TIAA Global Asset Management Earns Accolades for Leadership in Commercial Real Estate Sustainability
Named ENERGY STAR Partner of the Year for Ninth Consecutive Year
NEW YORK – April 6, 2016 – (RealEstateRama) — Long recognized for responsible investing, TIAA Global Asset Management identified a unique opportunity to create significant environmental benefits though energy management, water conservation, waste reduction and other operational best practices via its 163 million square foot, $91.6 billion real estate portfolio. The organization has received recognition from prominent industry organizations driving the effort to embrace sustainability and reduce the risk and impact of climate change, including earning its ninth consecutive ENERGY STAR Partner of the Year Award.
Since implementing the proprietary Global Real Estate Sustainability Initiative (GRESI) in 2007, the organization has achieved overall energy efficiency improvement of 21.2% across its U.S. real estate portfolio and saved over $100 million in utility costs (895,591,600 kWhrs avoided) and reduced CO2 emissions (467,800 metric tons) which equates to removing approximately 91,700 cars from the road for one year.
As one of the world’s largest institutional real estate investors with equity investments in nearly 900 office, retail, industrial and residential assets, implementing sustainability measures across the portfolio aligns with TIAA’s view that environmental, social and governance factors can produce attractive long-term returns while also contributing to positive societal outcomes, broader economic development and a healthy environment.
The organization demonstrates leadership through active involvement with and recognition from:
- Environmental Protection Agency’s ENERGY STAR Program – TIAA’s ninth consecutive ENERGY STAR Partner of the Year Award (seventh at the Sustained Excellence level), recognizes the firm’s efforts to reduce harmful carbon pollution through superior energy efficiency. Using ENERGY STAR benchmarking tools along with TIAA’s own GRESI monitoring protocols ensures that progress is tracked and best practices are implemented across all portfolios. At 801 Brickell Avenue in downtown Miami (see case study below), the installation of efficient systems reduced energy consumption by 32% and increased the property’s ENERGY STAR score from 76 to 90 in just four years.
- Department of Energy’s Green Lease Leader Award – TIAA is one of 13 organizations designated as a Green Lease Leader in 2015/2016 by the DOE and Institute for Market Transformation for effectively using leases to drive sustainability efforts between tenants and landlords. Green leases may include clauses that allow for sharing costs of energy-saving improvements, ensuring spaces are built to energy-efficient standards, and increasing transparency by sharing access to energy consumption data and ENERGY STAR scores. Tenant-landlord cooperation will assist compliance with energy benchmarking and transparency laws, ultimately driving additional energy and water savings.
- Department of Energy’s Better Buildings Challenge – In 2011, TIAA committed to achieving a 20% reduction in energy use in its office and multifamily properties by 2020 via the Better Buildings Challenge. As a cornerstone of the President’s Climate Action Plan, the program aims to double American energy productivity by 2030 while motivating corporate and public sector leaders across the country to save energy through commitments and investments. TIAA is ahead of its target and expects to exceed its commitment.
- U.S. Green Building Council’s Leadership in Energy and Environmental Design – Forty-one TIAA buildings have been LEED certified, a designation that aims to impact how buildings and communities are planned, constructed, maintained and operated. Projects pursuing LEED certification earn points across several areas that address sustainability issues to achieve a specific rating level. LEED-certified buildings are resource efficient, using less water and energy and reducing greenhouse gas emissions.
- Building Owners and Managers Association’s 360 Performance Program – Thirteen TIAA buildings have achieved this designation for operational best practices in the commercial real estate industry. The label demonstrates that a building is outperforming the competition across all areas of operations and management and often translates into measurable savings and operational efficiencies, as well as higher levels of tenant satisfaction.
“ENERGY STAR and the other programs we engage in complement and validate our commitment and sincerity to environmental stewardship,” said Nicholas Stolatis, senior director of global real estate sustainability and enterprise initiatives for TIAA Global Asset Management. “To achieve the triple bottom line of ‘people, planet and profit,’ our philosophy is that you can’t manage that which you don’t measure. We measure and then act on the data. This has led to successful financial outcomes for our stakeholders, demonstrated responsiveness to clients and tenants, and advanced our commitment to global citizenship.”
TIAA Global Asset Management’s real estate business and its affiliate TH Real Estate are also involved with or have been recognized by the ULI Greenprint Center/ Responsible Property Investment Council, United Nation Principles for Responsible Investment, Global Real Estate Sustainability Benchmark, the Real Estate Roundtable Sustainability Policy Advisory Committee, Association of Real Estate Funds ESG committee, Better Buildings Partnership, British Council for Shopping Centres sustainability committee, Green Property Alliance, International Council for Shopping Centres sustainability committee and the Carbon Disclosure Project.
“TIAA has set a high bar for the financial services industry by proving the significant value of comprehensive sustainability while also working to share knowledge and disseminate best practices,” said Jean Lupinacci, Chief of the ENERGY STAR Commercial and Industrial Branch at the U.S. Environmental Protection Agency. “Having a prominent financial services company at the forefront of the effort to reduce energy consumption demonstrates the ready opportunities and generates momentum for this crucial global issue.”
About TIAA Global Asset Management
TIAA Global Asset Management provides investment advice and portfolio management through Teachers Insurance and Annuity Association (TIAA) and more than a dozen affiliated registered investment advisers. Collectively managing $854 billion in assets, the business provides access to innovative investment strategies through expertise that spans traditional and alternative asset classes, generating new investment opportunities for clients through a wide array of vehicles including funds, customized strategies and solutions. TIAA Global Asset Management is committed to TIAA’s legacy of helping individuals and institutional clients achieve long-term investment success and financial well-being.
TIAA (www.tiaa.org) is a unique financial partner. With an award-winning track record for consistent performance, TIAA is the leading provider of financial services in the academic, research, medical, cultural and government fields. TIAA has $854 billion in assets under management (as of 12/31/2015) and offers a wide range of financial solutions, including investing, banking, advice and guidance, and retirement services.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. ©2016 Teachers Insurance and Annuity Association, New York, NY 10017 C29732