Statement of Stewardship 2021

STATEMENT OF STEWARDSHIP

FIFTH EDITION CRESCENTCOMMUNITIES.COM

INTRODUCING OUR COVER ARTIST In alignment with our continued support of art in our communities, Crescent Communities is honored to include the work of Charlotte-based artist, Marvin Espy on the cover of this year’s Statement of Stewardship. Through a relationship with ArtPop Street Gallery, Marvin was identified as an ideal fit for our vision. After having a conversation with the Crescent Communities team about the values demonstrated by the report, Marvin developed the energetic and whimsical design seen here, much to the delight of the team.

CHECK OUT THE full interview with Marvin here.

Visit him on Instgram at @artbyespy

Said Marvin of the experience, “Working with Crescent Communities has been a great experience for me especially having spent the amount of time that I’ve spent in the corporate environment. I’m not familiar with very many corporations that care as much or demonstrate an active caring for people and individuals.

I was super excited about how the project came out and mostly because of their culture as a corporation” Originally from Cincinnati, Marvin studied oils at the Art Institute of Pittsburgh. Following a successful career in marketing and public speaking, Marvin returned to his love of the visual arts full time in 2013. His works have been featured in venues in and around Charlotte and in the Charlotte Business Journal.

Marvin has made appearances and taught dozens of workshops and painting classes, inspiring the next generation of artists.

He was a member of the 2019 class of ArtPop artists.

ABOUT ARTPOP STREET GALLERY ArtPop is a 501c3 nonprofit organization that showcases local artists by featuring their art in public spaces and equips them to achieve sustained success. We make art accessible to all people in the communities we serve, because everyone deserves access to art. Founded by Executive Director Wendy Hickey in 2014, ArtPop has featured more than 426 artists in 15 markets across the country.

TABLE OF CONTENTS 4

A LETTER FROM OUR LEADERS

6

OUR STATEMENT OF STEWARDSHIP

10 ENVIRONMENT 10

OUR ENHANCED APPROACH

12

INTRODUCING FITWEL

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BUSINESS SPOTLIGHT: MULTIFAMILY 16

Project Spotlight – NOVEL South Capitol

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Project Spotlight – NOVEL Atherton

20 BUSINESS SPOTLIGHT: COMMERCIAL 22

Project Spotlight – The River District

24

Project Spotlight – Ally Charlotte Center

28 SOCIAL 28

OUR APPROACH TO COVID-19 – PEOPLE FIRST

30 DIVERSITY, EQUITY, & INCLUSION 32

COMMUNITY SUPPORT 34

Charitable Matching Program Housing Impact Fund

36

Supportive Housing Communities Back-to-School Drive

38

NC Wildlife Federation Trees4Trash Catawba Riverkeeper Riversweep

40

Tree for a Key Random Acts of Kindness

42 GOVERNANCE

EMBRACING STEWARDSHIP WITH A FOCUS ON A SUSTAINABLE FUTURE LIKE MANY ORGANIZATIONS throughout the country and beyond, we are thankful to welcome a new year. The challenges of 2020 brought on by the COVID-19 pandemic and widespread social unrest were enough to threaten even the most stable of companies. But in a year marked by uncertainty and despair, we could not be prouder of the Crescent Communities team for their determination and ability to pivot and adapt. Despite the challenges of the year, our tenacious team and resilient business model allowed us to sustain our operations and maintain business continuity.

As a mission-driven organization, COVID-19 and the rise of the Black Lives Matter Movement reinforced our commitment to Build Community and Better People’s Lives. Our Statement of Stewardship is our commitment to environmental, social, and governance practices that enhance the lives of all who live, work, and play in our communities across the country.

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STATEMENT OF STEWARDSHIP FIFTH EDITION

A LETTER FROM OUR LEADERS

TODD MANSFIELD Chairman & Chief Executive Officer

BRIAN NATWICK President & Chief Operating Officer

The following pages will tell the story of how we responded to the challenges and enhanced our commitment to our pillars of stewardship – Environment, Community, Wellness, and Resiliency. Highlights include:

• A commitment to reporting on our efforts to not only reduce our carbon footprint, but also to create positive changes that enable ecosystems to thrive while inspiring others in the industry.

• Our timely and effective response to COVID-19

We embrace stewardship as an opportunity to reduce our environmental impact, support the community, and integrate resilient business practices. Not only are these initiatives in support of the greater good, but they also lead to consistent business results. We seek to do well by doing good.

