gresb event at philips lighting

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1 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012 1

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This slidedeck contains an overview of the 2012 GRESB Report, and presentations on sustainability in commercial real estate, by Philips, ProLogis, CBRE Global Investors and Corio.

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Page 1: GRESB Event at Philips Lighting

1 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 1

Page 2: GRESB Event at Philips Lighting

2 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 2

Today’s program!14.30: !Tour of Philips’ Lighting Centre (for those opted into tour)!  !16.00: !Introduction to GRESB !

! !Sander Paul van Tongeren, APG Asset Management and co-founder GRESB !! !!! !Benefits of A Sustainable Lighting Investment Strategy!! !Derk Bots, Commercial Director of Philips !

 !! !Best Practices:!! !Simon Cox, UK Sustainability Officer, Prologis!

Anne de Jong, Portfolio Manager, Offices, CBRE Global Investors!Lara Muller, Head of Corporate Social Responsibility, Corio!

 !! !Discussion Forum: The Present and Future State of Sustainable Buildings!! !Moderator: Nils Kok, Maastricht University and co-founder GRESB!

 !18.00: !Drinks and networking!!

Page 3: GRESB Event at Philips Lighting

3 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 3

Eindhoven – September 20, 2012!Sander Paul van Tongeren!

APG Asset Management!

Page 4: GRESB Event at Philips Lighting

4 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 4

Why sustainability matters!The driving factors!

!   Increased demand from tenants and institutional investors!!   More and stricter environmental regulation!

The financial business case!!   Increased net incomes !!   Risk-mitigation strategies!!

Source: Eichholtz, Kok and Quigley (2012)

Page 5: GRESB Event at Philips Lighting

5 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 5

Why GRESB for investors?!How to measure “sustainability performance”?!

!   Limited coverage and transparency of rating agencies!!   What to do with non-listed investments?!!

The added value of GRESB:!!   Measure “sustainability” performance at portfolio level!!   One approach and one methodology !!   Used as engagement tool by investors!

!

GRESB’s mission is to enhance!shareholder value by evaluating and!

improving sustainability practices in the!global real estate sector”!

Page 6: GRESB Event at Philips Lighting

6 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 6

GRESB data is now used by 35 investors…!

Page 7: GRESB Event at Philips Lighting

7 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 7

…and GRESB is supported by!

All major industry associations across the globe!

Supporting members!•  ACSI (Australian Council of Super Investors) •  AFIRE (Association of Foreign Investors in

Real Estate) •  ARES (Association for Real Estate

Securitization) •  BPF (British Property Federation) •  Ejendomsforeningen Danmark (Danish

property federation)

•  IVBN (Dutch Property Federation) •  PCA (Property Council of Australia) •  REALpac (Real Property Association of Canada) •  RIAA (Responsible Investment Association

Australasia) •  UNPRI (United Nations Principles for

Responsible Investment)

Page 8: GRESB Event at Philips Lighting

8 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 8

GRESB’s Associate Members!

!   Leading experts in your region who can provide strategic advice/consultancy services / products to improve your sustainability performance!

!

!Please contact us via [email protected] and we will connect you with these organizations!

Page 9: GRESB Event at Philips Lighting

9 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 9

GRESB is becoming the global standard…!2011 2012

Page 10: GRESB Event at Philips Lighting

10 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 10

…and the coverage is increasing!GRESB response rate! Market coverage !

(value weighted 2012)! 2012! 2011!

Listed! 95! 69!North America ! 44%! 31! 15!Europe ! 65%! 40! 32!Asia ! 11%! 14! 12!Oceania ! 75%! 10! 10!

Private ! 348! 271!North America ! 63! 45!South America ! 6! 4!Europe ! 211! 162!Asia ! 36! 37!Oceania ! 32! 23!Total ! 443! 340!

KEY FACT

31% global increase in response rate

Page 11: GRESB Event at Philips Lighting

11 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 11

Response Rate: Europe!

Listed! Private!

Number of respondents! 40! 2011!

Market coverage! 65%!

Gross asset value!(US$ million)!

214,301! 252,346!

KEY FACT

25% increase in response rate for listed companies in 2012

Respondents

Page 12: GRESB Event at Philips Lighting

12 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 12

2012 GRESB Report – launched September 5!New in 2012 GRESB Report:!!!   Sector leaders to acknowledge unique

property types (no individual scores)!

!   More in-depth analysis on sustainability performance of the global real estate sector: Aspects!

!   Improved transparency in Methodology & Scoring and Verification of data!

!

Report is available via !http://gresb.com/survey/ !

Page 13: GRESB Event at Philips Lighting

13 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 13

GRESB Methodology & Scoring!Online survey, 35 questions (excluding new development!!Two dimensions: Management & Policy vs. Implementation & Measurement!!Link to Global Reporting Initiative (GRI CRESS) the EPRA Best Practices Recommendations on Sustainability reporting and the INREV Sustainability Reporting Recommendations!

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14 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 14

GRESB Synopsis: objectives!!   Greater transparency !!

!   Ability to review the scoring for each aspect and question!

!

!   Demonstrates which questions are benchmarked against sector peers/performance!

!Scoring document!!   Available via the online data portal!

GRESB Methodology & Scoring Document !

Page 15: GRESB Event at Philips Lighting

15 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 15

Data Verification and Analysis !

KEY FACT

Over 40 data points are manually verified on content and accuracy.

Page 16: GRESB Event at Philips Lighting

16 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 16

Management!Dedicated Expertise Commonplace!!   Some 80% of respondents have an

articulated vision and strategy on sustainability!

!

!   88% have dedicated resources for implementing sustainability strategy!

!

!   70% respondents have made senior management responsible for sustainability issues!

!

!   57% of higher management is informed at least every quarter on sustainability performance!

Page 17: GRESB Event at Philips Lighting

17 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 17

Policy & Disclosure !Substantial Increase in Transparency!!   At 81%, energy consumption is the

main policy focus (75% in 2011)!!

!   Other common policies adopted are: water consumption and waste management (both 69%)!

!Reporting performance!!   51% listed companies disclose

sustainability performance in annual reports, as opposed to 16% of privately owned companies !

!

!   31% use the GRI framework!

Page 18: GRESB Event at Philips Lighting

18 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 18

Environmental Management Systems!EMS Implementation Drives Reduction of Energy Consumption!!

–  Oceania (86%) is most experienced using EMS!

!

–  35% of implemented EMS are externally certified and 29% are aligned with international standards!

!

–  6.7% like for like decrease in energy consumption for respondents having an EMS!

Page 19: GRESB Event at Philips Lighting

19 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 19

Performance Indicators!What Gets Measured, Gets Managed!!

!   60% of respondents collect and report data on energy consumption (34% in 2011)!

!

!   However, 66% report on less than 50% of the portfolio (coverage)!

!

!   8% of respondents have information on tenant-obtained energy use!

!

!   32% have developed performance targets focused mainly on energy consumption reduction!

Page 20: GRESB Event at Philips Lighting

20 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 20

Global Environmental Performance (2010-2011)*!

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21 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 21

Building Certifications !Certification Prevalent in Most Portfolios Dedicated!!

!   At 62%, LEED is most commonly used green building certification, followed by BREEAM (28%) and Green Star (6%)!

!

!   72% of the respondents used nationally recognized certification schemes (e.g. mandatory energy performance certificates)!

Page 22: GRESB Event at Philips Lighting

22 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 22

Social Factors!Substantial Upside Potential in!Tenant Engagement!!

!   54% of the respondents have tenant engagement programs in place!

!

!   Green leases (26%) are becoming more prevalent; and 35% have regular meetings with tenants!

!

!   65% have developed a sustainability policy for external service providers; and 55% have integrated sustainability criteria into contracts!

!

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23 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 23

Overall sustainability performance is improving!

KEY FACTS

All regions are (still) lagging Australia

Companies/funds are moving from “Green

Starter” to “Green Talk”

20% of respondents are considered Green Stars,

similar to 2011

Page 24: GRESB Event at Philips Lighting

24 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 24

Private is still lagging behind Listed, but….!

KEY FACTS

The performance of ‘Listed’ has stabilized

‘Private’ is catching up

quite rapidly (was a Green Starter in 2011)

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25 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 25

Europe!!!!!!!

!!!

!!

Sector! Company name! Fund name! Legal structure!

Retail! Lend Lease Investment Management! Lend Lease Retail Partnership! Private!

Office! Climate Change Capital! Climate Change Property Fund! Private!

Industrial! Valad! European High Income! Private!

