Corporate Responsibility and Sustainability - Bentall …cr.bentallkennedy.com/Assets/Documents/Bentall_CRS09.pdf• Climate Change • Environmental Policy ... by Hewitt Associates

Corporate Responsibility and Sustainability2009 Report

Contents1 ScopeofthiSRepoRt

2 executiveStatement

4 Section1:WeaReBentall Wegrow Westriveforexcellence

10 Section2:ouRexactingStandaRdS Wecommittothefuture

Weactresponsibly

16 ouRpRogReSS

18 Section3:ouRemploYeeS Weengage

28 Section4:ouRcommunitY Wesupport

34 Section5:ouRStakeholdeRS Wepartner

40 Section6:ouRenviRonment Weprotect Weleadthroughaction Wedeliverthroughperformance

54 ouRfutuRe

56 gRiindex

This report covers the activities of Bentall LP in Canada and Bentall’s Seattle office. Information on the sustainability initiatives and activities of our U.S. affiliate Kennedy Associates Real Estate Council LP is published in a report entitled Responsible Property Investing (RPI), which is available at www.kennedyusa.com.

All figures are as at December 31, 2009, unless otherwise stated.

For guidance in creating this report we used the Global Reporting Initiative (GRI) G3 framework and indicator protocols and the Real Property Association of Canada (REALpac) publication, A Guide to Corporate Responsibility and Sustainability Reporting in the Canadian Real Property Sector. More information can be found at the Global Reporting Initiative website at: www.globalreporting.org and at the REALpac website at: www.realpac.ca.

Our advisor, KPMG LLP, has provided assistance in facilitating the preparation of this report but has provided no assurance thereon. A materiality analysis was completed to help determine the content and structure of this report. The evaluation of materiality included an industry benchmark survey, sector organization review, opinion leader analysis and media analysis. Findings are noted below.

The materiality study enabled the categorization of sustainability issues according to risk and relevance and guided the prioritization of content for this report.

If you have any questions about this report or would like to learn more about our practices in sustainability, please contact Jennifer Arnold, Director Communications and Marketing ([email protected]) or Giselle Gagnon, Vice President National Real Estate Services ([email protected]). Our 2009 CR&S report is also available on our website at www.bentall.com.

Governance and risk management• Corporate Governance• Risk Management

Responsible platform founded in ethics and integrity• Codes of Conduct/Ethics• Awards and Recognition• Public Commitment to

International Initiatives• Non-financial Project/

Investment Evaluation• Supplier Standards

Commitment to service excellence• Sustainable Building/ Eco-design/

Operations/ Maintenance• Materials Selection Criteria• Operational Ethics• Client and Tenant Relations

Environmental performance• Climate Change• Environmental Policy

and Management System• Eco-efficiency/

Environmental Impact• Biodiversity

Develop and care for people• Health and Safety• Human Capital Development• Labour Practices• Talent Attraction

and Retention

Make a positive impact in society • Community Impact (social)• Stakeholder Relations

mateRialitYStudYfindingS

This is Bentall LP’s first Corporate Responsibility and Sustainability (CR&S) report, created to provide information to our stakeholders on our sustainability efforts. In it, we review our sustainability practices, policies and achievements for the calendar year ending December 31, 2009.

Scope of this Report

12009 CORPORATE RESPONSIBILITy AND SUSTAINABILITy REPORT

2 BENTALL LP

Bentall is good business

Executive StatementAt Bentall we are guided by the priorities of our clients, tenants, employees and investors, all of whom insist that we take a leadership role in our industry in corporate social responsibility and sustainability.

Our culture and our business practices are built upon the idea that the manner in which we choose to conduct our business – environmentally sound, socially responsible, rigorously governed – is inextricably tied to our successful management of client investments as well as our ability to create new developments and attract the best tenants. Our business case is sound – Corporate Responsibility and Sustainability (CR&S) is a powerful lever by which we can enhance and preserve the long-term value of the assets we manage on behalf of our clients and tenants.

As one of Canada’s largest real estate investment and services providers, we recognize the impact we have on the environment and the communities in which we operate. We are committed to being a responsible and engaged part of our communities, and we look forward, in this report, to articulating our commitment, efforts and results for 2009.

coRpoRateopeRationSOur goal for 2009 was to align our corporate operations and our real estate services business units in order to achieve consistent focus and progress on CR&S throughout Bentall. To demonstrate this commitment to our stakeholders, Bentall set a corporate operations target of carbon neutrality for 2009. We achieved carbon neutrality by: modifying our waste and electricity consumption practices; encouraging employees to reduce their commuting footprints; purchasing renewable energy credits from Bullfrog Power; and purchasing carbon credits derived from social housing energy efficiency and renewable energy projects from Carbonzero.

2009 CORPORATE RESPONSIBILITy AND SUSTAINABILITy REPORT 3

pRopeRtYopeRationSWe aim to continuously improve the environmental performance of our managed portfolio of buildings. We can reduce carbon emissions through conservation programs and by executing sustainability best practices in our service delivery.

Bentall has implemented an environmentally preferable purchasing program, ForeverGreen Purchasing, and we have adopted a Responsible Contracting Policy in our business operations, which covers all the properties we manage. We have invested in technologies such as Eco-Tracker and BORiS, designed to enhance tracking, reporting and performance in environmental management and regulatory compliance of our managed portfolio. And we have worked diligently to green the properties by developing new properties to LEED® standards and by certifying our existing buildings under BOMA BESt and LEED.

BenchmaRkingIn 2009 Bentall participated in the Jantzi Real Property CR&S Benchmarking Initiative, the first of its kind for the commercial real estate industry in Canada. We placed first in the survey, averaging 30 points ahead of our peer group in Canada and comparing favourably to the international leaders.

fRomtheinSideoutFor the third consecutive year, we have been named one of the 50 Best Employers in Canada – a survey conducted by Hewitt Associates and The Globe and Mail’s Report on Business magazine. Our employees show a high level of engagement and commitment to Bentall as a whole, and they cite CR&S as a significant factor in our high engagement score. It is clear to everyone at Bentall LP that our commitment to sustainability is just that—a commitment. Not a trend or a phase, but part of how we do business at every level.

We hope you enjoy this report. We encourage you to share your feedback with us and look forward to reporting back to you on our progress in future years.

garyWhitelawChief Executive Officer

RemcodaalPresident and Chief Operating Officer Canada

garyWhitelawChief Executive Officer

RemcodaalPresident and Chief Operating Officer Canada

Section 1

We are Bentall > A diversified business – geographically and by asset class

> Originated in 1911

> Ranked number one in the Canadian Commercial Real Estate, Sustainability Performance Report – by Jantzi Sustainalytics and Real Property Association of Canada

> First Canadian real estate investment manager to become a signatory of the United Nations Principles for Responsible Investment

> Assets Under Management – $16.245B / 88.7M Square Feet

6 BENTALL LP

Section 1

We are Bentall

ouRpRofileOriginating as a small construction company in 1911, Bentall LP is today the largest Canadian-based real estate advisory and services organization. We manage over $16 billion in assets on behalf of our clients. Our business is built on a solid foundation of real estate knowledge and exacting fiduciary standards.

We are privately owned by senior management, SITQ (a subsidiary of the Caisse de dépôt et placement du Québec) and the British Columbia Investment Management Corporation (bcIMC). Bentall LP is engaged across the spectrum of commercial real estate throughout Canada and in the northwest U.S. Our comprehensive coast-to-coast capability is supported

by more than 1,100 employees. We are headquartered in Toronto with principal offices in Vancouver, Calgary, Edmonton, Winnipeg, Ottawa, Montreal and Seattle.

Bentall’s two complementary lines of business – real estate investment management and real estate services – are fully integrated. We provide a wide range of real estate related services – including property management, leasing, development and asset management – through a seamless services platform that involves all aspects of the real estate life cycle. Our professionals work collaboratively to actively manage and enhance the value of the assets entrusted to our stewardship.

Our North American investment platform is extended through our majority ownership interest in Kennedy Associates Real Estate Counsel, LP, the largest independent real estate investment advisor in the U.S. With Kennedy, Bentall offers clients access to investment opportunities and highly knowledgeable real estate professionals in major U.S. markets. In conjunction with this partnership, Bentall also holds an ownership interest in Landon Butler & Company, an associated U.S. investor relations and marketing firm.

We grow


Ontario – 35%Alberta – 26%British Columbia – 23%Washington State – 8%Quebec – 5%

Manitoba – 2%Other – <1%

2009 Assets Under Management by Region

Ontario – 35%Alberta – 26%British Columbia – 23%Washington State – 8%Quebec – 5%

Manitoba – 2%Other – <1%


Office – 57%Industrial – 18%Retail – 17%Residential – 4%Development – 4%

2009 Assets Under Management by Asset Type

diveRSificationBYaSSetclaSSandBYpRovince/State


Area of Assets Under Management (in million square feet)

Value of Assets Under Management (in $ billions)


ouRStaBilitYAlthough the real estate market was acutely affected by the global financial crisis, Bentall maintained strong performance in 2009. We are a diversified business, which strengthens our ability to withstand economic downturns. Geographically, no province or state

represents more than 35 percent of assets under management and we have an extensive and esteemed institutional client base that includes bcIMC, Sun Life Financial, SITQ and Investors Group.

Area of assets under managment (in million square feet)

81

2007

86.2

2008 2009

88.7

Value of Assets under management (in $ billions)

16.9

2007

17.7

2008

16.2

2009

Office – 57%Industrial – 18%Retail – 17%Residential – 4%Development – 4%


8 BENTALL LP

We strive for excellenceOur goal is to be a market leader, recognized for the depth and breadth of our knowledge, the quality of our advice, and our exacting fiduciary standards. We celebrate the entre-preneurial drive and creativity of our employees. Our relationships with all our stakeholders are based on honesty and integrity.

In 2009, Bentall participated in the Jantzi Real Property Corporate Responsibility and Sustainability (CR&S) Benchmarking Initiative. In February 2010 the results were released by Jantzi Sustainalytics and the Real Property Association of Canada in a report entitled Canadian Commercial Real Estate, Sustainability Performance Report. Bentall LP ranked number one among the 18 Canadian organizations that were evaluated by Jantzi. Bentall placed ahead of the industry average environmental, social and governance (ESG) performance scores of the U.S., Europe and Australia; and Bentall’s

performance was closer to that of the global industry leaders cited in the study than to its Canadian peer group.

To read the report, with Bentall identified, visit http://www.bentall.com/about_us_newsroom.html.

ouRStRategYBentall’s five-year strategic plan is to lead our industry on three fronts:

Growth of our existing clients; extension of our services to new clients in Canada; reinforcement of our North American platform; and through continuous improvement in our service delivery.

Talent as a major focus to maintain a culture that attracts and retains the industry’s best and brightest.

Leadership in sustainability for our industry, as we honour our commitment to the United Nations Principles for Responsible Investment (UN PRI) through action.

We are Bentall

Bentall 55.3

41.7

45.9

50.2

53.5

58.4

Canada

United States

Europe

Australia

Global Leaders*

Section 1

* The British Land Company, Investa Property Group, Land Securities Group plc, Lend Lease Corporation, ProLogis

jantziRealpRopeRtYcR&SBenchmaRkinginitiativeESG Performance – Average Scores


ouRcommitment

Becoming a signatory to the UN PRI demonstrates Bentall’s commitment to the importance of responsible property investing and management. It speaks to our dedication to protecting the environment and allows us to collaborate on a global initiative focused on addressing climate change.

UN PRI provides a framework for integrating ESG criteria in investment decision-making. Working with UN PRI affords us the opportunity to collaborate with other organizations looking to advance social and environmental issues.

As a signatory we have a duty to act in the best long-term interests of our beneficiaries. In this fiduciary role, we believe that environmental, social

and corporate governance (ESG) issues can affect the performance of investment portfolios (to varying degrees across companies, sectors, regions, asset classes and through time). We also recognize that applying these Principles may better align investors with broader objectives of society. Therefore, where consistent with our fiduciary responsibilities, we commit to the following:

1. We will incorporate ESG issues into investment analysis and decision-making processes.

2. We will be active owners and incorporate ESG issues into our ownership policies and practices.

3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.

