2021 ESG ReportDownload
A LETTER TO OUR STAKEHOLDERS
In 2021 we continued to execute our business while remaining focused on creating positive economic, social and environmental outcomes for our clients, shareholders, employees and the communities we serve. We advanced policies, programs and projects that support sustainable development and operations and the key issues that impact our business and stakeholders, including climate change, health security and social equality.
Our focus on ESG makes BXP a stronger and more purposeful company. We make a positive impact through the advancement of climate action and risk management while aligning with the decarbonization ambition of our clients, communities and local governments. We make our buildings destinations where people want to be together by cultivating great spaces and places for our employees and clients in healthy buildings with excellent indoor air quality, amenities, walkability and access to services. Through promotion and active efforts to increase diversity and inclusion throughout our operations, we are attracting and increasing input from employees with a wide range of backgrounds and seniority levels. Efforts to amplify and promote different ideas, perspectives, and individuals’ varying domain expertise foster a work environment and company culture that encourages and elevates all individual voices.
IN 2021 WE CONTINUED TO ADVANCE OUR ESG EFFORTS BY:
- establishing a Sustainability Committee of our Board of Directors to increase Board input and oversight over sustainability and related issues,
- announcing a commitment to achieve carbon-neutral operations by 2025, and increasing renewable energy consumption to 70.4% of total power consumed by BXP,
- increasing actively managed property area certified under the U.S. Green Building Council® Leadership in Energy and Environmental Design™ (LEED) rating system to 26.1 million square feet, of which 98% is certified at the highest Gold and Platinum levels,
- issuing a total of $1.7 billion of Senior Unsecured Notes in our third and fourth “Green Bond” offerings and committing to allocate the net proceeds to “Eligible Green Projects” that support our sustainability goals,
- adding a sustainability-linked pricing component to our credit facility that ties a one basis point interest rate reduction to the achievement of green building certification targets,
- engaging Moody’s ESG Solutions, an independent provider of science-driven insights and analytics on climate risk, for its climate risk scoring to evaluate the forward-looking physical climate risk exposure of our entire portfolio and potential acquisitions,
- identifying actionable diversity goals, and executing initiatives in the areas of recruitment and development, company policies, and community outreach,
- launching the formation of three Employee Resource Groups for Women, Ethnic Minorities and LGBTQ+,
- working with minority-owned businesses to provide commercial real estate space on attractive terms. Relationships have already commenced in two of our regions,
- procuring a minority- and woman-owned bank to act as co-manager in two of our unsecured senior notes offerings in 2021 and commencing a depository relationship with a Black-led bank, and
- surveying vendors regarding their sustainability and diversity and inclusion practices.
OUR ESG LEADERSHIP WAS RECOGNIZED BY NUMEROUS INDUSTRY GROUPS AND THE DISTINCTION OF:
- ranking among the top real estate companies in the GRESB assessment, earning a sixth consecutive 5-Star rating. 2021 was the tenth consecutive year that BXP earned the GRESB “Green Star” designation,
- being named an ENERGY STAR Partner of the Year – Sustained Excellence Award Winner,
- being named to Dow Jones Sustainability Index (DJSI) North America. BXP was one of nine real estate companies that qualified and the only office REIT in the index, scoring in the 93rd percentile of the real estate companies assessed for inclusion,
- being named to Newsweek’s America’s Most Responsible Companies 2022
list for the second consecutive year. BXP ranked first in the real estate industry with a ranking increase from 56th overall out of 421 companies in 2021 to 31st overall out of 499 companies in 2022,
- ranking #4 on the inaugural Forbes Green Growth 50, a list focused on large American corporations that have reduced greenhouse gas emissions while simultaneously growing earnings,
- being named a Green Lease Leader at the highest Gold level by the Institute for Market Transformation and the U.S. Department of Energy for exhibiting a strong commitment to high performance and sustainability in buildings and best practices in leasing,
- being named a Best in Building Health winner by the Center for Active Design for the Most Approved Assets under the Fitwel Viral Response Module, and
- being named among the ten Most Sustainable Real Estate Investment Trusts in the U.S. by Barron’s, with the help of Calvert Research and Management. BXP improved from eighth place to third place on the list.
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. We are proud of our position and consistent recognition as an industry leader in sustainability and ESG. We will continue to demonstrate our commitment and capacity to conduct our business in a manner that contributes to positive economic, social and environmental outcomes for our clients, shareholders, employees and the communities we serve.
Owen D. Thomas, CEO Douglas T. Linde, President