MAKING BUSINESS BETTER
2014 Toronto-Dominion Centre Sustainability Report
Sustainability is what we do - supporting the Four Cornerstones of our tenants’ businesses Message from the General Manager In last year’s report we introduced our unique approach to sustainability reporting using “The Four Cornerstones of Business” framework. The framework describes how sustainability activities at Toronto-Dominion Centre support value creation in business by improving our tenants’ Financial, Human, Real and Brand Capitals. During 2014, we continued to add value through comprehensive sustainability efforts. Most importantly, at a time of significant competition and growing business expectations, managing through a strong sustainability lens benefits not only the environment and people, but is also a competitive advantage, ensuring business success for both our tenants and the Cadillac Fairview Corporation – today and tomorrow. TD Centre is continuing to demonstrate leadership and innovation in sustainability. For example, we are evolving the scope of sustainability by expanding from a traditional environmental focus to include the broader health and wellbeing of building occupants and tenant employees. Many of our initiatives are delivered in collaboration with our tenants and our stakeholders. The environmental quality campaign, LEED® CI pilot, green building tenant productivity study
and Energy Innovation Team, described in this report, are a few examples of our collaborative approach. We measure the outcomes of each campaign and tie goal setting to our sustainability key performance indicators. To date, we have targets for green building certification, energy and water consumption and waste diversion. Responsible business is smart business. This simple perspective is a central element of how Cadillac Fairview is Making Business Better for all TD Centre tenants. I welcome you to continue to learn about sustainability innovation and value creation at TD Centre through this report and other resources on our website www.tdcentre.com. Sincerely,
David Hoffman General Manager, Toronto-Dominion Centre
THE FOUR CORNERSTONES OF BUSINESS
1FINANCIAL
CAPITAL
ENHANCING PROFITABILITY
The FINANCIAL CAPITAL Cornerstone is supported through initiatives that enable operational cost containment, such as managing energy and waste costs.
3REAL
CAPITAL
ENHANCING THE WORKPLACE ENVIRONMENT The REAL (ESTATE) CAPITAL Cornerstone is supported through initiatives that improve the building performance, appearance and operating capabilities, such as capital investments and process changes.
2HUMAN
CAPITAL
ENHANCING HUMAN HEALTH AND PRODUCTIVITY The HUMAN CAPITAL Cornerstone is supported through initiatives that promote employee productivity and well-being, including occupant environmental quality and occupant awareness.
4BRAND
CAPITAL
ENHANCING REPUTATION The BRAND CAPITAL Cornerstone is supported through initiatives that enhance reputation, customer/employee loyalty and market perceptions, such as differentiated programs and certifications.
Toronto-Dominion Centre 2014 Sustainability Report
TDC Sustainability at a Glance
TOP ACHIEVEMENTS 2014
Toronto-Dominion Centre (TDC) continued to demonstrate sustainability leadership in 2014, building on accomplishments of previous years. We are proud to present the highlights of our sustainability performance and progress towards performance targets.
FINANCIAL CAPITAL
EQUIVALENT
to the energy used by
180,000
compared to 2013
$300K SAVED in base building
1,300
electricity cost
Toronto homes in
ONE YEAR
KILOGRAMS of waste reduced 2013/14
EQUIVALENT
to the annual waste produced by
471
ONTARIANS
80%
WASTE DIVERSION RATE
ACHIEVED for last two months of 2014
HUMAN CAPITAL
9%
TENANT satisfaction rate
80%
since 2012
of tenants would
RECOMMEND TDC
77%
EMPLOYEE engagement score
772 TRAINING HOURS BRAND CAPITAL
100%
$34M IN CAPITAL
LEED EBOM certified
DECREASE
expenditures in 2014
13%
EQUIVALENT to annual emissions of
1
ST
GREENHOUSE GAS EMISSIONS
747 CARS
since 2012
employee
REAL CAPITAL
in
11%
INCREASE
77%
INCREASE
Tear along this perforation for a summary of TDC’s sustainability initiatives and performance.