4. We will promote acceptance and implementation of the Principles within the investment industry.

5. We will work together to enhance our effectiveness in implementing the Principles.

6. We will each report on our activities and progress towards implementing the Principles.

In signing the Principles, we as investors publicly commit to adopt and implement them, where consistent with our fiduciary responsibilities. We also commit to evaluate the effectiveness and improve the content of the Principles over time. We believe this will improve our ability to meet commitments to beneficiaries as well as better align our investment activities with the broader interests of society.

> 72% of Board of Directors are independent, including the Chair of the Board

Section 2

Our Exacting Standards

> Completed Section 5970 Report, Auditor’s Report on Controls for fourth consecutive year

> 100% of Bentall employees and Board members sign and acknowledge compliance with our Code of Business Conduct annually

> First Canadian real estate firm to develop and implement a responsible contracting policy

12 BENTALL LP

Section 2

Our Exacting Standards

ouRgoveRnanceBentall has a Board of Directors that provides overall governance to the organization. The Board’s role is to provide oversight to the company’s Chief Executive Officer and senior management team. It also ensures that Bentall meets its fiduciary responsibility to its clients and maxi-mizes it return to its limited partners.

The Board supports and promotes the principles of responsible property investing and their application to the services Bentall provides for our clients.

Committees of the boardIn order to fulfill its duties, the Board has established a number of committees, each of which is delegated certain responsibilities.

The Audit Committee oversees the company’s accounting, financial reporting and authorization processes, including preparation of financial statements, supervision of

the audit program, and management of the company’s business, litigation, insurance and environmental risks.

The Corporate Governance Committee reviews and administers the company’s Corporate Gover-nance Policy and the effectiveness of the Board as well as assisting the Board in selecting the indepen-dent directors.

The Human Resource Committee oversees all human resource matters including the compensation policies of the company.

The Investment Committees are separate committees, one for each client, established to oversee the activities and performance of the company in serving the interests of each client.

Compliance with best-practice governance policies and procedures is monitored by Bentall’s Board, the Governance Committee of the Board and senior management. Governance

practices are regularly updated to ensure alignment with leading good-governance practices.

The Chair of the Corporate Governance Committee oversees an annual self-assessment of each member of the Board of Directors. The Chair of the Board compiles the results of the evaluation and shares the overall feedback with the Board.

The Chair of the Board is assisted by the Corporate Governance Commit-tee in the selection of the independent directors, ensuring that candidates possess a skill set complementary to those of the existing members and verifying that conflicts of interest do not exist. Successful candidates must receive majority Board approval.

Directors’ compensation is reviewed annually with oversight by the Human Resources Committee and periodic benchmarking of the Board of Directors’ compensation is completed against market conditions.

We commit to the future


ouRappRoachtoRiSkmanagementBentall’s comprehensive risk-management approach focuses on strategic, operational, financial, social and environmental risks. Each category has its own risk-assessment framework by which to identify, manage and mitigate risk. It is the role of Bentall’s senior management team to identify risk on an ongoing basis, as issues arise during the normal course of business.

The Audit Committee is tasked with reviewing identified risks every quarter and providing oversight and input to management and/or mitigation strategies. The Board formally reviews identified risks on an annual basis, though risk-management discussions are part of every Board meeting.

ouRappRoachtoincidentmanagementA comprehensive Business Continuity Plan is in place at Bentall. In 2009 the program was refined to include findings of tabletop testing that was completed across our corporate offices with a specialized team at Marsh Canada.

Emergency procedures and an emergency call-in phone number and website are in place for our employ-ees. Bentall has also considered and made provisions for alternative workplace arrangements, electronic information storage redundancy and communications programs.

ouRSuppoRtandleadeRShipofinduStRYWhile Bentall does not participate in lobbying or take formal public policy positions, we support our employees and encourage all of senior management, to be actively involved in industry associations. Our employees are involved in many industry initiatives that are leading

the development of sustainability-related guidelines and research. We participate in industry associations such as:

• Real Property Association of Canada (REALpac)

• Building Owners and Managers Association (BOMA)

• Real Estate Institute of Canada (REIC)

• International Council of Shopping Centres (ICSC)

• Commercial Real Estate Developers Association (NAIOP)

• Institute of Real Estate Management (IREM)

• National Association of Real Estate Investment Managers (NAREIM)

• Urban Development Institute (UDI).

Several of our people hold senior positions on Boards and Committees of these and other organizations, giving back time and sharing expertise to advance the commercial real estate investment and management industry.

BoaRdcompoSition

2007 2008 2009

MaleFemale

Board of Directors Breakdown of Members by Gender

2007 2008 2009

MaleFemale

Board of Directors Breakdown of Members by Gender

Independent Directors (including Chair of the Board)

8

3

Directors

Chair of the Board

Director Independence – 2009

Independent Directors (including Chair of the Board)

8

3

Directors

Chair of the Board

Director Independence – 2009

14 BENTALL LP

ouRethicSandintegRitYOur values are rooted in our fiduciary responsibility to our clients. The relationship between client and fiduciary is predicated on trust and confidence. Our clients trust that we will act for their benefit and they have confidence in our real estate expertise. At Bentall LP, we like to use this relationship model across the entire organization. We rely on truth and transparency in all our dealings, and we have embedded tools and business practices to provide appropriate checks and balances throughout our operations. For example:

Code of business conductAll Bentall employees and Board members must sign and acknowledge compliance with our Code of Business Conduct every year. The code, updated in 2009, provides the following guidelines for conduct:

• Follow the law and best practice standards

• Act in accordance with Bentall safety, health and environmental requirements

• Do not put yourself or Bentall in a conflict of interest

• Conduct yourself honestly, professionally and with integrity

• Keep communication and information accurate, confidential and secure

• Treat everyone fairly and equitably

• Report any suspected problems, ethical concerns or irregularities to management

Our Harassment Policy also forms part of this code and explicitly pro-hibits harassment and discrimination of all types against fellow employees, clients and suppliers.

Our Whistle Blowing Policy is communicated to all employees. All reports are communicated in confidence to the Chair of the Audit Committee who is charged with the responsibility of conducting a full investigation and reporting to the Board of Directors. In 2009, no harrassment or whistle blowing incidents were reported.

Avoiding conflict of interestBentall has a large number of clients who actively compete across several marketplaces. Effectively managing potential conflicts of interest amongst our clients is a critical element to our business model and therefore receives a significant amount of attention from the Board of Directors, senior management and our employees. To address this, separate portfolio/asset management teams and investment committees are assigned to each major client or group of clients.

Bentall’s corporate governance principles require that all directors, management and employees act ethically at all times. Directors of the Board must comply with the Direc-tors’ Conflict of Interest Policy. The Code of Business Conduct governs all management and employees and includes guidance on avoiding conflict of interest and requires that all employees fully comply with company policies including the Conflict Policy.

Our Exacting StandardsSection 2

We act responsibly


ouRReSponSiBlepRacticeSResponsible Property Investing (RPI) is a comprehensive approach to real estate investment management. We ensure that responsible business practices and procedures are not only in use but are continuously improved through a corporate culture of conservation, the enthusiasm of our green committees and a team of dedicated internal resources. This high level of engagement enhances our relationships with clients, customers and service providers, allowing us to forge partnerships in the communities where we do business.

Responsible property and portfolio managementThrough our actions, we carefully chart our course to advance appropriate and responsible management practices. For example:

Energy, water and waste are measured and monitored to provide real-time views of building performance for benchmarking and reporting purposes.

Energy efficiency audits are completed to assess building systems; measures are evaluated based on financial and environmental performance metrics and executed upon client approval.

Waste management programs forge strategic partnerships with proactive service providers and engage tenants to contribute to resource efficiency through innovation and best practices in waste and recycling programs.

Greenhouse Gas (GHG) emissions reports are produced annually to help identify and quantify risks and opportunities associated with carbon emissions at property, portfolio and client levels.

Key performance indicators are identified through sustainability and social checklists, noting opportunities to advance environmental and social performance at the property and portfolio levels.

Renewable energy programs are researched and strategies are developed that consider available incentives, cost/benefit analysis and appropriateness of application across various markets. Findings are com-municated to clients and programs are recommended for execution.

Health and safety and environmental compliance are achieved by developing appropriate policies and procedures and communicating these through ongoing training programs.

Environmentally Preferable Purchasing aims to leverage the scale of Bentall’s purchasing power to encourage and influence markets for more environmentally preferable products and services while incor-porating ethical and environmental considerations into the procurement process in a practical, efficient way.

Responsible contractingBentall is the first Canadian real estate company to adopt a Responsible Contracting Policy (RCP) and incorporate this practice in its operations. Responsible Contracting refers to the practice of engaging contractors who pay

fair wages and benefits, promote fair working arrangements and provide appropriate training for workers. We require that responsible contractors, from janitorial providers to construction contractors, are engaged to service our properties. The RCP applies to all contracts with a minimum value of $50,000.

Bentall introduced the RCP to our contractors through a series of processes and communications. Our employees were engaged with our contractors throughout the transition to ensure adoption would not present challenges for contractor organizations. In this way, issues identified could be addressed immediately. The RCP is now rooted in our every day business practices:

• Standard contractor pre-qualification forms – required to be submitted by any new contractors to be on our preferred list – require contractors to outline their labour practices, occupational health and safety compliance, and acceptance of our RCP.

• Request for Proposal documents outline a requirement by contrac-tors to abide by the RCP.

• Our standard services agreement and contracting standards include our RCP and is utilized company-wide on all agreements.

Responsible Contracting embodies the values we expect from our service providers and it supports our objective to foster economic health and growth in the communities where we do business.

16 BENTALL LP

Our Progress

BENTALL LP

Bentall has been recognized with many awards and accolades for our development of high-standard buildings, excellence in property management, commitment to quality service, and contribution to worthwhile causes. In addition, many of our people have been singled out for their achievements and leadership, both in the real estate industry and in the community at large.

• First year named one of the 50 Best Employers in Canada – a survey conducted by Hewitt Associates and The Globe and Mail Report on Business magazine.

• Introduced Utility Tracker, an enhancement of our utility management system (developed in 2004) used for tracking, budgeting and monitoring energy and water at our managed office, retail and multi-residential properties.

• Formed a number of tenant green committees at properties, aimed at enhancing engagement in sustainable initiatives – a number of pilot programs were initiated including eco-preferred parking spaces, e-cycling days and furniture recycling, to name a few.

• First to certify a retail centre under BOMA Go Green Plus (now BOMA BESt).

• Championed the National Industry Task Force in association with BOMA Canada leading to the creation of a pandemic guide and toolkit for commercial buildings which has since become the gold standard of pandemic planning in North America.

• Awarded the inaugural Canadian Social Responsibility Award from the International Council of Shopping Centres (ICSC) in recognition of outstanding humanitarian service at Cloverdale Mall.

• Maple Leaf Award was presented to Bentall Retail Services and Capilano Mall in North Vancouver, B.C. for Bright Idea, a fundraising program in support of the Burn Fund.

• First Canadian real estate firm to develop and implement green cleaning specifications across our managed commercial office and retail property portfolio.

• First to certify an industrial property under BOMA Go Green (now BOMA BESt).

• First Canadian company to win, in over two decades, the coveted National Association of Industrial and Office Properties (NAIOP) 2006 Developer of the year in North America.

• First to certify a building in Canada under the then new BOMA Go Green certification program (now known as BOMA BESt) for existing buildings.

2003

2007

2006

2005• Committed to greening our

managed portfolios through adoption of best practices and certification of commercial properties under BOMA Go Green (now known as BOMA BESt) environmental standards for existing buildings.

17

• Ranked number one in Canada in the Canadian Commercial Real Estate, Sustainability Performance Report released by Jantzi-Sustainalytics and the Real Property Association of Canada (2009 benchmark, February 2010 publication).

• Named one of the 50 Best Employers in Canada for the third consecutive year – in a survey conducted by Hewitt Associates and The Globe and Mail Report on Business magazine.

• First Canadian real estate advisory firm to become a signatory to UN Principles of Responsible Investment.

• Achieved carbon neutrality for our corporate operations.

• Recognized for having the greatest number of green building certifications under the BOMA BESt program for existing buildings of any private sector organization in Canada.

• Formalized our employee sustainability engagement initiatives through Caught Green Handed.

• Introduced Eco Tracker (a successor to Utility Tracker), an integrated online greenhouse gas emissions tracking and reporting tool.

• Winner of BOMA Canada Pinnacle Award for Innovation for BORiS, Bentall’s Online Risk Information System, our state-of-the-art environmental management, regulatory compliance and due diligence system.

• Awarded International Council of Shopping Centres (ICSC) Maple Leaf Silver Award under the Community Relations Category for both Windsor Crossing: How Green Is your School? and Willowbrook Shopping Centre: A Passion for Trashion.

• Named for second consecutive year as one of the 50 Best Employers in Canada – a survey conducted by Hewitt Associates and The Globe and Mail Report on Business magazine

• Launched ForeverGreen, a branding initiative that is the foundation of our responsible property management principles.

• First Canadian real estate firm to develop and implement a responsible contracting policy.

• Introduced Bentall ForeverGreen Purchasing program, for environmentally preferred products and services.

• Launched BORiS, Bentall’s Online Risk Information System, our state-of-the-art environmental management, regulatory compliance and due diligence system.

• Produced, and reported to various clients on, the first inventory of greenhouse gas emissions (baseline year 2007) for our managed commercial office, enclosed retail and multi-residential property portfolio.

• Developed green tenant design guides for our commercial office property portfolio.

• Introduced Waste Tracker, a management system aimed at tracking, benchmarking and reporting on waste production and diversion levels at properties.

2008

2009


Our EmployeesSection 3

> 1,158 employees > Named on The Globe and Mail Report on Business magazine’s 50 Best Employer list three years in a row (2007 to 2009)

> Implemented Building Leaders, an innovative customized leadership development program

> Listed on Benefits Canada magazine for Employees Choice, Canada’s Top 30 Pension and Benefits Plans

> Invested more than $287,000 in educating our people through courses and seminars and our Education Reimbursement Program

> Robust Occupational Health and Safety program


20 BENTALL LP

We engageouRoutStandingteamAt Bentall, our team is our greatest asset. We strive to support our people and continually work to build an atmosphere where everyone is encouraged to grow, innovate and take on new challenges in a safe and healthy environment. We focus significant resources in developing and maintaining our highly engaged, entrepreneurial and collegial culture.

In 2009 we implemented a number of programs that support the development of our employees because we know that Bentall’s success hinges on the success of our employees. Some of our key work streams in 2009 focused on:

• Employee Development Planning Program

• Career path review with employees

• Launch of a Mentor Program

• Delivery of an automated performance review process

On an annual basis, all our employees are required to read and abide by our Code of Conduct, which reflects our principles on equality, harassment, discrimination, corruption and general compliance requirements. For more on our Code of Conduct, please refer to Our Exacting Standards.

1,0801,1121,158

2007 2008 2009

TOTAL NUMBER OF EMPLOYEES


ouRWoRkfoRceAt Bentall, we consider diversity in our people to be one of our competitive advantages, recognizing that different perspectives foster creativity, innovation and overall excellence in decision-making. In order to provide superior service, it is important for our workforce to reflect the communities in which we do business. We understand that to fully capitalize on this competitive advantage we must continue to

cultivate a workforce with different backgrounds, perspectives and ideas, and provide employees with an open, supportive and engaging workplace.

We recognize that diversity is expressed in many ways. Our level of diversity in age and gender is generally in line with our competitors* with an average workforce age of 39.7 years.

* 2009 Saratoga Human Capital Effectiveness Survey, Price Waterhouse Coopers

tYpeofemploYmentcontRact(%)

numBeRofemploYeeSBYcategoRYandgendeR2009

emploYeeagegRoupBYgendeR

Permanent – 95.2%Temporary – 4.3%Part-time – 0.5%

2009 TYPE OF EMPLOYMENT CONTRACT (%)

Permanent – 95.2%Temporary – 4.3%Part-time – 0.5%

2009 TYPE OF EMPLOYMENT CONTRACT (%)

3

7

150

118

220350

75

170

40

25

MaleFemale

ExecutiveManagement

SeniorManagement

MiddleManagement

Professional/Technical

Administrative/Operations

NUMBER OF EMPLOYEES BY CATEGORY AND GENDER 2009

3

7

150

118

220350

75

170

40

25

MaleFemale

ExecutiveManagement

SeniorManagement

MiddleManagement

Professional/Technical

Administrative/Operations

NUMBER OF EMPLOYEES BY CATEGORY AND GENDER 2009

Female 43%

Male 57%

EMPLOYEE AGE GROUP BY GENDER

Male under 30 yrs – 5.5%Male between 30-50 yrs – 34.0%Male over 50 yrs – 18.0%Female under 30 yrs – 6.5%Female between 30-50 yrs – 26.0%Female over 50 yrs – 10.0%

Female 43%

Male 57%

EMPLOYEE AGE GROUP BY GENDER

Male under 30 yrs – 5.5%Male between 30-50 yrs – 34.0%Male over 50 yrs – 18.0%Female under 30 yrs – 6.5%Female between 30-50 yrs – 26.0%Female over 50 yrs – 10.0%

22 BENTALL LP

ouRpeopledevelopmentpRoceSSHelping our employees learn and grow is part of our core strategy and is aligned with our objective to maintain a culture that attracts and retains the industry’s best and brightest and our desire to be a market leader in the real estate advisory and services industry in North America.

The Employee Development Planning Program is an annual review of each employee’s strengths and areas for development. Its main purpose is to encourage employees to define and communicate career aspirations, identify external training opportunities and courses of interest, and prepare for internal job opportunities aligned with individual career paths.

A formal program for all supervisory and management staff, the Building Leaders Training Program, is designed to provide the knowledge, skills and tools needed to be effective and successful in a managerial role. The format creates the opportunity for participants to apply learned skills on the job, and consists of six modules. By the end of 2009, 100 percent of Bentall’s non-executive managers who have direct employee supervision responsibilities enhanced their skills in managing and engaging employees through this valuable program.

In addition to these core programs, we delivered a number of online training courses including: Introduction to Greenhouse Gases, Environmental Basics, Insurance 101 and Environmentally Preferred Purchasing. Our IT training program, @BAT offered training on accounting-system reporting and refresher training for operations and property accountants on system functionality. These informal lunch-and-learn sessions were held weekly and encouraged employees to share their thoughts and experiences in an informal learning environment. In addition, mandatory occupational health and safety and environmental training modules were provided to our employees.

Bentall recognizes the value of external training and education. In 2009, we invested $287,093 in educating our people through external courses, seminars and our Education Reimbursement Program (ERP). The ERP offers full and partial reimbursement options for a variety of job and business related pre-approved courses and programs. Collectively, our people were involved in 24,353* total hours or an average of 21 hours per employee in training and education programs in 2009.

* Based on an employee survey with an overall participation rate of 70 percent of our corporate office departments, and 80 percent of our gross leasable area for properties managed, adjusted to represent full employee headcount.

Our performance-management framework forms a key part of an employee’s development plan. Reviews are conducted annually, at which time employees discuss their overall performance and contributions with their manager. This process enables both parties to gain a clear understanding of key responsibilities as well as performance standards and expectations, and it contributes to the goal-setting process.

In 2009, over 84 percent of all Bentall employees participated in performance reviews. We believe the percentage of senior management receiving performance reviews is higher than the percentage indicated and the lower number is a reflection on our data collection process. Additional efforts will be made to ensure better accuracy of reporting these statistics in future years.

100%

56%

77%85%

90%

Executive ManagementSenior ManagementMiddle Management Professional/TechnicalAdministrative/Operations

PERCENTAGE OF EMPLOYEES RECEIVING PERFORMANCE REVIEWS



ouRtalentOur approach to attracting and retaining the best in our industry is indicative of our commitment to providing a rewarding and dynamic work environment.

Remuneration frameworkOur remuneration framework is made up of base salary with the potential for annual performance and/or profit-sharing bonuses among all Bentall employees. All standard and entry level positions are above the jurisdictional minimum wage requirements. Compensation is explicitly linked to company financial performance, delivering on goals tied to our strategic plan (refer to We are Bentall) as well as meeting individual performance objectives.

All severance packages take into account the employee’s age, position and years of service and consider needs for outplacement counselling and career advice through external providers. We also support employees nearing retirement by providing counselling programs through an external service provider.

A variety of benefits and incentives made available to our employees includes:

• Employer matching contributions to the group retirement savings plan, up to four percent of an employee’s gross salary.

• Benefits, such as dental, basic life insurance and health spending account contribution.

• Personal emergency leave (up to 10 days), family medical leave (up to 8 weeks), short-term disability leave (up to 15 weeks of paid coverage), and 2 personal leave days.

• Vacation entitlement program exceeding minimum statutory requirements.

• Employee-referral program, which rewards employees for referring successful candidates to Bentall.

• Job-posting policy, which advertises open positions below the VP level internally as well as on the external website.

• Employee Assistance Program, which offers confidential short-term counselling and advisory service.

• Employee Concierge Service, which offers Bentall employees access to group discounted tickets, shows, attractions and events throughout Canada.

We believe that our efforts to make Bentall an employer of choice in our industry, combined with employment market uncertainty, contributed to decreased turnover in 2009.

220 (20.4%)238 (21.4%)209 (18%)

EMPLOYEE TURNOVER RATE BY YEAR

2007 2008 2009

Female – 22%Male – 15%

EMPLOYEE TURNOVER RATE BY GENDER

Female – 22%Male – 15%

EMPLOYEE TURNOVER RATE BY GENDER

24 BENTALL LP

Recognition frameworkWe offer a number of avenues in which to promote the recognition of our outstanding employees’ achieve-ments. Our recognition plan includes:

• The Employee Recognition Awards allocate discretionary funds to department leaders for recognizing individual and group excellence.

• E-cards, available via our employee intranet, encourage recognition at every level and build a culture of celebrating our successes.

• Service awards provide our most loyal employees with incentive awards for five-year increments of service.

• The Retirement Award recognizes and provides incentive to employees who retire after 25 years of service.

• The Education Milestone Award recognizes employees’ success in obtaining a degree, certificate or professional designation.

Employee satisfaction and engagementFor three consecutive years (2007 to 2009), we have been named one of the 50 Best Employers in Canada – a survey conducted by Hewitt Associ-ates and The Globe and Mail Report on Business magazine. This survey is an essential tool for gauging employee engagement, which examines a number of facets including satisfaction with the organization and its practices, leadership and business processes as well as employee perceptions of our role as leaders in our community and our commitment to sustainability. The results of this survey are analyzed annually, and feedback is used to determine plans for improvement and communicate areas of strength.

Further, we employ a variety of other engagement techniques to facilitate two-way feedback. Some examples of this engagement include:

• At our Annual Leadership Forum the CEO, President, and executive team visit every region to create a clear line of sight between employees, their work and the strategic objectives of Bentall. The forum is followed by a question-and-answer session.

• We hold focus groups of specific business units and regions to collect data from employees. This is an opportunity to drill down into the issues highlighted on the annual survey.

• Annual town hall meetings with management and senior management staff within the National Real Estate Services group are held in every region to review ongoing national initiatives and provide a public venue for recognizing individual and team contributions.

• “Ask Senior Management” is an interactive Q & A tool delivered via the employee intranet where employees anonymously submit questions on any topic. Responses are then posted via the intranet, so that all employees can read the questions and responses.

