54 | REGENCY CENTERS 2020 CORPORATE RESPONSIBILITY REPORT
Sustainability Accounting Standards Board (SASB) Report (continued) Code
Unit of Measure
Management of Tenant Sustainability Impacts IF-RE-410a.1
Percentage of new leases that contain a cost recovery clause for resource efficiency-related capital improvements
100% of our form leases
IF-RE-410a.2 Discussion of approach to measuring incentivizing, and improving sustainability impacts of tenants Our leasing arrangements do not enable us to monitor or directly impact our tenants’ sustainability measures. However, we take every opportunity to engage with them and provide leadership on sustainability. Our form leases are ‘green leases’ and contain a number of clauses that promote sustainability measures including a cost recovery clause for sustainability-related capital improvements. In 2020, we were certified as Green Lease Leaders by the Institute for Market Transformation. We provide all tenants with a Sustainability Guide upon commencement of their lease and this includes tips and advice on energy and water conservation as well as recycling. We know many of our large tenants have sustainability programs and look for opportunities to assist them achieve their goals and partner on projects. For example, we work with some of our larger tenants on renewable energy production and provide opportunities at our centers for our tenants to recycle, and where possible, compost. CLIMATE CHANGE ADAPTATION IF-RE-450a.3 Description of climate change risk exposure analysis, degree of systematic portfolio exposure, and strategies for mitigating risks Regency has a strong presence in Florida and identified that sea levels rising might pose a risk to our centers in that market. To better assess the potential impacts we conducted an analysis based on the National Oceanic and Atmospheric Administration (NOAA) sea level rise projections in coastal areas. We identified that, in the long term, seven assets would be most at risk by sea level rise of five to six feet, and one location that could be threatened by a rise of three feet. This analysis has contributed to how we assess asset and risk management in this region. In 2020 we built on this analysis, and expanded our review to our entire portfolio and business over the medium to long term (2030-2100), including a robust assessment of a comprehensive range of climaterelated risks and opportunities. Our analysis looked at two scenarios: One assuming low levels of greenhouse gas emissions that keep rises in average temperatures to 1.5-2 degrees Celsius (a ‘sustainable growth’ scenario) and another where greenhouse gas emissions continue to rise (a ‘current trends’ scenario). The results of this analysis are in our 2020 Taskforce on Climate-related Financial Disclosures (TCFD) Report which is available from our website and summarized in this Corporate Responsibility Report.
ETHICS AND GOVERNANCE