CRESCENTCOMMUNITIES.COM
STATEMENT OF STEWARDSHIP | FOURTH EDITION
WITH PRIVILEGE COMES GREAT RESPONSIBILITY.
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FROM OUR CEO The only thing constant is change. To that point, much change has ensued within our company since we introduced our Stewardship framework and published our first Statement of Stewardship. This year, we took time to reflect on the meaning of Stewardship as it relates to our work at Crescent Communities. Our business leaders gathered to consider the pillars that have supported our commitment for the past several years. As a group, we reviewed the work we have accomplished to date with regard to green building initiatives and considered new possibilities. What we discovered was a renewed interest in sustainable practices, a focus on sharing the “why” behind our decisions, and a pledge to measure our progress. Consequently, we have begun the process of establishing metrics to gauge environmental impact as it relates to energy, water, and waste. We look forward to continuing this exploration through the coming months and sharing our progress with you in subsequent issues of this report. This year, we also analyzed the pillars of our Crescent Communities Cares initiative by gathering feedback from our team on the relevance of our focus areas. What we discovered was that the three pillars of focus – Environment, Education, and Shelter, continue to resonate with our team. We will deepen our commitment to these initiatives and continue to share our success stories along the way. In the following pages, we will share our fresh definition of Stewardship, outline the pillars that support our beliefs, and share examples of stewardship in action at Crescent Communities. We look forward to continuing the ever-evolving journey with you.
TODD W. MANSFIELD CEO Crescent Communities
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S T E WA R D S H I P D E F I N E D
The responsible oversight and protection of something considered worth caring for and preserving.
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BEING GOOD STEWARDS IS FUNDAMENTAL TO THE PURSUIT OF OUR MISSION TO BUILD COMMUNITY AND BETTER PEOPLE’S LIVES. At Crescent Communities, we strive to make difficult decisions that address current and future challenges and improve continuously in order to have a positive impact on the planet, the people, and the places we build and call home. We hold ourselves accountable through regular evaluation of our practices and ongoing measurement. Our goal is to ensure that the communities under our stewardship flourish for years to come. We seek to create legacies - the value of which build with time.
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S T E WA R D S H I P I N A C T I O N
We seek opportunities to create impact in areas where we can best serve as stewards of the people, the planet, and the places where we live, work, and play.
This report highlights our efforts to create positive impact in areas where our four pillars of stewardship connect. The icons displayed to the right represent each of these four pillars, and are used throughout the report to highlight the elements of stewardship supported by each of the initiatives outlined on the following pages.
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P I L L A R S O F S T E WA R D S H I P
ENVIRONMENT //
We understand that the process of community development can have unintended negative environmental consequences. We make choices that reduce our environmental impact while proactively seeking opportunities to support organizations that foster positive environmental change.
COMMUNITY //
We believe a community is a network of relationships, enriched by shared values and motivated by the fundamental human desire to be part of something greater. Whether we’re working with our associates, customers, or neighbors, we strive to find common ground and provide opportunities for productive communities to form and flourish.
WELLNESS //
We invest to create environments that support people’s physical and emotional well-being. We believe if we can design communities where healthy choices are easy to make, we in turn support the well-being of every person who lives, works, and plays there. In the end, our mission is to build environments that become the catalyst for a healthier and happier lifestyle.
LONGEVITY //
We approach community building with the future in mind. In order to create communities that remain relevant over time, we balance our vision and values with flexibility to adapt. Focusing on a foundation of resiliency allows us to seed a community that will sustain and continue to thrive long after our involvement has ended.
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CRESCENT COMMUNITIES CARES 2019 marked the 5-year anniversary of Crescent Communities Cares, our partnership-based giving strategy. As a company, we choose to give our time and dollars to community outreach initiatives aligned with three thoughtfully identified impact areas – EDUCATION, SHELTER, AND ENVIRONMENT. We identify opportunities to create impact in focus areas that resonate with our associates. Through this program, we stimulate a culture of passionate engagement that enables us to create true change on some of the most difficult issues that affect communities, such as affordable housing, chronic homelessness, educational disparity, and the climate crisis. In the last year, we supported the following organizations through time, talent, treasure, or a combination of all three:
ACE Mentor Program
The Levine Museum of the New South
Atlanta Community Food Bank
Boy Scouts of America
Berryhill School
Sustain Charlotte
Classroom Central
The Catawba Riverkeeper
Conservancy The Nature Conservancy Habitat for Humanity
TreesCharlotte Catawba Lands
Metrolina Minority Contractors Association Foundation for the Carolinas
PILLARS IN ACTION
ENVIRONMENT
WELLNESS
COMMUNITY
LONGEVITY
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CRESCENT COMMUNITIES CARES
IMPROVING ACCESS TO HOUSING WITH HABITAT FOR HUMANITY The Crescent Communities Cares team gives our time and energy to Habitat for Humanity in several of the markets in which we have offices. For the third year, our multifamily team organized the Habitat for Humanity Charlotte Multifamily Developers Build. Through this program, 15 Charlotte-area multifamily developers and partners teamed up with Habitat for Humanity Charlotte to fund and build a new home on Millhaven Lane in North Charlotte. The building project commenced on April 25th and was completed in July. The challenges of affordable housing can only be addressed if approached from many angles. We will continue to seek opportunities where we can best serve in addressing the need for affordable housing.
PILLARS IN ACTION
ENVIRONMENT
WELLNESS
COMMUNITY
LONGEVITY
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CRESCENT COMMUNITIES CARES
TREE FOR A KEY TREES ARE THE LIFEBLOOD OF OUR COMMUNITIES, providing shade, oxygen, protection from wind and noise, food and shelter for wildlife, filtering stormwater, reducing energy consumption, increasing home values and offsetting carbon emissions. While we try to make business decisions that have a minimal impact on the environment, Crescent Communities understands that the real estate development process can put our green space and tree canopy at risk. To help offset our impact, for every apartment leased in the Charlottearea, Crescent Communities makes a donation to TREES CHARLOTTE. The Tree for a Key initiative was first implemented with Crescent Dilworth in 2015 and since that time, we have planted roughly 1300 trees throughout the city of Charlotte. With the addition of three new properties to the program – NOVEL Research Park, NOVEL Montford Park and NOVEL Atherton – we intend to add hundreds more trees to the canopy through 2020.
LEARN MORE WWW.TREEFORAKEY.COM
PILLARS IN ACTION
ENVIRONMENT
WELLNESS
COMMUNITY
LONGEVITY
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CRESCENT COMMUNITIES CARES
BERRYHILL SCHOOL
PILLARS IN ACTION
ENVIRONMENT
WELLNESS
COMMUNITY
LONGEVITY
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BERRYHILL SCHOOL HAS LONG BEEN A STANDOUT AMONG CHARLOTTEMECKLENBURG’S HIGH-POVERTY SCHOOLS. The title one school, which houses students from Kindergarten through 8th Grade, is located in West Charlotte between the airport and the Catawba River, and has top-notch teachers and a dedicated staff. When Crescent Communities recognized the potential at the school, the team reached out to learn how we could get involved.
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CRESCENT COMMUNITIES CARES | BERRYHILL
THE FIRST OPPORTUNITY TO CONNECT WITH THE SCHOOL PRESENTED ITSELF IN OCTOBER 2018. The entire Crescent Communities team from all offices across the country convened to participate in several projects both inside and outside the school for a very special Crescent Communities Cares day. Volunteers read with the students, filled backpacks with school supplies, and provided a complete makeover to the exterior landscaping. The appreciation and excitement expressed by the students and staff was inspirational! In January, the Crescent Communities team hosted a small group of bright and promising 8th grade students from Berryhill for a career day in our office. Students learned about real estate development from different perspectives and many had the opportunity to visit Uptown Charlotte for the first time! Later in the spring, we returned to the school to continue our outdoor projects. With the help of kindergarten and first grade students, Crescent Communities planted fruits, vegetables, and flowers in raised garden beds offering an opportunity for education not only through planting, but through the care, maintenance, and eventual cultivation of the fruits of their labor. We expect great things from the students and staff at Berryhill School, and look forward to continuing to create impact through this meaningful partnership.
