Real Estate Investors Commitment to ESG+

Our ESG+R Objectives

New York Life Real Estate Investors (“REI”) believes that investment principles which incorporate environmental, social, governance, and resilience (“ESG+R”) best practices promote favorable relative returns for our clients over the long term.

Recognizing that ESG+R is a continuous process rather than a time-bound project, REI is committed to the ongoing incorporation of ESG+R into our investment decision making process, from acquisition to disposition. REI has fully integrated our ESG+R Objectives into our investment process and overall business strategy. By adhering to our ESG+R Objectives we seek to deliver high-quality products and services to our clients and tenants. Demonstrating our commitment to ESG+R, REI is a member of GRESB and a signatory to the UN Principles for Responsible Investment (“PRI”).

Environmental

Monitor consumption and evaluate strategies by identifying and implementing feasible efficiency projects to achieve our reduction targets for energy, greenhouse gas emissions, water, and waste & recycling.¹
Strategically evaluate green building certifications across our portfolio, such as: LEED, Green Globes, BREEAM, and IREM CSP
Pursue ENERGY STAR Certification at all eligible buildings on an annual basis.
- Notable Achievement: Earned ENERGY STAR Certification for 30 buildings in 2022, making us a Premier Member of Certification Nation.

Governance

Meet on a consistent basis within our ESG+R Taskforce to lead and direct our efforts.
- Taskforce members include strategic stakeholders from Asset Management, Investor Relations, Investment Committee, Acquisitions Team and other departments.
Align our ESG+R program to material industry standards including GRESB and UN Principles for Responsible Investment (“PRI”) and regularly report to these frameworks to assess the ESG+R performance of our real estate portfolios.
Enact governance policies that create long-term value and potentially reduce risk to investors. These include:
- Support portfolio oversight through appropriate internal controls, policies, procedures, and compliance oversight
- Mitigate investment risk by following a thorough investment due diligence and approval process
- Prevent and detect possible suspicious activity through our Anti–Money Laundering Program, Code of Ethics, and Conflicts of Interest Questionnaire
- Ensure employees are well informed through training related to governance risks
- Incorporate evaluation of ESG+R factors during the acquisition due diligence process for new investments.
Ensure compliance for our assets located in jurisdictions that require benchmarking or performance audits.

Resiliency

Evaluate new acquisitions for climate related physical risks as part of the due diligence process.
Identify opportunities to mitigate climate related risks from market, policies, and changes in technology that may result from a transition to a low carbon economy.
Evaluate portfolio approach on climate risk analysis that aligns with recognized industry standards such as TCFD reporting framework.

New York Life Real Estate Investors' 10-year (2019-2029) Targets

SFDR

The EU Sustainable Finance Disclosures Regulation (2019/2088) on sustainability-related disclosures in the financial services sector (the “SFDR”) requires New York Life Real Estate Investors, a division of NYL Investors LLC (the “Manager”) to publish information on the integration of sustainability risks in its investment decision making process and the consideration of adverse sustainability impacts. The Manager manages real estate focused funds. The following disclosures apply only in respect of those funds managed by the Manager that are subject to SFDR.

Sustainability Risks

SFDR defines “sustainability risks” as environmental, social or governance (“ESG”) events or conditions that, if they occur, could cause an actual or a potential material negative impact on the value of the investment. The Manager is committed to act in the best interests of its clients. In this fiduciary role, the Manager believes in taking a holistic view of an investment opportunity. The potential impact of various sustainability risks on an investment will differ by company, sector, geography, asset class, and the passage of time. For real estate equity investments, and if appropriate for a debt investment, the Manager will conduct sustainability risk-related due diligence and/or take steps to mitigate sustainability risks in an attempt to preserve the value of an investment.

For further information on the Manager’s ESG+R approach, please see the following link: https://www.newyorklifeinvestments.com/who-we-are/our-global-boutiques/nyl-investors/real-estate-investors/esg

Consideration of Adverse Sustainability Impacts

Adverse impact under SFDR is the risk of harm that an investment decision may have externally on sustainability factors. Sustainability factors are defined under the SFDR as environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters. For the time being, the Manager does not consider the adverse impacts of its investment decisions on sustainability factors, within the meaning of Article 4(1)(a) of the SFDR and the technical standards made under the SFDR in relation to the funds that it makes available in the EU. Among other reasons, this is because obtaining and/or measuring all the corresponding data systematically, consistently, and at a reasonable cost with respect to all investment strategies has not been standardized. Instead, the Manager considers whether to conduct adverse sustainability impact related due diligence as part of its investment decision-making process on a more bespoke basis and/or in taking steps to mitigate sustainability risks in an attempt to preserve the value of an investment. Depending on the availability of relevant data, the Manager intends at a later stage to consider disclosing on a voluntary basis where it considers the adverse impacts of its investment decisions on sustainability factors and where it has relevant data aligning with SFDR standards and will update this statement accordingly.

While the Manager may report information relating to data corresponding to its ESG+R approach in some of its funds to investors, this may not align with data requirements under the SFDR and its technical standards.

Remuneration

In addition to traditional financial metrics, remuneration of the Manager’s personnel is also calculated using non-financial metrics and performance indicators. The Manager is not subject to Article 5 SFDR with respect to remuneration.

1. The 10-year environmental reduction targets are relative to a 2019 baseline on a like-for-like absolute basis. The carbon emissions reduction goal relates to our Scope 1 and Scope 2 emissions.

Disclosures

Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values-based criteria to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating.