2016 CORPORATE RESPONSIBILITY REPORTEXCEPTIONAL PERFORMANCE2016 CORPORATE RESPONSIBILITY REPORT<img alt="" src="/SiteCollectionImages/CSR/building_lifecycle.JPG" style="BORDER:0px solid;" />

 

 

Exceptional Performance > Building Lifecycle<div class="restrictInterior generalContent"><div class="ms-rtestate-read ms-rte-embedcode ms-rte-embedil ms-rtestate-notify"><div class="restrictInterior generalContent"><h1 unselectable="on">Building Lifecycle: Sustainable Operations<br></h1><div>Our integrated approach to the sustainable development and management of our portfolio helps Forest City create shared value for tenants, residents and other stakeholders. We construct our buildings with peoples’ overall well-being in mind—whether it be through our choice of building materials, or from our efficient and responsible use of natural resources. As a property owner and operator, it is essential that we deliver a high-quality experience for anyone and everyone who comes into contact with our properties. Reinforcing Forest City’s commitment to sustainable operations are several significant goals:</div><ul><li>Reduce energy use by 2 percent per year from our 2010 baseline, and 20 percent overall by 2020</li><li>Reduce water use by 20 percent from our 2013 baseline across our existing portfolio by 2020</li><li>Divert 20 percent of all building waste generated within our portfolio by 2025</li><li>Set greenhouse gas reduction target by year-end 2017</li></ul><h2>Commitment to Sustainability: Policy & Goals</h2><div>Forest City’s Energy and Sustainability Policy outlines a continuous improvement approach in the design and construction of new properties, as well as the operation and maintenance of existing properties. It informs our approach by integrating sustainability into our properties’ design and management across five focus areas:</div><ul><li>Energy Management</li><li>Water Conservation</li><li>Waste Management and Recycling</li><li>Energy Supply</li><li>Indoor Environmental Quality</li></ul><div>Our sustainability goals underpin our commitment to reducing our impacts on the environment:</div><ul><li>Reduce energy use by 2 percent per year from our 2010 baseline, and 20 percent overall by 2020</li><li>Reduce water use by 20 percent from our 2013 baseline across our existing portfolio by 2020</li><li>Divert 75 percent of construction and demolition waste and 100 percent of land clearing debris and excavated soil from landfill for new development projects</li><li>Divert 20 percent of all building waste generated within our portfolio by 2025</li></ul><div>Forest City remains firmly committed to reducing energy use by 2 percent per year from our 2010 baseline, and 20 percent overall by 2020. We continue to benchmark 100 percent of our properties within ENERGY STAR Portfolio Manager, and exceeded our annual reduction target last year with a 3.3 percent reduction in energy use intensity. Forest City continues to stay on pace to achieve our 2020 energy-use goal, achieving a total energy reduction of 11.1 percent across our portfolio through 2016*.</div><div class="footnotes">*Note: FCRT tracks a like-for-like portfolio of stabilized assets to measure year-over-year progress, as well as progress against our publicly stated goal. The baseline year for all assets is 2010, unless the asset underwent a significant repositioning/renovation project or if it was a new asset that stabilized after 2010; in both instances, the property is baselined on the first full year after stabilization. Going forward, FCRT is strategically committed to a two-product (Office & Apartment) portfolio, which will provide an opportunity to re-baseline our performance, and we will further evaluate the opportunity to more closely align our internal metrics with our GRESB-reported metrics.</div><div>In 2016, we invested more than $8.2 million to complete 56 capital improvement projects at 26 separate properties. These projects varied in size and scope and included enhancements in energy, sustainable renovations and building technology, such as new LED lighting, high-efficiency HVAC systems and fixture and appliance upgrades. Energy and sustainability-specific project investments totaled $6.5 million across 16 properties. Since 2011, Forest City has invested $31.6 million in capital improvement projects to increase energy efficiency.