6.9%
REDUCTION
in normalized
ENERGY USE
TO PURSUE
LEED EBOM complex certification
to provide LEED CI
PARTNERSHIPS to tenants
1
TDC Sustainability at a Glance
ENVIRONMENTAL PERFORMANCE 2013-2014 Cadillac Fairview’s GREEN AT WORK™ program, launched in 2008, commits all properties to ongoing improvements in environmental performance. Last year marked the end of the first 5-year program phase and during this time TD Centre delivered a 13% energy reduction, 42% water reduction and 79% waste diversion. You can obtain in-depth data in our 2013 sustainability report.
Going forward, TDC has committed to improvement targets, amounting to a 2.5% annual reduction in energy, 2% in water consumption and an increase in waste diversion to 90%. The graphs on this page show TD Centre’s 2013 - 2014 performance and our 2015 reduction targets. Energy and water baselines have been normalized to 2014 for weather and occupancy which has changed from previous reporting years when they were normalized to the 2008 baseline year. This explains why numbers vary slightly from previous years.
ekWh
(millions)
178
166
33
162
31
150
40 35
64
21
30
67
19
58
20,000
44
44
2013
/sq. ft.
6
5.2
24,800
9,100
6,200
4.4
5 4
20
15,000
3
15
10,000
2
10 5,000
5 0
kgCO2e
28,400
25,000
25
67
50
tCO2e
30,000
/sq. ft.
200
100
GREENHOUSE GAS EMISSIONS AND INTENSITY ekWh
2014
2015 Target
Tenant electricity - lighting & plug load
Whole building intensity
District steam & chilled water
Base building and heating & cooling intensity
Natural gas & base building electricity
17,100 2,200 2013
0
0
1
16,200 2,400 2014
0
Indirect, Scope 3 emissions: tenant lighting & plug load, landfill waste Indirect, Scope 2 emissions: base building electricity, steam, chilled water Direct, Scope 1 emissions: natural gas, diesel, refrigerants
Energy consumption decreased by 6.9% in 2014 from 178 to 166 million ekWh. In 2015, TDC aims to reduce its energy consumption by 2.5%, in line with Cadillac Fairview’s GREEN AT WORK target. See Financial Capital section for more details on energy reduction.
Greenhouse gas emissions decreased 13% in 2014 from 28,400 to 24,800 tCO2e. Emissions arise from building energy consumption of natural gas, electricity, steam, chilled water and diesel. Other activities such as refrigeration and waste management also contribute to our emissions footprint. The reduction is attributed to improved energy efficiency and a less carbon-intensive electricity grid as electricity generation in Ontario is moving away from coal and relying more on hydroelectricity and other low-carbon fuel sources.
WASTE PRODUCTION AND DIVERSION
WATER CONSUMPTION AND INTENSITY
Tonnes
8,000 7,000
79
%
5,790
Diversion Rate
78
%
5,620
Litres
Litres
(millions)
80%
400
70%
350
/sq. ft.
337
63
361 68
354
80 70
60%
300
5,000
%
50
250
50
4,000
40%
200
40
3,000
30%
150
30
2,000
%
20
100
20
1,000
10%
50
10
0%
0
6,000
0
2013
2014
TDC’s waste production decreased by 3% in 2014 to 5,620 metric tonnes. Although our average waste diversion rate in 2014 decreased by 1%, our diversion was at 80% towards the end of the year. In the coming years we are targeting 90% diversion. Waste management is discussed in the Financial Capital section.
2
60
2013
2014
2015 Target
0
2014 saw a 7% increase in water usage compared to 2013. However, the 2014 consumption is 33% lower than the 2008 baseline. In 2015, TDC targets a 2% water reduction. Water reduction is discussed in the Real Capital section.
Toronto-Dominion Centre 2014 Sustainability Report
Tear along this perforation for a summary of TDC’s sustainability initiatives and performance.
ENERGY CONSUMPTION AND INTENSITY
TABLE OF CONTENTS 1 2 4 6 8 10 12
TOP ACHIEVEMENTS 2014 ENVIRONMENTAL PERFORMANCE FINANCIAL CAPITAL HUMAN CAPITAL REAL CAPITAL BRAND CAPITAL ADDITIONAL INFORMATION
About Toronto-Dominion Centre About this Report Designed by Ludwig Mies van der Rohe, the Toronto-Dominion Centre (TDC) is a Toronto landmark. TDC is comprised of six office towers located at 66 Wellington Street West (TD Bank Tower), 77 King Street West (TD North Tower), 100 Wellington Street West (TD West Tower), 79 Wellington Street West (TD South Tower), 222 Bay Street (Ernst & Young Tower) and 95 Wellington Street West in Toronto. The office complex offers more than four million square feet of leasable space. TDC tenants include leading Canadian and international firms in the legal, financial, mining and professional services sectors, among others. Every day, a community of over 20,000 occupants and 50,000 visitors connect in these buildings for business and personal purposes, contributing to the economic and social fabric of Toronto’s downtown core. The Toronto-Dominion Centre is owned by the Cadillac Fairview Corporation Limited, the real estate arm of the Ontario Teachers’ Pension Plan.
