Kilroy Realty Achieves Carbon Neutral Operations
Kilroy Realty Corporation (NYSE: KRC) has achieved carbon neutral operations as of 2020, making it the first North American REIT to do so. The company executed this through energy efficiency measures, onsite and offsite renewables, and verified emission reduction credits. Key strategies included an 18% reduction in energy use since 2010 and solar installations generating 2% of total energy consumed. KRC plans to manage Scope 3 emissions next, focusing on construction materials and tenant energy use.
- Achieved carbon neutral operations by end of 2020.
- Reduced energy use by 18% since 2010.
- Installed solar panels on 15 properties generating 2% of total energy.
- None.
Kilroy Realty Corporation (NYSE: KRC) announced today that as of the end of 2020 it had achieved carbon neutral operations. In 2018, the company was the first North American REIT to make a commitment to achieve carbon neutral operations and it accomplished its goal through energy efficiency, onsite renewables, offsite renewables, renewable energy certificates and verified emission reduction credits. These efforts fully addressed the Scope 1 and 2 greenhouse gas (GHG) emissions associated with the operations of KRC’s buildings.
“In 2018, I committed our company to reach carbon neutral operations by the end of 2020, and we have kept that promise. This achievement demonstrates that real estate companies can and should thrive while being excellent stewards of the environment,” said John Kilroy, Chairman and CEO of KRC.
The company focused on the following strategies to achieve carbon neutral operations:
-
Energy efficiency. KRC has reduced energy use of its assets approximately
18% from 2010 levels. -
On-site renewables. KRC has solar photovoltaics installed on 15 of its properties. These systems generated approximately
2% of the total energy consumed by the KRC portfolio in 2020. -
Offsite renewables. KRC has entered into an agreement for a large offsite solar array currently under development that will, when complete, fully address the electricity consumption of its directly managed properties. In addition, KRC procures
100% Green-e certified power for certain properties from several of its energy providers, including the Clean Power Alliance, San Diego Gas & Electric and Peninsula Clean Energy. -
Renewable Energy Certificates (RECs). While not fully completed, KRC’s offsite solar project purchases RECs on KRC’s behalf that allow KRC to convert to
100% renewable electricity across all properties. - Carbon offsets. The remainder of the company’s greenhouse gas emissions are now offset by verified emission reduction credits. The resulting carbon offsets are Verified Carbon Standard (VCS) certified.
“Our tenants truly value our efforts and commitment to sustainability,” said Rob Paratte, KRC’s EVP and head of business development and leasing. “This is a win not only for the environment but for the reputation of our portfolio in the real estate community.”
KRC will continue to achieve carbon neutral operations annually, effectively decoupling its carbon emissions from the company’s growth or from changes in the operation of its properties, such as those due to COVID-19. The company is now focusing on reducing its Scope 3 emissions through strategic management of the carbon emissions associated with its construction materials as well as emissions associated with tenant energy use.
About Kilroy Realty Corporation. Kilroy Realty Corporation (NYSE: KRC, the “company”, “KRC”) is a leading West Coast landlord and developer, with a major presence in San Diego, Greater Los Angeles, the San Francisco Bay Area, and the Pacific Northwest. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company’s approach to modern business environments helps drive creativity, productivity and employee retention for some of the world’s leading technology, entertainment, life science and business services companies.
KRC is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office and mixed-use projects.
As of September 30, 2020, KRC’s stabilized portfolio totaled approximately 14.3 million square feet of primarily office and life science space that was
A Leader in Sustainability and Commitment to Corporate Social Responsibility
KRC is listed on the Dow Jones Sustainability World Index and has been recognized by industry organizations around the world. As of September 30, 2020, KRC’s stabilized portfolio was
The company has been recognized by GRESB, the Global Real Estate Sustainability Benchmark, as the sustainability global leader in the listed office sector. Other honors have included the National Association of Real Estate Investment Trust’s (NAREIT) Leader in the Light award for six consecutive years and ENERGY STAR Partner of the Year for seven years as well as ENERGY STAR’s highest honor of Sustained Excellence, for the past five years.
A big part of the company’s foundation is its commitment to enhancing employee growth, satisfaction and wellness while maintaining a diverse and thriving culture. The company was named to Bloomberg’s 2020 Gender Equality Index—recognizing companies committed to supporting gender equality through policy development, representation, and transparency.
More information is available at http://www.kilroyrealty.com.
Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses; our ability to re-lease property at or above current market rates; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; our ability to maintain our status as a REIT; and uncertainties regarding the impact of the COVID-19 pandemic, and restrictions intended to prevent its spread, on our business and the economy generally. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our quarterly report on Form 10-Q for the period ending September 30, 2020 and in our annual report on Form 10-K for the year ended December 31, 2019 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210104005855/en/
FAQ
What is Kilroy Realty Corporation's achievement regarding carbon neutrality?
How did KRC achieve carbon neutrality?
What percentage of energy was generated by KRC's solar installations?
What is KRC's future focus after achieving carbon neutrality?
When did KRC announce its carbon neutral operations?
