relationship management
$573 millionavailable liquidity as of December 31, 2020, from deleveraging effort and proactive financing strategies
Top 32021 GRESB rank for Public Disclosure among North America industrial group(1)
100%of properties assessed for climate change risk(1)
(1) Occurred as of September 30, 2021.
(2) Between January 1, 2020 and September 30, 2021.
|Cumulative percentage of total floor area with energy consumption data coverage(3)||NA(2)||28%|
|Cumulative percentage of eligible portfolio that has an energy rating(4)||NA(2)||25%|
|Annual mWh of renewable energy produced(5)||2,507||2,975(6)|
|Cumulative percentage of total floor area with GHG data coverage(3)||NA(2)||28%|
|Annual water savings from climate-controlled irrigation (litres)(7)||15,667,000||13,331,000|
|Cumulative percentage of total floor area with water consumption data coverage(8)||NA(2)||42%|
|Building Lighting Upgrades||2021 Year-to-date Progress(1)|
|Cumulative total floor area with lighting upgrades (sq. ft.)(9)||10.8M(13)||11.4M||14.1M(10)|
|Percentage of portfolio GLA with green building classification(11)||2%||10%||17%(10)|
|Cumulative on-site solar PV system capacity (kW)(5)||2,433||2,817(6)||5,795|
|Cumulative percentage of total floor area with on-site renewable energy generation(5)(12)||3.7%||4.2%||5.9%(10)|
|Compensation, Health and Environmental Committee||Provide oversight of sustainablity and ESG||Ongoing|
|ESG Executive Committee||Adopt ESG framework||Ongoing|
|Sustainability and ESG Team||Implement ESG Framement||Ongoing|
(1) There has been a significant change in portfolio size in 2019, 2020 and 2021.The change is the result of acquisitions and dispositions of assets in the portfolio. Each year’s energy, GHG, water, building lighting upgrades, building classification and renewable energy data is based on the relevant properties owned for the full calendar year in that year.
(2) Metric was not calculated in 2019.
(3) Represents percentage of total GLA under EWRB regulation and GLA representing 100% floor area of properties where DIR.UN has operational control over energy consumption including outdoor lighting and common areas.
(4) Energy ratings include GLA representing 100% of floor area of properties with Energy Star Portfolio Manager scores and Energy Performance Certificates (EPC) ratings
(5) Includes capacity from roof-top solar PV that is leased to third parties.
(6) Includes estimations from engineering calculations for some solar panel systems where production data was not provided.
(7) Data is based on 42 sites in Calgary.
(8) Represents percentage of total GLA under EWRB regulation, GLA representing 100% floor area of properties where DIR.UN has operational control over water and some
estimated water consumption from properties in Quebec.
(9) Includes T5 upgrades that were completed prior to 2019. Upgrades in 2020 and beyond are LED.
(10) As of 30 September 2021 and includes portfolio under U.S. Fund at 24.5% owned share.
(11) Green building classifications include LEED (Silver, Gold or Platinum), DGNB (Silver, Gold or Platinum), BREEAM (Very Good, Excellent or Outstanding), BOMA BEST (Silver, Gold or Platinum), Green Globes (Two, Three, Four), Toronto Green Standards (Tier 2,3,4), EPC (level A or B).
(12) Represents total GLA of buildings with rooftop solar system.
(13) In 2019 Sustainability Report, we reported 11.3M sq ft with lighting upgrades; this value included 2020 Year-To-Date values and prior years.
(14) Includes only employees dedicated to Dream Industrial REIT and excludes employees on unpaid leaves of absence (e.g., permanent disability, long-term disability, parental leave
(15) Includes employees at all levels.
(16) Executives of Dream Industrial are employees of Dream Asset Management Corporation however the CFO of DIR.UN is a woman, while the CEO and COO are men.
DIR.UN is actively focused on managing the carbon footprint of our buildings and pursuing energy efficiency in our assets wherever possible.
DIR.UN continues to allocate significant capital towards sustainable initiatives within its existing portfolio as well as towards new investment opportunities.
