2021 ESG Report

Taking Action Towards a Brighter Future 2021 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT 1

Contents

TABLE OF CONTENTS

2

2021 ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT

01

Introduction

02 Assembly Row 03 Addressing Climate Change 04 Community Impact 05 Our Team 06 Governance 07

Appendix 3

Introduction IN THIS SECTION

Federal Facts 2021 Accomplishments United Nations Sustainable Development Goals About this Report A Message from our CEO

GRI 2-1 2-2 2-3 2-6 2-7 2-22

4

01 / Introduction 02 / Assembly Row

“Never do we consider ESG a checklist – here, it’s simply good business.”

–DON WOOD / CEO

03 / Addressing Climate Change 04 / Community Impact 05 / Our Team 06 / Governance 07 / Appendix

WILDWOOD SHOPPING CENTER / BETHESDA, MD RIVERFEST / ASSEMBLY ROW

5

Federal Facts Federal is a recognized leader in the ownership, operation, and redevelopment of high-quality retailbased properties located primarily in major coastal markets from Washington, D.C. to Boston, as well as San Francisco and Los Angeles.

Founded in 1962, our mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Our expertise ranges from small neighborhood shopping centers to urban, mixeduse neighborhoods and everything in between.

Our mission is supported by the environmental, social and governance (ESG) principles that we use to manage all aspects of our investments from concept to execution. We believe that ESG not only helps us be a better business but it is our business.

SILICON VALLEY

SOUTHERN CALIFORNIA

PHOENI

310 8.7

employees (55% women/45% men) years average tenure of employees All information as of December 31, 2021

6

01 / Introduction

NEW YORK PHILADELPHIA WASHINGTON D.C.

A

03 / Addressing Climate Change

CHICAGO

02 / Assembly Row

BOSTON

04 / Community Impact

IX

properties

25m

square feet of commercial space

3,369 residential units of average 22 years ownership

06 / Governance

104

05 / Our Team

MIAMI

07 / Appendix 7

2021 Accomplishments

Net Zero $2.3 billion projected to be invested in LEED certified buildings completed and under construction

Achieved LEED Gold certification at One Cocowalk

Committed to achieve Net Zero by 2050

39%

Scope 1 & 2 GHG Emissions Reduction since 2019 Green Lease Leader Gold since 2018

Achieved GRESB 4 Star Rating

8

Best Places to Work Globe Street Real Estate Forum

Assembly Row 2022 Best New Commercial Development in Boston

02 / Assembly Row 03 / Addressing Climate Change

Federal’s ESG efforts are guided by the United Nations Sustainable Development Goals (UNSDGs). We have focused our efforts on the specific UNSDGs where our business can have the most impact, and our employees advance these goals through the valuable work we do every day.

01 / Introduction

United Nations Sustainable Development Goals

04 / Community Impact 07 / Appendix

We have aligned this report with the Global Reporting Initiative (GRI) and are providing additional disclosures in alignment with the Sustainability Accounting Standards Board (SASB) and the Taskforce on Climate-Related Financial Disclosures (TCFD).

06 / Governance

This report is the primary way in which we convey to our stakeholders our commitment and approach to environmental, social, and governance (ESG) matters; it also supplements information included in our Annual Report/Form 10-K and our Proxy Statement, both of which are available on our website.

05 / Our Team

About This Report

9

A Message from our CEO At Federal, ESG is embedded into every action and starts from the ground up. From investing and developing our properties to inspiring our communities and employees, ESG is an essential part of our commitment to long-term growth and value creation. Never do we consider ESG a checklist – here, it’s simply good business.

We know from experience that taking a longterm view of growth requires that we develop and maintain a deep connection to the people, becoming a part of the fabric of the communities we support. It means creating places that meet the specific needs of surrounding neighborhoods – and continuing to reinvent those places over decades as those needs evolve. It means thinking about sustainable design long before the first blueprint is drawn up and constantly looking for innovative ways to conserve resources and minimize the environmental footprint of our properties. Finally, it means investing in the most precious resource of all – our people – and ensuring we attract and retain the best talent by creating a culture that values communication and collaboration.

Our holistic approach to ESG began long before the term was recognized. As far back as the 1990s, we were redeveloping our properties to include outdoor gathering places and using those areas to host community events. In 2008, we established a GreenBox™ standard for building out tenant spaces in a way that minimized environmental impact. In 2010, we were one of the first real estate companies to invest in installing rooftop solar. In 2012, we earned our first LEED certification and now are approaching $2.3 billion dollars invested in LEED buildings. Through these and other actions, we 10

continue to strengthen our alignment with the United Nations Sustainable Development Goals as we work to support broader societal objectives associated with our core business.

It would be an understatement to say that the last two years have challenged all of us in ways that we could not have imagined as we entered a new decade. I firmly believe that our ability to navigate through these unprecedented times is a testament to the inherent sustainability and resilience of our company. Today, we remain focused on our growth strategy and positioning our business for future success, including enhancing the resilience of our portfolio and focusing on the transition to a low carbon economy over the short and long term.

Key to this success is our unwavering commitment to investing in our communities and people. As you look across our portfolio today, you can see the elements of this ESG strategy and objectives come to life in so many of our properties, none more so than Assembly Row in Somerville, Massachusetts.

This vibrant property touches on everything that is encompassed in the term ESG. It has transformed and uplifted the local community in every sense and reflects not only how we invest–but why we invest. Ultimately, we believe that good financial investments can also serve a greater societal good.

On the following pages, I invite you to learn more about Assembly Row and our broader ESG initiatives that are underpinned by more than six decades of proven history in delivering results. This includes 54 years of consecutive dividend increases –the single longest annual dividend growth record among all REITs. To our Federal family of more than 300 employees, thank you for the incredible work you do to uphold our values and keep ESG at the heart of our mission.

To all of our stakeholders, I thank you for your ongoing support, and look forward to keeping you apprised of our progress as we continue to work together to create sustainable growth for many more years to come.

–DON WOOD Chief Executive Officer

01 / Introduction 02 / Assembly Row 03 / Addressing Climate Change 04 / Community Impact

ESG in the words of our CEO

05 / Our Team

$4.28*

54 consecutive years of increased dividends.

06 / Governance

$0.12*

*4Q annualized dividend per share

54 YEAR CAGR 7%

2021

07 / Appendix

1967

11

Assembly Row Transformation of Assembly Row Restoring Natural Resources

IN THIS SECTION

Improving Access and Transportation Sustainable Economic Impact Connecting the Community Championing Sustainable Design and Development Showcasing Local Art

GRI 2-29 304-1 304-2 413-1

12

01 / Introduction 02 / Assembly Row

Assembly Row–where ESG meets good business for the benefit of all stakeholders

03 / Addressing Climate Change 04 / Community Impact 05 / Our Team 06 / Governance 07 / Appendix

ASSEMBLY ROW / SOMERVILLE, MA RIVERFEST / ASSEMBLY ROW

13

Transformation of Assembly Row 2005 The site was an unproductive, underutilized, environmentally contaminated former industrial site in an urban renewal district with no clear path for a productive future.

TODAY Assembly Row is an economically productive neighborhood with its own T-stop that includes retailers, restaurants, apartments, condominiums, office and a hotel, and is the largest generator of real estate tax revenue in the City of Somerville.

Restoring Natural Resources 2005 Highly contaminated from decades of use for multiple industrial purposes, the site was unable to economically contribute to the community and the Mystic River was unusable after years of contamination from untreated sewage spilling into the river.

TODAY Significant investment in on-site environmental remediation, clean-up of the Mystic River, and improved infrastructure provided the foundation for rejuvenation of the site and local marine species.

14

2005 Improving Access and Transportation 2005 No public transit access and limited road access hindered economic development of the site.

TODAY Collaboration with all levels of government and the transit authority led to: - First new T-stop in nearly 30 years - New road infrastructure for better connection to the City of Somerville - Creation of transportation management association to promote sustainable transportation solutions to reduce traffic and enhance the quality of life, accessibility and economic vitality of the greater Assembly Square area.

03 / Addressing Climate Change

”

02 / Assembly Row

Joseph A. Curtatone Mayor of Somerville 2004-2022

01 / Introduction

“If you had traveled in time from 10 years ago and arrived in Assembly today, you would not believe your eyes. I have long believed that in bringing people together, we can drive real and sustainable change - and that is exactly what Assembly Row has done for our City of Somerville. Through tremendous community partnership, Federal Realty Investment Trust has created an economic growth engine, elevating the quality of life for our people, while still maintaining a neighborhood feel that is uniquely Somerville. The positive impact of Assembly Row has been nothing short of transformative and will continue to be felt by many generations of local residents to come.”

04 / Community Impact 05 / Our Team 06 / Governance

Today

07 / Appendix 15

Sustainable Economic Impact

AFFORDABLE HOUSING INVESTMENT

$55M

CURRENT FULL AND PART-TIME JOBS

15K ANNUAL PROPERTY TAX REVENUE GENERATAED

$16M TOTAL PUBLIC AND PRIVATE INVESTMENT

$1.6B 2005

The transformation of Assembly Row into an economic engine for the City of Somerville has positively benefited state and local government, the residents of Somerville and our shareholders and will have lasting positive impacts for decades to come.

Doing the right things to support environmental and social initiatives can be a smart and profitable financial investment.

TODAY

AVERAGE HH INCOME

The Future

$86,000 $129,000 AVERAGE HOME VALUE

$307,000 $834,000 POPULATION

White

71% 58% Minority

29% 42% Demographics within 3-mile radius based on ESRI (2005) and PopStats (Today)

16

Assembly is poised to become the newest cluster in Greater Boston’s thriving life sciences hub with more than $1 billion in investment currently planned within the 1-mile area around Assembly Row.

01 / Introduction

ASSEMBLY ROW / SOMERVILLE, MA

02 / Assembly Row 03 / Addressing Climate Change

04 / Community Impact 05 / Our Team

06 / Governance

07 / Appendix

17

ASSEMBLY ROW / SOMERVILLE, MA

18

01 / Introduction

Connecting the Community

06 / Governance

The property is home to two colonies of Italian honeybees. Located on a green roof of The Row Hotel, the harvested honey is incorporated into the hotel’s menu, while the beehives serve as data points that contribute to scientific research that will improve the health and safety of bees nationwide.

05 / Our Team

We also focus on sustainable design in the buildout of tenant spaces by working with our tenants to implement our Green Box standards which provide a path to minimizing environmental impacts. Several of our tenants have been recognized with LEED certifications for the buildout of their stores with one tenant achieving a LEED Platinum certification.

The Buzz on Assembly’s Smallest Residents

04 / Community Impact

At Assembly, we prioritize energy efficient design, incorporate green and white roofs, use recycled and regionally sourced materials, reuse materials where possible, and benefit from local labor. All of our fully owned mixed-use buildings have achieved or are expected to achieve on completion LEED Gold certification.

SPOTLIGHT

03 / Addressing Climate Change

Championing Sustainable Design and Development

The annual Riverfest event draws more than 10,000 visitors annually to Baxter Park for live music, family-friendly activities and fireworks over the Mystic River.

