Responsible
Investments

Goals

Responsible Investments	Target Year	Target Objective
Maintain GRESB 5 Stars	Annually	Y/N
Submit first report to the Principles of Responsible Investment	2023	Y/N
Publish a Responsible Investing Policy	2023	Y/N
Conduct climate risk assessments in CREIF	2023	Y/N
Conduct corporate-wide governance review	2023	Y/N

Next Steps

Improve ranking in PRI Fixed Income module
Incorporate findings from third-party governance review

Governance

KingSett’s Board of Directors, Management Committee and Sustainability Committee are dedicated to strong governance practices that prioritize transparency and accountability and promote integrity and ethics while delivering sustainable premium risk weighted returns. These are key tenants of our core values and essential elements of our overall approach to governance.

Oversight and accountability of sustainability risks and opportunities associated with the ownership, development and management of real estate across an asset’s lifecycle is a top priority. KingSett’s governance framework ensures representation from all relevant business functions.

We operate as a values-based organization, embedding strong governance practices across the company

Our approach to governance is composed of:

Oversight of strategy and all conflicts by a number of independent Advisory Boards
Engagement of professional firms to provide insight and advice across the business
Engagement of property management firms and joint venture or third-party partners to operate our properties and execute the strategy
Independent audits of the financial statements and sustainability metrics
Strong alignment with KingSett principals and employees
Incorporating third-party standards such as GRESB, GRI and PRI
Robust internal governance policies and corporate controls
Regular and transparent investor reporting, including sustainability performance
Active risk and asset management

Governance of Climate-related Risks and Opportunities

Board of Directors

KingSett’s Board of Directors is responsible for the oversight of KingSett’s strategic plans and priorities. This includes information pertaining to climate-related risks and opportunities, including CREIF’s decarbonization strategy and financing activities. The Board receives quarterly updates from Management on climate-related risks and opportunities and provides final approval for significant strategic decisions, such as capital allocations for decarbonization expenditures. The Board of Directors delegates day-to-day responsibility for all elements of company strategy and operations, including climate-related risks and opportunities, to the Management Committee.

Management Committee

The Management Committee is responsible for and has oversight over all day-to-day operational matters relating to KingSett, including KingSett’s Sustainability program. The Committee is comprised of senior executives, including;

The oversight of sustainability and social impact of this committee is facilitated through the Sustainability Committee which is made up of senior members from the Asset Management, Strategic Capital, Mortgages and Finance teams.

Sustainability Committee

KingSett’s Sustainability Committee is responsible for championing and executing KingSett’s Sustainability Strategy. The Sustainability Committee is comprised of representatives from across our core business, with the main objective of ensuring sustainability is embedded into all business functions; making it relevant, compelling and inspiring to internal and external stakeholders. In addition, the Sustainability Committee:

Ensures the Strategy aligns with KingSett’s governance standards as outlined in its Governance Framework document
Ensures that sustainability KPIs, targets and action plans align with and support achievement of KingSett’s Strategy
Monitors markets, clients, competitors and regulations
Identifies and sharing best practices and business opportunities

Stakeholder Engagement

We aim to build relationships with all our stakeholders. Doing so ensures we fulfill our commitments and create shared value through our business activities.

KingSett’s stakeholder engagement activities ensure relationships are built and upheld with respect, integrity, transparency and honesty. Ongoing communication and working collaboratively towards mutually beneficial outcomes are key components in achieving this.

Our engagement programs, at the corporate and property level, are used to generate ideas, solicit feedback, identify best practices and determine the impact of our efforts. Receiving feedback in different forms and from our various stakeholder groups helps ensure our programs are designed to meet the needs of our communities and enhance the performance of our assets.

Our stakeholders include:

Employees
Tenants
Property Managers
Partners and Investors
Communities
Industry Associations
Customers

KingSett Engages Stakeholders in a Variety of Ways:

Dashboards

Property and asset managers review asset-specific sustainability dashboards prior to and during budget planning

Social Media

Social media posts highlight key corporate and asset achievements across all portfolios

Reporting

Our annual Sustainability Report and website provide an in-depth review on sustainability throughout the organization and holds us accountable for the commitments we make

Regular Updates

Our Management Committee and CREIF Advisory Board receive quarterly sustainability updates that include Portfolio case studies, progress and highlights on sustainability issues and trends

Surveys

We survey our tenants and employees to help guide our efforts to increase satisfaction, communication and well-being

Thought Leadership

We continuously engage within our government and industry, sharing best practices, new ideas and thought leadership

Industry Participation

We participate in a number of industry and community associations as members and board of directors to share best practices, ideas and guidance

Employee Development

Our talent managers and social committee members initiate a variety of new and ongoing social and employee development programs throughout the year

Targets

CREIF Investors and other stakeholders receive regular updates on progress towards achieving our targets

Engagement

Our property teams engage with asset managers, tenants and communities in their day-to-day functions and hold tenant and community events throughout the year

Risk Management

We take an active role in identifying and mitigating risks associated with owning, developing and managing real estate in Canada.