• Canada Quarterly Newsletter is the President’s communication vehicle that includes information on business performance and initiatives, recognizes special events and employees achievements, and provides a feedback loop to the President.



POLICY

OHS PROGRAM MANUAL

PROCEDURES

GENERAL

• WHMIS and Hazardous Products• Workplace Inspections• Working Alone• Visitor Safety• Violence Prevention in the Workplace• Right to Refuse Unsafe Work• Office Safety• Noise Exposure & Hearing Conservation• JHSC• First Aid• Employee Orientation & Training• Emergency Response Planning• Incident/Accident Reporting and Investigation

• PCB Management• ODS• Lead• IAQ and Mould• Asbestos• Mould

• Roof Access, Ladder & Scaffold Safety• Personal Protective Equipment• Safe Lifting• Lock Out/Tag Out• Mechanical Lifting Device• Hot Work• Hand Tool & Power Tool Safety• Electrical Safety• Contractor Safety• Confined Space Entry• Biological Safety

ENVIRONMENTAL WORKPLACE

ouRWoRkplacehealthandSafetYThe underlying philosophy of our health and safety system is that of internal responsibility. All parties, including senior management, super-visors and employees, recognize that health and safety is everyone’s responsibility and is best managed through communication, consultation, and cooperation between all parties.Total employee work-related claims in 2009: 17 representing an injury rate of 1.65*

• Total working days missed as a result of these claims: 146

• Total 2009 working days missed relating to two employee claims in 2008: 501

• Number of fatalities due to work related injuries: 0

• Citations issued for non-compliance: 0

* injury rate is calculated using estimated total number of hours worked by all employees in one year.

We foster a culture in which all employees are aware of their rights and responsibilities pertaining to health and safety. We believe this goal is achieved by developing health and safety programs, associated procedures, roles and responsibilities and communication plans as well as awareness training programs for all staff. Our beyond-compliance

approach requires integrating health and safety into our risk-management framework and our day-to-day deci-sions, accountabilities and actions.

Our corporate Health and Safety Policy demonstrates that protecting employees, visitors, occupants and customers at our workplaces and Bentall-managed properties is a priority. All contractors, subcontrac-tors, building consultants and suppliers are required to comply with the policy, applicable regulation and standards within Bentall’s Health and Safety Policy, program and pro-cedures as they apply to working in our managed properties.

26 BENTALL LP

Our efforts towards maintaining a healthy and safe culture are supported by a number of other initiatives and programs such as:

• Mandatory occupational health and safety training was completed across the organization – in 2008 and 2009 training was delivered through a web-based application and participation was tracked to ensure full compliance:

> General awareness training (two hours) provided for employees at all levels of the organization

> Workplace awareness training (1.5 hours) was completed affecting approximately 750 property operations and administration employees

> Supervisor training (1.5 hours) was completed by approximately 400 employees

> New employees are required to complete mandatory training within the first few months of their employment

• Mandatory environmental training, which includes awareness on indoor air quality, asbestos, lead, PCB, mould and spills responses, is given to all property operations staff (approximately 600) with responsibilities at the site level – new employees are required to complete a three-hour initial course, and refresher training (one hour) is required each year.

• Hand-sanitizer dispensers are available in common areas at most of our office and enclosed mall buildings.

• Employee wellness newsletters are sent out regularly to employees via the portal and email on life issues, prepared by the Employee Assistance Program service provider.

• National, regional and localized Joint Health and Safety Commit-tees address occupational health and safety issues and ensure observance with all jurisdictional regulations across the organization.

Our Employees

PRESIDENT &CHIEF OPERATING OFFICER

Bentall Corporate Offices –Washington, Vancouver,

Calgary, Edmonton, Toronto, Ottawa, Montreal

Joint Health and Safety Committees

Bentall Corporate Employees

Bentall Real Estate Operations –Across properties in Canada

and in the United States

Joint Health and Safety Committees and/or

Regional Representatives

Bentall Operations Employees

NATIONAL REAL ESTATE SERVICES

BENTALL OH&S COMMITTEE

Section 3

occupationalhealthandSafetYfRameWoRk


CASE STUDy

BuildingleadeRS:Bentall’SleadeRShipdevelopmentSeRieSThe Building Leaders Series is a modular curriculum designed to help establish

a consistent leadership framework at Bentall LP. Comprised of six Essential modules and six Elective modules, the Building Leaders Series is targeted to all front-line and middle managers at Bentall. The framework of the Building Leaders Series allows participants the flexibility to manage their already active schedules while still dedicating time to their own professional development. The objective of the series is to combine management theory with relevant and practical learning that can be immediately applied back on the job.

The sequence of the Essential modules was designed to ensure that each module builds upon the last and that participants have the opportunity to assimilate new concepts and practice their newly acquired knowledge and skills. To maintain momentum in the program, participants attend a module every four to six weeks. The topics addressed in the Essential modules are shown on the right.

Since Building Leaders was launched in March 2008, more than 180 Bentall leaders have successfully completed the requirements for the series. Overall, implementing the Building Leaders Series has drawn exceptional reviews from participants.

Participant Feedback99 percent of participants agree or strongly agree that the program was relevant to their needs.

98 percent of participants agree that the variety of learning methods aided in their understanding.

98 percent of participants feel confident in their ability to apply what they have learned back on the job.

95 percent of participants agree that they would use the Learning Contract to focus their efforts in the series.

module1:intRoductiontoleadeRShip• Establishes the foundation for the Building

Leaders series

• Explores the topic of employee engagement

• Introduces The 7 Hidden Reasons Employees Leave

• Initiates self-reflection

module2:undeRStandingpeRSonalStYleS• Introduces the DiSC® Model

• Explores individual preferences and tendencies

• Educates how to leverage employee strengths

• Initiates self-awareness

module3:leadeRShipcommunication• Introduces fundamental elements of communication

• Explores how to adapt your communication style

• Masters effective communication techniques

• Coaches how to approach difficult conversations

module4:managingpeRfoRmance• Introduces a collaborative appraisal process

• Reviews Bentall’s approach to performance management

• Identifies how to establish performance expectations

• Initiates proactive performance planning and management

module5:delegatingfoRgRoWth• Encourages leaders to “let go”

of some responsibilities

• Introduces delegation as a development opportunity

• Explores the concept of employee willingness & ability

• Reviews techniques to delegate successfully

module6:coachingfoRpeRfoRmance• Reviews key concepts introduced in the series

• Explores factors affecting employee performance

• Reviews fundamental approaches to coaching

• Introduces best practices for providing feedback

“ This program provides a fantastic opportunity to learn and grow as a leader.” – Rob Daciw, Graduate (Cohort 6)

Section 4

Our Community > Raisedmorethan$275,000 for local charities

> donatedmorethan$263,000 to charitable organizations

> Employee Charity Matching Program giving increasedby26percent over 2008

> Organized more than 200communityevents at our managed properties, involving more than 850hoursofvolunteertime

> in-kind donations exceeding $66,000

30 BENTALL LP

Section 4

Our Community

ouRappRoachIt is our employees – their time, effort and compassion – that enables Bentall to give back to its communities across a myriad of causes held together by a single idea – we are active in the communities in which we live and work, in every region across the company.

ouRReSultSOur commitment to our communities is realized through donations of time, dollars, and volunteers, at both the corporate and property level. We affect positive change in three spheres; relief for the most vulnerable members of our community by assisting in the provision of food and shelter; creating sustainable communities through investment and education and; supporting the chosen charities of our employees through our Charity Matching Program. As well, employee-driven fundraising and special events take place across the company – nationally

and within the local communities – and our people’s passion generates phenomenal results.

Motivated by the success and diversity of these activities, as well as by feedback from our employees, we plan to launch a Volunteer Policy that formalizes employer-paid volunteer time and enables us to track total volunteer time and the names of benefiting charities.

Corporate giving• $50,000 to the United Way, in

several regions across Canada

• $10,000 each to Covenant House Vancouver and Covenant House Toronto

• $10,000 to Interval House, a shelter for women and children

• $15,000 to First Nations Child and Caring Society of Canada

• Over $75,000 to food banks in every region

We support

$243,390

$242,038$263,143

CORPORATE CASH CONTRUBITIONS

2007 2008 2009

coRpoRatecaShcontRiButionS


Charity matching Employees are encouraged to give their time and their money to registered charities and programs of their own choosing. With every donation an employee makes to a charity of their choice, Bentall matches the donation through our Charity Matching Program up to a total per person annual value of $500.

Volunteering and fundraisingWe embrace the volunteer efforts of our people by supporting group and individual participation in charity work and events throughout the year during regular work hours. Events across the country – such as Habitat for Humanity, The United Way, Earth Week, CN Tower Climb, Commuter Challenge, Juvenile Diabetes, and Earth Hour to name just a few – are promoted and celebrated through our employee intranet portal.

Community EngagementAt the properties we manage, we are community engagement advocates. We work within our retail, office, industrial, and residential property portfolio, identifying opportunities to increase involvement within our communities and sharing our community-building approach with others. In 2009, we collectively:

• delivered more than 200 community and social events at our properties;

• raised more than $275,000 for local charities;

• contributed more than 850 hours of volunteer time;

• made over $66,000 of in-kind donations.

Corporate Donations – $263,000Charity Matching – $46,000Community Event Fundraising – $275,000In-kind Donations – $66,000Other – $15,000

2009 CHARITABLE GIVING

$27,000

$36,000$45,545

CHARITY MATCHING PROGRAMS

2007 2008 2009

Corporate Donations – $263,000Charity Matching – $46,000Community Event Fundraising – $275,000In-kind Donations – $66,000Other – $15,000

2009 CHARITABLE GIVING

$27,000

$36,000$45,545

CHARITY MATCHING PROGRAMS

2007 2008 2009

chaRitYmatchingpRogRam

2009chaRitaBlegiving

32 BENTALL LP

Our CommunitySection 4

makingagoodchoiceIn Bellevue, Washington, new building construction slowed due to the recession. This lead to several construction sites being abandoned throughout the area. Rather than leave another barren site, Bentall completed the parking garage and built a park for the community to enjoy until construction of the building could resume.

outdooRcommunitYAt Livingston Place in Calgary, Alberta, promoting health and wellbeing of occupants and fostering a sense of community for tenants were key design considerations. The property, owned by bcIMC Realty Corporation and developed by Bentall LP, features downtown Calgary’s largest outdoor plaza that boasts lush green space and an outdoor stage. Free entertainment with local musical talent is presented on a weekly basis during August and September. These live performances run through the lunch hour and are accessible to building occupants as well as the general public.

ShaRinginthejoYoftheholidaYSeaSonAt 6880 Financial Drive, Mississauga, ON, the property team work hard to support those in need, especially over the holiday season. Each year, working collaboratively with Royal Bank and their employees, a toy drive and food drive are held. In 2009, a section of the cafeteria was dedicated to a “toy mountain” and more than 900 toys were collected and donated to the CHUM/CP24 Christmas Wish fund. Santa sleigh, complete with reindeer was used to collect hundreds of non-perishable food items which were donated to the local food bank.

fundRaiSingfoRWoRkintegRationThe Sun Life Building in Montreal, Quebec, hosts on average one fundraising event every month except in December when events take place weekly. One of the organizations supported is the yWCA Montreal’s Fringues & Cie ecole-enterprise, which is a work-integration program providing training and paid work experience to young women having difficulty joining the workforce. The program fosters social and professional skills and acclimates participants to the pace of working life.

Our stories


hoWgReeniSYouRSchoolWindsor Crossing Premium Outlets in La Salle, Ontario reached out to 100 local elementary schools to invent green initiatives that would benefit their school and/or community. The program, How Green is your School?, presented numerous opportunities for curriculum connections and interdisciplinary learning, and helped instill environmental ethics and conservancy values in the community. Forty-seven schools submitted student-driven project proposals describing how they would make their school a more environmentally friendly place. A total award of $20,000 went to the three submissions that clearly demonstrated defined environmental benefits such as energy conservation, solid-waste reduction and/or school ground greening. First prize winners, Prince Edward Public school, received $10,000 to build an outdoor classroom that includes a vegetable garden, bird feeders and butterfly and bat boxes.

