SSI Report 2023 - Environmental

Environmental Sustainability

Overview

Our commitment to reducing our impact on the environment is paramount to our business. Our focus on promoting a lowcarbon economy, optimizing the efficiency of our day-to-day operations and working across our ecosystem of business partners underpins our sustainability approach.

Introduction

We primarily activate our commitment through:

Social Impact

Environmental Sustainability

Decarbonization, including energy efficiency, renewable energy and reducing GHG emissions

Implementation of green building principles and use of certified facilities

Water conservation and responsible use

Governance Waste reduction and recycling

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2023 Sustainability and Social Impact Report

Active engagement with our customers

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Environmental Sustainability

Our Approach

Our Approach

Customer Partnerships

Across our portfolio, we are committed to effective environmental management and performance in keeping with the expectations of our customers, employees and other key stakeholders, as well as in alignment with emerging regulations at the federal, regional, state and city level.

We collaborate with our customers to reduce energy consumption, manage resource use and waste generation, along with other compliance, efficiency, educational and data management practices. We also offer green lease14 clauses in new and renewal leases, which can support a customer’s own sustainability goals and help meet regulations in the US and European Union. Our properties also partner with customers to facilitate sustainability education events, electronics recycling drives, beach clean-ups, farmers markets and related activities.

Reducing our environmental impact is enacted by incorporating sustainability considerations into our daily operations, including management, maintenance and construction. This is thanks to the dedication of our Engineering and Property Management teams who continually look for opportunities to make adjustments that increase energy efficiency, help mitigate the effects of climate change, reduce water use, manage waste outputs and maintain indoor air quality standards. Property-specific environmental risk assessments further support our operations and preparations for changing conditions by measuring our risk and resilience levels related to natural disasters, hazardous materials, contamination and unexpected geopolitical events. We actively work to identify opportunities to reduce energy consumption and GHG emissions at the building level through operational adjustments and capital improvement projects.

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Green leases are standard lease agreements that are characterized by having clauses and requirements related to Sustainability and Social Impact (e.g., energy, water and waste management, metering, social initiatives, etc.).

Examples of our environmental sustainability initiatives include:

•

•

Energy and Emissions - Installing energy-efficient building upgrades and creating a plan to reduce GHG emissions when a new asset is acquired

•

Waste Minimization - Implementing recycling and composting

•

Creative Reuse - Reusing or repurposing products and spaces whenever possible

•

Vendor Diversity and Engagement - Working with suppliers and procuring materials that benefit local economic development and culture

Resources - Evaluating ways to reduce the use of natural resources in daily building operations

•

Green Construction - Implementing EQ’s Green Pre-Construction Checklist13

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EQ’s Green Pre-Construction Checklist includes the local sourcing of materials (within 500 miles of a building), use of materials associated with lower emissions, use of energy-efficient materials in interiors, use of local cultural materials (i.e., site-specific historic elements), prioritization of lowering operating costs through environmental capital improvements and application of vendor waste diversion policies and tracking practices.

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2023 Sustainability and Social Impact Report

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Environmental Sustainability

Our Approach

Decarbonization

2023 Environmental Performance Overview:

43%

53%

of leases in place included sustainabilityrelated clauses, representing 30% of the square feet in our portfolio15

of our portfolio offers composting programs, with three additional EQ assets launching food waste composting in 2023

~60%

31%

of EQ's square footage is LEED certified16

of properties underwent air filtration upgrades Photo Credit: Bianco Artists

43%

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Decarbonization

of vendors hired for construction projects utilized EQ’s Green Pre-Construction Checklist

Real estate plays a significant role in global carbon emissions, making it essential to pursue decarbonization through energy reduction, operational improvements, optimized material use, efficiencies and the adoption of clean energy sources.

27%

58%

Our commitment to decarbonization is our priority since GHG emissions represent our primary environmental impact and therefore our greatest opportunity to accelerate progress and support resilience.

year-over-year increase in tons of electronics recycling and additional product recycling and reuse19

of properties have electric vehicle charging stations available for employees and customers

ENERGY STAR certifications,17 covering 26% of the square feet in our portfolio18

15 16 17 18 19

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2023 Sustainability and Social Impact Report

Green lease clauses are associated with over 7,340,700 square feet in our 2023 portfolio.