</div><div>Highlights of 2016 efforts include:</div><ul><li>New Energy and Sustainability Standard Operating Procedures, which we will implement in early 2017 across all properties. The new procedures include a key requirement for every building to develop a written energy plan by the end of 2017. Properties are required to set an energy baseline, create goals for energy use and establish a process for measuring progress against these goals. Building managers also will conduct self-assessments of their energy performance.</li><li>Better building controls and diagnostics through our partnership with Switch Automation, a cloud-based building diagnostics platform that enables us to monitor real-time energy data to help improve our operating efficiency and reduce costs. We continued to expand the program in 2016, implementing energy monitoring across five properties. In total, we identified a total savings of $199,000 across our 15 participating properties. In 2017, we aim to bring another 20 properties online, and we will conduct building audits in Denver and Dallas to help prioritize future projects.</li><li>Initiating a Renewable Energy Opportunity Assessment to conduct a detailed evaluation for programmatic renewable energy adoption in key markets across our portfolio.</li><li>Closely monitoring our Water Use Intensity (WUI) and remaining committed to a 20 percent reduction from our 2013 baseline across our existing portfolio by 2020. In 2016, our WUI increased by 0.5 percent.</li><li>Continuous assessment from our third-party waste vendors of opportunities to maximize recycling and reduce waste sent to landfill, and completing on-site waste audits across our apartment portfolio</li><li>Procuring more than 1,100 ENERGY STAR appliances for tenant and resident spaces.</li></ul><h2>Portfolio Environmental Performance</h2><div class="tableContainer"><h3>Green Building Certifications</h3><table class="tableCertifications"><thead><tr><th> </th><th>2014</th><th>2015</th><th>2016</th></tr></thead><tbody><tr><td>LEED certified projects</td><td>18</td><td>20</td><td>17</td></tr><tr><td>LEED certified sq ft</td><td>3.3 million</td><td>3.8 million</td><td>6.2 million</td></tr><tr><td>ENERGY STAR buildings</td><td>8</td><td>8</td><td>7</td></tr><tr><td>ENERGY STAR sq ft</td><td>803,214</td><td>901,027</td><td>788,024</td></tr><tr><td>BOMA 360 buildings</td><td>13</td><td>13</td><td>11</td></tr><tr><td>BOMA 360 sq ft</td><td>2,025,703</td><td>2,025,703</td><td>1,209,748</td></tr></tbody></table></div><div class="tableContainer"><h3>Energy*</h3><table class="tableEnergy"><thead><tr><th> </th><th>2014</th><th>2015</th><th>2016</th></tr></thead><tbody><tr><td>Total Electricity Consumption (kWh)</td><td>365,622,461</td><td>375,433,100</td><td>363,731,879</td></tr><tr><td>Total Natural Gas Consumption (MMBtu)</td><td>727,253</td><td>733,922</td><td>710,447</td></tr><tr><td>Total Steam Consumption (therms) </td><td>718,651</td><td>756,102</td><td>638,089</td></tr><tr><td>Energy Use Intensity (weather-normalized kWh/square foot)</td><td>23.03</td><td>23.09</td><td>22.26</td></tr></tbody></table></div><div class="footnotes">*This data aligns with Forest City's Global Real Estate Sustainability Benchmark responses. Forest City has the full authority to introduce and implement corporate- or site-specific operating policies at the particular asset or operation. All energy data reflects absolute, actual consumption values, unless noted otherwise. If a non-Forest City entity is responsible for paying the utilities directly (e.g., a tenant), that data has not been reported.</div><div class="tableContainer"><h3>Greenhouse Gases* (Emissions CO2-e)</h3><table class="tableGHG"><thead><tr><th> </th><th>2014 location-based</th><th>2014 market-based</th><th>2015 location-based</th><th>2015 market-based</th><th>2016 location-based</th><th>2016 market-based</th></tr></thead><tbody><tr><td>Scope 1 (metric tons) </td><td>52,517.96</td><td>52,515.19</td><td>51,831.78</td><td>51,829.05</td><td>50,016.05</td><td>50,013.41</td></tr><tr><td>Scope 2 (metric tons)</td><td>187,007.68</td><td>187,026.26</td><td>191,468.27</td><td>191,096.61</td><td>178,596.53</td><td>185,043.52</td></tr><tr><td>Scope 3 (metric tons)</td><td>7,483.75</td><td>7,483.75</td><td>8,904.02</td><td>8,904.02</td><td>7,067.54</td><td>7,067.54</td></tr><tr><td>Total GHG Emissions</td><td>247,009.39</td><td>247,025.19</td><td>252,204.07</td><td>251,829.68</td><td>235,680.11</td><td>242,124.47</td></tr><tr><td>GHG Intensity</td><td colspan="2">0.007</td><td colspan="2">0.007</td><td colspan="2">0.006</td></tr></tbody></table></div><div class="footnotes">*This data aligns with Forest City's Global