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Health & Well-being in Commercial Real EstateInsight, Execution and InnovationThe Durst Organization, 4 Times Square, New York City, NY, September 7, 2016

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3Harry EtraDirector, CodeGreen Solutions

InsightModerator: Chris Pyke, Chief Strategy Officer, Aclima 4

5Nils KokCEO, GRESB

How pension funds invest in real estate (and how they should)

Sustainability/ESG Performance

LeadershipRegulationCompanies/Buildings

Regulation provides minimum performance requirementsLeaders are in the right tail, however, the bulk is still in the bellSo, how to move the bell forward (= transformation to net-zero buildings that are safe, healthy, comfortable, connected, socially engaged etc.)

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The need to incorporate non-financial information into real estate investments

929 April 2015 2015 GRESB BVSingapore Training Session

10GRESB Real EstateAssesses the ESG performance of property companies, fund managers and developers

GRESB Real Estate DebtAssesses ESG performance of real estate lenders

GRESB InfrastructureAssesses the ESG performance of infrastructure assets and portfolios

200920152016

- Note how I mentioned Assessment of sustainability performance of real assets - GRESB is no longer only about beyond real estate portfolios We added Debt (in 2015) and Infra (March 2016) to the mix- Same reporting timeline for all three business lines

1029 April 2015 2015 GRESB BVSingapore Training Session

Performance Metrics

Transparency for ESG

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GRESB has become the Global Standard

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A new megatrend to watch health

Transparency for Health & Well-beingWhich companies and funds are promoting health and well-being?

Performance Metrics

Health and well-being policiesLeadership and accountabilityNeeds assessmentStrategies implementationPerformance monitoringRecognition/awards

GRESB Health & Well-being Module

174Property Companiesand Funds

Policies to promote health & well-being

Monitoring health & well-being outcomes

Employees

Monitoring health & well-being outcomes

Tenants & Customers

Bottom line: a significant gap

IntentExpressed through policy

OutcomesExpressed through monitoring

Policies

Monitoring

www.gresb.comn.kok@gresb.com

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25C. Tracy Orleans, PhDSenior Program Officer/Senior Scientist,Robert Wood Johnson Foundation

Health and Place -- At the Core of RWJFs Culture of Health MissionHealth & Well-being in Commercial Real Estate: Insight, Execution and Innovation

The Durst Organization4 Times SquareNew York, NY 10036

Wednesday, December 7, 2016Tracy Orleans, PhD(Sharon Roerty, ACIP/PP/MCRP)Robert Wood Johnson Foundation

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We recognize that health and wellbeing are greatly influenced by where we live, how we work, the soundness and safety of our surroundings, and the strength and resilience of our families and communities. Risa Lavizzo-Mourey and Alonzo Plough, 2016

Ottawa Charter, 1986 Health is created and lived by people within the settings of their everyday life, where they learn, work, play and love.

How our work and our lives come together

I love places and I love exploring places by foot or on my bicycle. And that is where my (real life) and my work converge at the RWJF my job, is to bring together people, place and health.

For 40 years The Foundations slogan has been Improving health and health care. And for 40 years much of our work was focused on clinical care, clinicians and access to care. We still care about all those things but we see them all in a bigger setting now we talk about a culture of health and taking health outside of the clinic. Sharon Roerty

How Healthy is Your Zip Code?

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www.cultureofhealth.org

33Finding metrics that guide, measure and catalyze change

34Gehl Architects work to transform NYCs Urban Plazas

35Gehl Architects: Working to transform NYCs public plazas the power of metrics

36Transforming space not only within buildings -- but also between them

Before the project

89% road space

11% people space

After the projectDesign can change behavior and urban culture

17% improvement in travel time11% increase in pedestrian numbers63% decrease in pedestrian injuries80% fewer pedestrians walking in the roadway74% say Times Square has improved dramatically

38The Revitalization of Bryant Park

39Whitney Austin Gray, PhDSenior Vice President, Delos

ExecutionModerator: Matthew Trowbridge, Associate Professor, University of Virginia, Director, Green Health Partnership40

41Matthew Trowbridge, MD MPH

Associate Professor, University of Virginia, Director, Green Health Partnership

42Anthony RavitzReal Estate & Workplace Services,Google

43Ryan PicarellaPresident & CEO, WELCOA

3 slides, need to get in PP43

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Be a transformative force that improves the health and well being of all working people.

WELCOA will recognize, educate, and provide tools and resources to improve behaviors, cultures, and the organizations we serve.VISIONMISSION

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47Yianice HernandezDirector, Healthy Living by Design, Bureau of Chronic Disease Prevention and Tobacco Control, New York City Department of Health and Mental Hygiene

48Virginia (Gina) FooteDirector of Fund Development, Conservation Law Foundation

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- Mixed-use- Mixed-income- Pedestrian-oriented- Near transit, jobs, and services- Green space and recreation- Healthy food choicesWhat Were Building: Healthy NeighborhoodsLandscape design by CBA Landscape Architects/Photograph Ed Wonsek50

#www.hnefund.org

Subordinate Capital Enhances Returns

CAPITAL STRUCTUREsenior returnsubordinate return

CLASS ACLASS BCLASS C77%16%7%Private InvestorsFoundationsPublicFunds100% repaid prior to any distributions to Class B or Class C51

#www.hnefund.org

HNEF: More than Financial Returns

Access to jobs and economic mobility

Safer, more walkable neighborhoods

Improved health and well-beingImproved health and well-being

Increased real estate valuesIncreased real estate values

Improved tax baseImproved tax base

Lower healthcare costsLower healthcare costs

Reduced GHG emissionsReduced GHG emissions

Reduced VMTReduced VMT

Increased transit ridershipIncreased transit ridership

+ Economic+ Environmental+ Community Returns =Healthy CommunitiesQuality housing for all income levelsQuality housing for all income levels52

#www.hnefund.org

Transformative Neighborhood Development: Dudley Square, Boston

Bruce BollingBuildingDartmouth HotelPalladio BuildingGoodwillHeadquartersSargent PrinceMandela Apts.Tropical FoodsMBTAOrchardGardensWarrenPalmer2201 WashingtonMelnea Hotel &ResidencesHibernianHallEustis FirehouseNortheastern UniversitySouth EndProjects Financed by MHIC in Red53

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54Eleni ReedChief Greening Officer, Office of Facilities Management, GSA Public Buildings Service

InnovationModerator: Nils Kok, CEO, GRESB55

56Kelly WordenProject Manager, Health Research,U.S. Green Building Council

78Health Affairs Whitepaperhttp://insight.gbig.org/the-state-of-health-considerations-in-commercial-real-estate/

79Chris PykeChief Strategy Officer, Aclima

Environmental intelligence for people and the planet.

Chris Pyke, Ph.D. Chief Strategy Officer

Pause

Aclima is harnessing big environmental data to support smarter, more sustainable decision-making. Our sensor networks can be deployed indoors or outdoors on buildings, cars or bus fleets around a city.

In the case of interiors, sensor-enabled performance data enables us to convert buildings from static assets, to dynamic healthy spaces.

To enable investors, owners, managers and occupants to see and utilize buildings at different resolutions - from a portfolio perspective, down to a phone room.

Pause

For companies today, two of the biggest operational assets and costs are a productive, healthy workforce and the buildings which house them.

Our environmental sensor data helps companies optimize the built environment for employees, but also unlocks new opportunities for measuring the environmental impact of their operations in order to support a healthier planet and people.

ACLIMA CONFIDENTIAL AND PROPRIETARY 2016Drivers of change

Research on health, well-being, and cognitive functionCompetitive market dynamicsEnabling technology

New Research

Peer-reviewed findings link building design and operation to health, well-being, and cognitive function.

Commonly experienced carbon dioxide levels affect cognitive function and productivity.

Workplace design shapes engagement, and physical activity.

Exposure to environmental pollutants reduces productivity.

First bullet: Multiple temporal and spatial scales.Second: Management of, for example: Building systemsInterior real estate attributes and layoutWorkspaces (scheduling, densification)

Third: comfort score; broaden out to performance and productivity

Competitive Markets

Green building had a global impact. Green buildings are now business-as-usual in many leading markets.This success means that long-standing labels no longer provide as much competitive differentiation. Leading owners and occupants are looking for new ways to create value.

ACLIMA CONFIDENTIAL AND PROPRIETARY 2016

New Technology

Emergence of low-cost, high quality sensors and supporting information technology.

New sensing technology can make the invisible, visible.

New information technologies can stream data from large networks of distributed sensors.

New analytics can turn complex signals into actionable insights.

First bullet: Multiple temporal and spatial scales.Second: Management of, for example: Building systemsInterior real estate attributes and layoutWorkspaces (scheduling, densification)

Third: comfort score; broaden out to performance and productivity

Sensing across Scales

Inside BuildingsNear BuildingsCity

The Aclima Environmental Intelligence Platform

Flexible hardware with plug & play sensors map thermal comfort, ventilation, light, and indoor emissions.

Scalable platform understands factors driving human health, comfort, and productivity.Unique tools deliver high quality actionable data to inform decision making.Data comes together in the cloud providing scalability to handle complex buildings and global portfolios.

An indoor environmental sensor network in GSAs Washington, DC Headquarters shows significant variation in thermal comfort, ventilation, light, and indoor emissions.

Buildings

First bullet: Multiple temporal and spatial scales.Second: Management of, for example: Building systemsInterior real estate attributes and layoutWorkspaces (scheduling, densification)

Third: comfort score; broaden out to performance and productivity

Carbon MonoxideNitrogen DioxideNitric OxideOzoneCarbon DioxideMethane / EthaneBlack CarbonUltra Fine ParticlesPM 2.5 and PM10-------Sulfur DioxideBenzeneRadiationReference Equipment + Sensors

Aclimas mobile sensing platform integrated with Google Street View Vehicles.

Autonode enables a transformative view of the environment, from the scale of the street to entire cities. 2 X Latitude & LongitudeVehicle Speed and HeadingWind DirectionWind SpeedExternal TemperatureExternal PressureLocation + MeteorologyCities

Game-Changing Transparency

Vehicle-based sensors provide unprecedented insights about environmental factors driving health and well-being in buildings and communities.These insights will inform design, operations, and public policy. ACLIMA CONFIDENTIAL AND PROPRIETARY 2016

ACLIMA CONFIDENTIAL AND PROPRIETARY 2016

LEAD THE CHANGEBy mapping our living world with large-scale environmental sensor networks, we can inform better policy decisions to support critical health protections for ourselves and our world.

William K. Reillyformer Administrator of the EPA and Senior Advisor to TPG CapitalFor more information: aclima.ioACLIMA CONFIDENTIAL AND PROPRIETARY 2016

Health & Well-being in Commercial Real EstateInsight, Execution and Innovation

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