Environmental

Through data collection and strategical capital planning, we drive improved portfolio performance. Reducing utility costs – one of our largest operating expenses – has a significant impact on our sustainability practices. In turn, our tenants, health system partners and shareholders benefit from cost savings and improved portfolio performance.

Environmental Performance Highlights

We have set long-term goals to reduce our energy usage and greenhouse gas (GHG) emissions by 10% and water consumption by 20% by 2026 over a 2016 baseline. In 2021, we surpassed our GHG reduction goal and are on track to achieve our energy and water goals.
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(1) Energy and GHG baseline includes 109 properties totaling 8.9M SF owned since January 2016 where we have operational control and whole-building energy data available, representing approximately 50% of total portfolio square footage as of 12/31/21. It excludes redevelopment projects, assets held for sale, and dispositions.

(2) Historical GHG emissions were impacted by a change in Measurabl’s GHG calculation methodology, where annual emission factors were updated to account for changes to the eGRID and fuel carbon intensity that affect the carbon emissions generated by energy use. Measurabl uses the year provided by the industry source to assign each set of factors to specific calendar years, going back to 2011. This change increased our 2016 baseline GHG emissions versus the data reported in our 2021 Corporate Responsibility Report and reflects a greater reduction in GHG emissions.

(3) Scope 1 emissions include direct emissions from building fuel use. Scope 2 emissions include indirect emissions from purchased electricity, steam, heating, and cooling.

(4) Water baseline includes 111 properties totaling 9.0M SF owned since January 2016 where we have operational control and whole-building water data available, representing approximately 51% of total portfolio square footage as of 12/31/21. It excludes redevelopment projects, assets held for sale, and dispositions.

(5) Year-over-year energy and GHG performance data includes 160 properties totaling 12.4M SF and water data includes 164 properties totaling 12.7M SF. It includes properties owned since January 2020 where we have operational control and whole-building energy and/or water data available, representing approximately 70% of total portfolio square footage as of 12/31/21. It excludes redevelopment projects, assets held for sale, and dispositions.

LOOKING AHEAD

We have begun gathering operating data from the legacy HTA portfolio and will establish new baselines and goals for the combined company. Our merger with HTA provides a meaningful opportunity to drive improved performance across a broader portfolio.

Sustainable Capital Investments

In 2021, Healthcare Realty invested $10 million on nearly 200 efficiency projects throughout its portfolio including HVAC updates and replacements, reflective roofing, real-time metering, LED lighting, energy management systems, drip irrigation, and drought-resistant landscaping.
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Green Building Certifications

Healthcare Realty believes green building certifications incorporate best sustainability practices at our properties and provide third-party validation for our ESG performance.

We have set a goal to increase green building certifications to 45 buildings by 2025.

The Company began pursuing IREM® Certified Sustainable Property (CSP) ® and ENERGY STAR® Certifications in 2021, successfully achieving five new IREM® CSP designations and nine ENERGY STAR® Certifications, more than doubling the percentage of green building certification portfolio coverage.

Overlake Medical Pavilion

LEED Silver
Seattle, Washington
191,000 SF
2011 Development

Valley Medical Pavilion

LEED Certified
Seattle, Washington
151,000 SF
2020 Development

Medical Arts III

LEED Certified
Houston, Texas
97,000 SF
2012 Development

St. Joseph Regional Medical

LEED Gold
South Bend, Indiana
206,000 SF
2013 Acquisition

Penrose Pavilion

LEED Certified
Colorado Springs, Colorado
70,000 SF
2012 Acquisition

Highmark Medical Center

LEED Gold
Seattle, Washington
44,000 SF
2019 Acquisition

St. Thomas Midtown Mid-State

LEED Development Project
Nashville, Tennessee
106,000 SF
Development project started in 2021

Jefferson MOB

Austin, Texas
98,000 SF
Certified 2021

West Hills Medical Center

Los Angeles, California
63,000 SF
Certified 2021

Macomb POB

Detroit, Michigan
57,000 SF
Certified 2021

Fountain Valley II

Los Angeles, California
43,000 SF
Certified 2021

Park Hill Medical Plaza

Los Angeles, California
43,000 SF
Certified 2021