LEED certifications are associated with over 14,253,300 square feet in our 2023 portfolio. 15% of LEED certified square footage earned new or renewed certification in 2023.

To be certified as ENERGY STAR, a building must meet strict energy performance standards set by the US Environmental Protection Agency (EPA) and earn an ENERGY STAR score of 75 or higher.

ENERGY STAR certifications are associated with nearly 6,462,700 square feet in our 2023 portfolio.

Additional product recycling and reuse includes the collection of paint, Styrofoam, lamps, bulbs, batteries and other materials that require non-traditional waste disposal.

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Environmental Sustainability

Decarbonization

Greenhouse Gas Emissions

Enhanced Data Collection and Analysis

In 2022, we measured and reported our GHG footprint for the first time. Since then, we have established our GHG emissions baseline and extended the measurement of relevant Scope 3 categories—adding two more categories, for a total of three in Scope 3. Now we are working to set targets with corresponding plans across Scopes 1, 2 and 3 aligned with best practices in climate science and stakeholder needs.

At the same time, we are upgrading our data management and reporting capabilities around utilities and GHG emissions, a critical step.

We continue to focus on extending data collection and refining methodologies in line with regulations and customer needs.

As we further build out our decarbonization program, we remain committed to transparently reporting our GHG emissions footprint and annual electricity use and implementing new technologies where feasible.

In 2023, we have expanded our Scope 3 data collection and reporting to include category 5 (waste) and category 7 (employee commuting), as well as refined our methodology in calculating category 13 (downstream leased assets). We also expanded Scope 1 emissions to include secondary fuel consumption data from onsite generators, equipment, refrigerants and mobile sources.

202220and 202321GHG Emissions Footprint Absolute

Description

2023 GHG 2022 GHG Emissions Emissions Absolute Absolute (metric tons (metric tons CO2e)21 CO2e)20

Like-for-Like22 Year-22 OverYear23 Change

2022 GHG 2023 GHG Emissions Emissions Absolute Absolute (metric tons (metric tons CO2e) CO2e)

Intensity23 (Like-for-Like) YearOverYear Change

2023 GHG 2022 GHG Emissions Emissions Absolute Intensity (kgCO2e/ft2) (kgCO2e/ft2)

2023 GHG Emissions Reduction

YearOverYear Change

Scope 124

Direct emissions

4,764

6,821

43%25

1,776

1,861

5%26

0.090

0.095

5%27

Scope2627228

Indirect emissions

49,464

42,807

-13%

44,908

40,896

-9%

2.28

2.08

-9%

Scope 1 & 2

Combined total of direct and indirect emissions

54,228

49,628

-8%

46,685

42,757

-8%

2.37

2.17

-8%

Scope 3 Category 529

Waste

-

2,205

-

-

-

-

-

-

-

Scope 3 Category 730

Employee commuting

-

183

-

-

-

-

-

-

-

Scope 3 Category 1331

Downstream leased assets

112,048

103,626

-8%

105,922

96,272

-9%

5.38

4.90

-9%

Despite the increase in data collected, we decreased Scope 1 and 2 emissions in 2023.

Scope 1 and 2 emissions, which represent our direct emissions and purchased energy, respectively, decreased year-over-year by about 8% due to increased operational efficiencies implemented by our Operations team.

Photo credit: Chris Ozer

Total

20 21 22 23 24

166,276

155,643

-6%

152,607

139,029

-9%

7.76

7.07

-9%

EQ’s 2022 GHG emissions footprint aligns with the Environmental Protection Agency’s (EPA) Emissions and Generation Resource Integrated Database (eGrid2021).

The eGrid factors are used to convert electricity consumption data into associated greenhouse gas emissions.

EQ’s 2023 GHG emissions footprint aligns with the EPA Emissions and Generation Resource Integrated Database (eGrid) released in January 2024 (eGrid2022).

The eGrid factors are used to convert electricity consumption data into associated greenhouse gas emissions.

