FOCUSING ON SUSTAINABILITY
2015 SUSTAINABILITY
REPORT
MORGUARD 2015 SUSTAINABILITY REPORT
TABLE OF CONTENTS
EXECUTIVE STATEMENT ....................................................................................................................................... 1 PROFILE ................................................................................................................................................................... 2 OUR SUSTAINABILITY STRATEGY ........................................................................................................................ 4 Sustainability Program Management ................................................................................................................... 4 OUR 2035 LONG-TERM OBJECTIVES ................................................................................................................... 5 OUR VOICE – ADVOCATING FOR SUSTAINABLE REAL ESTATE ...................................................................... 6 OUR STAKEHOLDERS AND MATERIALITY ........................................................................................................... 6 COMMITMENT TO EXTERNAL INITIATIVES .......................................................................................................... 7 RESPONSIBLE PROPERTY INVESTMENT – SUSTAINABILITY ADVISER TO OUR CLIENTS ........................... 8 REACHING NET ZERO – PARTNERING TO ACHIEVE SUSTAINABLE BUILDINGS ........................................... 9 Energy Consumption – Canadian Office and Retail Properties ......................................................................... 15 Greenhouse Gases and Carbon Emissions – Canadian Office and Retail Properties ...................................... 16 Energy Intensity – Canadian Office and Retail Properties ................................................................................. 16 GHG Intensity – Canadian Office and Retail Properties .................................................................................... 17 Electricity Performance – U.S. Retail Properties ............................................................................................... 17 Water Consumption – Canadian Office and Retail Properties ........................................................................... 18 Water Intensity – Canadian Office and Retail Properties ................................................................................... 18 Waste Performance – Canadian Office and Retail Properties ........................................................................... 19 SUSTAINABLE DEVELOPMENT – BUILDING AND SUPPORTING OUR COMMUNITIES ................................. 20 OUR DEVELOPMENTS.......................................................................................................................................... 20 PUBLIC CONSULTATION ...................................................................................................................................... 20 HABITAT PROTECTION AND SITE SELECTION ................................................................................................. 20 CHARITY PROGRAMS – SUPPORTING OUR COMMUNITIES ........................................................................... 21 RESPONSIBLE EMPLOYER – EMPOWERING OUR PEOPLE ............................................................................ 23 OUR PEOPLE ......................................................................................................................................................... 23 EQUAL OPPORTUNITY AND DISCRIMINATION.................................................................................................. 24 EMPLOYMENT COMPENSATION AND BENEFITS.............................................................................................. 26 COLLECTIVE AGREEMENTS................................................................................................................................ 26 HEALTH AND SAFETY PROGRAMS .................................................................................................................... 27 TRAINING AND PROFESSIONAL DEVELOPMENT ............................................................................................. 29 PERFORMANCE REVIEWS................................................................................................................................... 30 OUR SUSTAINABLE HOUSE – LEADING BY EXAMPLE ..................................................................................... 31 GREENING OUR OFFICES COMMITTEE ............................................................................................................. 31 MORGUARD.COM
MORGUARD 2015 SUSTAINABILITY REPORT
ENVIRONMENTAL POLICIES AND PROCEDURES – ENVIRO LINK .................................................................. 31 LAND CONTAMINATION, REMEDIATION AND COMPLIANCE ........................................................................... 32 RESPONSIBLE GOVERNANCE ............................................................................................................................ 33 Business Conduct .............................................................................................................................................. 33 Responsible Contracting .................................................................................................................................... 33 APPENDIX A - GLOSSARY ................................................................................................................................... 34 APPENDIX B - BUILDING PERFORMANCE – WEATHER AND OCCUPANCY MODEL ..................................... 35 APPENDIX C - GRI INDEX ..................................................................................................................................... 37 APPENDIX D - GLOBAL REPORTING INITIATIVE (GRI) VERSIONS 3.1 – APPLICATION LEVEL B – SELF
DECLARED ........................................................................................................................................................... 40 MORGUARD.COM
MORGUARD 2015 SUSTAINABILITY REPORT
EXECUTIVE STATEMENT
At Morguard, our focus on sustainability has resulted in continuous improvements across environmental, social
and governance indicators.
In 2015, the collective efforts of clients, tenants and employees have demonstrated true collaboration to achieve
these results. We continued to make significant reductions in energy use, greenhouse gas emissions, water
consumption and waste. These efforts contributed to the reduction of the environmental footprint of our real
estate portfolio, added long-term value to the properties and enhanced the satisfaction level of tenants.
Sustainable Morguard, our corporate-wide sustainability program, is successful because we partner with key
stakeholders to achieve common goals. We work with our clients to validate ESG objectives; we work with our
tenants to engage in green initiatives; and we work with our employees to execute our sustainable programs
and to provide training on best practices.
Together, we are being recognized for our health and safety performance, green certified buildings and
contributions to stronger communities.
For 2016, we are working towards increasing the frequency of our reporting.
K. RAI SAHI
Chairman and Chief Executive Officer
Morguard Corporation
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MORGUARD 2015 SUSTAINABILITY REPORT
PROFILE
As one of North America’s fully integrated real estate organizations, with 1,528 employees and total real estate
assets owned and under management valued at $15.6 billion, Morguard has a unique ability to help build a
sustainable future. By integrating the principles of sustainability into our business, we drive long-term value for
our shareholders, clients, tenants and employees – and create better places for people to work and live.
REPORT SCOPE AND BOUNDARY
Morguard’s 2010-2011 Sustainability Report was our first public launch of our new programs, and provided
detailed disclosure on our sustainability performance. Morguard has continued that reporting commitment and
is proud to present the results of our corporate sustainability program for the calendar year ending December
31, 2015. Again this year, we are also publishing a separate 2015 Sustainability Highlights profiling specific
properties and summarizing achievements, which will be available at morguard.com.
This report provides transparent information on activities and management strategies across the entire
company, including both owned and managed real estate assets, in Canada and in the U.S. Property
performance metrics are focused on our office and retail properties where we have the most significant
operational control. Although we acquired and disposed of assets during the reporting period, all property
performance metrics are only for properties that were operational during the entire reporting period.
The creation of this report was guided primarily by the Global Reporting Initiative (“GRI”) G3 framework and
indicator protocols, including the Construction and Real Estate Sector Supplement (“CRESS”).
All information is presented as at December 31, 2015, unless otherwise indicated.
ORGANIZATIONAL PROFILE
Morguard’s primary business strategy is to create shareholder value through stable and increasing cash flow
and asset value. This is achieved by improving the performance of the real estate portfolio and by acquiring
and developing real estate properties in sound economic markets.
The Company has three diversified lines of business:
Investments in Real Property: Morguard owns and manages a diversified portfolio of multi-suite residential,
retail, office, industrial and hotel properties in North America.
Real Estate Investment Trusts: Morguard is a significant sponsor of two real estate investment trusts (REITs):
Morguard REIT (TSX: MRT.UN), a closed-end Trust with a diversified portfolio of Canadian commercial real
estate assets; and Morguard North American Residential REIT (TSX: MRG.UN), an open-end Trust with a
diversified portfolio of multi-suite residential assets across North America.
Advisory and Investment Services: Morguard provides real estate advisory services and portfolio
management services, specializing in publicly traded equities and fixed-income securities, to institutional
clients and private investors
Morguard operates in Canada and the U.S. Its head office is based in Mississauga, Ontario, Canada.
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For more information about Morguard’s organizational structure and financial performance, please see the
Morguard Corporation Annual Information Form and other continuous disclosure materials available at
morguard.com
We welcome report feedback or inquiries. Please contact [email protected]
Beverley G. Flynn Vice President, General Counsel and Secretary
Neil Pegram National Manager, Corporate Sustainability & Responsibility
55 City Centre Drive, Suite 1000
Mississauga, ON
L5B 1M3
Canada
T 905-281-3800
morguard.com
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MORGUARD 2015 SUSTAINABILITY REPORT
OUR SUSTAINABILITY STRATEGY
Sustainability is a strategic priority for Morguard. Sustainability encompasses the risks and organizational
responsibilities surrounding our across environmental, social and governance (“ESG”) impacts. Sustainability
is of particular concern to the real estate sector – given the scale and extent of its ESG impacts – as well as to
key stakeholders such as our shareholders, clients, tenants and employees.
Our properties house families and businesses across Canada and the U.S., and people will always need
buildings in which to live and work. At a fundamental level, all real estate organizations contribute to society
through the development and management of shelter. Our sustainability challenge starts from this foundation.
We strive to identify and implement innovative initiatives that ensure that our business models and properties
will contribute to a sustainable society.
Sustainable Morguard, our company-wide sustainability program, helps us structure our efforts and act on
ESG risks and opportunities that are important to our shareholders, clients, tenants, employees and
communities. The major areas of focus are: decreasing energy and water use, reducing waste and emissions,
obtaining green building certifications, collecting consistent data that tracks our performance towards our
objectives, transparent reporting and implementing new sustainability initiatives and policies that support our
focus areas.
As part of the program, we have established six long-term objectives that articulate what the company wants to
achieve by 2035, using 2010 as the base year. These objectives, and our performance against them, are
discussed in the following sections of this report.
SUSTAINABILITY PROGRAM MANAGEMENT
Sustainable Morguard is sponsored by our Senior Vice President, Finance, and Chief Financial Officer of
Morguard Investments Limited, Pamela McLean and our Vice President, General Counsel and Secretary,
Beverley G. Flynn. The steering committee that oversees the program meets monthly to review strategic
initiatives, and time is allotted at each meeting for sustainability matters.
Sustainability initiatives are developed and driven by senior management through sustainability committees.
These committees establish cross-functional working groups to implement specific initiatives aimed at mitigating
environmental impacts, reducing costs, building employee engagement and more. The committees and working
groups bring sustainability to life – they engage people at all levels of the organization, accelerate innovation
and drive performance improvements.
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MORGUARD 2015 SUSTAINABILITY REPORT
OUR 2035 LONG-TERM OBJECTIVES
Our Voice: Advocating for Sustainable Real Estate
We will communicate our sustainability journey with passion, integrity, transparency and pride. In doing so, we
will not only inspire others to join us but we will seek our stakeholders’ support on our continued journey.
Responsible Property Investment: Sustainability Adviser to Our Clients
We will provide the best strategic advice to our clients on both ESG factors and financial factors. We will create
new investment strategies and opportunities that align with our sustainability principles while managing risk
effectively and creating lasting, real returns.
Reaching Net Zero: Partnering to Achieve Sustainable Buildings
We will operate our buildings in alignment with our sustainability principles, thereby neutralizing
our
environmental impacts. We will achieve this by partnering with our tenants and clients and systematically
applying innovative building solutions to reduce our combined environmental footprint.
Sustainable Development: Building and Supporting Our Communities
We will support the communities in which we operate through the construction of sustainable real estate and
localized philanthropy. As a real estate developer, we have a significant impact on communities and, therefore,
we have a unique responsibility to contribute to their sustainability.
Responsible Employer: Empowering Our People
We will create a culture of respect, inclusion, health, safety and equal opportunity by removing barriers to
employees meeting their needs. We will empower employees to ensure that Morguard retains, engages and
attracts innovative talent that will contribute to the success of our sustainability journey.
Our Sustainable House: Leading by Example
We will set an example in our corporate offices and through our business practices – inspiring our stakeholders
to follow our lead. As both a landlord and a tenant, we have a unique ability to demonstrate our commitment to
sustainability in our properties. As a corporation, we will demonstrate best practices in responsible governance
company-wide.
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MORGUARD 2015 SUSTAINABILITY REPORT
OUR VOICE – ADVOCATING FOR SUSTAINABLE REAL ESTATE
Morguard will use its voice to advocate for sustainable business practices in the real estate industry. In doing
so, we will support our industry partners, promote our sustainability successes and create positive change,
while engaging key stakeholders.
We strive to communicate with passion, integrity, transparency and pride. We seek our stakeholders’ support
on our sustainability journey, continually increase the materiality of our reporting and maintain a presence in the
sustainability dialogue of the commercial real estate industry.
OUR STAKEHOLDERS AND MATERIALITY
Our engagement with stakeholders on sustainability includes consultations with employees, management, key
clients and tenants, and panel discussions with external sustainability experts.
In 2010, we completed a formal materiality assessment with the assistance of sustainability practice specialists
from Deloitte LLP. The assessment resulted in a materiality map that clarified issues of concern to our most
important stakeholders – namely, our clients (institutional and private clients), tenants, shareholders, employees
and communities in which we operate. These stakeholder groups were chosen based on their potential to
influence Morguard’s economic success.
The assessment clearly identified “environmental impacts” as our top sustainability issue (e.g. energy, water
and waste management), and it highlighted other critical issues around tenant and employee care.
We recognize that sustainability impacts that are of high interest to our stakeholders and have a high impact on
our business viability are the most material and require greater transparency and increased resources. These
impacts (those that fall toward the top right of our materiality map), therefore, also have the greatest potential
to drive business and provide value to our stakeholders.
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MORGUARD 2015 SUSTAINABILITY REPORT
COMMITMENT TO EXTERNAL INITIATIVES
Morguard regularly engages with organizations that specialize in sustainability issues. Energy Advantage, The
Natural Step, Deloitte LLP, Quinn & Partners, Ernst & Young LLP and the Shareholder Association for Research
& Education (SHARE) have all helped to focus and implement Sustainable Morguard.
We are also committed to engaging with industry associations on initiatives that drive sustainable change.
These engagements promote innovative strategies that increase efficiency and decrease costs in our
properties, while encouraging responsible business practices industry-wide.
Real Property Association of Canada (“REALpac”) – Morguard is an active member of REALpac and holds
memberships in multiple committees, including the Corporate Responsibility & Sustainability, Human Resources
and Energy committees.
Canadian Green Building Council (“CaGBC”) – Active member.
Building Owners and Managers Association (“BOMA”) – Canada – Active member.
Global Reporting Initiative – Morguard provided comments on the Construction and Real Estate Sector
Supplement for the GRI G3 sustainability framework.
Greening Greater Toronto – Morguard is a Commercial Building Energy Initiative Leadership Council member.
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RESPONSIBLE PROPERTY INVESTMENT – SUSTAINABILITY ADVISER
TO OUR CLIENTS
A strategic and responsible approach to sustainability is essential to maintaining the long-term value of
Morguard’s assets under management.
OUR CLIENTS AS KEY STAKEHOLDERS
Morguard aims to provide the best strategic advice to clients on ESG and financial factors, recognizing that
sustainability can both mitigate significant risks and increase value.
Our focus on responsible property investment (“RPI”) and ESG matters has penetrated many areas of our
business and advisory services. When we investigate a potential property acquisition, a team is assembled to
carry out an in-depth financial, physical and environmental analysis. This analysis includes a range of
environmental indicators that could contribute to risk, efficiency, returns and value. It is through processes such
as this that we look to improve our environmental risk analysis and add value to our clients’ assets.
We have formed an internal working group on RPI, an investment approach that identifies and addresses the
ESG risks and opportunities associated with owning and managing real property. Morguard, with leadership
from our internal Sustainability department, has developed tools such as this corporate sustainability report and
implemented new processes in our property business planning. These initiatives increase client and
shareholder disclosure on sustainability performance and ESG matters. We also work with clients to ensure
compatibility with their responsible investing and sustainability programs.
Property business plans, capital plans and budgets are the primary methods in which we engage with our
clients, and we have committed to greater disclosure on sustainability in these documents. In 2015, all business
plans for all Canadian enclosed shopping centres and office properties over 100,000 square feet, were
enhanced to include the following:
•
A refreshed overview of our proprietary GREEN LINK program and detailed insights from property
management on planned sustainability initiatives;
•
Increased asset management commentary on the property’s sustainability strengths, and any changes in
the local green building market;
•
Detailed property performance charts and metrics including energy and water use, energy intensity, GHG
emissions and waste diversion;
•
Green building awards, certifications and audits (energy, water, waste, air); and
•
Leasing insights including tenant engagement efforts and feedback on sustainability initiatives.
We met our 2015 RPI objective to develop and implement greater sustainability disclosure in our office and
enclosed shopping centre business plans. This initiative was well-received by key clients and is the first step
toward our long-term objective to implement our RPI program across all assets under management and
throughout all of Morguard’s real estate activities, including investment, acquisition, development, asset
management, leasing and property management. We will continue to develop the program by further
integrating ESG factors into all applicable decision-making processes and ensuring our investment strategies
and opportunities align with our sustainability principles. This will help ensure that the value of our assets under
management is preserved and enhanced while providing excellent risk metrics to our shareholders and clients.
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REACHING NET ZERO – PARTNERING TO ACHIEVE SUSTAINABLE
BUILDINGS
Morguard’s role as an owner and adviser is to add value to its portfolio by identifying, recommending and
implementing cost-saving initiatives that deliver positive returns and protect or enhance asset value. Efficient
and professional management and operation of all Morguard-managed properties are critical to our success.
GREEN LINK AND TENANT ENGAGEMENT
One of our long-term objectives is to operate our buildings – in partnership with our clients, tenants and the
public – in alignment with our sustainability principles. Our tenants are at various stages of their own
sustainability journeys, ranging from industrial businesses that effectively control most of their own
environmental impacts to small office tenants for whom we manage most building functions – from lighting to
recycling. We work to meet these clients and tenants “where they are at” and partner with them to apply
innovative building solutions that lower costs and reduce our combined environmental footprint.
Most of our properties are subject to our proprietary GREEN LINK program, which targets resource efficiency,
waste reduction, interior environment quality and value creation, in preparation for additional external green
building certification. GREEN LINK requires energy, waste and water audits and presents cost-saving initiatives
such as lighting retrofits and water use reductions. GREEN LINK also ensures that properties implement best
practices that result in long-term cost and risk reductions and enhanced tenant engagement and
communication.
Leasing is also a critical point of engagement with tenants. The standard Morguard lease includes a number of
green provisions that start a dialogue with tenants about our shared efficiency objectives. We look to increase
our use of green provisions to align with evolving industry best practices and to meet the needs of our clients
and tenants.
To ensure Morguard is meeting our tenant expectations, in 2015, we completed a robust tenant satisfaction
survey across the majority of our Canadian office properties. We committed to validating the expectations of
our tenant-focused sustainability programs in our last report and the results confirm that our tenants desire a
rigorous sustainability program from a leading property manager:
•
Nearly every respondent (95%) believed that working in an environmentally responsible workplace is
important;
•
On average, 83% of respondents felt that it was important to work in a certified green building; and
•
Nationally, only half of respondents commute to work using their own car. This varies significantly by region,
however it gives support for transit access and programs like bike storage and shower facilities.
Specific to sustainability, Morguard received high scores in the following categories:
•
92% of respondents agreed that Morguard is an environmentally responsible company; and
•
89% of respondents agreed that their Morguard-managed building is environmentally responsible.
The results of these satisfaction surveys are a critical engagement tool that provide us with greater insight into
the needs of our tenants on sustainability. We are committed to the process of surveying our enclosed shopping
centre tenants and look to complete that process in 2016.
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GREEN BUILDING CERTIFICATIONS
Green building certifications and award programs have become industry best practices in many asset classes.
There are several benefits to these programs:
•
They demonstrate leadership in the real estate industry;
•
They assist in attracting and retaining tenants and clients;
•
They ensure rigour when implementing cost-saving and efficiency initiatives;
•
They meet the needs of tenants looking for space in certified buildings to attract and retain their workers,
differentiate their offerings, improve their image, reduce costs and satisfy their own stakeholder demands; and
•
They allow for benchmarking of properties, highlighting areas for improvement and providing management
with insight into potential for value growth, emission reductions, increases in occupancy and rent premiums
and achieving lower capitalization rates.
BOMA BESt CERTIFICATIONS
Morguard participates in numerous industry awards and building certification programs. Most significantly, we
obtain certification of our Canadian office and retail properties through BOMA’s Building Environmental
Standards (“BOMA BESt”) program, a national initiative that sets industry standards for the energy and
environmental performance of buildings. We target BOMA BESt certification for all Canadian office properties
over 100,000 square feet and all large, enclosed shopping centres, unless already certified through another
program such as Leadership in Energy and Environmental Design (“LEED”).
In 2015, there were 65 properties certified through BOMA (10 re-certifications this year), an increase in both
the total number (from 48 in 2014) and the square footage of our portfolio certified to BOMA BESt.
