Sustainability highlights in 2021

HOOPP Real Estate set a science-aligned* greenhouse gas emission (GHG) target to achieve 50% reduction of scope 1 and 2 greenhouse gas emissions by 2030 compared to a 2019 baseline, for assets under operational control.

HOOPP Real Estate commemorated our 10th anniversary of the LEAP Awards. To date, HOOPP has given more than 110 LEAP Awards to 10 property management partners in the United States and Canada.

The fifth annual LEAP Forward Pitch competition, an event focused on identifying funding opportunities for sustainability-related innovative technology solutions, was held on June 3, 2021. To date, HOOPP has invested in eight projects with five different third-party managers in four provinces. 

Our property at 25 York in Toronto won the Canadian Green Building Council (CaGBC) Green Building Excellence Award for an Existing Building and was recertified for BOMA BEST Platinum, achieving the highest ever score globally at 99.2%.

ATCO Centre won the 2021 BOMA Edmonton Earth Award. The award recognizes excellence in resource preservation and environmentally sound commercial building management.

*Science-aligned means that the target is consistent with emission reduction pathways required to limit global warming to well below 2°C above pre-industrial levels.

A special thank you to our members

Throughout 2021, HOOPP members and employers continued to navigate an incredibly difficult healthcare environment. We are grateful for their courage, leadership and commitment in these challenging times. The HOOPP Real Estate team wants to thank our members and employers for everything they have done and continue to do for our communities. We are inspired by their dedication as we remain committed to delivering on our pension promise and continuing to embed environmental and social factors in our investment process to create positive outcomes and minimize risks.

Pillar Scorecard

The Pillar Scorecard is our primary tool for tracking and reporting portfolio-level sustainability performance. Indicators included in the scorecard reflect the most material sustainability topics where HOOPP can make an impact. Our performance remained steady in 2021 as the square footage of our direct investments grew by about 15%. We are encouraged by reductions in energy and GHG intensity and will aim to continue to improve performance as we integrate more properties and managers into our sustainability program.

Pillar	Indicator	2020 value	2021 value
Sustainable investing	Sustainability in asset management (% of budgets including sustainability)	45%	44%
Climate action	Climate resilience (% of properties managing risks)	36%	32%
	Greenhouse gas emissions* ('000s tCO2e)	235	255
	Greenhouse gas emission intensity** (kgCO2e/square foot)	3.7	3.4
	Renewable energy (% of property-controlled electricity)	3%	3%
Great buildings	Building ratings (% gross floor area)	51%	51%
	Energy performance (% change in like-for-like consumption)	-11.7%	-1.4%
	Sustainable procurement policy (% of properties)	58%	55%
Stakeholder prosperity	Tenant engagement (% of properties)	82%	73%
	Community engagement (% of properties)	52%	51%

Energy reductions in 2020 were largely due to property closures during the pandemic.

*tCO₂e: Tonnes of carbon dioxide equivalent. The greenhouse gas value includes emissions from all directly-owned properties in HOOPP’s portfolio that are at least 25% owned by HOOPP. All buildings owned during 2021 are included. Where data is not available, emissions are estimated based on industry averages. We do this to provide a transparent and comprehensive view into total emissions associated with our directly-owned properties, even in areas where we do not have operational control.

**Greenhouse gas emission intensity is reported for buildings where HOOPP has whole building data.

HOOPP Real Estate sets greenhouse gas emission reduction target

Climate change poses one of the most urgent and pressing systemic challenges of our time. While the issue of climate change is complicated and constantly evolving, it can no longer be approached solely as a long-term issue.

As a Fund, we are committed to achieving net-zero carbon emissions in our portfolio by 2050. To support HOOPP’s net-zero goal, HOOPP Real Estate has set its own medium-term greenhouse gas reduction target.

As our inaugural set of energy and greenhouse gas (GHG) reduction targets expired in 2020, we made it our top sustainability priority to commit to a science-aligned* GHG reduction target for 2030 that was both ambitious and realistic. At the end of 2021, HOOPP Real Estate committed to reducing GHG emissions 50% by 2030 compared to a 2019 baseline, for assets under operational control. We determined that the scope would be assets where HOOPP has operational control as that is where we have the greatest ability to influence building performance.

We identified three key factors that we believe will help us achieve this target:

1. Medium-term, science-aligned* time horizon

We selected 2030 as our end-year because it is a medium-term time horizon that provides the right balance of urgency with sufficient time to plan and invest in energy reduction and decarbonization. Setting interim targets is necessary to ensure we are on pace to achieve the Fund’s long-term goal of net-zero carbon emissions by 2050.

2. Effective engagement strategy

Because we rely on independent property managers, our journey to setting this target involved building knowledge, capacity and securing buy-in from multiple stakeholders. In 2021, we engaged managers through our quarterly sustainability newsletter The Green Update as well as through Sustainability Committee Calls to gain insight into how to best collaborate to achieve our proposed target. This helped generate support for both the target and understanding of property-level GHG reduction levers among our management partners.

3. Emissions-planning tool

We knew the target would only succeed through focused, asset-specific planning. To support this challenging work, we developed a custom emissions planning tool for each property team. The tool included property baseline emissions and allowed managers to forecast future GHG reductions based on grid decarbonization and planned investments such as energy efficiency projects, on-site solar installations, or purchases of renewable energy credits. 