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DIVERSITY & INCLUSION Crescent Communities has a long history of supporting and encouraging diverse ideas, thoughts and perspectives, and this commitment has played a crucial role in our success. There is a wealth of research from business experts, organizational psychologists and others that lay out the various benefits of having a diverse and inclusive workplace. At Crescent Communities, we are committed to growth and to ensuring we are well positioned for continued opportunity, innovation, and exceptional business results. We embrace respect and celebrate diversity as a core value, and we support the development of an inclusive team.
PILLARS IN ACTION
ENVIRONMENT
WELLNESS
COMMUNITY
LONGEVITY
THE RIVER DISTRICT | Charlotte, NC
ALLY CHARLOTTE CENTER | Charlotte, NC
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DIVERSITY & INCLUSION
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DIVERSITY & INCLUSION
IN THE OFFICE THIS YEAR WE INTRODUCED AN INTERNAL DIVERSITY AND INCLUSION INITIATIVE TO ALIGN WITH OUR MISSION AND VALUES. This represents a small step in the process of evaluating our recruiting practices, our process of promoting associates, and the culture of our workplace. Our efforts began with a women’s focus group and resulted in actionable steps that will aid in the career advancement for our female leaders, and lead to an overall more diverse and welcoming workplace. We will continue to evaluate our recruiting practices to ensure we are hiring the best and brightest regardless of their race, gender, or background.
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DIVERSITY & INCLUSION
IN OUR COMMUNITIES DIVERSITY & INCLUSION
It is important that the partnerships we create promote upward mobility, boost the diversity of our workforce, and ultimately improve the quality of life for all people in our community. Both the support and employment of small and minority-owned companies is essential to the enhancement of the economy and greater community. Understanding that real progress can only be made when everyone has a seat at the table, we launched a diversity and inclusion initiative in our hometown of Charlotte, NC as a tool to address disparities, encourage inclusion, and create opportunities. We believe that the first critical steps toward the development of a more equitable and diverse workforce are forming relationships and communicating the opportunities available. Throughout the remainder of 2019, we will outline a companywide strategy for increasing diversity on our job sites. We will report on our findings and expectations in subsequent reports.
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AFFORDABLE HOUSING
PILLARS IN ACTION
ENVIRONMENT
WELLNESS
COMMUNITY
LONGEVITY
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BUILDING INCLUSIVE COMMUNITIES IN THE RIVER DISTRICT
We believe that everyone has the right to safe and comfortable housing. Access to affordable housing is the key to reducing economic disparity, but creating affordable housing continues to be a challenge in many of the areas where we build due to a variety of factors, including the cost of land. To this end, in the fall of 2018, Crescent Communities announced the donation of 4.5 acres of land in The River District to the Foundation for the Carolinas for the construction of affordable housing. The gift, valued at $2 million, is the first of its kind as part of the Foundationled effort to raise funds from the private sector to address Charlotte’s affordable housing crisis. Charlottebased developer, Laurel Street Partners, will create a 124-unit mixed-income housing community on this land.
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CULTURE
PILLARS IN ACTION
ENVIRONMENT
WELLNESS
COMMUNITY
LONGEVITY
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GET OUTSIDE In 2019, Crescent Communities introduced GO Day. In support of our company value to “Be Curious,” every full-time employee was encouraged to take one “Get Outside Day” off. Colleagues were encouraged to visit a park, greenway, play an outdoor sport, take their children on an outdoor adventure, ride bikes, hike, camp, or to simply get creative exploring the outdoors. The new benefit was a huge hit as evidenced by the fabulous photos our happy colleagues shared!
