Dream Office Real Estate Investment Trust (TSX:D.UN) (“Dream Office” or “D.UN”) is a premier landlord in downtown Toronto with over 3.5 million square feet of owned and managed office space. Dream Office has carefully curated an investment portfolio of high-quality assets in irreplaceable locations in one of the finest office markets in the world.
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“The market is moving towards net zero buildings which is a catalyst for Dream Office REIT to do the work now.”
Gordon Wadley
Chief Operating Officer, Dream Office REIT
2022 Highlights
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Submitted two buildingsfor LEED certification
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Eight buildings achieved the Investor Ready Energy Efficiency certification
through the Canada Infrastructure Bank’s Building Retrofits Initiative
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Continued operating Canada’s largest WELL
Health and Safety Rated office portfolio(1)
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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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$7.9 million drawn against the Canada
Infrastructure Bank (CIB)credit facility for seven retrofit projects to reduce the building’s operational carbon emissions by an estimated 1,200 tCO2e per year on project completion
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90 projects to improve efficiency
reduce GHG emissions or promote sustainability were completed
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Platinum level awardthrough the Green Lease Leader program by the Institute for Market Transformation and the US Department of Energy Better Buildings Alliance
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Top Reducer Award
in the BOMA Beyond Earth Hour Challenge: Building Challenge (350 Bay Street)
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Conducted tenant survey
to understand tenant needs and interest in environmental initiatives
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Official supporterof the Task Force on Climate-related Financial Disclosures
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92/100 GRESB(3) score
top 20% of the benchmark, earning a five-star rating for the second year in a row
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Implemented internal controls framework
to further standardize the collection, measurement, and review of ESG and impact data across the portfolio
(1) As at the time of certification in May 2021.
(2) Converted $375 million and $20 million revolving credit facilities sustainability-linked performance targets.
(3) 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.
(4) Rating is as of March 31, 2023.
(5) Based on 1,063 real estate companies rated by Sustainalytics globally. As at March 2023. Copyright ©2023 Sustainalytics. All rights reserved. This report contains information developed by Sustainalytics (http://www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third-party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers.
ESG Scorecard
Absolute energy consumption, GHG emissions, and water consumption have decreased due to energy and water efficiency projects relative to the baseline. Reduced energy, GHG emissions, and water consumption in 2020 and 2021 can be attributed to COVID-related occupancy reductions.
| Indicator | 2019 Baseline | 2021 | 2022 | YoY% Change | % Change from Baseline |
| Energy | |||||
| Energy consumption (ekWh) | 176,812,514 | 146,268,282 | 151,792,207 | 4% | -14% |
| Energy intensity (ekWh / sq. ft.) | 32.7 | 22.5 | 27.6 | 23% | -16% |
| Water | |||||
| Water Consumption (m3e) | 448,106 | 258,502 | 296,527 | 15% | -34% |
| Water intensity (m3/sq. ft) | 0.083 | 0.039 | 0.053 | 36% | -36% |
| GHG Emissions(4) | |||||
| Scope 1 Emissions (tCO2e) | 11,285 | 9,969 | 10,961 | 10% | -3% |
| Scope 2 Emissions (tCO2e) | 14,782 | 10,853 | 10,576 | -3% | -28% |
| Total GHG Emissions (Scope 1 and 2 tCO2e) | 26,067 | 20,822 | 21,537 | 3% | -17% |
| GHG Emissions Intensity (kg CO2e/sf)(3) | 4.83 | 3.21 | 3.76 | 17% | 22% |
| Waste(5) | |||||
| Waste to landfill (tonnes) | 674 | 502 | 799 | 59% | 19% |
| Waste diverted (tonnes) | 539 | 315 | 553 | 76% | 3% |
| Total waste generated (tonnes) | 1,213 | 817 | 1,353 | 66% | 12% |
| Waste diversion(3) | 44% | 39% | 41% | 5% | -7% |
| Certifications and Ratings | |||||
| Percent of Portfolio with Green Building Certification | 96% | 97% | 91% | -6% | 5% |
| Percent of Eligible Portfolio with an Energy Rating(6) | 83% | 94% | 100% | 6% | 20% |
| Indicator | 2020 | 2021 | 2022 |
| Employees(7)(8) | 210 | 222 | 246 |
| Voluntary turnover rate(9) | 9% | 16% | 14% |
| Women employees(10)(11) | 40% | 44% | 43% |
| Women managers(12) | 45% | 47% | 45% |
| Women executives(13) | 0% | 0% | 0% |
| Indicator | 2020(14) | 2021(15) | 2022(16) |
| Women trustees | 50% | 50% | 57% |
| Independent trustees | 75% | 75% | 71% |
(1) Unless otherwise stated, each year’s energy, GHG, water, waste, building certification and energy rating data is based on the relevant owned-Canadian properties where D.UN has operational control. Excludes assets that are under development and major renovations. Co-owned assets are included at 100% of GLA. Represents. For US portfolio, please refer to the Supplemental Disclosure section.
