Agree Realty, a real estate company, has a proactive approach to systematically understanding and managing climate change risks and opportunities. The company aims to strengthen its environmental commitment by conducting a greenhouse gas emissions inventory, implementing green lease language, collaborating with tenants on property-level ESG initiatives, analyzing green-certified properties, and integrating ESG factors into due diligence processes.

The company has taken steps to reduce its carbon and greenhouse gas (GHG) emissions. It has worked with its insurance partner to evaluate and assess the risk of climate change throughout its portfolio. These risks include physical risks such as cyclones, hurricanes, floods, and sea-level rise, as well as transition risks like increased reporting requirements and exposure to climate-related litigation. Agree Realty has also engaged with tenants to implement strategies for reducing emissions, such as adding EV charging stations, reducing waste, and promoting sustainable practices. The company has achieved several milestones in its emission reduction efforts, including earning Gold Level recognition from Green Lease Leaders for its green leasing efforts and executing leases with green lease clauses. It has also increased dialogue with tenants and worked with convenience store tenants to allow for the installation of EV charging stations.

Agree Realty has integrated environmental, social, and governance (ESG) factors into its acquisition due diligence process. It has identified properties with green building certifications, including LEED and ENERGY STAR certifications. The company has measured its GHG emissions and collected utility data to understand its environmental impact. The largest source of emissions comes from tenant usage of energy at leased locations, categorized as Scope 3 emissions. The Scope 3 emissions (Category 13 – Total downstream leased assets emissions) for 2022 were reported as 335 thousand metric tons CO2e. The emission intensity for Scope 1 and 2 was 0.0029 metric tons per square foot of CO2e, while for Scope 3, it was 0.0086 metric tons per square foot of CO2e. Agree Realty, in its ongoing efforts, will further enhance data collection processes to improve the disclosure of environmental metrics in the future. The company intends to set emission reduction targets once a more comprehensive understanding of baseline footprint is established.

In conclusion, Agree Realty is committed to enhancing its environmental dedication and reducing its carbon and GHG emissions. The company has taken steps to mitigate climate-related risks and achieve significant milestones in its emission reduction efforts. By engaging with tenants, implementing green leasing practices, and evaluating its portfolio for green building certifications, Agree Realty is actively working towards a more sustainable future.

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