Like-for-like calculations compare year-over-year performance of properties owned with available data in 2022 and 2023. The like-for-like analysis excludes properties bought or sold throughout the reporting period. The analysis also excludes categories of scope 1 and scope 3 emissions that were added to the inventory in 2023 and not accounted for in 2022.

In alignment with the US EPA’s Energy Star Portfolio Manager standards and calculations, our measure of square footage used to calculate intensity is characterized by the gross floor area of each building, excluding parking and garage spaces.

Scope 1 emissions are direct GHG emissions that occur from sources that are owned or operated by EQ, e.g. emissions generated by EQ-owned or operated boilers, furnaces.

In 2023’s GHG emissions footprint, Scope 1 was expanded to include secondary fuel data from gas-powered equipment and on-site generators, as well as refrigerants.

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2023 Sustainability and Social Impact Report

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29 30 31

In 2023, EQ enhanced its GHG Inventory methodology to include additional energy sources for inclusion in Scope 1 emissions. These new sources of Scope 1 emissions account for 4,450 MT of CO2e, or 65% of Scope 1 emissions in 2023.

Increase can be attributed to expanded occupancy.

Increase can be attributed to expanded occupancy.

Scope 2 accounts for the GHG emissions generated through EQ’s off-site energy procurement from energy that is purchased or otherwise brought into the organizational boundary of the company. This inventory reflects location-based accounting for Scope 2 emissions, which uses the average emission factor of the electricity grid from which our facilities purchase power.

Market-based accounting, which considers the impact of renewable energy purchases, is not included in this report.

In alignment with the GHG Protocol, Scope 3 category 5 represents emissions from the third-party disposal and treatment of waste from EQ’s direct operations and construction projects.

In alignment with the GHG Protocol, Scope 3 category 7 represents emissions from the transportation of employees between their homes and EQ Office worksites.

In alignment with the GHG Protocol, Scope 3 category 13 represents emissions from the operation of assets owned by EQ and leased to other entities.

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Environmental Sustainability

Decarbonization

Energy Efficiency

Renewable Energy

We reduce energy consumption through design, technology and operational strategies. Improving energy efficiency has numerous benefits—from lower energy costs and better environmental outcomes to improved comfort for our building occupants.

Energy reduction and clean energy projects are implemented through a variety of tactics, such as upgrading and installing high-efficiency equipment and appliances like heating and air conditioning systems, LED lighting and solar arrays. The ENERGY STAR Portfolio Manager platform allows us to track, assess and benchmark our current and historic utility consumption for each building. Our Operations team leads day-to-day building management and capital improvement planning while ensuring ENERGY STAR compliance.

In 2023, we carried out a variety of environmental capital improvements across our portfolio,  including: •

Building management system upgrades and installations33

•

High-efficiency equipment and appliance installations

•

Heating, ventilation and air conditioning system upgrades

•

LED lighting upgrades, with new LED lights installed across five properties

•

Modification to energy-efficient elevator cars

Green lease agreements with our customers can also lead to energy and emissions reductions through requirements related to energy management, metering and the purchase of clean energy. In 2023, energy audits conducted at several properties covered 25% of our total square footage.32 2022 and 2023 Energy Consumption

32 33

2022

2023

Year-Over-Year Change

Electricity Consumption (kWh)

349,413,324

331,269,228

-5%

Electricity Intensity (kWh/sf)

15.62

13.41

-14%

Coverage (sf)

23.1 m

24.7 m

Portfolio Coverage (%)

97%

100%

The square footage of properties that conducted energy audits in 2023 equates to about 6,239,000 square feet.

Building management systems, also referred to as building automation systems, are automatic centralized controls of a building’s heating, ventilation and air conditioning (HVAC) systems. This also encompasses energy management systems, whose functionalities expand beyond facility management to forecast and adjust energy demand in a building.

