ENVIRONMENTAL ACHIEVEMENTS

DOC’s senior leadership dedicates resources and tools to measure and manage resource consumption, including energy, water, and waste. We are deeply committed to implementing practices and transparently reporting on our results as we work to meet and exceed our benchmarks.

In everything we do, our team is dedicated to developing, owning, and managing a portfolio of buildings that maximizes our healthcare partners’ comfort, health, and success through fiscally responsible ESG practices.

Benchmarking & Methodology

We established the following criteria to select properties for our inaugural ESG report:

Comparison
Metrics

owned as of January 2018 to determine year-over-year utility spend

Data
Accessibility

multi-tenant properties with readily accessible data to create a like-for-like comparison

Impact
Scale

buildings over 25,000 SF to maximize ESG impact

We have focused our initial report on 70 multi-tenant properties in which we have property management services in place and utility information available. These 70 properties represent 4.49M square feet, or 32% of our entire portfolio.

This inaugural report represents the benchmarking and reporting on building performance as of January 1, 2018 to develop our three-year ESG plan. Based on this data, our team set 10% reduction targets in energy, emissions, and water consumption, and a 10% waste diversion rate increase for 2019-2021. This report reflects the inaugural year-over-year performance data.

While the data for this inaugural report stems from our identified subset of properties, our commitment to advancing sustainability projects spans our entire portfolio. When DOC identifies properties with opportunities for improvement, we optimize existing systems and allocate capital resources for upgrades. Additionally, we continuously engage property management in the process of evaluating no- or low-cost efficiency opportunities through an annual sustainability self-assessment, providing visibility of building-level data, and empowering these team members to help achieve our ESG goals.

The identified portfolio, alongside all DOC-owned assets, are tracked in software systems such as ENGIE, ENERGY STAR® Portfolio Manager, and Measurabl to monitor energy, water, and waste, leveraging this data to prioritize our capital efforts.

Results to Date

Energy & Emissions

2019 SAVINGS EQUIVALENT TO 17,041,829 MILES DRIVEN BY AN AVERAGE PASSENGER VEHICLE REDUCTION OF 6,867 METRIC TONS AND $311,750 IN TOTAL ENERGY SPEND


Spotlight On:

Strictly Pediatrics Specialty Center

A 2,500-panel solar array, one of the largest in Central Texas, generates 1.2 million kilowatts of clean energy each year, while the educational and interactive solar monitoring display in the lobby provides a needed distraction for children battling illness.

Learn More

Water

2018 Baseline 2019 Progress 25.90 26.58 2021 GOAL 23.93 (-2.6%) CHANGE YEAROVER YEAR COMPLETE TO 2021 GOAL 26 % 10% Water Use Reduction Goal Commitment to reduce water use intensity, targeting a 10% reduction by 2021. Units are GAL/SF.

2019 Savings equivalent to the AVERAGE daily water usAGE OF 9,644 U.S. households


Spotlight On:

2020 Earth Day initiative

DOC’s 2020 Earth Day initiative, Water Smarter, spotlights water conservation through two approaches: (1) healthcare partner education and (2) property management research and mitigation. The healthcare partner program provided water reduction strategies at work and at home. Our property management and engineering teams conducted water usage audits to target and repair leaky faucets, install low-flow devices, and add rain sensors on watering systems.

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Waste

22.0% 19.9% 2018 Baseline 2019 Progress 2021 GOAL 29.9% +2.1% CHANGE YEAR OVER YEAR COMPLETE TO 2021 GOAL 2 1 % 10% Waste Diversion Increase Goal Increase waste diverted from landfills, targeting a 10% increase in diversion rate by 2021. Units are the percentage of waste diverted.

ADDITIONAL WASTE DIVERTED IN 2019 EQUALS 117.97 METRIC TONS, WHICH WOULD FILL 3.25 SEMI-TRUCKS


Spotlight On:

National Recycling Platform

In 2019, DOC increased our waste data collection by initiating a national waste management contract. We also established a waste policy to govern our program across the portfolio. In 2020, all of DOC’s property managers will receive comprehensive training on best practices in waste management at medical office buildings.

Capital Investment Strategies

The company has developed a strategic, sustainability-focused capital expenditure (CapEx) plan concentrating on projects with the most significant environmental and financial returns. This focus is key to achieving our ESG goals as we work to increase our operational efficiency. The benefits are clear, as The World Green Building Council estimates that green retrofits decrease annual operating costs by an average of 9%.

In 2019, DOC invested $3.4 million in ESG-driven capital improvements across 50 properties. Asset-level efficiency projects are identified based on a variety of factors, including committed capital, size, and location of the asset, as well as the projected return on investment.