Residential! The Unite Group! -! Listed!

Other! Big Yellow! -! Listed!

Diversified! Land Securities! -! Listed!

Europe Sector Leaders!

All European sector leaders (listed) in the 2012 GRESB Survey are from the United Kingdom: British Land Co (Retail); Derwent London (Office) and Segro (Industrial).!

Page 26: GRESB Event at Philips Lighting

26 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 26

GRESB Scorecards and Member Portal!2012 GRESB Scorecards and Member Portal!!   Improved quality and design!!   Benchmark composition against same property type and region!!   More detailed benchmarking available at question level!!   New developments separate section !

!

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27 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 27

Member Portal!Features!Overview of selected respondents including:!!  Average scores!!  Four Quadrant Model!!  Number of Green Stars !!  Percentage outperforming

benchmark!!  Portfolio characteristics

(aggregated )!

Page 28: GRESB Event at Philips Lighting

28 GRESB | www.gresb.com | [email protected] | Copyright © GRESB 2012! 28

More information?! !   Visit the GRESB website at: www.gresb.com!!   View the full 2012 GRESB Report!!   Contact GRESB at [email protected]!

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Voordelen van het investeringen in duurzame verlichtingstechnologieën Derk Bots Commercial Director, Philips

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Confidential

Philips Lighting Het aanpakken van fundamentele maatschappelijke problemen

Het verbeteren van het leven van mensen door middel van zinvolle innovatie

Wie we zijn

Gestart in 1891 elektrisch licht Hoofdkantoor Eindhoven, Nederland Omzet €7.6 miljard in 20111 53,000 medewerkers belangrijkste markten Europa, Noord en Zuid Amerika en Azië-Pacific 80.000+ producten en diensten 5% van de omzet geïnvesteerd in R&D

Onze markten Onze missie

2011

30

Lampen/componenten & controls Professionele armaturen Consumenten armaturen Automotive LED modules

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Confidential

Het creëren van zinvolle innovaties Verbetering van leven op een nieuwe manier

Verkrijgen van inzichten in de behoeften en verlangens van mensen Verander inzichten in innovaties “Leer snel, goedkoop falen” Leiden open innovatie

31

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Confidential

Verandering is de enige constante En dat beïnvloedt hoe we denken, doen en reageren

Milieubewustzijn Energiezuinige verlichtingstechnologieën kunnen wereldwijd realistische besparingen bieden van 40% en meer.

Onze levensstijl verandert Mensen besteden meer tijd aan ontspanning, recreatie en sociale bezigheden thuis.

We worden steeds meer stads- en wereldburgers Gebouwen en straten nemen ongeveer 75% van alle voor verlichting verbruikte energie voor hun rekening.

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Confidential

De digitale revolutie LED-verlichting transformeert het hele landschap*

*Source: Philips Lighting global market study 2009, updated for 2010

87% 87%

13%

2010

Traditioneel

LED

50%

50%

2015

Traditioneel

LED

33

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Confidential

Een toekomst die rijk is aan zinvolle oplossingen Ontworpen vanuit de behoeften van mensen

• Standaard producten • Producten met lange levensduur • Technologiegestuurd

• Verkoop aan handelskanalen

•  Industriële schaal  

• Oplossingen die ontworpen zijn vanuit de mens

• Modulair, flexibel, samenwerkend • Verkoop aan voorschrijvers en

eindgebruikers •  Innovatie van businessmodel

• Diensteninnovator • Geïntegreerd

projectmanagement •  Intelligente verlichtingssystemen • Nieuwe softwarestandaarden

Leverancier van oplossingen

Systeemintegrator

Productenkampioen

• Partnership met onze klanten • Efficiënte integratie van producten • Bevorderen van lichtregelsystemen

• Economische systemen • Digitaal

34

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Confidential

Eenvoudig het leven verbeteren met licht Het verschil van Philips Lighting

+ Partners in innovatie

Gericht op de mens

+ Zinvolle oplossingen

35

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Confidential

9/25/12

36

Verlichting is niet alleen voor licht, het inspireert, creëert en maakt een statement Maak een goede indruk met aantrekkelijke ruimtes die een genot zijn om in te werken. Gebruik oa LED's om sferen te fine tunen voor elke stemming, behoefte of taak. Geniet van de ultieme kantoorverlichting met geavanceerde verlichting regelingen en slimme aansturing. Onze oplossingen verbeteren het imago van uw bedrijf en creëert maximaal effect met minimale belasting voor het milieu.