02 / Assembly Row

Assembly is more than the sum of its parts. Its many outdoor living room spaces and more than 100 events annually make it a community gathering place where people can relax and recharge. The bike paths, playground and amphitheater of the renovated Baxter Park along the Mystic River provide a range of health and well-being activities such as yoga in the park, live concerts, outdoor movies, co-ed recreational sports, craft fairs and boating.

07 / Appendix 19

Showcasing Local Art With temporary and permanent art installations, art fairs, walking tours and exhibitions throughout the property, Assembly showcases the wealth of talented artists and makers that call Somerville home.

SPOTLIGHT

Turning Construction into Public Art Flower sculptures transformed areas under construction into an art playground. The work was designed and fabricated by the 3D Design Studio at Artists For Humanity (AFH), an organization that provides under-resourced urban youth with the keys to self-sufficiency through paid employment in art and design. At AFH, teens and artist/designer mentors work collaboratively on commissioned jobs.

20

“The Conversation,” a six-story-high LED canvas designed to host changeable artwork, serves as a platform where artistic presence and vision can be seen and realized at an entirely new scale in the city of Somerville.

01 / Introduction 02 / Assembly Row 03 / Addressing Climate Change

“The Dreamer,” by renowned street artist Marka27, depicts a young girl reaching for nature as a reminder to stay young at heart while the collage elements are an ode to the diversity found at Assembly Row.

04 / Community Impact 05 / Our Team 06 / Governance 07 / Appendix

ArtAssembled is an art space project created in partnership with the Somerville Arts Festival that fosters an on-site community of visual and performing artists.

21

Addressing Climate Change Greenhouse Gas Emissions & Energy Efficiency

IN THIS SECTION

Sustainable Investments Biodiversity Water Waste TCFD

GRI 2-22 201-2 302-1 302-2 302-3 302-4 303-5 304-1 304-2 305-1 305-2 305-3 305-5 306-3 306-4 306-5

22

01 / Introduction 02 / Assembly Row 03 / Addressing Climate Change

For our more than 60-year history, our business strategy for operating and investing in real estate has focused on preserving and improving the value and resiliency of our assets over the long-term.

04 / Community Impact 05 / Our Team 06 / Governance 07 / Appendix

AZALEA / SOUTH GATE, CA RIVERFEST / ASSEMBLY ROW

23

Greenhouse Gas Emissions & Energy Efficiency To help us actively manage our total GHG emissions and our energy usage, we have divided our assets into different categories that require different management strategies.

These categories also help keep us laser focused on the totality of our emissions and energy usage and on year-over-year performance without regard to operational anomalies.

THE SHOPS AT HILTON VILLAGE / SCOTTSDALE, AZ

Acquisitions These are stable operating assets that were acquired in 2019 or later and not included in our 2019 baseline.

DELWYN APARTMENTS / BALA CYNWYD, PA

Developments These are entire properties or portions of properties that have been newly delivered or were undergoing significant redevelopment and not included in our 2019 baseline.

GAITHERSBURG SQUARE / GAITHERSBURG, MD

Operating Assets These are stable operating assets that we have owned and operated since at least 2019. These assets are included in our 2019 baseline for our GHG emissions and energy use reduction targets. Operating assets that have been sold have been removed from the 2019 baseline.

24

Operating Assets

Aquisitions

Developments

01 / Introduction

Management Strategies to Reduce Energy Usage and GHG Emissions

• Utilize GreenBox™ requirements to build • Provide tenants with sustainable design and construction guidelines

Stable operating assets

• Include on-site renewables • Procure green power

02 / Assembly Row

tenant spaces

• Utilize LED lighting

• Track historic energy usage and GHG data • Include energy and GHG efficiency measures in operating and capital budgets • Design and build to maximize energy efficiency • Pursue LEED or other certifications • Evaluate embodied carbon of materials

03 / Addressing Climate Change

• Install smart thermostats

04 / Community Impact

*Solar renewable energy credits are sold in some cases

06 / Governance

of electricity used by Federal supplied from solar* or other green sources in 2021

05 / Our Team

60%

07 / Appendix 25

Greenhouse Gas Emissions

Like for Like Sc 19,974 MtCO2e GOAL:

We were able to achieve our Scope 1 and 2 GHG emissions reduction target for our operating assets well ahead of schedule primarily because of our comprehensive green power procurement strategy. We actively enter into supply agreements to purchase our electricity from green power sources in every market where we are able to do so. In 2021 we added 19 properties into new green power supply agreements.

Additionally, we saw improved power generation from our on-site solar and investments made by utility power providers in markets where we do business to add more renewables on their grids.

30%

-3%

reduction by 2025

RESULT:

39% reduction achieved

2019 Scope 1 & 2 Location Based GHG Emissions

Grid Improvements

So

2021 Emissions Information Operating Assets

We anticipate replacing these GHG emissions reduction goals with a commitment to set Science Based Targets by the end of 2022. We have also committed to achieve net zero for our Scope 1 & 2 emissions by 2050.

Scope 1 & 2 Emissions* • Location Based

19,974 MtCO2e

• Market Based

12,284 MtCO2e

Scope 3 Emissions** • Location Based

136,946 MtCO2e

• Market Based

117,585 MtCO2e

*Scope 1 & 2 emissions do not include assets sold in 2021; for absolute m **Scope 3 emissions are partially estimated, and only include utility bas waste generation. See GRI Index for more detailed information on our es redevelopment do not currently include construction related emissions (

26

-3%

12,284 MtCO2e

TENANTS WAS FROM SOLAR* OR OTHER GREEN SOURCES IN 2021

*Solar renewable energy credits are sold in some cases.

olar Power

Green Power Supply Agreements

2021 Scope 1 & 2 Market Based GHG Emissions

560 MtCO2e

2,932 MtCO2e

521 MtCO2e

1,913 MtCO2e

6,470 MtCO2e

9,802 MtCO2e

6,330 MtCO2e

7,283 MtCO2e

07 / Appendix

metrics including assets disposed, please see GRI index sed emissions and do not include emissions associated with stimation process. Emissions calculations for development/ (such as embodied carbon).

06 / Governance

Developments

05 / Our Team

Aquisitions

04 / Community Impact

When building a space, we provide our GreenBoxTM standard. Our GreenBoxTM standards were developed to ensure the fitout of tenant spaces is done in such a way that reduces their overall impact on the environment.

03 / Addressing Climate Change

-33%

60%

OF ELECTRICITY SUPPLIED TO

02 / Assembly Row

Where we supply power directly to our tenants, more than half of that power comes from onsite solar and from our green power purchases.

cope 1 & 2 GHG Emissions

01 / Introduction

Helping to Manage Tenant Emissions

27

THE AVENUE AT WHITE MARSH / BALTIMORE, MD

Energy Efficiency Our primary focus in 2021 was to develop and begin implementation of a multi-year plan to update all of our landlord-controlled common area lighting to high-efficiency LEDs. At this point, 25% of our properties have been fully upgraded and an additional 64% are partially upgraded or in the process of being upgraded. This upgrade project is being funded through a special capital budget allocated by our CEO to ensure the completion of the upgrades as quickly as possible.

28

For our development and redevelopment projects, our teams are focused on energy efficient design and construction.

Considerations for these projects include HVAC design, insulation and glazing choices, use of white or green roofs, utilizing only high-efficiency LED lighting, and requirements for tenants to design and build an energy-efficient space. The benefits of these design efforts will not be realized until the buildings are delivered and begin operating.

Operating Assets LL Controlled Electric consumption

63,642 MWh

Aquisitions

Developments

1,282 MWh

8,549 MWh

01 / Introduction

2021 Electric Consumption

02 / Assembly Row

GOAL:

15% reduction by 2025

2019

Common Area Usage

2021

Common Area Usage

Vacancy Vacancy

RESULT:

2%

reduction achieved

03 / Addressing Climate Change

Like for Like Landlord Controlled Electric Consumption

04 / Community Impact

Outcome

06 / Governance

feet, on average, of additional vacancy in 2021 versus 2019. The electricity used in this additional vacancy offset the reductions we were able to achieve in our common areas.

05 / Our Team 07 / Appendix

Through 2021, we saw a reduction in like for like common area electric consumption of 6%. We expect to see more significant reductions in future years as the benefits of our portfoliowide LED upgrade initiative are realized.

Our overall reduction through 2021 was muted because we had a significant increase in inventory of landlordcontrolled electric consumption as a result of approximately 1 million square

29

BRICK PLAZA / BRICK, NJ

Onsite Renewables Our first onsite solar arrays were fully operational in 2012, and we now have solar arrays on nearly one-quarter of our properties with more in process, all of which are fully owned by Federal.

AT A GLANCE

• 13.6 MW of on-site capacity • Invested $37.7m • 25 properties • Designed to produce enough electricity to power 1,200 homes each year • Highest generating capacity of any other publicly traded shopping center REIT* *Based on publicly available information as of 5/16/2022

30

01 / Introduction

PIKE 7 PLAZA / VIENNA, VA

02 / Assembly Row

550

metric tons avoided emissions in 2021

gallons of gasoline saved in 2021

05 / Our Team

70,000

04 / Community Impact

Throughout our portfolio, we are supporting the transition to a low carbon economy by installing electric vehicle charging stations. We have nearly 300 installed EV charging stations with more than 50 in progress at our properties across the country.

03 / Addressing Climate Change

EV Charging Stations

06 / Governance 07 / Appendix 31

Sustainable Investments We understand that the decisions we make today can have impacts for decades to come, which is why sustainability concepts are embedded in all of our investments.

Sustainability measures must be specifically identified for every investment of more than $1 million. For the acquisition of new operating assets, those considerations must include, at a minimum, climate-related risks and opportunities and potential energy efficiency and water conservation measures that should be factored into the capital plan for that asset.

For investments with construction activity, of any type, we apply general principles and a wide range of sustainability considerations.

LEED CERTIFICATIONS

2.3

$

billion

5

million square feet

Projected investment and building size for projects that have achieved or are expected to achieve LEED certification.

32

Guiding Principles for Development

1.

2.

No greenfield development; prioritize urban revitalization Use GreenBox™ standards for tenant space design and buildout

3.

Prioritize energy and water efficiency as part of an integrative design process

4.

Target LEED Gold certification for all new office developments

5.

Target LEED or other certification on all new residential projects

Building Certifications

ENERGY & WATER • Project-wide LED lighting • White or green roofs • On-site renewable energy • EV charging stations • High-efficiency flush and flow fixtures

MATERIALS • Reuse of materials already on site • Measure and reduce embodied carbon in materials • Divert at least 75% of waste from landfill

1.2 million square feet of operating assets achieved certification as an IREM Certified Sustainable Property.

• Walkability of property to and within site • Community gathering places

We achieved Fitwell certification at our corporate headquarters.

04 / Community Impact

SOCIAL IMPACT

03 / Addressing Climate Change

• Stormwater management

Nearly 80% of the approximately 4.4 million square feet we constructed and delivered over the past 10 years is LEED certified.

02 / Assembly Row

Our commitment to sustainable design and development principles has been verified by third- party certifications.

01 / Introduction

Sustainability Considerations for Development & Redevelopment Activities

• Health and wellness features

Green Globes

06 / Governance

Numerous tenants have been recognized with Green Globes for their design and construction.