CapEx Spotlight
Cambridge Professional Center

Replaced all remote terminal units (RTU) and completed common area LED lighting upgrade.

Reduction of 9% overall energy usage

234

kbtus/sf
2018

212

kbtus/sf
2019
CapEx Spotlight
South Campus MOB

Sealed and painted the exterior envelope.

Reduction of 6%
overall energy usage

60

kbtus/sf
2018

56

kbtus/sf
2019

Sustainable Finishes

To maximize the usage of sustainable materials during tenant buildouts and common area projects, DOC worked with national architecture and interior design partners to develop a standard finish program including paint, flooring, lighting fixtures, and window treatments. All materials meet high-performance benchmarks for sustainability. In addition to these benefits, these standard finishes include access to negotiated national pricing discounts, representing green cost savings.

Building Automation System (BAS) Optimizations

In 2019, DOC completed a comprehensive Building Automation System (BAS) optimization program at eleven properties. This exercise identified cost- and resource-saving opportunities related to indoor climate management, lighting schedules, and mechanical performance. As part of this program, facility engineers received training on how to analyze energy profiles and adapt programming based upon criteria such as occupancy and weather.

Recognizing Excellence

At a property level, our partners are a vital part of ESG success. In 2019, DOC established a program to recognize individual sustainability efforts on a quarterly basis. This Sustainability Award recognizes management personnel, service technicians, building engineers, and vendors based on their outstanding work in sustainability that aligns with our ESG goals.

Certifications

IREM® CSP Designation

The Institute for Real Estate Management® (IREM) Certified Sustainable Property (CSP) is a sustainability certification program that focuses on the role of exceptional real estate management through green building performance. IREM’s sustainability certification provides properties with recognition for resource efficiency and environmental initiatives. To earn this certification, each property must meet baseline requirements and then earn necessary points across energy, water, health, recycling, and purchasing categories.

DOC earned eight IREM® CSP certifications in 2019 and plans to complete 20 new certifications by 2022.

Baylor Charles A. Sammons Cancer Center | Dallas, TX

HealthEast Clinic and Specialty Center | Maplewood, MN

Strictly Pediatrics Specialty Center | Austin, TX

Calkins 125 | Rochester, NY

North Mountain MOB | Phoenix, AZ

Crystal MOB | Crystal, MN

St. Alexius – Rehab Center | Bismarck, ND

St. Alexius – Mandan Clinic | Mandan, ND

Learn more about the IREM® CSP at DOC

green-lease-badge

IMT Green Lease Leaders Gold Designation

Green leases, also known as “high-performance” or “energy-aligned” leases, create win-win strategies for building owners and tenants by equitably aligning the costs and benefits of energy and water efficiency investments for both parties. Where conventional leases tend to make energy efficiency the sole responsibility of the landlord, under a green lease, tenants and property owners coordinate to conserve resources and align the costs of sustainable investments.

In 2020, DOC earned the Green Lease Leaders Gold Designation from the Institute for Market Transformation (IMT) and U.S. Department of Energy (DOE) Better Buildings Alliance. Green Lease Leaders is the premier industry recognition program that spotlights forward-thinking real estate companies who utilize the leasing process to spur collaborative action on energy efficiency and sustainability in buildings.

To receive Green Lease Leaders’ recognition, organizations must meet prerequisites and demonstrate best practices. Criteria include utility data tracking and sharing, cost recovery for efficiency-related capital improvements, sustainability training, and energy efficiency fit-out requirements for tenant spaces.

Learn more about Green Leasing at DOC

LEED Certifications

Physicians Realty Trust proudly owns two LEED-certified properties. Our acquisitions team has begun strategically prioritizing the purchase of LEED assets when possible.

Spotlight On:

Baylor Charles A. Sammons Cancer Center

3410 Worth Street, Dallas, TX
458,400 RSF | Acquired 2017
LEED Gold Certification

Exceeds commercial building energy codes by 14% in energy efficiency

Spotlight On:

8 C1TY Blvd MOB

8 City Boulevard, Nashville, TN
108,850 RSF | Acquired 2015
LEED Gold Certification

By cost, 26% of the project utilized recycled content, while 45% of the materials were manufactured, sourced, or harvested within 500 miles of the project site


ENERGY STAR® Partner

DOC is dedicated to improving the energy efficiency of the buildings we own and manage. Our partnership with the Environmental Protection Agency (EPA) allows us to publicly commit to the environmental and financial benefits of energy management. DOC is proud to be an ENERGY STAR® Partner since 2014.