Franklin Street Properties strives to maximize stockholder value through the prudent application of sound environmental, social and governance (ESG) actions. We believe that our efforts in ESG have the potential to not only improve the health of our planet, but also to save money on operating expenses, increase tenant and employee retention and reduce company risk.
We benchmark our progress relative to our peers with 3 main tools: GRESB®, ENERGY STAR®, and LEED®. Each of these rating systems capture different aspects of our sustainability journey.
GRESB is an industry-driven, global benchmark that evaluates the performance of real estate firms on key areas of participants’ ESG programs. FSP was again awarded the designation of Green Star, recognizing achievement for both the Implementation & Measurement and Management & Policy dimensions of the benchmark. We received a GRESB rating of four out of five stars, which is indicative of FSP’s quintile position relative to all GRESB respondents.
For asset level ratings, FSP utilizes the EPA’s ENERGY STAR program and the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system. The ENERGY STAR label demonstrates energy performance in the top 25% of similar buildings. The LEED rating system we use for the majority of our portfolio is focused on building operations performance: energy, water, waste, transportation, indoor air quality, and tenant satisfaction. Two of our buildings, 999 Peachtree in Atlanta and 1001 17th Street in Denver, were awarded LEED Platinum in 2019, which is the highest level of certification.
Social initiatives during the year focused on tenant and employee engagement. Tenant engagement included green fit out guides and sustainability-themed events. FSP gives back to our local community by offering all employees a paid day once per year for volunteering time at charitable activities of our employees’ choice. In 2019, employees also enjoyed wellness themed workshops and a new employee wellness room.
Governance initiatives during the year included regular meetings of our Sustainability Committee, employee training on governance matters and ESG reporting to our Board of Directors.
Over 60% of our square footage, both directly-owned and asset-managed by FSP, has earned the ENERGY STAR label.
Our GRESB score has shown improvement since 2014 reflecting our efforts to maximize shareholder value through the prudent application of sound ESG actions.
Over 50% of our square footage, both directly-owned and asset-managed by FSP, has been awarded LEED certification.