Eenvoudig het leven verbeteren met licht Gericht op de mens

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Confidential

9/25/12

37

Samenwerken zorgt voor goede resultaten. Co-development: Het creëren van nieuwe verlichtingsoplossingen die waarde toevoegen aan uw project. Toegang krijgen tot de meest recente technologieën, kennis en expertise Turnkey projecten en diensten: Een minimum aan gedoe, maximale voordelen Financiering, installatie, inbedrijfstelling Dedicated Philips team bewaakt en beheert uw project

Eenvoudig het leven verbeteren met licht Partners in innovatie

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Confidential

9/25/12

38

Verlichting is goed voor 30% van het energiegebruik in een kantoorgebouw. Met onze kantoorverlichting wordt uw gebouw: - “Groener” - Meer energie-efficiënt - Normconform Wij kunnen u helpen energie te besparen door: - Upgraden lampen - retrofit - Aanwezigheidsdetectie/daglichtregeling - Combineren taak- en algemene verlichting - Intelligente besturingen bv koppeling verlichting, zonwering en GBS

Eenvoudig het leven verbeteren met licht Zinvolle oplossingen

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Confidential 39

Afvalbrengstation Veenendaal

“Uitstekende lichtkwaliteit en CO2-neutraal. Dat zijn kenmerken die ons bijzonder aanspreken.” Het team Klant: ACV groep Locatie: Afvalbrengstation –

Veenendaal Architect: Mies Architectuur Installatieadvies: INNAX Installateur: Linthorst Lichtoplossing: SpeedStar, LEDline, DayZone, LuxSpace

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Confidential Confidential 40

Conferentiezalen ABN AMRO

“Met een hoger lichtniveau en een sprankelende uitstraling zijn onze zalen weer van deze tijd. We hebben een veel betere lichtkwaliteit en de storing op onze audiovisuele installaties is helemaal verdwenen.” Het team Klant: ABN AMRO Locatie: Foppingadreef – A’dam Architect: Sinot branding&design Installateur: Cofely - Amsterdam Lichtoplossing : DayZone, StyliD en lichtregelsysteem

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Confidential Confidential 41

Whirlpool Nederland Breda

“Het nieuwe lichtplan, met als hoogtepunt de PowerBalance LED armatuur met lichtregelsysteem, past perfect bij de groene ambities van Whirlpool. De energiebesparing loopt op tot wel 60% en het licht is beter en rustiger en dat werkt prettiger.” Het team Klant: Whirpool Nederland Locatie: Heerbaan - Breda Installateur: Jansen ET - Bavel Lichtoplossing : PowerBalance, LuxSpace, StyliD, Zadora

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Confidential Confidential 42

NAM Assen

“Met lagere onderhouds- en exploitatiekosten, een afname van het energieverbruik en een significant langere levensduur biedt LED de nodige voordelen” Het team Klant: NAM Assen Lichtontwerp Philips NL Lichtoplossing : DayZone, DaySign, LuxSpace, MASTER LEDspot

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Confidential 43

Page 44: GRESB Event at Philips Lighting

Copyright © 2012 Prologis

Simon Cox

First Vice President Project Management and UK Sustainability Officer

Corporate Responsibility

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Copyright © 2012 Prologis 45

Prologis – At a Glance

Prologis is the leading owner, operator and developer of industrial real estate Focused on global and regional markets across the Americas, Europe and Asia

$ 43.9 billion AUM 52.9 million m2

3,088 Buildings 21 Countries 4 Continents

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Copyright © 2012 Prologis 46

Prologis Business Activities

Real Estate Operations:

Global presence Local knowledge Diversified global customer base

Private Capital:

Management of 18 diverse funds Typical co-investment of 10-50%

Value Creation:

Sustainable Development Renewable Energy Leasing Global Customer Solutions

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Copyright © 2012 Prologis 47

Corporate Responsibility

Environmental Stewardship

Social Responsibility

Governance and Ethics

Operations

§  Lighting upgrades

§  Benchmarking

§  Greenprint Foundation

§  Smart metering

§  Technology pilot projects

Capital Deployment

§  Environmental certification

§  Energy performance

§  Embodied carbon

§  Infill development

§  Intermodal facilities

§  Renewable energy

§  ISO 14001

Community Engagement

§  Green Path

§  Corporate carbon emissions

§  Education and training

§  CR Champions

§  Charitable activities

§  Prologis Foundation

§  Volunteering

§  Space for Good Program

Corporate Governance

§  Governance practices

§  Independent directors

§  Business conduct hotline

Ethics

§  Code of business conduct

§  Employee training

§  Communications

Three dimensions of care: for the planet, for people and for the pursuit of excellence in business

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Copyright © 2012 Prologis 48

•  BREEAM 2011 Very Good - Pan European Goal

•  EPC ratings based on local systems

Sustainable Buildings - Environmental Certification

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Copyright © 2012 Prologis

• Designing low energy buildings requires a ‘step by step’ approach:

•  Include passive energy saving features: 15% roof lights, dual aspect offices, solar shading, air tightness and high levels of insulation

• Use efficient plant and systems: fluorescent lighting with movement and daylight controls, low NOX boilers, smart metering and energy monitoring

• Consider appropriate use of renewable energy: Solar thermal hot water, Solar Wall, tri-generation CCHP

49

Sustainable Buildings – Reduced Emissions

Prologis Carbon Footprint

Customer Carbon Footprint Design out the need for energy

Use energy efficiently

Use appropriate renewable energy

CO2

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Copyright © 2012 Prologis 50

Sustainable Buildings - Embodied Carbon Mitigation

Prologis Carbon Footprint

Customer Carbon Footprint

•  Carbon ‘Life Cycle Assessment’ - BS EN ISO14040 •  Cool Earth – 1,078 acres of rainforest protected •  Local education projects – 14 Schools

•  Planet Positive Certification

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Copyright © 2012 Prologis 51

Award Winning Approach

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Copyright © 2012 Prologis 52

Market Drivers and Opportunities

Customers • Reduce operating costs

• Reduce emissions

• Complement existing CSR programmes

Investors • Occupancy

• Future Proofing

• Value Presentation

Prologis • Sustainability as a customer service

• Reputational benefits

• Consistency and transparency

• Risk management

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Copyright © 2012 Prologis

53

Portfolio Buildings - Analysis

Benchmarking:

• Greenprint Foundation – Carbon Index

• Trials of smart meters and certification tools

• GRESB

• Memorandums of understanding

Lighting:

• Up to 64% of total energy use

• Warehouse lighting = 88%

• Specification = 1.46W/m2/100lux

• 40% of portfolio has high efficiency lighting

• 6 million m2 retro-fitted Energy Performance Certificates:

• A or B Ratings achievable with lighting upgrades

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Copyright © 2012 Prologis 54

Infill Logistics

Prologis target Global Locations near ports, airports and transport corridors Infill locations can significantly reduce supply chain emissions Intermodal facilities offer further benefits

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Copyright © 2012 Prologis 55

• Sustainability can drive occupancy and preserve value

• High quality buildings + upgrade as technologies improve

• Consistency is more important than flagship projects

• Access to good data is essential

• Getting this data brings us closer to our customers

Conclusions

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Presented by: Anne de Jong

Portfolio Manager Offices The Netherlands

GRESB Seminar CBRE Dutch Office Fund

20 September 2012

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CONFIDENTIAL AND PROPRIETARY

CBRE Dutch Office Master Funds

CBRE Dutch Office Fund

45 Institutional Investors

Fund Management Independent Supervisory Board

Fund Manager

Hans Copier

Portfolio Manager

Anne de Jong

Portfolio Dutch Office Fund 80 buildings > 600 tenants Ca 834,721 m² Ca EUR 2.1 billion

Introduction CBRE Dutch Office Fund

Fund Management

CFO

Richard van Altena

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CONFIDENTIAL AND PROPRIETARY

Our competiveness is determined by 3 items §  The quality of our locations

−  further increase our focus on multifunctional locations.

§  The quality of our buildings −  Sustainability is now a key element of the portfolio strategy −  Our (future) tenants demand buildings which offer them the possibility to introduce The New

World of Working −  All our tenants demand high quality building offering them at a maximum level of comfort −  We will be more focused on investigating possibilities to adjust our tenants into multitenant

buildings

§  The quality of our management (including services to current and potential tenants) −  To attract more new tenants and retain current ones we should further improve the level of our

management and services. −  Introduce more flexibility in contracts.

Investment and Leverage Policy Operating Policy

Page 59: GRESB Event at Philips Lighting

CONFIDENTIAL AND PROPRIETARY

Sustainable housing An obvious result of the investment strategy of CBRE Global Investors

WTC Amsterdam 1982 WTC Amsterdam 2010

Sustainable housing= •  Selecting the best locations for every sector in The Netherlands •  (Continuous) investment in the prime quality of the real estate

Result = sustainable demand for our buildings, thus return for our shareholders

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CONFIDENTIAL AND PROPRIETARY

Ambition 2010 – 2020 ‘The CBRE Dutch Office Fund wishes to be a leading provider of sustainable real estate products in our industry by providing tenants with sustainable accommodation solutions and offering our shareholders the most sustainable European office Fund.’

Objectives Our aim is to set the standard and therefore exceed the objectives set by the Dutch government, RGD and the IVBN. We have set 5 main objectives for 2013:

Five main objectives for 2013, based on property lifecycle Acquisition Properties that are acquired will have an outstanding sustainability level or

have the realistic potential to be upgraded to an acceptable level (measurement: minimal EPC-label A)

Operation Outperform on sustainability performance in our industry peer groups (measurement: average EPC-label of portfolio outperforms Dutch office market)

Refurbishment Properties that will be refurbished will be upgraded to an acceptable sustainability level (measurement: minimal EPC-label C)

(Re)Development Properties that are (re)developed will be (re)built to an outstanding sustainability level (measurement: minimal EPC-label A)

Disposal Sustainable criteria will be taken into account during the disposal process (measurement: presence into the relevant disposal documentation)

Sustainable strategy

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CONFIDENTIAL AND PROPRIETARY

Obtaining results for tenant and landlord

Result: •  Demands of the client (tenant) are realized; •  Obtain conditions of the owner (landlord); •  Comfort for the users of the office building; •  Part of corporate responsibility policy of both client and landlord.

Achieving sustainable buildings together with our Tenants

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CONFIDENTIAL AND PROPRIETARY

Sustainable renovations and redevelopments Overview of realised sustainable renovations within the DOF portfolio

WTC Amsterdam Amsterdam - Tenant brochures - Execution quick wins - BREEAM in use certificate - All buildings energy label A

Vivaldi offices Amsterdam - Greenlight EU award - Innovative lightning - Energy label B after renovation

Groene Toren The Hague -  Energiy label from G to B -  Cooperaion with tenant

Lange Voorhout The Hague -  Energy label C - New façade glass

Hojel City Centre I Utrecht -  New ways of working -  Minimal label from E to C

Nieuw Amsterdam Gebouw Amsterdam -  Total redevelopment - BREEAM renovation certificate - Energy label A after renovation

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CONFIDENTIAL AND PROPRIETARY

Sustainability achievements

§  Dutch Office Fund is considered to be a Green Star in the GRESB survey which was executed on behalf of a group of investors (a.o. ABP, PGGM);

§  The WTC Amsterdam belonged to the first group of five properties which received the first BREEAM in Use certificates.

§  Due to major renovations projects in Amsterdam, Rotterdam, The Hague and Utrecht the average energy label score is gradually improving. The portfolio is well ahead in relation to the market average.

CBRE DOF will head towards an average of energy label B after completion of the redevelopments and refurbishments

0%

10%

20%

30%

40%

50%

A B C D E F G

ING DOF

Dutch market

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CONFIDENTIAL AND PROPRIETARY

Green Action Plan 2012 PORTFOLIO 1. LABELING & BENCHMARKING

- Label key properties of ING DOF with BREEAM-In-Use - Benchmark portfolio on ISA's Key Performance Indicators (KPI)

2. PERFORMANCE MONITORING

- Adapt INREV sustainable reporting standards - Provide report on actual standings based on INREV standards

3. TENANT ENGAGEMENT

- Further develop programs for tenants to inform them regarding sustainability - Provide insight in the energy behaviour of the tenant's

4. PROCUREMENT POLICY

- Set up procurement policy - Communicate procurement policy to stakeholders

5. PROPERTY MANAGEMENT

- Add a sustainable paragraph based on actions to the property management agreement

6. ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)

