2018 Sustainability Report

Letter to our stakeholders

Throughout 2018 we remained focused on sustainable activities that benefit our tenants, shareholders, employees and communities we serve. We continued to execute our sustainability strategy across our five regions by implementing policies, programs and projects that advance our commitment to sustainable development and operations. Through the execution of our business strategy, we believe we can make positive environmental and social impacts that support the prosperity of our company and the vital centers of research, commerce and civic life where we operate. 2018 was another strong year for Boston Properties (BXP) as we made progress and maintained our leadership on environmental, social and governance (ESG) issues.

• For the seventh straight year, we ranked in the top quadrant of the Global Real Estate Sustainability Benchmark (GRESB) assessment, earning our seventh “Green Star” recognition and the highest GRESB 5-star Rating;
• We placed 63rd out of 874 companies internationally — among the top 8% of worldwide participants in the 2018 GRESB assessment;
• We received the highest overall ISS Governance QualityScore among our direct office REIT peers and tied for the 5th highest score among a pool of 16 REIT benchmarking peers;
• We issued $1 billion of green bonds in our inaugural green bond offering. The bond was 2.5 times oversubscribed and attracted a pool of green investors that represented 23% of the total issuance. The proceeds have been used to fund eligible green projects;
• We reduced like-for-like energy and water use 24% and 25% respectively below a 2008 base year, avoiding approximately $24 million in annual recurring operating costs;
• We were selected as a 2019 ENERGY STAR Partner of the Year winner by the U.S. Environmental Protection Agency;
• We joined the Science Based Targets Initiative, committing to the alignment of our company-wide greenhouse gas reduction activity meets or exceeds the “science based target” criteria;
• We completed the largest indoor lithium-ion energy storage system of its type in the United States at Colorado Center to manage peak demand and support grid resiliency;
• We partnered with a leading healthy building certification system, Fitwel, becoming a Fitwel Champion, using the Fitwel system to support healthy building design and operational practices across 6 million square feet of our portfolio;
• We added several new family friendly programs to further assist employees balance work and personal life;
• We increased our property area certified under the U.S. Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) certification program to 21 million square feet, including the addition of the LEED Gold Times Square Tower in New York City and the LEED Platinum Salesforce Tower in San Francisco. Salesforce Tower earned more points under the LEED Version 3 rating system than any other project in the San Francisco Bay Area and is the highest rated green skyscraper in the State of California;
• We maintained our ongoing commitment to volunteerism and philanthropy by donating over 3,000 service hours to more than 300 community events and charitable activities; We will continue to implement policies, programs and projects that complement sustainable development and operations. Our experience demonstrates that through our activities as real estate owners, developers and managers, we can contribute to environmental solutions as a positive force while improving our financial performance and becoming a stronger, more purposeful organization in the process.