05 / Our Team

• Biophilic design

07 / Appendix 33

Biodiversity We believe that real estate investment and development should maintain a deep appreciation for the natural environment, and our on-site activities continue to work to protect local ecosystems.

NO GREENFIELD DEVELOPMENT

Our development activities take place exclusively on contaminated sites or on land that has already been developed. That strategy ensures that we do not disturb natural habitats with our activities and instead enhance those natural habitats through many of the features incorporated into our projects.

BEST BEES

We have bee colonies at multiple properties that not only help repopulate local bee populations and provide fresh honey to people at the property, but also contribute to research for the long-term health of bees given their key role as pollinators.

WATER CONSERVATION

Efforts at our properties around water conservation help to ensure sufficient fresh water.

34

01 / Introduction 02 / Assembly Row

Use of native and drought tolerant landscaping at our properties help local species thrive.

Brick Plaza CASE STUDY

We support local efforts to protect biodiversity through the roof-top farms at some of our properties including the 17,000 square foot Farm at Pike & Rose which is the largest roof-top farm in the Mid-Atlantic.

06 / Governance

LOCAL FARMING

05 / Our Team

These bioretention basins capture and filter stormwater runoff and associated pollutants before they flow into Barnegat Bay, and ultimately the Atlantic Ocean. Brick Plaza now stands as a standard bearer for how progressive solutions can help protect the health of our environment and has become an educational field trip for students to learn about and see interactions within the local ecosystem.

04 / Community Impact

Our renovation of Brick Plaza had to take into account the property’s direct waterway connection to New Jersey’s Barnegat Bay, a vital part of the local ecosystem. We addressed this connection by implementing 18 rain gardens across the property, each anchored by native and drought-tolerant plant material.

03 / Addressing Climate Change

NATIVE LANDSCAPING

07 / Appendix 35

THE AVENUE AT WHITE MARSH / BALTIMORE, MD

Water Reducing our water consumption cuts water-related energy use and carbon emissions while reducing operating costs and improving the resilience of our properties.

Real-time data monitoring, proactive maintenance, and water-efficient fixtures, controls, and landscaping in construction and design requirements are key strategies employed.

We have installed automatic meter readers at about 45% of our properties. These AMR’s read water consumption on 15-minute increments and immediately provide alerts when usage is above normal, so that leaks and other issues can be addressed quickly.

Fairfax Junction CASE STUDY

The installation of automatic meter readers at Fairfax Junction, Virginia alerted us to an excessive amount of water usage flowing through that meter. We were able to quickly locate and repair the issue. We estimated that if that leak had continued throughout the typical billing cycle, we would have wasted nearly 800,000 gallons of water.

36

04 / Community Impact

REUSE OF MATERIALS

03 / Addressing Climate Change

We actively manage our waste streams by using right-sized equipment and coordinating with our tenants. In 2021, we estimate that we diverted 32% of the waste generated on our properties from the landfill. In 2022, we are beginning an audit process to assess our properties on a more granular level to further drive diversion rate improvements. Our focus on managing waste also includes recycling materials on our construction projects, hosting book and clothing bins for donations of used items, and collaborating with local restaurants to reduce food waste.

02 / Assembly Row

Our commitment to reducing our environmental impact also extends to our activities to minimize waste across our operations.

01 / Introduction

Waste

05 / Our Team 07 / Appendix

Federal Realty is the first US Real Estate Investment Trust to utilize Carbon Smart wood in a project. Carbon Smart wood is defined as wood that is sourced from fallen city trees, processed locally, and supports community tree planting.

06 / Governance

Our tenant construction team at San Antonio Center, Mountain View, CA partnered with Cambium Carbon to provide wood elements for tenant’s exterior design by using fallen redwood trees salvaged from Sacramento, CA. The entire process from harvest to installation took place within a 150-mile radius. The project funded the planting and maintenance for 3 years of 100 native trees along the Toby Johnson Trail near where the fallen trees were originally sourced.

37

TCFD

Taskforce on Climate Related Financial Disclosures

Governance Our Board of Trustees, directly and through its Nominating and Corporate Governance Committee, has oversight responsibility for all ESG matters, including climate change risk management.

The Board is provided with quarterly updates on all ESG matters including identified climaterelated risks, and progress towards climaterelated targets. Progress on ESG initiatives and targets are considered by the Board when evaluating bonus payouts for our executive officers responsible for development, oversight and implementation of our ESG programs.

Our CEO is responsible for our ESG efforts with day-to-day management of ESG overseen by our Executive Vice President-General Counsel and our Head of Sustainability, with support from key department heads and an interdisciplinary council of employees representing different functional areas of the company. Climate related risks and opportunities are incorporated into our strategy and decision making on investments, and risk management policies.

38

Physical Risks Current Exposure (1)

Risk

Short Term: 2020-2030 Coastal Flooding - Potential flooding along coastal areas as a result of sea level rise

< 3% of total SF in very high risk area

River Flooding - Potential increase from rivers and streams resulting from change in rainfall conditions

< 3% of total SF in very high risk area

Water Stress - Potential decreases in available water supply resulting from droughts and increases in temperatures

Approximately 13% of Federal Realty

Wildfires - Enhanced risk of wildfires that impact air quality and/or cause increased property damage

≈ 12% of total SF in very high risk are

< 1% of POI in very high risk areas

No history of coastal flooding damag

< 4% of POI in very high risk areas No history of river flooding activity or damage(3)

POI is in regions under Extremely Hi Water Stress ≈ 1% of SF in 100-year flood plain

≈ 11% of POI in very high risk areas

No history of wildfire activity or dama

(1) Total square footage (SF) includes all commercial and residential square footage as of March 31, 2022.

2022 with no increases over time. (2) Modeled average annual loss (MAAL) is an estimate of the annual im the Climanomics model. (3) Determined starting from the earlier of 2000 or the year the property was acq

Transition Risks Regulation

Additional regulations by federal, state and local governments could increase operating costs and require additional capital investment

Reputation

Retail, residential and office tenants have shown increased interest in “green” buildings and failure to satisfy those interests could decrease demand for our space, decrease rental rates or leave us with “stranded assets.”

Long Term: 2040-2100

MAAL < 1% of POI through 2040

MAAL grows to ≈ 1.1% of POI by 2100

We use a combination of publicly available tools and The Climate Service’s Climanomics® software platform to conduct a scenario analysis, to understand the financial risk to the company over time as a result of climate change.

ge

(3)

as

MAAL grows to ≈ 0.5% of POI

2040

by 2100

y’s

MAAL is 0% of POI through

MAAL grows to 0.01% of POI by

igh

2040

2100

eas

MAAL < 0.4% of POI through

MAAL grows to ≈ 0.07% of POI

2040

by 2100

age (3)

Physical and Transition Opportunities

Decreased costs for energy and water through efficiency-focused investments that reduce overall usage or generate on-site power

Markets

Competitive advantage of properties located in markets where public and private sectors collectively focused on improving resilience and addressing climate change

Reputation

Long-standing commitment to addressing climate change enhances reputation which leads to increased demand for our properties and higher valuations

Limited Current and Future Risk Based on the information provided using the FEMA National Risk Index and WRI Aqueduct tools, we do not believe any one of these physical or transition risks poses a material financial risk to the company today, and based on the projected modeled average annual loss generated by the Climanomics platform for each risk, we do not expect to see any material increase in our level of exposure to any of these physical risks over the short-, medium- or long-terms.

07 / Appendix

Lower Operating Costs

06 / Governance

Increased rents as a result of higher demand for our resilient, energy efficient buildings with social components

05 / Our Team

Increased Revenue

04 / Community Impact

Property operating income (POI) is based on total projected property operating income for 2022 as of March 31, mpact to POI as calculated by Climanomics based on 2022 projected POI applying the assumptions underlying quired for properties identified as very high risk for the identified hazard.

We evaluate future transition risks over time using the scenario RCP4.5 which assumes widespread global action on climate change that limits global temperature increases to 2 degrees Celsius. Both scenarios look at exposure in the short-term (20222030), medium-term (2030-2040) and longer term (2040 and beyond). All of the identified physical and transition risks have the potential to decrease our revenue through things such as loss of income, increased operating costs and costs of repair, and increased costs of insurance. They also have the potential to require significant amounts of capital investment for restoration of property damage and required modifications.

03 / Addressing Climate Change

MAAL < 0.15% of POI through

We start by establishing a baseline for which of our assets are most vulnerable to various climaterelated events today using primarily the FEMA National Risk Index and WRI Acqueduct tools.

We then evaluate the potential increase in those physical risks over time using the most conservative scenario, RCP 8.5, which assumes business as usual with no global action on climate change and temperatures rising by 4.2 – 5.4 degrees Celsius.

02 / Assembly Row

as

Medium Term: 2030-2040

Strategy and Risk Exposure

01 / Introduction

Potential Increase in risk (1) (2)

39

40

All Properties Geographic diversity of our portfolio reduces overall impact of any singular risk Most properties located in jurisdictions with more aggressive policies focused on addressing climate change and improving community resiliency Active programs to maintain our properties in good physical condition Active emergency response plans to mitigate the impacts of events that occur Assets located in markets identified by the FEMA National Risk Index with high levels of preparation to anticipate natural disasters, adapt to changing conditions and recover rapidly from disruptions Monitoring and preparing for legislative and regulatory changes at all levels Ongoing tracking and maintenance of utility data to manage usage and cost

Acquisitions

✓ Due diligence evaluation of asset’s resiliency, energy usage and water usage ✓ Climanomics modeling to understand future climate related exposures, under various climate change scenarios ✓ Review current and pending laws and regulations ✓ Incorporate financial impacts of identified issues into our underwriting prior to investment approval Operating Assets

✓ Develop asset level operating plan that addresses identified risks ✓ Develop longer term strategic plans taking into account evolving consumer and tenant preferences

05 / Our Team

✓ Annual evaluation to identify near-term and longer-term physical and transitional risks of all types

04 / Community Impact

✓ Due diligence evaluation of physical condition and environmental site condition

03 / Addressing Climate Change

Maintenance of insurance

02 / Assembly Row

Numerous risk management strategies are used across our portfolio to manage climate related risks.

01 / Introduction

Risk Management

Developments

Take future climate risk and move to decarbonization into account in selection of construction methods, materials and building systems Achieve LEED and other building certifications when feasible Leverage long history of designing and building places that meet consumer and tenant expectations

06 / Governance

Take future climate risk and move to decarbonization into account in design phase

07 / Appendix 41

Community Impact Advancing Social Equity in Real Estate

IN THIS SECTION

Supporting Economic Growth Helping Tenants Thrive Promoting Local Art & Culture Creating Community Experiences Giving for Good

GRI 2-29 413-1

42

01 / Introduction 02 / Assembly Row

To be sustainable over the long term, our properties have to contribute to the economic and social betterment of the communities they serve.

03 / Addressing Climate Change 04 / Community Impact 05 / Our Team 06 / Governance 07 / Appendix

WILLOW LAWN / RICHMOND, VA RIVERFEST / ASSEMBLY ROW

43

WE CARE EVENT AT AZALEA / SOUTHGATE, CA

Advancing Social Equity in Real Estate We value the diversity of our communities and have committed to investing in real estate that enables economic opportunity for underserved and marginalized populations.

JUNETEENTH EVENT AT FREEDOM

Over the past five years, Federal has worked in partnership with Primestor Development, a full-service real estate company focused on economic development in underserved neighborhoods in Southern California.

To further support our efforts to advance social equity in real estate, we have committed an additional $2 million to Primestor’s Urban Vision Fund that is dedicated to investing in projects located in urban, low- and moderateincome, and predominantly Latino markets.

We added Arturo Sneider, co-founder of Primestor, as a full voting member of our Investment Committee to get the benefit of his insights and perspectives on all investments greater than $1 million.

Primestor Partnership Facts

VILLAGE SQUARE / BELL GARDENS, CA

$

$425M

9

Total Properties

Total Investment

1.2M Square Feet

$58K

Median Income*

94%

Ethnic and Racial Minorities*

*Portfolio average within 3-mile radius of each property per Pop Stats as of August 2021.

44

Freedom Plaza

PLAZA IDENTIFY AS HISPANIC

OF WORKERS AT THE PROPERTY

06 / Governance

THREE-MILES OF FREEDOM

05 / Our Team

ARE AREA RESIDENTS

07 / Appendix

85% 65%

OF THE POPULATION WITHIN

04 / Community Impact

Thoughtful cultural programming at the center reflects and honors the Hispanic heritage of the local community. Scholarships co-funded

by Federal, Primestor, and property tenants give area public school children the financial means to attend art school and college.

Center-based jobs boost local employment and provide area residents with the ability to grow with prominent retailers. These activities serve to elevate individuals and the broader community, and provide a foundation for further urban renewal to come.

03 / Addressing Climate Change

Lined with murals created by local artists, the center provides a lively and welcoming atmosphere and has closed the “grocery gap” for surrounding neighborhoods. The area around the property had been designated by the U.S. Department of Agriculture as an “urban food desert” –meaning that there were at least 100 households more than half a mile from the nearest supermarket with no vehicle access. The grocery store at the property now provides local residents with easy access to fresh foods.

02 / Assembly Row

Freedom Plaza is located in the Watts neighborhood of Los Angeles. The shopping center serves as a retail hub for community engagement, economic prosperity and further redevelopment of the Watts area.

01 / Introduction

M PLAZA / LOS ANGELES, CA

SPOTLIGHT

45

BEFORE

Supporting Economic Growth At Federal, our commitment to social responsibility is reflected in how, where and why we invest in our real estate.

Each of our properties brings positive economic impact to local communities through job creation and sales and real estate tax revenue.

Continual reinvestment in our real estate helps to increase those contributions over time, with the economic impact of our investment further magnified in communities where we own multiple properties.

AFTER

Reinvestment with Purpose

Federal often owns properties for decades and continual reinvestment ensures that our places evolve along with the expectations and needs of the communities that rely on them.

Through our reinvestment, we also spur further social and economic development of surrounding buildings and neighborhoods.

46

01 / Introduction

CocoWalk CASE STUDY

From the 60-foot Kapok tree brought to the property from a resident’s yard to the local artwork featured throughout, CocoWalk has reestablished itself as the heart and soul of Coconut Grove and spurred additional investment by neighboring property owners that will benefit the neighborhood for decades to come.

03 / Addressing Climate Change

Today, CocoWalk has a tenant lineup that delivers the types of experiences and services that were previously missing in The Grove and a new LEED Gold certified office building to support the business community.

02 / Assembly Row

Located at the geographic center of Coconut Grove, Florida, CocoWalk had lost its connection with the community, with uninviting architecture and a mall-like tenant line-up.

04 / Community Impact 05 / Our Team 06 / Governance 07 / Appendix 47

Helping Tenants Thrive

SPOTLIGHT

We have achieved a half century of sustainable growth by placing the right tenants in the right properties and partnering with them for success throughout their lease term.

We use our Green Box™ criteria and green lease provisions to support our tenants in designing and building their space to be energyefficient and environmentally savvy, support them through their day-to-day operations with constant communication and provide them opportunities to showcase their business through numerous marketing opportunities. We aim to build long-lasting relationships with each of our tenants and see ourselves as partners in their long-term success.

SPOTLIGHT

Sunday Morning Bakehouse, Pike & Rose Having created a loyal following at the weekly Pike & Rose farmer’s market, avid baker Caroline Yi decided it was time for her next move – opening her own bakery and café at Pike & Rose.

“At first there were unexpected challenges during the build-out of my space that were challenging the opening timeline. The Federal Realty construction and tenant services team helped me get back on track and I was able to speed up the process of opening my space without additional delays.

In addition, the marketing team offered great ideas to kickstart my marketing plan and connected me with a PR professional that made my business start strong!

Caroline Yi Sunday Morning Bakehouse

Supporting Makers of Maryland Makers of Maryland is an online collective that features the works of Maryland artists and creatives.

To help these small artist-driven businesses that were hit hard by the pandemic, we worked with the collective’s founder to create a brick-andmortar space at The AVENUE at White Marsh that would enable more than 70 artists and creatives to showcase and sell their creations.

48

”

01 / Introduction

02 / Assembly Row 03 / Addressing Climate Change

04 / Community Impact 05 / Our Team

06 / Governance

07 / Appendix

49

WILLOW LAWN / RICHMOND, VA

Promoting Local Art & Culture Incorporating local art into our properties makes each property unique to that community, creating a deep connection and sense of pride. Local art at our properties takes many forms.

Sometimes it is integrated into architectural plans and becomes part of a building. Sometimes it takes the form of sculptures and wall murals that can be changed to highlight local artists over time.

Sometimes it takes the shape of event-driven art fairs, exhibitions and art performances for live audiences.

Whatever the context, the creativity and color of local art is used at our properties to encourage visitors to engage in positive conversation and celebrate the culture and diversity that makes their community extraordinary.

50

PLAZA DEL MERCADO / SILVER SPRING, MD

01 / Introduction

02 / Assembly Row

QUINCE ORCHARD / GAITHERSBURG, MD

03 / Addressing Climate Change

04 / Community Impact 05 / Our Team

06 / Governance

07 / Appendix

51

BRICK PLAZA / BRICK, NJ

Creating Community Experiences

Replace all photos

We seek to create a seamless connection between our properties and our communities, and pride ourselves in our ability to create events and programming that appeal to the diverse interests of our valued guests.

SANT

In 2021, we hosted more than 300 events, activations and pop-ups designed to surprise and delight community members of all ages.

WILLOW LAWN / RICHMOND, VA

52

01 / Introduction

02 / Assembly Row

TANA ROW / SAN JOSE, CA

03 / Addressing Climate Change

04 / Community Impact 05 / Our Team

06 / Governance

07 / Appendix

53

Giving for Good

ANNUAL GIVING CAMPAIGN

For more than five decades, we have fostered a deep sense of responsibility to give back in ways that exemplify our values. Our corporate and local philanthropic giving campaigns provide separate, yet important avenues for us to support, and engage with, the communities we serve.

Halloween Trick-or-Treat Drives Nearly 2,000 tickets were sold for Trick-or-Treat events at three Washington D.C. area properties with all proceeds going directly to groups focused on reducing hunger in their local communities.

Supporting Causes Close to the Heart Our 2021 Annual Giving Campaign raised more than $50,000 to support The Natalie Project, a not-for-profit founded by Julie Neward, one of our property managers in Southern California.

The Natalie Project champions healing and systematic change for families with an intellectually or developmentally disabled loved one who has experienced the trauma of sexual abuse.

The cause is personal for Julie, whose younger sister, Natalie, is a survivor of such abuse. The ability to support such a worthwhile cause that is little known and so personal to one of our colleagues led to record participation and giving by our employees.

54

Through our Step Up with Federal program, we partner with Givhero to encourage employees to turn their daily step count into dollars donated by Federal to charitable causes.

This annual charity program lines Assembly Row in Somerville, MA, with 12- foot Christmas trees, each decorated by a local nonprofit. Throughout December, shoppers are encouraged to vote for their favorite trees to determine which nonprofit will be awarded our “People’s Choice” award of $2,500.

A Judges’ panel also appoints a $2,500 donation, with remining charities each receiving a $500 participation donation.

02 / Assembly Row

Deck the Cause

01 / Introduction

Step Up with Federal

03 / Addressing Climate Change 05 / Our Team

At a local level, our property teams work closely with surrounding communities to identify emerging areas of need and to determine how best to meet them. In 2021, our local giving campaigns included toy and food drives for local non-profits as well as a number of seasonal events designed to support those in need at a grassroots level.

04 / Community Impact

Community Giving

06 / Governance 07 / Appendix 55

Our Team Federal’s People

IN THIS SECTION

Developing Industry-Leading Talent Celebrating Individual Success Rewarding our Employees Cultivating Diversity, Equity, and Inclusion Promoting Health, Safety and Well-Being

GRI 201-3 401-1 401-2 401-3 403-9 403-10 404-1 404-2 404-3 406-1

56

01 / Introduction 02 / Assembly Row

Our workforce is family– we want our people to feel like Federal is home.

03 / Addressing Climate Change 04 / Community Impact 05 / Our Team 06 / Governance 07 / Appendix

RELATIVES WHO WORK AT FEDERAL / NORTH BETHESDA, MD RIVERFEST / ASSEMBLY ROW

57

CORPORATE HEADQUARTERS / NORTH BETHESDA, MD

Federal’s People We can create exceptional places because we have exceptional people. With a team of just over 300 employees, the contribution of every person is critical to driving our success.

It all starts with company culture. We are committed to ensuring that our people feel supported, challenged and empowered each day and have experiences that help them thrive both personally and professionally.

Our culture is underpinned by open and frequent communication of what is happening throughout the company. It starts with our CEO’s in-person meeting with all new employees that then provides them with the opportunity to hear about the vision of the company directly from the top. It continues with our quarterly company-wide meetings where we provide business updates and have employees present on interesting work they are doing in various areas of the company. Ensuring our team is well-informed on key actions and the strategic direction of the company is key in keeping our employees fully engaged.

EXCELLENCE

ACCOUNTA

Be Outstanding

Own

• Strive to be best in class

• Do wha going t

• Embrace change • Be determined to succeed

• Take ow work qu

• Take pri achieve

• Be acco what yo

58

01 / Introduction 04 / Community Impact

FEDERAL CORE VALUES

TABILITY

at you say you’re to do

ide in team ements

ountable for ou do

INNOVATION

Make Us Proud

Be Progressive

• Always do the right thing

• Innovate and challenge the norm

• Be trustworthy, fair and respectful

• Be creative

• Value diversity in all respects

• Take smart risks

• Value what makes us

• Learn from setbacks

all unique

06 / Governance

wnership of your uality

INTEGRITY

05 / Our Team

n It

03 / Addressing Climate Change

Average Years of Tenure

02 / Assembly Row

8.7

07 / Appendix 59

What do people like most about the company?

autonomy respectful

”

challenging trust pride teamwork co-workers family culture environment –2022 engagement survey

60

”

RIVERFEST / ASSEMBLY ROW

01 / Introduction

SPOTLIGHT

39 Years with Federal Francis Ryan, our most senior property engineer located in Northern Virginia, is our longest serving employee, having spent almost four decades with the company.

In honor of his outstanding service to the company, we named a conference room after Francis in our corporate headquarters.

Growing with Federal

– Pat Dillon, Vice President of Construction

07 / Appendix

I began my career with Federal in 1996 as an administrative assistant and, over time, moved into property management, tenant coordination and then construction. Today, I am the Vice President of Construction for our East Coast properties. Not only have I had an amazing opportunity to grow my career but I was also fortunate enough to have met my wife here at Federal. I love being in the position now to mentor newer members of the Federal team to help them enjoy the same kind of growth and fulfillment that I’ve been able to find over my 25+ years at Federal.

06 / Governance

We actively encourage self-directed training through our tuition reimbursement program and our “Learn at Federal” training platform.

We also offer employees time and expense reimbursement to participate in and present at industry-related educational seminars.

SPOTLIGHT

05 / Our Team

We have a culture of mentorship, with senior team members taking an active role in the career development of more junior colleagues, both within their own teams and across the company. These practical experiences prepare our team to quickly assume roles with higher levels of responsibility. In 2021, we were able to recognize the achievements of our team by promoting 15% of our employees into positions with new challenges and greater responsibilities.

04 / Community Impact

From day one, new team members are given exposure to our leadership team and encouraged to ask questions. More junior team members are also encouraged to present new ideas to more senior colleagues as well as our Board of Trustees.

03 / Addressing Climate Change

Attracting, retaining and developing the best talent is key to driving results and long-term value. That’s why we provide every employee, at every level, the opportunity to innovate, contribute to new ideas and challenge us to think outside the box.

02 / Assembly Row

Developing Industry-Leading Talent

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CORPORATE HEADQUARTERS / NORTH BETHESDA, MD

Celebrating Individual Success Our longstanding awards programs are an important means of celebrating our employees’ accomplishments and ensuring that they feel seen, heard and valued.

The quarterly “Find A Better Way Award” recognizes employee success aligned with Federal’s Innovation value. Since the award was created in 2008, winners have come from every department, in every office and are recognized for developing new ways to generate revenue and improve operations. Winners are honored at our quarterly employee meetings and receive a $2,500 gift card plus a recognition plaque.

Federal’s annual “years of service awards” event recognizes every employee who has celebrated a milestone anniversary and provides them with an opportunity to make personal remarks to the whole company. In addition to a financial award, each employee who has reached a milestone receives a recognition certificate that includes a personal note from our CEO. There is no better measure of the passion our team has for the company than listening to the stories of those celebrating a major service anniversary describe their experiences at Federal with their work family. There is also no better measure of our culture than listening to our CEO introduce almost every recipient with a personal story of his own experience working with them during their tenure at the company.

62

06 / Governance 07 / Appendix

We also used 2021 to thank our teams for their extraordinary efforts throughout the pandemic by giving every employee, other than our CEO, a one-time supplemental bonus. Acknowledging extraordinary efforts through such an extraordinary time was the right thing to do.

05 / Our Team

We also offer company-wide flexible work arrangements to help our employees better meet business, family and personal needs. Department managers and office leaders were given the autonomy to establish their own policies around flexible work arrangements for the employees in their departments and offices. They know their employees best and are in the best position to determine the right balance for their teams.

04 / Community Impact

Employees also enjoy perks such as free parking at our offices, commuter benefits, exclusive discounts for many of our retail tenants and housing accommodations at our residential projects. Other added benefits include free breakfast Wednesday, social events and casual office dress every day to help contribute to engagement and positive morale.

03 / Addressing Climate Change

Federal provides competitive compensation through base salary, annual bonus and stock awards. We also provide a wide range of benefits to our employees, including medical, dental and vision insurance, company-matching contributions to 401K retirement savings plans, employee assistance programs and generous paid time off.

02 / Assembly Row

We do not offer average benefits, because Federal is not an average workplace. It’s the little things that foster culture and allow people to succeed.

01 / Introduction

Rewarding Our Employees

63

CORPORATE HEADQUARTERS / NORTH BETHESDA, MD

Cultivating Diversity, Equity and Inclusion Diversity, equity and inclusion is not a target to be reached. For Federal, it’s a fundamental way of approaching our business. We long ago recognized and continue to embrace the value of bringing together a team with diverse thoughts, perspectives and life experiences and giving everyone a meaningful seat at the table.

64

The concepts of diversity, equity and inclusion are embedded in our core value – Integrity – which is our commitment to being fair and respectful, valuing diversity in all respects and embracing what makes each of us unique.

02 / Assembly Row

1988

One or more female senior executives

1995

One or more female trustees

At least 1/3 female non-management trustees

2007

At least one minority trustee

90%

Women

96%

Ethnic/racial minorities

06 / Governance

Overall

05 / Our Team

92%

04 / Community Impact

Results from 2022 Engagement Survey

03 / Addressing Climate Change

2003

Employees proud to work for the organization:

01 / Introduction

Longstanding Commitment to Diversity

07 / Appendix 65

Office Diversity Reflects Local Community Our headquarters and regional offices are located at our properties so that our team members are part of the communities those properties serve and can bring to their jobs the perspectives of that community. As part of this, we also believe that our workforce diversity should reflect the diversity of the communities we serve.

Championing DEI From the Top Down …

DEI starts with having diversity of thoughts, perspectives and life experiences in our Board of Trustees and senior leadership groups.

Gender BOARD OF TRUSTEES

%

PIKE & ROSE

EXECUTIVE LEADERSHIP INVESTMENT COMMITTEE

North Bethesda, MD – Corporate HQ

Male

MALE FEMALE

WHITE

Bars indicate office population

BLACK ASIAN

Female

Race & Ethnicity

OTHER

15-Minute Drive

BOARD OF TRUSTEES EXECUTIVE LEADERSHIP

%

SANTANA ROW San Jose, CA - West Coast HQ

INVESTMENT COMMITTEE

White

Black

Latino

MALE FEMALE

WHITE

Bars indicate office population

BLACK ASIAN

OTHER

15-Minute Drive

Beyond our own company, we are advocating for DEI within our industry. In 2020, our CEO formalized Federal’s DEI commitment with the signing of the CEO Action and Diversity & Inclusion™ pledge.

Our CEO is also actively involved in industry DEI initiatives as a member of the CEO Council of the Dividends Through Diversity, Equity & Inclusion (DDEI) initiative of the National Association of Real Estate Investment Trusts and as one of three REIT CEOs leading the philanthropy component of DDEI.

66

… And Building DEI from the Bottom Up

2021 Hires

64% WOMEN

47% RACIAL/ETHNIC MINORITIES

06 / Governance 07 / Appendix

”

Our actions yielded success in 2021 with the most diverse group of new hires in recent history for both gender and racial and ethnic minorities.

05 / Our Team

Jennifer Desir, Manager, Talent Acquisition

We monitor the hiring process to ensure that diverse candidates are not disproportionately excluded at any point and are included in final consideration for all positions at the director level and above.

04 / Community Impact

“ I love the approach our company is taking to diversity, equity and inclusion. We’re embedding DE&I into every part of our business for the long term rather than simply developing targets that indicate there might be an end point to the process. The best indicator that our approach is working is that our hiring managers view their diverse hires as a highly qualified candidates, not as diverse candidates they had to hire to meet a goal. I truly believe that what we’re doing positions us well to reshape the future workforce of our company.

03 / Addressing Climate Change

It starts with our hiring process. We have proactively expanded our sources for identifying qualified candidates to include multiple avenues that increase our ability to identify a diverse candidate pool for each open position. Resumes are anonymized to strip away identifiable characteristics that are not related to the job or experiences needed for success in order to remove the potential for unconscious bias when considering a candidate.

02 / Assembly Row

We focus on eliminating internal systemic biases that could impact our ability to continue to diversify our workforce.

01 / Introduction

No “End Point” to DEI

67

CORPORATE HEADQUARTERS / NORTH BETHESDA, MD

68

06 / Governance

We prioritize the health of our employees by offering benefits and activities that promote their physical, financial and mental well-being. Our annual week-long health fair that offers employees access to basic health screening tests, free flu shots, individual sessions with a certified financial planner, and other health and overall wellness

We operate our properties in accordance with Occupational Health and Safety Act guidelines and site-specific safety and maintenance policies.

We have emergency preparedness plans for our properties and offices and provide regular certification in CPR to employee volunteers who serve on our Emergency Action Committees for our offices.

05 / Our Team

At Federal, we understand that health, safety and well-being goes hand in hand with maintaining a motivated and productive workforce.

0 workers comp claims in 2021

04 / Community Impact

Promoting Health, Safety and Well-Being

The focus on the health and well-being of our employees also extends to our office environments.

More than 80% of our office-based employees work at one of our mixed-use, walkable properties and more than three-quarters of those employees have offices in are located in buildings that have LEED Gold certification, with all the health and wellness benefits that come with such buildings, including improved lighting and air quality. That, combined with the walkable amenities available to them just outside the office door, has significantly reduced the anxiety of returning to office post-COVID.

03 / Addressing Climate Change

In 2021, we commissioned an experienced thirdparty to review the compensation at all levels of the company in order to determine whether there were any pay inequalities between men and women or among racial and ethnic groups. The analysis completed by the third-party showed that there were no statistically significant differences between similarly situated employees based on gender, race or ethnicity.

Our Step Up with Federal Challenges harness the spirit of friendly competition by creating teams of people that cross departments and offices who compete to see which team takes the most steps during the challenge. Total steps taken by all of the teams are turned into dollars donated by Federal to charitable causes.

02 / Assembly Row

We believe in pay equity and are committed to understanding and maintaining an equitable pay structure within our business as part of our ongoing DEI initiatives.

01 / Introduction

Equal Pay for Equal Work

information. Together with our gym and fitness class reimbursements and one-off events ranging from COVID-19 booster shot clinics to seminars on healthy eating, we provide numerous opportunities for our employees to focus on their individual well-being.

07 / Appendix 69

Governance The Board of Trustees Key Governance Facts Executive Leadership

IN THIS SECTION

Investing Responsibly Holding Ourselves to the Highest Standards Ethics in Our Value Chain Information Security Political Contributions and Activities

GRI 2-9 2-10 2-11 2-12 2-13 2-15 2-16 2-17 2-18 2-23 2-24 2-25 2-27 205-2 205-3 206-1 405-1 415-1 205-3 206-1 405-1 415-1

70

01 / Introduction 02 / Assembly Row

Through good governance, we continue to foster a culture that empowers positive change and drives positive long-term performance.

03 / Addressing Climate Change 04 / Community Impact 05 / Our Team 06 / Governance 07 / Appendix

BOARD OF TRUSTEES RIVERFEST / ASSEMBLY ROW

71

The Board of Trustees Our corporate governance framework is built on the principles of integrity, transparency and accountability, and designed to ensure that our company’s processes and policies align with our values and support our business.

At Federal, corporate governance starts with our Board of Trustees, which has primary responsibility for overseeing the business of our company on behalf of our shareholders and other stakeholders. Under the direction of the Board, our Executive Leadership Team is responsible for developing and executing our strategy and managing the day-to-day operations of our business.

David W. Faeder Non-Executive C

Elizabeth I. Holland Compensation Committee Chair

Anthony P. Nade Trustee

More information about our Board, Trustees and Executive Leadership Team is available on our website, as are our key governance policies and documents.

8 years

Mark S. Ordan Nominating and Corporate Governance Committee Chair

Average Tenure of Non-Management Trustees

Gail P. Steinel Audit Committee

72

Independent Audit, Compensation, and Nominating Committees

Direct Board oversight of all environmental, social and governance matters Direct Board oversight of cyber security and data protection matters

Nicole Y. Lamb-Hale Trustee

Annual Board and individual Trustee evaluations Shareholder approval required to classify the Board Proxy access for shareholders Pay-for-performance compensation philosophy Prohibition on hedging and pledging our stock Robust stock ownership requirements for Trustees and senior management No poison pill

Don Wood Trustee and CEO

05 / Our Team

Clawback policy in place

04 / Community Impact

Majority voting in uncontested elections

er

06 / Governance 07 / Appendix

e Chair

Direct Board oversight of human resources policies and strategies

03 / Addressing Climate Change

Independent non-executive chairman of the Board since 2003

r Chairman of the Board

02 / Assembly Row

Annual election of all Trustees

01 / Introduction

Key Governance Facts

73

Executive Leadership

20

Years Average Tenure of Executive Leadership

JAN SWEETNAM Executive Vice President, Western Region President DAN GUGLIELMONE Executive Vice President, Chief Financial Officer and Treasurer

74

DAWN BECKER Executive Vice President, General Counsel and Secretary

DON WOOD Chief Executive Officer

JEFF BERKES President and Chief Operating Officer

WENDY SEHER Executive Vice President, Eastern Region President

Our eight-person committee is comprised of our CEO, President and COO, CFO, General Counsel, our regional presidents, our SVP of acquisitions, and Arturo Sneider, president of Primestor, with each person having one equal vote.

0 Code of Ethics Violations 0 Calls to Whistleblowers Hotline

06 / Governance 07 / Appendix

Integrity is one of Federal’s four core values, reflecting an expectation of the highest ethical behavior from our company, including our trustees, employees and other representatives in all aspects of our business.

0 Code of Conduct Violations

05 / Our Team

Holding Ourselves to the Highest Standards

Zero Violations in 2021

04 / Community Impact

The diversity of our Investment Committee members and their respective experiences and disciplines provides a full range of relevant considerations for each investment decision. Investments approved by the Investment Committee that exceed certain size thresholds must be submitted to the full Board for approval. The supporting package that is prepared for review and consideration by the Investment Committee and/or the Board includes a description of the request, detailed financial analysis, the ESG considerations related to the request, and an evaluation of major risks and potential opportunities.

Employees and other parties with whom we do business can use our whistleblower hotline to anonymously report any violations of the Code of Conduct, Code of Ethics or any other behavior that may not be appropriate. Our General Counsel has direct oversight responsibility for ensuring compliance with the Code of Conduct and Code of Ethics and reports directly to the chair of the Board’s Audit Committee on any violations.

03 / Addressing Climate Change

All proposed capital investments in excess of $1 million, including acquisitions, developments, redevelopments, and leasing capital, as well as all dispositions, are presented to our internal Investment Committee for review and approval.

An additional Code of Ethics governs our most senior officers in relation to professional integrity and appropriate controls with respect to all of our financial reporting. Each year, our senior officers acknowledge their agreement to be bound by that Code of Ethics.

02 / Assembly Row

We are deeply committed to ensuring that our investments are made in the best interests of the business, our shareholders and our many stakeholders.

01 / Introduction

Investing Responsibly

Our Board has adopted a Code of Conduct that applies to every trustee and employee and addresses topics such as conflicts of interest, prohibition on bribery, fair dealing with third parties, and protection of Federal’s assets. In 2021, all our employees confirmed their commitment to the principles of the Code of Conduct.

75

Ethics in Our Value Chain We expect our vendors, suppliers, contractors, and consultants to act with the highest degree of integrity in their own businesses as they work to support the growth of ours.

We have implemented a separate code of conduct for these groups that specifically lays out our expectations for their general business practices, their policies towards working conditions, human rights and environmental impact. The policies provide information for how to report violations, including the ability to report anonymously using our whistleblower hotline.

Information Security Just as we seek to protect our physical assets, we believe in implementing strong information and cyber security measures to secure all digital assets.

The Audit Committee of our Board oversees the risk management processes relating to cyber security with management responsibility falling under our Executive Vice President-General Counsel and our Chief Information Officer. Every quarter, management discusses with the Audit Committee all aspects of our overall cyber strategy including an identification of the company’s cyber

76

risks, actions we have taken and are planning to take to mitigate those risks, whether we experienced any breaches or other intrusions into our systems in the last quarter and trends we are seeing develop around cyber security matters.

Our information systems are designed to support our overall business strategy and to allow our employees to work seamlessly and securely whether within our offices or elsewhere. These systems are essential to our business operations and we focus on maintaining the security and integrity of these systems in order to mitigate the risk of these systems being breached or compromised in any way.

The potential risks to our systems are evaluated on a continual basis in the context of the impact a breach of these systems could have on each of the key business function(s) it supports with a deeper review at least quarterly done with the assistance of a third party consulting firm that serves as our chief information security officer. Potential risks are identified with senior management and evaluated together with remediation alternatives. Remediation alternatives include, among other things, activities to prevent, detect and minimize the impact of any breaches as well as business continuity, and recovery plans in the event a breach occurs. We also maintain cyber insurance to cover certain types of cyber-related breaches in order to provide further protection for our company and our assets.

If any breach of our systems is detected, it is immediately reported to our senior management and if it is deemed to be material, to the chair of the Board’s Audit Committee. Immediate action is taken to stop any continuation of the breach, to evaluate the source of the breach and to remediate any vulnerabilities that allowed the breach to occur.

Public disclosure of any breach and the impact of the breach would be made if required.

0 information security breaches in 2021

01 / Introduction

WEST COAST HEADQUARTERS / SAN JOSE, CA

02 / Assembly Row 03 / Addressing Climate Change

04 / Community Impact

05 / Our Team

06 / Governance

07 / Appendix

77

Political Contributions and Activities Federal does not make contributions of any kind to any federal candidates or campaigns. We do, however, periodically authorize contributions to state and local candidates and to promote ballot initiatives that support our business objectives in a particular locality (subject to applicable laws and after obtaining necessary internal approvals).

In addition, Federal belongs to various trade associations that may engage in federal and local lobbying activities. We do not control those activities in any way; they are generally undertaken for the benefit of the industry and all members as a whole. We may, from time to time, lease space in our properties to candidates or campaigns solely for office use with an express prohibition against holding any political activities at the property.

Our employees are encouraged to engage in the political and governmental process; however, with the exception of paid time off to vote, those activities are considered personal, must be undertaken on the employees’ own time, may not involve the use of company resources, and may not interfere with or disrupt our business.

More detail on this topic can be found in our Policy on Political Activities and Contributions.

Available on our website.

78

01 / Introduction

02 / Assembly Row 03 / Addressing Climate Change

04 / Community Impact

05 / Our Team

06 / Governance

07 / Appendix

79

IN THIS SECTION

Appendix

80

Green Bond Proceeds Allocation GRI/SASB Index

01 / Introduction

02 / Assembly Row 03 / Addressing Climate Change

04 / Community Impact

05 / Our Team

06 / Governance

07 / Appendix

81

RIVERFEST / ASSEMBLY ROW

GRANT THORNTON LLP

757 Third Ave., 9th Floor New York, NY 10017-2013 D F

+1 212 599 0100 +1 212 370 4520

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

Management of Federal Realty Investment Trust and Federal Realty OP LP We have examined the management of Federal Realty Investment Trust (the “Trust”) and Federal Realty OP LP (the “Operating Partnership”) and their subsidiaries’ (collectively, the “Company”) assertion regarding Green Bond proceeds, that the net proceeds from the October 8, 2020 issuance of 1.25% Notes Due February 15, 2026 were used to fund, in whole or in part, the Eligible Green Projects as defined in management’s assertion, included on the “Green Bonds Use of Proceeds Statement as of March 31, 2022.” The Company’s management is responsible for its assertion.

Our responsibility is to express an opinion on management’s assertion based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether management’s assertion is fairly stated, in all material respects. An examination involves performing procedures to obtain evidence about management’s assertion. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material misstatement of management’s assertion, whether due to fraud or error. We believe that the evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

The other information included in the Company’s 2021 Corporate Responsibility Report is presented by management of the Company and is not a part of the Company’s assertion. Such information has not been subjected to the procedures applied in the examination engagement and accordingly, we do not express an opinion or provide any assurance on it.

In our opinion, management’s assertion that the net proceeds from the October 8, 2020 issuance of 1.25% Notes Due February 15, 2026 were used to fund, in whole or in part, the Eligible Green Projects, as defined in management’s assertion, included on the “Green Bonds Use of Proceeds Statement as of March 31, 2022” is fairly stated, in all material respects.

New York, New York May 23, 2022

GT.COM

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Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd (GTIL). GTIL and each of its member firms are separate legal entities and are not a worldwide partnership.

01 / Introduction

Federal Realty Investment Trust $400 million 1.25% Notes Due 2026 $ 394,214,221

Net Proceeds from Sale of Notes

04 / Community Impact

“Eligible Green Projects” means (i) investments in acquisitions of buildings; (ii) building developments or redevelopments; (iii) renovations in existing buildings; and (iv) tenant improvement projects, in each case, that have received, or are expected to receive, in the three years prior to the issuance of the notes or during the term of the notes, a LEED Silver, Gold or Platinum certification (or environmentally equivalent successor standards).

03 / Addressing Climate Change

Leadership in Energy and Environmental Design, or LEED, is a voluntary, third party building certification process developed by the U.S. Green Building Council (“USGBC”), a non-profit organization. The USGBC developed the LEED certification process to (i) evaluate the environmental performance from a whole-building perspective over a building’s life cycle, (ii) provide a definitive standard for what constitutes a “green building,” (iii) enhance environmental awareness among architects and building contractors, and (iv) encourage the design and construction of energy-efficient, water-conserving buildings that use sustainable or green resources and materials (see www.usgbc.org for more information).

Federal Realty Investment Trust’s management is responsible for the completeness, accuracy and validity of the Green Bond Use of Proceeds Statement dated March 31, 2022. Management asserts that all of the net proceeds from the October 13, 2020 issuance of 1.25% Notes Due February 15, 2026 were used to fund, in whole or in part, the Eligible Green Projects, as defined below, included on the Green Bonds Use of Proceeds Statement as of March 31, 2022.

02 / Assembly Row

Management’s Assertion Regarding Green Bond Proceeds

05 / Our Team

Green Bond use of proceeds statement as of March 31, 2022 PROJECT LOCATION

LEED

Assembly Row

Somerville, MA

Gold

$ 205,500,000

909 Rose Avenue (retail/office)

Pike & Rose

North Bethesda, MD

Gold

$ 81,966,354

FRT Corporate Headquarters

Pike & Rose

North Bethesda, MD

Gold

$ 1,447,867

Canopy Hotel Building

Pike & Rose

North Bethesda, MD

Silver

$ 98,200,000

Pike & Rose

North Bethesda, MD

Silver

$ 7,100,000

Montaje Building (retail/residential)

PROJECT

LEED PROJECT COSTS

06 / Governance

BUILDING

(retail/residential/hotel)

Total

$ 394,214,221

07 / Appendix

LL Bean Building (retail)

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Statement of Use: Federal Realty Investment Trust has reported following the GRI Index for the period January 1, 2021 through December 31, 2021 GRI 1 Used GRI 1: Foundation 2021 SASB Disclosure Metrics are noted in blue font

DISCLOSURE

RESPONSE

THE ORGANIZATION AND ITS REPORTING PRACTICES 2-1

2-2

Legal name

Federal Realty Investment Trust

Nature of ownership and legal form

Publicly traded real estate investment trust (NYSE:FRT); 2021 Form 10-K pages 4-5 and 30

Headquarters location

909 Rose Avenue, Suite 200, North Bethesda, MD

Countries of operation

Report page 6; 2021 Form 10-K pages 4-5, 20 and 23-28

Entities included in sustainability reporting

2021 Form 10-K page 2

Differences between entities in financial

None

reporting and sustainability reporting

2-3

Approach used to consolidate information

Our properties and subsidiaries are operated as one consolidated business segment with consolidation for financial reporting being determined in accordance with Generally Accepted Accounting Principles (GAAP)

Reporting period and frequency of

January 1, 2021 through December 21, 2021; annually

sustainability reporting Reporting period for financial reporting

January 1, 2021 through December 31, 2021

Publication date of report

June 1, 2022

Contact person for questions

Emily Paciolla, Director of Sustainability; 301-998-8100

2-4

Restatements from previous periods

None

2-5

Process for external assurance

None for this reporting period

ACTIVITIES AND WORKERS 2-6

Report sectors in which we are active

GICS 60 Real Estate

IF-RE-000.A, IF-RE-000.B

Value chain including products, markets, supply chain and downstream entities

We own 104 properties located primarily in major coastal markets of the United States.

Spaces in those properties are provided for long- and short-term contracts for rent by tenants who use space for retail, office or residential purposes. Primary vendors/suppliers include utility providers, insurance companies, firms that provide day-to-day property management/maintenance support; firms that provide professional services such as legal and accounting and firms that provide construction or other services related to property development and redevelopment.

Other relevant business relationships

Secured and unsecured lenders and various joint venture partners who own noncontrolling interests in certain of our properties.

Significant changes from prior periods

2021 Form 10-K page 37-38

Total number employees

310 total employees: 171 female (55%); 139 male (45%); regional differences are not material to our operations

Full-time employees

305 full-time employees: 166 female (54%); 139 male (46%)

Part-time employees

5 part-time employees: 5 Female (100%); 0 male (0%)

Methodologies and assumptions

Actual headcount as of December 31, 2021; average from January 1, 2021 through

2-7

December 31, 2021: 309.5 Contextual information

Part-time employees have reduced hours at their election and 67% of those part-time employees are eligible for benefits

Significant fluctuations during/between

None

reporting periods 2-8

Workers who are not employees whose work is controlled by the organization

None

Governance structure including committees

2022 Proxy Statement pages 5-10

GOVERNANCE 2-9 84

2-9

Committees with responsibility for overseeing impact on economy, environment and people

2022 Proxy Statement pages 9-10

Describe composition of highest governing body and its committees

2022 Proxy Statement pages 6-7, 12-13

Nomination and selection of the highest governance body and committees

2022 Proxy Statement pages 11-14

Criteria used for nominating and selecting the highest governance body members

2022 Proxy Statement pages 11-14

2-11

Chair of the highest governance body

2022 Proxy Statement page 6

2-12

Role of the highest governance body/senior executives in developing policies and goals related to sustainable development

2022 Proxy Statement page 4

Describe the role of the highest governance body in overseeing processes to identify and manage impacts on the economy, environment and people

Report pages 38-41, 72-73; 2022 Proxy Statement page 4

2-10

Describe the role of the highest governance body in reviewing the effectiveness of processes and report frequency of this review 2-13

2022 Proxy Statement page 4; periodic review as needed

Delegation of responsibility for managing impacts on economy, environment and people

2022 Proxy Statement page 4, 9-10; ESG Policy pages 4-5

Frequency for senior executives to report to highest governing body on impacts to economy, environment and people

Report pages 38-41

Report whether highest governance body is responsible for reviewing and approving the reported information; describe process for review and approval

Our Board of Trustees reviews and approve our corporate responsibility

Describe process for highest governing body to prevent/mitigate conflicts of interest

Report pages 72-78; Corporate Governance

Conflicts disclosed to stakeholders

2022 Proxy Statement pages 7, 11, 41-42

Whether critical concerns are communicated to highest governing body

2022 Proxy Statement page 8

Number and nature of critical concerns communicated during reporting period

None

2-17

Measures to advance knowledge of highest governance body on sustainable development

Report Page 38-41

2-18

Process for evaluating performance of the highest governance body in overseeing management of impacts on the economy, environment and people

2022 Proxy Statement page 10

Whether evaluations are independent and frequency

2022 Proxy Statement page 10

Actions taken in response to evaluations

2022 Proxy Statement page 10

Describe the remuneration policies for members of the highest governance body and senior executives

2022 Proxy Statement pages 18, 19-38

Describe how remuneration policies relate to objectives and performance in relation to managing impacts on economy, environment and people

2022 Proxy Statement pages 18, 19-38

Describe process to design remuneration policies and determine remuneration

2022 Proxy Statement pages 19-32

Report results of votes of shareholders on remuneration policies and proposals

Form 8-K filed May 5, 2022

Ratio of total annual compensation of highest-paid individual to median annual compensation for all employees

2022 Proxy Statement page 38

2-14

2-15

2-16

2-19

2-20

2-21

report and quarterly SEC reports prior to release/filing.

Guidelines

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DISCLOSURE

RESPONSE

STRATEGIES, POLICIES, AND PRACTICES 2-22

Statement about relevance of sustainable development

Entire Report; more specifically, pages 10, 30-33

Policy commitments for responsible business conduct

Code of Business Conduct, Human Rights Policy, Vendor Code of Conduct

Commitments with respect to Human Rights

Human Rights Policy, Vendor Code of Conduct

Provide links to policy commitments

Code of Business Conduct, Human Rights Policy, Vendor Code of Conduct

Highest level of approval within the organization

Policies were reviewed and approved by our Board of Trustees and a senior executive within the organization

Extent to which policy commitments apply to activities and business relationships

Code of Business Conduct, Human Rights Policy, Vendor Code of Conduct

Describe how policy comments are communicated to workers and other parties

Via external website, contracts, internal website and internal discussions and education

2-24

Describe how policy commitments are embedded for responsible business conduct through activities and business relationships

All employees are required to comply with our policies and procedures and responsibility for enforcing compliance lies at all levels of the organization with specific responsibility depending on the particular group and reporting structure for that group. Employees initiating business relationships are responsible for confirming that the other party operates its business in a reputable manner that is consistent with the quality and reputation of our organization. Internal controls requiring more senior level approvals before entering into contracts that establish our business relationships provide ongoing conversation, education and training on our various commitments.

2-25

Describe commitments to cooperate in remediation of negative impacts

Our primary exposure for negative impacts is environmental contamination at one of our properties arising prior to or during our ownership generally from the operations of one or more tenants who have operated at the property. We provide in all leases various provisions requiring tenants to refrain from activities that could cause environmental contamination and to clean up any contamination they cause. We undertake to remediate any environmental contamination of which we are aware as required under various federal, state and local laws, rules and regulations.

Describe approach to identifying and addressing grievances

We generally become aware of issues through notification from a governmental authority or from our own investigation and testing prior to acquisition of properties and as part of our ongoing operation of our properties. Although matters could proceed through litigation and government enforcement, we typically work with government agencies to resolve issues prior to legal enforcement actions being taken or fines being assessed.

Describe process for remediation of negative impacts

We evaluate properties prior to acquiring them and continually monitor assets we own to identify any potential environmental issues. Remediation of issues identified are included as part of the operating plans for that asset over time.

Describe how organization tracks effectiveness of grievance process and remediation mechanisms

Effectiveness of the grievance mechanisms is demonstrated by receiving a final notice from the applicable governmental authority indicating that remediation has been completed to their satisfaction and the property now meets applicable standards.

2-26

Describe mechanisms for individuals to seek advice on business conduct and raise concerns

For any employee or other person or entity with close contacts in the organization, advice can be sought from and concerns can be raised with either the office of the General Counsel or the Human Resources Department, the primary groups responsible for monitoring compliance with our policies and procedures. Employees as well as outside parties can also call, on an anonymous basis, into our whistleblower hot line with the number for that hot line available in a number of locations internally as well as on our public website. Lastly, issues can also be raised directly with our Board of Trustees using the communication methodology posted on our website and in our public documents.

2-27

Report total number of significant instances of non-compliance with laws, etc.

None

Report monetary value of fines for non-compliance

None

Describe how determine significant instances of non-compliance

Assessment based on severity and financial magnitude of any non-compliance

Report industry associations, etc. in which it participates in a significant role

National Association of Real Estate Investment Trusts (including CEO Council for Diversity); ICSC; Urban Land Institute; Montgomery County Chamber of Commerce

IF-RE-130a.5 2-23

2-28

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DISCLOSURE

RESPONSE

STAKEHOLDER ENGAGEMENT 2-29

Approach to engaging with stakeholders

The interaction with stakeholders varies depending on the stakeholder group and ranges from frequent interpersonal interaction to communication through electronic platforms.

2-30

Report percentage of total employees covered by collective bargaining agreements

0%

Material Topics and Management of Material Topics

Federal Realty regularly touches based with its stakeholders including investors, employees, tenants, shopping center customers, and more to assess material topics. The topics listed below have been identified to be the most material to our business, through the lens of ESG.

MATERIALITY 3-1, 3-2; 3-3

IF-RE-450a.2

Material Topics in Alphabetical Order and references to where management strategy is discussed: - Adherence to ethical business policies and practices: Report pages 75-76; 2022 Proxy statement page 6 - Assessing, and addressing risks posed due to climate change: Report pages 38-41 - Controlling energy cost/use: Report pages 24-33, 38-41 - Health & Safety of employees: Report page 69 - Managing GHG emissions: Report pages 24-27 - Policies and initiatives to promote diversity, equity, and inclusion: Report pages 23-24, 64-67 - Responsible corporate governance practices: Report pages 72-79; 2022 Proxy statement pages 5-6

ECONOMIC PERFORMANCE 201-1

Direct economic value generated and distributed on an accrual basis

2021 Form 10-K pages 32-53

201-2

Risks and opportunities posed by climate change that can generate substantive changes in operations, revenue or expenditure

Report pages 38-41; 2021 Form 10-K pages 12, 15

201-3

Defined benefit plan obligations and other retirement plans

2021 Form 10-K page F-30

ANTI-CORRUPTION 205-2

205-3

Number and percentage of governance body that anti-corruption policies have been communicated to

100%

Number and percentage of employees that anti-corruption policies have been communicated to

100%

Percentage of governance body members received training on anti-corruption

100% of Board of Trustees receive information on Code of Business Conduct

Percentage of employees body members received training on anti-corruption

100% of employees receive training on our Code of Business Conduct

Total number of confirmed incidents of corruption

There were no confirmed incidents of corruption of any type in 2021.

ANTI-COMPETITIVE BEHAVIOR 206-1

Legal actions pending or completed regarding anti-competitive behavior, anti-trust and monopoly practices

There were no pending or completed legal actions in 2021 relating to any type of anti-competitive behavior or violations of anti-trust or monopoly legislation

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DISCLOSURE

RESPONSE

ENERGY 302-1

Energy consumption within the organization

IF-RE-103a.1, IF-RE-130a.2

Total fuel consumption within the organization from non-renewable sources: 634,799 therms Total fuel consumption within the organization from renewable sources: 0 Total electricity consumption: 73,907,195 kWh. Includes all electricity use attributable to Federal in 2021; this is 100% coverage for landlord controlled electric usage. 8% of electricity consumed was supplied by onsite solar arrays owned by Federal Realty (SRECs are sold in some instances) Total electricity sold: 39,747,536 kWh. Includes solar production and grid-purchased electricity that is billed back to tenants in 2021 Total energy consumption within the organization: 92,513,149 kWh. Includes 100% of fuel and electricity usage attributable to Federal in 2021 Statement prepared in consultation with RE Tech Advisors. Conversion factors from EPA eGRID and US Climate Registry

302-2

Energy consumption outside of the organization

Measured energy consumption outside of the organization: 102,923,988 kWh Measured + Estimated energy consumption outside of the organization: 598,293,264kWh Calculated in consultation with RE Tech Advisors in accordance with the GHG Protocol.

Measured energy consumption includes energy purchased by Federal and allocated to tenants as well as aggregate usage data provided by utilities. This represents 17,500,739 Gross SF (51% of total Gross SF) covered.

Estimated energy consumption is estimated energy usage for those spaces where we do not have actual data. Estimates were calculated using the nationally recognized CBECs dataset.

Data was estimated for 16,504,734 Gross SF (49% of total SF).

Conversion factors from EPA eGRID and US Climate Registry

302-3

Energy intensity

2021 FRIT Attributable Electricity intensity: 2.17 kWh/sq ft; 2021 Site Energy Use Intensity: 2.72 kWh/sq ft Intensity metrics calculated using FRIT attributable energy consumption, divided by total gross floor area of Federal’s portfolio Site EUI includes 100% of Scopes 1 and 2 fuel consumption and electricity Intensity metrics include energy consumption within the organization

302-4

Reduction of energy consumption

IF-RE-130a.3

Report pages 28-29; Like for like FRIT attributable electric consumption for assets in operation and owned by Federal Realty at least since January 1, 2019, which represents 86% of the total number of owned assets as of 12/31/2021: - 2019: 65,033,538 kWh - 2020: 61,085,592 kWh - 2021: 63,642,604 kWh

WATER AND EFFLUENTS 303-5

Water consumption

2021 municipally supplied landlord controlled water (including common area and vacant space): 253,761 CCF

304-1

Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

ESG Policy page 11; Report pages 34-35

304-2

Significant impacts of activities, products, and services on biodiversity

ESG Policy page 11; Report pages 34-35; 36% of properties, by asset value, have a LEED or IREM certification obtained by Federal Realty lessening the impact of activities, products, and services on biodiversity

IF-RE-140a.1 BIODIVERSITY

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DISCLOSURE

RESPONSE

EMISSIONS 305-1

Direct (Scope 1) GHG emissions

2021 Scope 1 Greenhouse Gas Emissions: 3,372 MT CO2e; represents 100% data coverage of Scope 1. Calculated in consultation with RE Tech Advisors in accordance with the GHG Protocal Corporate Standard, organizational control method. Emissions factors from EPA eGRID and US Climate Registry.

305-2

Energy indirect (Scope 2) GHG emissions

2021 Scope 2 greenhouse gas emissions: 11,424 MT CO2e; represents 100% data coverage of Scope 2. Calculated in consultation with RE Tech Advisors in accordance with the GHG Protocal Corporate Standard, organizational control method. Emissions factors from EPA eGRID and US Climate Registry.

305-3

Other indirect (Scope 3) GHG emissions

2021 Scope 3 market based emissions: 180,317 MtCo2e Reported Scope 3 includes both measured and estimated tenant emissions, measured Federal Realty Business Travel, estimed Federal Realty Employee Commuting, and Emissions associated with waste generated on our properties.

Calculated in consultation with RE Tech Advisors in accordance with GHG Protocal Corporate Standard, organizational control method. Emissions factors from EPA eGRID and US Climate Registry. Estimates calculated using CBECs data.

305-4

GHG emissions intensity

2021 greenhouse gas emissions intensity: .0004 MtCO2e/sq ft using total portfolio gross floor area. Includes scopes 1 and 2 emissions.

305-5

Reduction of GHG emissions

Report page 32

IF-RE-410a.3

2019 2020 2021

Like for Like Scope 1 & 2 MtCO2e

Absolute Scope 1 & 2 MtCO2e

Location Based 19,974 21,062 20,162

Location Based 22,567 23,662 24,626

Market Based 16,441 15,792 12,284

Market Based 18,772 18,026 14,841

WASTE 306-3, 306-4, 306-5

Waste generated, diverted from disposal, directed to disposal

Report page 37 Total weight of waste generated: 42,437 metric tons Total weight diverted from landfill: 13,701 metric tons Total weight directed to landfill: 28,737 metric tons Diversion rate: 32%

ENVIRONMENTAL COMPLIANCE 307-1

Non-compliance with environmental laws and regulations

Federal is in the process of working with governmental agencies on remediating environmental conditions at our properties that are required to be remediated at this time. We have not identified any non-compliance with environmental laws and/or regulations that must be remediated at this time other than matters which are currently being addressed. We did not incur any fines or non-monetary sanctions for non-compliance with environmental laws or regulations.

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DISCLOSURE

RESPONSE

EMPLOYMENT 401-1

401-2

Number and rate of new employees

New Hires: 45; 29 women (64%) and 16 men (36%); 14 under 30 (31%), 22 between 30-50 (49%) and 9 over 50 (20%)

Number and rate of turnover

Terminations: 44 (32 voluntary and 12 involuntary); 15 women (34%) and 29 men (66%); 5 under 30 (11%), 25 between 30-50 (57%) and 14 over 50 (32%)

Benefits that are standard for full time employees that are not provided to temporary or part-time employees

Report pages 58-69; In addition to providing market-competitive compensation through a base salary and annual bonus, we also provide all of our year-round full- and part-time employees with a wide range of other benefits.

Medical, dental, and vision insurance to support the health and wellbeing of our employees and their families, with different options depending on personal and family needs.

Basic life insurance, accidental death and dismemberment, and short- and long-term disability insurance.

Paid vacation, personal days, sick time, and company holidays to encourage time away from work. Generous leave and accrual policy allows employees to accrue and carry over 320 sick hours and 320 vacation hours each year.

Company-matching contributions to a 401K retirement savings plan for all full- and part-time employees. All employees are automatically enrolled when they join the company.

Paid day off to volunteer at election polls in presidential elections. $15 per hour minimum wage for all year-round full- and part-time employees.

Employee assistance programs to provide help on topics including emotional health, counseling and well-being, work-life balance as well as financial and legal advice.

Flexible spending and health savings accounts to allow employees to pay for certain medical expenses with pre-tax dollars.

An employee stock purchase plan to allow employees a simple way to acquire company stock without commissions.

Discounts on rent at company-owned apartment complexes.

Added benefits like flexible work arrangements, bagel Wednesday, frequent retailer-offered discounts, fitness center reimbursements, casual office dress every day, free parking at our offices, and commuter benefits.

401-3

Parental leave

Federal offers parental leave to birth mothers through short-term disability and accrued paid time off and offers non-birth parents the right to take leave using accrued paid time off.

Generous leave and accrual policy allows employees to accrue and carry over 320 sick hours and 320 vacation hours each year.

Total number of employees entitled to parental leave by gender: 7 men; 7 women Total number of employees that took parental leave by gender: 1 man; 7 women Total number of employees that returned to work after parental leave ended by gender: 1 man; 7 women Total number of employees that returned to work after parental leave ended that were still employed 12 months after their return to work by gender: 0 men; 7 women Return to work and retention rates of employees that took parental leave by gender: 100% men; 100% women

DISCLOSURE

RESPONSE

OCCUPATIONAL HEALTH & SAFETY 403-2

90

Description of process to identify work-related hazards

Federal complies with all applicable laws regarding workplace safety.

Process for workers to report work-related hazards

Employees are encouraged to identify and advise the appropriate person in the office of any potential hazard.

403-2

Description of process to investigate and identify work related hazards

If an issue is identified, Federal works to promptly correct the issue and to cause the problem to be made safe pending a correction. Any injuries are reported to our Human Resources team and to our worker’s compensation insurer.

403-9

Number and rate of fatalities

None

Number and rate of high consequence injuries

None

Number and rate of recordable work related injuries

None

Number of fatalities from work-related ill-health

None

Number of cases of recordable work-related ill health

None

403-10

TRAINING AND EDUCATION 404-1

Average hours of training

All employees are encouraged to participate in both internal and external training opportunities and we make money available on an annual basis to support external training. We know that significant time is spent each year by employees participating in webinars, conferences and other internal/external programs and continuing education opportunities; however, we do not track or ask our employees to track the time they spend each year on these activities. We do not believe that tracking participation in these trainings would increase employee participation or believe there is any added value for our organization or our employees to track participation for the sake of tracking and reporting.

404-2

Type and scope of programs implemented and assistance provided to upgrade employee skills.

Report page 61

404-3

Percentage and total employees who receive regular performance and career development review

All employees are eligible to receive formal written or oral annual performance reviews.

DIVERSITY AND EQUAL OPPORTUNITY 405-1

Percentage of individuals in governance bodies in each diversity category

Board of Trustees: 43% women and 57% men; 100% over 50; 14% diverse Executive Team: 33% women and 67% men; 13% between 30-50 and 87% over 50; 0% diverse Investment Committee: 25% women and 75% men; 100% over 50; 25% diverse

Percentage of employees in each diversity category

Gender: 55% women and 45% men Age: Under 30 - 7%; 30-50 - 56%; over 50 - 37% Diversity: Diverse - 30%; non-diverse - 70%

NON-DISCRIMINATION 406-1

Total number of incidents of discrimination

There were no reported incidents of discrimination in 2021.

LOCAL COMMUNITIES 413-1

Operations with local community engagement, impact assessments and development programs

Report pages 42-54 and ESG Policy page 19

POLITICAL CONTRIBUTIONS 415-1

Political contributions

Report page 78 and Political Contributions Policy

CUSTOMER HEALTH & SAFETY 416-1

Assessment of the health and safety impacts of products and service categories

All of our properties are inspected on a regular basis for potential health and safety violations by both our internal team as well as third parties. Inspections cover all aspects of the properties relating to health and safety including spaces controlled by tenants.

We also regularly monitor the environmental condition of our properties for any potentially dangerous conditions and engage in remediation activities as needed. In any new acquisitions, we also perform detailed inspections of the environmental and physical condition of the asset and incorporate a capital investment plan as part of our acquisition decision to correct any issues that do not meet our standards.

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