SaYnotoplaSticBagSRegional retail marketing directors work collaboratively with property management teams to build effective vehicles for engaging broadly within the community across a number of properties. The National Bank-a-Bag Program is one such initiative that was launched during Earth Week 2009. Tenants in the retail portfolio were asked to assist in reducing the number of bags that end up in landfills and over 28 percent of our retail tenants pitched in. By simply asking customers whether or not they wanted a bag for their purchase, they helped divert 50,763 bags from landfill.

paSSionfoRtRaShionIn Langley, British Columbia, Willowbrook Mall partnered with the Langley Fine Arts School and A Passion for Trashion was born. Senior visual arts students were challenged to create functional and aesthetic art out of garbage, recycled and reclaimed materials, for a public exhibit during Earth Week. What started out as a small exhibit grew in scope as excitement and awareness grew in the community. The exhibit was instrumental in creating a community dialogue about our consumer habits.

The project started with students researching and doc-umenting the waste they produced, then deciding how to use that waste to create functional and aesthetic art. Students were also required to develop paintings using the words “Reduce. Reuse. Recycle: It’s a Hierarchy.” They were instructed to create a work inspired by one of the 20th century masters, such as Picasso, Jackson Pollock, and Janet Fish. Turning trash into art students embraced the project and created paintings, mixed media works, sculptures, hangings, fashion apparel and accessories. The recycled fashion apparel and accessories included a ball gown made out of used

paper tablecloths, a dress made out of receipts, iPod holders made out of empty juice boxes, and a purse made out of used coffee filters.

So many unique fashion items were created that Willowbrook decided to organize a fashion event to complement the art exhibit. The Fashion Gala Fundraiser showcased the students’ creations in a runway fashion show and promoted Willowbrook’s Earth Week events. In addition, Willowbrook hosted a free art exhibit and silent action featuring works of art created by the students. All proceeds were donated by the students to the Sea Shepherd Conservation Society, a non-profit, marine wildlife conversation organization.

Our StakeholdersSection 5

> engageourteamthrough town hall meetings, green committees, education, Caught Green Handed engagement program

> communicatewithclients through reporting, presentations, bulletins, research, benchmarking, web portal

> Workwithsuppliersandcontractors through responsible contracting, ForeverGreen purchasing program and strategic partnerships

> connectwithtenants through communications, education, tenant design guides, tenant satisfaction surveys, ForeverGreen initiatives and social events

36

Our StakeholdersSection 5

Our approach to engagement involves creating targeted and specific opportunities to inform and be informed by those stakeholders who are impacted by or have impact on our business operations. It is through stakeholder communication and engagement that we seek the necessary insight to drive innovation and to continuously improve what we do and how we do it.

ouRemploYeeSWe demonstrate our commitment to being socially responsible through our actions:

• Annual town halls and leadership forums.

• Green committees.

• Purchase of renewable energy for our corporate offices in Calgary and Toronto.

• Caught Green Handed engagement program that includes Bentall Rideshare, a one-minute personal carbon calculator, and employee-engagement activities via paper-reduction competitions and commuter challenges.

• A power save program for desktop PCs, which reduced our carbon footprint by an estimated 250 tonnes of CO2e and saves an average of $30 per year per computer in energy costs.

• Comprehensive employee health and well-being benefits and giving programs.

• Various training programs, ranging from skills enhancement to sustainability awareness.

Additional information on how we engage our employees is found in Our Employees.

We partner

BENTALL LP


ouRclientSBentall’s service model is grounded by our responsible investment commit-ment and delivered through a platform of programs and practices aimed at improving the environmental and social characteristics of the properties we manage on behalf of our clients.

We work collaboratively with our clients to understand their investment strategies, and execute programs and initiatives aimed at delivering on their objectives. Further information on Bentall’s ethical and integrity-based approach in dealing with our clients is found in Our Exacting Standards. In addition to executing on our fiduciary goals and operational excellence, our focus is on greening our clients’ existing building portfolios through energy-reduction programs, sustainability initiatives, building certification programs and social initiatives. For new developments, we deploy innovative, market-leading green building design and construction practices.

We engage with our clients through a number of channels, seeking feedback and establishing communications and programs in response. Some key requirements and outcomes include:

• Communications that target specific properties and entire portfolios results, such as greenhouse gas emissions reporting.

• Annual business plans that speak to environmental issues.

• Regular presentations that identify trends and opportunities in sustainability and responsible property investment.

• Bulletins on hot topics and white-paper research initiatives.

• Peer asset portfolio performance benchmarking.

• Dedicated client web portal.

ouRSupplieRSandcontRactoRSIn addition to introducing our Responsible Contracting Policy and ForeverGreen Purchasing Program in 2008 (see Our Exacting Standards), we strategically partner with national/regional suppliers for a wide range of products and services, some of which include:

• Janitorial paper products

• Lighting products

• Paint recycling

• Carpet recycling

• Fluorescent tube recycling

• Preventative maintenance tracking

• Energy-efficient technologies and equipment

In addition, as part of the enhancements to our ForeverGreen Purchasing Program, over the next few years we will assess the sustainability of our supply chain and evaluate our spending habits. We anticipate seeing trends and opportunities and are committed to work with our suppliers to establish improvement programs.

38 BENTALL LP

Our Stakeholders

ouRtenantSWe engage with our tenants believing that there is a shared responsibility in the performance of the properties we manage and the impact they have on the environment and in the community.

Communication and educationRegular communications (newsletters, posters, email) about relevant issues such as ForeverGreen initiatives, maintenance issues and social events are regular and ongoing.

Our efforts also include promoting green design standards for tenant premises. Summary and detailed guides have been created across our managed office portfolio to educate tenants on sustainable design that incorporates LEED-CI principles and references. Increasingly, our tenants are looking for ways to green their premises and operations, and they look to Bentall’s property teams for help. To that end, we are increasing our commitment to staff education, through LEED Green Associate/ LEED AP and through a broader custom sustainability training solution that is slated for development in 2010 and launch in 2011.

Even where we are unable to directly implement initiatives at properties due to lease restrictions, we look for ways to influence our tenants to adopt more sustainable business practices. Our Industrial Insider newsletter is a prime example of how we engage tenants to think green, providing guidance on energy and water conservation, waste reduction strategies and other issues.

Ongoing feedback – tenant surveysWe believe that ongoing feedback is important to our continued success.

One of the feedback mechanisms we have designed to gauge our per-formance at each Bentall-managed property is a formal tenant satisfaction survey. The survey includes more than 100 metrics, such as the quality and timeliness of maintenance and cleaning service delivery.

We are committed to providing tenants with service levels that consistently meet or exceed their expectations. Tenant surveys are one way we have of measuring our performance against tenant requirements. Surveys

are conducted every two years, the most recent being in 2008 when we achieved an overall satisfaction rating of 94.5 percent.

The survey provides tenants with an anonymous vehicle for conveying their level of satisfaction and it provides us with critical data for initiating improvement programs, as well as a method to validate and measure past programs, year-over-year customer service scores and building improvements. The data gathered is a key factor used to improve our service delivery and improvement programs.

At the close of every survey, we communicate the survey results back to tenants and commit to an improvement plan for the property. The results are shared as a one-page, two-sided customized colour .pdf that is emailed directly to tenants. We also present clients with consolidated portfolio results and plans.

Section 5


CASE STUDy

eaRthdaYeveRYdaYWindsor Crossing, La Salle, Ontario Owner: OPTrust Retail Inc.

Consumer demand is growing for retailers to articulate and showcase their environmental programs and initiatives. Bentall LP works with our tenants to promote responsible property-management practices, including community engagement activities that illustrate our shared commitment to environmental responsibility.

One such example is Windsor Crossing, where “Fashionably Green – It looks good on everyone” is the tag line and the goal is to be sustainable and responsible 365 days a year.

Windsor Crossing is an outlet mall with more than 40 stores. Engaging with our tenants is paramount to the success of ongoing green programs, a few of which include:

• Bank-a-Bag Program in which store employees ask shoppers whether they need a bag for their purchase, rather than automatically providing one. Originally launched and tracked as part of Earth Week, the program has drawn a 100-percent participation rate from the retailers at Windsor Crossing, conserving close to 9,000 plastic bags.

• Energy Action Days wherein we work with tenants to reduce the demand for air conditioning by turning off unessential lighting when outdoor temperatures exceed 30 degrees Celsius.

• Re-useable Totes which are branded and utilized in promotional activities year round in various initiatives.

In addition, Windsor Crossing offers marketing programs designed to foster tenant/retailer participation and education. This high level of engagement, coupled with targeted events, has attracted attention: in 2009 Windsor Crossing received the BOMA Pinnacle Award for Above and Beyond, was recognized by Essex Region Conservation Authority’s (ERCA) Conservation Award for Environmental Achievement, and was presented a Silver Maple Leaf award by International Council of Shopping Centers (ICSC).

ouRinvolvementininduStRYandthecommunitYBentall supports and actively participates in industry associations. We are often involved in and take leadership roles on addressing matters that affect our industry.

Further information can be found in Our Exacting Standards.

Supporting our communities makes good business sense, and our com-munity participation at the corporate and property level is supported by our clients and tenants, and delivered through the passion of our people.

Further information can be found in Our Community.

> Reducedgreenhousegasemissionsby27percent at our corporate offices over the 2007 baseline year

Section 6

Our Environment

> Awarded the 2009 BomacanadapinnacleawardforinnovationforBoRiS, our state-of-the-art proprietary environmental risk management system

> Involved in BomaBeStandleed® certification at 250buildings comprising more than 35 million square feet across numerous client portfolios in Canada and the U.S.

> energyandwater intensities of Bentall-managed buildings are 7.2percent and18.7percentlowerthan the 2007 baseline year

42 BENTALL LP

Section 6

We aim to reduce the environmental impact of our operations and manage associated risks in a prudent manner. Our philosophy is one of internal responsibility, recognizing the impor-tance of effective communication, consultation and cooperation in the area of sustainability and environ-mental stewardship.

We conduct our services to meet or exceed the requirements of applicable statutes and regulations, and we deliver training programs that promote environmental responsibility and accountability.

We look to innovate and deliver on integrating sustainability and environmental stewardship into our corporate operations and property services. Custom tools and processes are developed in cooperation with our stakeholders, and are deployed across our corporate operations and the properties we manage. We are proud of the joint leadership Bentall shares with our clients and tenants and of the innovation that results from this collaboration.

ouRcoRpoRatefRameWoRkWe recognize that our corporate activities carry their own environmen-tal burden, in addition to the footprint of the buildings we manage. Our corporate leadership is demonstrated through action – creating programs and executing our goal of being carbon-neutral corporately.

Corporate line-upIn 2009 Bentall launched Caught Green Handed, our corporate sustainability program. The ongoing initiative aims to raise employee awareness and engagement by changing the way we do things that impact the environment. Key elements of Caught Green Handed include:

Measurement & Management: The Bentall One-Minute Carbon Calculator helps employees determine how they contribute to Bentall’s corporate carbon footprint. By answering a few simple questions about how they get to work and what

they do once they are there, every employee sees their work-related carbon footprint generated by this tool, which then offers solutions and ideas for reducing the footprint.

Waste & Energy: Reduce, reuse and recycle is applied to everything from printing reports to paper cups. We achieve lower energy usage by systematically shutting off monitors and setting power-saving options for computers. Double-sided default printing options have been adopted to reduce paper consumption where possible. A communications campaign encourages people to turn off office lights, unplug chargers and where possible, take the stairs rather than the elevators.

Transportation: Bentall Ride Share is a web-based commuting initiative that offers employees, across Canada in our corporate offices, green alternatives to traditional single-car use, from safe carpooling with colleagues, to biking and transit.

