HIGHLIGHTS

ESG principles have been a part of DOC’s business practices since the company’s inception. As our business has matured, our ESG endeavors have evolved. We have transitioned from implementing ESG tactics on a case-by-case basis to formalizing our approach into measurable multi-year goals spanning the entirety of our business practices.

Environmental

In 2020, DOC invested in 29 sustainability-driven capital expenditure projects totaling $4.2 million, generating operating expense savings of approximately $7.7 million over the next ten years. Looking ahead, DOC has dedicated an additional $4.0 million to sustainability projects in 2021 to further our efforts as leaders in ESG performance within the REIT industry.

DOC is committed to reducing our energy usage, emissions, and water consumption by 10% while increasing our waste diversion rate by 10% from 2019 to 2021 over a 2018 base year. In 2020, despite the unique challenges brought on by the COVID-19 pandemic, we continued to make great strides toward these goals.

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Energy, emissions, and water metrics are expressed in energy usage intensity (EUI) to normalize building size by square footage. EUI represents a building’s energy use as a function of its size or other characteristics. The reportable metrics for our identified portfolio include Scope 1 emissions, defined as direct emissions from building energy use, and Scope 2 emissions, defined as indirect emissions from purchased electricity, steam, heating, and cooling. Our 2019 reported data has been revised to reflect these Scope emissions calculations. Our 2019 water metrics now include additional data. Our 2020 water reductions were influenced by limited common area water usage due to the COVID-19 pandemic. We expect our water consumption to normalize in 2021 as our tenants return to typical operations, and steps have been taken to mitigate this increase. Waste data is reported as a percentage of diversion rate, i.e., the percentage of waste diverted from a landfill or incineration facility.

DOC Earns 2021 ENERGY STAR Partner Of The Year Designation

DOC is proud to announce that we have received a 2021 ENERGY STAR Partner of the Year Award from the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE). While we celebrate this announcement, we recognize that it is not the culmination of our efforts, but another step forward as we continue to Invest in better® for our communities and be leaders in ESG performance within the health care real estate industry.

Social

At DOC, our Invest in better® philosophy includes a focus on providing better health care, better communities, and better returns. We also prioritize the wellbeing of our team members, our health care partners, the patients that visit our properties, and the communities we all call home.

Philanthropy & Volunteerism

Having exceeded our $300,000 philanthropic goal for 2020 by over 15%, DOC has increased its 2021 commitment to charitable giving to $350,000. This goal marks our most ambitious yearly philanthropic goal to date. Still, it’s a number we’re confident we will exceed as we add to the over $1 million in total charitable contributions DOC has made since the company’s inception. In 2020, we deepened our partnerships with our health care partners’ philanthropic foundations to assist in their community outreach, contributing $163,000 to their local efforts.

Beyond our financial giving, we also encourage our team to give time, both through DOC-facilitated quarterly volunteer projects and the DOC Cares volunteer time off program so that they can support the causes of their choosing. In addition to providing team-building moments outside of the office setting, these efforts emphasize that valuing people and supporting our communities is at the forefront of our DOC culture.

From a diversity, equity, and inclusion perspective, our team, along with many worldwide, expressed shared pain and outrage in reaction to the murder of George Floyd. In a groundswell of support for enhanced education and internal dialogue regarding racial equity, diversity, and mental health, our team launched an array of programming, generating thoughtful and sometimes emotional conversations through the strong support of our leadership.

From the global impact of the social justice movement to the effects of the pandemic on our team members’ daily lives, the past year demanded an increased focus and proactive approach to addressing social issues. Here are just a few of this year’s achievements:

Governance

Sound corporate governance is critical to ensuring DOC’s long-term growth and stability. In 2020, we disclosed Board of Trustees-level oversight of our ESG programming under the leadership of Mr. Albert C. Black, Jr., Chairman of the Nominating and Corporate Governance Committee. We also added TCFD (Task Force on Climate-related Financial Disclosures) and SASB (Sustainability Accounting Standards Board) disclosures to DOC’s public reporting. For more information, visit the Risk Management section of this report.

Our team continued to provide exceptional service to our health care partners during these turbulent times, often juggling work responsibilities with the added hurdles of working remotely and additional family obligations. Throughout 2020, our Board of Trustees was heavily involved in supporting the team through their time, talents, and thought leadership.

Trustee Activity Highlights

March 6, 2020

Virtual Town Hall: COVID-19 Best Practices
with Board Member William Ebinger, M.D.

April 24, 2020

Video Interview: Emergency Response Retrospective & Meeting Dr. Fauci
with Board Chairman Governor Tommy Thompson

May 1, 2020

Video Interview: Resilience, Remote Working, and Health & Wellness
with Board Member Pamela Kessler


May 15, 2020

Video Interview: Overcoming Adversity in Business During a Global Pandemic
with Board Member Albert C. Black, Jr.

July 1, 2020

Virtual Town Hall: Diversity, Equity, & Inclusion
with Board Member Albert C. Black, Jr.

September 17, 2020

Virtual Management Summit: Health Care Professionals Discuss COVID-19
with Board Member William Ebinger, M.D.