Charlie Chen | UTS Business School Course 21874 | October 6, 2013

Report and Analysis of Brookfield CSR Initiative

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Table of Contents

Executive Summary .................................................................................................................................. 2

Introduction.............................................................................................................................................. 3

Environment Protection & Sustainable Growth ..................................................................................... 3

Principle 1 ........................................................................................................................................... 3

Principle 2 .......................................................................................................................................... 4

Principle 3 .......................................................................................................................................... 4

LEED® Certification - U.S. and Canada ................................................................................................... 4

Green Star and NABERS - Australia ........................................................................................................ 4

Green Star1 and NABERS Ratings ............................................................................................................ 5

Sydney ................................................................................................................................................... 5

Melbourne ............................................................................................................................................. 5

Perth ...................................................................................................................................................... 5

Energy Efficiency Innovations ................................................................................................................. 7

Alternative Transportation .................................................................................................................. 7

Electric Vehicle Charging Stations ...................................................................................................... 7

Featured Properties .................................................................................................................................. 7

One World Financial Center, New York City ..................................................................................... 7

One Shelley Street, Sydney ................................................................................................................. 8

Bankers Hall, Calgary ....................................................................................................................... 9

Conclusion ............................................................................................................................................... 10

Reference .................................................................................................................................................. 11

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Executive Summary

This report provides vast information and analysis of the corporate social responsibility (CSR)

initiatives that Brookfield Office Properties Inc. has executed in reducing carbon footprint along

with a history of operational excellence and sustainability.

The author (a staff of Brookfield subsidiary) will emphasize on the ongoing commitments of

company’s senior management team and present an analysis on the tangible outcome of its CSR

initiatives in a global scale and its positive impacts/ benefits to the physical and social/culture

environment. Most of the information were come from Brookfield Office Properties Inc. annual

CSR Reports, others from the company’s web site:

http://www.brookfieldofficeproperties.com/content/corporate/corporate_responsibility-3200.html

Brookfield Office Property Inc. has received higher rating in following categories from Global CSR

rating perspective due to its resolution to challenge itself continually in promoting sustainable

growth, investing in green building technologies, being transparent in all its operations and making

positive contributions to the communities where we live and work (Clark, 2011).

Every day, in every city in which the company operates, Brookfield is investing in green building

innovations such as energy-efficient systems, environmentally sound construction technologies,

and strategies to reduce building carbon footprint.

At Brookfield, senior management team believes that these efforts promote the long-term

interests of all its stakeholders, including employees, tenants, business partners, investors,

local communities, government officials, and the commercial real estate industry at large

(Clark, 2011).

CSR HUB® Basic corporate social responsibility ratings

Overall Community Employees Environment Governance

Brookfield Properties Corporation 58 56 53 61 61

Real Estate Management & Development 49 49 49 48 50

All company average 53 52 54 53 51

Canada company average 53 48 54 51 57

(Source: http://www.csrhub.com/CSR_and_sustainability_information/Brookfield-Properties-

Corporation/)

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Introduction

CSR is “company’s commitment to operating in an economically, socially, and environmentally

sustainable manner, while recognizing the interests of its stakeholders, including investors,

customers, employees, business partners, local communities, the environment, and society at

large”(Clake, 2013).

CRS as a “holistic strategy … covers a broad spectrum of a company’s activities, range from human

resource management to environmental protection, and includes every aspect of a firm’s impact on

society. A company might need to explain what they stand for, how corporate responsibility is

carried out, and how people benefit from such actions.”(Sheikh and Beise-Zee, 2011, p.1).

The senior management team of Brookfield Office Properties Inc., put responsible business

practices in a top priority and believe it is the essential component of company’s continual success.

This commitment is part of the company culture. The business units defined goals and metrics to

ensure that company could be operated to the highest standards in a transparent and collaborative

manner.

This pledge includes meeting responsible global environmental standards and investing the

necessary resources to make positive and lasting impacts in the cities in which the company

operate worldwide.

Environment Protection & Sustainable Growth

At Brookfield, the mission is to provide the highest quality commercial office space, at the same

time with an unwavering commitment to delivering responsible environmental solutions and

innovative environmental strategies to tenants, shareholders, and the communities.

Environmental initiatives are a major component of Brookfield's strategic business plan. The

ultimate objective of this initiative is to maximize energy and resource efficiency and

environmental stewardship at company’s properties, together with the wellness and safety of

tenants, employees, and those that live in the neighborhoods that house the properties.

The company achieves this through an integrated strategy based on three principles that are

embedded in the Brookfield corporate culture. These tenets are the foundation of the commitment

to environmental responsibility.

Principle 1

To operate, develop, retrofit, redesign and renovate properties to achieve optimum energy

efficiency, occupant satisfaction and reduced carbon emissions.

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Principle 2

To employ innovative environmental strategies achieving best-in-industry environmental

performance in all new office developments.

Principle 3

To seek best-in-class environmental certifications, actively participate in green industry

organizations, and support new initiatives that foster the energy and resource-efficient operation of

office buildings and environmentally sustainable communities and practices .

LEED® Certification - U.S. and Canada

In North America, Leadership in Energy & Environmental Design (LEED®) is the industry standard

for sustainable, green properties. The standard rates the environmental performance of many facets

of real estate, including: 1) Existing buildings' operations and maintenance (LEED EB O&M); 2) the

Core & Shell of new developments (LEED CS); and 3) the Commercial Interiors of specific tenant

spaces (LEED CI).

In 2011, Brookfield secured 10 new LEED certifications in the following North American properties:

• One World Financial Center, New York City, NY: LEED EB:OM Gold

• 245 Park Avenue, New York City, NY: LEED EB:OM Gold

• Newport Tower, Jersey City, NJ: LEED EB:OM Gold

• Victor Building, Washington, DC: LEED EB:OM Gold

• 1200 K Street, Washington, DC: LEED EB:OM Gold

• 1400 Smith Street, Houston, TX: LEED EB:OM Gold

• Continental Center I, Houston, TX: LEED EB:OM Gold

• Figueroa at Wilshire, Los Angeles, CA: LEED EB:OM Gold

• Marina Towers - North & South, Marina Del Rey, CA: LEED EB:OM Silver

Green Star and NABERS - Australia

In September 2010, Brookfield acquired an interest in a portfolio of 19 office properties in the

Australian cities of Sydney, Melbourne and Perth.

In Australia, Green Star and NABERS (National Australian Built Environment Rating System) are

the two governing programs that certify sustainable building credentials, comparable to LEED in

North America. Green Star evaluates environmental design and the construction of buildings.

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NABERS measures the energy performance, water performance and carbon footprint of existing

properties over a 12-month operating period.

Green Star1 and NABERS Ratings

SYDNEY

Property NABERS

Energy

NABERS

Water

Green Star -

Office Design v2

Green Star -

As Built v2

52 Goulburn Street 5.5 stars 4 stars N/A N/A

American Express House 5 stars 4 stars N/A N/A

Darling Park I 5 stars 3.5 stars N/A N/A

Darling Park II 5 stars 3 stars N/A N/A

E&Y Centre 4.5 stars 3.5 stars N/A N/A

IAG House 4.5 stars 3.5 stars 5 stars 4 stars

KPMG Tower 5 stars 1 stars N/A N/A

NAB House 5 stars 3.5 stars N/A N/A

One Shelley Street N/A2 N/A2 6 stars 6 stars

MELBOURNE

Property NABERS

Energy

NABERS

Water

Green Star -

Office Design v2

Green Star -

As Built v2

Bourke Place 3.5 stars 2.5 stars N/A N/A

Defence Plaza 3.5 stars N/A N/A N/A

Southern Cross East 4.5 stars 3 stars N/A N/A

Southern Cross West 4.5 stars 5 stars 5 stars N/A

PERTH

Property NABERS

Energy

NABERS

Water

Green Star -

Office Design v2

Green Star -

As Built v2

235 St. Georges Terrace 5 stars N/A 5 stars N/A 1 All buildings designed prior to introduction of the Green Star rating tool in 2003 are not applicable for this rating. 2 Newly constructed building currently in exemption period (less than two years) for NABERS rating.

Environmental achievements within the Australia portfolio include:

Average 4.75 stars NABERS energy rating

Average 3.30 stars NABERS water rating

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Average 5.25 stars Green Star design across all sites developed or refurbished

from 2006

NABERS Energy - 6 star maximum

0 stars - Very poor

1 star - Poor

2 stars - Below average

2.5 to 3 stars - Average

4 stars - Good

5 stars - Excellent

6 stars - Market leading

NABERS Water - 6 star maximum

0 stars - Very poor

1 star - Poor

2 stars - Below average

2.5 to 3 stars - Average

4 stars - Good

5 stars - Excellent

6 stars - Market leading

Green Star - Office Design v2 - 6 star maximum

4 Star Green Star Certified Rating (score 45-59) signifies 'Best Practice' in

environmentally sustainable design and/or construction

5 Star Green Star Certified Rating (score 60-74) signifies 'Australian Excellence'

in environmentally sustainable design and/or construction

6 Star Green Star Certified Rating (score 75-100) signifies 'World Leadership' in

environmentally sustainable design and/or construction

Green Star - Office as Built v2 - 6 star maximum

4 Star Green Star Certified Rating (score 45-59) signifies 'Best Practice' in

environmentally sustainable design and/or construction

5 Star Green Star Certified Rating (score 60-74) signifies 'Australian Excellence'

in environmentally sustainable design and/or construction

6 Star Green Star Certified Rating (score 75-100) signifies 'World Leadership' in

environmentally sustainable design and/or construction

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Energy Efficiency Innovations

