Our commitment to reducing our impact on the environment is paramount to our business. Our focus on promoting a lowcarbon economy, optimizing the efficiency of our day-to-day operations and working across our ecosystem of business partners underpins our sustainability approach.
We primarily activate our commitment through:
Our Approach
Across our portfolio, we are committed to effective environmental management and performance in keeping with the expectations of our customers, employees and other key stakeholders, as well as in alignment with emerging regulations at the federal, regional, state and city level.
Reducing our environmental impact is enacted by incorporating sustainability considerations into our daily operations, including management, maintenance and construction. This is thanks to the dedication of our Engineering and Property Management teams who continually look for opportunities to make adjustments that increase energy efficiency, help mitigate the effects of climate change, reduce water use, manage waste outputs and maintain indoor air quality standards. Property-specific environmental risk assessments further support our operations and preparations for changing conditions by measuring our risk and resilience levels related to natural disasters, hazardous materials, contamination and unexpected geopolitical events. We actively work to identify opportunities to reduce energy consumption and GHG emissions at the building level through operational adjustments and capital improvement projects.
Customer Partnerships
We collaborate with our customers to reduce energy consumption, manage resource use and waste generation, along with other compliance, efficiency, educational and data management practices. We also offer green lease14 clauses in new and renewal leases, which can support a customer’s own sustainability goals and help meet regulations in the US and European Union. Our properties also partner with customers to facilitate sustainability education events, electronics recycling drives, beach clean-ups, farmers markets and related activities.
Examples of our environmental sustainability initiatives include:
• Energy and Emissions - Installing energy-efficient building upgrades and creating a plan to reduce GHG emissions when a new asset is acquired
• Resources - Evaluating ways to reduce the use of natural resources in daily building operations
• Green Construction - Implementing EQ’s Green Pre-Construction Checklist13
Green
• Waste Minimization - Implementing recycling and composting
• Creative Reuse - Reusing or repurposing products and spaces whenever possible
• Vendor Diversity and Engagement - Working with suppliers and procuring materials that benefit local economic development and culture
Environmental Performance Overview:
ENERGY STAR certifications,17 covering 26% of the square feet in our portfolio18
of leases in place included sustainabilityrelated clauses, representing 30% of the square feet in our portfolio15 43% of our portfolio offers composting programs, with three additional EQ assets launching food waste composting in 2023 53% of properties underwent air filtration upgrades 31% of vendors hired for construction projects utilized EQ’s Green Pre-Construction Checklist of properties have electric vehicle charging stations available for employees and customers 43% 58% of EQ's square footage is LEED certified16
year-over-year increase in tons of electronics recycling and additional product recycling and reuse19
Decarbonization
Real estate plays a significant role in global carbon emissions, making it essential to pursue decarbonization through energy reduction, operational improvements, optimized material use, efficiencies and the adoption of clean energy sources.
Our commitment to decarbonization is our priority since GHG emissions represent our primary environmental impact and therefore our greatest opportunity to accelerate progress and support resilience.
Photo Credit: Bianco Artists
Greenhouse Gas Emissions
In 2022, we measured and reported our GHG footprint for the first time. Since then, we have established our GHG emissions baseline and extended the measurement of relevant Scope 3 categories—adding two more categories, for a total of three in Scope 3. Now we are working to set targets with corresponding plans across Scopes 1, 2 and 3 aligned with best practices in climate science and stakeholder needs.
At the same time, we are upgrading our data management and reporting capabilities around utilities and GHG emissions, a critical step.
As we further build out our decarbonization program, we remain committed to transparently reporting our GHG emissions footprint and annual electricity use and implementing new technologies where feasible.
Enhanced Data Collection and Analysis
We continue to focus on extending data collection and refining methodologies in line with regulations and customer needs.
In 2023, we have expanded our Scope 3 data collection and reporting to include category 5 (waste) and category 7 (employee commuting), as well as refined our methodology in calculating category 13 (downstream leased assets). We also expanded Scope 1 emissions to include secondary fuel consumption data from onsite generators, equipment, refrigerants and mobile sources.
2023 GHG Emissions Reduction
Despite the increase in data collected, we decreased Scope 1 and 2 emissions in 2023.
Scope 1 and 2 emissions, which represent our direct emissions and purchased energy, respectively, decreased year-over-year by about 8% due to increased operational efficiencies implemented by our Operations team.