The Toronto-Dominion Centre has become a recognized sustainability innovator and leader in Canada. This Sustainability Report is a summary of strategy, performance and leadership in value creation through sustainability. It covers sustainability activities and achievements from September 1, 2013 to August 31, 2014. This reporting period aligns with the Cadillac Fairview GREEN AT WORK program. It is TDC’s third sustainability report. The Inaugural Sustainability Report was published in 2012 and was the first singular property sustainability report published in North America. We have prioritized the report content to align with our major successes in 2014 to avoid overlap with information published in previous reports. To that effect, you can find information about TDC sustainability governance and community contributions in our 2013 Sustainability Report, A Unique Approach to Value Creation.
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Energy conservation saves money Smart energy and waste management lower tenants’ operating costs Financial Capital is improved by reducing operating costs. This Cornerstone demonstrates how sustainability at TD Centre contributes to tenants’ Financial Capital through efficient and innovative operations management. Year over year reductions in energy and water use, greenhouse gas emissions and waste contribute to TDC’s position as a leader in responsible property management, but they also provide value to our tenants’ businesses by containing operating costs. We continually seek new and innovative ways to reduce costs. This is done by investing in more efficient technology and by identifying ways of operating more efficiently. Smart management of equipment and resources also lowers maintenance costs. Finally, we seek to generate revenue through reducing peak electricity use and recycling, which are used to offset utility and waste management expense. Achieving year over year reductions, as we have, is a challenging task and necessitates the involvement of building operations staff, management and tenants.
REDUCING ENERGY AND SAVING MONEY THROUGH OPTIMIZATION In 2014, energy consumption at TDC was reduced by 6.9%. This surpassed the GREEN AT WORK annual reduction target of 2.5%. Our total energy reduction last year was 13 million ekWh when normalized for weather and occupancy. On electrical savings alone, we achieved a reduction of 3 million kWh which, at current electricity prices, saves about $300,000. Energy savings came partly through retrofit projects and capital upgrades. As an example, we replaced stairwell lights in all 6 towers and installed sensors and dimmers. The result was an annual cost saving of approximately $65,000 in addition to maintaining life safety requirements, another primary reason for the project. We also reduce energy consumption through diligent energy management. Optimization is the process of using existing building technologies as efficiently as possible and ensuring all systems are calibrated to work together. Submetering of building equipment and energy trending enable operations staff to identify “hot spots” where energy is wasted. Optimization software, sophisticated building automation systems and smart controls on large equipment, such as boilers and motors, play an important role. They control optimal timing for turning equipment on and off and ensure that all systems are synchronized, which over time can lead to significant energy and cost savings.
ENHANCING PROFITABILITY 4
Achieving continued reductions is a challenge, especially because we don’t control all operations in our buildings. Tenant behaviour has a significant impact on energy consumption and in the past we have run very successful energy savings campaigns through our industry leading Occupant Engagement Program (OEP). We are currently launching the new Energy 201 Campaign to build on our learnings with the philosophy that reduction efforts need to be ongoing and small acts can collectively have a big impact. Toronto-Dominion Centre 2014 Sustainability Report
TRANSPARENCY AND EFFICIENCY THROUGH SUB-METERING Sub-metering of base building equipment helps TDC optimize energy use as described on the previous page. Sub-metering also helps support tenants’ energy reduction efforts. Sub-metering enables TD Centre tenants to see exactly how much energy they consume. It rewards tenants’ conservation efforts and allows them to accurately analyze their usage. It also allows us to help tenants reduce consumption by identifying wasteful use or above average consumption. TDC tenants have had electricity sub-metering for many years. Over the past few years, TDC has been auditing the sub-metering in the building and expanding it to include natural gas heating and district heating and cooling, which tenants will be billed individually for moving forward. This innovation sets TDC apart from many other high performing green buildings as sub-metering of all utilities is uncommon.
