Link Logistics 2023 Sustainability Report

Link Logistics

2023 Sustainability Report

P.30

Introduction

Overview

Sustainability

Social Impact

Governance

Appendix

Goals and Progress Environmental Data Table

Our Team: Employee Demographic Data TCFD Disclosure Table

GRI Index SASB Index

Building on Momentum: What's Next

TCFD Disclosures Governance Our CEO and Head of Sustainability are

Strategy Our climate strategy centers on a data-centric approach to measure, reduce and offset our environmental impacts, both in our operations and throughout our sector. Since 2020, we have worked to standardize processes to identify and respond to potential and actual climate-related risks and opportunities. In conjunction with our broader carbon strategy to partner with our customers to reduce GHG emissions and benchmark properties in ENERGY STAR® Portfolio Manager®, we have identified properties that present the greatest opportunity for energy efficiency retrofits. Additionally, we have identified potential value-add opportunities through the integration of renewable energy sources in our buildings and worked with partners on decarbonization strategies. Our climate strategy is described in further detail on pages 9-16. Link Logistics continues to evaluate and respond to climate-related risks inherent to our operations and our industry. We believe that our climate-related risks include the following:

Risk Management A key part of Link Logistics’ role in supporting Blackstone Real Estate's acquisition process is an ESG Compliance Request that is required to be completed for properties being acquired by the firm. The compliance request consists of a checklist of 12 to 24 months of utility invoices from the property, confirmation of efficiency upgrades and an assessment of the property’s potential for exposure to climate-related risks. The ESG Compliance Request was implemented in the due diligence process for new properties in 2022. These processes help Link Logistics to better assess, identify and respond to climate-related physical and transitional risks moving forward. In 2023, Link Logistics’ managed portfolio underwent a physical climate risk assessment which analyzed risk and assigned a risk score based on the asset’s location and historic insurance claims. The assessment measured each asset’s resilience across the following climate perils: flood, freeze thaw, wildfire, extreme heat, extreme wind and subsidence. Risk scores and cost to remediate risks are ranked and used to inform capital spending at each asset to manage climate-related risk.

Metrics & Targets Link’s climate-related targets include benchmarking 100% of our managed building portfolio in EPA’s ENERGY STAR Portfolio Manager and achieving carbon-neutral operations by 2025. This annual report serves as our regular update on critical climate-related metrics including energy consumption and greenhouse gas emissions.

associated with emerging regulation, including those associated with renewable energy, energy benchmarking and other climate-related regulations that could pose a risk or opportunity to the firm. Legal Risk We partner with external law firms for energy and ESG counsel. The law firms assist Link Logistics in assessing regulatory, legal and market risk in addition to state laws surrounding submetering and resale of electricity to support our tenants. Through this engagement, we are able to identify and respond to the potential transitional risk of local state regulation. Market Risk Link Logistics participates in several working groups that facilitate peer-to-peer exchange on climate- related market risks and opportunities, including the ENERGY STAR® Warehouse Leadership Working Group, the Urban Land Institute Greenprint North America Performance Committee and the Blackstone Real Estate Community of Practice. Each working group convenes industry leaders to discuss warehouse sector-related topics as well as market insights impacting U.S. commercial real estate broadly. These groups provide insight into how climate change is impacting the real estate industry via regulation and new technology and afford us the opportunity to stay informed of relevant market risk as seen by peers in the industry. Reputational Risk We recognize that reputational risk is increasingly tied to a firm’s response to climate change and climate-related risk. Link Logistics customers request LED upgrades upon lease renewal, highlighting a demonstrated interest from customers and the reputational risk Link Logistics faces if climate- related risks are not sufficiently addressed.

Acute Physical Risks Each property Link Logistics operates has undergone a dedicated, climate-oriented ESG due diligence investigation. As part of this process, each property is assessed for acute physical risks, such as storms and flooding. Evaluating these climate-related risk factors allows Blackstone Real Estate to identify potential acute physical risks prior to acquisition as well as track such risks during our management period. Chronic Physical Risks Climate-related chronic physical risks, such as temperature rise and an increase in frequency of natural disasters, pose a risk to our business operations. For example, temperature rise due to climate change may cause greater cooling costs across the industrial real estate industry. To mitigate and adapt to this type of chronic physical risk, we have invested in retrofitting our managed portfolio with TPO Cool Roofs where applicable, LED upgrades and other measures that reduce the need to cool our spaces and decrease overall energy consumption. Current Regulation A key part of the ESG assessment during the due diligence phase of a Blackstone Real Estate acquisition for Link Logistics' managed portfolio is identifying applicable laws and ordinances that would impact the property, with a strong focus on building energy performance standards where energy benchmarking is mandated. The assessment lists all legal requirements and the status of compliance the property currently possesses, allowing us to actively manage exposure to potential risks from properties that are not up to current regulatory standards. Additionally, Link Logistics reviews all standing assets annually for exposure to regulation. Emerging Regulation With properties across the U.S., it is important that we monitor emerging regulatory matters that could impact business operations, including those related to climate change. We engage policy leaders and nonprofit experts to help guide and keep us abreast of emerging regulation at the local, state and federal level. We consider potential risks and opportunities

directly responsible for managing ESG risks and opportunities at Link Logistics, meeting biweekly to discuss strategy and reporting to the firm’s Board of Directors every quarter. As part of its responsibilities, the Board has ultimate ESG oversight and is responsible for reviewing, approving and advising on various aspects of our ESG strategies and goals. All climate-related decisions are first raised and approved internally through our Operations Governance Committee attended by members of our C-suite and other executives before being escalated to the Board for final approval.

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