OFFICE PORTFOLIO
Level
Level 4 / Platinum
Level 3 / Gold
Level 2 / Silver
Level 1 / Bronze
Number of Properties
1
11
29
6
SF
109,115
2,394,562
5,059,528
657,232
47/56 properties: Office properties totalling 8,220,437 SF/10,482,249 SF = 78%
of Canadian office buildings over 100,000 SF are certified
RETAIL PORTFOLIO
Level
Level 4 / Platinum
Level 3 / Gold
Level 2 / Silver
Level 1 / Bronze
Number of Properties
2
3
5
8
SF
1,472,021
2,489,866
2,372,243
3,851,161
18/20 properties: Retail properties totalling 10,220,737 SF/10,989,566 SF = 93%
of Canadian enclosed shopping centres are certified
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LEED CERTIFICATIONS
Morguard targets CaGBC, United States Green Building Counsel (“USGBC”) or LEED certification as a
minimum on all new development projects. LEED provides a concise framework for identifying and
implementing practical and measurable green-building initiatives, including rating systems for the design,
construction and operation of high-performance green buildings and neighbourhoods. All development projects
targeting LEED certification establish individual efficiency goals according to the desired LEED certification
level. Life cycle analysis tools are used in all LEED projects.
As of 2015, there were 12 LEED-designated properties operating and nine projects targeting LEED designation
in progress. We are especially proud to be targeting the unique LEED Gold Neighbourhood Development
standard for Uptown in Victoria, British Columbia (currently under development).
LEED CERTIFICATIONS OBTAINED IN 2015
Property
2240 Argentia
Performance Court
77 Bloor St. W.
Address
2240 Argentia Rd.
150 Elgin St.
77 Bloor St. W.
City
Mississauga
Ottawa
Toronto
Province/
State
ON
ON
ON
Level of
Certification
Gold
Gold
Gold
Type of Certification
Existing Building
New Construction
Existing Building
City
Victoria
Victoria
Victoria
Belleville
Ottawa
Puslinch
Toronto
Toronto
Chicago
Province/
State
BC
BC
BC
ON
ON
ON
ON
ON
IL
Level of
Certification
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Silver
Gold
Type of Certification
New Construction
New Construction
New Construction
New Construction
New Construction
New Construction
New Construction
New Construction
New Construction
LEED CERTIFIED BUILDINGS IN OPERATION
Property
Uptown Building 3
Uptown Building 13
Uptown The Point
Quinte Courthouse
215 Slater
Maple Leaf Foods Dist. Centre
Archives of Ontario
York University Research Tower
Alta at K Station
Address
3521 Blanshard St.
3531 Uptown Blvd.
3450 Uptown Blvd.
15 Bridge St. W.
215 Slater St.
7474 McLean Rd.
134 Ian MacDonald Blvd.
134 Ian MacDonald Blvd.
555 W. Kinzie St.
TARGETED CERTIFICATIONS IN PROGRESS IN 2015
Property
Uptown Building 15
Uptown Building 18
Address
3600 Uptown Blvd.
3571 Blanshard St.
City
Victoria
Victoria
Province/
State
BC
BC
Level of
Certification
Gold
Gold
Uptown Development
3440 Saanich Rd.
Victoria
BC
Gold
Uptown Whole Foods
11th Avenue Place
Translink Logistics Centre
The Heathview North Tower
The Heathview South Tower
3587 Blanshard St.
11th Ave.
12222 & 12232 Ewing Ave.
320 Tweedsmuir Ave.
310 Tweedsmuir Ave.
Victoria
Calgary
Regina
Toronto
Toronto
BC
AB
SK
ON
ON
Gold
Gold
Gold
Gold
Silver
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Type of Certification
New Construction
New Construction
Neighbourhood
Development
New Construction
New Construction
New Construction
New Construction
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CERTIFIED RENTAL BUILDINGS
Certification of residential properties focuses primarily on Ontario’s Certified Rental Building Program
(“CRBP”), which provides residential tenants with independent quality assurance when selecting an apartment.
The CRBP ensures that member buildings achieve more than 40 standards of practice – reflecting both home
quality and superior tenant service. In 2014, residential property management recertified all 23 of our buildings
in the CRB Program, representing more than 7,200 suites. The certification is renewed every three years and
looks to introduce greater green building indicators in the next iteration.
GREEN BUILDING AWARDS
Coquitlam Centre
Retail
Coquitlam
BC
Sustainability Innovator LEAP Award
Healthcare of Ontario
Pension Plan (HOOPP)
505 3rd St. SW
Office
Calgary
AB
Vitality Award
Calgary Downtown
Association
Penn West Plaza
Office
Calgary
AB
5-Star Energy Cost Index Award
Camfil
Bramalea City Centre
Retail
Brampton
ON
The Outstanding Building of the Year
Award (TOBY)
BOMA International
60 Bloor St. W.
Office
Toronto
ON
Greatest Energy Reduction Award,
Race to Reduce (250,000 to 500,000
square foot category
-10% or greater reduction in energy,
across the four years of the Race
(2011-2014)
CivicAction
77 Bloor St. W.
Office
Toronto
ON
CivicAction
77 Bloor St. W.
Office
Toronto
ON
Lowest Energy Use Award, Race to
Reduce (250,000 to 500,000 square
foot category)
Greatest Energy Reduction Award,
Race to Reduce (250,000 to 500,000
square foot category
-10% or greater reduction in energy,
across the four years of the Race
(2011-2014)
Holt Renfrew Centre
Retail
Toronto
ON
Earth Award
BOMA Canada
The Heathview
Residential
Toronto
ON
Rental Development of the Year
Federation of RentalHousing Providers of
Ontario (FRPO)
Centre de la Cité
Office
Montreal
QC
The Outstanding Building of the Year
Award (TOBY)
BOMA Quebec
Property
Asset Class
City
Prov
Award
Organization
CivicAction
Morguard believes green building certifications and awards communicate to our stakeholders that we are
among the leaders in the industry, take pride in our properties and work hard to manage our facilities with
efficiency in mind. Certifications and awards require sustainability initiatives that enhance property value,
reduce emissions and costs and have the potential to attract and retain tenants.
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INNOVATION – BENCHMARKING AND RENEWABLES
OFFICE BENCHMARKING - ENERGY STAR PORTFOLIO MANAGER
In 2015, we completed a pilot program to setup energy profiles for our Canadian office properties in Natural
Resources Canada’s Energy Star Portfolio Manager. Energy Star enables benchmarking of properties against
a national standard to help prioritize necessary capital upgrades and operational improvements in belowaverage performers.
ENCLOSED SHOPPING CENTRES BENCHMARKING - ICSC
In 2015, we completed a process to measure and analyse the common area energy use of all of our Canadian
enclosed shopping centres. The program is an innovative approach accurately isolating and benchmarking the
common area consumption from tenant consumption. This is critical in managing and reducing the energy use
at our properties. To support industry standards, Morguard provided test data to the International Council of
Shopping Centers (“ICSC”) for the launch of their scorecard benchmarking tool.
RENEWABLES - SOLAR
We maintained our commitment to our rooftop solar power generation program in Ontario, where we have six
installations in operation in 2015. Solar panels require minimal maintenance and operate silently, making solar
energy a clean and safe method of power generation. The rooftop installations, which can be up to 80,000
square feet in size, can produce 500 kilowatts of power on average. Our program capitalizes on the Province
of Ontario’s feed-in tariff incentive program to deliver renewable power into the electricity grid during periods of
peak demand. It also provides us with a new revenue stream from otherwise underutilized rooftops.
PROPERTIES WITH SOLAR POWER INSTALLATION IN OPERATION
Property
City
Province
KW
1205 Corporate Dr.
Burlington
ON
500
1361 Huntingwood Dr.
Toronto
ON
500
20 Commander Blvd.
Toronto
ON
500
326 Humber College Blvd.
Toronto
ON
500
40 Commander Blvd.
Toronto
ON
150
5040 Timberlea Blvd.
Toronto
ON
500
PROPERTIES WITH SOLAR POWER INSTALLATION IN PROGRESS
Property
City
Province
KW
5499 Canotek
Ottawa
ON
150
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RENEWABLES - CREDITS
In 2015, we continued our programs that support renewable energy generation. We purchased Renewable
Energy Certificates (“RECs”) that are tradable, non-tangible energy commodities that represent assured proof
that an amount of electricity (MWh) was generated from an eligible renewable energy resource (renewable
electricity) and was fed into the energy grid on behalf of the certificate owner.
Morguard also partners with Bullfrog Power to purchase renewable energy credits particularly for our LEED
new developments. In 2015, we purchased total of 367.5 MWh of green electricity from Bullfrog Power for the
following 5 properties:
Property
City
Province
Uptown Building 13
Victoria
BC
11th Avenue Place
Calgary
AB
Translink Logistics Centre
2240 Argentia Rd.
Performance Court
Regina
Mississauga
Ottawa
SK
ON
ON
BUILDING PERFORMANCE DATA – MONITORING OUR PROPERTIES
We are pleased to report significant cost savings in 2015 over both 2014 and our baseline year of 2010, through
reductions in energy, water and waste across our managed assets.
Morguard Reductions in 2015
6.9% less energy usage
1.8% less water usage
Morguard Reductions in 2015, since 2010
13.6% less energy usage
18.6% less water usage
Monthly environmental performance measurement for energy, emissions and water is operational for 100% of
our retail and office properties. This report provides a comparison of 2015 performance to 2014 and to the 2010
baseline year. For the 2015 versus 2014 comparison and the 2015 versus 2010 comparison, only those office
and retail buildings that were fully operational over the respective reporting period are included in the data.
Utilities are generally paid directly by tenants in industrial properties; therefore, data is unavailable for
measurement and is out of our reporting control and boundary. Newly acquired and newly developed buildings
and buildings sold during the period were excluded from this analysis, as were some properties where there
were inconsistencies or anomalies in the data. The total percentage of the portfolio analyzed also differed
among energy, emissions, water and waste reporting (specifics are outlined in the respective sections below).
We use a third-party provider to track all utility bills, which includes a separate quality assurance system.
ENERGY AND GHG PERFORMANCE
The energy performance data in this section is based on actual metered energy use as obtained from electricity
and natural gas utility bills. The associated energy-related greenhouse gas emissions are derived using the
most recent (2013) emissions factors as provided by Environment Canada, Greenhouse Gas Division, National
Inventory Report. This energy and greenhouse gases (“GHG”) data represents approximately 95% of square
footage when compared to 2014 (over 23.8 million square feet) and 81% of square footage when compared to
2010 (over 20.1 million square feet) of our owned and managed Canadian office and retail properties, based
on gross leasable area (“GLA”).
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MORGUARD 2015 SUSTAINABILITY REPORT
ENERGY CONSUMPTION – CANADIAN OFFICE AND RETAIL PROPERTIES
The table below provides a summary and comparison of actual (i.e. absolute) energy use in 2015 versus 2014.
It also provides a weather-adjusted and occupancy-adjusted comparison of 2015 versus 2010 (details of the
occupancy and weather model are described on page 35). For office and retail properties combined, actual
electricity and natural gas use decreased by 6.9% in 2015 versus 2014. With weather and occupancy adjustments
taken into account, combined use decreased 13.6% when compared to our 2010 baseline. We reduced usage
by more than 42 million ekWh of energy in 2015 – a significant cost savings and enough energy to power 3,764
homes for a year.
ANNUAL ENERGY CONSUMPTION (ekWh)
Actual 2015 versus Weather and Occupancy
Adjusted 2010
Actual 2015 versus Actual 2014
2014
(ekWh)
2015
(ekWh)
Change
(%)
2010
(ekWh)
2015
(ekWh)
Change
(%)
Office
Retail
250,640,887
176,483,499
240,901,546
168,365,177
-3.9%
-4.6%
228,889,825
165,185,965
188,127,684
145,339,961
-17.8%
-12.0%
Total
427,124,386
409,266,723
-4.2%
394,075,791
333,467,645
-15.4%
137,654,414
49,660,347
187,314,761
119,889,609
42,933,044
162,822,653
-12.9%
-13.5%
-13.1%
101,792,191
36,588,991
138,381,183
89,487,818
37,164,280
126,652,098
-12.1%
1.6%
-8.5%
COMBINED E & NG
388,295,301
Office
226,143,846
Retail
360,791,155
211,298,220
-7.1%
-6.6%
330,682,017
201,774,957
277,615,502
182,504,240
-16.0%
-9.6%
614,439,146
572,089,375
-6.9%
532,456,974
460,119,743
-13.6%
ELECTRICITY
NATURAL GAS
Office
Retail
Total
Total
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MORGUARD 2015 SUSTAINABILITY REPORT
GREENHOUSE GASES AND CARBON EMISSIONS – CANADIAN OFFICE AND RETAIL
PROPERTIES
The table below provides a summary of energy-related greenhouse gas emissions. For office and retail
properties combined, actual energy-related greenhouse gas emissions decreased by 6.5% in 2015 versus 2014.
With weather and occupancy adjustments taken into account, emissions decreased by 23.9% over the period
from 2010 to 2015. The reduction in energy-related greenhouse gases has been greater than the associated
percentage change in energy use. This is due to reductions in greenhouse gas emissions factors, especially in
Ontario which has seen a 41% reduction in the electricity emissions factor in 2015 versus 2010, related to the
replacement of coal fired generation plants with cleaner energy sources. We reduced emissions by 7,996 metric
tonnes in 2015, which is equivalent to eliminating the annual GHG emissions from over 1,480 passenger
vehicles.
ANNUAL ENERGY-RELATED GREENHOUSE GAS EMMISSIONS (tCO2e)
Actual 2015 versus Weather and Occupancy
Adjusted 2010
Actual 2015 versus Actual 2014
2014
(tCO2e)
2015
(tCO2e)
Change
(%)
2010
(tCO2e)
2015
(tCO2e)
Change
(%)
ELECTRICITY
Office
Retail
Total
58,463
30,926
89,389
56,399
29,479
85,878
-3.5%
-4.7%
-3.9%
61,546
38,679
100,225
43,319
29,011
72,330
-29.6%
-25.0%
-27.8%
NATURAL GAS
Office
Retail
Total
25,220
9,035
34,255
21,958
7,812
29,770
-12.9%
-13.5%
-13.1%
18,658
6,658
25,317
16,388
6,764
23,152
-12.2%
1.6%
-8.6%
83,683
39,962
123,644
78,356
37,292
115,648
-6.4%
-6.7%
-6.5%
80,204
45,338
125,542
59,707
35,775
95,482
-25.6%
-21.1%
-23.9%
COMBINED E & NG
Office
Retail
Total
ENERGY INTENSITY – CANADIAN OFFICE AND RETAIL PROPERTIES
The table below provides a comparison of energy use (electricity and natural gas) per square foot based on
GLA. In 2015, overall energy intensity for office and retail properties was 22.3 ekWh per square foot. This
represents a reduction of 13.6% per square foot versus 2010 adjusted for weather and occupancy.
ENERGY INTENSITY BY ASSET TYPE (ekWh/SF/YR)
Weather and Occupancy Adjusted
2010
2015
Change (%)
Office
36.6
30.7
-16.0%
Retail
17.4
15.8
-­‐9.6% Overall
25.8
22.3
-13.6%
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MORGUARD 2015 SUSTAINABILITY REPORT
GHG INTENSITY – CANADIAN OFFICE AND RETAIL PROPERTIES
The table below provides a comparison of GHG intensity per thousand square feet for the office and retail
portfolio and shows that overall 2015 GHG intensity was 4.6 tCO2e per thousand square feet. This represents
a reduction of 23.9% versus 2010 adjusted for weather and occupancy.
GHG INTENSITY BY ASSET TYPE (tCO2e/1000SF/YR)
Weather and Occupancy Adjusted
2010
2015
Change (%)
Office
8.9
6.6
-25.6%
Retail
3.9
3.1
-21.1%
Overall
6.1
4.6
-23.9%
ELECTRICITY PERFORMANCE – U.S. RETAIL PROPERTIES
The table below provides a summary and comparison of actual electricity use. In this report we focus on tracking
reductions in electricity use at our U.S. enclosed shopping centres, as the majority of them use electricity for
heating rather than natural gas. Actual electricity use was down 3.3% in 2015 versus 2014. With weather and
occupancy adjustments taken into account, combined use decreased 5.0% versus 2010.
Electricity use is being tracked at 16 retail properties in the U.S. that were operational over the 2014 and 2015
period. The 2015 to 2010 comparison is a subset of 12 properties that were fully operational since baseline,
representing 81% of the 2015 square footage.
ANNUAL ELECTRICITY CONSUMPTION U.S. RETAIL (kWh)
Actual 2015 versus Weather and Occupancy
Adjusted 2010
Actual 2015 versus Actual 2014
2014
(kWh)
2015
(kWh)
Change
(%)
2010
(kWh)
2015
(kWh)
Change
(%)
6,038,910
5,837,298
-3.3%
5,610,877
5,330,781
-5.0%
ELECTRICITY
U.S. Retail
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MORGUARD 2015 SUSTAINABILITY REPORT
WATER PERFORMANCE
The data presented in this section represents the performance of a subset of buildings that were operational
during 2015 and for which we receive bills directly. Newly acquired and newly developed buildings and buildings
sold during the period were excluded, as were a small number of properties where there were anomalies in the
data. The data also provides a weather-adjusted and occupancy-adjusted comparison of 2015 to our 2010
baseline.
This water analysis therefore represents approximately 72% of the GLA of Morguard’s Canadian office and
retail properties, representing 18.0 million square feet.
WATER CONSUMPTION – CANADIAN OFFICE AND RETAIL PROPERTIES
The table below provides a summary and comparison of actual water use in 2015 versus 2014. It also provides
a weather-adjusted and occupancy-adjusted comparison of 2015 versus 2010. For the office and retail portfolio,
actual water use decreased 1.8% in 2015 versus 2014. With weather and occupancy adjustments, use
decreased 18.6% over the period from 2010 to 2015.
3
The 2015 annual reduction of 32,333 m is a sizable water reduction – it is the equivalent of 13 Olympic
swimming pools.
ANNUAL WATER CONSUMPTION
Actual 2015 versus Weather and
Occupancy Adjusted 2010
Actual 2015 versus Actual 2014
2014
3
(m )
2015
3
(m )
Change
(%)
2010
3
(m )
2015
3
(m )
Change
(%)
Office
704,578
705,444
0.1%
896,747
655,303
-26.9%
Retail
1,081,567
1,048,368
-3.1%
1,083,743
956,865
-11.7%
Total
1,786,145
1,753,812
-1.8%
1,980,490
1,612,168
-18.6%
WATER INTENSITY – CANADIAN OFFICE AND RETAIL PROPERTIES
The table below provides a comparison of water use per square foot based upon the GLA of the selected
3
properties noted above. Overall, water intensity for office and retail properties in 2015 was 86.6 m per square
foot per year, a reduction of 18.6% versus 2010 adjusted for weather and occupancy.
WATER INTENSITY BY ASSET TYPE (L/SF/YR)
Weather and Occupancy Adjusted
2010
2015
Change (%)
Office
99.0
72.4
-26.9%
Retail
113.4
100.1
-11.7%
Total
106.4
86.6
-18.6%
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MORGUARD 2015 SUSTAINABILITY REPORT
WASTE PERFORMANCE
Consistently tracking waste presents many challenges due to a lack of uniform reporting from hauling
contractors and an absence of national standardization agencies. We have designed a unique waste-tracking
template that has been piloted across our portfolio. We are getting better data every year. In 2010 we captured
waste data on a subset of 60 properties, and we are proud to present data on 80 properties for 2015.
WASTE PERFORMANCE – CANADIAN OFFICE AND RETAIL PROPERTIES
The tables below summarize the waste performance for the combined Canadian office and retail portfolio, the
office portfolio, and the retail portfolio, respectively.
The percentage of waste recycled for the combined office and retail portfolio was 51.5% in 2015 versus 40.3%
in 2010.
WASTE PERFORMANCE (tonnes)
OFFICE AND RETAIL PORTFOLIO
2010
2015
Properties Represented
Total Waste Generated
Total Recycled
Waste to Landfill
60
10,519
4,240
6,279
80
14,317
7,378
6,939
% of Total Waste Recycled
40.3%
51.5%
WASTE PERFORMANCE (tonnes)
Properties Represented
Total Waste Generated
Total Recycled
Waste to Landfill
% of Total Waste Recycled
WASTE PERFORMANCE (tonnes)
Properties Represented
Total Waste Generated
Total Recycled
Waste to Landfill
% of Total Waste Recycled
OFFICE PORTFOLIO
2010
2015
45
4,366
2,036
2,330
56
4,408
2,367
2,042
46.6%
53.7%
RETAIL PORTFOLIO
2010
2015
15
6,154
2,204
3,949
24
9,909
5,011
4,898
35.8%
50.6%
These overall energy, emission, water and waste reductions are a testament to the hundreds of property
management employees who work every day to reduce our environmental impacts through increased efficiency
– and thereby meet the needs of our clients, tenants and other stakeholders.