DOLLARS FOR TRASH Waste diversion at TDC increased to 80% towards the end of 2014. This is a major breakthrough in our efforts towards 90%. The overall annual waste diversion rate in 2014 was 78%. In 2014, total waste produced at TDC also went down by 3%. This is an important achievement as our waste volumes had been increasing 2008-2013 and we seek to continue our reduction efforts.
CASE STUDY
ENERGY MANAGER PROFILE:
Adrienne Cressman
In 2014, TDC demonstrated progressive leadership and commitment to energy reduction by hiring an Embedded Energy Manager – a team member exclusively responsible for overseeing energy management policy and all energy initiatives throughout the TDC community. Adrienne Cressman has over 15 years’ experience in mechanical engineering. In her role she chairs the Energy Innovation Team and works with the operations staff, management team and contractors to help identify and implement innovative ways to conserve energy at TDC.
Reducing the total volume of waste can reduce collection costs, as can increased diversion. For example, when paper and cardboard are collected in large volumes, the fibre can be sold at market prices. We work with our waste service provider to generate revenue from the paper we facilitate recycling for, which is netted from the cost of waste removal to reduce overall operating costs. In 2014, more than 2,000 tonnes of paper and cardboard were diverted, saving an approximate $110,000 on waste removal costs. Not all recycling streams provide revenue. We always seek to have an optimal balance between providing the best services to our tenants, minimizing the cost of waste removal and being a sustainable property manager. To continuously offer an improved service, we will often trial new initiatives in the Cadillac Fairview TDC office to test feasibility. A current trial at our office utilizes smaller waste bins compared to recycling bins to encourage diversion. Another challenge we are addressing through the Green Council, our tenant sustainability steering committee, is capturing recycling data on tenant paper shredding. Having this information will positively affect our waste diversion rate. Construction and renovations at TDC generate approximately 14% of waste and recycling material. We will work with contractors to produce detailed recycling reports and reduce overall waste volumes through guidelines in an updated tenant construction manual.
WE HAVE ACHIEVED SOME GREAT WINS IN OPERATIONAL EXCELLENCE OVER THE LAST FEW YEARS AND STILL FEEL THE BEST IS YET TO COME.” Adam Tan, Manager, Facility Operations, TD Centre
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Indoor environment drives productivity TDC occupants benefit from a healthy indoor environment Although missing from the balance sheet, Human Capital is one of the most important assets of any company. Employee costs are a greater expense than rent and utilities by about a factor of 10 and 100 respectively. Any increases in employee well-being and productivity or decreases in sickness and absenteeism represent significant savings to TDC’s tenants. The Human Capital Cornerstone demonstrates how TDC supports tenants’ businesses by focusing on occupant health and productivity initiatives. It also details how we support and engage our own employees to ensure that we attract and retain the best talent in the industry to provide the best service to our tenants. One measure of our service delivery is the satisfaction of our tenants, which we survey annually. In 2014 tenant decision makers reported a 77% satisfaction rate. This represents a 9% increase from 2012 and 80% of tenants would recommend TDC.
AIR QUALITY MATTERS The business case for green buildings has evolved well beyond resource savings and emissions reductions, with employee well-being and productivity generating the greatest benefits (see case study on opposite page). This is a key focus at TDC and a major contributor to our tenants’ Human Capital. The 2014 Occupant Engagement Program (OEP) campaign focused on environmental quality, which includes indoor air quality. We have been providing indoor air quality reports to tenants since 2011. As an OEP campaign initiative, we also provide information on how the building operating systems function and tips on maximizing fresh air to educate tenants on how to improve their indoor air environment. Mystery audits identify sources of environmental pollutants or poor air quality, which can be caused by the use of air fresheners and blocked vents. Enhanced smoking zones farther from entrances also improve air quality and occupant health. We also apply green procurement practices and only use ECOLOGO and Green Seal certified cleaning products. As a result, all TDC towers received multiple LEED points for superior indoor air quality. Health and productivity extend beyond environmental quality and can be enhanced by many behaviours, technologies and activities in the workplace. During last year, we hosted a Health and Productivity “lunch and learn” and an Ergonomics in the Workplace event for tenant representatives.
ENHANCING HUMAN HEALTH AND PRODUCTIVITY 6
Alternative transportation is another OEP focus. We provide educational and carpooling resources to tenants and display information in the lobby as part of the OEP campaign. Charging stations for electric vehicles are available at TDC to encourage their uptake. The stations are in constant use Monday through Friday. TDC also offers access to many alternate transportation options including the TTC, GO Transit and the Bike Share Toronto program. Toronto-Dominion Centre 2014 Sustainability Report
CASE STUDY
GREEN BUILDINGS DRIVE HEALTH AND PRODUCTIVITY
TDC’s Oscar Peterson square
ENGAGED, INSPIRED EMPLOYEES ENABLE BEST CLIENT SERVICE Major corporations are including people and community programs in their sustainability strategies. An engaged, knowledgeable and satisfied workforce allows us to provide the best service to our tenants. Cadillac Fairview and TDC work to develop our own Human Capital through training, culture, rewards and a stimulating work environment. TDC uses an independent research company to measure employee engagement. The 2014 results show that TDC has an engagement score of 77%. One of the two highest scoring drivers for engagement was found to be TDC’s commitment to social and environmental responsibility. In addition, Cadillac Fairview was recognized as a 2015 Best Employer in Canada by global HR firm Aon Hewitt. TD Centre has an Employee Engagement Committee which strives to build a great team and culture. We are also developing an employee training program to ensure continuous investment in our workforce and our business. In 2014, TDC employees received a total of 772 hours of training and $31,000 in tuition reimbursement, which will increase as new programs are introduced.
Health, W Productiv ellbeing & ity in Offi The next ces chapter for gree n buildin g
Sponsors
There is increasing evidence of how green buildings benefit health and productivity and how this positively impacts the bottom line. A 2014 World Green Building Council paper summarized much of the research done to date. Savings from improved workplace environment can be substantial. For example, absenteeism in the U.S. private sector costs employers about $2,000 per employee per year. Studies highlighted in the report found that improved ventilation can increase productivity by 11% and reduction of volatile organic compounds (VOCs), which derive from paints and textiles, can increase productivity by 8%. Thermal discomfort can decrease productivity by 4%-6% and other aspects such as noise, aesthetics, workplace image and amenities also impact productivity. One large study of commercial office tenants found that 95% of them would pay up to 3% more in rent to have access to open outdoor space like TDC’s courtyard and plaza. Translating productivity gains into tangible dollars can be challenging. The Cadillac Fairview offices and some of our tenants are currently participating in a pilot to measure employee well-being and productivity gains, using some of the most accepted methodologies. We hope to report on the results of this project in next year’s sustainability report.
7
Building investments and operational excellence create value TDC makes capital investments for the benefit of its tenants and proves that a landmark building can be the premier office destination at any point in time Real Capital is a critical Cornerstone in assisting our tenants to execute their businesses with excellence. To enable this, our investment program includes capital improvements to the physical buildings as well as new systems and processes that deliver a superior office experience and high customer satisfaction. In 2014 our capital expenditure was $34 million which delivers benefits to tenants that include business interruption risk reduction, service quality, comfort considerations, health and safety as well as time efficiency gains. Approximately $10 million of this total was invested in projects that will result in energy and/or water efficiency gains.
IT’S ABOUT PROCESS & TECHNOLOGY At the end of 2014, we are half way into an ambitious operating strategy implementation, focused on both process and technology. Specifically, through the development of a comprehensive building operating procedures manual, the optimization of equipment operating schedules, the implementation of a retro-commissioning program and a new customer service call centre, we are gaining efficiencies that are contributing to lower operating costs for our tenants and reduced greenhouse gas emissions and natural resource consumption. These process investments are supported by technologies that facilitate the management of equipment maintenance and call center operations and procurement, which support consistent service delivery and client satisfaction. To improve energy efficiency, we also continued our light retrofit program, installation of boiler controls and variable speed drives on secondary water systems and began a refurbishment of our motor control centre. Although we expect the investments to continue generating energy savings, the challenge is balancing older building technologies and design with occupant comfort needs, while continually working to achieve reductions.
WATER USAGE INCREASING FROM A HISTORICAL ALL TIME LOW Since 2008, we have had annual energy and water reduction and waste diversion targets and in last year’s report we showed how we had achieved the first 5 year goals. One example is water which was down by 42% in 2013 compared to 2008. Although we continually aim to improve performance and reduce water usage in operations, water consumption increased to 361 million litres from 337 (7%) during last year. As a comparison, our water usage was 540 million litres when we started to track. We are taking actions such as checking backflow preventers, designing closed loop condenser systems and continuing to retrofit washrooms with low fixtures to offset this increase and reach our 2015 reduction target of 2%.
ENHANCING THE WORKPLACE ENVIRONMENT 8
Toronto-Dominion Centre 2014 Sustainability Report
CASE STUDY
REAL CAPITAL IMPROVEMENT IS A TEAM SPORT:
Profiling TDC’s Energy Innovation Team
TDC engineering management team
GREEN AT WORK PROGRAM SETS STANDARDS FOR SUSTAINABLE OPERATIONS GREEN AT WORK is Cadillac Fairview’s sustainability operational platform. It requires each property to adopt a set of global best practice standards to integrate sustainability into property management and operations and to set annual improvement targets. The program focuses on five pillars to reduce our environmental impact and enhance the value of each Cornerstone Capital: Energy, Waste Management, Environmental Protection (land, air and water), Sustainable Procurement and Stakeholder Collaboration. After 5 years of successful implementation, the GREEN AT WORK program was enhanced in 2014 to help each property achieve more. Many program enhancements are based on initiatives already in place at the TD Centre, such as our Green Team The Energy Innovation Team - and our Occupant Engagement Program.
Accomplishing year-over-year energy performance improvements is not an easy task in a 6 tower building complex comprised of more than 4 million sq. ft. However, at TDC the Energy Innovation Team has done just that! During the period 2008-2013, TDC reduced or maintained its energy consumption each year for a total reduction of approximately 13%. In 2014, energy consumption was reduced by almost 7%. The Energy Innovation Team is comprised of TDC Operations staff members, as well as its major equipment suppliers, facility management provider and building engineering consultants. The Team is tasked with identifying innovative solutions for energy conservation and developing corresponding action plans to ensure measures are successful. It targets at least a 2.5% annual energy reduction.
INVESTMENTS IN EQUIPMENT AND OPERATIONAL PROCEDURES CAN REDUCE OR CAP OUR OPERATING COSTS. IT IS A SMART DECISION FOR OUR TENANTS, FOR OUR BUSINESS AND FOR THE ENVIRONMENT.” David Hoffman, General Manager, TD Centre TDC building engineers at work
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The TDC brand is the green real estate brand Certification at the very highest levels proves our position as a real estate leader Leading companies around the world are integrating sustainability into their corporate strategies and brands. We believe it is important to support our tenants by offering sustainable office space that contributes to our clients’ Brand Capital. Strong Brand Capital creates value for our tenants by appealing to key customer segments, attracting and retaining talent and supporting a social license to operate in the community. At TDC, we work hand in hand with our tenants and sustainability experts to continually push the bar for sustainability leadership and recognition. We invest in the highest levels of LEED certification for the buildings themselves and collaborate with our tenants to enable them to obtain LEED certification for their individual office interiors. TDC is a requested speaker at real estate and general industry conferences and TDC supports sustainability-related events and conferences across industry. Most importantly, TDC and its sustainability consultants use sustainability as an ongoing catalyst for strategic decisions and innovation, aimed at improving all Four Cornerstones. This report section provides an overview of last year’s programs and initiatives that contribute to the Brand Capital Cornerstone of our tenants’ businesses.
LEED EXPLAINED
ENHANCING REPUTATION 10
TD WEST TOWER
ERNST & YOUNG TOWER
TD BANK TOWER
TD NORTH TOWER
TD SOUTH TOWER
95 WELLINGTON ST. WEST
Leadership in Energy and Environmental Design (LEED) is a green building certification program developed and administered by Canada Green Building Council (CaGBC). It verifies superior design and performance for both newly constructed buildings and those already in operation. LEED NC certifies “New Construction” and LEED CS, “Core and Shell”, a derivative of LEED NC, is also for new construction but with a slightly more narrow focus that does not include tenant interiors. As an existing building, LEED Existing Building Operations and Maintenance (EBOM) and Commercial Interiors (CI) are the applicable certification programs for TD Centre. LEED EBOM ensures energy, water and waste management efficiencies, sound indoor and outside environmental quality and sets benchmarks for operational excellence and maintenance procedures. LEED CI guides the tenant to consider options in the office fit-out that ensures a productive and healthy working environment, for example by access to daylight, elimination of paints, flooring and textiles that contain chemicals that can “off-gas” and use of interior materials and furnishings that minimize effects on the environment.
Toronto-Dominion Centre 2014 Sustainability Report
ADOPTING CANADA’S TWO LEADING CERTIFICATION SYSTEMS LEED certification is the premier sustainability certification program for Canadian real estate and it helps to attract the very best tenants. Furthermore, Cadillac Fairview’s commitment to green buildings requires all Canadian office properties to seek BOMA BESt certification and flagship buildings to pursue LEED certification. At TDC we have chosen to go for the very highest certification levels in both programs. All TD Centre buildings were certified to LEED level Platinum or Gold in 2014. Moreover, we are targeting platinum certification for the entire TDC complex and during 2014 we submitted our LEED renewal application to the Canadian Green Building Council. This will become another Canadian first.
CASE STUDY
PILOTING LEED CI WITH OUR TENANTS
TDC receives a 2014 Race to Reduce Award for energy reduction
TDC’S SUSTAINABILITY LEADERSHIP IS RECOGNIZED A key part of our leadership strategy is to participate in business conferences and industry events, advocate for sustainable business practices and share our learnings. In 2014, the General Manager David Hoffman was invited to speak about sustainability reporting at the CaGBC annual conference, the Conference Board of Canada’s business sustainability conference and the Green Real Estate conference. We are proud that our sustainability leadership is being recognized by the experts. In its spring 2014 issue, Corporate Knights Magazine included both the 100 Wellington St. W. and 79 Wellington St. W. towers in the Top 5 LEED (Existing) Large Buildings index. U.K. based CorporateRegister, which administers the world’s largest sustainability reporting awards program, has short-listed TDC’s 2013 sustainability report in its “Innovation in Reporting” category alongside companies like Nike, Teck Resources and Merck. David Hoffman also received Cadillac Fairview’s national excellence award in 2014, for TDC’s commitment to supporting its tenants’ businesses.
We see ourselves as a strategic partner in helping our tenants to build Brand Capital. It was therefore a given that we provided LEED Canada for Commercial Interiors 1.0 certification services to key tenants on a pilot basis. In 2014, TDC facilitated an expert LEED consulting team to obtain base building credits and guide tenants through the process. This led to innovation in areas such as increased environmental monitoring in tenant spaces and improved waste and indoor air quality management plans for construction. TD Bank and KingSett Capital were two tenants that participated in the LEED CI pilot at the time of publication of this report. Both projects are currently undergoing review by the CaGBC.
ACCREDITING OUR OFFICE AS LEED FOR COMMERCIAL INTERIORS WAS IMPORTANT FOR KINGSETT CAPITAL AS IT DEMONSTRATED THAT OUR COMMITMENT TO SUSTAINABILITY DOESN’T END WITH OUR PORTFOLIO, BUT THAT IT IS INGRAINED IN OUR COMPANY CULTURE AND THE WAY WE DO BUSINESS.” Jeanne Medland, Sustainability Manager, KingSett Capital (tenant at 66 Wellington St. W.)
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Additional information Definitions BOMA BESt The Building Owners and Managers Association Building Environmental Standards program rates existing buildings based on energy, water, waste, emissions, indoor environment and environmental management system performance. Buildings are awarded levels 1-4 based on their performance.
CO2e
Stands for carbon dioxide equivalent. This metric calculates the total global warming impact of different greenhouse gases by converting them to the standard measure of carbon dioxide. It is often displayed in metric tonnes (1,000 kilograms), or tCO2e.
DISTRICT HEATING AND COOLING Heating and cooling provided in the form of steam and chilled water through a centralized district service provider to achieve efficiencies through economies of scale. TDC and many other Toronto buildings use Enwave steam and deep lake cooling services for partial heating and cooling requirements.
ECOLOGO The ECOLOGO certification labels products and services that have been independently verified to meet strict environmental standards over their lifecycle — from manufacturing to disposal. ECOLOGO standards are designed so that only the top 20% of products available on the market can achieve certification.
Stands for equivalent kilowatt hours. This metric allows different energy sources to be compared by equating them to the standard measure of electrical energy. Standard conversion rates for common fuels is available through Natural Resources Canada.
GREEN SEAL A certification that classifies products based on their life-cycle impacts. Similar to ECOLOGO.
LEED Leadership in Energy and Environmental Design is the internationally recognized third-party certification standard administered in Canada by the Canadian Green Building Council (CaGBC). The rating system rates buildings in eight areas: location and transportation, site management, water, energy, materials, indoor environment, innovation and regional priorities. Certification levels are certified, silver, gold and platinum.
REALpac The Real Property Association of Canada is national association of large owners and developers of commercial real estate. It develops and maintains national real estate standards and conducts research in areas including sustainability.
SUB-METERING A system used to track energy or water consumption of a particular space within a larger area that is already being measured. Sub-metering for electricity is in place for all tenants in the TDC and allows tenants to understand exactly how much energy they use and reduce.
VOCs Volatile organic compounds (VOCs) are emitted as gases from certain solids or liquids. VOCs include a variety of chemicals, some of which may have short- and long-term adverse health effects. VOCs are emitted by a wide array of products. Examples include paints and lacquers, paint strippers, cleaning supplies, pesticides, building materials and furnishings, office equipment such as copiers and printers, correction fluids and carbonless copy paper, graphics and craft materials including glues and adhesives, permanent markers and photographic solutions.
WASTE DIVERSION RATE The percentage of total waste that is diverted away from landfill disposal through recycling or composting.
ekWh
Data Reporting years begin September 1st and end August 31st of the listed year. This is in line with the Cadillac Fairview GREEN AT WORK program’s reporting cycle. Energy data is provided for all buildings and includes electricity, natural gas, steam and chilled water usage for base buildings, common areas and tenanted spaces, except for major energy users such as data centres (as per the Canadian normalization standard set by the REALpac) and retail spaces under office towers, unless otherwise stated. Waste data includes all office and retail space for all buildings. Water data includes all office and retail space for all buildings. Greenhouse gas emissions data includes all areas of TDC including retail and major users, with the exception of one tenant controlled data centre to maintain consistency with prior
years’ methodology. This data is considered to be a “non-reporting account”. Normalization: Energy and water data is compared to a 2013 baseline which is adjusted to the 2014 reporting year based on weather and occupancy. Greenhouse gas emissions reporting follows the CSA/ISO 14064-1 GHG accounting standard. Greenhouse gas emission factors are provided by Environment Canada’s National Inventory Report on Greenhouse Gases 1990-2012. The emissions factors utilized to calculate emissions from electricity decreased from 130 gCO2ekWh to 93 gCO2ekWh between 2013 and 2014. Emissions factors for steam are provided by Enwave and chilled water from a life cycle assessment conducted on deep lake cooling. TD Centre uses the operational control approach to consolidating its greenhouse
gas inventory and therefore accounts for all direct and indirect energy-related emissions from building areas under direct control (i.e. common areas) in scope 1 and 2. Tenantcontrolled areas that are sub-metered for electricity are considered outside of TD Centre’s control and are thus included in the scope 3 emissions. Electricity consumption from one tenant controlled data centre was excluded from the GHG inventory to maintain consistency with prior years’ methodology. This data is considered to be a “non-reporting account”. Activity data is not normalized for weather or occupancy. Emissions include all direct emissions sources including natural gas, diesel and refrigerants, as well as indirect emissions from electricity, steam, chilled water, waste and transportation of waste to landfill. The energy price utilized to calculate estimated cost savings is 10.3¢/kWh, as per Toronto Hydro’s business rates.
Cornerstone photos by Tony Lea and illustrations by Bruce Roberts.
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Toronto-Dominion Centre 2014 Sustainability Report
Toronto-Dominion Centre 2014 Sustainability Report www.tdcentre.com
BUILDING
NABILITY
OGETHER
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© The Cadillac Fairview Corporation, March 2015. This report was developed and produced by Quinn & Partners. Printed in Canada using vegetable-based inks and 100% recycled paper.