(2) Please refer to Supplemental Disclosures for more information, including data coverage and sources of emission factors.
(3) Includes assets (at 100% of GLA) operational for the full year.
(4) GHG emissions are calculated in accordance with the World Resource Institute Greenhouse Gas Protocol. Calculations in this table capture activities D.UN has direct and indirect operational control over: Scope 1 emissions generated directly from its operations, including heating with D.UN’s properties; Scope 2 emissions indirectly associated with generation of purchased electricity, heating, cooling, and steam consumed by properties.
(5) Includes 100% of waste generated at assets owned by D.UN and co-owned by D.UN and MPCT.UN.
(6) Represents the percentage of portfolio based on sf using ENERGY STAR Portfolio Manager (ESPM).
(7) Includes only employees 100% dedicated to Dream Office REIT and shared services functions for the Dream entities. Excludes employees on unpaid leaves of absence (e.g., permanent disability, long-term disability, parental leave) and interns.
(8) Numbers represented as total headcount; not full time equivalent.
(9) Turnover is calculated as a percentage of employee headcount within the noted category.
(10) Percentages are based on total headcount.
(11) Includes employees at all levels.
(12) Includes managers and above.
(13) Includes the Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer of D.UN.
(14) Board composition as at December 31, 2020.
(15) Board composition as at December 31, 2021.
(16) Board composition as at December 31, 2022.
Environmental
Prioritizing efficient and comfortable buildings has always been a part of Dream Office’s core values and connects to the Dream group’s mission to Build Better Communities.
The Alleyway Revitalization
Dream Office undertook a significant overhaul of a service alleyway that connects the backs of four of its properties. What once had restaurant garbage, grease disposal, parking and noisy mechanical units has now been cleaned up and features decorative pavers, architectural lighting, three mature trees, and multiple seasonal plantings. There is also a dining patio associated with a new restaurant at 67 Richmond Street West. The Alleyway has gone from an unfriendly space to a vibrant urban garden that creates exciting new pathways between Richmond and Temperance streets.
Building Certifications(1)
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91%BOMA BEST certification of
all Canadian properties -
19%LEED certified buildings,
downtown Toronto -
8 BuildingsReceived the Investor Ready Energy Efficiency (IREE) in 2022
(1) The above numbers are based on GLA of assets as at December 31, 2022, including all Canadian properties at 100% of GLA. Properties may have more than one certification which is why they add up to more than 100%.
Social
Dream Office’s strength as an organization comes from its strong and diverse workforce. The people come from a wide range of backgrounds and experiences, bringing many valuable skills and perspectives to the Dream Office team. The people Dream Office hires all have one thing in common: they share the company values and contribute to the company culture.
Bee-Clean
Bee-Clean is a building maintenance company that formed a partnership with Papasay Management Corporation (the economic development arm of the Bingwi Neyaashi Anishinaabek First Nation) in 2015. Papasay is 51% majority owner of the venture. The entity provides employment opportunities for First Nations community members throughout Canada (including in Dream Office buildings), as well as a recurring revenue stream to Papasay.
Dream Office(1)Gender Breakdown
(1) Includes only employees 100% dedicated to Dream Office REIT and shared services functions for the Dream entities. Excludes employees on unpaid leaves of absence (e.g., permanent disability, long-term disability, parental leave) and interns. Percentages are based on total headcount.