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MORGUARD 2015 SUSTAINABILITY REPORT
SUSTAINABLE DEVELOPMENT – BUILDING AND SUPPORTING OUR
COMMUNITIES
We recognize that as a real estate owner, manager and developer, we have a significant impact on the
communities in which we operate. We also have a unique responsibility to contribute to their sustainability by
creating properties of enduring value, and investing and participating in community initiatives.
OUR DEVELOPMENTS
Through our developments, Morguard has a major impact on city building and the design of major centres
across Canada. The Morguard development process aims to have a positive effect on the community and leave
a brand legacy that, in turn, facilitates our entry into new communities.
Morguard also funds or donates to off-site community improvements when undertaking new developments or
completing major renovations. Examples include: playground and park equipment (The Heathview, Toronto, ON;
St. Laurent, Ottawa, ON); road and traffic improvements including enhanced pedestrian walkways, bike paths,
and streetscape (The Heathview; Performance Court, Ottawa, ON; Uptown, Victoria, BC; Bramalea City Centre,
Brampton, ON); public art (The Heathview, Uptown, Performance Court); public benefit space (Uptown,
Performance Court); support to local charitable causes (Performance Court); and local hospital and school
improvements (The Heathview, Uptown, Bramalea City Centre).
PUBLIC CONSULTATION
Morguard is regularly involved in public consultation to ensure that we meet the needs of local communities
and address critical issues. We regularly go above and beyond best practices and consult with a wide range of
neighbourhood stakeholders, including community organizations, municipal staff and business improvement
associations.
An exemplary consultation process was implemented during the development of Performance Court in Ottawa,
where input from the community and municipality provided valuable feedback. The resulting development has an
entrance uniquely situated between a heritage building and a historic church, and includes a 6,000 square foot
public roof top terrace amenity for tenants of the building, the Ottawa community and visitors to the nation’s capital.
We also strive to source and retain local consultants, contractors and suppliers. These practices engender
goodwill and provide insight into community concerns.
HABITAT PROTECTION AND SITE SELECTION
We are committed to protecting local habitats and, where appropriate, selecting sites that can be redeveloped
or remediated and/or can undergo environmental restoration, thereby contributing to the sustainability of the
community and the greater region. During site development, it is our standard practice to use a range of lowimpact tools such as local planting materials and comprehensive storm water management programs (including
systems for retaining and purifying water before release).
The expansion of Bramalea City Centre in Brampton encountered a significant challenge as approximately onequarter of the site – a greyfield area of about 15 acres – sits in a designated flood plain. To protect plant and
animal life against flooding, Morguard enhanced storm water retention using cisterns and green roofs and
installed permeable pavers and bioswales. In addition, the watercourse was upgraded in co-operation with the
Toronto and Region Conservation Authority.
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MORGUARD 2015 SUSTAINABILITY REPORT
CHARITY PROGRAMS – SUPPORTING OUR COMMUNITIES
Central to Morguard’s role as a real estate company is our commitment to be an integral part of the communities
in which we operate. We want to have a lasting, positive impact through responsible development and property
management, corporate donations, fundraising initiatives and employee volunteering.
To help our communities prosper, Morguard supports a broad range of social causes through community
organizations. When it comes to our people, we focus efforts on teamwork and education. We allow the
passions of Morguard’s employees to motivate them to help make our communities better places to live, and to
do business.
Using Morguard’s national presence, we champion issues at the local, regional and national level that have an
impact on the built environment. Our goal is to ensure both socially and physically sustainable communities for
generations to come.
Our efforts to strengthen the communities in which we operate include both direct charitable giving and providing
support to social cause marketing campaigns.
Once again, in 2015, Morguard employees, tenants and other business partners came together to raise funds
for a wide variety of charitable causes. Among them:
•
Morguard Charity Golf Classic – In 2015, The Morguard Charity Golf Classic raised $150,000. We donated
the funds raised to Trillium Health Partners Foundation. The Golf Classic has raised more than $750,000
over its five year history. In the past, the Golf Classic has supported great organizations such as Ingles
House, Interim Place, Peel Kids’ Foundation, Habitat for Humanity Mississauga, the Mississauga
Foodbanks and CAMH;
•
Drop Zone for Easter Seals – Morguard’s Ottawa Office sponsored and hosted an event where 70
participants rappelled down the side of a building that raised more than $93,000 for Easter Seals. The
event has raised more than $600,000 over the past six years;
•
Stuff The Bus - The Centre in Saskatoon, SK partnered with a local radio station to support the Saskatoon
Food Bank and Learning Centre. More than 15,000 pounds of food was collected and $40,000 in cash
was raised;
•
Covenant House Executive Sleep Out – Morguard participated in a street sleep out to generate awareness
and raise money for homeless kids. Morguard raised $12,000. The local effort was part of an international
event that happened simultaneously at 15 other Covenant House sites across North America raising more
than $6 million;
•
The Inside Ride – for the past four years, Morguard employees have participated in the Inside Ride, an
event to support kids with cancer, hosted by the Coast to Coast Against Cancer Foundation. In 2015,
Morguard raised more than $20,000 for this cause, with a four year total of $154,500; and
•
I AM SOMEONE - The Morguard team at Coquitlam Centre in Coquitlam, BC introduced a cause related
marketing campaign, I AM SOMEONE, Canada’s first anti-bullying help text messaging service in the TriCities area. Titled txt2TALK, the centre raised more than $20,000, but more importantly, the campaign
resulted in an extension to the entire Lower Mainland.
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21
MORGUARD 2015 SUSTAINABILITY REPORT
The chart below outlines our direct financial charitable donations. These figures include donations to charitable
organizations and corporate sponsorships (such as purchasing a table at a fundraising dinner).
MORGUARD'S DIRECT CHARITABLE DONATIONS AS A PERCENTAGE OF EARNINGS
BEFORE TAX
Net charitable contributions and sponsorships
Earnings before income taxes
Charitable giving as percentage of earnings before
income taxes
2010
2014
2015
$276,020
$191,545
$212,231
$252,014,000
$203,897,000
$182,250,000
0.11%
0.09%
0.12%
Striving to improve the communities in which we operate, either by reducing the impacts of our developments or
through localized philanthropy, is not only our responsibility – it is also good business. It enhances public
relations efforts, mitigates related risks, reduces costs and, ultimately, ensures that our properties are valuable
to the communities of which they are a part. Engaging employees in such community-building activities
improves satisfaction and retention, while positively contributing to society.
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MORGUARD 2015 SUSTAINABILITY REPORT
RESPONSIBLE EMPLOYER – EMPOWERING OUR PEOPLE
Sustainability is about more than just properties and the environment – it’s also about people. We strive to
create a workplace culture of respect, inclusion, health, safety and equal opportunity. By empowering our
people, we aim to attract, retain and engage the high-quality talent needed to drive business success and
ultimately lead to a sustainable company. In recognition of our efforts, Morguard was named among the Top
35 of Aon Hewitt’s 2014 Best Employers in the Greater Toronto Area.
The company was also recognized as one of Canada’s Safest Employers for the third year in a row, achieving
Silver in 2015 and back-to-back Gold Award in 2013 and 2014, in the Retail and Services category for its Canadian
commercial portfolio in the Thomson Reuters Awards program. Judging criteria was based on leadership and
management support, employee engagement, communication, innovation and injury statistics.
OUR PEOPLE
In 2015, Morguard employed 1,528 people (1,259 in Canada and 269 in the U.S. Details of our various
employment metrics follow.
EMPLOYEES BY EMPLOYMENT CONTRACT
Permanent Full-Time
Permanent Part-Time
Temporary Full-Time
Temporary Part-Time
Total Employees
2014
%
2015
%
Canada
U.S.
Canada
U.S.
Canada
U.S.
Canada
U.S.
990
196
158
10
41
0
33
0
81%
95%
13%
5%
3%
3%
-
1,013
262
142
7
48
0
56
0
81%
97%
11%
3%
4%
4%
-
Canada
U.S.
1,222
206
1,259
269
EMPLOYEES BY EMPLOYMENT TYPE
Administrative/Operations
Professional/Technical
Middle Management
Senior Management
Executives
MORGUARD.COM
Canada
U.S.
Canada
U.S.
Canada
U.S.
Canada
U.S.
Canada
U.S.
2014
%
2015
%
822
95
199
74
95
30
84
4
22
3
67%
46%
16%
36%
8%
15%
7%
2%
1%
1%
819
157
225
63
104
39
88
9
23
1
65%
58%
18%
23%
8%
15%
7%
3%
2%
<1%
23
MORGUARD 2015 SUSTAINABILITY REPORT
EMPLOYEE TURNOVER
Employee Turnover
BY GENDER
Males
2014
%
2015
%
Canada
U.S.
292
61
24%
30%
270
62
21%
23%
Canada
107
37%
108
40%
21
34%
34
55%
185
40
63%
66%
162
28
60%
45%
138
9
81
32
73
20
47%
15%
28%
52%
25%
33%
96
15
100
29
74
18
36%
24%
37%
46%
27%
29%
U.S.
Females
BY AGE
Under 30
30–50
50+
Canada
U.S.
Canada
U.S.
Canada
U.S.
Canada
U.S.
EQUAL OPPORTUNITY AND DISCRIMINATION
Our Code of Business Conduct (“Code”) addresses matters of equal opportunity and workplace harassment. A
concern for personal dignity and the individual worth of each person is an indispensable element of the
standards established under our Code. Morguard provides equal employment opportunity to all qualified
persons.
When joining Morguard, all employees agree to abide by our Code and to maintain a workplace free of
harassing or discriminating behaviour, particularly with respect to race, colour, gender, age, faith, national or
ethnic origin, sexual orientation, gender identity, or disability. We define harassment to include a variety of
unacceptable conduct, including violence, unwelcome sexual advances, gestures, jokes, slurs, bullying and
verbal or physical conduct that upsets the work performance of another. Violation of our Code can result in a
range of disciplinary actions, including termination of employment.
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MORGUARD 2015 SUSTAINABILITY REPORT
DIVERSITY
DIVERSITY BY GENDER AND EMPLOYMENT TYPE
Employment by Gender and Type
EMPLOYMENT BY GENDER
Males
Females
2014
%
2015
%
Canada
U.S.
Canada
U.S.
548
97
674
109
45%
47%
55%
53%
565
127
694
142
45%
47%
55%
53%
Canada
U.S.
Canada
U.S.
Canada
U.S.
Canada
U.S.
Canada
U.S.
350
20
81
67
45
6
55
2
17
2
29%
10%
7%
33%
4%
3%
4%
1%
1%
1%
342
102
98
12
52
6
55
6
18
1
27%
38%
8%
4%
5%
2%
4%
2%
1%
<1%
Canada
U.S.
