DOC Corporate Headquarters | Milwaukee, WI

Risk management & reporting

This year, we’ve elevated our reporting by aligning with several external frameworks and standards to increase our disclosure on material issues like energy consumption and risk management. DOC is proud to align our efforts with the Sustainability Accounting Standards Board (SASB) and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). These disclosures share how we’re mitigating climate change risks and proactively pursuing opportunities to accelerate the transition to a low-carbon economy.

We believe that the SASB standards and TCFD recommendations are instructional for designing DOC’s plan to address the ESG issues that are most critical to our long-term success.

Task Force on Climate-related Financial Disclosures

As a long-term owner of a nationwide medical office real estate portfolio, Physicians Realty Trust focuses on climate preparedness as part of our overall sustainability strategy. To provide a framework for success, in 2020, DOC implemented the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The four areas for TCFD include Governance, Risk Management, Strategy, and Metrics & Targets.

Governance

Our team is proactive in identifying climate risks within our markets and implementing preventive measures to combat these risks. The stewardship of these initiatives is shared across the company’s executive leadership, asset & property management, construction & project management, marketing & communications, and leasing teams.

DOC's ESG Team

David Domres, Michael Farina, Greg Gallagher, Allison King, Laura Kreiser, Libby Langenderfer, Leann Mester, Kat O’Connell, Amy Sovine, Mark Theine, and Ryan Yetzer

DOC’s Nominating and Corporate Governance Committee, under the leadership of Mr. Albert C. Black, Jr., provides Board of Trustee level oversight of our ESG goals. As Chairman of this Committee, Mr. Black’s responsibilities include:

Oversight of all ESG matters relating to the company

Receive/review reports from management on the company’s strategy, practices, and performance

Inform the Board of Trustees regarding these matters

The Board of Trustees Audit Committee oversees the company’s enterprise risk management program, which identifies the primary risks to our business. At the same time, the Finance Committee monitors and oversees major capital expenditures under the annual capital plan approved by the Board and related financing transactions.

Risk Management

DOC recognizes that climate change risk is a global issue that may impact how we run our business and network, both today and in the future. As such, we continue to look for ways to improve our understanding of climate-related risks. We are working to integrate climate risk variables into our overall multi-disciplinary risk management process that engages our Board and management team.

To date, we have established formal processes for resilience planning, including, but not limited to, business continuity and disaster recovery planning. These forward-looking plans include risk identification and the coordination of plan development, preparation, and maintenance in a local emergency or widespread disaster at the corporate and property levels.

Environmental Management System

In 2019, Physicians Realty Trust developed an Environmental Management System (EMS) to lay the foundation for the environmental strategies of our overall ESG program. Updated for 2020, this document includes leadership commitments, goals related to energy, water, and waste management, communication plans, operations guidance, performance evaluation, stakeholder engagement, and governance practices. In short, it’s a roadmap to integrating sustainability considerations and objectives into our ongoing decision-making and operations so that we may continually improve the stewardship of our portfolio.

PLAN DO CHECK ACT • Establish Benchmarks Based Upon Current Performance • Identify Opportunities for ESG Growth • Set Proactive Goals • Strategically Allocate Capital Resources • Optimize Existing Systems and Establish New Protocols Where Needed • Execute Plan to Meet and Exceed Targets & Goals • Track and Share Data at the Building and Portfolio Levels

Strategy

As new technologies continue to propel sustainability to the forefront, DOC is working to do our part to create healthier environments for our team, our health care providers, their patients, and our communities. To take full advantage of these opportunities, we are taking a multifaceted approach, including:

Minimizing the environmental footprint of our operations

Improving the energy efficiency of our properties

Continuing to upgrade our technology and address risks to be prepared for a changing climate

We are adopting new goals and commitments and taking a fresh look at all of the ways our company and our people can build a better, more sustainable future.

DOC evaluates the risk profile of our identified ESG reporting portfolio on an annual basis. To review the results of our 2020 risk evaluation and action plan elsewhere in this report, visit DOC’s Climate Risk Strategy.

Metrics & Targets

DOC’s current climate-related risk metrics and targets are related to our goal of reducing energy, greenhouse gas emissions, and water usage by 10% by 2021 over a 2018 baseline for our identified portfolio. As part of this goal-setting, DOC reports on our Scope 1 and Scope 2 greenhouse gas emissions. This year, DOC is proud to commit to a greenhouse gas reduction strategy, striving for a 40% reduction by 2030 on a 2018 baseline.

To review the additional targets related to these goals, visit DOC’s Climate Risk Strategy.

Sustainability Accounting Standards Board

The Real Estate Sustainability Accounting Standards issued by the Sustainability Accounting Standards Board (SASB) in 2018 proposes metrics designed for disclosure in mandatory filings. These filings are included on pages 7 and 8 of our Annual Report on Form 10-K under Our Objectives and Growth Strategy. As of 2020, Physicians Realty Trust has aligned our disclosures with SASB standards on issues material to our company and mission.