20 EQ’s 2022 GHG emissions footprint aligns with the Environmental Protection Agency’s (EPA) Emissions and Generation Resource Integrated Database (eGrid2021). The eGrid factors are used to convert electricity consumption data into associated greenhouse gas emissions.
21 EQ’s 2023 GHG emissions footprint aligns with the EPA Emissions and Generation Resource Integrated Database (eGrid) released in January 2024 (eGrid2022). The eGrid factors are used to convert electricity consumption data into associated greenhouse gas emissions.
22 Like-for-like calculations compare year-over-year performance of properties owned with available data in 2022 and 2023. The like-for-like analysis excludes properties bought or sold throughout the reporting period. The analysis also excludes categories of scope 1 and scope 3 emissions that were added to the inventory in 2023 and not accounted for in 2022.
23 In alignment with the US EPA’s Energy Star Portfolio Manager standards and calculations, our measure of square footage used to calculate intensity is characterized by the gross floor area of each building, excluding parking and garage spaces.
24 Scope 1 emissions are direct GHG emissions that occur from sources that are owned or operated by EQ, e.g. emissions generated by EQ-owned or operated boilers, furnaces. In 2023’s GHG emissions footprint, Scope 1 was expanded to include secondary fuel data from gas-powered equipment and on-site generators, as well as refrigerants.
25 In 2023, EQ enhanced its GHG Inventory methodology to include additional energy sources for inclusion in Scope 1 emissions. These new sources of Scope 1 emissions account for 4,450 MT of CO2e, or 65% of Scope 1 emissions in 2023.
26 Increase can be attributed to expanded occupancy.
27 Increase can be attributed to expanded occupancy.
28 Scope 2 accounts for the GHG emissions generated through EQ’s off-site energy procurement from energy that is purchased or otherwise brought into
Photo credit: Chris Ozer
Energy Efficiency
We reduce energy consumption through design, technology and operational strategies. Improving energy efficiency has numerous benefits—from lower energy costs and better environmental outcomes to improved comfort for our building occupants.
Energy reduction and clean energy projects are implemented through a variety of tactics, such as upgrading and installing high-efficiency equipment and appliances like heating and air conditioning systems, LED lighting and solar arrays. The ENERGY STAR Portfolio Manager platform allows us to track, assess and benchmark our current and historic utility consumption for each building. Our Operations team leads day-to-day building management and capital improvement planning while ensuring ENERGY STAR compliance.
Green lease agreements with our customers can also lead to energy and emissions reductions through requirements related to energy management, metering and the purchase of clean energy. In 2023, energy audits conducted at several properties covered 25% of our total square footage.32
In 2023, we carried out a variety of environmental capital improvements across our portfolio, including:
• Building management system upgrades and installations33
• High-efficiency equipment and appliance installations
• Heating, ventilation and air conditioning system upgrades
• LED lighting upgrades, with new LED lights installed across five properties
• Modification to energy-efficient elevator cars
Renewable Energy
We focus on opportunities to adopt additional renewable energy sources, particularly the feasibility of onsite solar installations and renewable energy credits (RECs).34
6.2MWh
projected solar energy generation at several California assets in our 2023 portfolio
774k+kWh
of solar energy generated at EmeryTech, covering 52% of electricity consumption in 2023
20–55%
projected energy load reduction at each building associated with future solar projects
53%
of square footage in our portfolio was associated with the procurement of RECs and onsite renewable energy in 2023
97.5m+kWh
procured by RECs in 2023, representing 45% of total electricity consumption from EQ-paid utility bills35
Sustainable Design and Construction
We are committed to applying green building practices, reducing embodied carbon through material selection, designing for energy efficiency and implementing features that encourage sustainable behaviors and operations. This includes prioritizing the use of local materials that avoid GHG emissions and benefit local economies through their purchase and installation.
In 2023, 40% of our onsite construction projects used locally sourced materials such as carpet, glass panels, wood, ceiling tiles, laminate sheets, drywall, concrete and more.36
EQ provides Green Construction Guidelines to help property teams evaluate the environmental management practices of prospective vendors before selection. The guidelines cover a variety of sustainable procurement suggestions, such as selecting vendors with recycling policies, implementing energy and water efficiency, choosing local materials and those with lower volatile emissions diverting waste during construction and using native plants and local cultural materials, among others.