To efficiently facilitate this endeavor, DIR.UN has established a Green Financing Framework, which allows it to raise capital in support of its sustainable investment strategy. Under the Framework, DIR.UN, or any of its subsidiaries, may issue green bonds, green loans or other financial instruments to finance or re-finance eligible green projects that are aligned to the United Nations Sustainable Development Goals and encompass the following categories:
- Green buildings
- Clean transportation
- Energy efficiency
- Biodiversity and conservation
- Renewable energy
- Sustainable water and wastewater treatment
- Adaptability and resilience to climate change
The Framework has been reviewed by DNV, a global leader in pioneering green, social, and sustainable financial frameworks. In addition, DIR.UN has established a Green Financing Committee which will be responsible for evaluating and approving eligible projects for green financing, in accordance with the evaluation criteria set out in the Green Financing Framework. The Green Financing Committee is a cross-departmental committee co-chaired by the COO and CFO and made up of senior executives representing the following relevant departments at DIR.UN: Finance, Sustainability and Portfolio Management. The Committee meets at least once annually to review and approve eligible projects and existing allocation of proceeds.
Dream Industrial REIT Green Financing Framework ↗
(1) While DRM is the official signatory, DIR.UN will be an active participant and included in the boundary for reporting to the NZAM initiative and UN PRI as part of the Dream group of companies’ commitment.
We are continually exploring opportunities to invest in clean power in our Canadian and European portfolios. Capital investments in solar panels provide DIR.UN with an opportunity to significantly reduce GHG emissions while creating a financially viable revenue stream. It also offers an element of cost certainty to our tenants in an unpredictable energy market. Including existing panels, we are targeting to install over 50,000 solar panels across 3.5 million sq. ft., representing over 10% of our total portfolio as of September 30, 2021.
In Western Canada, we are working with the Energy Savings for Business subsidy from Emissions Reduction Alberta to install up to 6,300 roof-top solar panels on several buildings in our portfolio. We are also progressing on a feasibility assessment of the installation of up to 31,700 solar panels in the Netherlands, pursuant to the subsidy that was granted by the Dutch government in 2020. Additional solar projects are being assessed and we will continue to seek opportunities to expand the scale of our renewable energy projects in Europe.
Lighting is one of the most significant and consistent sources of energy consumption and utility costs in our portfolio. LED (light emitting diodes) lights require substantially less energy, have a longer lifespan, produce less heat and provide more illumination than conventional lighting such as incandescent bulbs. DIR.UN is focused on transitioning our interior and exterior lighting to LEDs. We continue to optimize opportunities to upgrade lighting when tenants renew or when space is returned to us.
In addition, we have commenced an outreach program to increase tenant awareness of the environmental and financial benefits of LED technology and provide them with an opportunity to upgrade lighting during their lease term. Our 2021 tenant survey identified that more than 80% of the respondents are interested in pursuing LED retrofits on their premises, which demonstrates that our LED outreach program has been very well received. DIR.UN is committed to improving energy efficiency through lighting retrofit projects.
DIR.UN aims to reduce the ecological footprint of its portfolio wherever feasible and actively contribute to the long-term sustainability for all our projects by taking an integrative approach. We actively seek opportunities to integrate aspects of circularity into our renovation and construction projects. In Calgary, we secured 14,000 sq. ft. of slightly used carpet that was being disposed of from a downtown office tower and installed the carpet in a show suite and several smaller tenant spaces. Our contractors in Quebec track the recycling of demolished construction materials on mid to large size projects.
DIR.UN’s strength as an organization comes from our strong and diverse workforce. Our employees possess expertise in a wide variety of areas that benefit our business, from real estate management and development to capital markets, risk, insurance and many more.
DIR.UN conducted a tenant engagement and satisfaction survey in 2021 to benchmark and enhance tenant satisfaction.
Sustainability-related questions have been incorporated into the survey to help us to better understand tenant sustainability preferences, identify priority assets for sustainability investments, such as rooftop solar and EV charging stations, and provide insight into opportunities to broker new sustainability-related partnerships. As part of this process,
we are holding feedback sessions with tenant sustainability
teams to discuss results and develop action plans.
- 71% have shown interest in using renewable energy for their energy requirements. Dream Industrial’s progress in roof top solar projects and continuous research and analyses on other sources of renewable energy will address the interest of our tenants in getting access to cleaner forms of energy.
- 80% are interested in pursuing LED retrofits in their premises, which will inform our LED retrofit planning.
- 64% of respondents have expressed interest in green building certifications, which we will align with our green certification program for our portfolio.
- 55% are interested in installing EV charging stations at their buildings.
(1) Includes employees at all levels.
(2) Includes only employees dedicated to Dream Industrial REIT and excludes employees on unpaid leaves of absence (e.g., permanent disability, long-term disability, parental leave and interns.
(3) Executives of Dream Industrial are employees of Dream Asset Management Corporation however the CFO of DIR.UN is a woman, while the CEO and COO are men.
