Continues Industry Leadership by Meeting Environmental Goals Ahead of Schedule and Establishing Aggressive New Targets
Inaugural Recipient of EPA’s ENERGY STAR Charter Tenant Space Recognition for New York Corporate Office
SAN FRANCISCO, June 21, 2018 – Shorenstein Properties LLC (“Shorenstein” or the “Company”), an owner and operator of high-quality office, residential and mixed-use properties across the U.S., today announced the release of its 2018 Sustainability Report, highlighting the Company’s sustainability achievements and establishing new long-term environmental performance goals.
Having formalized its “green” initiative more than a decade ago, Shorenstein remains an industry leader with a commitment to responsible business practices, achieved by continually enhancing investment performance, operational resilience and business governance for the benefit of properties, tenants, employees and communities. Surpassing its peers in global sustainability assessments, over the past year Shorenstein established aggressive new milestones for environmental performance objectives. Having achieved prior targets ahead of schedule, the Company completed 58 efficiency projects across the portfolio and earned multiple regulatory and industry recognitions for sustainability, including the Environmental Protection Agency’s inaugural ENERGY STAR recognition for office tenants.
“At Shorenstein, we embrace sustainability as an opportunity to strengthen the communities in which we operate, reduce our impact on the environment and improve our business practices,” said Charles W. Malet, President and Chief Investment Officer of Shorenstein. “In addition to environmental stewardship, as an industry leader we believe our responsibilities encompass the social and governance factors that underpin the long-term strength and success of our business. As evidenced through our accomplishments in the past year, these efforts have generated substantial value while maintaining Shorenstein’s legacy of building a sustainable future.”
New Sustainable Performance Targets
One of the first commercial real estate companies to join the Department of Energy’s Better Buildings Challenge, Shorenstein announced last year the completion of its initial goal – decreasing energy use across the office portfolio by 20%1 – three years ahead of its original target, with the resulting efficiency gains lowering the Company’s energy bills by $6.5 million annually.
As outlined in the report, Shorenstein is continuing its decade-long support of the Better Buildings Challenge by establishing new long-term environmental performance targets for energy, greenhouse gas emissions and recycling. The first commercial real estate company to achieve its initial Better Buildings Challenge goal and publically set a new target – by 2025 the Company is seeking to cut both energy use and greenhouse gas emissions by 40%2, while increasing recycling by 20%3.
As evidenced by its achievements over the past year, Shorenstein has expanded on its early adoption of sustainability programs and stayed ahead of the pack as these strategies become standard practice in the real estate industry. Notable accomplishments include:
- Outperforming the average for all privately-held U.S. office peers on environmental, social and governance assessments by earning four out of five “Green Stars” on the 2017 Global Real Estate Sustainability Benchmark;
- Receiving the Environmental Protection Agency’s inaugural ENERGY STAR Charter Tenant Space recognition for the Company’s New York corporate office;
- Completing 58 energy and water efficiency projects across the portfolio in 2017, which will save over $650,000 annually and eliminate emissions equivalent to taking 492 cars off the road; and
- Maintaining platinum membership of the U.S. Green Building Council, with all properties built and operated to the LEED (Leadership in Energy and Environmental Design) standard and more than 30 employees earn the LEED Green Associate or LEED AP credential, signifying the Company’s ongoing commitment to sustainable building principles. Shorenstein currently owns 12.2 million square feet of LEED office property, primarily certified at the Gold level.
Shorenstein upholds the highest industry standards across the entire Environmental, Social and Governance (ESG) spectrum, which plays an integral part in its investment process as well as strategic operations. In addition to its environmental advocacy, the Company employs best-in-class governance practices and maintains robust programs that actively support community impact and employee well-being.
About Shorenstein Properties LLC
Founded in 1924, Shorenstein Properties LLC is a privately-owned, real estate firm that owns and operates high-quality office, residential and mixed-use properties across the U.S., with offices in San Francisco and New York. Since 1992, Shorenstein has sponsored eleven closed-end investment funds with total equity commitments of $7.9 billion, of which Shorenstein committed $648.5 million. The firm uses its integrated investment and operating capabilities to take advantage of opportunities that, at the particular time in the investment cycle, offer the most attractive risk-adjusted returns. Investments have included ground-up developments, asset repositioning and stabilized assets; investment structures have included asset acquisitions, mezzanine loans, preferred equity investments and structured joint ventures. These funds have invested in properties totaling 64.1 million square feet in transactions with a gross investment value in excess of $15.2 billion.