Canada
U.S.
Canada
U.S.
Canada
U.S.
Canada
U.S.
472
75
118
7
50
24
29
2
5
1
39%
36%
10%
3%
4%
12%
3%
1%
<1%
<1%
477
55
127
51
52
33
33
3
5
0
38%
20%
10%
19%
4%
12%
3%
1%
<1%
-
2014
%
2015
%
Canada
U.S.
Canada
U.S.
Canada
U.S.
211
37
527
99
484
70
17%
18%
43%
48%
40%
34%
231
56
530
133
498
80
18%
21%
42%
49%
40%
30%
Canada
U.S.
Canada
U.S.
Canada
U.S.
68
18
231
42
249
37
6%
9%
19%
20%
20%
18%
70
21
237
57
258
49
6%
8%
19%
21%
20%
18%
Canada
U.S.
Canada
U.S.
Canada
U.S.
143
19
296
57
235
33
12%
9%
24%
28%
19%
16%
161
35
293
76
240
31
13%
13%
23%
28%
19%
12%
EMPLOYMENT TYPE BY GENDER
MALES
Administrative/Operations
Professional/Technical
Middle Management
Senior Management
Executive
FEMALES
Administrative/Operations
Professional/Technical
Middle Management
Senior Management
Executive
Diversity by Age and Gender
BY AGE
Under 30
30–50
50+
MALES BY AGE
Under 30
30–50
50+
FEMALES BY AGE
Under 30
30–50
50+
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MORGUARD 2015 SUSTAINABILITY REPORT
EMPLOYMENT COMPENSATION AND BENEFITS
Our compensation and benefits program is intended to attract, motivate and retain high-quality employees. Base
salary and bonus programs reward performance and responsibility. Each year, we review third-party
employment surveys to ensure that our compensation and benefits plans are competitive with those of our
peers in the real estate industry.
In Canada, Morguard provides health, dental and life insurance programs for all eligible employees and pays
100% of the associated premiums. As well, we provide a non-contributory, defined-contribution pension plan
program to eligible employees.
EMPLOYMENT COMPENSATION AND BENEFITS
Employment
Vacation
Group Life Insurance,
Extended Health Care,
Employee Assistance, and
Travel Assistance
Short-Term
Disability
Coverage
Long-Term
Disability
Coverage
Canada
Permanent
Paid vacation
allowance; 15
days per annum,
up to sixth year;
increases
thereafter
Yes, based on a minimum 20
hours of work per week
Yes – Full-time and
part-time (working
more than 20
hours/week) salaried
employees
Salary or hourly
Salaried
employees (working employees
more than 20
eligible
hours/week), except
those employees
receiving lodging
benefits
Hourly paid
employees or those
working fewer than
20 hours/week
through Canada
Employment
Insurance Program
Morguard
Pension Plan
U.S.
Permanent,
Full time
One to five years
service: 80 hours
paid, up to sixth
year; increases
thereafter
Employer paid 1 X annual salary
life with AD&D; employer shares
cost of medical; employee pays
100% of dental and vision
coverage
Accrued time in
catastrophic illness
bank
Full time only (35+
hours); salary or
hourly employee
pays 100% of LTD
premium
401k plan;
employer
matches up to
5% of
compensation if
employee
participates
Canada
Temporary
4% of earnings
n/a
Canada
Employment
Insurance Program
n/a
n/a
COLLECTIVE AGREEMENTS
Less than 2% of our workforce is unionized. Four employees in Canada are governed by a collective agreement
between Morguard and the International Union of Operating Engineers (Local 772). Seventeen employees in
Canada are governed by a collective agreement between Morguard and the Universal Workers Union L.I.U.N.A.
(Local 183). All employees are treated with dignity and respect, and annual reviews are undertaken to ensure
that compensation and benefits programs are competitive within the relative markets. Further, Morguard
respects the applicable employment legislation in any jurisdiction in which it operates.
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MORGUARD 2015 SUSTAINABILITY REPORT
HEALTH AND SAFETY PROGRAMS
Our employees record over three million work hours annually in various environments, including construction
sites and facility maintenance. We are committed to providing them with a clean, safe and healthy work
environment.
To achieve this goal, we all must recognize a shared responsibility; follow all safety rules and practices; cooperate with the government officials who enforce safety legislation; take necessary steps to protect ourselves
and fellow employees; attend required safety training and immediately report all accidents, injuries and unsafe
practices or conditions.
Our Health and Safety group works to identify, prevent and mitigate the risks of workplace accident, injury or
illness and to provide us with the required tools to comply with the requisite health and safety legislation. To
that end, the department manages the Morguard health and safety policy and procedures, as well as the
Morguard emergency and evacuation procedures. In addition, our workforce is represented at all levels of the
company on a formal Health and Safety committee, which oversees employee concerns.
The main components of our health and safety initiatives include employee and expert consulting, training,
record-keeping, communication and monitoring of relevant legislation and industry best practices.
The Morguard contractor management program is a key component of our health and safety management
programs. As a part of our stringent prequalification process, each contractor is required to sign the Morguard
Contractor Safety Manual as well as provide copies of their OHS policy, records of training for their employees
and evidence of their safety programs. Contractors that are non-compliant are not permitted to work at Morguard
properties. The CMP is electronically maintained and continuously monitored for compliance.
In 2015, Morguard implemented a new Morguard OHS Management System. The OHS is an online tool that
promotes engagement of all sites and houses all of our OHS programs/documentation, including all contractor
documentation. It is an open system to which all employees have access. All properties can see information on
the full portfolio (but can only manipulate data on their own site). The tool has enabled Morguard to monitor and
track the program across the company for compliance with increased rigour.
In 2015, our injury rate remained well below industry standards and our total Canadian reportable workplace
injuries declined from 6 to 3, a decrease of 50% when comparing like metrics to 2014. Note that all injuries in 2015
were minor strains, pinches and slips.
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MORGUARD 2015 SUSTAINABILITY REPORT
OCCUPATIONAL HEALTH AND SAFETY1
LOST-TIME INJURY RATES2
Lost-time injury rate per 100 employees (Canada & U.S.)
Change in lost-time injury rate per 100 employees (Canada & U.S.)
year-over-year
2014
2015
0.7
0.5
-
28% decrease
Lost-time injury rate per 100 employees (Canada Office & Industrial)
0.4
0.2
Lost-time injury rate per 100 employees (Canada Residential)
1.8
0.5
Lost-time injury rate per 100 employees (Canada Retail)
0.4
0.2
Lost-time injury rate per 100 employees (U.S.)
2.4
1.9
2014
2015
26
55
2014
2015
11
8
Total reported workplace injuries that involve lost employee time (Canada)
6
3
Change in total reported workplace injuries that involve lost employee time
(Canada) year-over-year
57% decrease
50% decrease
5
5
50% decrease
0%
Reported workplace injuries (Canada Office)
3
1
Reported workplace injuries (Canada Retail)
1
1
Reported workplace injuries (Canada Residential)
2
1
WORKPLACE FATALITIES
2014
2015
Workplace Fatalities (Canada & U.S.)
0
0
LOST WORK DAYS
Total number of lost work days (Canada & U.S.)
REPORTED WORKPLACE INJURIES
Total reported workplace injuries that involve lost employee time
(Canada & U.S.)
Total reported workplace injuries that involve lost employee time (U.S.)
Change in total reported workplace injuries that involve lost employee time
(U.S.) year-over-year
1
The number of employees used for OH&S calculations is based on active employees excluding those on leave and therefore this figure
may differ from the total employee count. Leave includes employees on maternity/paternity, long-term disability, personal sick leave or
workplace safety insurance board related cases.
2
For calculating injury rates, the 200,000 figure represents the total number of hours worked by 100 employees in one year, based on 50
work weeks at 40 hours per 2,000 total hours per employee
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MORGUARD 2015 SUSTAINABILITY REPORT
TRAINING AND PROFESSIONAL DEVELOPMENT
Our learning management system (“LMS”) is a key content delivery platform of Morguard’s training and
development program. It offers a library of on-demand resources with over 900 eLearning courses, sessions
and materials on topics that align to Morguard’s specific requirements including core competencies, company’s
process and tools, compliance, desktop productivity and other soft and technical skills. The content library
includes an online sustainability course that has been completed by 145 of Morguard’s sustainability champions
including most of senior management.
In 2015, we introduced new learning content on soft skills (by Cegos) and book summaries by getAbstract, both
of which have become popular with employees. A new on-demand video library by Microsoft and TED Talks
has been added to offer bite-size learning opportunities and thought-provoking ideas. In 2015, a total of 12,996
training hours (11.87 training hours per learner) were completed by 1,095 users of Morguard’s learning
management system. The training activities in 2015 result from various technology-related initiatives, in
particular the introduction of Office 365, new communication tools such as Skype, and other technology
improvements.
TRAINING
2014
2015
2014
2015
NonManagement
NonManagement
Management
Management
Total Employees eligible for
1
training
835
831
265
264
1,100
1,095
Training hours by employee
category
Total training hours per
employee category
Training hours per user
5,548
6.64
10,550
12.70
1,477
5.57
2,446
9.26
7,025
6.39
12,996
11.87
2,340
7,686
845
1,336
3,185
9,021
499
623
172
253
671
876
619
2,091
455
1,786
333
128
211
646
952
2,219
666
2,432
1,882
966
378
2,222
4,392
1,581
2,030
2,548
833
155
54
435
491
650
882
423
2,815
1,121
432
2,657
4,883
2,231
2,912
2,971
Total training hours by
training type
e-learning
Self-learning (user
documentation)
Class/WebEx-powered
sessions
2
External
Total training hours by
subject
Morguard processes and
tools
Compliance
Desktop productivity
Other soft and technical skills
2014
2015
Total
Total
1
Represents an average number of employees in Canada who are eligible for access to the Morguard Learning Management System.
(Those excluded are a group within our Canadian Residential division (superintendent level and below) and temporary employees who
are with us on a term less than six months).
2
As at August 1, 2014, the LMS was utilized to record all third-party external training sponsored by the company.
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MORGUARD 2015 SUSTAINABILITY REPORT
PERFORMANCE REVIEWS
By ensuring that all eligible employees receive an annual performance review, we foster a culture of
responsibility and recognition for the contributions that employees make toward achieving business goals. This
initiative is a critical tool for engaging employees in the organization’s strategic priorities and providing effective
feedback and opportunities for professional development.