Brookfield set rigorous energy efficiency standards at its properties around the globe. The

company is in the industry vanguard of utilizing innovative and effective tools and

metrics to curtail energy use and carbon emissions.

ALTERNATIVE TRANSPORTATION

Brookfield recognizes that a commitment to environmental excellence must extend

beyond the walls of our office buildings. To that end, company has expanded programs to

offer a variety of transportation options - such as carpooling, public transportation,

biking, and electric-vehicle parking - for its employees and tenants as they travel to and

fro from work.

A recent survey of its properties across Canada indicated that 90% of its occupants are

now using commuting alternatives to single-occupant automobiles on a routine basis. One

of its most successful transportation programs is the Alternative Transportation program, launched in 2011 in Toronto, Calgary and Vancouver, which offers online carpool zones

and ride-matching services for its tenants.

ELECTRIC VEHICLE CHARGING STATIONS

After the success of its first electric vehicle charging station in its Houston parking

garages, the company expanded the program in 2011, installing charging stations in select

garages in Washington, DC, Los Angeles, Boston, New York City and Toronto.

Featured Properties

One World Financial Center, New York City

At 1.7 million square feet, One World Financial Center

- one of the four office towers comprising the iconic 8-

million-square-foot World Financial Center complex in

Lower Manhattan - became the largest office building

in New York to receive a LEED EB:OM Gold

designation upon certification in May 2011.

One World Financial Center earned 99% of the LEED credit points necessary to achieve

the Gold standard. Making the feat all the more impressive is the traditionally high

standard in New York City for achieving environmental certifications.

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Several facets of the property's operational best practices and recognized environmental

performance were highlighted by the U.S. Green Building Council during the LEED

certification effort:

100% of the building's carbon footprint is offset through the purchase of

Renewable Energy Credits and Carbon Offsets.

The property's Energy Star score - which rates a building's comprehensive energy

performance - is in the top 20% of all comparable properties nationwide. The high

score is due to both capital investment and energy management best practices.

An upgrade of powered janitorial equipment has improved tenant comfort and

safety.

A reduction of pesticide toxicity was achieved through implementation of an

integrated interior pest management program.

One Shelley Street, Sydney

The One Shelley Street office building in Sydney -

which serves as Macquarie's Australian

headquarters - achieved a 6-star Green Star rating

from Australia's Green Building Council.

Compared with an average Sydney office

building, One Shelley Street emits 50% less

greenhouse gas emissions, saves the equivalent of

2.5 Olympic swimming pools of water per year, and has a significantly improved Indoor

Environmental Quality (IEQ).

Built in 2009 at a coveted location close to the water at Sydney's King Street Wharf, One

Shelley Street was a prime candidate for some of the most original and thoughtful

sustainability features ever to be showcased in a complex of this kind. The property

comprises retail and two low-rise office buildings.

The property was designed and constructed with world-leading sustainable design

principles:

Heat-rejection technology draws seawater from the harbor to be used in the

building's first-stage cooling system.

Chilled beam technology uses the natural convection properties of simple fresh air

to cool the building.

Automated lighting controls automatically adjust lighting in certain areas when

natural daylight is more than sufficient.

The Brookfield operation team's close collaboration with the future tenant

throughout the entire integrated fit-out process led to a vast reduction in material

waste.

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These, and many of the other innovations featured in this property, are very much part of

the "designed-in" sustainability strategies Brookfield utilizes aimed at generating best-in-

industry environmental performance.

Bankers Hall, Calgary

The three-building Bankers Hall complex is one of

the most prominent business addresses in

downtown Calgary. The property is registered in

the LEED EB:OM program and is currently

targeting the Gold level of certification, with

accreditation expected in 2012.

