RioCan is pleased to announce that we continue to lead the real estate industry on Environment, Social and Governance (ESG) with the achievement of a 5 Star rating from GRESB for our performance on ESG performance and sustainability best practices. The highest recognition available, this 5 Star rating places RioCan in the top quintile of our North American peers, according to the GRESB Real Estate Assessment. Additionally, RioCan has ranked first amongst Canadian peers in the GRESB Public Disclosure Assessment. RioCan’s exceptional performance reflects our rigorous commitment to embedding ESG and sustainability best practices throughout our business.
We know embedding sustainability improves business value because it:
As a large Canadian REIT, RioCan strives to lead the industry in having conversations about more sustainable options in the communities where we operate – conversations with all our stakeholders, including customers, tenants, employees, co-owners, investors, planners, regulators, and suppliers.
Raising Funds to Invest in Environmentally Sustainable Projects
RioCan announced the launch of its Green Bond Framework on March 4, 2020. It outlines the types of eligible projects, process to evaluate and select projects, manage the funds and report on progress and impact. Additionally, the Green Bond Framework has received a second-party opinion by Sustainalytics, a global leader in providing ESG research and analysis.
On March 10, 2020 RioCan completed the inaugural Green Bond offering with an issuance of a $350 million, 7- year bond at 2.361% interest rate for net proceeds of $348 million.
Identify and assess material ESG risks to update the materiality matrix, which ranks key risks in order of importance for the following year.
RioCan retains a third-party environmental consultant to conduct an environmental review for all acquisitions. In the future, we plan to expand our consideration of ESG factors in the acquisitions due diligence process.
Our Operations and Asset Management departments apply our sustainability and environmental guidelines for operations. They also consider budgeting for sustainability initiatives. Our Leasing department includes green lease clauses to outline our continuous commitment to sustainability through leasing and tenant construction.
Once we have selected an asset for renovation or redevelopment, we work with relevant parties to establish sustainability goals, and we apply our sustainability guidelines for development/construction.
RioCan’s sustainability strategy includes setting long-term goals on topics such as resource efficiency (energy, water and waste) and GHG emissions, representing key sustainability issues and opportunities our industry faces.
RioCan’s Long-Term Reduction Targets by 2030*
reduction of like-for-like energy use
reduction of like-for-like water consumption
reduction of like-for-like GHG emissions
waste diversion rate
*Targets apply to select RioCan properties.
Achieved an “A” disclosure score
achieved, representing about 37% of GLA
to improve awareness on waste management among tenants
completed across 10 development projects in advance of project start
Developed a policy, plan and set of commitments to embed sustainability in our development and construction processes
44%of the total management positions are held by women
33% of the Board of Trustees are women
in RioCan’s annual environmental questionnaire
AS OF 2019
Our people are the driving force of our business: tenants, partners, employees and investors. Starting with a safe place to live, work and shop at, we conduct business with integrity and transparency and strive to create mutually beneficial partnerships with our stakeholder groups.
Examples of our commitments to people include:
We are established pillars of our communities, and as such, our community leadership practices have been created based on our history of investing, operating and developing within each of our communities. RioCan strives to make each of our centres a safe and integral part of the local environment with appropriate lighting in parking lots, presenting a clean and safe space that is accommodating to all staff.
Community leadership builds on our history of investing in the communities where we operate and develop.
Examples of our community commitments include:
Environmental sustainability is an integral component of our overall vision for the future. Our leadership aims to minimize the environmental impacts of our properties and developments to ensure a sustainable and clean environment for future generations.
Environmental leadership strives to minimize the environmental impacts of our properties and developments.
Examples of our environmental commitments include:
Supporting our properties in embedding sustainable practices by providing standards, guidelines and training
Investing in programs and equipment that enhance energy and water efficiency, indoor air quality and minimize waste to landfill
Examining the viability of implementing renewable energy at new developments
Protecting and enhancing the natural environment, where feasible
We have a Sustainability Steering Committee comprised of cross functional Executive and Leadership team members to oversee our sustainability strategy implementation and to drive performance improvements. Steering Committee members sponsor and provide guidance on sustainability initiatives within the organization and enable performance measurement. In addition, we have dedicated environmental and sustainability resources to manage day-to-day sustainability strategy implementation.