Where relevant, we pursue certifications that validate the sustainability performance of our buildings, including LEED. As of the end of 2023, there were 16 LEED certifications across our properties, covering 58% of the square feet in our portfolio.
Urban Beekeeping
When designing new or renovated spaces, we work to integrate natural elements and preserve existing ecosystems. By incorporating nature into built environments, we create healthier, more sustainable and more human-centered places that respect natural systems.
EQ has brought these nature-based experiences to locations across the US since 2019. Today, we have 20 honeybee hives at 13 EQ locations, supporting approximately one million honeybees that collectively pollinate 151 square miles. Honey harvested from onsite beehives is shared with customers and employees in local offices, and educational events are hosted throughout the year to help employees and customers learn about the role of pollinators in urban landscapes.
Using Water Responsibly
Heating and cooling systems, restrooms, landscaping and restaurants all consume water in office buildings. We aim to optimize the use, treatment and disposal of water in and around our buildings and infrastructure. We aim to promote responsible use of natural resources and health and resilience of the environments we occupy.
We continually evaluate opportunities for conservation, such as through efficient landscape design and irrigation. In 2023, three of our properties representing almost a quarter of our square footage conducted water audits to identify additional opportunities for water savings.38
Also in 2023, several properties completed water conservation upgrades, including occupant sensors for water fixtures, leak detection and flood stop systems, drip and smart irrigation systems and drought-tolerant and low-water landscaping.
72% of EQ properties have high-efficiency water fixtures, such as low-flow faucets, toilets and urinals37
EQ aligns water reduction initiatives with municipal water efficiency standards through monitoring and reporting at our properties and installing low-flow fixtures throughout our portfolio. For properties undergoing capital improvements, we install lowflow bathroom fixtures wherever feasible.
Photo Credit: Jenna Fernandez
Photo Credit: Jenna Lynn, Jenna Lynn Photography
Waste Reduction and Recycling
Our team is committed to increasing waste diversion rates to reduce waste sent to landfills. We do so through recycling, composting, material reuse and donation programs within our direct operations and construction projects.
We conduct regular waste audits, prioritize vendors that support our waste reduction goals and partner with local government entities and customers to ensure we avoid as much waste as possible. In 2023, waste audits conducted at several properties covered 21% of our total square footage.
Direct Operations
In 2023, we diverted more than 3,700 metric tons of waste from landfills in direct property operations and construction projects—about 40% of our total waste generated in 2023. Of the total waste generated by our direct operations, 35% was recycled, including e-waste, and 9% was composted.
We further expanded composting programs in 2023, with 53% of properties providing composting programs, despite the challenges associated with composting in some municipalities. During the year, 603 metric tons of waste were composted, a 48% increase over 2022.
Recycling Events
In keeping with our focus on customer engagement, we continue to provide recycling, educational and community forums. At properties in Atlanta, Boston, Chicago, Denver, Los Angeles, Nashville, New York, Orange County, San Diego, San Francisco and Seattle, we held recycling events that collected more than 35 tons of furniture and other goods for repurposing and recycling. We collected over 310 tons of electronics for upcycling and safe disposal, as well as other non-traditional waste39 for recycling, a 165% yearover-year increase.
Spotlight: Donating and Recycling Electronics
33-acre
of office tenants and retail centers, works with Human-I-T to donate electronic items that would otherwise go to waste. With collections twice a year, Playa District donated more than 13,500 pounds of electronics during 2023.
Human-I-T creates equitable access to opportunity by providing devices, internet access, digital skills training and tech support for in-need communities, while helping businesses divert technology from landfills.
Human-I-T refurbishes donated devices before distributing them to local communities. Any items that cannot be refurbished are responsibly recycled.
2022 and 2023 Waste Diversion and Recycling
Playa District, a
campus in Los Angeles composed
Photo Credits: Kyle Johnson, Bianco Artists
Photo Credit: Daniel Peter, Bianco Artists
Construction Waste Reduction
We aim to minimize the negative environmental effects of waste from construction by reducing materials and using sustainably produced raw materials. As we consider ways to apply more sustainable innovation and support a circular economy, we diverted 53% of construction waste from landfill in 2023. We worked to ensure waste was recycled consistent with EPA’s guidelines for the Sustainable Management of Construction and Demolition Materials through the diversion of waste from landfill, recycling and reuse of materials when applicable.