We track performance review matters separately in Canada and the U.S. and the figures below represent our
Canadian operations. Temporary or new permanent employees with fewer than three months of service, and
employees on leaves for more than 50% of the performance review period are ineligible for annual reviews.
The percentage of employees who received reviews has increased over the past four years, largely due to
our switch to a web-based employee performance management tool in 2012, which makes it easy for
managers and their staff to set and track performance goals.
ANNUAL EMPLOYEE PERFORMANCE REVIEWS (CANADA)
2010
2014
2015
Performance reviews completed
855
903
853
Eligible employees
983
968
951
Percent coverage
87%
93%
90%
People are the means through which any organization takes action to improve its performance. We strongly
believe that an engaged and motivated workforce is our greatest asset in enhancing stakeholder value and,
ultimately, leading to a sustainable company.
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MORGUARD 2015 SUSTAINABILITY REPORT
OUR SUSTAINABLE HOUSE – LEADING BY EXAMPLE
As both a landlord and a tenant, we strive to “walk the walk” in our corporate offices first, inspiring our
stakeholders to join us. We regularly pilot innovative sustainability initiatives in our own offices before applying
them in tenant spaces.
As a corporation, we also demonstrate our commitment to sustainability through compliance in environmental
affairs and implementation of responsible governance practices.
GREENING OUR OFFICES COMMITTEE
Morguard is actively working to reduce the environmental impacts of operations at our 11 corporate offices
across Canada and the U.S. Our strategy is to engage our employees in doing their part and, in turn, use the
lessons learned to engage our tenants in improving their spaces. Office representatives follow an internal bestpractice information guide on reducing our offices’ environmental footprints and addressing opportunities such
as consumable supplies, kitchen and cleaning materials, catering and composting.
ENVIRONMENTAL POLICIES AND PROCEDURES – ENVIROLINK
In 1994, our Environmental Affairs group was created to monitor the compliance of all Morguard properties with
relevant environmental legislation, identify potential risks, and implement environmental policies and
procedures.
The group developed EnviroLink our proprietary, web-based portal to assist with the management of
environmental issues across our vast portfolio. EnviroLink tracks all work done at our properties by our
Environmental Affairs group and third-party consultants. Our environmental management system (“EMS”)
combined with EnviroLink streamlines environmental management, regulatory compliance, and the reporting of
related information into one simple tool. Morguard employees and third-party consultants can access EnviroLink
to track remediations, phased site assessments and all relevant property documentation.
Our EMS incorporates policies and procedures related to environmental legislative compliance. It is applied to
remediations and assessments during all stages of the property cycle, including acquisition, development,
and daily property management. It is tailored to issues surrounding PCBs, asbestos, CFCs, mould and
storage tanks, as well as tenant relations and incident reporting. Although our EMS is not externally certified,
it complies with all relevant legislation and industry best practices.
Our Environmental Affairs group also facilitates employee training programs on critical environmental health
and safety topics such as annual asbestos training.
In 2015, Environmental Affairs underwent a process to upgrade EnviroLink and its EMS systems. The
upgraded system will be completed in 2016 and provide external contractors greater access to, and an
increased alignment with, our enterprise financial systems for increase data integrity.
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MORGUARD 2015 SUSTAINABILITY REPORT
LAND CONTAMINATION, REMEDIATION AND COMPLIANCE
We are committed to environmental compliance and best practices in safe land remediation, the removal of
toxic materials/hazardous waste and the restoration of natural environments. Our Environmental Affairs group
handles property remediation and deals with hazardous waste management, storage and disposal.
Contaminated soil or groundwater classified as hazardous is not typically generated from our remediation
programs, and none was generated in 2015. Any hazardous waste generated on a Morguard property in relation
to building management is properly documented and disposed of according to the appropriate authorities.
Hazardous waste produced by a tenant’s operations is the tenant’s responsibility, and tenants are required under
their leases to safely remove and dispose of such waste. As such, the hazardous waste types and volumes
generated by tenants are beyond the scope of this report.
Morguard applies significant resources to ensure that its environmental affairs are dealt with to a standard that
meets legislative compliance and the needs of our tenants, clients and community. In 2015, the operating
budget for our internal environmental team was approximately $1.0 million. In the same period, Morguard
committed over $8.2 million in project costs and resources toward environmental matters ranging from Phase
1 environmental site assessments (“ESA”) and annual asbestos inspections to full-scale soil and groundwater
remediation. Most of our large-scale remediation projects are covered by our insurance partners, and site work
is often done in partnership with tenants through regular operating costs. Morguard was not fined or sanctioned
for non-compliance with environmental laws and regulations in 2015.
Morguard also manages, remediates and tracks all spills at its properties. In 2015, Morguard’s environmental
team tracked 29 spills on managed properties with an approximate volume of 277.5 L and 2.3 KGS. These
figures include even very minor spills such as a fuel leak from a customer’s vehicle in a shopping centre parking
area.
Along with our EMS program and sustainability principles, we have applied tools such as the “precautionary
approach” to our sustainability activities. The precautionary approach states that where there are threats of serious
or irreversible damage, a lack of full scientific certainty will not be used as a reason for postponing cost-effective
measures to prevent environmental degradation or public harm. Examples of the utilization of this approach are
outlined throughout this report, and they include our preventive approaches toward environmental protection, our
program of regular environmental site assessments and our occupational health and safety programs.
We believe that taking responsibility for identifying and managing the environmental impacts of our business is
a vital step toward achieving sustainability. It adds value to our properties, ensures that employees and tenants
are safe, reduces legal and public relations risks and demonstrates a commitment to being a leading property
manager.
Our commitment to lead by example, from the greening of Morguard’s offices to the utilizing of first-class
environmental management systems, is intended to inspire others to join us on our sustainability journey.
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MORGUARD 2015 SUSTAINABILITY REPORT
RESPONSIBLE GOVERNANCE
Morguard is committed to excellence in corporate governance and recognizes that it is essential to the wellbeing of any corporation.
Our Board of Directors and its four subcommittees regularly review and update governance practices in keeping
with their fiduciary duties and our strategic vision. The Board receives routine information from management on
all aspects of the Morguard operation, including sustainability risks and opportunities, and is involved in a yearly
corporate planning process that culminates in an annual strategic plan. The annual strategic plan forms the
basis on which the Board evaluates the performance of management, both in executing the plan and in
identifying corporate risks and opportunities. The Corporate Governance and Nominating Committee of the
Board provides guidance on our sustainability report and in so doing ensures that ESG performance indicators
are reviewed at least annually.
BUSINESS CONDUCT
Our commitment to high ethical standards and corporate responsibility is reflected in our Code of Conduct,
which applies to all directors, officers and employees. The Human Resources Committee of the Board monitors
compliance and ensures that all employees review and formally acknowledge their compliance with our Code
every two years.
We strive to maintain positive, professional and appropriate relationships with public officials and government
agencies and strictly forbid any inappropriate lobbying activities. Our Code of Conduct provides specific
guidance with respect to customer and government relationships, gifts and entertainment, bribery, money
laundering and the avoidance of conflicts of interest. It specifically forbids the giving, offering, authorizing, or
taking of bribes of any kind, including, but not limited to, money, favours, unusual gifts or entertainment, or the
like.
Known or suspected violations of our Code must be immediately reported to a supervisor or other senior
authority within the company. Our Whistleblower Policy ensures that nobody who, in good faith, reports such a
violation will suffer any negative consequences. Detailed procedures are available to all staff and include a
confidential Ethics Hotline.
RESPONSIBLE CONTRACTING
We require contractors and suppliers to maintain rigorous operational and ethical standards. Pre-qualification
guidelines incorporate strong standards for the hiring of building service contractors, including maintenance,
security, and cleaning staff. These guidelines serve to reduce public relations risk, increase goodwill and ensure
that contractors provide professional service to Morguard’s properties and tenants while respecting their own
employees. They have been externally reviewed and ranked as leading practices among Canadian commercial
real estate companies.
For full disclosure of Morguard’s governance practices, including executive compensation, please see
Morguard Corporation’s most recent Management Information Circular, which is posted to SEDAR and
accessible from the Investor Relations section of morguard.com.
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MORGUARD 2015 SUSTAINABILITY REPORT
APPENDIX A – GLOSSARY
BOMA
Building Owners and Managers Association
BOMA BESt
BOMA Building Environmental Standards
CaGBC
Canadian Green Building Council
CDD
cooling degree days
CRB
Certified Rental Building
CRESS
construction and real estate sector supplement
CSR
corporate sustainability and responsibility
ekWh
equivalent kilowatt hours
EMS
environmental management system
ESG
environment, social, and governance
GHG
greenhouse gas
GLA
gross leasable area
GREEN LINK
Morguard’s proprietary green building program
GRI
Global Reporting Initiative
HDD
heating degree days
ICSC
International Council of Shopping Centers
KW
kilowats
LEED
Leadership in Energy and Environmental Design
PJ
petajoule
REALpac
Real Property Association of Canada
REC
Renewable Energy Credit
RPI
responsible property investment
SF
square feet
tC02e
tonnes of carbon dioxide equivalent
USGBC
United States Green Building Council
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MORGUARD 2015 SUSTAINABILITY REPORT
APPENDIX B – BUILDING PERFORMANCE – WEATHER AND
OCCUPANCY MODEL
The following tables represent the model used to correct for changes in weather and occupancy.
The occupancy impact is based upon:
• A building model of both natural gas and electricity related energy use and activity type, as provided by the
NRCAN Energy Use Data Handbook – January 2011. Utilizing national statistics, this provides the percentage
of energy use related to a specific end-use activity such as lighting, space cooling, auxiliary equipment (plug
load), etc.
• An estimate, by activity type, of the percentage of the property that is occupancy-impacted. For example,
auxiliary equipment is assumed to be 100% impacted by occupancy. Space heating and cooling are assumed
to be 25% impacted by occupancy (i.e. a change in occupancy of 10% will result in a 2.5% change in the energy
use associated with heating and cooling).
For natural gas, the net impact of a 10% change in occupancy is a 3.5% change in natural gas use.
For electricity, the net impact of a 10% change in occupancy is a 6.9% change in electricity use.
For water, the net impact of a 10% change in occupancy is a 9.0% change in water use.
Weather sensitivity is based upon changes in heating degree-days (“HDD”) for natural gas and cooling degreedays (“CDD”) for electricity and water. Weather corrections were applied at a provincial level using a major city
as a proxy for the province. The weather stations used were Vancouver, Calgary, Regina, Winnipeg, Toronto
and Montréal.