Real Estate Sustainability Benchmark responses. Forest City has the full authority to introduce and implement corporate- or site-specific operating policies at the particular asset or operation. In these calculations, we have reported 100 percent of emissions from sources under Forest City control (including wholly owned and partially owned facilities). In cases where Forest City has operational control but does not wholly own the facilities, these facilities are included in the inventory. This approach is consistent with the WRI/WBCSD GHG Protocol and general sustainability reporting protocols and guidance. The only exclusions from these calculations are where Forest City did not have full reporting year data for a particular asset (e.g. an asset was sold/acquired/constructed during the reporting period, or utility data was unavailable for another reason). Scope 3 includes only positive emissions resulting from solid waste sent to landfill (excludes recycling).</div><div class="tableContainer"><h3>Water* (cubic meters)</h3><table class="tableWater"><thead><tr><th> </th><th>2014</th><th>2015</th><th>2016</th></tr></thead><tbody><tr><td>Total Water Consumption </td><td>4,451,224</td><td>4,774,373</td><td>4,904,319</td></tr><tr><td>Water Use Intensity </td><td>0.130</td><td>0.134</td><td>0.137</td></tr></tbody></table></div><div class="footnotes">*This data aligns with Forest City's Global Real Estate Sustainability Benchmark responses. Forest City has the full authority to introduce and implement corporate- or site-specific operating policies at the particular asset or operation. All water data reflects absolute, actual consumption values, unless noted otherwise. If a non-Forest City entity is responsible for paying the utilities directly (e.g., a tenant), that data has not been reported.</div><div class="tableContainer"><h3>Waste*</h3><table class="tableWaste"><thead><tr><th> </th><th>2014</th><th>2015</th><th>2016</th></tr></thead><tbody><tr><td>Total Solid Waste Disposal (metric tons) </td><td>14,517</td><td>16,468</td><td>21,597</td></tr><tr><td>Total Solid Waste Recycling (metric tons) </td><td>2,778</td><td>3,025</td><td>3,818</td></tr></tbody></table></div><div class="footnotes">* To the extent available, Forest City uses actual weights (as measured and invoiced by our waste/recycling haulers) for each waste stream. To the extent that a given waste stream's receptacles/disposal containers are not physically weighed (or that information is not readily available), Forest City tracks the number of containers by waste stream, the service levels (e.g. number of hauler pick-ups) and applies the following assumptions to convert approximate number of cubic yards disposed into approximate weights: 100 lbs per cubic yard of municipal solid waste, 50 lbs per cubic yard of old corrugated cardboard, and 70 lbs per cubic yard of commingled recyclables (i.e. mixed glass, tin, plastics, etc.).There are certain assets within our portfolio to which waste/recycling services levels and disposal data is not readily available and have therefore been excluded.</div><div class="crreportHighlight"> <a name="redefining-efficient-living-in-stapleton" class="bookmark" id="redefining-efficient-living-in-stapleton"></a> <div class="crreportHighlightStory"><h5>Redefining Efficient Living in Stapleton</h5><div class="crreportHighlightText">In July 2016, Stapleton launched its 11th neighborhood, Beeler Park, which will feature 822 newly designed homes that will reimagine how people want to live. Beeler Park homes will be built to Zero Energy Ready standards as set forth by the Department of Energy. The Zero Energy Ready program has the most stringent building standards in the U.S. These homes will include features such as thicker walls and triple-paned windows, as well as HVAC systems that minimize pollutants and allergens. In addition, built-in renewable energy systems can offset all of a home’s annual energy consumption, resulting in zero “net” energy bills for homeowners.<br> <br>“At Stapleton, we’ve created a community built on big ideas, and after over 10 years, we’re still writing the book on new ways to live,” said John Lehigh, president of Forest City Stapleton. “It should come as no surprise that you will find home builders upholding Zero Energy Ready innovations right here in Stapleton.”</div></div><div class="crreportHighlightImage hs-stapleton"></div></div></div></div></div> <br>Building Lifecycle: Sustainable OperationsExceptional Performance > Building Lifecycle