- Develop EMS system for the portfolio - Integrate all relevant data and KPI's

PROPERTY 7. CLIMATE INSTALLATIONS

- Optimize climate installations where feasible based on 2011 analysis

8. WATER CONSUMPTION DATA - Start monitoring water consumption in m3 - Calculate spendings on water consumption in €

9. WASTE MANAGEMENT - Start tender for waste management procurement - Gather data on waste consumption in m3 and €

Sustainability reporting, sustainability report 2012

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CONFIDENTIAL AND PROPRIETARY

Sustainability report 2012

Available at out website: WWW.DUTCHOFFICEFUND.COM

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CSR 2.0 FROM RESPONSIBILITY TO OPPORTUNITY

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PORTFOLIO OVERVIEW

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CSR STRATEGIES: VALUE CREATION

Compliance & Risk

Cost reduction & Efficiency

Innovation, growth & competitive advantage

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EXHIBIT 1: SAM 2011

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EXHIBIT 2: HARVARD 2012 VALUE OF CSR-COMPANIES

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EXHIBIT 3: THE RETAILER

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The Brands that Survive Will Be The Brands That Make Life Better

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EXHIBIT 4: THE NEW CONSUMER

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WHY? PURCHASE MOTIVATOR

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GREAT COMPANIES ARE STAKEHOLDER VALUE BUILDERS, NOT JUST SHAREHOLDER AGENTS

“These companies pay their employees very well, provide great value to customers, and have thriving, profitable suppliers. They are also wonderful for investors, returning 1025% over the past 10 years, compared to only 122% for the S&P 500 and 316% for the companies profiled in the bestselling book Good to Great -- companies selected purely on the basis of their ability to deliver superior returns to investors.”

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THE CASE FOR CORIO

• A growing number of consumers are choosing to buy sustainable brands. Retailers are adapting to this movement quickly. We should too, as a business moving from B2B to B2C & as a preferred partner for retailers

• Sustainability is only adding to a brand’s succces if it is based on top performance.

Drive consumer preference

• Many retailers have sustainability goals of their own. A more sustainable brand is increasingly a more desirable brand. • We share our expertise in areas such as wellbeing and energy efficiency. This collaboration is broadening and deepening the relationships we have with retailers.

• Sustainability is increasingly a retainer for existing customers and attracting new ones, hedge against changing tenant preferences

• It will help us and our customers reduce exposure to energy price volatility

Be the preferred partner for retailers

• Sustainability is a fertile area for product and service development. It is allowing us to deliver new services /solutions with new consumer and retailer benefits.

Fuel sustainable innovation

• There is a proven relation between urban development levels and our profitability. Unemployment in our areas impact our rental growth directly. By helping people become more economically and socially viable, we help the vitality of our centres.

• Energy is a basic requirement in today’s and tomorrows society. High energy prices due to scarcity will destabalise the societies in which we operate and affect purchasing power of individuals. By developing sustainable solutions to local energy demands, we not only help society but secure our future.

Be a top social performer

• Managing our business sustainably reduces energy use, waste and water. It not only generates cost savings, it also saves the retailer money through lower service charges

Be a top environmental performer

• Higher rental income, lower obsolence risk, lower cost of capital, higher sales prices are a few research based findings related to sustainable assets

Translate sustainability value to economic value

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OVERVIEW CSR HIGHLIGHTS

§  Included in DJSI Europe 2012 , ASPI,

Vigeo, ESG leaders index §  Sector Winner in Transparency

Benchmark by Dutch Ministry of Economic Affairs

§  Corio included in the list of great places to work

§  BREEAM Very Good certification for Tarsu (Turkey)

§  ICSC Resource Award and a BREEAM Very Good rating for Forum Duisburg

§  Galerie Dresden first shopping centre to have a BREEAM Excellent rating in continental Europe

§  Groene Baksteen award 2012 §  Fastest mover in VBDO benchmark

We embrace the concept of Shared Value: to fulfil our mission while advancing economic and social conditions in our communities.

9/25/12 77 Nevap lezing

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S4EEB: INNOVATION

S4EeB aims to monitor and process sounds and noises for determination of occupancy to improve building energy management (BEM) and efficiency.

• Integration with other HVACL systems • Interoperates with all ICT systems • Capable of learning from previous situations

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Let’s ask ourselves in these turbulent times…

Can we, the real estate industry, afford to ignore the evidence?