• Our renewed commitment to Diversity, Equity and Inclusion through a volunteer-based internal task force and a commitment to action over promises • An emphasis on the wellness of our colleagues, tenants, and residents through a focus on innovative strategies and the support of WELL and Fitwel certifications

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BEING GOOD STEWARDS IS FUNDAMENTAL TO THE PURSUIT OF OUR MISSION TO BUILD COMMUNITY AND BETTER PEOPLE’S LIVES.

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STATEMENT OF STEWARDSHIP FIFTH EDITION

AT CRESCENT COMMUNITIES, we strive to make decisions that address current and future challenges and to 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.

OUR STATEMENT OF STEWARDSHIP

7

PILLARS OF STEWARDSHIP HONORING OUR COMMITMENT TO STEWARDSHIP, our pillars were revised to reflect a commitment to tackle climate change, the importance of addressing diversity, equity and inclusion, an emphasis on community development that supports physical and emotional well-being, and a focus on resiliency as a development practice and business strategy.

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STATEMENT OF STEWARDSHIP FIFTH EDITION

ENVIRONMENT To build prosperous and healthy communities within the ecological limits of our planet, it is essential to tackle climate change with disciplined and thoughtful development. We have adopted environmental sustainability principles, practices, and processes to both sustain the environment and support thriving economies. We seek to inspire our colleagues, residents, tenants, and the broader development community to make positive changes that enable ecosystems to flourish.

COMMUNITY A community is a network of relationships, enriched by shared values and motivated by the fundamental human desire to be part of something greater. We seek opportunities to build a more diverse, equitable, and inclusive community for our colleagues, partners, customers, and neighbors. When we provide opportunities for all, not only do we allow for productive communities to form and flourish, but we also create economic success.

WELLNESS We invest to create environments that support physical and emotional well-being. When we 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. The places we create then become the catalyst for a healthier and happier lifestyle, not only for our residents and tenants, but for the greater community.

RESILIENCE Our culture of resilience is demonstrated by our approach to community development and our overall business strategy. To create communities that remain relevant and prosperous over time, we balance our vision and values with flexibility to adapt. Focusing on a foundation of resiliency allows us to seed communities that will sustain and continue to thrive long after our involvement ends. The cultivation of diverse yet synergistic lines of business supports a strategy that is both robust and resilient, yielding consistent results.

OUR STATEMENT OF STEWARDSHIP

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AN ENHANCED APPROACH TO ENVIRONMENTAL SUSTAINABILITY SINCE PUBLISHING OUR LAST STATEMENT OF STEWARDSHIP, Crescent Communities has been working to develop a company-wide Environmental Sustainability Business Model. The broad goal of this effort is to build prosperous and healthy communities within the ecological limits of our planet.

The development of this Business Model, still ongoing, uses a fact-based approach that began with assessing our current state, benchmarking best practices, and building out a framework for the successful implementation of this approach consistent with third-party reporting standards.

Long a champion of sustainable development, the team recognizes the increasingly important role that we as developers play in the reduction of carbon emissions and mitigation of climate change.

In order to strengthen our ability to do that, in 2020 we began to implement a system of tools that are robust enough to enable the collection of environmental sustainability metrics. These tools will allow us to measure our impact in terms of energy, water, and waste. This is a critical first step in our ongoing commitment to reducing these impacts over time and to report our progress to all external stakeholders within the Annual Statement of Stewardship.

We have begun to implement the EPA’s Energy Star Portfolio Manager as our system of record for energy, water, and waste across all platforms enabling us to track, report, and improve: • Energy Use Intensity (EUI) – An indicator of the energy efficiency of a building’s design and/or operations. EUI is expressed as energy per square foot per year.

• Water Use Intensity (WUI) – How much water a building requires during years of occupation and use. WUI is expressed in gallons per square foot per year.

• Waste Diversion – The process of diverting waste from landfills through source reduction, reuse and recycling, and other innovative methods.

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STATEMENT OF STEWARDSHIP FIFTH EDITION

SPECIFIC CREDITS IN ENERGY, WATER, AND WASTE WILL BE REQUIRED OF ALL GREEN BUILDING CERTIFICATION SYSTEMS ACROSS ALL PROJECT TYPES AND PLATFORMS. EXAMPLES INCLUDE (BUT ARE NOT LIMITED TO):

ENERGY • Integrative design process • Energy modeling • Commissioning • Exceed relevant energy codes or standards

WATER • Indoor water efficiency • Outdoor water efficiency • Minimum water use intensity postoccupancy

• Minimum energy use intensity postoccupancy

• Drip/smart irrigation

• High-efficiency equipment and appliances

• High-efficiency fixtures

• Drought tolerant/lowwater landscaping

• Operational water efficiency monitoring

WASTE • Construction waste signage • Diversion rate requirements • Education of employees/contractors on waste management • Targets for waste stream recovery, reuse and recycling • Waste management plans

• Operational energy efficiency monitoring

While we identified the tools and strategies necessary to report our progress, data from 2021 will serve as a baseline from which improvement over time will be measured. We look forward to sharing this data and our progress in forthcoming editions of the Statement of Stewardship.

Reducing Carbon. Building Value.

Crescent Communities is a member of the Urban Land Institute (ULI) Greenprint Center for Building Performance. A global alliance of leading real estate owners, investors, and strategic partners, ULI Greenprint is committed to improving the environmental performance of the global real estate industry.

ENVIRONMENT

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AN EMPHASIS ON WELLNESS INTRODUCING

Fitwel is a building certification system that supports healthier living and working environments to improve occupant wellness and productivity. The Fitwel Certification System offers 50+ evidence-based design and operational strategies to optimize the health promoting impact of the built environment.

Fitwel is operated by the Center for Active Design, a nonprofit focused on health in the built environment, founded by Michael Bloomberg in 2012. CfAD was selected by the Federal government to be the licensed operator of Fitwel, leading future development and use within the private and public sectors. The Centers for Disease Control and Prevention remains the research and evaluation partner for Fitwel.

In September 2020, NOVEL Atherton by Crescent Communities became the first multifamily community in the state of North Carolina to achieve Fitwel Certification, signaling to employees, residents, investors, and others that Crescent Communities puts people first and prioritizes wellness within the design, development, and operations of buildings.

Crescent Communities is now a Fitwel Champion and is committed to certifying 6 communities within the coming year at minimum. Two commercial communities, Escent Research Park and Elizabeth on Seventh, are currently pursuing Fitwel Certification, and several multifamily communities across the development footprint are under evaluation.

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STATEMENT OF STEWARDSHIP FIFTH EDITION

THE SIX STRATEGY AREAS OF FITWEL

LOCATION

BUILDING ACCESS

Optimizing transit access and walkways to support greater opportunities for physical activity, social equity and foster positive impacts on community health.

Offering support for carpools, bikes, and pedestrians to support multi-modal access to buildings and opportunities for regular physical activity.

ENTRANCE & GROUND FLOOR Building entryway systems and appropriate lighting to promote improved air quality and access to healthpromoting amenities

OUTDOOR SPACES Creating provisions and policies for outdoor amenities, such as walking trails and smoke-free spaces to support mental and physical health.

INDOOR ENVIRONMENT

STAIRWELLS Developing accessible, visible, and well-designed stairwells to present a convenient way for building occupants to add physical activity to their day.

Implementing smokefree building policies and providing an asbestosfree interior to limit prolonged exposure to harmful airborne substances and pollutants in indoor environments.

THE SIX STRATEGY AREAS (ABOVE) SUPPORT SEVEN HEALTH IMPACT CATEGORIES:

1 4

Impacts Surrounding Community Health

Instills Feelings of Well-Being

2

3 6 7

Reduces Morbidity and Absenteeism

5

Enhances Access to Healthy Foods

Supports Social Equity for Vulnerable Populations

Promotes Occupant Safety

Increases Physical Activity

ENVIRONMENT

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BUSINESS SPOTLIGHT

MULTIFAMILY As mentioned previously, the Crescent Communities team revisited our approach to environmental sustainability this year. Strengthening our commitment, we modified our standard multifamily building practices to incorporate additional sustainability initiatives. Long a champion of the National Green Building Standard for certifying multifamily residences, we added new requirements to which every community will be built. The new requirements not only allow us to achieve measurable improvements and often a higher level of certification, but they also create a more efficient and better performing community.

We will continue to pursue both LEED and our newly enhanced NGBS certification with all multifamily community developments.

In future editions of the Statement of Stewardship, we will share metrics outlining our progress over time. We are proud to hold ourselves accountable, and hope to inspire others to do the same in support of prosperous and healthy communities.

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STATEMENT OF STEWARDSHIP FIFTH EDITION

MULTIFAMILY COMMUNITIES AND RESIDENCES GREEN CERTIFIED:

39 19

COMPLETED COMMUNITIES

IN PROCESS COMMUNITIES

11,783 6,243

COMPLETED RESIDENCES

IN PROCESS RESIDENCES

NEW! MULTIFAMILY COMMUNITIES AND RESIDENCES FITWEL CERTIFIED

1

COMPLETED COMMUNITIES NOVEL Atherton, Charlotte NC

6

IN PROCESS COMMUNITIES Atlanta, GA Orlando, FL Charlotte, NC Tampa, FL Houston, TX Washington, DC

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 was named a Home Innovation NGBS Green Partner of Excellence for 2019, an honor we also achieved in 2017 and 2018. 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. *Multifamily data since 2006

ENVIRONMENT

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MULTIFAMILY PROJECT SPOTLIGHT

NOVEL South Capitol

WASHINGTON, DC

Located within walking distance to the Wharf and Navy Yard, and only a half mile from Capitol Hill, NOVEL South Capitol is a luxury mixed-use high-rise apartment community located at the nexus of the District’s most bustling waterfronts and historic neighborhoods. NOVEL South Capitol offers 539 residences in two 14-story towers, connected physically by shared amenity spaces and an exquisite motor courtyard and elevated garden. In addition to ABC Pony, and onsite all-day cafe, rich amenities include a rooftop pool with sweeping Capitol views, an integrated dog spa with accompanying spacious dog run, indoor and outdoor club rooms, an expansive fitness and yoga suite with dedicated outdoor green space, and resident coworking centers.

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STATEMENT OF STEWARDSHIP FIFTH EDITION

NOVEL South Capitol achieved a LEED Silver Certification and is currently pursuing Fitwel Certification.

KEY SUSTAINABILITY AND WELLNESS FEATURES INCLUDE: • Brownfield redevelopment on a highly dense site, reducing environmental impact • Adjacent to mass transit and walkable to employment centers, retail, and conveniences, both reducing car dependence and encouraging healthy habits • Green roof constructed of Energy Star Cool Roof Certified materials • Gray water used for onsite irrigation • More than 50% of construction waste diverted through a waste management plan • Approximately 20% of construction and design materials used on site were recycled

• Highly efficient windows and doors create an effective thermal envelope and reduce energy use • Highly efficient thermal insulation, improving energy performance and comfort • Low-flow WaterSense Plumbing fixtures reduce potable water use • Indoor and outdoor biophilia enhance health and wellbeing • Indoor and outdoor fitness spaces, yoga suite, promote health and wellness • Nearby parks, bike lanes, and bike shares promote an active lifestyle

ENVIRONMENT

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MULTIFAMILY PROJECT SPOTLIGHT

NOVEL Atherton

CHARLOTTE, NC

Atherton Mill is an energetic mixed-use development in Charlotte’s South End, nestled among some of the most beloved and established residential neighborhoods of Charlotte and just over a mile from Uptown. The transitoriented community features destination shopping, dining, nightlife, breweries, and NOVEL Atherton by Crescent Communities. Residents of the community enjoy a host of amenities, all intentionally positioned to take advantage of the exceptional views of the Uptown Charlotte skyline to the East, the Charlotte Rail Trail and the vibrant South End neighborhood. Residents can soak in the elevated salt-water pool while taking in the views or work out in the two-story fitness club complete with Peloton bikes overlooking the bustling Rail Trail.

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STATEMENT OF STEWARDSHIP FIFTH EDITION

NOVEL Atherton achieved an NBGS Bronze Certification and is the first multifamily community in North Carolina to achieve Fitwel Certification.

BRONZE

KEY SUSTAINABILITY AND WELLNESS FEATURES INCLUDE: • Located on previously developed highly dense infill site • Highly walkable mixed-use community reduces car dependence and promotes an active lifestyle

• Highly efficient thermal insulation, improving energy performance and comfort • Low-Flow WaterSense Plumbing fixtures reducing potable water use

• Direct access to the 3.5-mile Rail Trail, an urban walking and biking trail, supporting active transportation and wellness

• A minimum of 85% of adhesives and sealants are Low-VOC, GreenSeal Certified, reducing the impact on indoor air quality

• Roof system constructed of Energy Star Cool Roof Certified materials

• 14 SEER air conditioning units and Energy-Star appliances reduce energy consumption

• Approximately 75% of construction waste diverted through construction waste management plan

• Nearby parks, bike lanes, and bike shares promote an active lifestyle

• Energy Star qualified light fixtures throughout, conserving energy

ENVIRONMENT

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BUSINESS SPOTLIGHT

COMMERCIAL 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, the headquarters for the Environmental Protection Agency. 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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STATEMENT OF STEWARDSHIP FIFTH EDITION

CURRENTLY PURSUING LEED SILVER (AT MINIMUM):

LEED BD+C, Core & Shell

ALLY CHARLOTTE CENTER ESCENT RESEARCH PARK ELIZABETH ON SEVENTH LEED BD+C, Commercial Interiors

CRESCENT COMMUNITIES OFFICE IN ALLY CHARLOTTE CENTER

CURRENTLY PURSUING FITWEL

ESCENT RESEARCH PARK ELIZABETH ON SEVENTH

CURRENTLY PURSUING WELL CERTIFICATION

ALLY CHARLOTTE CENTER CRESCENT COMMUNITIES OFFICE IN ALLY CHARLOTTE CENTER

ENVIRONMENT

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COMMERCIAL PROJECT SPOTLIGHT

The River District

CHARLOTTE, NC

One Planet Living is a framework that encourages the incorporation of 10 elements of sustainability into the design and development of communities and cities. Developed by Bioregional, a non-profit organization, based in the UK, the One Planet Living framework has been applied to cities and communities globally.

Unlike a traditional certification program, a One Planet Living Action Plan represents a commitment to building and developing in accord with principles that support the health of the environment and the wellness of the people.

The Crescent Communities Team is developing a One Planet Living Action plan to support the 10 elements of sustainability for The River District, a 1,440-acre master-planned mixed-use community located just west of the center of Charlotte, NC. As construction in the River District begins to take shape in 2021, we will develop and share the strategies that will allow us to achieve sustainable community development in accord with the ten principles of One Planet Living.

10 ELEMENTS OF ONE PLANET LIVING

1

HEALTH & HAPPINESS

22

2

EQUITY & LOCAL ECONOMY

3

CULTURE & COMMUNITY

STATEMENT OF STEWARDSHIP FIFTH EDITION

4 5 LAND & NATURE

SUSTAINABLE WATER

SUPPORTING THE PRINCIPLES OF ONE PLANET LIVING, THE COMMUNITY WILL FEATURE:

500+ acres of preserved green space and connections to nature

An intentional reduction in energy, water, and waste

Walking and biking trails offering connectivity throughout

Opportunities for lifelong learning

A sustainable urban farm to support local food production

6

LOCAL & SUSTAINABLE FOOD

7

Affordable and mixedincome housing Community access to the Catawba River

TRAVEL & TRANSPORT

8

MATERIALS & PRODUCTS

9 10 ZERO WASTE

ZERO CARBON

ENVIRONMENT

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COMMERCIAL PROJECT SPOTLIGHT

Ally Charlotte Center CHARLOTTE, NC

Ally Charlotte Center was featured in previous editions of the Statement of Stewardship. As the commercial community nears completion, Ally Financial is expected to occupy their new state-of-the art office tower in late Spring, 2021. Crescent Communities is pleased to be joining them on the 8th floor of Ally Charlotte Center in the fall of 2021.

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. In addition, the Crescent Communities team is expanding their commitment to environmental sustainability and wellness by pursuing WELL and LEED certifications for their individual office space.

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.

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STATEMENT OF STEWARDSHIP FIFTH EDITION

MAJESTIC 45-FOOT TALL LIVE OAK MAKES NEW HOME AT ALLY CHARLOTTE CENTER On October 8th, 2020, a spectacular live oak tree found its new home at the Ally Charlotte Center corner plaza at Tryon and Stonewall in Uptown Charlotte. The tree traveled from Johns Island, SC, where it was planted 16 years ago. It weighs approximately 45,000 pounds, stands 45’ tall and has a 26’ diameter canopy. The tree is expected to double in size over its lifetime and has the potential to live for several hundred years. The live oak will remain virtually evergreen, only shedding its leaves for new growth a few weeks out of the year. Additionally, 14 ginkgo trees will be added to the plaza, which will turn a vibrant yellow in the fall.

The stately oak will not only strengthen the inviting plaza environment, but it will also serve as a beacon of community, wellness, and sustainability.

According to the USDA Forest Service, the addition of a tree of this size will reduce air pollution, conserve water and reduce soil erosion, encourage wildlife diversity, and reduce noise pollution, among several other positive effects.

ENVIRONMENT

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COMMERCIAL PROJECT SPOTLIGHT

Ally Charlotte Center

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 resourceefficient, high-performing, healthy buildings. LEED supports advancements in the following categories:

LOCATION AND TRANSPORTATION 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.

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STATEMENT OF STEWARDSHIP FIFTH EDITION

ENERGY & ATMOSPHERE Approaches energy from a holistic perspective, addressing energy use reduction, energy-efficient 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.

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

COMFORT Inclusion of spaces that consider comfort on all levels; physical, visual, thermal, olfactory, and acoustical

NOURISHMENT Promotion of healthy food options, nutrition labeling, safe food preparation and sourcing

MIND Encouraging organizational policies and transparency, biophilic design, flexible and adaptable spaces

LIGHT Incorporation of glare free and circadian lighting design, optimizing light quality and daylighting

INNOVATION WELL encourages innovation by allowing projects to submit ideas for new features

ENVIRONMENT

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Our approach to COVID-19 – Putting our people first.