The assumed relationship between changes in degree-days and energy use is as follows:
• A 10% change in HDD results in a change in natural gas use of 8.8%.
• A 10% change in CDD results in a change in electricity use of 1.1%.
• A 10% change in CDD results in a change in water use of 1.3%.
Commercial Sector – Energy Use and Activity Type
Determination of Impact of Occupancy and Weather on Energy Use
Energy use by activity type as provided by NRCAN Energy Use Data Handbook – January 2011
NATURAL GAS-RELATED Portion
Space Heating
Water Heating
Auxiliary Equipment
Auxiliary Motors
Lighting
Space Cooling
Total
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Sector
Energy
576.9
90.6
232
108.5
133.1
55.7
1,196.8
Occupancy
Dependence
576.9
90.6
–
–
–
–
667.5
Weighted Impact
End-Use Activity
86%
14%
–
–
–
–
100%
Use
(PJ)
25%
100%
–
–
–
–
–
NG
(PJ) %
22%
14%
–
–
–
–
35%
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MORGUARD 2015 SUSTAINABILITY REPORT
The expected impact of a 10% change in occupancy is a 3.5% change in natural gas use.
Natural Gas Sensitivity to HDD: 88%
The expected impact of a 10% change in HDD is an 8.8% change in natural gas use.
Building Performance: Weather and Occupancy Model
ELECTRICITY-RELATED Sector
Energy
576.9
90.6
232
108.5
133.1
55.7
1,196.8
Portion
Space Heating
Water Heating
Auxiliary Equipment
Auxiliary Motors
Lighting
Space Cooling
Total
Occupancy
Dependence
–
–
232
108.5
133.1
55.7
529.3
Weighted Impact
End-Use Activity
–
–
44%
20%
25%
11%
100%
Use
(PJ)
–
–
100%
25%
70%
25%
–
NG
(PJ) %
–
–
44%
5%
18%
3%
69%
The expected impact of a 10% change in occupancy is a 6.9% change in electricity use.
Electricity Use Sensitivity to CDD: 11%
The expected impact of a 10% change in CDD is a 1.1% change in electricity use.
WATER-RELATED Portion Occupancy
Base Load
Summer Peak
Total
Weighted
End-Use Activity%
Dependence
Impact
576.9
90.6
1,196.8
–
–
529.3
–
–
100%
The expected impact of a 10% change in occupancy is a 9.0% change in water use.
Water Use Sensitivity to CDD: 13%
The expected impact of a 10% change in CDD is a 1.3% change in water use.
The table below provides a summary of the occupancy and weather correction factors. Occupancy has a greater
impact on electricity and water than on natural gas. Weather has a greater impact on natural gas.
IMPACT ON ENERGY AND WATER USE OF A 10% CHANGE IN OCCUPANCY AND WEATHER
Occupancy
Weather
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Electricity
Natural Gas
Water
6.9%
1.1%
3.5%
8.8%
9.0%
1.3%
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MORGUARD 2015 SUSTAINABILITY REPORT
APPENDIX C – GRI INDEX
AIF = Available within the Annual Information Form and other continuous disclosure materials at morguard.com.
CEO LETTER
•
GRI 1.1 Statement from the most senior decision-maker of the organization p.6
•
GRI 1.2 Description of key impacts, risks, and opportunities p.9
PROFILE
•
GRI 2.1 Name of the organization p.5
•
GRI 2.2 Primary brands, products and/or services p.5
•
GRI 2.3 Operational structure of the organization, including main divisions, operating companies,
subsidiaries and joint ventures p.5
•
GRI 2.4 Location of organization’s headquarters p.6
•
GRI 2.5 Number of countries where the organization operates, and names of countries with either major
operations or that are specifically relevant to the sustainability issues covered in the report p.5
•
GRI 2.6 Nature of ownership and legal form p.5
•
GRI 2.7 Markets served p.5
•
GRI2.8 Scale of the reporting organization p.5
•
GRI 2.9 Significant changes during the reporting period p.5
•
GRI 2.10 Awards received in the reporting period p 15
SCOPE
•
GRI 3.1 Reporting period p.5
•
GRI 3.2 Date of most recent previous report p.5
•
GRI 3.3 Reporting cycle p.5
•
GRI 3.4 Contact point for questions regarding the report or its contents p.6
•
GRI 3.5 Process for defining report content p.9
•
GRI 3.6 Boundary of the report pp.5 & 17
•
GRI 3.7 State any specific limitations on the scope or boundary of the report pp.5 & 17
•
GRI 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and
other entities p.5
•
GRI 3.9 Data measurement techniques and the bases of calculations pp.5 & 17
•
GRI 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and
the reasons for such re-statement pp.5 & 17
•
GRI 3.11 Significant changes from previous reporting periods in the scope, boundary or measurement
methods applied in the report pp.5 & 17
•
GRI 3.12 Table identifying the location of the Standard Disclosures in the report p.41
•
GRI 3.13 Policy and current practice with regard to seeking external assurance for the report p.17
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MORGUARD 2015 SUSTAINABILITY REPORT
GOVERNANCE
•
GRI 4.1 Governance structure of the organization p.26
•
GRI 4.2 Indicate whether the Chair of the highest governance body is also an executive officer AIF
•
GRI 4.3 For organizations that have a unitary board structure, state the number of members of the
highest governance body that are independent and/or non-executive members AIF
•
GRI 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the
highest governance body AIF
•
GRI 4.5 Linkage between compensation for members of the highest governance body, senior
managers, executives (including departure arrangements) and the organization’s performance
(including social and environmental performance) p. 36 & AIF
•
GRI 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided
AIF
•
GRI 4.7 Process for determining the qualifications and expertise of the members of the highest
governance body for guiding the organization's strategy on economic, environmental, and social topics
AIF
•
GRI 4.8 Internally developed statements of mission or values, codes of conduct and principles relevant
to economic, environmental and social performance and the status of their implementation pp.8 & 36
•
GRI 4.9 Procedures of the highest governance body for overseeing the organization’s identification and
management of economic, environmental and social performance, including relevant risks and
opportunities, and adherence or compliance with internationally agreed standards, codes of conduct
and principles p.36
•
GRI 4.10 Processes for evaluating the highest governance body’s own performance, particularly with
respect to economic, environmental, and social performance p.36 & AIF
•
GRI 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the
organization p.36
•
GRI 4.12 Externally developed economic, environmental and social charters, principles, or other
initiatives to which the organization subscribes or endorses p.10
•
GRI 4.13 Memberships in associations and/or national/international advocacy organizations p.10
•
GRI 4.14 List of stakeholder groups engaged by the organization p.10
•
GRI 4.15 Basis for identification and selection of stakeholders with whom to engage p.10
•
GRI 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by
stakeholder group pp.10 & 23
•
GRI 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how
the organization has responded to those key topics and concerns, including through its reporting p.10
ECONOMIC
•
GRI EC1 Direct economic value generated and distributed, including revenues, operating costs,
employee compensation, donations and other community investments, retained earnings and
payments to capital providers and governments AIF
•
GRI EC8 Development and impact of infrastructure investments and services provided primarily for
public benefit through commercial, in-kind, or pro bono engagement p.23
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ENVIRONMENT
•
GRI EN4 Indirect energy consumption by primary source (Scope 2) p.18
•
GRI EN5 Energy saved due to conservation and efficiency improvements p.18
•
GRI EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and
reductions in energy requirements as a result of these initiatives p.16
•
GRI EN7 Initiatives to reduce indirect energy consumption and reductions achieved p.18
•
GRI EN13 Habitats protected or restored. Initiatives undertaken, both during and after construction, to
protect, conserve and/or restore biodiversity including Greyfield or Brownfield redevelopment
projects/buildings (vs. Greenfield) p.23
•
GRI EN16 Total direct and indirect greenhouse gas emissions by weight p.20
•
GRI EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved p.20
•
GRI EN22 Total weight of waste by type and disposal method p.22
•
GRI EN23 Total number and volume of significant spills p.35
•
GRI EN28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations p.35
GRI EN30 – Total environmental protection expenditures and investments by type p.35
SOCIETY
•
GRI SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the
impacts of operations on communities, including entering, operating and exiting. p.23
•
GRI SO5 Public policy positions and participation in public policy development and lobbying p.37
LABOUR
•
GRI LA 1 Total workforce by employment type, employment contract and region p.26
•
GRI LA2 Total number and rate of employee turnover by age group, gender and region pp.27 & 28
•
GRI LA3 Benefits provided to full-time employees that are not provided to temporary or part-time
employees, by major operations p.29
•
GRI LA4 Percentage of employees covered by collective bargaining agreements p.29
•
GRI LA5 Minimum notice period(s) regarding significant operational changes p.29
•
GRI LA6 Percentage of total workforce represented in formal joint management-worker health and
safety committees p.29
•
GRI LA7 Rates of injury, occupational diseases, lost days, absenteeism and number of work-related
fatalities by region p.30
•
GRI LA10 Average hours of training per year per employee by employee category p.32
•
GRI LA12 Number and percentage of employees receiving regular performance and career
development reviews p.33
•
GRI LA13 Diversity: Breakdown of employees per category according to gender, age group, minority
group membership, and other indicators of diversity p.28
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HUMAN RIGHTS
•
Partial GRI HR2 Percentage of significant suppliers and contractors that have undergone screening
on human rights and actions taken p.36
PRODUCT RESPONSIBILITY
•
Partial GRI PR5 Practices related to customer satisfaction, including results of surveys measuring
customer satisfaction p.12
CONSTRUCTION AND REAL ESTATE SECTOR SUPPLEMENT
•
GRI CRE1 Building energy intensity p.19
•
GRI CRE2 Building water intensity p.21
•
GRI CRE3 Greenhouse gas intensity from building energy p.20
•
GRI CRE7 Type and number of green building certifications, rating, and labeling schemes used pp.
13-15
•
GRI CRE8 Initiatives to ensure efficient design, operation and retrofitting of buildings p.12
APPENDIX D – GLOBAL REPORTING INITIATIVE (GRI) VERSIONS 3.1 –
APPLICATION LEVEL B – SELF DECLARED
LEVEL B INDICATOR REQUIREMENTS:
1.1 and 1.2, 2.1 – 2.10, 3.1 – 3.13, 4.1 – 4.17. Management approach disclosure for each indicator category
(ESG). Report on a minimum of 20 performance indicators, at least one from each of Economic,
Environmental, Human Rights, Labour, Society, and Product Responsibility. Note: We have also included
information pertaining to five of eight Construction and Real Estate Sector Supplement indicators
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