Corporate Sustainability

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Corporate Sustainability Responsibility
(CSR)at MorguardCanadian Responsible
Investment ConferenceJune 7, 2009
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Agenda

• Overview of Morguard
• What we are currently doing
• On the immediate horizon
• The development of a Morguard CSR Strategy
• External drivers
• Internal drivers
• Approach
• Beyond green

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Morguard Overview

• Morguard is one of Canada's largest integrated
  real estate companies with a diversified
  portfolio of more than 9.2 billion in properties
  owned or under management.
• We offer investment and property management
  services across all asset classes.
• We operate from a nationwide network of offices
  in the country's major markets.

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Growth of Assets Under Mgmnt
Morguard REIT Acquisition of Devan Properties
Ticor Realty Investment Acquisition
Morguard Investments Limited Established
Acktion Corporation Acquires Morguard
Metropolitan Life Acquired Morguard
PPL Becomes Morguard REIT
Assets under management have increased 300 over
10 years
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What We Are Currently Doing

• GreenLink (and BOMA BESt)
• Extensive green building program (LEED)
• Corporate giving
• Charity fundraising
• Human resources policies
• Employee engagement strategies
• Recruitment and retention strategies
• Health and safety policies
• Environmental issues from asbestos to mould

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On the Immediate Horizon

• GHG measurement and reporting
• Green community projects
• Project Green Pearson Airport Eco-Business Zone
• Renewable power initiatives
• Development of a philanthropy, charity and
  community donation policies
• Potential alternative energy projects
• Smart commuting
• Communication and reporting
• Regional office initiatives

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The Project CSR at Morguard

• The need to consolidate initiatives under one CSR
  strategy
• The need to align CSR strategy with corporate
  strategy
• The need to measure performance
• The need for transparency

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The Project The Phases

• Real Estate Industry Trend Analysis
• Stakeholder Analysis and Mapping
• ESG Profile, Benchmarking and Gap Analysis
• Best Practices
• Sustainability Opportunities
• Alignment with CSR Vision
• Morguard CSR Strategy

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Phase 1

• Real Estate Industry Trend Analysis

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Phase 2

• Stakeholder Analysis and Mapping

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External Stakeholders Clients

• Progressive
• We are setting baselines now and will be looking
  for continuous improvement on GHG performance.
• Over time our Socially Responsible Investment
  policies will extend out to our asset managers.
• We have to build Green or we are facing
  obsolescence as soon as the new development is
  ready."

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External Stakeholders Clients

• Middle of the Road
• We used to offer SRI funds but it was so
  unclear to so many different people. It was very
  difficult to define what was SR and we had
  difficultly defending our exclusions.
• Old School
• We dont want to constrain the investment
  opportunities that we might pursue to only those
  with environmentally sound practices.

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Internal Stakeholders

• Progressive
• Sustainability is extremely important, it will
  be an investor liability issue.
• The biggest cheers at the annual meeting were
  for our environmental awards. It comes from the
  operations people right up to the top.
• We are getting requests specifically for
  certified green buildings from tenants
  particularly government and particularly in
  office.

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Internal Stakeholders

• Middle of the Road
• It is on the radar but a bit disjointed, not a
  set overall plan.both the environment the
  charity side. There are sustainability
  initiatives but not everyone knows what is going
  on.
• Old School
• Most employees would rather have a job security
  and then deal with the environment in the future.

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Phase 3

• Environmental, Social Governance (ESG) Profile
• Benchmarking and Gap Analysis

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Benchmarking
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Phase 7

• Morguard CSR Strategy

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CSR Strategy Internal Drivers

• 32 years of outperformance
• Morguard has outperformed the IPD benchmark by an
  average of 109 basis points since inception
• Longstanding client relationships
• Morguards active group of clients includes many
  of Canadas largest pension funds and
  international investors.

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CSR Strategy

• Holistic and Long-term
• Environmental Footprint
• Employment Practices
• Impact on Communities
• Sustainable / Ethical Sourcing
• Governance
• Communications Reporting

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Beyond Green

• Real estate industrys performance on
• Becoming an employer of choice
• Diversity
• Architecture, aesthetics and being a responsible
  community member

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Employer of Choice

• No real estate companies on
• Canadas Top 100 Employers
• Aecon
• PCL Construction Group
• CH2M HILL Canada
• HOK Canada
• Greater Toronto's Top 75 Employers
• Canada's Best Diversity Employers
• Canada's Greenest Employers
• Intrawest ULC at Whistler Blackcomb

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Employer of Choice

• No real estate companies on
• Canadas Top 100 Employers
• Aecon
• PCL Construction Group
• CH2M HILL Canada
• HOK Canada
• Greater Toronto's Top 75 Employers
• Canada's Best Diversity Employers
• Canada's Greenest Employers
• Intrawest ULC at Whistler Blackcomb

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Beyond Green

• Real estate industrys performance on
• Becoming an employer of choice
• Diversity
• Architecture, aesthetics and being a responsible
  community member

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Corporate Sustainability Responsibility
(CSR)at MorguardDerek Billsmandbillsman_at_morgua
rd.com905-281-4774