The property meets all ten prerequisites of LEED

EB:OM:

Energy efficiency best management

practices: planning, documentation, and

opportunity assessment

Minimum energy efficiency performance

Refrigerant management for ozone

protection

Sustainable purchasing policy

Solid waste management policy

Minimum indoor air quality performance Environmental tobacco smoke control

Green cleaning policy

Water metering and minimum indoor plumbing

Fixture and fitting efficiency

In addition to meeting the minimum requirements, the property has implemented other

policies and programs such as enhanced green cleaning procedures and a multifaceted

alternative transportation program available to all occupants.

The Alternative Transportation program has aided the property in determining that 84%

of building occupants use sustainable modes of travel (e.g. bicycling, carpooling, public

transit) when commuting to and from the workplace. Furthermore, the property has

verified and registered its carbon emissions under an accredited voluntary program, and it

ranks in approximately the 80-85th percentile in energy performance among all buildings

in North America based on Energy Star guidelines.

In addition to implementing new environmental policies and programs to become LEED

certified, other green amenities and highlights at Bankers Hall include:

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Annual Earth Hour participant

BOMA BEST (Building Environmental Standards) Level 3 (80-89%)

Certification

FSC (Forest Stewardship Council)-certified paper products

Membership in Green Calgary Association

Smoke-free building perimeter

Since 2007, Bankers Hall has managed to reduce the amount of waste sent to landfill

annually by 24%. The building's recycling efforts contribute to an annual savings of

2,108 cubic meters of landfill space.

Conclusion

Brookfield strives to build upon its successes and identify new opportunities to

implement corporate responsibility strategies.

Their goal is to be recognized as a leader and innovator in the field of energy

conservation as the company has been operating and developing the most sustainable

commercial properties in the United States, Canada and Australia.

CSR essentially provides an abstract reference to a broad range of activities that can

result in rewards to a company in the shape of enhanced reputation, increased customer

loyalty and higher market value to name just a few. However, the concept is often

difficult for the public to fully comprehend. It has therefore become increasingly

common for an organization to make its actions more visible by closely engaging with a

specific cause through the provision of financial or other forms of support(Sheikh and

Beise-Zee, 2011).

There are increase numbers of environment scientists suggested we should rethink our

approach from dealing with environmental issues when we are dramatically increasing

our modern living heavily relied on consumable electronic devices. By revealing data

Maxwell and Miller (Maxwell, R., Miller T, 2012) show how our media culture of flat-

screen televisions, iPads, and smartphones has a destructive impact on the ecology, the

global energy supply, and the working conditions of laborers in low-wage countries.

There are more and more pioneer companies commercially produce revolutionary

greening materials (media) for electronic devices. Some of those material using body heat

as power source to drive electronic device (http://www.epotek.com/site/).

A group of business and community leaders in US has projected a vision of corporation

2020 based on imperative to redesign the corporation. The principles they advocate are

that the purpose of the corporation in to harness private interests to serve the public

interest. The effective integration of corporate social and environmental responsibilities

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could potentially release greater value for shareholders and wider stakeholders (Clark. T.

2007, Internal Corporate Governance, Routledge, New York).

The drive for energy-efficient building comes down to a quest for the so-called tight

envelope. There are many new energy-efficient products enter the market each year. In

many cases, just adding a layer of insulation or a specially glazed window can increase

the cost of materials by 20 to 30 percent. But in most cases, experts in energy

conservation argue that more efficient materials will lead to lowered costs of heating and

cooling a house, so the building will recover that money, usually within several years

(http://home.howstuffworks.com/home-improvement/construction/green/10-cutting-edge-

building-materials.htm).

Reference

Brookfield Board CSR Statement.

Brookfield CSR Report2013.

Brookfield CSR Report 2010.

Brookfield Enviroment Protection and Sustainable Growth.

Brookfield Policy of Sustainability.

CLAKE, T. 2013. Session 8 CSR & Sustainability Intro 2013.

Clark. T. 2007, Internal Corporate Governance, Routledge, New York

CLARK, R. 2011. Brookfield CSR Report 2011.

GE_ecomagination_2010AnnualReport.

GREEN, T. & PELOZA, J. 2011. How does corporate social responsibility create value for consumers? Journal of Consumer Marketing, 28, 48-56.

http://www.csrhub.com/CSR_and_sustainability_information/Brookfield-Properties-Corporation

http://home.howstuffworks.com/home-improvement/construction/green/10-cutting-edge-building-materials.htm

Maxwell, R., Miller T, 2012, “greening The Media”, Oxford University Press, New York

SHEIKH, S.-U.-R. & BEISE-ZEE, R. 2011. Corporate social responsibility or cause-related marketing? The role of cause specificity of CSR. Journal of Consumer Marketing, 28, 27-39.