Our process for identifying and assessing risks and opportunities, including sustainability and climate-related risks, is embedded into our day-to-day business operations. We take action to mitigate and monitor risks, particularly those that could significantly affect KingSett’s reputation, financial performance or business operations.

Sustainability risks, in particular climate risks, continue to be a growing concern for investors and stakeholders. We proactively take steps to improve the climate resilience and energy efficiency of our assets and manage the physical and transition risks of climate change.

This includes:

Collaboration with our stakeholders to ensure alignment and support on priorities
Participation in industry associations and committees to ensure we are identifying and mitigating risks before they materialize
Remediation of high-to-extreme risks in capital planning when major systems are due for renewal
Capitalizing on opportunities within the properties when major work or capital is occurring to address as many risk mitigating opportunities as possible
Development of asset and fund strategic plans that unlock the most value for our stakeholders while ensuring they will meet long-term resilience needs
Significant ESG risks are escalated to the Management Committee and evaluated to determine capital allocation to address these risks

Our approach to managing risk at the property-level follows the basic principles of ISO 14001.

Plan

We establish policies and measure and analyze performance data through management systems, assessments, real-time monitoring, surveys and target setting

We develop and execute these plans, including conservation measures, replacing existing systems and installing products with environmentally friendly alternatives

Check

We monitor the impacts of projects and actions through energy audits, commissioning, follow-up assessments and real-time monitoring

Act

The results of these steps inform our strategies on the effectiveness of our actions, influences our policies and helps us achieve our targets

UN Principles for Responsible Investment

The Principles for Responsible Investment (PRI) is the most widely adopted sustainability integration standard that enables asset owners and managers to publicly demonstrate a commitment to responsible investment and contribute towards building a more sustainable financial system.

In 2023, we completed our first formal submission to the PRI. KingSett scored above the median PRI ranking in both the Policy, Governance and Strategy, and Direct – Real Estate modules, indicating that KingSett has strong policy, governance, and strategy processes, especially in our real estate business. Post-submission, we identified opportunities to improve, specifically within our mortgage operations. In 2023, we implemented new processes and practices to continue to integrate ESG considerations into our business including increased coverage of the tracking and documentation of sustainability factors across our mortgages operations. We anticipate improvements to our score as we look forward to our submission in 2024.

GRESB

KingSett Capital is a proud participant in GRESB and has responded to the Assessment since 2015. In 2023, KingSett ranked first globally in our peer group for the Developments Benchmark and second in our peer group for standing investments.

"We use third-party standards such as GRESB to demonstrate our ability to turn sustainability policies and goals into verifiable results and ensure we are focused on the material aspects of real estate that will drive value.”

— Kit Milnes, Vice President, Sustainability and Resilience

Climate Disclosures

KingSett is committed to being transparent about our climate change risks and environmental performance and progress. To do so, we align our disclosures with the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations. The table below outlines where you can find our climate disclosures.

	Recommendation	Location
TCFD Goverance A	Describe the board’s oversight of climate-related risks and opportunities	Governance
TCFD Governance B	Describe management’s role in assessing and managing climate-related risks and opportunities	Governance
TCFD Strategy A	Describe the climate-related risks and opportunities the organization has identified over the short, medium and long-term	Climate Risk and Resilience
TCFD Strategy B	Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning	Climate Risk and Resilience
TCFD Strategy C	Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario	Climate Risk and Resilience
TCFD Risk Management A	Describe the organization's processes for identifying and assessing climate-related risks	Climate Risk and Resilience
TCFD Risk Management B	Describe the organization's processes for managing climate-related risk	Climate Risk and Resilience
TCFD Risk Management C	Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management	Risk Management
TCFD Metrics and Targets A	Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process	Climate Risk and Resilience
TCFD Metrics and Targets B	Disclose scope 1, 2 and if appropriate, 3 GHG emissions and related risk	GRI Index
TCFD Metrics and Targets C	Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets	Decarbonization

Responsible Investments