GRI Index

2023 Global Reporting Initiative (GRI) Content Index

Statement of use: KingSett Capital has reported the information cited in this GRI content index for the period January 1 – December 31, 2023 with reference to the GRI Standards.

GRI 1 used: GRI 1: Foundation 2021

Disclosure Title Location

GRI 2: General Disclosures 2021

The organization and its reporting practices

2-1

Organizational details

About KingSett

2-2

Entities included in the organization’s sustainability reporting

About this Report

As KingSett is a private company, our financial statements are not public.

2-3

Reporting period, frequency and contact point

Reporting Strategy

Our 2023 reporting covering January 1, 2023 – December 31, 2023 is comprised of our Sustainability & Impact Report, published on May 8, 2024 and our website which includes additional information on our ESG approach and supplementary performance data.

KingSett publishes an annual Sustainability and Impact Report for the calendar period (January 1 – December 31)

Kit Milnes Vice President, Sustainability & Resilience 416.687.6746

2-4

Restatements of information

No restatements in 2023.

2-5

External assurance

This Report and the information contained within is unaudited. PricewaterhouseCoopers LLP (PwC) has performed a limited assurance engagement over select performance metrics for KingSett Canadian Real Estate Income Fund LP. Other than those select performance metrics (as identified in the opinion), the remainder of the information contained within the GRI Content Index was not subject to the limited assurance engagement. The scope of PwC’s work, including the select performance metrics and data in scope of the assurance is available here.

Activities and workers

2-6

Activities, value chain and other business relationships

About KingSett

Investments

Asset Management

Development

Mortgage Lending

KingSett does not have a central supply chain management process or policy. Rather, individual project teams strategically select supply chain partners who are committed to workplace safety and are aligned on environmental objectives. For asset management, KingSett partners with third-party property managers that have responsible contracting policies and programs. KingSett also uses its Sustainable Procurement Policy at the building level which covers various consumable and durable goods purchases such as lamps, batteries, paper, toner cartridges, office equipment, appliances, audio-visual equipment and other electronic powered equipment. KingSett encourages each of its properties to apply best practices taken from LEED O+M regarding the purchase and disposal of material. For development, KingSett partners with PCL, who integrates sustainability into its business including procurement and supply chain. KingSett also promotes environmentally preferable products such as ENERGY STAR labelled equipment, “green” concrete, FSC certified wood or recycled wood, and other initiatives, where feasible, for its new developments.

There were no significant changes in size, structure, ownership or supply chain in 2023.

2-7

Employees

Our People

At the end of the reporting period, there were 150 employees at KingSett Capital, all of whom were permanent full-time employees:

  • 53% Male
  • 33% Female
  • 14% Prefer not to disclose

This data was gathered through a third-party, confidential Equity, Diversity and Inclusion survey that was conducted in 2023. All employees were sent a unique link to complete the survey and anonymized results were presented to KingSett.

There were no significant changes in the number of employees during the reporting period or between reporting periods.

Governance

2-9

Governance structure and composition

Governance

2-17

Collective knowledge of the highest governance body

Governance – Sustainability Committee

The Sustainability Committee is chaired by KingSett’s Chief Legal Officer and ESG Lead and has representatives from a broad cross section of the organization. KingSett’s Sustainability Committee plays a key role across its internal functions to ensure that its employees are kept up-to-date and engaged in ESG matters that impact their business functions and the company. In addition to the functions that support the managed-asset portfolio, the Sustainability Committee is responsible for providing guidance on corporate campaigns and for reviewing and maintaining corporate policies that are relevant to ESG such as the Equity Diversity and Inclusion Policy and Code of Conduct.

Strategy, policies and practices

2-22

Statement on sustainable development strategy

Sustainable Development

KingSett is committed to take reasonable and responsible actions to create healthy, high-performing, low carbon-emitting and accessible buildings in its new development and redevelopment projects. It aims to incorporate best practices, where appropriate, to ensure that its Sustainability Strategy and mission are upheld. KingSett’s specific commitments to its new development and redevelopment projects is governed by its Sustainable Development Guide, Matrix and Policy.

The Building Performance Team is included in new development/redevelopment projects to ensure compliance with the Sustainability Strategy and Sustainable Development Guide, Matrix and Policy and that the project is executed in an environmentally responsible manner. This ensures that the team can evaluate the Project for potential sustainability and environmental hazards, potential stranded-asset technology, future climate risks and community impacts and advise the Development Team. All projects will be completed in compliance with the Sustainable Development Guide, Matrix and Policy, where feasible.

2-23

Policy commitments

Risk Management

Cybersecurity and Data Privacy
We are committed to sound corporate governance principles and practices.
Our cybersecurity and data privacy program is overseen by KingSett’s Technology Steering Committee. This committee is responsible for reviewing the Cybersecurity Protocol and guiding key business decisions related to cybersecurity and data privacy, and implementing new enterprise reporting tools.

Our Cybersecurity Protocol applies several safety measures, including:

  • Robust network security
  • Encrypted critical database information
  • Adoption of market leading cyber risk mitigation applications
  • Periodic penetration testing
  • Email and other phishing tests
  • On-going employee cyber risk training
  • Insurance coverage including incident response

All KingSett employees receive mandatory cyber security training twice a year and are tested on phishing attempts to ensure they can identify and eport malicious content.

2-28

Membership associations

At the corporate level, our employees participate in several industry associations that help create value for properties, communities and the wider real estate sector. KingSett actively participates in the following industry associations:

  • CAGBC (Board of Directors and Chapter Member)
  • CREED (Council member)
  • BOMA Toronto (Board of Directors and Member)
  • BOMA Diversity, Inclusion and Anti-Racism Advisory (Council member)
  • Toronto District 2030 (committee member)
  • Downtown Yonge Business Improvement Area (Board of Directors)
  • REALPAC (Board of Directors and Member)
  • REALPAC ESG Committee (Member)
  • REALPAC Innovation Committee (Member)
  • ICSC (Member)
  • Urban Land Institute (Member)
  • Sustainable Investment Committee (Participant)
  • GRESB Real Estate (Participant)
  • NAIOP (Member)
  • Toronto CREW (Board of Directors and Member)
  • BILD GTA (Member)
  • Bloor Yonge Business Improvement Area (Board of Directors)
  • Bloor Yorkville (Planning and Urban Development Committee Member)
  • Toronto District 2030 (Member)
  • Toronto Green Will Initiative (Member)
  • Junior Achievers Committee (Member)

2-29

Approach to stakeholder engagement

Materiality Assessment
Stakeholder Engagement

Our stakeholders:

  • Partners: these are institutional investment groups, ultra-high net worth individuals, joint-venture partners, third-party property management companies and employees (who also co-invest in KingSett’s funds).
  • Employees: our employees refer to those under direct employment with KingSett, whose salary and benefits are covered by KingSett.
  • Customers: these are visitors to our properties and spaces who might not lease space in our buildings, but visit to shop, eat, rest and work.
  • Industry Associations: refers to government bodies, NGOs, charities, and other groups that help drive some aspect of commercial real estate.
  • Communities: our communities are divided into three groups, the KingSett community (our employees and families), our building communities (the tenants within our assets), and the areas surrounding our buildings.
  • Tenants: our tenants are individuals and companies that lease or otherwise use space within our buildings.
  • Property Managers: our third-party property managers who are responsible for the day-to-day operations of our buildings.

In 2020, KingSett engaged internal and external stakeholders to understand what ESG topics matter most to our stakeholders now and in the future. We surveyed 93 employees and conducted in-depth interviews with 15 internal and external key stakeholders (JV partners, Senior Executives, tenants, vendors, property managers) to rate a list of ESG topics from 1-5 on their importance. This information was used to prioritize topics to inform reporting and future ESG programs.

2-30

Collective bargaining agreements

No KingSett employees were covered by collective bargaining agreements in 2023.

GRI 3: Material Topics 2021

3-1

Process to determine material topics

Materiality Assessment

3-2

List of material topics

Materiality Assessment

Environmental

Energy (GRI 302: Energy 2016)

3-3

Management of material topics

Climate & Environment
Environmental Impact – Energy

302-1

Energy consumption within the organization

Year

Common Elec (kWh)

Natural Gas (ekWh)

Chilled Water (ekWh)

Steam (ekWh)

Total Energy Consumption (ekWh)

2023

          106,737,557 

            98,269,088 

                 126,151 

          12,743,831 

253,731,531

2022

          110,352,128 

         110,279,534 

                 321,282 

          14,572,328 

275,597,551

2021

          131,500,218 

         103,087,399 

                 172,561 

          13,584,162 

262,968,037

2020

          144,021,315 

         110,109,859 

                 160,586 

          10,151,407 

281,648,295

2019

          164,935,491 

         127,915,435 

                            -   

          12,170,275 

322,738,818

2018

          171,787,533 

         123,574,335 

                            -   

          12,616,803 

326,177,781

2017

          175,264,476 

         114,868,117 

                            -   

          11,295,949 

318,769,535

2016

          187,304,226 

         110,796,495 

                            -   

          10,735,985 

324,510,920

Standards, methodologies, assumptions, and/or calculation tools used: All energy consumption calculation methodologies are based on The Greenhouse Gas Protocol - A Corporate Accounting and Reporting Standard.

*Properties no longer under KingSett’s management as of May/2024 have been excluded

302-2

Energy consumption outside of the organization

Year

Tenant Elec (kWh)

2023

         35,854,904 

2022

         40,072,279 

2021

         14,623,697 

2020

         17,205,129 

2019

         17,717,616 

2018

         18,199,109 

2017

         17,340,993 

2016

         15,674,214 

*Properties no longer under KingSett’s management as of May/2024 have been excluded

302-3

Energy intensity

Performance – Energy

302-4

Reduction of energy consumption

Performance

Water (GRI 303: Water and Effluents 2018)

3-3

Management of material topics

Climate & Environment
Performance

303-5

Water consumption

Year

Absolute (m3)

Performance Normalized Intensity (L/ft2)

2023

1,010,612

76

2022

1,006,008

75

2021

962,138

72

2020

1,017,692

76

2019

1,260,564

95

2018

1,314,113

100

2017

1,342,519

103

2016

1,433,912

110

Standards, methodologies, assumptions, and/or calculation tools used: All energy consumption calculation methodologies are based on The Greenhouse Gas Protocol - A Corporate Accounting and Reporting Standard.

*Properties no longer under KingSett’s management as of May/2024 have been excluded

Emissions (GRI 305: Emissions 2016)

3-3

Management of material topics

Climate & Environment
Performance
Decarbonization

305-1

Direct (Scope 1) GHG emissions

Market-based emissions

 

2016

2017

2018

2019

2020

2021

2022

2023

Scope 1 (tCO2e)

20,676

21,454

23,158

23,973

20,630

19,314

20,658

18,406

Scope 2 (tCO2e)

21,895

16,251

15,447

14,380

10,157

9,804

10,537

10,102

Scope 3 (tCO2e)

12,29

13,261

13,701

13,795

9,966

9,645

11,235

11,558

Carbon offsets

0

0

0

-2,651

-1,692

-1,629

-2,155

-2,654

Net Emissions (market-based)

54,864

50,966

52,305

49,497

39,601

37,133

40,275

37,512

Location-based emissions

Scope 1 (tCO2e)

20,676

21,454

23,158

23,973

20,630

19,314

20,658

18,406

Scope 2 (tCO2e)

23,539

17,828

18,406

17,125

13,565

14,518

14,484

14,015

Scope 3 (tCO2e)

12,293

13,261

13,701

13,795

9,966

9,645

11,234

11,558

Gross emissions (location-based)

56,508

52,543

55,265

54,893

44,160

43,477

46,377

44,082

Scope 3 (tCO2e)

 

2016

2017

2018

2019

2020

2021

2022

2023

2023 Data Coverage (%)

Water

171

121

125

107

65

73

81

89

97%

Waste

11,541

11,493

12,094

12,311

8,878

8,699

9,503

9,998

87%

Tenant Elec

580

1,648

1,482

1,377

1,023

872

1,651

1,571

36%

Total Scope 3 Emissions

12,293

13,261

13,701

13,792

9,966

9,645

12,234

11,658

 

Standards, methodologies, assumptions, and/or calculation tools used: All energy consumption calculation methodologies are based on The Greenhouse Gas Protocol - A Corporate Accounting and Reporting Standard.

*Properties no longer under KingSett’s management as of May/2024 have been excluded.

*Greenhouse gas included in the calculation of the location and market-based emissions include CO2, CH4, and N2O.

*Carbon emissions factors and underlying global warming potentials are taken from Environment Canada’s 2023 National Inventory Report, as well as Enwave’s 2023 Study Report (specifically for steam and chilled water).

305-2

Energy indirect (Scope 2) GHG emissions

305-3

Other indirect (Scope 3) GHG emissions

305-4

GHG emissions intensity

Climate & Environment – Performance

305-5

Reduction of GHG emissions

Climate & Environment – Performance

Waste (GRI 306: Waste 2020)

3-3

Management of material topics

Performance – Waste

306-3

Waste generated

 

Trash to Landfill

Compost

Recycling

Total Waste (kg)

Waste Intensity (kg/sf)

Data Coverage (sf)

Diversion

Date data coverage from (sf) to (%)

2016

      5,646,240

  375,228

  2,024,875

    8,046,343

0.73

  11,298,537

30%

87%

2017

      5,622,695

  538,809

  2,062,221

    8,223,725

0.74

  11,298,537

32%

87%

2018

      5,914,818

  860,492

  3,462,634

  10,237,944

0.93

  11,298,537

42%

86%

2019

      6,028,232

  846,533

  3,621,888

  10,496,653

0.95

  11,298,537

43%

85%

2020

      4,347,154

  558,867

  2,099,900

    7,005,921

0.63

  11,505,229

38%

86%

2021

      4,261,692

  348,901

  2,053,050

    6,663,642

0.60

  11,505,229

36%

86%

2022

      4,652,046

  547,393

  2,325,074

    7,524,512

0.68

  11,505,229

38%

86%

2023

      4,835,736

  720,191

  2,414,270

    7,970,197

0.72

  11,509,735

39%

86%

KingSett uses operational control approach to collect waste data. Waste data is collected directly from waste hauler reports and estimated where data is not available.

*Properties no longer under KingSett’s management as of May/2024 have been excluded

Climate change and resilience

3-3

Management of material topics

Climate Risks and Resilience

Each KingSett asset, and any redevelopment projects, must have a Climate Resilience Policy which addresses the major perils of the physical and transition risks associated with climate change, where feasible. Where necessary, a climate risk assessment will be conducted to measure the severity of the physical and transition risk exposure and actions to reduce those exposures.

KingSett monitors its portfolio and property-level climate risk using the Representative Concentration Pathways (RCPs). RCPs are scenarios that describe alternative trajectories for carbon emissions and the resulting atmospheric concentration from 2000 to 2100. The RCPs describe 4 different scenarios based on different assumptions about population, economic growth, energy consumption and sources and land use over this century and translates them into global temperature warming potentials of 2.6, 4.5, 6.0 and 8.5 degrees. This analysis is conducted to help ensure that KingSett’s actions and investments in its properties see to avoid long-term global warming potential of RCP8.5 and RCP6.0 and keep its actions and impact to within the RCP2.6 and RCP4.5.

KingSett is committed to improving the resilience of its assets to shocks and stressors brought on by the transition and physical climate-related risks. By understanding these risks, property teams can implement risk mitigation measures and business continuity plans to ensure they resume normal operations swiftly after an event.

  • Integrate best-practice risk and vulnerability onsiderations into the pre-acquisition process
  • Conduct assessment of risk vulnerability: Each property will undergo a resilience assessment both for a natural event or from an insurance standpoint.
  • Planning and response to an identified risk: Where risk or vulnerability has been identified, a resilience action plan will be put into place at the property level to mitigate immediate risk or to repare for any possible risk.

Each property is required to understand, and take preventative or corrective, action to mitigation the negative affects that climate change may pose to the property. The following must be completed as part of the Policy requirements. Property managers are expected to carry out the following functions, at a minimum, for each of their properties:

  • Understand the potential environmental, social and operational shocks and stressors that could occur to their property and surrounding infrastructure.
  • Identify the key stakeholders that could be impacted by such shocks and stressors.
  • Conduct an annual review of their Climate Resilience Policy to update identified shocks and stressors to ensure that changing conditions are included.

Non-GRI

Percentage of properties that have flood resilience plans

Responsible Investments – Risk Management

KingSett’s assets and redevelopment projects are expected to follow best practices related to flooding, where applicable. The property manager must understand the risks faced at their properties and take reasonable precautions that attempt to minimize overall impact from flooding. Property managers shall assess risks and develop response plans which consider, but are not limited to, the following:

  • Areas of the building prone to different types of flooding such as overland, riverine, sanitary sewer backup, and storm ewer backup
  • Critical equipment and its location within a building
  • Emergency generator or backup power capacity
  • Emergency preparedness

The plans and procedures (Flood Procedures) will be reviewed by KingSett and the property management company to ensure that measures are up-to-date and applicable. The Flood Procedures may form part of a Business Continuity Plan but must include est practices related to ensuring business returns to usual in a timely manner.
Each property must have a Flood Emergency Response Plan (“FERP“) which is a site-specific documented plan of actions to be taken before, during and after a flood emergency to mitigate damage, downtime and disruption, where feasible. The FERP must take into account the site flood hazard and risk, and the resources available and needed to implement its actions (manpower and materials). The FERP should be kept current through an annual review and should also be reviewed after each flood event and revised to incorporate any “lessons learned” in order to improve its future effectiveness.

In 2023, 81% of the CREIF portfolio conducted flood risk assessments and have flood management plans.

In 2023, 100% of the CREIF portfolio have been surveyed to determine if flash flooding is a risk.

Sustainable development

3-3

Management of material topics

Sustainable Development

KingSett is committed to take reasonable and responsible actions to create healthy, high-performing, low GHG-emitting and accessible buildings in its new development and redevelopment projects. It aims to incorporate best practices, where appropriate, to ensure that its ESG strategy and mission are upheld. KingSett’s specific commitments to its new development and redevelopment projects is governed by its Sustainable Development Guide, Matrix and Policy.

The Building Performance Team is included in new development/redevelopment projects to ensure compliance with the ESG Strategy and Sustainable Development Guide, Matrix and Policy and that the Project is executed in an environmentally responsible manner. This ensures that the team can evaluate the Project for any potential sustainability and environmental hazards, potential stranded-asset technology, future climate risks and community impacts and advise the Development Team. All projects will be completed in compliance with the Sustainable Development Guide, Matrix and Policy, where feasible.

Non-GRI

Percentage of new developments targeting zero carbon

KingSett is currently targeting a net-zero carbon balance for 100% of its new developments in the CREIF Portfolio. There are currently no active developments in the CREIF Portfolio at this time.

Building certifications

3-3

Management of material topics

Climate &Environment – Building Certifications

Building certifications such as BOMA BEST and LEED provide a credible means to benchmark and ecognize high performance buildings. KingSett aims to demonstrate its industry leadership in ESG through the pursuit of relevant building certifications and awards, and tracks and reports on these through Stream. As part of KingSett’s pursuit of building certifications, a commitment to chieve LEED Gold in 80% of its CREIF office portfolio has been set.

As KingSett’s Building Certification Policy continues to evolve, additional standards for health and well-being such as the WELL Building Standard and Fitwel, pandemic response standards such as WELL Health & Safety and Fitwel Viral Response, technology and connectivity standards such as WiredScore and SmartScore, and accessibility standards such as Rick Hansen Foundation Accessibility Certification (RHAC), are evaluated for their applicability at each asset.
For new acquisitions and specialty asset types, KingSett conducts a green building certification nalysis to determine the most appropriate certification standard to pursue, where necessary.

The Zero Carbon Building Certification is the final step in a property’s decarbonization strategy and requires annual recertification and purchase of carbon offsets and/or Renewable Energy Credits (RECs) to be maintained, where applicable. This certification provides the market with third-party validation of the decarbonization efforts taken at the property.

Non-GRI

Percentage by gross asset value certified to a third-party building standard

Climate &  Environment – Building Certifications

Renewable energy

3-3

Management of material topics

Climate & Environment
Carbon Emission Reductions
Sustainable Development

KingSett believes in investing in clean energy and purchases carbon offsets and Renewable Energy Credits (RECs) to help reduce the overall carbon emission footprint of its assets (including its corporate headquarters in Toronto) while it decarbonizes its assets to support the renewable energy sector. RECs are non-tangible energy commodities that represent proof that 1 megawatt-hour MWh) of electricity was generated from an eligible renewable energy source and was fed into the shared system of power lines which transport energy to the electricity grid.

KingSett is committed to purchasing RECs for the CREIF portfolio, specifically for assets whose electricity grids do not enable them to create and execute a decarbonization strategy. These purchases will vary in size from year-to-year as a percentage of each building’s overall electricity use. The choice to purchase certified anadian RECs is done to ensure that the carbon reduction impact benefits the Canadian grid system. This decision is a non-recoverable expense which KingSett bears and is not billed back to properties within the CREIF portfolio.

The Zero Carbon uilding Certification is the final step in a property’s decarbonization strategy and requires annual recertification and purchase of carbon offsets and/or RECs to be maintained, where applicable. This certification provides the market with third-party validation of the decarbonization efforts taken at the property.

Non-GRI

Percentage of electricity consumption for the Portfolio offset with Renewable Energy Certificates (RECs) and Carbon Offsets

Market-based emissions

 

2016

2017

2018

2019

2020

2021

2022

2023

Scope 1 (tCO2e)

20,676

21,454

23,158

23,973

20,630

19,314

20,658

18,406

Scope 2 (tCO2e)

21,895

16,251

15,447

14,380

10,157

9,804

10,537

10,102

Scope 3 (tCO2e)

12,293

13,261

13,701

13,795

9,966

9,645

11,235

11,658

Carbon offsets

0

0

0

-2,651

-1,692

-1,629

-2,155

-2,654

Net Emissions (market-based)

54,864

50,966

52,305

49,497

39,601

37,133

40,275

37,512

 

 

2016

2017

2018

2019

2020

2021

2022

2023

RECs (kWh)

11,403,207

11,403,140

24,094,201

23,269,560

28,198,705

8,256,344

7,909,599

6,699,992

Electricity (kWh)

202,978,440

192,605,469

189,986,642

182,653,107

161,226,444

146,123,915

150,424,407

142,592,461

% of Total Electricity

6%

6%

13%

13%

17%

6%

5%

5%

Technology and innovation

3-3

Management of material topics

Through our Smart Building Technology Strategy, we maximize efficiencies, reduce our environmental footprint, achieve dramatic cost savings and provide unique tenant offerings.

Technology Vision Statement - To enhance our strong entrepreneurial, innovative and value-based ulture through measurable and sustainable investments in smart building technology, people and processes that drive sustainable premium risk weighted returns.

Our Five Strategic Goals:

  • Strengthen KingSett’s technology position to deliver sustainable premium risk weighted returns
  • Create spaces where technology enhances our customers’ and communities’ experiences to work, live and play
  • Leverage our agility and passion to embrace new technology services and empower our people
  • Leverage technology to enhance innovation, sustainable operations and efficiencies
  • Maintain clarity and ongoing engagement with all stakeholders

Non-GRI

Percentage of properties that are certified to WiredScore

57% of properties (by GAV) were certified to WiredScore in 2023.

3-3

Management of material topics

Employee Engagement and Well-being

Non-GRI

Employee satisfaction survey (score and response rate)

Employee Engagement and Well-being

2023 Employee Engagement Survey response rate: 96%

3-3

Management of material topics

Equity, Diversity & Inclusion

405-1

Diversity of governance bodies and employees

Equity, Diversity & Inclusion

3-3

Management of material topics

Community Engagement

KingSett’s third-party property management teams are responsible for developing and executing community engagement policies, programs and events. Each property tailors its engagement efforts to fit the unique make-up of the building’s tenants. At a high level, all properties participate in Earth Day, Earth Week and Waste Reduction Week. Customized programs have also included hosting blood drives, flu vaccine clinics, events around Black History month, International Women’s Day, and more.

Where appropriate, a community assessment or a social impact assessment may be undertaken. This assessment aims to identify key stakeholders, record and track community mpressions of the project, provide information sessions and conduct ongoing monitoring of project impact on the community. Analysis of the community may include:

  • The community’s current and future economic conditions (increase in employment opportunities, increased tax revenue)
  • Land-use changes
  • Tourism impacts
  • A review of the demographic trends and political landscape

As part of KingSett’s ongoing development of its community engagement and health and wellness programs, additional consideration should be given to any budget items that might contribute to such programs. Third-party building certification to help promote health and well-being such as Fitwel, WELL and RHFAC, should also be pursued where applicable. These standards ensure that market leading best practices are being adopted for the tenants and local communities. Some potential items and projects that would likely be considered an additional amenity in our properties include, but are not limited to:

  • Active stairwell designs to encourage stair use
  • Water refill stations
  • Outdoor pace improvements (benches/seating areas, gardens/green space/food forests, playgrounds/fitness equipment
  • Bike sharing/bike storage lockers/tuning stations
  • Farmers markets
  • Organics ollection programs
  • Lactation rooms
  • Prayer/meditation rooms

413-1

Operations with local community engagement, impact assessments, and development programs

Community Engagement

88% (by sf) of properties had a community engagement program in place in 2023.

3-3

Management of material topics

Tenant Engagement and Well-being

Non-GRI

Percentage of properties that have tenant engagement programs

89% (by sf) of properties had a tenant engagement program in place in 2023.

Property managers are responsible for the promotion and education of any sustainability programs within the properties. The property managers will be required to report on their tenant engagement programs to KingSett as requested. Properties should maintain their own tenant communication strategies to ensure they are providing their tenants with a high level of information around ESG initiatives and provide easy opportunities for feedback. Each property should have in place a Tenant Engagement Policy outlining the existing communication strategies, activities, implementation timeline and responsible parties.

Tenant communication will be promoted through several means, where appropriate, including tenant information boards, tenant engagement events, elevator screens, lobby directory screens, property-specific websites, emails, and property green team meetings. Whenever a new building certification has been issued, such as LEED, BOMA BEST, Zero Carbon, Fitwel or WiredScore, information about the certification will be distributed to the tenants.

Non-GRI

Percentage of properties that have tenant health & well-being program

82% (by sf) of properties had a health and well-being program in place in 2023.

KingSett’s third-party property management teams are responsible for developing and executing community engagement policies, programs and events. Each property tailors its engagement efforts to fit the unique make-up of the building’s tenants. At a high level, all properties participate in Earth Day, Earth Week and Waste Reduction Week. Customized programs have also included hosting blood drives, flu vaccine clinics, events around Black History month, Women’s Day, and more.

Non-GRI

Percentage of properties that have completed IAQ assessments

72% (by sf) of properties had an IAQ assessment completed in the last three years

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Management of material topics

At KingSett, our employees are our most valuable asset, and our values are the foundation of the business which drive relationship focused client services, leadership, teamwork and investment expertise.

KingSett’s innovative and entrepreneurial spirit enables us to think outside of the box, create value for our stakeholders and stay ahead of our competitors. The right “challenge” from our executives, combined with the right people, means we are able to play a role in shaping the future of real estate. Our actions lead to strong stakeholder support, industry recognition and a proven model that is being used to set a high standard for others in the market.

Innovation is embedded in all business functions at KingSett. Our departments are constantly looking for innovative solutions. These solutions vary from project to project and across each function, but all have the same underlying drive of being Canada’s most respected real estate investor.

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Programs for upgrading employee skills and transition assistance programs

KingSett strives to ensure all employees continue to feel engaged in their roles and see the company as a great place to work. Engaged employees are more productive, more committed and more dedicated to their role and the company; helping us deliver on our core values. KingSett focuses on creating a workplace that is rich with culture, compassionate to people’s needs and provides the necessary support for individuals to live a productive, happy and healthy life; both in and out of the office.

KingSett’s Employee Professional Development Program ensures all individuals reach their full potential. This program includes:

  • A fully tailored Emerging Leadership Development Program (for Managers and below), utilizing a detailed psychology assessment to determine individualized strengths and potential for development
  • A multi-day Advanced Leadership Development Program for senior leaders (Director level and above)
  • A one-week top tier business school course (of their choosing) for up to four executives per year
  • A variety of workshops and team development programs
  • Coaching hours to be used by employees as needed
  • Funding for professional designations
  • A tuition reimbursement program for the successful completion of continuing education courses
  • A summer internship program to help develop the skills of young and emerging professionals
  • Financial modelling training for employees across the business to refresh their core technical skills
  • Lunch & Learn speaker series covering a variety of topics to support employees personally and professionally

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Percentage of employees receiving regular performance and career development reviews

Employee Engagement and Well-Being

All employees go through KingSett’s Leadership training within the first year of being hired. This training includes a personalized assessment of skills and attributes and 5 two-hour long workshops spread out over 6-8 weeks. Materials covered include living the KingSett Core Values, being a better speaker, identifying strengths and weaknesses in ourselves, teamwork and more.

At the beginning of each year, all KingSett employees are required to complete their Employee Business Plan. These business plans establish the responsibilities, by individual employee, and timeline for how the overall company will execute its Strategic Plan corporately and for each of its Funds.

The goals of the Employee Business Plans are multi-fold:

  1. Clearly define each employees’ major tasks and milestones for the given and align them with the strategic goals of the funds and company
  2. Set commitments for how each employee will demonstrate the KingSett Values
  3. Set goals for personal professional growth and development of team talent
  4. Set goals for achieving the company’s environmental, social and governance targets
  5. Provide senior management with the ability to assess each employee’s performance against their goals for the purpose of employee renumeration

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Management of material topics

Home – Our Funds - Affordable Housing

Governance

Employee engagement and well-being (GRI 401: Employment 2016)

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Management of material topics

KingSett is committed to operating at the highest standards for ethical business practices. To ensure we conduct our business ethically and with integrity, all employees must annually sign KingSett’s Code of Conduct Policy. This Policy establishes the ethical business practices by which KingSett’s employees must conduct themselves – these include conflict of interest, workplace behavior, social media activity, harassment, receiving gifts and entertainment and more.

KingSett takes an active role in identifying, managing and mitigating risks associated with owning, developing and managing real estate in Canada. Actively managing risk is a core responsibility and KingSett’s partners expect it to be conducted thoroughly. This is why it is clearly reflected in KingSett’s mission, providing sustainable premium risk weighted returns to its partners.

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

ESG risks, in particular climate change risks, continue to be a focus and concern for investors and our stakeholders. KingSett is proactively taking steps to improve the resilience and energy efficiency of the Portfolio and manage the physical and transition risks of climate change.

Our Strategy’s approach to managing the resources our properties and tenants rely on
follows the basic principles of ISO 14001.

  • 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
  • We monitor the impacts of projects and actions through energy audits, commissioning, follow-up assessments and real-time monitoring
  • The results of these steps inform our strategies on the effectiveness of our actions, influences our policies and helps us achieve our targets

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Security personnel trained in human rights policies or procedures

Annually, all employees are required to sign and confirm adherence to KingSett’s Code of Conduct Policy.

Health and safety

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Management of material topics

KingSett employees are required to review and sign KingSett’s Health and Safety Policy annually, ensuring compliance with the Ontario Health and Safety Act and KingSett’s own requirements. At our corporate offices, we have established a Joint Health and Safety Committee to ensure our company offices spaces are safe for our employees and any visitors, conduct workplace inspections and identify health and safety hazards.

We partner with leading property management companies across Canada to actively manage the health and safety of our assets and management teams. Our property management teams report on health and safety occurrences to KingSett asset managers and track incidents and work orders through various programs widely used by the commercial real estate industry. KingSett has no on-site staff at any of our properties. At our development sites, our construction partners actively manage the health and safety of the site, providing their leading expertise to ensure that all visitors vendors and works abide all safety regulations and best practices.

We aspire to provide meaningful data around health and safety at both our corporate offices and properties to track progress on this material topic in future reporting.

Cybersecurity and data confidentiality

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Management of material topics

KingSett is committed to sound corporate governance principles and practices. Our cybersecurity and data privacy program is overseen by KingSett’s Technology Steering Committee. This committee is responsible for reviewing the Cybersecurity Protocol and guiding key business decisions related to cybersecurity and data privacy and implementing new enterprise reporting tools.

Our Cybersecurity Protocol applies several safety measures, including:

  • Robust network security
  • Encrypted critical database information
  • Adoption of market leading cyber risk mitigation applications
  • Periodic penetration testing
  • Email and other phishing tests
  • On-going employee cyber risk training
  • Insurance coverage including incident response
  • All KingSett employees receive mandatory cyber security training twice a year and are tested on phishing attempts to ensure they can identify and report malicious content.

Risk management

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Management of material topics

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

Our Strategy’s approach to managing the resources our properties and tenants rely on follows the basic principles of ISO 14001.

Climate Risk and Resilience

Commercial real estate has one of the highest levels of exposure to climate change risk and has one of the largest opportunities to make significant positive change. At KingSett, we actively manage the risks and opportunities related to climate change across our assets to increase their long-term value and resilience. This is done through extensive stakeholder engagement, adoption of national and international carbon targets and standards and investments to improve transition and physical climate resilience. We are also assessing alternative low-carbon energy sources for our properties in Alberta and Saskatchewan to displace energy taken from the grid.

KingSett is committed to improving the resilience of our assets brought on by transition and physical climate-related risks. We have begun assessing our assets to better understand the level of risk exposure. This enables property teams to implement mitigation measures and business continuity plans to ensure risks are reduced and that normal operations can be resumed swiftly after an event.

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