We protect We lead through action

Our Environment


We also leverage technology and alternative travel modes for client and team meetings and company conferences by using Adobe Connect Pro web-conferencing software.

Green Team: An employee-driven grassroots network and forum is our think tank for sharing ideas and taking action on climate change. The team is tasked with managing events such as The Great Paper Chase, an employee-driven program that encouraged friendly rivalry between corporate offices to reduce paper consumption, and Commuter Challenge Week, a cross-Canada event promoting transit, biking, walking or carpooling to work to reduce the greenhouse gas emissions associated with commuting.

Clean Green Energy: Bentall uses Bullfrog PowerTM for our Calgary and Toronto executive offices. Bullfrog PowerTM offers 100 percent green electricity generated exclusively from emission-free sources that are certified under the federal government’s Environmental Choice EcoLogoTM Program standard for renewable electricity.

Carbon Offsets: Bentall purchased carbon offsets through Carbonzero to support energy efficiency projects for social housing in Montreal.

CASE STUDy

BentallcommuteRchallengeBentall’s Commuter Challenge takes place during Canadian Environment Week in June, setting out to change the transportation behaviours of our employees. The goal is to reduce carbon emissions by taking public transportation, riding bikes, walking, running or carpooling to work.

Employees track their commuting activities via a web-based application that measures the reductions associated with the change in behaviour. In 2009, eight offices participated, representing 832 employees. The results? Bentall employees:

• Saved 15,893 kilometres of vehicle use

• Reduced greenhouse gas emissions by 3,491 kilograms

• Burned 35,104 calories by walking, running or biking

The Commuter Challenge is a part of our organizational DNA and we look forward to actively participating in the event for years to come.

ouRcoRpoRatefRameWoRk

emploYeeengagementBentall Ride Share One Minute Carbon Calculator Web Conferencing

gReenteamForum to share ideas Waste and Energy Cross Country Challenges

cleangReeneneRgY

caRBonoffSetS

caRBonneutRal

CA

R

BON NEUTRA

L

44 BENTALL LP

ouRcoRpoRateReSultSOur corporate carbon footprint in 2009 totalled 1,333 tCO2e representing a 27.2 percent reduction relative to our 2007 baseline year. We achieved these significant reductions in emissions by purchasing renewable energy credits, minimizing airplane business travel and, in part, by replacing overall travel requirements with enhanced video and web conferencing. We included employee commuting by automobile to and from work in our calculation. Employee commuting is the single largest source of emissions from our corporate operations and we are working to influence behavioural change in this area.

2007 Emissions Emissions Baseline 2009 % Source year Emissions Change

Mixed Source – Electricity 526 482 -8.5%

Renewable Energy Certificate Purchases 0 -241

Natural Gas – Heat 166 191 15.4%

Steam – Heat 1.2 0.9 -28.9%

Business Travel – Automobile 114 79 -30.9%

Business Travel – Airplane 324 239 -26.2%

Employee Commuting – Automobile 700 582 -16.8%

TOTAL tCO2e 1,831 1,333 -27.2%

Our EnvironmentSection 6

Mixed Source: Electricity Natural Gas: Heat Steam: Heat Business Travel: Automobile Business Travel: Airplane Employee Commuting: Automobile

CORPORATE GHG EMISSIONS INVENTORY BY CATEGORY – 1,333 tCO2e

44%

18%

6%

14%

18%

1%

2007 Emissions Baseline Year

Employee Commuting – Automobile

Business Travel – Airplane

Business Travel – Automobile

Steam – Heat

Natural Gas – Heat

Mixed Source – Electricity

2009 Emissions

GHG EMISSIONS BY SOURCE – tCO2e

Mixed Source: Electricity Natural Gas: Heat Steam: Heat Business Travel: Automobile Business Travel: Airplane Employee Commuting: Automobile

CORPORATE GHG EMISSIONS INVENTORY BY CATEGORY – 1,333 tCO2e

44%

18%

6%

14%

18%

1%

coRpoRateghgemiSSionSinventoRYBYcategoRY–1,333tco2e

ghgemiSSionSBYSouRce–tco2e


ouRRealeStateSeRviceSfRameWoRkWe manage the environmental performance of the properties under our care and are committed to a continuous improvement strategy of best practices based upon environmental sustainability principles, as well as social and economic responsibility for our real estate services.

Real estate services line-upBuildings are one of the largest contributors to greenhouse gas emissions (GHG) globally. According to World Business Council for Sustainable Development, these emissions represent an estimated 40 percent of the world’s energy use. We place significant emphasis on communicating the value of improving the environmental per-formance of our managed portfolio. That is why Bentall has formalized a strategy, invested in management systems and developed programs

and initiatives designed to reduce the environmental impact of the buildings we manage. Further information on our programs and initiatives can be found in Our Exacting Standards.

StrategyIn 2007, we developed a property-level sustainability strategy and guiding principles that formalized ongoing initiatives and our commitment to responsible environmental stewardship and sustainability for our property services. This strategy governs our actions at the properties we manage and includes five sections:

1 – Mission Statement2 – Objectives3 – Stakeholders4 – Leadership5 – The Three year Plan

The Three year Plan is a rolling plan (updated each year with an ongoing three-year horizon) that is

a continuous improvement strategy and establishes, on a priority basis, initiatives and objectives for respon-sible property management:

1. Energy, Water, Waste Management

2. Greenhouse Gases and Climate Change

3. Indoor Environment

4. Green Building Certifications

5. Sustainability Resource Centre

6. Branding and Marketing

7. Stakeholder Communication and Education

8. Social Responsibility

Our Sustainability Strategy is intended to preserve and enhance asset value through responsible property management practices that are fully aligned with our stakeholders’ expectations and with Bentall LP’s commitment to corporate social responsibility and sustainability.

We deliver through performance

46 BENTALL LP

Management systemsWe have developed and continue to improve upon two software-based systems – Eco Tracker and BORiS – that are focused on monitoring, measuring and reporting on environmental performance.

Eco Tracker is our state-of-the-art proprietary energy, water, waste and GHG management system that measures, benchmarks and reports on consumption data and GHG for our commercial office, enclosed retail and multi-residential managed property portfolio representing approximately 36-million square feet and $70-million of annual utility spend.

Eco Tracker offers a single management and reporting system for utilities and waste, while enabling real-time views of performance at a property level. Capabilities include:

• Tracks and reports GHG emissions at the site, region, client and national levels.

• Benchmarks annual consumption and costs against similar-size buildings, taking into account differences in weather and occupancy.

• Generates annual utility budgets based on robust historical data, weather and occupancy normalization, knowledge of energy markets and utility rates, and documented changes in building operation.

• Collects nightly electrical interval data in markets where available.

• Tracks utility budgets versus actual consumption and cost – updated in real time when interval data is available; accrual generation to suit accounting requirements.

• Conducts historical analysis of data and indicators (e.g. ekWh/SF, heating degree days, average $/kWh), on a monthly or annual basis, helping to identify usage anomalies or quantify progress towards reduced energy-use intensity.

• Enters waste data to evaluate the effectiveness of recycling programs and other initiatives.

Through Eco Tracker, we are able to align the conservation objectives of on-site personnel with Bentall’s sustainability goals.

BORiS (Bentall’s Online Risk Information System), launched in 2008, is a state- of-the-art award-winning proprietary tool for environmental management, regulatory compliance and due diligence. Its objectives are threefold: going beyond compliance with regulatory requirements and in-dustry standards, actively identifying potential risks across our portfolio, and proactively mitigating risks before they materialize.

BORiS is efficient, globally consistent and has the following benefits:

• Ensures consistent data collection, analysis and reporting on environ-mental issues to mitigate risk.

• Demonstrates diligence in environmental risks to regulators, tenants, building occupants and others.

• Generates incident-tracking information and other essential environmental documentation.

• Provides centralized storage of current and historical environmental documents including reports, data, photographs and physical property information.

• Tracks high-risk tenants in each property.

• Contains a reference library of environmental regulations in each jurisdiction including regulatory updates at the local, regional and national levels.

• Allows site-specific and portfolio reporting.

• Enables input of environmental data directly from approved environmental consulting firms via the internet.

In addition, we generate quarterly summary reports and annual environmental checklists by property, allowing us to report with confidence to clients and our Board of Directors on environmental matters.

Our EnvironmentSection 6

emploYeecommunicationSSeRieS


CASE STUDIES

aloftYplanParkways West Shopping Centre, Mississauga, Ontario Owner: Sun Life Assurance Company of Canada

Parkways West Shopping Centre, an open-concept retail mall comprising 100,000 square feet of gross leasable area with 500 surface parking stalls, was constructed in 1986 and acquired by Sun Life Assurance Company of Canada in December 2006. With vacancy and lease exposure exceeding 30 percent through 2007 and 2008, Bentall in partnership with Sun Life devised a three-year action plan to advance the Centre’s overall performance.

The goal was lofty: to increase occupancy and improve the environmental footprint of the property.

An expansive exterior renovation took place in 2009, and the action-plan included environmentally friendly measures proposed through a combination of operating procedures, tenant engagement and lighting technology improvements. All exterior build-ing signage was upgraded to LED backlit channel lettering, and exterior soffit lighting was changed to energy-efficient lighting. Environmental performance was enhanced through obtaining BOMA BESt certification, implementing environmentally preferable purchasing, introducing a recycling program, and conducting a property energy and water audit. Using Bentall’s Eco Tracker system, the property energy performance is monitored.

On all fronts, the program goal was met. By the end of 2009, the Centre’s vacancy rate decreased to six percent. Electricity consumption and associ-ated greenhouse gases were reduced by 25 percent in 2009 versus the 2007 baseline year, while occupancy increased and the major exterior renovations took place.

BeYondtheBulBBristol Court Apartment Building, Mississauga, Ontario Owner: bcIMC Realty Corporation

Upgrades to lighting in multi-residential buildings typically consist of replacing an incandescent light bulb with a compact fluorescent light bulb (CFL). This conversion works well when residents continue to use CFLs over time. The difficulty is that the environmental and economic outcome is not guaranteed – residents can revert back to incandescent bulbs at any time and therefore the benefits can be diminished.

That is why Bentall piloted a project at Bristol Court, a 15-storey apartment building with 113 suites, which required thinking beyond the bulb. In conjunction with our residential management partner, Realstar, an in-suite lighting upgrade was completed in May 2009. Not only were the bulbs replaced, the light fixtures themselves were changed to dedicated compact fluorescent fixtures with fittings that only accept CFLs. Without affecting lighting levels, consumption was reduced from 60W to 13W. In addition, the new light fixtures are more aesthetically pleasing with a more modern and appealing design.

The Results: A 75 percent reduction in electricity usage from in-suite lighting was achieved, representing an annual cost savings of about $12,000 per year ($100 per suite) and a five-year simple payback. Overall, the building’s total electricity consumption has been reduced by nine percent – the equivalent of powering eleven average single-family houses per year.

After renovation: stucco with LED backlit channel lettering and exterior soffit lighting.

Before renovation: blue canopies with metal halide exterior lighting and fluorescent backlit signs.

Kitchen – After

Bathroom – After

Kitchen – Before

Bathroom – Before

48 BENTALL LP

SuStainaBleBuildingSGreening our portfolio is a key focus at Bentall, and our efforts are verified through third-party certification programs, which lends credibility to the performance of the properties and to the programs, processes and practices we implement.

As early adopters of green building certification, our activities span across 250 buildings involved in BOMA BESt and LEED certification, totaling over 35.4 million square feet across numerous client portfolios in Canada and the U.S. Bentall is proud to have helped shape green certification standards for existing buildings.

The BOMA BESt certification program focuses on existing buildings in Canada.

In 2003, Bentall was the first to certify a green building, the Bentall Centre in Vancouver, under the BOMA Go Green (now BOMA BESt) certification program for existing commercial buildings. In 2005 we advanced our clients’ office property portfolios through this certification standard. Our teams have actively participated in the development of BOMA BESt for other asset classes at local and national levels. At the end of 2009, Bentall had the greatest number of green buildings certified under BOMA BESt certification program of any private sector organization in Canada.