As part of the ESG Framework, DIR.UN links ESG performance to executive and employee goals and compensation.
Financial Risk and Resilience
We significantly improved the strength of our balance sheet and our financial resiliency in 2020.
We increased the scale of our portfolio in 2020 to $3.2 billion, and further diversified our portfolio and tenant mix.
We increased our unencumbered asset pool from $100 million or 3.3% of total assets at the end of 2019 to $1.4 billion or 41% of assets at the end of 2020.
In 2020, DIR.UN achieved an investment grade credit rating significantly improving our access to capital.
As of December 31, 2020, our available liquidity amounted to $573 million as a result of our deleveraging efforts as well as our proactive financing strategies. We have a comprehensive insurance program benchmarked regularly against peers and other public entities of our size and scale.
Governance, Compensation and Environmental Committee
Provide oversight of sustainability at the Board level
ESG Executive Committee
Adopt ESG Framework for each Dream entity
Communicate sustainability strategy and commitment across company and key external stakeholders
Delegate implementation to each entity’s sustainability and ESG team
Report to the Governance, Compensation & Environmental Committee
Green Finance Committee
A cross-departmental committee co-chaired by the COO and CFO and made up of senior executives representing the following departments at DIR: Finance, Sustainability and Portfolio Management
Established to provide oversight of DIR.UN’s Green Bond Framework and to identify sustainable financing options
Sustainability and ESG Team
Oversee and manage portfolio sustainability initiatives including building certifications, energy, water and waste management and monitoring, as well as strategic initiatives
Meet quarterly with the Sustainability Executive Committee
Sustainability Working Groups
Responsible for advancing sustainability initiatives and activities at company and property level
Includes four working groups covering the following focus areas: Green Property Operations, Employee Engagement, Tenant Engagement, Reporting and Communications
Includes representatives from central functions, regions and properties
Report monthly to the Sustainability and ESG team
Our 182,000 square foot building in Offenau, Germany has an extensive green roof, which is covered with a layer of low-profile, self sustaining plants with no artificial irrigation. The roof construction consists of metal decking and is covered with insulation and synthetic roofing membrane. The main roof parts are intensive green roofs with integrated roof light domes. Rainwater is discharged via irrigation. The addition of this green roof to our portfolio will provide our property management teams with valuable and transferrable insight into the structure and performance of green roofs that can be considered for applications elsewhere in our portfolio in the future.
Green Building Certifications in Development
DIR.UN is pursuing the development of a 241,544 sq. ft. logistic center in Radeberg, Germany, intensifying excess land in our portfolio. German Sustainable Building Council (DGNB) Gold certification will be pursued and the building total performance score is projected between 65% and 85%. The building roof is being designed with the intent to install solar panels in the future. DIR.UN is planning an initial installation of two EV charging stations with the capacity to add more stations based on tenant demand. Biodiversity has been given special consideration for this project as the existing brownfield site is being redeveloped without affecting the surrounding area.
Pursuing Green Building Certifications
DIR.UN partnered with a tenant in 2021 to conduct a feasibility assessment to obtain LEED O&M Silver on a 30,000 sq. ft. building in Calgary. The feasibility assessment was successful and the certification process will be completed in early 2022. The building is outperforming buildings of similar size and occupancy, both locally and globally in water use. The certification will expand our portfolio of green certified buildings, and aligns with our tenant’s sustainability goals and commitments.
Responding to COVID-19
DIR.UN responded to the impact of the pandemic on our tenants through a comprehensive outreach program. Our teams connected directly with 100% of our tenants within the first 60 days of the lockdown. We proactively offered a rent deferral program to tenants in need of financial assistance, to support the continuity of their business operations in uncertain times. In addition, we provided extensive support to our tenants in the filing of their CECRA applications, to ensure they met application deadlines and submitted all required documentation.
Climate Controlled Water Management
We use climate-controlled irrigation at 42 of our sites in Calgary. The system uses real-time weather data from specialized water management weather stations to automatically adjust watering based on the best horticultural practices. Water schedules are programmed to meet specific landscape needs and detailed site assessments. The system also monitors seasonal performance to analyze opportunities for efficiencies. In 2020, we conserved 13,331,000 litres of water, equivalent to five Olympic sized swimming pools.