(2) Includes employees at all levels.
(3) Includes Managers and above.
(4) For the purposes of this website, Executives include: the Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer of D.UN.
Governance
As part of the ESG Framework, Dream Office links ESG considerations to executive goals and compensation.
Sustainability and ESG-related matters at
Dream Office are managed by the following:
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Board of Trustees
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The D.UN board has delegated such oversight to the Governance, Environmental and Nominating Committee
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Governance, Environmental and Nominating Committee
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Oversee approach to environmental, social, governance and impact investing matters
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Chief Executive Officer – Dream Office
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Provide oversight of sustainability and ESG for Dream Office
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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 D.UN
Communicate sustainability strategy and commitment across the company and key external stakeholders
Delegate implementation to D.UN’s Sustainability and ESG team
Reports to the Governance, Environmental and Nominating Committee -
Head of Impact Strategy and Delivery
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Responsible for the execution of the D.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 D.UN’s impact initiatives and broader community objectives -
Sustainability and ESG Team
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Embed sustainability strategy and commitment across the 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 initiatives
Meet quarterly with the ESG Executive Committee -
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 -
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, Tenant Engagement
Includes representatives from central functions, regions, and properties
Each group reports regularly to the Sustainability and ESG team
Disclosure Frameworks
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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 entities are dedicated to building safe, resilient, inclusive, and sustainable cities – expressed by Goal 11. -
Taskforce on Climate-related Financial Disclosures ↗In 2021, Dream Office became an official supporter of the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations. To align with TCFD recommendations and enable appropriate oversight, Dream Office 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 Office 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 were committed to be managed in line with net zero for Scope 1 and Scope 2 emissions by 2035. -
Operating Principles for Impact Management ↗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 of Dream Office, became a signatory to the PRI in 2021 and will report on its responsible investment activities starting in 2023.
(1) Assets under management as of June 30, 2022.
Environmental
Toronto Deep Retrofit Challenge
The City of Toronto’s Deep Retrofit Challenge is a competition-style program to support deep energy
retrofit projects that deliver significant greenhouse gas
emission reductions. The program will provide funding to
approximately 10-16 buildings, with the intent of kickstarting early voluntary compliance with the city’s Net
Zero Existing Building Strategy. Dream Office applied to be a participant and has received conditional acceptance for up to $500,000 in grants to retrofit one office building. Undergoing deep retrofits will enable these assets to reduce their energy and greenhouse footprint and align with its net zero emission reduction targets. Energy projects included in the challenge must be completed and operational by January 31, 2025.
Environmental
Smart Buildings
The Victory Building, a historical and architectural gem at 80 Richmond Street West in the financial district, combines old-world design and modern conveniences. Built in 1936, the Victory Building was the first office tower in Canada to be completely air conditioned, courtesy of General Electric. In 2022, it became the first heritage building in Canada to be SmartScore Gold certified. In addition, the Victory Building is one of ten founding pilot project buildings undergoing certification with BOMA BEST Smart Buildings. Dream Office is honoured to be recognized for its efforts to convert historical buildings into luxury assets while continuing to improve, benchmark, and promote its buildings’ digital infrastructure.
Sustainability Reports
- Previous years +
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Policies
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Declaration of Trust
Dream Office 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 PolicyThe objective of our disclosure policy is to ensure that communications to the investing public about Dream Office 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 Office REIT and its subsidiaries, including trusts and partnerships in which Dream Office REIT owns directly or indirectly at least a 50% equity interest.
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 trustees, officers and employees of Dream Office REIT and subsidiaries.
Whistleblower PolicyAt Dream Office 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 Office 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.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.
Diversity Inclusion u0026 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 PolicyDream seeks to maintain a Board comprised of talented and dedicated trustees whose skills and backgrounds reflect the diverse nature of the business environment in which Dream operates. Accordingly, the composition of the Board is intended to reflect a diverse mix of skills, experience, knowledge and backgrounds, including an appropriate number of women trustees.
* 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.