Leadership in Energy and Environ-mental Design (LEED) certification programs are administered by the Canadian Green Building Coun-cil (CaGBC) and the United States Green Building Council (USGBC) in their respective jurisdictions. There are different certification schemes, including LEED for New Construc-tion & Major Renovation (LEED-NC), Core & Shell (LEED-CS), Commercial

Interiors (LEED-CI) and the recently added Existing Buildings: Operations & Maintenance (LEED-EB:O&M).

In 2007, one of our senior leaders was Chair of a CaGBC pilot study that embarked on developing LEED for existing buildings specific to the Canadian market. Through our involvement we contributed to shap-ing the LEED-EB:O&M certification standard that was released in the fall of 2009. By the end of 2009, Bentall had 13 buildings totaling 6.1 million square feet registered or certified under LEED-EB:O&M standards in Canada and the U.S.

When it comes to development or re-development projects, we cost-effectively adopt innovation and sustainable design in buildings for

our clients. We have learned that by emphasizing integrated design and assembling a committed team early in the development process, we can greatly reduce costs and potential delays. By the end of 2009 Bentall had 13 development / redevelopment projects representing more than 1.9-million square feet that were certified or pending certification in Canada and the U.S.

Lastly, we have started to incorpo-rate green considerations into the decision-making process for property acquisitions. In 2009, as part of our due diligence process, we assessed the energy performance of prospective acquisitions to determine whether it was likely to achieve third-party certification.

Our Environment

gReenBuildingceRtificationSaSofdecemBeR2009

Section 6

Total # of BOMA BESt Buildings square feet

Level 1 184 21,110,464

Level 2 23 5,020,297

Level 3 24 4,848,476

Level 4 2 706,200

Total 233 31,685,437

Total # of LEED Buildings square feet

LEED-NC 9 1,527,114

LEED-CS 4 410,116

LEED-EB:O&M 13 6,095,526

Total 26 8,032,756


gReenBuildingceRtificationSaSofdecemBeR2009

BOMA BESt LEVEL 4

Building: Cloverdale Mall, Etobicoke, ON

Owner: bcIMC Realty Corporation

LEED-CS GOLD

Building: 6897 Financial Drive, Mississauga, ON

Owner: bcIMC Realty Corporation

BOMA BESt LEVEL 3

Building: Sheldon M. Chumir Health Centre, Calgary, AB

Owner: Alberta Health Services

LEED-EB:O&M GOLD AND BOMA BESt LEVEL 3

Building: 150 King Street West, Toronto, ON

Owner: Sun Life Financial

BC 6 LEED 578,803 SF

73 BOMA BESt 9,305,125 SF

AB 9 LEED 3,152,063 SF

69 BOMA BESt 9,828,759 SF

ON 8 LEED 2,636,686 SF

83 BOMA BESt 10,661,005 SF

PQ 8 BOMA BESt 1,890,548 SF

WA 3 LEED 1,665,204 SF

50 BENTALL LP

ouRRealeStateSeRviceSReSultSThe environmental performance of the properties we manage is included in this report to demonstrate the cooperative efforts of Bentall and its clients. International Protocol (WRI/WBCSD GHG Protocol) reporting standards were used to prepare this report which considers the following:

• Baseline adjustments are permitted in future years to account for property acquisitions and dispositions whereas the baseline is not changed for new developments as this is considered a new energy consumption source.

• No adjustments are made for such factors as degree days (weather fluctuations), vacancy or density. In simple terms, a vacant building would have a positive impact on GHG emissions reporting using the International Protocol while a 24/7 high density call centre facility would have a negative impact.

Consumption and associated greenhouse gas emissions (GHG) provided are calculated using a (client level) financial control approach of

the Protocol. To respect the privacy of our clients, data in this report is shown in consolidated summary format. Our role is one of influence; in accordance with the Protocol, Bentall has neither control of nor equity share in the assets. We account for and report portfolio emissions to our clients based on their desired methodology.

With Eco Tracker we closely measure the consumption and emissions performance of office, enclosed retail and multi-residential properties. Natural gas, electricity, water, steam and deep lake water cooling are included. Consumption at indus-trial and strip-retail properties is not included nor is consumption at certain office properties, where for the most part energy and water are separately metered and paid directly by the tenant. Through various data testing and analyses, we have deter-mined that Eco Tracker properties represent more than 90 percent of the consumption and greenhouse gas emissions of our managed portfolio.

Energy and water performance – consumption, emissions and intensitiesThe carbon footprint of our man-aged portfolio in 2009 totalled 238,005 tCO

2e. The size of the port-folio grew by close to 11 percent while total energy use and total emissions increased at a much slower pace of 2.9 percent and 7.1 percent respec-tively. On an intensity basis, this shows energy conservation measures and ongoing initiatives have delivered favourable reductions in 2009 relative to the 2007 baseline year. Similarly, the decrease in water consumption that occurred as the portfolio grew demonstrates significant reductions through program implementation.

The result: A net decrease in consumption and emissions was achieved relative to portfolio growth.

10.8 percent increase in portfolio size

2.9 percent increase in absolute energy

7.1 percent increase in absolute emissions

8.5 percent decrease in water

Our Environment

annualeneRgYconSumption(ekWh)

Chilled Water Steam Electricity Oil Natural Gas

Direct

Indirect

3868,313

667,0553,451

297,648

1,1358,842

676,9393,440

311,443

8298,368

676,7203,477

316,366

2007

2007

976,853

Total ('000)

1,001,800(2.6%)

1,005,760(.4%)

2008

2008

2009

2009

30.8%69.2%

31.4%68.6%

31.8%68.2%

Section 6

aReachangeSoveRBaSelineYeaR(squarefeet)

2007 Baseline Year

Total 2009 Area 33,854,803 (10.8% over baseline year)

2007/8 New Developments (increase of 5.6%)

2007/8 Net Acquisitions/Dispositions (increase of 5.2%)

2009 Portfolio Size

1,719,6081,581,942

30,553,2532007 Baseline Year




2009 Portfolio Size

1,719,6081,581,942

30,553,253

2007 Baseline Year




2009 Portfolio Size

1,719,6081,581,942

30,553,253


CASE STUDy

Southern Alberta is the first region in Canada to grapple with prolonged water scarcity. Alberta has only 2.2 percent of Canada’s renewable freshwater, and 80 percent of that water is in the north, while 80 percent of its population in the south. Water scarcity is being driven by a growing population trend, periodic droughts and climate change. As well, significant annual price increases to municipal water rates are expected to continue well above the rate of inflation.

At 11 industrial properties managed by Bentall, a significant opportunity was identified to conserve water and stabilize costs by reducing the amount of water used for irrigation, while retaining the health of sod, trees and shrubs.

Relative to the size of their building footprints, these properties have large landscaped areas that are irrigated to maintain the landscape.

The program spans two years. In 2009, Bentall completed water audits, assessed financial and environmental impacts, researched and selected technologies, and upgraded controls systems. The complete systems will be installed and operating for the 2010 summer season and their performance will be verified in the fall.

The technology we chose is a climate-controlled irrigation system. It measures rainfall and moisture loss to determine when to water – hot, windy weather requires more frequent watering than cooler overcast weather – and conducts proactive and predictive rain testing through a connection to the nearest weather station. The projected outcome: a 35-percent reduction in water consumption, totaling 21-million litres of water (equivalent to the average annual use of 190 households), yielding a 3.2-year payback.

conSeRvingfReShWateRSouth Calgary Industrial Portfolio, Calgary, Alberta 11 properties owned by Sun Life Assurance Company of Canada, bcIMC Realty Corporation and Westpen Properties Ltd.

Sun Life: Rangewinds Buildings G & H4760-72nd Ave S.E.

bcIMC: South Foothills AFoothills North #3 South Glenmore Distribution Centre East Foothills 3 & 4 Canals A

Westpen: 4800 & 4900 52nd Street SE

Note: All water consumption is from regionally based water authorities. Water used through rain/grey water capture systems is not included.

annualgReenhouSegaSemiSSionS(tco2e) annualWateRconSumption

92 1,984

164,367 878

54,904

269 2,110

174,915 878

57,473

1972,000

176,532 887

58,390

Chilled Water Steam Electricity Oil Natural Gas

Direct

Indirect

2007

222,227

235,645 (6.5%)

238,005 (.8%)

2008 2009

25.1%74.9%

24.8%75.2%

24.9%75.1%

2007

2008

2009

3,406 m3 3,215 m3 (-5.6%)3,131 m3 (-2.6%)

Annual Water Consumption (´000)

2007 2008 2009

3,406 m3 3,215 m3 (-5.6%)3,131 m3 (-2.6%)

Annual Water Consumption (´000)

2007 2008 2009

52 BENTALL LP

Our Environment

One of the metrics used to track portfolio performance is intensity levels. This is defined as consumption or emissions divided by square footage of the property portfolio. Intensity metrics are useful in demonstrating reductions on a relative basis – in this case, square feet (SF).

Intensity metrics also allow for benchmarking properties within and between asset classes.

At 33.9 ekWh per SF, office has the highest energy intensity while having the lowest water intensity of 82.3 litres per SF and solid-waste intensity of 0.4 kilograms per SF. Retail has the lowest energy intensity. This is generally a result of consumption being derived from common spaces only. The majority of retail tenants pay directly to the utility company for their separately metered energy and water, and are often responsible for management of their premises’ solid waste disposal.

Section 6

intenSitieSBYaSSetclaSS–eneRgY,WateRandWaSte

Energy – ekWh/SF

33.9

11.0

27.1

Solid Waste kg/SF

3.1

0.4 0.6

OfficeRetailMulti-Residential

Energy, Water & Waste IntensitiesBy Asset Class For 2009

179.1

91.782.3

Water – litres/SF

OfficeRetailMulti-Residential

Energy, Water & Waste IntensitiesBy Asset Class For 2009

179.1

91.782.3

Water – litres/SF

poRtfoliointenSitieS

2007 2008 2009

Square Feet (SF) 30,553,253 33,434,159 33,854,803 Energy (ekWh) 976,853,000 1,001,801,000 1,005,763,000

Intensity per SF 31.97 29.96 29.71

Net Change % – Increase / (decrease) (6.3%) (0.9%)

Emissions (tCO2e) 222,227 235,645 238,005

Intensity per SF 0.00727 0.00705 0.00703


Water (m3) 3,450,891 3,215,378 3,131,206

Intensity per SF 0.11295 0.09617 0.09249



CASE STUDy

miSSion“zeRoWaSte”Meadowvale North Business Park (MNBP), Mississauga, OntarioOwner: 2725312 Canada Inc. (bcIMC)

Achieving zero waste is not an easy task. It means diverting a minimum of 90 percent of waste from landfill and requires a dedicated team who collaborates with multiple stakeholders and employs plenty of ingenuity.

The Mission: Zero waste.

The Tactics: Reduce – Elimination/reduction of disposable coffee cups and/or takeout containers.

Recycle – All paper towels in washrooms and kitchens; full organic recycling program in all kitchenettes and cafeterias; three-stream waste receptacles (cans, bottles, paper waste) at each workstation; battery, cell phone and toner recycling; and e-waste drives.

Re-use – Together, the Peel Region Creative Zone and Bentall created a warehouse to collect surplus office supplies donated by MNBP tenants. Over the last six months of 2009, MNBP redirected some 10,000 kilograms of material from the waste stream to the Peel Region Creative Zone. This warehouse is open to all teachers within Peel Region, at no cost, to source potential school supplies, craft material and such items as overhead projectors, tables and much more.

Waste to Energy Program – Our waste-removal contractors partnered with us to harness 50 percent of all waste that would have been designated for landfill—instead it has been incinerated and turned into energy, generating electricity.

The Result: Mission accomplished and in 2009 the following resources were preserved:

• 4,292 trees • 101 tonnes of greenhouse gas • 1,394,951 kWh of energy • 862,992 litres of oil • 2,246 cubic meters of landfill space • 6,857 kilograms of air pollutants

• 6,689,368 litres of water

Waste performanceIn 2008 we launched Waste Tracker and in 2009 it was integrated with Eco Tracker. Waste Tracker is used to record waste generation and recycling of materials such as paper, cardboard, and wood. Key performance metrics include tonnes of solid waste generation per SF and waste diversion rates at property or portfolio levels. Benchmarking across similar properties as well as year-over-year comparison analyses are part of enhanced reporting capabilities.

Our overall waste diversion from landfill rate in 2009 was 42 percent. Average diversion rates vary across the country, generally due to regula-tory influences and the corresponding lack of recycling facilities available in these regions. Property types also have varying degrees of intensity, with multi-residential properties having the greatest intensity levels mainly due to the lack of municipal programs.

Waste Stream* Total Metric Tonnes

Trash (to landfill) 15,771.56Trash (to energy) 515.00Recycling 6,009.65Cardboard 2,826.95Compost 971.08Wood 206.48Metal/Steel 109.06Other – recycled 756.86Total Waste 26,651.64Total Diverted from 11,163.33 Landfill (including waste to energy @ 55%) Diversion Rate 42%

In 2009, we calculated GHG associ-ated with solid waste. Total indirect emissions were 34,272 tCO2e, repre-senting approximately 12 percent of overall emissions across all inventoried properties.

Diverting waste from landfill not only conserves resources, it is also a greenhouse gas reduction strategy. By reducing waste to landfill, we reduce methane gas emissions (CH4) associated with landfill off-gassing, which has higher global warming potential than carbon dioxide (CO2).

* Includes properties tracked on Eco Tracker – office, enclosed retail and multi-residential properties. Industrial and strip-retail properties are not included nor are office properties where waste is managed and paid directly by the tenant.

We have set the following key objectives, which we are committed to incorporating in future reporting efforts:

• Improve data gathering throughout the organization in a more systematic way to assist with producing regular sustainability reports.

• Transition from manual checklists to a database system for tracking social and environmental key performance indicators and property attributes for 2011.

• Expand Eco Tracker in 2011 to permit the input of property-level energy-efficiency initiatives and correlate the impact these projects have on reducing greenhouse gas emissions at the property and portfolio level.

• Formalize a charity activity policy for our people in 2010 to continue supporting the communities where we live and work.

• Continue to reduce the environmental impact of our corporate operations.

We plan ahead

Our Future

• Develop a more systematic approach in 2010 to advance our efforts to “green-screen” properties through the acquisition process.

• Enhance our education and communication efforts with tenants and residents about green buildings as measured by third-party green building certification programs in 2011.

• Track and maintain sustainability scores for suppliers and contractors (using 80/20 rule) by mid-2012 for goods and services that have higher spending and/or greater environmental impact.

• By the end of 2011, engage all major clients in discussions on setting targets for reducing the environmental impact of their properties.

• Develop robust and standardized recycling programs across all property types by mid-2011, aimed at reducing waste and increasing diversion rates.

• Certify eligible industrial and open-concept retail managed properties utilizing BOMA BESt certification standard by the end of 2012.

“ We are made wise not by the recollection of our past, but by the responsibility for our future.” – George Bernard Shaw

56 BENTALL LP

Bentall LP

GRI Index

Page

StRategYandanalYSiS1.1 Statement from the most 2-3

senior decision-maker of the organization about the relevance of sustainability to the organization and its strategy

1.2 Description of key 2-3, 7-8, 13 impacts, risks, and opportunities

oRganizationalpRofile2.1 Name of the organization 1

2.2 Primary brands, products, 6 and/or services

2.3 Operational structure 6 of the organization

2.4 Location of organization’s 6 headquarters

2.5 Number of countries where 6 the organization operates, and names of countries with major operations

2.6 Nature of ownership 6 and legal form

2.7 Markets served 6-7

2.8 Scale of the reporting 6-7 organization

2.9 Significant changes during 7 the reporting period

2.10 Awards received in the 16 reporting period

RepoRtpaRameteRS3.1 Reporting period 1

3.2 Date of most recent See notes previous report

3.3 Reporting cycle See notes

3.4 Contact point for questions 1 regarding the report or its contents

3.5 Process for defining report 1 content (determining materiality; prioritizing topics within the report; and identifying stakeholders the organization expects to use the report)

3.6 Boundary of the report 1 (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers)

3.7 Limitations on the scope 1 or boundary of the report

3.8 Basis for reporting on joint 1 ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations

Page

3.9 Data measurement 1, see notes techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

3.10 Explanation of the effect See notes of any re-statements of information provided in earlier reports, and the reasons for such re-statement

3.11 Significant changes from See notes previous reporting periods in the scope, boundary, or measurement methods applied in the report

3.12 Table identifying the 56-58 location of the Standard Disclosures in the report

3.13 Policy and current practice 57 with regard to seeking external assurance for the report

goveRnance,commitmentS,andengagement4.1 Governance structure of 12

the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight

4.2 Indicate whether the Chair 13 of the highest governance body is also an executive officer

4.3 For organizations that have 13 a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. State how the organization defines independent and non-executive

4.4 Mechanisms for shareholders 14 and employees to provide recommendations or direction to the highest governance body

4.5 Linkage between compensation 12 for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance)

4.6 Processes in place for the 14 highest governance body to ensure conflicts of interest are avoided

Page

4.7 Process for determining the 12 qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics

4.8 Internally developed 9, 12, 14-15 statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation

4.9 Procedures of the highest 13 governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, etc.

4.10 Processes for evaluating 12 the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance

4.11 Explanation of whether and 15 how the precautionary approach or principle is addressed by the organization

4.12 Externally developed economic, 9 environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses

4.13 Memberships in associations 13 (such as industry associations) and/or national/international advocacy organizations in which the organization: Has positions in governance bodies; Participates in projects or committees; Provides substantive funding beyond routine membership dues; or Views membership as strategic

4.14 List of stakeholder groups 36-39 engaged by the organization.

4.15 Basis for identification and 36 selection of stakeholders with whom to engage

4.16 Approaches to stakeholder 36-39 engagement, including frequency of engagement by type and by stakeholder group

4.17 Key topics and concerns 36-39 that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting


Rep

ort

Ext

ern

ally

Ass

ure

d

Rep

ort

Ext

ern

ally

Ass

ure

d

Rep

ort

Ext

ern

ally

Ass

ure

d

Report on:

1.1 2.1 – 2.10 3.1 – 3.8, 3.10 – 3.12 4.1 – 4.4, 4.14 – 4.15

Report on all criteria listed for Level C plus:

1.2 3.9, 3.13 4.5 – 4.13, 4.16 – 4.17

Same as requirement for Level B

C C+ B AB+ A+

G3 Profile Disclosures

ou

tp

ut

Not Required Management Approach Disclosures for each Indicator Category

Management Approach Disclosures for each Indicator Category

G3 Management Approach Disclosures

ou

tp

ut

Report on a minimum of 10 Performance Indicators, including at least one from each of: Economic, Social and Environmental.

Report on a minimum of 20 Performance Indicators, at least one from each of Economic, Environmental, Human rights, Labor, Society, Product Responsibility

Report on each core G3 and Sector Supplement* Indicator with due regard to the Materiality Principle by either: a) reporting on the Indicator or b) explaining the reason for its omission

G3 Performance Indicators & Sector Supplement Performance Indicators o

ut

pu

t

We self-declare this report at a GRI application level B. We did not seek external assurance of our 2009 CR&S report.

Economic IndicatorsGRI REALPac Page

Disclosure on 6-8 Management Approach

EC1 ECO1 Direct economic 7, 30-31, ECO2 value generated see notes and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments

EC2 ECO1 Financial 15, 45 implications and other risks and opportunities for the organization’s activities due to climate change

GRI REALPac Page

Disclosure on 42 Management Approach

ENV1 Building ratings 48

EN3 ENV2 Direct energy 44, 50 consumption by primary energy source

EN4 ENV2 Indirect energy 44, 50 consumption by primary source

EN7 ENV2 Initiatives to reduce 42-44 indirect energy consumption and reductions achieved

EN8 ENV4 Total water withdrawal 51 by source

EN16 ENV3 Total direct and 44, 51 indirect greenhouse gas emissions by weight

EN17 ENV3 Other relevant indirect 44 greenhouse gas emissions by weight

GRI REALPac Page

EN18 Initiatives 42, 46, 50-51 to reduce greenhouse gas emissions and reductions achieved

EN22 ENV5 Total weight of 53 waste by type and disposal method

EN28 Monetary value see notes of significant fines and total number of non-monetary sanctions for non- compliance with environmental laws and regulations

Environmental Indicators

58 BENTALL LP

Bentall LP

GRI Index

Social IndicatorsGRI REALPac Page

Disclosure on 20-26 Management Approach

laBouRLA1 SOC1 Total workforce by 20-21

employment type, employment contract, and region

LA2 SOC1 Total number and 23 rate of employee turnover by age group, gender, and region

LA7 SOC2 Rates of injury, 25 occupational diseases, lost days, absenteeism and total number of work-related fatalities, by region

LA8 SOC2 Education, training, 25-26 counseling, prevention and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases

LA10 SOC3 Average hours of 22 training per year per employee by employee category

LA11 SOC3 Programs for skills 22-23 management and lifelong learning that support the continued employability of employees and assist them in managing career endings

LA12 SOC3 Percentage of 22 employees receiving regular performance and career development reviews

LA13 SOC1 Composition of 13, 21 governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity

GRI REALPac Page

humanRightSHR2 SOC5 Percentage 15, see notes

of significant suppliers and contractors that have undergone screening on human rights and actions taken

HR4 SOC5 Total number 14, 16 of incidents of discrimination and actions taken

SocietYSO1 SOC4 Nature, scope, and 31, 45

effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting

SO5 SOC6 Public policy positions 13 and participation in public policy development and lobbying

SO8 SOC6 Monetary value see notes of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

pRoductReSponSiBilitYPR5 Practices related 37-38

to customer satisfaction, including results of surveys measuring customer satisfaction

Notes and additional information

3.2 This is Bentall LP’s first CR&S report.

3.3 We intend to follow a bi-annual reporting cycle with progress reports in alternate years.

3.9 Some measurement details are provided with the specific indicator data.

3.10 This is not applicable as this is Bentall LP’s first report.

3.11 This is not applicable as this is Bentall LP’s first report.

EC1 As Bentall is a private company, some financial information pertaining to revenues, earnings, operating costs and payments to capital providers is confidential.

EN28 There were no signifigant fines or non-monetary sanctions for non-compliance with environmental laws and regulations in 2009.

HR2 All suppliers or contractors with contract values of more than $50,000 must comply with Bentall’s Responsible Contracting Policy (see page 15 for further details).

SO8 There were no signifigant fines or non-monetary sanctions for non-compliance with laws and regulations in 2009.

This is Bentall LP’s first Corporate Responsibility and Sustainability report, designed to provide information to our stakeholders on our sustainability efforts for the calendar year 2009.

In preparing our inaugural story, we quickly learned that the key to creating a good report was not as simple as doing great things. The burden of data collection, information gathering and analysis was greater than anticipated and impacted the timing of completing the report.

We recognize the Global Reporting Initiative’s G3 framework, used as a guide in creating this report, identifies timeliness as an indicator of report quality. Though we did not hit the mark on this G3 principle, we would like to express our confidence in the quality, depth and reliability of information contained in the report. Further, we believe that the timing of the report does not adversely impact the decision-making of our stakeholders.

We hope you found our Corporate Responsibility and Sustainability report informative and look forward to sharing our future efforts with you.

55 University Avenue, Suite 300, Toronto, ON M5J 2H7

www.bentall.com