The outputs of our emissions planning tool provided insight into which properties were on-track or could demonstrate a credible plan to achieve a 50% GHG reduction by 2030, and which assets required further engagement to overcome decarbonization challenges. The tool also enabled us to monitor which investments each property was pursuing and identify candidates for specific follow-up or intervention. The results provided a clear pathway to achieving GHG reductions and gave us and our managers confidence that our portfolio could achieve the proposed target.

To continue driving progress, our focus areas for 2022 include implementing systems to monitor the execution of property-level GHG reduction plans, integrating emission reduction opportunities into capital planning, and establishing a GHG reduction strategy for new developments and acquisitions.

*Science-aligned means that the target is consistent with emission reduction pathways required to limit global warming to well below 2°C above pre-industrial levels.

2021 Case studies

For 2021, we are highlighting case studies from our portfolio that demonstrate excellence and leadership in sustainability. These case studies showcase some of the most impressive and impactful environmental and social achievements from our portfolio in 2021. By sharing them we aim to recognize the achievements of the teams involved and help promote sustainability across the real estate industry.

Devonshire Mall hosts mass vaccination site

In June 2021, Devonshire Mall in Windsor, Ontario, as part of the HOOPP Real Estate portfolio, began operating as a mass COVID-19 vaccination site. Devonshire Mall replaced two local vaccination sites operating out of the University of Windsor and the St. Clair College SportsPlex, which both closed to prepare for the fall 2021 academic semester. After vaccinating thousands of individuals, the clinic ceased operations in April 2022. This mall has since shifted ownership, but we want to thank property staff and management involved in coordinating this important initiative. As the pension plan for Ontario’s healthcare workers, HOOPP is pleased to support the healthcare system while also contributing to the health of our communities.

1875 Lawrence wins inaugural Sustainable Fund award

In 2021, HOOPP introduced the Sustainable Fund LEAP Award to recognize extraordinary sustainability practices among our indirect fund investments. The inaugural winner was 1875 Lawrence, a 15-story carbon neutral office tower in Denver, Colorado managed by Unico Properties.

Since Unico Properties purchased the building in 2016, they have focused on improving operational performance to achieve carbon neutrality. The property has undergone several upgrades, including to the building automation system, which resulted in annual energy savings equivalent to the power required for 55 homes. Other upgrades included the energy information system as well as installation of electric vehicle chargers on-site. The building is also LEED Gold certified, and Fitwel Viral Response certified. These efforts have improved operational performance, as well as increased tenant comfort and safety during the pandemic.

To achieve carbon neutrality, the property purchases solar electricity from Unico Solar’s 40-acre solar farm in nearby Aurora, Colorado, owned in a joint venture with Unico Solar Investors and Excelsior Energy Capital. This solar energy agreement allows the property to procure clean energy while hedging against volatile and rising electricity prices. The property’s procurement of solar power offsets over 2,000 metric tonnes of CO₂ annually.

HOOPP is proud to invest in real estate funds that integrate environmental and social considerations in their management approach and that demonstrate innovative practices to significantly reduce greenhouse gas emissions to transition to a low-carbon future.

25 York achieves highest BOMA BEST Platinum score globally

As part of its recertification process for BOMA BEST Platinum, our 25 York Street office tower in Toronto achieved a 99.2%, the highest score globally for this certification. This same property was also awarded the 2021 National Green Building Excellence Award for an Existing Building by the Canada Green Building Council. This award recognizes continuous improvement in building operation, performance and occupant satisfaction.

This property is no stranger to winning awards and setting records, having achieved the highest ever BOMA BEST score for an office tower in 2015, becoming Canada’s first Fitwel certified office tower in 2018 and winning The Outstanding Building of the Year (TOBY) Award in 2019. The building is also certified LEED® Platinum: Existing Building Operations & Maintenance, LEED® Core & Shell Gold and LEED® Commercial Interiors Gold.

25 York’s remarkable accolades are a testament to consistent operational excellence and continuous improvement of sustainability performance. HOOPP applauds the property team for their hard work in achieving these outstanding accomplishments.

Student residences bring mental health resources to students’ doorsteps

The Resident Mental Health Awareness Week has been run at our Parkside Student Residence and CampusONE TO residence in Toronto since 2018, and at Campus1 MTL student residence in Montreal since 2019.

The Mental Health Awareness Program is a multi-tiered mental health awareness and wellness campaign held in October and January of each year. While all academic institutions offer mental health resources, this initiative is unique in bringing those resources to student’s doorsteps and hosting curated virtual experiences.

The program began with Thrive Week: a week-long mental health campaign taking place in October. The program was overhauled and expanded in 2020 to meet increased mental health needs created by the social isolation of the COVID-19 pandemic. This included expanding the program to include use of the Aspiria Student Assistance Program which provided free mental health support and counselling services 24/7 to residents via phone or internet. The resource gave residents instant access to mental health support in times of crisis and increased accessibility to counselling. It also provided financial and legal consultation and life and wellness coaching.

The program expansion also included the creation of the Hi How Are You: Healthy Habit-a-Thon which takes place in January. This is a resident-driven video series highlighting ways people practice daily habits to improve mental health and resilience.

Building staff at all levels participate through event attendance, execution and marketing to foster a supportive environment for students with mental health challenges while demonstrating solidarity between residents and staff. Tenant health and wellbeing is a key component of sustainable real estate and we are inspired by the property teams’ efforts to create a healthy environment for students.