In 2020, DIR.UN partnered with Alveole to install a beehive at Glenmore Park in Calgary. The hive contains approximately 50,000 bees during peak season in July and early August. Alveole visits the hive every 3 weeks to monitor health and productivity and perform maintenance. Annually, each hive produces approximately 100 jars of delicious honey that we share with our tenants.
Our beehive is a unique tenant engagement tool that helps to promote positive attitudes toward protecting biodiversity in our local ecosystem.
LEED Certification Existing + Expansion
Construction is currently underway to build a 44,000 sq.ft. expansion to the existing facility located at 100 East Beaver Creek Road in Richmond Hill, with an initial target of LEED Core & Shell certification for the expansion area. The design of the building expansion contemplates each of the eight LEED categories to maximize energy performance, minimize the carbon footprint and contribute to a healthy indoor environment for the occupants. In a parallel process, DIR.UN has also initiated LEED for Operations and Maintenance certification of the existing 110,000 sq.ft. building. At the completion of both certifications, and once the appropriate commissioning is complete, DIR.UN plans to align and advance LEED status by re-certifying the entire building to achieve LEED Silver accreditation. Our phased approach to LEED certification creates an opportunity to optimize building performance in our existing portfolio while executing our strategy to design and build sustainable developments.
EV Charging Stations
Impact 83, a 158,000 sq.ft. property just outside the town of Duiven, Netherlands currently has 42 EV charging stations installed that are used by our tenant’s employees. The building also has an EPC label of ‘A’ that highlights the energy efficiency of the building. Our portfolio currently includes a total of eleven buildings with over 50 charging stations for electric vehicles. In 2021 DIR.UN used our tenant outreach program to assess if tenants would like to have access to EV charging stations in our buildings, and 65% of respondents expressed interest. Going forward, we will be expanding the number of charging stations with a program that will align with our tenants’ requirements.
Sustainable Attributes in New Acquisitions
Sustainability plays a significant role in our capital allocation decisions including our acquisition, development, and capital expenditure programs. In 2021, we acquired assets with a broad range of sustainable attributes including 182,000 sq.ft. of green roofs with self-sustaining plants, 16 properties with bicycle storage, 11 buildings with EV charging stations, 10 properties with solar panels comprising over 3 MW of capacity, 2 properties that utilize land for grazing, and a property with a beehive.
When we evaluate potential acquisitions our due diligence process identifies a building’s sustainable attributes including EV charging stations, solar rooftop PV systems, bike storage, type of roof (white and green roofs), green building certifications, physical climate risk assessment and energy performance ratings (such as EPC and ESPM). We are continually updating our due diligence policy to stay current with technological advances in sustainability and regulatory requirements to ensure that we identify all existing sustainable attributes as well as opportunities to improve sustainability in the future.
Renewable Energy in Alberta
In 2020, DIR.UN commissioned feasibility assessments on over 10 properties in Alberta to assess the viability of installing roof-top solar PV systems. We are partnering with our tenants to provide them with the opportunity to purchase zero-emission energy to power their operations. We have commenced two of the projects in 2021, and the remaining projects are in the final phase of review, with a total potential system capacity of 2.9 MW.
Enhancements of Tenant Outdoor Space
We are continually seeking ways to enhance our tenants’ experience and access to outdoor spaces. At Glenmore Centre in Calgary, we added an additional 15 all weather picnic tables along with 10 bicycle racks for the 130+ tenants in the park, and worked with the City’s Urban Forest Planner to replace trees and enhance planting with local native species. The landscape improvements benefit the business park as well as the surrounding community by promoting biodiversity. At another property in Lachine, Quebec, we installed 7 outdoor picnic tables for our tenants.
Making our Buildings More Inclusive
We installed accessibility ramps at two buildings to enhance the access to the buildings. One ramp will service a 58,000 sq. ft. two story building currently occupied by 8 tenants and the second ramp will serve a two story 25,000 sq. ft. building. Accessible washrooms were also installed at both buildings.
- Previous years +
Declaration of Trust
Dream Industrial REIT’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 Policy
The objective of our disclosure policy is to ensure that communications to the investing public about Dream Industrial REIT 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, officers and employees of Dream Industrial REIT and its subsidiaries.Code of Conduct
Our 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 trustees, officers and employees of Dream Industrial REIT and subsidiaries.Whistleblower Policy
At Dream Industrial REIT, 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 Dream Industrial REIT 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.comMajority Voting Policy
The 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 unit holders entitled to elect such Trustee nominee, failing which such Trustee shall submit his or her resignation to the Board for consideration.Diversity Inclusion & Advancement Commitment
As 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 Policy