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2023 Sustainability and Social Impact Report

We focus on opportunities to adopt additional renewable energy sources, particularly the feasibility of onsite solar installations and renewable energy credits (RECs).34

6.2MWh

774k+kWh 20–55%

projected solar energy generation at several California assets in our 2023 portfolio

of solar energy generated at EmeryTech, covering 52% of electricity consumption in 2023

53%

97.5m+kWh

of square footage in our portfolio was associated with the procurement of RECs and onsite renewable energy in 2023

procured by RECs in 2023, representing 45% of total electricity consumption from EQ-paid utility bills35

34 35

projected energy load reduction at each building associated with future solar projects

EQ purchases Green-e certified renewable energy credits through a direct utility provider, which procures energy from wind farms across the United States. RECs are procured to cover electricity bills within EQ’s operational control and percentage of electricity consumption covered by RECs refers to EQ paid electricity bills rather than whole building data.

These figures exclude certain tenant and retail spaces which are represented in our whole building energy consumption values.

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Environmental Sustainability

Sustainable Design and Construction We are committed to applying green building practices, reducing embodied carbon through material selection, designing for energy efficiency and implementing features that encourage sustainable behaviors and operations. This includes prioritizing the use of local materials that avoid GHG emissions and benefit local economies through their purchase and installation.

In 2023, 40% of our onsite construction projects used locally sourced materials such as carpet, glass panels, wood, ceiling tiles, laminate sheets, drywall, concrete and more.36 EQ provides Green Construction Guidelines to help property teams evaluate the environmental management practices of prospective vendors before selection. The guidelines cover a variety of sustainable procurement suggestions, such as selecting vendors with recycling policies, implementing energy and water efficiency, choosing local materials and those with lower volatile emissions diverting waste during construction and using native plants and local cultural materials, among others.

Where relevant, we pursue certifications that validate the sustainability performance of our buildings, including LEED. As of the end of 2023, there were 16 LEED certifications across our properties, covering 58% of the square feet in our portfolio.

Sustainable Design and Construction

Using Water Responsibly

Urban Beekeeping

72%

When designing new or renovated spaces, we work to integrate natural elements and preserve existing ecosystems. By incorporating nature into built environments, we create healthier, more sustainable and more human-centered places that respect natural systems.

EQ has brought these nature-based experiences to locations across the US since 2019. Today, we have 20 honeybee hives at 13 EQ locations, supporting approximately one million honeybees that collectively pollinate 151 square miles.

Honey harvested from onsite beehives is shared with customers and employees in local offices, and educational events are hosted throughout the year to help employees and customers learn about the role of pollinators in urban landscapes.

Photo Credit: Jenna Fernandez

of EQ properties have high-efficiency water fixtures, such as low-flow faucets, toilets and urinals37

Photo Credit: Jenna Lynn, Jenna Lynn Photography

Using Water Responsibly Heating and cooling systems, restrooms, landscaping and restaurants all consume water in office buildings.

We aim to optimize the use, treatment and disposal of water in and around our buildings and infrastructure.

We aim to promote responsible use of natural resources and health and resilience of the environments we occupy.

We continually evaluate opportunities for conservation, such as through efficient landscape design and irrigation.

In 2023, three of our properties representing almost a quarter of our square footage conducted water audits to identify additional opportunities for water savings.38 Also in 2023, several properties completed water conservation upgrades, including occupant sensors for water fixtures, leak detection and flood stop systems, drip and smart irrigation systems and drought-tolerant and low-water landscaping.

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EQ aligns with standards set by the U.S. Green Building Council in LEED v.2009 for the definition of local materials, which includes those sourced or manufactured within 500 miles of the property.

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2023 Sustainability and Social Impact Report

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EQ aligns water reduction initiatives with municipal water efficiency standards through monitoring and reporting at our properties and installing low-flow fixtures throughout our portfolio. For properties undergoing capital improvements, we install lowflow bathroom fixtures wherever feasible.

2022 and 2023 Water Consumption 2022

2023

Year-Over-Year Change

287,788,176

285,198,333

-1%

Water Intensity (gallon/sf)

12.09

11.58

-4%

Coverage (sf)

23.8 m

24.6 m

Porfolio Coverage (%)

99.7%

99.7%

Water Consumption (gallons)

High-efficiency water fixtures are associated with 26 out of 36 properties, representing 84% of square feet within our 2023 portfolio.

Water audits were conducted at 21% of the square footage in our 2023 portfolio, which equates to about 5,148,000 sf.

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Environmental Sustainability

Waste Reduction and Recycling

Waste Reduction, Reuse and Recycling

Waste Reduction and Recycling Our team is committed to increasing waste diversion rates to reduce waste sent to landfills. We do so through recycling, composting, material reuse and donation programs within our direct operations and construction projects.

We conduct regular waste audits, prioritize vendors that support our waste reduction goals and partner with local government entities and customers to ensure we avoid as much waste as possible. In 2023, waste audits conducted at several properties covered 21% of our total square footage.

Recycling Events In keeping with our focus on customer engagement, we continue to provide recycling, educational and community forums. At properties in Atlanta, Boston, Chicago, Denver, Los Angeles, Nashville, New York, Orange County, San Diego, San Francisco and Seattle, we held recycling events that collected more than 35 tons of furniture and other goods for repurposing and recycling. We collected over 310 tons of electronics for upcycling and safe disposal, as well as other non-traditional waste39 for recycling, a 165% yearover-year increase.

2022 and 2023 Waste Diversion and Recycling

2022

2023

Year-Over-Year Change

Total Waste Recycled (metric tons) 40

4,633

3,114

33% decrease

Total Waste Composted (metric tons)

408

603

48% increase

Total Waste Sent to Landfill (metric tons)

5,769

5,598

3% decrease

Total Waste (metric tons)

10,810

9,316

14% decrease

Waste Diversion Rate (%)

47%

40%

14% decrease

Direct Operations In 2023, we diverted more than 3,700 metric tons of waste from landfills in direct property operations and construction projects—about 40% of our total waste generated in 2023.

Of the total waste generated by our direct operations, 35% was recycled, including e-waste, and 9% was composted.

Spotlight: Donating and Recycling Electronics

We further expanded composting programs in 2023, with 53% of properties providing composting programs, despite the challenges associated with composting in some municipalities. During the year, 603 metric tons of waste were composted, a 48% increase over 2022.

Playa District, a 33-acre campus in Los Angeles composed of office tenants and retail centers, works with Human-I-T to donate electronic items that would otherwise go to waste.

With collections twice a year, Playa District donated more than 13,500 pounds of electronics during 2023.

Human-I-T creates equitable access to opportunity by providing devices, internet access, digital skills training and tech support for in-need communities, while helping businesses divert technology from landfills.

Photo Credits: Kyle Johnson, Bianco Artists

53%

of EQ properties offer composting

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2023 Sustainability and Social Impact Report

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Non-traditional waste includes lamp and battery recycling, Styrofoam collection, paper shredding, paint disposal and others.

Total waste recycled includes waste generated in direct operations and from construction projects. The 33% year-over-year decrease in waste recycled is largely due to a 36% decrease in construction waste generated from 2022 to 2023.

Human-I-T refurbishes donated devices before distributing them to local communities.

Any items that cannot be refurbished are responsibly recycled.

Photo Credit: Daniel Peter, Bianco Artists

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Environmental Sustainability

Construction Waste Reduction We aim to minimize the negative environmental effects of waste from construction by reducing materials and using sustainably produced raw materials. As we consider ways to apply more sustainable innovation and support a circular economy, we diverted 53% of construction waste from landfill in 2023. We worked to ensure waste was recycled consistent with EPA’s guidelines for the Sustainable Management of Construction and Demolition Materials through the diversion of waste from landfill, recycling and reuse of materials when applicable.

Spotlight: Environmental Stewardship at Willis Tower

Spotlight: Environmental Stewardship at Willis Tower Located in the heart of downtown Chicago, Willis Tower stands as the largest building in the US to earn LEED Platinum certification, having implemented numerous environmentally-friendly attributes.

•

Energy Efficiency - overall energy consumption at Willis Tower decreased over 13% since 2022, enabled by state-of-the-art upgrades to the main chiller plant, installation of LED light fixtures and sensors and other initiatives:

•

Modernizing the building automation system and increasing control points to over 80,000, which optimizes automation strategies and allows for real-time consumption monitoring

•

Installing high-efficiency fans and water-cooling media for several existing cooling towers

•

Reconditioning of three existing chillers to increase efficiency by about 30%

•

Implementing adaptive reuse of the secondary riser system improved resiliency of the tenant condenser water system

•

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2023 Sustainability and Social Impact Report

Modernizing the elevator system to improve tenant wait times by 30% and enhance energy efficiency by 28%

•

Renewable Energy - Committed to multi-year procurement of renewable energy credits to cover energy use beyond reductions

•

Water Conservation - Low-flow, high-efficiency sink faucets, toilets and urinals save more than 11 million gallons of water annually

•

Recycling - Paper, plastics, cardboard, metals, electronics, glass, batteries and mercurycontaining light bulbs are collected for recycling, along with a building-wide compost program

•

Biodiversity Support - Installed a “Bird Box” system in 2023 as part of The City Birds Project, which aims to identify bird species flying over the Chicago wilderness region, build biodiversity awareness and inform conservation efforts

These and other initiatives aimed at conserving energy have also reduced operating costs significantly.

Throughout 2023, Willis Tower worked with 13 diverse vendors on these improvements, including womanowned, minority-owned, certified small business and veteran-owned businesses.

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Environmental Sustainability

Energy Excellence Award Thanks to these and other efforts, the Willis Tower Engineering team earned the ComEd 2023 Energy Excellence Award for Commitment to Energy Efficiency and Sustainability. EQ also recognized two employees, Steve Antoniazzi and Tom Padgham, with our Sustainability Leader of the Year Award.

Together, they implemented programming that lowers the building’s electrical consumption from 13MW to 8MW. Steve trained the Willis Tower team on how to best start up and shut down the building to lower consumption during critical hours. Tom designed and delivered an effective adaptive re-use project by creating connections to a secondary condenser system.

Building-Wide Composting Since launching a building-wide compost program in 2023, Willis Tower now composts in over 20 locations throughout the building and collects about 30 metric tons of compostables during the year. The program’s compost was

Construction Waste Reduction

graded 98% clean by a third-party waste management provider.

The property team credits its success with five customer training courses and workshops and the creation and rollout of a composting handbook that includes specific guidance and educational resources. Plans are underway to promote the handbook across EQ properties.

Recycling Willis Tower recycles paper, plastics, cardboard, metals, electronics, glass, batteries and mercurycontaining light bulbs. The building achieved a landfill diversion rate of over 41% in 2023. It also provides staff and customers with opportunities to recycle electronics twice a year. In 2023, a total of 1.9 metric tons of electronics were recycled. A partnership with Green Grease also allowed the building to recycle over 15,800 pounds of cooking oil and grease from onsite restaurants.

Recycling from the building was also graded 95% clean by a third-party waste management provider.

Building Resilience and Risk Management

Building Resilience and Risk Management Doing our part to help ensure the health, safety and security of people who work in or visit our properties is a longstanding priority. This includes proactively identifying, assessing and mitigating potential risks, implementing preventive measures, adhering to defined safety protocols in the event of an emergency and training employees on safety and security at work.

We recognize the critical importance to our customers of working in buildings that unfailingly maintain a healthy and safe environment in a resilient property.

Our building risk management and emergency preparedness plans are informed by regular third-party external audits conducted across our organization and property portfolio, as well as at the individual property level. These audits evaluate overall operational compliance, emergency and safety procedures, energy management, indoor air quality and the conditions of our assets. The plans also consider each property’s unique location and building composition.

We continually optimize building resilience.

Every EQ property has: •

Electronic security system monitoring 24 hours a day, 365 days a year

•

Fire protection systems that meet or exceed code

•

Regular education for customers on emergency response and protective actions for life safety through interactive drills and trainings

•

Emergency preparedness and response protocols, as well as physical security plans

•

Customized crisis communications manuals, regular training with simulation drills and a dedicated agency to assist with customer communications in real time

•

Building-wide intercom customer notification system

•

Preventive maintenance program and team members who are cross-trained in facilities and engineering operations

We continually assess the resilience of our properties by monitoring the following risks: • • • • • • • • • •

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2023 Sustainability and Social Impact Report

Building safety and materials Building preparedness and resilience Land and groundwater pollution Flooding and other natural hazards Energy efficiency Waste management Water supply and efficiency Indoor environmental quality Health and well-being Transportation

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