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DOING SUMMER RIGHT To encourage work-life balance, Crescent Communities team members are encouraged to leave the office at 1pm on Fridays from Memorial Day through Labor Day. This allows associates to get a kick-start on family time, beat traffic, or take a well-deserved break from the office. Colleagues at all levels take advantage of this very popular benefit!
C U LT U R E
WELLNESS REWARDED Team members are encouraged to be active! Crescent Communities provides a fixed reimbursement to team members for gym memberships, race entrance fees, and other regular physical exercise programming. A healthy workforce is a happy and productive workforce! Additionally, we offer regular office programming that encourages healthy choices – from yoga classes and nutritious cooking demonstrations to chair massages and yoga classes, Crescent Communities encourages all associates to find their outlet for healthful living.
C U LT U R E
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BUSINESS SPOTLIGHT
MULTIFAMILY GREEN CERTIFICATIONS COMPLETED COMMUNITIES
28 RESIDENCES 8,786
IN PROCESS COMMUNITIES
12 RESIDENCES 3,402
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MEASURING SUCCESS The built environment offers a significant opportunity to improve our building practices and reduce our environmental impact. By building more efficiently, we can affect positive change with regard to energy consumption, water use, and waste reduction. In order to identify areas for improvement, we must measure our actions.
home will be comfortable and efficient. With reduced energy use, water consumption, and construction waste, we limit our impact on the environment. By incorporating walkability and access into community design, we are connecting to the greater community. While we choose to incorporate green building practices and seek certification because it’s the right thing to do, we have also been recognized for our achievements. Crescent Communities has been named a Home Innovation NGBS Green Partner of Excellence for 2018, an honor we also achieved in 2017. NGBS Green, which is based on the National Green Building Standard™ (NGBS), has certified more homes than any other national green home certification program. Being one of an elite group of Home Innovation’s green certification participants to be recognized validates the commitment Crescent Communities has made to providing its customers with increased value, comfort, durability, and efficiency through its NGBS Green Certified apartment homes.
Since 2014, each of our multifamily communities has been certified (or is pursuing certification) under either the National Green Building Standard (NGBS) or Leadership in Energy and Environmental Design (LEED). Many people are familiar with LEED, and NGBS is relatively similar. To earn certification to the National Green Building Standard, a multifamily building must meet rigorous criteria in six categories – Lot & Site Development; Resource Efficiency; Energy Efficiency; Water Efficiency; Indoor Environmental Quality; and Homeowner Education. Building to a green standard such as the NGBS ensures residents that their
WALK SCORES
AVERAGE
63
URBAN
72
SUBURBAN
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PILLARS IN ACTION
ENVIRONMENT
WELLNESS
COMMUNITY
LONGEVITY
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PROJECT SPOTLIGHT
NOVEL STONEWALL STATION NOVEL Stonewall Station achieved a National Green Building Standard Bronze Certification. This third-party certification confirms that our project was designed and built to achieve high performance in six key areas: site design, resource efficiency, water efficiency, energy efficiency, indoor environmental quality, and building operation. Notable green features at NOVEL Stonewall Station include the following: • The community was created on a previously developed infill site and is highly dense. Both factors reduce the impact of construction on the natural environment. • The community is adjacent to the Light Rail Line in the heart of Charlotte, allowing walkability to employment centers, community resources, and retail, in addition to easy connectivity without the use of a car. • The roof system is constructed of Energy Star Cool Roof certified materials. • More than 50% of construction waste was diverted from the landfill through a construction waste management plan. • Energy Star qualified light fixtures were included.
• High efficiency thermal insulation, efficient windows and doors were installed creating an efficient thermal envelope and reducing energy use. • 14-SEER high efficiency air conditioning units and Energy Star appliances are included throughout. • Low-flow plumbing fixtures are included in all units, and both dishwashers and washing machines are designed to conserve water. • A minimum of 85% of adhesives and sealants are GreenSeal Certified, meeting requirements as low VOC products, and reducing the impact on indoor air quality. • At least 85% of the wall, ceiling, and floor insulation materials are formaldehyde free, further reducing the impact on air quality.
An important element of the NGBS standard, building operations and maintenance personnel are trained to effectively manage the processes and systems within the building, ensuring continuity in sustained practices in energy efficiency.
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P R O J E C T S P O T L I G H T | N O V E L S T O N E WA L L S TAT I O N
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COMMUNITY ENERGY ANALYSIS By building NOVEL Stonewall Station to achieve NGBS Certification, we created a community that uses less energy and water, resulting in a reduced environmental impact as illustrated below.
ANNUAL SAVINGS PER APARTMENT
COMMUNITY
kWh Savings
kWh Savings
1,114*
511,326*
Gallons Water Savings
Gallons Water Savings
1,740*
798,660*
ANNUAL ENVIRONMENTAL IMPACT
577,798*
884,070*
Pounds of carbon avoided
Miles not driven
5,979*
395,294*
Tree Seedlings Planted*
Pounds of coal not burned
Energy savings data represented are projected averages of all residential units on the property and do not include common or commercial uses. Kilowatt-hour savings for the modeled unit is in comparison a code-built unit. These figures are projections are based on several assumed factors, and therefore this data is not to be used as a guarantee of how much energy an individual apartment will conserve in a given year. Data utilizes the EPA Greenhouse Gas Equivalencies Calculator and Blue Sky Model Carbon Dioxide Emissions Projections.
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BUSINESS SPOTLIGHT
COMMERCIAL
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DEVELOPING BUILDINGS & COMMUNITIES THAT HELP PEOPLE THRIVE.
Crescent Communities was an early adopter of sustainable building certifications in the commercial space, achieving its first LEED Gold Certification in 2004 with One and Two Potomac Yard in Arlington, VA. We continue to emphasize the importance of designing, constructing and operating buildings to maximize occupant health and productivity, use fewer resources, reduce waste and negative environmental impacts, and decrease life cycle costs.
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PILLARS IN ACTION
ENVIRONMENT
WELLNESS
COMMUNITY
LONGEVITY
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PROJECT SPOTLIGHT
ALLY CHARLOTTE CENTER The sustainability and wellness framework identified for Ally Charlotte Center reflects the core values of Crescent Communities, and a commitment to the creation of an efficient and high-performing building. We believe that truly designing from the inside out starts with a focus on the individual employee and their health and happiness. It is widely recognized that high-performing buildings, specifically those that achieve sustainability and wellness designations, provide direct benefits to the building occupants including greater access to natural light and control over environmental systems. Innovative, sustainable, convenient and comfortable spaces are fundamentally important to retaining and recruiting talent as well as ensuring top performance and productivity. Pursuing both WELL and LEED certifications, Ally Charlotte Center aims to be a model of energy efficiency, resource conservation, waste mitigation and performance, while improving health and wellness through design. Additionally, through research from the Project for Public Spaces, Ally Charlotte Center was designed to create an inspiring experience by maximizing open spaces and incorporating unique architecture and collaborative open areas that encourage social collisions. The design of Ally Charlotte Center reflects the company’s ongoing commitment to serve all stakeholders, including employees, customers, investors, neighbors, and the greater community.
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DESIGNING TO INCREASE PRODUCTIVITY
P R O J E C T S P O T L I G H T | A L LY C H A R L O T T E C E N T E R
I M P R OV E D A I R Q UA L I T Y + Productivity increases by 11% with better ventilation and fresher air. + In spaces with better air quality (no VOC’s) workers performed 60% higher on focus tasks. + Low-VOC, high ventilation office space produced up to a 101% increase in cognitive function.
ACC E S S TO V I E WS + Views of nature can increase mood by 6%. + Connection to nature increases work productivity by 15%. + Up to 25% better functioning memory when workers have views.
D I R E C T LY P R O P O R T I O N A L + Research by The Healthways Center shows that AS WELL-BEING INCREASES EMPLOYEE PERFORMANCE IMPROVES.
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I N C R E A S E D D AY L I G H T I N G + #1 contributor to office productivity. + Workers’ performance and productivity increases annually by as much as 55%. + Productivity of focused work increases by 15%. + Absenteeism decreases by 40%. + Work in offices with windows receive 173% more beneficial white light and sleep an average of 46 minutes more every night.
E N H A N C E D TH ERM AL CO M FO RT + Productivity is reduced by 4% when it’s too warm and by 6% when it’s too cold. + Cognitive test scores were 5.4% higher in high performing green-certified buildings.
W E L L B U I L D I N G S TA N DA R D + Research shows the cumulative effect will, by INCREASING OCCUPANT WELL-BEING, also reduce absenteeism and presenteeism as well as INCREASE PRODUCTIVITY AND ENHANCE CREATIVITY.
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LEED BD+C (BUILDING DESIGN AND CONSTRUCTION) LEED certification provides independent verification of a building’s green features, allowing for the design, construction, operations, and maintenance of resource-efficient, high-performing, healthy buildings. LEED supports advancements in the following categories:
LOCATION AND TRANSPORTATION P R O J E C T S P O T L I G H T | A L LY C H A R L O T T E C E N T E R
Rewards thoughtful decisions about building location, with credits that encourage compact development, alternative transportation, and connection with amenities, such as restaurants and parks.
SUSTAINABLE SITES Rewards decisions about the environment surrounding the building, with credits that emphasize the vital relationships among buildings, ecosystems, and ecosystem services.
WATER EFFICIENCY Addresses water holistically, looking at indoor use, outdoor use, specialized uses, and metering.
ENERGY & ATMOSPHERE Approaches energy from a holistic perspective, addressing energy use reduction, energyefficient design strategies, and renewable energy sources.
MATERIALS AND RESOURCES Focuses on minimizing the embodied energy and other impacts associated with the extraction, processing, transport, maintenance, and disposal of building materials.
INDOOR ENVIRONMENTAL AIR QUALITY Addresses the design strategies and environmental factors—air quality, lighting quality, acoustic design, control over one’s surroundings—that influence the way people learn, work, and live.
Innovation and regionally specific advancements are also measured under LEED.
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WELL BUILDING STANDARD Administered by the International WELL Building Institute, the WELL Building Standard focuses on the way the built environment can improve comfort, drive healthier choices, and enhance health and wellness. WELL measures building performance in the following categories:
AIR
FITNESS
Quality standards including filtration and microbe control
Focus on active design, enhanced ergonomics, incentives for activity and structured fitness programs
WATER Testing and monitoring to control public water additives and system contaminants
NOURISHMENT Promotion of healthy food options, nutrition labeling, safe food preparation and sourcing
LIGHT Incorporation of glare free and circadian lighting design, optimizing light quality and daylighting
COMFORT Inclusion of spaces that consider comfort on all levels; physical, visual, thermal, olfactory, and acoustical
MIND Encouraging organizational policies and transparency, biophilic design, flexible and adaptable spaces
INNOVATION WELL encourages innovation by allowing projects to submit ideas for new features
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WE BELIEVE IN THE IMPORTANCE OF REFLECTION. As we consider on our progress toward reducing our impact on the environment and the community, we are able to identify new areas for improvement. As mentioned in the opening remarks from CEO Todd Mansfield, we look forward to sharing metrics of our environmental impact as it relates to energy, water, and waste in subsequent editions of this report. Further, we are eager to share the stories of our progress toward becoming a more diverse and inclusive community, and we look forward to continuing the journey of stewardship with our community of friends.
BUILD COMMUNITY. BETTER PEOPLE’S LIVES.
CRESCENT COMMUNITIES, LLC 227 W. TRADE STREET, SUITE 1000, CHARLOTTE, NC 28202 | 980.321.6000 | CRESCENTCOMMUNITIES.COM