2020 brought challenges that upended our personal and professional lives. During the ongoing pandemic, Crescent Communities implemented meaningful and effective protocols to assure the safety and well-being of the Crescent Communities’ team members while successfully maintaining business continuity. While the pandemic continues to present us with challenges, the team has found strength in supporting one another. Throughout the year, we implemented the following in support of our team members:

The pandemic disproportionately affected those who were already struggling. In support of the community, we made special financial contributions to the following organizations across our national footprint:

Feeding America Second Harvest Food Bank Atlanta Community Food Bank North Texas Food Bank Food Bank of the Rockies The Community Foundation of Middle Tennessee

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STATEMENT OF STEWARDSHIP FIFTH EDITION

Crescent Communities has long understood the value of a flexible work environment and offered team members the option to work remotely.

While the restrictions due to COVID varied in our offices across the country, Crescent Communities encouraged all team members to work from home throughout the pandemic to reduce community spread. As some offices offered limited options to return, procedures were implemented to increase physical distancing and reduce exposure, while the team was still strongly encouraged to work remotely. The leadership team adapted to rapidly changing conditions by offering timely communications to all colleagues.

Understanding the personal challenges presented by COVID-19, the leaders at Crescent Communities offered a greater degree of flexibility than ever before. Not only did we maintain business continuity, but the team also adapted effectively, and thrived despite the uncertainty.

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 for “summer Fridays.” This allows associates to get a kick-start on family time, beat traffic, or take a well-deserved break from the office. To further support the changing needs of our team, this benefit was extended through September. Colleagues at all levels were grateful for the additional respite. When summer hours ended, leaders encouraged meeting-free Fridays, allowing extra support for team members to do the work often postponed by long meeting days.

Crescent Communities offers an annual wellness subsidy to all colleagues to encourage physical activity. To further support mental and physical well-being, mindfulness apps and personal home gym equipment were added to the list of qualified wellness subsidies in 2020.

One of the most significant challenges presented by COVID-19 was that of home-schooling. While many Crescent Communities colleagues have young children, leaders recognized the new and significant demands being placed on parents. The HR team presented a survey and hosted a parental support roundtable discussion, seeking to understand the needs of working parents.

Understanding that COVID-19 has placed new emotional strains in an already challenging world, Crescent Communities offered several workshops focused on mental well-being, and reinforced its commitment to mental health benefits.

SOCIAL

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Diversity, Equity, and Inclusion Crescent Communities acknowledges the inequalities – both visible and invisible – in our country, and is committed to having tough conversations, to listen, and to learn. We further commit to taking meaningful action to fight racism and discrimination in all forms. Our fundamental company value is “Do what’s right.” This is not an empty promise. We hold ourselves accountable to actively advocate for unity, equality, and justice in the fight against racism.

In response to the Social and Racial Justice Movement following the tragic events of 2020, our Senior Leadership Team passionately led the corporate response, and challenged the entire team to act. Understanding that change must be demonstrated from the top, the leaders established a volunteer-based Diversity, Equity, and Inclusion Task force led by our Senior Vice President and Chief People Officer, Tracy Chambers. The task force serves to address disparities, encourage inclusion, and create opportunities. The leaders identified five initiatives that would become the focus areas of the task force and implemented policies to support a more diverse workforce in the short term, while also expanding opportunities for women and minorities in the real estate development profession. While some companies are talking about what they will do, Crescent Communities is taking action.

In addition to the actions initiated internally, Crescent Communities made a financial contribution to the Equal Justice Initiative, a non-profit organization committed to ending mass incarceration and excessive punishment in the United States, to challenging racial and economic injustice, and to protecting basic human rights for the most vulnerable people in American society.

We are committed to fostering a more diverse and inclusive work environment.

Better business decisions are made when all voices have a seat at the table, and we acknowledge that we have an opportunity to improve. This is important work that will not transform any organization overnight. We are committed to evaluating our recruiting practices and supporting our partner organizations to improve the diversity of their teams. We support the education of the future generation of diverse leaders, pursuing careers in the real estate industry.

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STATEMENT OF STEWARDSHIP FIFTH EDITION

DIVERSITY, EQUITY, AND INCLUSION TASK FORCE MISSION We will reinforce our commitment to create opportunities for all through an open and honest dialogue and develop proactive solutions that will lead to a more diverse, equitable and inclusive workforce.

TASK FORCE FOCUS AREAS

PARTNER SUPPORT

Our construction team will seek minority participation in all projects, and request that our prime contract holders seek and report on Minority and Small Business participation in all phases of construction.

More broadly, the entire Crescent Communities team will seek minority participation in sourcing new vendor partners and in procurement.

LEADERSHIP

Our Leaders are participating in learning experiences that provide greater understanding of other perspectives and a forum to have difficult and often uncomfortable conversations about what we can do to drive change.

LEARNING & CONVERSATIONS

We offer all colleagues the opportunity to gain new perspectives and share in the conversation to help us become more aware, compassionate, and engaged in the quest for equity.

RECRUITING STRATEGY

We are evaluating our recruiting strategy, including the sources from which we seek candidates, our interview and selection process for both internal and external candidates, and our Summer Associate program.

COMMUNITY SUPPORT

We support organizations that foster equity and social justice both nationally and in areas where we have an office presence. We will continue to evaluate volunteer opportunities that support high-need communities in our focus areas of education, environment, and shelter.

SOCIAL

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COMMUNITY SUPPORT 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 the Crescent Communities CARES volunteer and charitable giving 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.

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STATEMENT OF STEWARDSHIP FIFTH EDITION

IN THE LAST YEAR, WE SUPPORTED THE FOLLOWING ORGANIZATIONS THROUGH TIME, TALENT, TREASURE, OR A COMBINATION OF ALL THREE

Trees Charlotte

SUSTAIN

CHARLOTTE

Plant, Preserve & Celebrate!

SOCIAL

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COMMUNITY SUPPORT

Charitable Matching Program To further reinforce our mission to Build Community and Better People’s Lives, Crescent Communities supports the spirit of giving among team members. Recognizing the important work that nonprofit organizations do to lift our community, Crescent Communities implemented a charitable matching program in 2020. Qualified donations of up to $250 are matched on an annual basis. The new policy was fully embraced by our team, and nearly 30 employee donations were matched by the company.

Crescent Communities Announces Participation in Housing Impact Fund In November 2020, Crescent Communities announced its investment in the Housing Impact Fund, a private-sector fund dedicated to purchasing and preserving naturally occurring affordable housing (NOAH) in Mecklenburg County. The fund, valued at $58 million, will be used together with investments from the city of Charlotte and Mecklenburg County to purchase approximately 1,500 apartment units and put in place deed restrictions to ensure the units remain affordable.

“We are proud to be part of this important effort to ensure quality housing is available and attainable throughout the Charlotte area for years to come,” said Crescent Communities Chairman and CEO Todd Mansfield. “Our company vision is to build community and better people’s lives, and the Housing Impact Fund is just one way that we continue to execute on this vision.”

While the Housing Impact Fund is Crescent Communities’ latest investment in affordable housing, it is far from the first. Notably, Crescent Communities committed 4.5 acres in The River District of Charlotte for the development of mixed income housing. Laurel Street Partners will develop 124 affordable residences on this land in The River District, with an anticipated delivery in late 2022. Additionally, Crescent Communities has made a commitment to include senior affordable housing in a forthcoming community in the Ballantyne area of Charlotte. The company continues to create opportunities for affordable and workforce housing in its communities located in the Charlotte area as well as in other major markets around the country.

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Crescent Communities Supplies Backpacks to High-Need Students While we support back-to-school efforts for those in need through an annual supply drive, this year, we were presented with a unique opportunity to make a HUGE impact in a more direct way. The Crescent Communities team was asked to supply backpacks stocked with all essential school supplies for 128 Charlotte-area students housed with Supportive Housing Communities. While this organization supplies immediate housing for our very vulnerable homeless population, they also extend their wraparound services to families in need of housing and support. The team was inspired by the SHC mission and vision to develop and operate permanent supportive housing for men, women, and families overcoming homelessness, while offering a host of services to help them get back on their feet.

The Crescent Communities CARES team set up an online wish-list, allowing team members from across the country to contribute supplies from their home offices. Boxes began rolling into the corporate office in early July. Through the overwhelming generosity of the team paired with the support of Crescent Communities, the supplies continued to arrive until all requests were met. Several CARES team members gathered over the course of a few weeks to sort supplies and fill the backpacks with everything from crayons to composition books. On Friday, August 7th, Crescent Communities CARES team members gathered to transport an overflowing van packed with full backpacks to the SHC team.

While COVID-19 prevented us from visiting with the students, the case workers distributed the supplies to 128 grateful and enthusiastic students later that day. While there were many factors that played a role in the challenging school year for these students, we are pleased to know that we helped to provide the physical resources they need to learn – whether from home or in the classroom.

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COMMUNITY SUPPORT

NC Wildlife Federation Trees4Trash Planting Event Although the event was originally scheduled for April in honor of the 50th Anniversary of Earth Day, the Crescent Communities CARES team gathered with the North Carolina Wildlife Federation in October 2020 for the rescheduled event! The goal of the day was to plant trees and collect trash in support of the NCWF Trees4Trash Program, through which 1 tree is planted for every 25 pounds of trash that is removed from the environment. The CARES team planted 30 trees along the Irwin Creek Greenway and removed plastics and other trash along the way on a very warm fall day.

Trees4Trash is incredibly important because wildlife suffer in many ways from our plastic refuse through suffocation, poisoning, and ingestion. If we remove these plastic items before they make it into the waters, we are protecting both the terrestrial and aquatic species from this harmful trash.

Riversweep with Catawba Riverkeeper The Catawba Riversweep takes place one day a year when citizens from all over the Catawba-Wateree River Basin come together to clean up on the same day. On October 3rd, thousands of neighbors came together at dozens of sites from Lake James to Lake Wateree and everywhere in between. Several Crescent Communities team members volunteered for a day of hard work, and fun, removing trash and debris from the shoreline of the Catawba River to keep it beautiful, safe, and free of pollution!

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COMMUNITY SUPPORT

Trees Charlotte & 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 donates 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 1,300 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 added hundreds more trees to the canopy in 2020.

Random Acts of Kindness While we would have liked to get together at the close of 2020 to give back to the community as a team, understanding the risks associated with gathering, we chose to support the community virtually. Colleagues were encouraged to form virtual teams of five and to brainstorm charitable organizations they would like to support. Donations were made on behalf of Crescent Communities and the participants in each team. We had GREAT participation, and we were able to support organizations across our footprint and to make a difference with many small actions. The following organizations were supported through this effort: • A Roof Above • A Gift for Teaching • The Capital Food Bank • The Children’s Home Society • Classroom Central • Friendship Trays • The Gilbert Historical Society • The Humane Society of Union County • Loaves and Fishes

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• The Martin-Pitt Partnership for Children • The Men’s Shelter (now Roof Above, but specific to Men’s Shelter) • The North Carolina Sustainable Energy Association • The North Texas Food Bank • Purple Heart Homes • RiNo Arts District Festival

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Our Commitment to Effective Governance In July 2018, Crescent Communities became an independently operated investment management affiliate of Sumitomo Forestry of America, Inc. Through our integrated services of development, construction, property operations, and investment management, Crescent Communities strives to deliver strong investment performance through the cycles, capture market opportunities with innovative products, and continue our research-driven investment approach executed by locally based teams.

We provide our investors with real estate investment opportunities to meet their investment objectives, mindful of our obligations to accountability, transparency, and trust. We also aim to provide healthy and productive spaces, develop and operate assets in a manner consistent with Crescent’s tradition of responsible corporate citizenship, and oversee the management of buildings to maximize resource efficiency and environmental sustainability.

Crescent Communities adheres to governance practices that will ensure our investors’ ongoing confidence and thoughtful risk management. This involves a continual review of how legislation, guidelines, and best practices should be embodied in our approach. Representing the Company, the CEO actively participates in the National Association of Corporate Directors, an organization dedicated to identifying and fostering best practices in governance.

Crescent Communities is governed by a four-person Board of Directors which includes three representatives of Sumitomo Forestry and the company CEO. Sumitomo Forestry of America has one representative director and a small financial and operations oversight team based at Crescent’s Charlotte headquarters. Operating authority is delegated by our Board of Directors via a clearly delineated delegation of authority policy.

Our governance policies include our Crescent Code of Business Ethics. The Code of Business Ethics sets forth principles that employees must follow. It describes ethical risks for employees, provides guidance on how to recognize and deal with ethical issues, and explains how to report what is believed to be unethical conduct. The Code is intended to foster a culture of integrity, compliance, respect, and accountability.

This Code applies to all employees of Crescent Communities, its subsidiaries, and its affiliates and requires annual certification by each employee. Please refer to the Code document for details. The Code is managed by our internal Director of Risk Management and Internal Audit. We maintain a whistle-blower hotline, EthicsLine provided by InTouch, and we take measures to ensure that every employee is aware of the existence and purpose of the hotline.

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CRESCENT COMMUNITIES, LLC 227 W. TRADE STREET, SUITE 1000, CHARLOTTE, NC 28202 | 980.321.6000 | CRESCENTCOMMUNITIES.COM