Spotlight: Environmental Stewardship at Willis Tower
Located in the heart of downtown Chicago, Willis Tower stands as the largest building in the US to earn LEED Platinum certification, having implemented numerous environmentally-friendly attributes.
• Energy Efficiency - overall energy consumption at Willis Tower decreased over 13% since 2022, enabled by state-of-the-art upgrades to the main chiller plant, installation of LED light fixtures and sensors and other initiatives:
• Modernizing the building automation system and increasing control points to over 80,000, which optimizes automation strategies and allows for real-time consumption monitoring
• Installing high-efficiency fans and water-cooling media for several existing cooling towers
• Reconditioning of three existing chillers to increase efficiency by about 30%
• Implementing adaptive reuse of the secondary riser system improved resiliency of the tenant condenser water system
• Modernizing the elevator system to improve tenant wait times by 30% and enhance energy efficiency by 28%
• Renewable Energy - Committed to multi-year procurement of renewable energy credits to cover energy use beyond reductions
• Water Conservation - Low-flow, high-efficiency sink faucets, toilets and urinals save more than 11 million gallons of water annually
• Recycling - Paper, plastics, cardboard, metals, electronics, glass, batteries and mercurycontaining light bulbs are collected for recycling, along with a building-wide compost program
• Biodiversity Support - Installed a “Bird Box” system in 2023 as part of The City Birds Project, which aims to identify bird species flying over the Chicago wilderness region, build biodiversity awareness and inform conservation efforts
These and other initiatives aimed at conserving energy have also reduced operating costs significantly. Throughout 2023, Willis Tower worked with 13 diverse vendors on these improvements, including womanowned, minority-owned, certified small business and veteran-owned businesses.
Thanks to these and other efforts, the Willis Tower Engineering team earned the ComEd 2023 Energy Excellence Award for Commitment to Energy Efficiency and Sustainability. EQ also recognized two employees, Steve Antoniazzi and Tom Padgham, with our Sustainability Leader of the Year Award. Together, they implemented programming that lowers the building’s electrical consumption from 13MW to 8MW. Steve trained the Willis Tower team on how to best start up and shut down the building to lower consumption during critical hours. Tom designed and delivered an effective adaptive re-use project by creating connections to a secondary condenser system.
Building-Wide Composting
Since launching a building-wide compost program in 2023, Willis Tower now composts in over 20 locations throughout the building and collects about 30 metric tons of compostables during the year. The program’s compost was
graded 98% clean by a third-party waste management provider.
The property team credits its success with five customer training courses and workshops and the creation and rollout of a composting handbook that includes specific guidance and educational resources. Plans are underway to promote the handbook across EQ properties.
Recycling
Willis Tower recycles paper, plastics, cardboard, metals, electronics, glass, batteries and mercurycontaining light bulbs. The building achieved a landfill diversion rate of over 41% in 2023. It also provides staff and customers with opportunities to recycle electronics twice a year. In 2023, a total of 1.9 metric tons of electronics were recycled. A partnership with Green Grease also allowed the building to recycle over 15,800 pounds of cooking oil and grease from onsite restaurants. Recycling from the building was also graded 95% clean by a third-party waste management provider.
Building Resilience and Risk Management
Doing our part to help ensure the health, safety and security of people who work in or visit our properties is a longstanding priority. This includes proactively identifying, assessing and mitigating potential risks, implementing preventive measures, adhering to defined safety protocols in the event of an emergency and training employees on safety and security at work.
We recognize the critical importance to our customers of working in buildings that unfailingly maintain a healthy and safe environment in a resilient property.
Our building risk management and emergency preparedness plans are informed by regular third-party external audits conducted across our organization and property portfolio, as well as at the individual property level. These audits evaluate overall operational compliance, emergency and safety procedures, energy management, indoor air quality and the conditions of our assets. The plans also consider each property’s unique location and building composition.
We continually optimize building resilience. Every EQ property has:
• Electronic security system monitoring 24 hours a day, 365 days a year
• Fire protection systems that meet or exceed code
• Regular education for customers on emergency response and protective actions for life safety through interactive drills and trainings
• Emergency preparedness and response protocols, as well as physical security plans
• Customized crisis communications manuals, regular training with simulation drills and a dedicated agency to assist with customer communications in real time
• Building-wide intercom customer notification system
• Preventive maintenance program and team members who are cross-trained in facilities and engineering operations
We continually assess the resilience of our properties by monitoring the following risks:
