GWL Realty Advisors 2014 Annual Review

Overview | Lorem

THE VALUE OF

REAL ADVICE 2014 ANNUAL REVIEW



Overview | Lorem

Overview

HOW TO USE THIS REPORT

Overview

Our Approach Business Performance

GRI CRE3 Business Integrity This report is an interactive PDF and is intended to be viewed with Adobe Reader and an Internet connection. Investments and Development Operational Excellence This new format saves paper and makes it easy for readers to access supplementary online information. The Environmental Performance Overview PDF can also be viewed offline, but any external material will not be accessible. Employer of Choice

Overview | Lorem


Our Approach

Data Tables

Data Tables

Business Performance Business Integrity

About This Report

Overview | Lorem

Value Creation Operational Excellence Sustainability

GRI Index

GRI Index

Overview

Overview |Our Lorem Approach

Employer of Choice

GRI

Business Integrity Value Creation Operational Excellence

Sustainability is fundamental to operating higheffihighcient and low-impact buildings. Sustainabilityperforming, is fundamental to operating performing, efficient and low-impact buildings. Managing the environmental impacts of our buildings Managing the environmental impacts of our buildings helps to control our costs and those of our tenants, helps to control our costs and those of our tenants, contributes to preserving the environment, and further protects and grows the value of our to clients’ assets. contributes preserving the environment, and further protects and grows the value of our clients’ assets.

Sustainability Employer of Choice

About This Report Our Approach NAVIGATION GRI Index Business Performance The web-like

CRE3

SUSTAINABILITY

Business Performance

Data Tables

Overview

SUSTAINABILITY

DISCLOSURE KEYS GRI icons appear at the top of relevant pages. Click to view the full GRI Index.

About This Report

GRI CRE3

Data Tables About This Report

BACK AND FORWARD Navigate with the Westmount Corporate Campus, Calgary, AB page back and forward icons or click the menu symbol to go to the table of contents.

SUSTAINABILITY

GRI Index

Business Integrity

navigation provides access to Operationaleasy Excellence Sustainability content. Value Creation

Employer of Choice

Westmount Corporate Campus, Calgary, AB

GWL Realty Advisors | 2014 Annual Review

Data Tables

25

Sustainability is fundamental to operating highperforming, efficient and low-impact buildings. About This Report CLASSIC METHOD SELECTIVE METHOD Managing the environmental impacts of our buildings GRI Index You can read the report from cover to cover like a regular book. Simply click Youcosts can also straight specific topics by using the web-like navigation on helps to control our and go those of ourtotenants, Westmount Corporate Campus, Calgary, AB on the arrow keys in the bottom left-hand corner of each page. contributes to preserving the left-hand side of the page, by clicking the menu key in the bottom leftthe environment, and or further GWL Realty Advisors | 2014 Annual Review 25 protects and grows thecorner. value of our clients’ assets. hand

Data Tables

GRI Index

19 | DMA-EN | EN6 | EN19 | CRE1 | CRE2 | CRE3

Management and Performance

Our Approach

Our Sustainability Team helps to guide environmental conservation programming, including data collection, analysis and reporting activities as they relate to energy, water, waste and greenhouse gas (GHG) emissions management. These activities are tracked and reviewed on a quarterly basis by the Sustainability Steering Committee at meetings where continuous improvement efforts are discussed and prioritized.

Business Performance Business Integrity Value Creation Operational Excellence Employer of Choice

By setting targets, driving reductions and measuring results, we demonstrate that environmental sustainability is good management, enabling us to improve building performance and efficiency.

2014 ACHIEVEMENTS

2015 ACTIONS

Business Integrity

Reduce energy consumption while maintaining tenant comfort

Reduced energy intensity by 7% since 2007

Establish a five-year energy reduction target using 2013 as the baseline year

Sustainability

Waste Reduction

Reduce waste to landfill and increase diversion rates

Reduced waste intensity by 35% since 2007

Establish a five-year waste reduction target using 2013 as the baseline year

Water Management

Reduce water consumption

Reduced water intensity by 21% since 2007

Carbon Monitoring and Measurement

Reduce our carbon footprint

Reduced our carbon footprint by 22% and our emissions intensity by 27% since 2007, avoiding 76,534 tonnes of CO2e

GHG Emissions Intensity

Data Tables

Establish programs to support our five-year water reduction target

27%

10 8 6 4 2 0

About This Report GRI Index

CO2

12

Value Creation Operational Excellence Employer of Choice

Established a water benchmark for office assets and set a five-year water reduction target of 8.4% using 2013 as the baseline year

GRI Index

EN5 | EN6 | EN8 | EN15 | EN16 | EN17 | EN18 | EN19 | EN23 | CRE1 | CRE2 | CRE3

Sustainability Performance at a Glance (2007–2014)


OBJECTIVE

Energy Efficiency


GRI

Business Performance | Sustainability

Overview

PRIORITY

Sustainability

Sustainability is fundamental to operating highperforming, efficient and low-impact buildings. Managing the environmental impacts of our buildings helps to control our costs and those of our tenants, contributes to preserving the environment, and further protects and grows the value of our clients’ assets.

About This Report

GRI

Overview

07

08

09

10

09

10

11

12

13

14

11

12

13

14

decrease in GHG emissions intensity (Scope 1, 2 and 3)

Employer of Choice

0

07

08

09

10

11

12

13

OBJECTIVE

2014 ACHIEVEMENTS

2015 ACTIONS

Energy Efficiency




Waste Reduction




About This Report

Water Management





80 60

decrease in water intensity

40 20 07

08

31%

25 20 15

decrease in waste

10 5 0

07

08

Year

09

10

11

12

13

GRI

Overview


Our Approach

SUSTAINABILITY

Business Integrity Value Creation Operational Excellence Sustainability Employer of Choice

Business Performance Data Tables About This Report GRI Index

Data Tables




Establish a five-year carbon reduction target using 2013 as the baseline year

GRI

GRI Index

CRE3



GRI Index

30

21%

100

Overview | Lorem

Overview

PRIORITY

Data Tables

14

Year

Landfill Waste and Recyclables

140

0

Operational Excellence Sustainability

decrease in energy intensity

10

Year

Water Intensity 120



Value Creation

7%

19 | DMA-EN | EN6 | EN19 | CRE1 | CRE2 | CRE3


Our Approach

Business Integrity

40

30

20

GRI


Overview


Energy Intensity

Intensity (ekWh/ft2)

Employer of Choice

(000s tonnes)

Value Creation Operational Excellence Sustainability


CRE3

SUSTAINABILITY

Business Integrity

Intensity (tCO2e/1,000 ft2)

GRI


Intensity (litres/ft2)

Overview | Lorem

Overview

SPECIFIC STANDARD DISCLOSURES

Direct economic value generated and distributed

G4-DMA Indirect economic impacts disclosures on management approach G4-EC7

Development and impact of infrastructure investments

G4-EC8

Significant indirect economic impacts

G4-DMA Procurement practices disclosures on management approach

Pages

Performance Highlights, Data Tables

6-7, 41

Value Creation

19-20

Value Creation

32

Explanations/Omissions

19-20

Value Creation

19-20

Business Integrity

16

ENVIRONMENTAL G4-DMA Environment disclosures on management approach

Sustainability

26

G4-DMA Energy disclosures on management approach

Sustainability

28

G4-EN3

Energy consumption within the organization

G4-EN5

Energy intensity

G4-EN6

Reduction of energy consumption

G4-DMA Water disclosures on management approach G4-EN8

Total water withdrawal

G4-DMA Greenhouse gas (GHG) emissions disclosures on management approach

14

Year

Sections

ECONOMIC G4-EC1

Data Tables Sustainability, Data Tables Sustainability Sustainability Sustainability, Data Tables Sustainability

G4-EN15 Direct GHG emissions (Scope 1)

Sustainability, Data Tables

G4-EN16 Energy indirect GHG emissions (Scope 2)


34 27, 34 26-27 28 27, 35 28 27, 33 27, 33

Landfill waste Recyclables




25


26



27


26


25


47


2

Overview Our Approach Business Performance Data Tables About This Report

INSIDE THIS REPORT We are taking a new approach to our annual review. This year, we have prepared an integrated report to better inform our readers about our performance, demonstrating how both financial and nonfinancial aspects of our business enable us to create sustainable long-term value for our stakeholders. The report content was guided by the International Integrated Reporting Council Framework and the Global Reporting Initiative G4 Sustainability Reporting Guidelines. For more information, refer to the “About This Report” section.

GRI Index

OVERVIEW President’s Message Performance Highlights Business Highlights Awards and Industry Memberships Who We Are/What We Do

4 6 8 9 10

OUR APPROACH Vision and Strategy Responsible Management Stakeholder Engagement

11 12 13

BUSINESS PERFORMANCE

Stock Exchange Tower, Calgary, AB

9500 Glenlyon Pkwy., Burnaby, BC

Business Integrity Value Creation Operational Excellence Sustainability Employer of Choice

14 17 21 25 29

DATA TABLES

33

ABOUT THIS REPORT

42

GRI INDEX

43


3

GRI 1

Overview

Overview President’s Message

Performance Highlights

Who We Are/What We Do

Business Highlights Awards and Industry Memberships

Our Approach Business Performance Data Tables About This Report GRI Index

PRESIDENT’S MESSAGE It’s been seven years since we issued our first greenhouse gas emissions report and 10 years since we built our first Habitat for Humanity home. These examples of corporate social responsibility are simply what I define as “doing the right thing” for our clients, employees, communities and the planet. Being accountable for our actions builds trust and that has always been an integral part of who we are and how we do business. This year, to provide a more complete picture of the value we deliver to our stakeholders, we are expanding our annual review to communicate our 2014 financial performance and what we are doing as a company to help ensure a resilient and sustainable business for the future.

Our disciplined approach to managing the Canadian Real Estate Investment Fund No. 1 and the London Life Real Estate Fund resulted in another year of strong performance for our clients. This year, the Funds delivered gross returns of 7.4% and 6.0%, respectively.

A Year of Steady Performance

New development is an important driver of our clients’ growth. In 2014, nine projects concluded and our pipeline of new development projects is strong, with over $650 million in the approval stage.

As a trusted real estate advisor, our mission is to provide stable long-term returns for our clients. In 2014, we continued to achieve this by providing sound real estate advice to our clients, helping them realize their long-term investment goals. From a real estate acquisition perspective, we purchased $308.9 million in new assets for our clients.

Paul Finkbeiner, President

Leasing activity was also strong, in part as a result of proactive strategies. We concluded 551 transactions totalling 6.3 million square feet of new and renewal commercial leases.


4

GRI 1

Overview | President’s Message

2014 Corporate Social Responsibility Highlights

Overview President’s Message



In addition to our financial performance, we made great strides in our commitment to corporate social responsibility.

Business Highlights Awards and Industry Memberships

• Green building certifications are a marquee of building and operational excellence. At the close of the year, 68% of our eligible portfolio was BOMA BESt certified. We are well on our way to meeting our goal of 100%.

Our Approach Business Performance Data Tables About This Report Commerce Place, Edmonton, AB

GRI Index Nine buildings received LEED® certification in 2014. Another eight buildings are pursuing certification.

The multi-residential asset class continued to be an important part of our clients’ asset mix. During the year, multi-residential assets maintained a stable occupancy rate of 97%.

• We formalized our compliance management process by establishing a cross-functional committee that links to our parent company’s Chief Compliance Officer in order to better manage new compliance requirements and to report on any compliance matters that affect our business. • For the first time, we participated in the Best Employers in Canada engagement survey to benchmark our performance with the best in Canada. 78% of our employees believe we are a socially responsible employer. Employee engagement remains a key business priority for us.

Our Bright Future By all accounts, 2014 was another good year. We thank our clients for their trust and continued confidence in our ability to serve their real estate investment needs. We also thank our employees for their support and dedication. We are a vastly different company than we were 10 years ago. We continue to increase our reputation for being one of Canada’s most trusted real estate advisors because of the value of real advice that we provide. As we look forward, we see a bright future. We will continue to work hard to further enhance value for our clients, and ensure our business creates positive results for all our stakeholders.

Paul Finkbeiner President


5

GRI 8 | 9 | EC1

Overview

Overview

President’s Message

PERFORMANCE HIGHLIGHTS


Business Highlights


Awards and Industry Memberships

Our Approach

TOTAL REAL ESTATE ASSETS UNDER MANAGEMENT 2014

2013

Pension Fund Advisory Services

8,199

8,649

Canadian Real Estate Investment Fund No. 1

4,136

3,922

London Life Real Estate Fund

2,056

1,977

Great-West Life/London Life/Canada Life

2,143

2,071

29

29

16,563

16,648

Other


Total assets ($ millions)

Data Tables

Total square feet (millions)

59.9

62.6

Total number of assets

288

309

About This Report

PORTFOLIO RATES OF RETURN

GRI Index

(Investment Property Databank basis – non-leveraged)

200 Kent St., Ottawa, ON

1 Year

4.9%

5 Year

5.6%

10.9%

5.3%

10 Year 6.1% Income Return

7.3%

2.4%

4.9% Capital Return

11.0%

Total Return

Note: Numbers reported on this page are as of December 31, 2014.


6

GRI 6 | 8 | 9 | EC1

Overview | Performance Highlights

Overview

Number of Assets and Value by Region



Business Highlights




44

69

Value: $2.4B

BRITISH COLUMBIA

ALBERTA

8

SASKATCHEWAN/MANITOBA

133

20 QUEBEC

ATLANTIC CANADA

Value: $5.4B

Value: $0.3B

Value: $7.7B

Value: $0.5B

Value: $0.3B

ONTARIO

11


Asset Allocation and Value by Type

GRI Index

60% 15% 12% 4%

9%

OFFICE

MULTI-RESIDENTIAL

INDUSTRIAL

RETAIL

PROPERTY HELD FOR/ UNDER DEVELOPMENT

Value: $9.8B

Value: $2.5B

Value: $1.9B

Value: $0.9B

Value: $1.5B

Note: Numbers reported on this page are as of December 31, 2014.


7

Overview

Overview


BUSINESS HIGHLIGHTS


$159.6 M

Business Highlights



total value creation of new development projects in 2014

551

total new and renewal lease transactions completed

95.8%

tenant satisfaction score in commercial portfolio


CO2

27%

decrease in absolute GHG intensity since 2007

100%

of employees signed the Code of Business Conduct and Ethics

68%

of eligible portfolio is BOMA BESt certified

78%

of employees believe our company is socially responsible

17 BUILDINGS

attained or are pursuing LEED® certification

11 HOUSES

built in Toronto for Habitat for Humanity since 2004


8

GRI 15 | 16

Overview

Overview

President’s Message Performance Highlights Business Highlights

AWARDS AND INDUSTRY MEMBERSHIPS We were proud to accept industry awards on behalf of our clients, recognizing excellence in operations and property management.




Commerce Court Toronto, ON

190 Simcoe St. Toronto, ON

12315 Coleraine Dr. Bolton, ON

330 University Ave. Toronto, ON

Data Tables About This Report GRI Index

2014 BOMA Toronto Earth Award; Office Building Complex and Recycling Council of Ontario’s Silver Award in the Institutional, Commercial and Industrial Sector

2014 BOMA Toronto Best Saver Earth Hour Challenge; 2014 Race to Reduce Building Engagement Award

2014 BOMA Toronto Building of the Year Award: Industrial; 2014 Certification of Building and Management Excellence

2014 Race to Reduce Building Engagement Award

65 Lillian Ave. Toronto, ON

BOMA Toronto Earth Award, Multi-Residential

We actively participate in real estate and industry associations.


9

GRI 4 | 7

Overview

Overview

President’s Message Performance Highlights Business Highlights Awards and Industry Memberships



WHO WE ARE GWL Realty Advisors is a leading Canadian real estate investment advisor providing comprehensive asset management, property management, development, portfolio management and specialized real estate advice and services to pension funds and institutional clients. GWL Realty Advisors is a wholly owned subsidiary of The Great-West Life Assurance Company.

WHAT WE DO As a trusted real estate investment advisor, we are known for strong corporate governance, stewardship of clients’ assets, and a commitment to sustainability and outstanding customer service. We’ve earned and maintained the trust of our clients by helping them reach their longterm investment goals. To do so, we leverage the power of our collective real estate knowledge and expertise across all asset classes.

ASSET MANAGEMENT “We oversee the development and execution of business and capital plans for our clients’ assets.” Scott Taylor, Senior Vice President,

PORTFOLIO MANAGEMENT “We provide advisory services to our clients. We are accountable for the overall performance of our clients’ assets.” Tom Sullivan, Senior Vice President, Portfolio Management

Asset Management, Prairie Region

PROPERTY MANAGEMENT “We ensure the long-term performance of the properties we manage by developing and executing business and capital plans.” Charles Stade, Vice President, National Commercial Property Management

FINANCE AND ADMINISTRATION

DEVELOPMENT

“We provide financial and portfolio reporting to our clients and business units across the country.” Kevin Nicholson, Vice President, Finance & Administration

INVESTMENTS

“We help our clients to achieve their return and diversification objectives by developing properties to add to their portfolios.” Merv McCoubrey, Senior Vice President, Development, Eastern Canada

LEASING

“We work closely with portfolio management to understand our clients’ investment objectives. We then develop strategies to achieve these objectives.” Jeff Fleming, Senior Vice President, Investments

“We maintain strong relationships with tenants to secure long-term leases.” Glenn Way, Senior Vice President, Asset Management, Toronto

VERTICA RESIDENT SERVICES “Vertica provides residential property management that enhances value for our residents.” Louise Nichols, Director, Operations

RESEARCH “The research team identifies and analyzes the long-term social, demographic, environmental and economic trends affecting commercial real estate investment, ownership and development.” Wendy Waters, Director, Portfolio Analysis & Research Services


10

GRI 19

Our Approach

Overview Our Approach Vision and Strategy

Responsible Management Stakeholder Engagement


VISION AND STRATEGY

BUSINESS PRIORITIES

Our approach to real estate investment advice is supported by our strategic business objectives – growth, performance, relationships, reputation – helping us to create a sustainable and resilient business for the long term. STRATEGIC BUSINESS OBJECTIVES

Our Vision To be the Canadian real estate advisory company that is recognized for delivering results through smart, timely and trusted advice and services.

Growth – Increase assets under management and secure new investors and clients.

Performance – Increase net operating income; enhance operating efficiencies.

Relationships – Improve and expand service offerings and client relations.

Our Mission To deliver stable long-term returns for our clients.

Reputation – Enhance our position as a recognized leader and employer of choice in the Canadian real estate industry.

Business Integrity – Conduct our business with honesty, integrity and fairness, building the trust and confidence of our clients.

Value Creation – Achieve sustainable returns and the diversification objectives of our clients, taking financial, environmental, social and governance factors into consideration in the investment, asset management and development process.

Operational Excellence – Provide an exceptional, proactive and personalized service for our tenants, managing properties in the most innovative and efficient manner to achieve predictable and competitive operating costs.

Sustainability – Drive cost efficiency and improve the environmental performance of buildings under our management, while working collaboratively with service providers to support environmentally conscious activities, products and services.

Employer of Choice – Foster a rewarding place to attract and develop top talent, where people feel motivated and empowered to grow both personally and professionally.


11

GRI 14 | 34 | 35 | 36 | 38 | 42 | 45 | 46 | 48 | 56

Our Approach

Overview Our Approach

Vision and Strategy

Responsible Management

Stakeholder Engagement


RESPONSIBLE MANAGEMENT Our fiduciary responsibility demands that we adhere to strict governance policies. All decisions are subject to careful scrutiny at all levels. Where applicable, we operate in accordance with the framework of our parent company, which plays an important role in supporting our business operations and providing clear guidance. Governance Structure

Risk Management

Key management decisions are made by our President, supported by an experienced Executive Committee responsible for the overall management and growth of our business. The Executive Committee is made up of nine executives, four of whom are women. The Executive Committee is informed by a number of senior management committees including:

Our governance standards form the foundation of our ongoing risk management approach. The Compliance Steering Committee oversees our risk management function, identifying key risks and ensuring effective risk management capabilities are integrated into dayto-day business activities.

The Investment Committee is responsible for the review and approval of all major terms for any proposed acquisition, disposition, development or major capital project undertaken on behalf of our clients.

The Human Resources Committee is composed of senior leaders who are responsible for overseeing human resources strategies, including compensation and talent management at GWL Realty Advisors.

The Sustainability Steering Committee is a cross-functional team that has primary responsibility for supporting sustainability across our business. This includes approving the strategic approach, overseeing programs, reviewing performance and approving reporting.

We take a precautionary approach to risk identification and assessment, which includes financial, ethical, business, governance, environmental and social risk considerations. Each quarter, potential risks are identified, monitored and managed accordingly.


12

GRI 24 | 25 | 26

Our Approach

Overview

STAKEHOLDER ENGAGEMENT

Our Approach

Our participation in open dialogue and engagement enables us to understand the interests of our stakeholders and build trusted relationships.

Vision and Strategy Responsible Management



We provide stakeholders with feedback mechanisms to ensure they have an opportunity to voice any questions or concerns. Feedback is gathered through our website, one-on-one meetings, discussions at conferences, focused satisfaction and engagement surveys, and input from sectoral and cross-sectoral initiatives.

Listening to Our Stakeholders PARENT COMPANY We engage regularly with our parent company through the GWL Realty Advisors Board as well as through formal and informal meetings on our business performance, investment management, and risk and compliance management programs.

CLIENTS Our clients are pension funds, individuals and institutional investors. We engage regularly with them through formal business meetings, reporting and client feedback. TENANTS We engage with our tenants on an ongoing basis through leasing negotiations, newsletters and satisfaction surveys, and through ongoing meetings as part of the normal course of our business activities. EMPLOYEES We engage our employees through continuous communication and feedback mechanisms, performance reviews, and a biannual employee engagement survey.

REAL ESTATE INDUSTRY GROUPS We actively participate in real estate industry groups, including REALpac, BOMA, Canada Green Building Council, NAIOP and NAREIM. We engage with these groups through our membership and involvement at meetings and conferences. SERVICE PROVIDERS We engage with service providers through formal contract planning meetings and performance monitoring discussions. GOVERNMENTS We engage with governments on an ongoing basis, either during the various phases of development projects or through industry groups such as REALpac, the real estate industry group that represents the interests of building owners and advisors.

COMMUNITY GROUPS The communities where we operate play an important role in our social licence to operate. We engage with these groups through our community investment programs and volunteering initiatives as well as various community consultations during development projects.

Looking Forward Over the course of the next year, we will continue to incorporate stakeholder feedback into our efforts to improve our services and operations.


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Overview | Lorem

Overview Our Approach Business Performance

BUSINESS INTEGRITY

Business Integrity

Value Creation Operational Excellence Sustainability Employer of Choice


Our strong standard of ethics and integrity forms the basis for how we conduct our business. We set high standards for our people, and extend our values to our service providers.


14

GRI 19

Business Performance | Business Integrity

Overview


Our Approach

We continue to drive a strong compliance culture across our organization. Our Compliance Steering Committee has responsibility for reviewing our business processes to ensure they are compliant with applicable laws and reflect responsible business practices.


Value Creation

PRIORITY

OBJECTIVE

2014 ACHIEVEMENTS

2015 ACTIONS

Ethical Conduct

Ensure 100% compliance for both codes of conduct

100% of employees signed off on the Code of Business Conduct and Ethics

Continue to reinforce aspects of the codes through ongoing awareness and training

Operational Excellence Sustainability

100% of Directors signed off on GWL Realty Advisors’ Code of Conduct

Employer of Choice

Data Tables

Compliance Management

Continue to ensure a strict compliance culture

About This Report GRI Index Responsible Business Practices

Promote responsible practices among our service providers Reinforce tendering practices with property management staff

Formalized a Compliance Steering Committee

Review Committee membership, practices and procedures

Strengthened our Business Continuity Planning (BCP) and Disaster Recovery Planning (DRP) programs

Test and continuously improve our BCP and DRP programs

Continued to communicate our responsible business practices to service providers

Enhance our responsible business practices for service providers

Continued to implement our pre-qualification contractor process

Conduct random audits of properties to assess implementation

Developed training program for staff responsible for managing contract tendering


15

GRI 12 | 56 | 57 | DMA-EC | DMA-SO | SO4 | SO5 | DMA-PR | PR8

Business Performance | Business Integrity

Overview

Management and Performance (cont’d)

Our Approach

While we take a long-term perspective on investing and comply with the highest standards of accountability and governance, we remain entrepreneurial and opportunistic. This balance is critical in meeting both our fiduciary responsibilities and our commitment to deliver stable returns to our stakeholders.


Value Creation Operational Excellence Sustainability Employer of Choice


ETHICAL CONDUCT The foundation of our ethics and integrity is guided by our two codes of conduct. The codes include requirements on workplace violence, anti-money laundering, and fair and equitable contractor tendering processes. The codes and supporting policies establish the values and business principles that apply within our organization, as well as to our service providers. OMBUDSMAN AND WHISTLEBLOWING Our Whistleblowing Policy ensures that reports to the Ombudsman are held in confidence and investigated and resolved in a timely manner by the Business Unit Compliance Contact.

COMPLIANCE MANAGEMENT We have a strong compliance framework overseen by our Compliance Steering Committee, and informed by our parent company’s Corporate Compliance team. We are subject to regular third-party reviews and audits to ensure our compliance. REAL ESTATE BROKERAGE LICENSING Our National Real Estate Licensing Policy guides our approach to brokerage licensing. We ensure we are licensed appropriately in each province where we carry on business and monitor the maintenance and renewal of all licences. PRIVACY In accordance with our privacy policy, we have formal data security systems and continue to train our employees on data privacy controls. In 2014, there were no incidents related to privacy breaches.

BRIBERY, CORRUPTION AND MONEY LAUNDERING We abide by anti-corruption, anti-bribery and anti-money laundering policies, which set out specific guidelines for the detection and reporting of fraud and money laundering. In 2014, there were no incidents related to bribery, corruption or money laundering. RISK MANAGEMENT AND COMPLIANCE SYSTEMS Two systems – RiskCheck and ContractorCheck – support our property operations’ risk management and compliance practices. Combined, these two systems capture issues at the site level that may pose a risk to safety and to the assets themselves. All issues are documented, escalated, resolved and logged for future analysis.

RESPONSIBLE BUSINESS PRACTICES We engage a diverse network of service providers. We extend our conduct standards to our suppliers, and expect them to conduct their businesses in an ethical, environmentally sound and socially responsible manner. BUSINESS CONTINUITY PLANNING (BCP) AND DISASTER RECOVERY PLANNING (DRP) We have robust policies, procedures and programs in place to ensure our critical business functions and IT services continue to operate in the event of serious incidents or disasters. Our BCP and DRP programs are exercised and updated on a regular basis. Our recovery services and facilities are located in Canada and follow industry best practices for location and environment.


16

Overview | Lorem


Business Integrity

Value Creation

Operational Excellence Sustainability Employer of Choice


VALUE CREATION Our mission as a trusted real estate investment advisor is to deliver stable, long-term returns for our clients. We do this through the acquisition and disposition of real estate, by enhancing asset value through proactive asset management and leasing strategies, and through the development of new properties. We believe it is important to consider environmental, social and governance factors when providing real estate investment advice. Doing so enables us to effectively mitigate risks, maximize asset value and optimize returns for our clients.

Elata, Calgary, AB


17

GRI 19

Business Performance | Value Creation


We earn and maintain the trust of our clients by listening to their investment objectives and helping them to reach their goals by leveraging the power of our collective real estate knowledge. Our diverse teams – including Portfolio Management, Investments, Development, Asset Management, Leasing and Property Management – located in core markets work together to understand and meet our clients’ objectives. Building partnerships that are based on the value of real advice is what we are all about.

Business Integrity

Value Creation


Operational Excellence

PRIORITY

OBJECTIVE

2014 ACHIEVEMENTS

2015 ACTIONS

Asset Management

Develop and execute business plans that increase the value of our clients’ assets under management

Increased the value of clients’ assets through strategic asset management, proactive leasing strategies and operational excellence

Continue to identify opportunities to increase client asset value

Investments

Pursue a disciplined strategy to managing acquisitions and dispositions of our clients’ assets to achieve sustainable returns and portfolio diversification objectives

Acquired $308.9 million of real estate assets on behalf of our clients

Strengthen the integration of ESG factors into the Investment Policy and procedures

Ensure new development projects create value for our clients and contribute positively to the communities where they are built

Completed nine development projects across the country



Developments

Disposed of $144.1 million of non-core assets

Engaged communities through public meetings on all major development projects

Formalize the integration of sustainability criteria into our Development Policy and procedures

The acquisition of 5000 Yonge Street (Toronto, ON), a Class “A” office building, expanded our existing managed portfolio of more than one million square feet in the North Yonge corridor.


18

GRI DMA-EC | EC7 | EC8 | DMA-SO



Business Integrity

Value Creation



Management and Performance (cont’d) Our long-term perspective ensures we continue to add value to our clients’ portfolios by providing strong management and strategic investment advice.

VALUE CREATION We take a measured approach to protecting and growing the value of our clients’ assets under management through portfolio management, asset management, transaction management and leasing, to optimize the value of every asset. INVESTMENTS Our Investment Policy guides our approach to the acquisition and disposition of our clients’ real estate assets. This includes acquiring assets and executing a disciplined approach to disposing of non-core assets to make room for new product. DEVELOPMENTS We help our clients achieve their return and diversification objectives by developing high-quality properties, especially ones that are technologically advanced and environmentally responsible.

We assess potential developments and then analyze each development’s risk profile so that it can be matched with the riskreward combination for the client. Through this process, we provide recommendations to our clients on features that enhance the connectedness of a development to its community, including linkages to transit, affordable housing, ecological protection, and urban design. We work collaboratively with the communities where we operate to create positive impacts in society, contributing to social well-being, quality of life and economic prosperity.

ASSET MANAGEMENT Our business and capital plans include a broad range of initiatives to protect and grow the value of our clients’ investments. In addition to upgrading tenant amenities and common spaces, our asset management team considers capital investments to upgrade building systems and enhance energy efficiency, as a means of reducing utility costs and adding value to the asset. LEASING STRATEGIES We also engage with new and existing tenants on lease agreements. Our proactive leasing strategies resulted in strong activity across the country in 2014 with 551 transactions totalling 6.3 million square feet of new and renewal commercial leases concluded during the year.

551 TOTAL LEASING TRANSACTIONS Total new leases:

247 TRANSACTIONS totalling 2.7 million square feet Total renewals:

304 TRANSACTIONS totalling 3.6 million square feet


19

GRI DMA-EC | EC7 | EC8



Business Integrity

Value Creation



CASE STUDY CREATING VALUE THROUGH NEW DEVELOPMENT PROJECTS

Through innovation and quality control in every aspect of development, from design, to construction, to leasing, we partner with our clients to develop real estate projects that offer sustained value for them, for tenants and for the community. Southcore Financial Centre was among the first major business developments to be built south of the traditional financial district in downtown Toronto, during a time when there was minimal development immediately south of Union Station. Completed in December 2014, this mixed-use complex features two LEED® Gold certified office towers totalling 1.4 million square feet and the Delta Toronto, a premium 4-star, 560-room next generation hotel. Two PATH bridges connect Southcore Financial Centre to the neighbourhood. The first bridge,

Southcore Financial Centre was developed on behalf of bcIMC.

an enclosed pedestrian walkway, enhances the area’s connectivity by providing easy and convenient access to Union Station, the GO Bus Terminal, the PATH network, Air Canada Centre and the downtown core. The bridge features a dynamic and interactive permanent exhibit by James Carpenter. Entitled Lake Light Threshold, this artwork seeks to animate the walk across the bridge and make the northward drive into the city from the Gardiner Expressway more of an event by illuminating the north wall of the PATH bridge.

The second bridge joins the Delta Toronto Hotel and Southcore Financial Centre with the SkyWalk. This bridge creates a loop within the PATH pedestrian network, making it possible to travel between the Delta Toronto and Union Station in climate controlled comfort, and makes it easy for guests in the hotel or those who work in the Southcore Financial Centre to gain faster access to the Metro Toronto Convention Centre and the Union Pearson Express train.

Completed in December 2014:

2 OFFICE TOWERS

that have been LEED® Gold certified, totalling 1.4 million square feet, and the

DELTA TORONTO , a premium 4-star, 560-

room next generation hotel.


20

Overview | Lorem


Business Integrity Value Creation



Data Tables

OPERATIONAL EXCELLENCE


We believe that improving the way we operate buildings under our management and meet our tenants’ needs is crucial to ensuring the long-term performance and value of our clients’ assets.


21

GRI 19

Business Performance | Operational Excellence

Overview


Our Approach

Our commitment to operational excellence drives our ambition to deliver high-quality tenant service, operate safe and secure buildings, and improve the environmental footprint of buildings under our management.



PRIORITY

OBJECTIVE

2014 ACHIEVEMENTS

2015 ACTIONS

Tenant Satisfaction

Strive to provide the highest level of service satisfaction that exceeds tenant expectations

Achieved a 95.8% satisfaction score based on 1,025 responses to a (randomly generated) tenant survey that rates how our property teams delivered service

Continue to maintain our service level through ongoing collaboration and feedback

Safety and Security

Enhance tenant safety and preserve asset integrity

Updated our national emergency response plans based on the Canadian Incident Management System

Roll out our updated emergency response plans across the business

Green Building Certifications

Increase the percentage of green certified buildings in our portfolio

Achieved nine LEED® Gold certifications and attained a 68% BOMA BESt portfolio certification level for buildings under our management

Continue to pursue and maintain green certifications for 100% of the eligible portfolio




A retrofit and façade replacement project was undertaken to reposition and revitalize 1535 Meyerside Drive (Mississauga, Ontario) located within the Dixie Business Park. In a market where there is significant available commercial inventory, this building is fully leased.


22

GRI DMA-PR | PR5


Overview


Our Approach

By understanding our tenants’ changing needs, we are able to enhance our customer service, promote tenant safety, support tenant health and wellness, and preserve asset integrity.






Our number one priority remains ensuring tenant safety, satisfaction and comfort. Increasingly, this includes promoting the health and wellness of occupants through the monitoring and maintenance of indoor air quality, the support of green cleaning practices, and the addition of amenities such as bicycle racks, green spaces, and access to natural light.

TENANT SATISFACTION Our commitment to providing tenants with the highest standard of service is founded on proactive management, open communication and personalized service. We provide an online platform, OneServe, to receive service or maintenance requests. On an ongoing basis, following the completion of a service request,

we conduct a random survey that allows tenants to rate the overall quality of our response and resolution times, and the attitude and courtesy of our staff. We recognize the exceptional customer service efforts of our employees through formal and informal recognition programs.

SAFETY AND SECURITY Our Security and Life Safety Services Group is focused on ensuring the resilience of our critical infrastructure, training our people and evolving our emergency plans to address potential threats.

Last October, in an ongoing effort to ensure effective emergency preparedness and to test the strength and resilience of our emergency response plan, GWL Realty Advisors participated in a live disaster simulation exercise in downtown Toronto involving the CRE-FDSG and Toronto emergency service members.

As a founding member of the Commercial Real Estate Financial District Security Group (CRE-FDSG) and a member of the Security Risk Management Advisory Council (a BOMAestablished council), we collaborate with the industry to assess today’s security challenges to help us better protect our tenants and the properties under our management.

Incident and emergency plans, developed to address emergency response and business recovery, are based on the Canadian Incident Management System’s “all-hazards” approach. This lays the groundwork for us to consistently respond to varying situations from a single buildingspecific emergency to a multiproperty incident.


23

GRI DMA-PR | CRE8






Data Tables

GREEN BUILDING CERTIFICATIONS Our managed office, industrial, and multi-residential properties proudly participate in BOMA BESt and LEED® sustainable building rating systems. These systems are considered the high-water marks for the design, construction and operation of green buildings. For owners and tenants, such certifications provide credibility, instil confidence, promote

comparability, and help qualify and quantify the benefits of sustainable assets.

BOMA BESt Certifications

LEED® Certifications

Qualifying criteria include the use of sustainable materials, innovative design and construction, the promotion of occupant health and good indoor environmental quality, the creation of sustainable and connected communities, and building resource efficiency, covering energy, water, and waste management.

About This Report

20

300

Number of buildings

250

Number of buildings

GRI Index

200 150 100

15

In 2014, Purdy’s Wharf, located in Halifax, NS, became the first commercial property in Atlantic Canada to be given a LEED® designation in the Existing Building: Operations and Maintenance category by the Canada Green Building Council.

10

5

50 0

10

11

12

13

14

Year Note: The number of BOMA BESt certifications declined in 2014 due to asset dispositions and the intent to time re-certifications for participation in BOMA Canada’s newly released portfolio program for industrial certification.

0

10

11

12

13

14

Year Note: All but one asset is certified Gold.


24

Overview | Lorem

GRI CRE3


SUSTAINABILITY



Sustainability

Employer of Choice

Data Tables





25

GRI 19 | DMA-EN | EN6 | EN19 | CRE1 | CRE2 | CRE3


Overview


Our Approach




PRIORITY

OBJECTIVE

2014 ACHIEVEMENTS

2015 ACTIONS

Energy Efficiency




Waste Reduction




Water Management




Sustainability

Employer of Choice



GRI Index






26

GRI EN5 | EN6 | EN8 | EN15 | EN16 | EN17 | EN18 | EN19 | EN23 | CRE1 | CRE2 | CRE3


Overview

Sustainability Performance at a Glance (2007–2014)

Our Approach

By setting targets, driving reductions and measuring results, we demonstrate that environmental sustainability is good management, enabling us to improve building performance and efficiency.

Operational Excellence Employer of Choice

Data Tables

27%

10 8 6 4 2 0

About This Report

07

08

09

10

11

12

13

14

decrease in GHG emissions intensity (Scope 1, 2 and 3)

Energy Intensity 40

7%

30

20

d ecrease in energy intensity

10

0

07

08

09

10

Year

12

13

14

Landfill Waste and Recyclables

140

30

21%

120 100 80 60

decrease in water intensity

40 20 0

11

Year

Water Intensity

Intensity (litres/ft2)

GRI Index

CO2

12

Value Creation

Sustainability

GHG Emissions Intensity

Intensity (ekWh/ft2)

Business Integrity

Intensity (tCO2e/1,000 ft2)

07

08

09

10

11

12

13

14

31%

25 (000s tonnes)


20 15

d ecrease in waste

10 5 0

07

08

Year

09

10

11

12

13

14

Year Landfill waste Recyclables


27

GRI DMA-EN | CRE3


Overview


Our Approach

Improving our energy efficiency is fundamental to how we operate our business. It drives us to implement innovative building solutions which lead to lower building operating costs, reductions in our greenhouse gas emissions, and improvements to the overall efficiency of our assets under management.



Sustainability

Employer of Choice


REDUCING ENERGY CONSUMPTION Energy audits are conducted and management plans are put in place where significant reductions can be made. Energy conservation projects executed by our property management teams touch on all elements of a building’s systems: lighting, ventilation, heating and cooling, automation and control, and the building envelope. The Sustainability Team compares our performance against industry benchmarks, regional averages and internal performance measures. In 2015, we will be formalizing our energy and carbon reduction targets.

CARBON MONITORING AND MEASUREMENT Our carbon management strategy is focused on increasing energy efficiency, waste reduction and recycling efforts, water conservation,

as well as exploring options to use renewable energy at the buildings under our management. In 2015, we will continue to review opportunities to increase the use of renewable energy where technically and economically feasible.

Waste and Water Management We are working collaboratively with our tenants and service providers to reduce waste production, increase waste diversion and reduce water consumption.

WASTE MANAGEMENT Managing waste helps to reduce landfill costs and improve the environmental footprint of buildings under our management. Our property management teams ensure recycling is available for a broad range of waste streams, including traditional recyclables (paper, cans,

bottles), and works to enhance or introduce newer streams such as organics, electronic waste, batteries, toner cartridges and fluorescent lighting, where viable. Third-party waste audits are used to educate staff, tenants and residents on better waste management and recycling practices. In 2015, we will be formalizing waste reduction targets.

WATER MANAGEMENT Faced with the increased frequency of droughts, floods and other extreme weather events around the globe, water management is a growing focus within the commercial real estate sector, and we have taken a leadership role. Water management is an important part of how we improve the operational performance and environmental sustainability of the buildings under our management.

In 2014, our Sustainability Team led a Water Benchmarking and Conservation Program to help us set a national five-year water reduction target as well as individual targets at 81 office properties. The aim is to reduce our water consumption by 8.4% by 2018, from a 2013 baseline. We will be focused on continuing improvements in water efficiency through such things as low-flow fixtures, intelligent irrigation systems, and enhanced control systems for cooling towers.

The current

8.4%

WATER REDUCTION TARGET

set for 2018 builds upon the 25% reduction achieved between 2007 and 2013.


28

Overview | Lorem


EMPLOYER OF CHOICE

Business Integrity Value Creation Operational Excellence Sustainability

Employer of Choice


Our people are at the heart of our business. Investing in our talent and ensuring the health, safety and well-being of our staff are critical to our success. These actions drive our focus on developing a highly motivated and engaged workforce.


29

GRI 19 | DMA-LA

Business Performance | Employer of Choice

Overview


Our Approach

We strive to be an employer of choice, recruiting and retaining the most talented people, developing their skills and providing a healthy and safe environment where people feel supported and empowered to succeed.



Our employee engagement strategy and activities are aligned with five key drivers of employee engagement: career opportunity, performance management, employer reputation, resources and work processes. Progress on our strategy is reported to senior leaders on a monthly basis.

PRIORITY

OBJECTIVE

2014 ACHIEVEMENTS

2015 ACTIONS

Employee Engagement

Engage our employees on the progress we are making as a business

74% of employees participated in the 2014 engagement survey

Implement action plans to address the five drivers of employee engagement

Employer of Choice


Talent Attraction and Development

Resurvey in 2016

Invest in talent and develop the skills of our employees

Approved 119 training and development applications valued at approximately $200,000

Instil a culture of safety and well-being across the company

Launched occupational health and safety (OH&S) awareness training. 96% of employees completed the training

GRI Index Health, Well-being and Safety

78% of employees believe we are a socially responsible employer

Extended our parent company’s “Take the Lead” leadership training program to 300 leaders across the country Train newly hired employees within the first 30 days of being hired

Improved our risk prevention programs related to slips and falls, contractor safety, electrical safety, confined spaces and working at heights Investing in Communities

Inspire lasting change in communities

Continue to invest in employee training and leadership development

Recognized for 10 years of support of Habitat for Humanity Achieved an 8% increase in staff contributions to the United Way

Strengthen our contractor safety management program Launch our mental health training Continue to support community organizations and measure our impacts


30

GRI DMA-LA | LA2 | LA10


Overview Forty-one building operations staff in Ontario and Alberta took the Building Operator Certification Program offered through the Canadian Institute for Energy Training. At the end of 2014, GWL Realty Advisors had more staff complete this training than any other organization in Canada.



Employer of Choice


Management and Performance (cont’d) We are a relationship business that is built on trust. Our people make us successful. It is through their expertise, diverse experience, motivation and commitment that we are able to maintain strong relationships with clients and tenants, run a profitable and innovative business, and provide our clients with the best real estate investment advice.

TALENT ATTRACTION AND DEVELOPMENT Our commitment to employee training and career development is evident throughout the company. Our continuing education fund provides an allowance per year of $2,000 per employee. We are committed to growing the capabilities of our leaders. The “Take the Lead” program, launched in 2014, is designed to help managers broaden their perspective

and gain a better understanding of people issues, business challenges and leadership styles.

systems, preparing them to identify and implement energy-saving opportunities.

We take a proactive approach to identifying the professional development needs of our talent, supporting programs such as the Building Operator Certification Program offered through the Canadian Institute for Energy Training (CIET). This program allows our building operators to enhance their knowledge of different building

We build co-operative relationships that keep our talent pipeline rich. In 2014, we embarked on a multi-year program with Seneca College (Toronto, ON) that will help support the next generation of building operators.

HEALTH AND WELL-BEING A broad range of health and wellness programs are made available to our employees, including mental health awareness and an Employee and Family Assistance Program (EFAP), which provides support and information for employees and their families facing personal challenges.


31

GRI DMA-LA




Employer of Choice


SAFETY Oversight for OH&S performance is assigned to the National OH&S Advisory Committee, with representation from our 12 provincially based joint management-worker OH&S subcommittees. The committees meet monthly and communicate with our Executive Committee regularly. Our OH&S policies, procedures and programs anchor our safety management system and provide support for our zero injury goal. Third-party OH&S audits are conducted annually and the results are used to inform annual health and safety plans.

EMPLOYEE ENGAGEMENT Assessing the reputation of our business through the employee engagement survey helps measure where we stand and assess the progress we are making. Every 18 months, we run a comprehensive

survey across the company to learn employees’ views on what matters to them and on our role as an employer of choice.

INVESTING IN COMMUNITIES We seek to give our time and resources to make a positive difference in local communities. Our community strategy is focused on developing strong relationships with local stakeholders and advancing local causes that align with our business as a leading real estate advisor. Through The Great-West Life Assurance Company’s Stronger Communities Together™ program for community investment, we continued our support of the United Way and Habitat for Humanity in 2014. We also supported employees in a wide range of charitable activities across Canada, including Covenant House, Interval House, the Juvenile Diabetes Research Foundation, the Prostate Cancer Foundation, Ronald McDonald

Together with Great-West Life, we were recognized in 2014 for our ongoing commitment to Habitat for Humanity Greater Toronto Area. This year marked the completion of our 11th house.

House, The Salvation Army, the Credit Valley Hospital Foundation, the Hospital for Sick Children Foundation and many others.


32

GRI 13 | EN15 | EN16 | EN17

Overview Our Approach Business Performance Data Tables


DATA TABLES In accordance with GRI G4 Sustainability Reporting Guidelines, all environmental data is expressed in absolute terms and/or as intensity values. As such, these numbers do not take into account the impacts that new developments, fluctuations in occupancy and weather, or other factors outside the management control of GWL Realty Advisors may have on utility consumption and greenhouse gas emissions.

QUANTITATIVE DATA

2014

2013

2012

GRI Indicator

240,932

238,469

234,520

G4-EN15, EN16

178,801

179,331

179,214

G4-EN15, EN16

59,678

57,855

54,479

G4-EN15, EN16

2,452

1,283

827

G4-EN15, EN16

85,297

82,408

75,496

G4-EN15

Managed office

43,501

42,052

38,784

G4-EN15

Multi-residential

41,601

40,083

36,660

G4-EN15

196

273

52

G4-EN15

155,634

156,062

159,024

G4-EN16

135,300

137,279

140,430

G4-EN16

18,078

17,772

17,819

G4-EN16

2,256

1,010

776

G4-EN16

28,779

31,726

35,840

G4-EN17

ENVIRONMENT Greenhouse gas (GHG) emissions (tCO2e) GHG emissions (Scope 1 and 2)1, 2 Managed office Multi-residential Light industrial Direct GHG emissions (Scope 1)1, 2

Light industrial (common area for portfolio subset only) Energy indirect GHG emissions (Scope 2)1, 2 Managed office Multi-residential Light industrial (common area for portfolio subset only) Other indirect GHG emissions (Scope 3)3


33

GRI EN3 | EN5 | EN18 | EN23 | CRE1 | CRE3

Data Tables



QUANTITATIVE DATA

2014

2013

2012

GRI Indicator

7.47

7.45

7.42

G4-EN18, CRE3

Managed office

8.02

8.05

8.12

G4-EN18, CRE3

Multi-residential

6.21

6.06

5.78

G4-EN18, CRE3

1,050,379

1,032,363

1,012,560

G4-EN3

460,343

443,488

406,934

G4-EN3

457,308

438,065

401,168

G4-EN3

3,036

5,424

5,766

G4-EN3

538,915

546,561

559,022

G4-EN3

48,179

39,539

42,766

G4-EN3

2,941

2,775

3,837

G4-EN3

32.9

32.4

32.0

G4-EN5, CRE1

Managed office

33.7

33.3

33.5

G4-EN5, CRE1

Multi-residential

31.1

30.4

29.0

G4-EN5, CRE1

17,853

19,804

22,261

G4-EN23

5,561

5,719

5,973

G4-EN23

12,292

14,086

16,288

G4-EN23

0.560

0.622

0.707

G4-EN23

Managed office

0.249

0.257

0.271

G4-EN23

Multi-residential

1.280

1.476

1.727

G4-EN23

GHG emissions intensity, Scope 1 and 2 (tCO2e/1,000 square feet)4

Energy consumption (MWh) Energy consumed within the organization5 Non-renewable fuel consumed Natural gas (metered) Fuel oil Electricity purchased for consumption Steam purchased for consumption Chilled water purchased for consumption Energy intensity (ekWh/square foot)6

Waste Waste generated – absolute (tonnes)7 Managed office Multi-residential Waste generated – intensity (tonnes/1,000 square feet)7


34

GRI EN8 | EN23 | CRE2 | CRE8

Data Tables



QUANTITATIVE DATA

2014

2013

2012

GRI Indicator

Waste to landfill9

17,853

19,804

22,261

G4-EN23

Recycled10

23,923

10,424

10,640

G4-EN23

N/A

N/A

N/A

G4-EN23

57%

34%

32%

G4-EN23

3,450,425

3,561,481

3,678,582

G4-EN8

Managed office

1,657,094

1,733,770

1,842,438

G4-EN8

Multi-residential

1,793,330

1,827,711

1,836,144

G4-EN8

108.1

111.9

116.8

CRE2

74.3

77.8

83.5

CRE2

186.8

191.5

194.7

CRE2

70%

80%

45%

CRE8

Office

73

62

47

CRE8

Multi-residential

50

61

38

CRE8

Open-air retail

4

3

1

CRE8

Light industrial

95

139

61

CRE8

Waste disposal methods (tonnes)8

Recovery for energy Waste to landfill diversion rate (%)10 Water11 Water withdrawn (m3)

Water consumption intensity (litres/square foot) Managed office Multi-residential Green building certifications, labelling or rating Overall % of assets % of assets that received a green building certification12 By asset class


35

GRI CRE8

Data Tables

Overview

QUANTITATIVE DATA

LEED®


About This Report

2013

2012

GRI Indicator

18

10

6

CRE8

216

262

144

CRE8

1

N/A

N/A

CRE8

By type of certification

Our Approach

Data Tables

2014

BOMA BESt Built Green (NRCan)

1. Scope 1 and 2 GHG emissions are consolidated based on an operational control approach. 2.

Scope 1 GHG and Scope 2 emissions relate to assets under management where we have operational control. Our base year of reporting is 2007. Please refer to page 27, where we present our performance against our base year emissions. We use the World Business Council for Sustainable Development (WBCSD) GHG Protocol Corporate Accounting and Reporting Standard to guide our methodology for calculating GHG emissions. The gases included in the calculation are carbon dioxide, methane and nitrous oxide. The emission factors and global warming potentials are based on the Environment Canada National Inventory Report (NIR), Enwave Studies and the International Panel on Climate Change factors, respectively. Scope 1 emissions relate to natural gas and fuel oil consumption and exclude GHG emissions associated with backup generator fuel use and refrigerant top-ups. Scope 2 emissions relate to purchased electricity, steam, and chilled water consumption.

3.

Scope 3 GHG emissions include emissions from waste to landfill and water distribution for assets under management where we have operational control. We use the WBCSD GHG Protocol Corporate Accounting and Reporting Standard to guide our methodology for calculating GHG emissions. The gases included in the calculation are carbon dioxide, methane and nitrous oxide. The emission factors and global warming potentials are based on the Environment Canada NIR and the International Panel on Climate Change factors, respectively.

4.

GHG emissions intensities relate to Scope 1 and 2 for office and multi-residential properties only. The total square footage for the denominators used to calculate the emissions intensities is based on net rentable area: 2014 = 22,303,281 ft2 (office) + 9,602,700 ft2 Multi-Unit Residential Building (MURB) = 31,905,981 ft2; 2013 = 22,273,566 ft2 (office) + 9,544,981 ft2 (MURB) = 31,818,547; ft2 and 2012 = 22,068,545 ft2 (office) + 9,431,606 ft2 (MURB) = 31,500,151 ft2. The gases included in the calculation cover carbon dioxide, methane and nitrous oxide.

5.

Energy consumed within the organization relates to our managed office and multi-residential portfolio of assets under management. It includes energy consumption from non-renewable fuel sources, purchased electricity, steam and chilled water consumption.

6.

Energy intensity covers the energy consumed within our organization in the managed office and multi-residential portfolio, covering natural gas and fuel oil, purchased electricity, steam and chilled water consumption. We report energy intensity based on ekWh per square foot of net rentable area.

7.

Waste absolute data and intensity data relate to the non-hazardous waste generated at our managed office and multi-residential portfolio of assets under management.

8.

Waste disposal methods have been determined using the information provided to us by the waste disposal contractor.

9.

Landfill waste includes non-hazardous waste at our managed office and multi-residential portfolio of assets under management.

GRI Index

10. Recycled waste applies to our managed office portfolio of assets under management only for the years 2007–2013. In 2014, recycling increased significantly due to the inclusion of recycled waste from our managed multi-residential portfolio of assets under management. Since the adjusted baseline year, GWLRA’s waste diversion rate for offices has increased by 28.5%. The office diversion rate in 2014 was 67.0%, while the diversion rate for multi-residential properties was 50.6%. 11. The total water consumed and intensity data relates to the water withdrawn from municipal water supplies at our managed office and multi-residential portfolio of assets under management. We calculate the water withdrawn using the information provided by our utility providers. 12. Data represents the percentage of eligible office and multi-residential buildings with an active green certification during the reporting year. Several buildings may encompass a single asset, as reported in the main body of this report.


36

GRI LA5 | LA6 | LA9 | CRE6

Data Tables



QUANTITATIVE DATA

2014

2013

2012

GRI Indicator

31%

N/A

N/A

G4-LA5

100%

100%

100%

CRE6

620

N/A

N/A

G4-LA9

5.3

N/A

N/A

G4-LA9

Injury rate (recordable incident rate)14

1.45

N/A

N/A

G4-LA6

Severity rate15

1.60

N/A

N/A

G4-LA6

Lost day rate16

0.48

N/A

N/A

G4-LA6

1

N/A

N/A

G4-LA6

12

N/A

N/A

G4-LA6

0

0

0

G4-LA6

SAFETY Joint management-worker health and safety (H&S) committees % of workforce in joint management-worker H&S committees13 OHSAS 18001 management system % of organization operating under a safety management system aligned with OHSAS 18001 Health and safety training Number of employees receiving health and safety training Number of hours of safety received per employee Occupational health and safety performance

Occupational diseases Total number of near miss incidents Fatalities17

13. The joint management-worker H&S committees have been established in all regions nationally and consist of supervisors and workers. Workers represent no less than 50% of those members on the joint health and safety committees, over which an elected co-chair presides with an appointed employer co-chair. 14. The injury rate is the number of recordable incident cases per 200,000 employee hours worked (number of recordable cases X 200,000/number of employee hours worked). In 2014, there were a total of nine recordable incidents, consisting only of minor injuries (e.g., strains, sprains). 15. The severity rate is the number of lost workdays divided by the total number of recordable incidents. 16. The lost day rate is the number of lost time cases per 200,000 hours worked (number of lost time cases X 200,000/number of employee hours worked). 17. Fatalities relate to our employees.


37

GRI 9 | 10 | LA1

Data Tables



QUANTITATIVE DATA

2014

2013

2012

GRI Indicator

937

867

N/A

G4-9

Number of employees (female)

451

416

N/A

G4-10

Number of employees (male)

486

451

N/A

G4-10

% of female employees

48%

48%

N/A

G4-10

% of male employees

52%

52%

N/A

G4-10

879

814

N/A

G4-10

Number of employees (part-time)

28

26

N/A

G4-10

Number of employees (temporary or contractors)

30

27

N/A

G4-10

Total number of new employee hires

211

139

N/A

G4-LA1

New employee hire rate (% of total employees)

23%

16%

N/A

G4-LA1

EMPLOYER OF CHOICE Total employees18 Total number of employees Employees by gender

Employees by contract Number of employees (permanent)

New employee hires19


38

GRI LA1

Data Tables



QUANTITATIVE DATA

2014

2013

2012

GRI Indicator

58

28

N/A

G4-LA1

% of new employee hires below 30 years old

27%

20%

N/A

G4-LA1

New employee hires between 30 and 50 years old

120

82

N/A

G4-LA1

% of new employee hires between 30 and 50 years old

57%

59%

N/A

G4-LA1

33

29

N/A

G4-LA1

16%

21%

N/A

G4-LA1

New employee hires (female)

115

83

N/A

G4-LA1

% of new employee hires (female)

55%

60%

N/A

G4-LA1

96

57

N/A

G4-LA1

45%

41%

N/A

G4-LA1

Age group New employee hires below 30 years old

New employee hires above 50 years old % of new employee hires above 50 years old Gender

New employee hires (male) % of new employee hires (male)


39

GRI LA1

Data Tables



QUANTITATIVE DATA

2014

2013

2012

GRI Indicator

Employee turnover number

150

129

N/A

G4-LA1

Employee turnover rate (% of total employees)

16%

15%

N/A

G4-LA1

28

N/A

N/A

G4-LA1

19%

N/A

N/A

G4-LA1

64

N/A

N/A

G4-LA1

43%

N/A

N/A

G4-LA1

58

N/A

N/A

G4-LA1

39%

N/A

N/A

G4-LA1

81

61

N/A

G4-LA1

54%

47%

N/A

G4-LA1

69

68

N/A

G4-LA1

46%

53%

N/A

G4-LA1

Employee turnover20

Age group Employee turnover below 30 years old % of employee turnover below 30 years old Employee turnover between 30 and 50 years old % of employee turnover between 30 and 50 years old Employee turnover above 50 years old % of employee turnover above 50 years old Gender Employee turnover (female) % of employee turnover (female) Employee turnover (male) % of employee turnover (male)

18. Total employees represents GWL Realty Advisors and our wholly owned subsidiary Vertica. It includes permanent, part-time and contract employees. We do not have unionized employees. 19. New employee hire numbers represent employees hired during the reporting year. 20. Employee turnover numbers include all departures from the company, both voluntary and involuntary, including resignations, terminations, retirements, etc. Some turnover occurs due to factors outside management control, such as through the acquisition and disposition of properties.


40

GRI EC1

Data Tables



QUANTITATIVE DATA

2014

2013

2012

GRI Indicator

Health

6

5

8

G4-EC1

Education

2

3

0

G4-EC1

12

12

13

G4-EC1

3

3

4

G4-EC1

Yes

Yes

Yes

G4-EC1

$251,552

$255,771

$254,776

G4-EC1

1,296

786

1,040

G4-EC1

N/A

N/A

N/A

G4-EC1

COMMUNITY INVESTMENT Type of cause21

Community support and development Housing Type of investment Charitable contributions22 Breakdown of investment Cash contribution In-kind giving, product or service donations (hours)23 Management overhead 21. Number of organizations (by type) which GWLRA supported.

22. These values represent the sum total of charitable contributions made to external organizations from: 1) Great-West Life on GWLRA’s behalf (e.g., monies contributed to Habitat for Humanity); 2) Monies raised for Habitat for Humanity from GWLRA partner organizations and GWLRA employees; 3) Monies donated by GWLRA staff to the United Way campaign; 4) Monies donated by GWLRA to various causes (e.g., education, health, arts and culture, civic projects, community support and development, etc.). 23. GWLRA employee hours contributed for Habitat for Humanity build days.


41

GRI 9 | 17 | 18 | 28 | 29 | 30 | 33

Overview

ABOUT THIS REPORT

Our Approach

We are committed to accurate, transparent and focused reporting on the topics that matter most to our business and our stakeholders.


integrate both financial and nonfinancial aspects into our business.

Data Tables

We strive to continuously improve the scope of our report, and we do so on an annual basis as part of our commitment to being open and transparent about our business.

About This Report

GRI Index

As we evolve the quality and content of our report, we will consider obtaining external assurance.

REPORTING SCOPE This annual review covers the business performance of GWL Realty Advisors Inc. and its wholly owned subsidiary, Vertica Resident Services Inc., for the 2014 calendar year. Our previous annual review was published last year for the 2013 calendar year. We have expanded the scope of our report this year as part of our commitment to inform a broader stakeholder group on how we

REPORTING STANDARDS We developed the content of this report in a collaborative way, involving more than 30 internal stakeholders who provided their perspective on which topics are most important to the company and its stakeholders. We considered a broad sustainability context in defining the scope of the report, informed by a review of sector standards, peer reviews, and our business context.

We were guided by international, sustainability and sector reporting guidelines. These included the International Integrated Reporting Council (IIRC) Framework, the Global Real Estate Sustainability Benchmark Survey (GRESB), the Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines and the Construction and Real Estate Sector Supplement (CRESS). Please refer to our GRI Index to understand how elements of the GRI Reporting this report.

Our environmental (energy, greenhouse gas emissions, water, and waste) data is provided for the assets under management where we have operational control, specifically relating to our office and multiresidential real estate properties, unless specified otherwise.

DATA COVERAGE Data in this report covers our operations across Canada as of December 31, 2014, unless otherwise stated.

Our online report saves paper and makes it easy for readers to access supplementary information. GWL Realty Advisors | 2014 Annual Review

42

GRI 11 | 32

Overview Our Approach Business Performance Data Tables About This Report GRI Index

GRI INDEX GENERAL STANDARD DISCLOSURES

Sections

Pages


4-5


STRATEGY AND ANALYSIS G4-1

Statement from the most senior decision-maker

ORGANIZATIONAL PROFILE G4-3

Name of the organization

Back cover

50

G4-4

Primary brands, products and services


10

G4-5

Location of the organization’s headquarters

Back cover

50

G4-6

Number and names of countries where the organization operates


7

G4-7

Nature of ownership and legal form


10

G4-8

Markets served


6-7

G4-9

Scale of the reporting organization

Performance Highlights, Data Tables, About This Report

6-7, 38, 42

G4-10 Size of the workforce

Data Tables

38

G4-11 Employees covered by collective bargaining agreements

GRI Index

43

G4-12 Organization’s supply chain

Business Integrity - Responsible Business Practices

16

G4-13 Significant changes to size, ownership or supply chain

N/A

N/A

G4-14 Precautionary principle

Responsible Management Risk Management

12

We do not have unionized employees.

We’ve made no significant changes to size, ownership or supply chain.


43

GRI 32

GRI Index | General Standard Disclosures

Overview

GENERAL STANDARD DISCLOSURES

Sections

Pages

Our Approach

G4-15 Externally developed economic, environmental and social initiatives


9

G4-16 List of memberships of associations


9



IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

Data Tables

G4-17 Entities included in the organization’s financial statements

About This Report

42

About This Report

G4-18 Process for defining report content and aspect boundaries

About This Report – Reporting Standards

42

G4-19 Material aspects identified

Vision and Strategy, Business Integrity, Value Creation, Operational Excellence, Sustainability, Employer of Choice

11, 15, 18, 22, 26, 30

G4-20 Aspect boundary within the organization

N/A

N/A

Not reported this year but we will explore doing so in the future.

G4-21 Aspect boundary outside the organization

N/A

N/A


G4-22 Restatements of information provided in previous reports

N/A

N/A

This is our first report.

G4-23 Significant changes from previous reporting periods

N/A

N/A

This is our first report.

GRI Index


44

GRI 32




Sections

Pages

G4-24 Stakeholder groups


13

G4-25 Basis for identification and selection of stakeholders


13

G4-26 Organization’s approach to stakeholder engagement


13

G4-27 Key topics and concerns raised through stakeholder engagement

N/A

N/A

G4-28 Reporting period

About This Report

42

G4-29 Date of most recent previous report

About This Report

42

G4-30 Reporting cycle

About This Report

42

G4-31 Contact point for questions

Back cover

50

G4-32 GRI Content Index

GRI Index

43-49

G4-33 Assurance

About This Report

42

G4-34 Governance structure


12

G4-35 Process for delegating authority for economic, environmental and social (EES) topics


12

G4-36 Executive-level position with EES responsibility


12

G4-38 Composition of the highest governance body and its committees


12


STAKEHOLDER ENGAGEMENT


REPORT PROFILE

GOVERNANCE


45

GRI 32




Sections

Pages

G4-42 Highest governance body’s and senior executives’ roles


12

G4-45 Highest governance body’s role in identifying EES risks and opportunities


12

G4-46 Highest governance body’s role in reviewing risk management for EES


12

G4-48 Highest committee that formally reviews and approves sustainability report


12

G4-56 Values, principles, standards and norms of behaviour

Responsible Management, Business Integrity

12, 16

G4-57 Mechanisms for seeking advice on ethical and lawful behaviour

Business Integrity - Ombudsman and Whistleblowing

16


ETHICS AND INTEGRITY


46

GRI 32

GRI Index



Sections

Pages

Performance Highlights, Data Tables

6-7, 41

ECONOMIC G4-EC1

Direct economic value generated and distributed


G4-DMA Indirect economic impacts disclosures on management approach

Value Creation

19-20

Data Tables

G4-EC7

Value Creation

19-20

About This Report

G4-EC8 Significant indirect economic impacts

Value Creation

19-20

G4-DMA Procurement practices disclosures on management approach

Business Integrity

16

G4-DMA Environment disclosures on management approach

Sustainability

26

G4-DMA Energy disclosures on management approach

Sustainability

28

G4-EN3

Energy consumption within the organization

Data Tables

34

G4-EN5

Energy intensity


27, 34

G4-EN6

Reduction of energy consumption

Sustainability

26-27

G4-DMA Water disclosures on management approach

Sustainability

28

G4-EN8


27, 35

G4-DMA Greenhouse gas (GHG) emissions disclosures on management approach

Sustainability

28

G4-EN15 Direct GHG emissions (Scope 1)


27, 33

G4-EN16 Energy indirect GHG emissions (Scope 2)


27, 33

G4-EN17 Other indirect GHG emissions (Scope 3)


27, 33

G4-EN18 GHG emissions intensity


27, 34

GRI Index


Development and impact of infrastructure investments

ENVIRONMENTAL

Total water withdrawal


47

GRI 32

GRI Index | Specific Standard Disclosures

Overview


Sections

Pages

G4-EN19 Reduction of GHG emissions

Sustainability

26-27

G4-DMA Waste disclosures on management approach

Sustainability

28


G4-EN23 Weight of waste by type and disposal method


27, 34-35

Data Tables

SOCIAL

About This Report

Labour G4-DMA Employment disclosures on management approach

Employer of Choice

30-31

G4-LA1 New employee hires and turnover

Data Tables

38-40

G4-LA2 Employee benefits

Employer of Choice

31

G4-DMA Occupational health and safety disclosures on management approach

Employer of Choice - Safety

32

G4-LA5 Formal joint management-worker health and safety committees

Data Tables

37

G4-LA6 Injuries, diseases and fatalities

Data Tables

37

G4-DMA Training and education disclosures on management approach

Employer of Choice

31

G4-LA9 Average hours of training per year per employee by gender, and by employee category

Data Tables

37

G4-LA10 Skills management and lifelong learning

Employer of Choice

31

G4-DMA Local communities disclosures on management approach

Value Creation

19

G4-DMA Anti-corruption disclosures on management approach

Business Integrity

16

G4-SO4 Communication and training on anti-corruption policies and procedures

Business Integrity

16

Our Approach

GRI Index


Society


48

GRI 32



Sections

Pages

G4-SO5 Confirmed incidents of corruption and actions taken

Business Integrity

16

G4-DMA Compliance disclosures on management approach

Business Integrity

16


Product Responsibility

Data Tables

G4-DMA Customer health and safety disclosures on management approach


23

About This Report

G4-DMA Product and service labelling disclosures on management approach


24

G4-PR5 Results of surveys measuring customer satisfaction


23

G4-DMA Customer privacy disclosures on management approach

Business Integrity

16

G4-PR8 Complaints regarding breaches of customer privacy and losses of customer data

Business Integrity

16

G4-DMA Compliance disclosures on management approach

Business Integrity

16

CRE1 Building energy intensity


26-27, 34

CRE2 Building water intensity


26-27, 35

CRE3 GHG emissions intensity from buildings


25-28, 34

CRE6 Percentage of the organization operating in verified compliance with an internationally recognized health and safety management system

Data Tables

37

CRE8 Type and number of sustainability certifications, rating and labelling schemes for new construction, management, occupation and redevelopment

Operational Excellence, Data Tables

24, 35-36

GRI Index


Design: THE WORKS DESIGN COMMUNICATIONS www.worksdesign.com

GRI Index | Specific Standard Disclosures

GRI G4 SECTOR-SPECIFIC


49

GRI 3 | 5 | 31

Corporate Profile GWL Realty Advisors is a leading real estate investment advisor providing comprehensive asset management, property management, development and specialized real estate advisory services to pension funds and institutional clients. We operate across Canada, with 12 offices in major markets in British Columbia, Alberta, Manitoba, Ontario, Quebec and Nova Scotia. We employ more than 950 employees. Corporate Head Office GWL Realty Advisors Inc. 330 University Avenue, Suite 300 Toronto, ON M5G 1R8

Feedback We welcome and encourage your feedback on our annual review. Please direct any questions or comments you may have regarding the content of this report to Dahlia de Rushe, Director, Marketing & Communications.