BROOKFIELD PROPERTIES ANNOUNCES ENTIRE U.S. OFFICE PORTFOLIO TO BE POWERED BY ZERO EMISSIONS ELECTRICITY

One of Largest Office Portfolios in the U.S to be 100% Zero Emissions Electricity by 2026

NEW YORK, June 28, 2023 /PRNewswire/ -- Brookfield Properties today announced the entire U.S. office portfolio it manages will be powered by zero emissions electricity by 2026. More than 65% of its office space, including the entirety of its New York and Washington, D.C. office portfolios, will transition to zero emissions electricity by 2024, making Brookfield Properties by far the nation's largest commercial real estate user of zero emissions electricity [source]. In 2026, 100% of its U.S. office portfolio will transition to zero emissions electricity.

By entering into contracts for approximately 600,000 MWh of electricity these properties use annually from zero emissions generation sources, Brookfield Properties will achieve the equivalent of avoiding over 260,000 metric tons of CO₂ equivalent each year, or the equivalent of the CO₂ emissions from almost 300 million pounds of coal burned [source]. The transition is expected to reduce the total direct carbon emissions of Brookfield's U.S. office portfolio by approximately 80%. Brookfield Properties office tenants will eliminate Scope 2 carbon emissions associated with their electricity consumption, assisting them with measurable progress that can be included in their own ESG reporting.

Brookfield's more than 70-million-square-foot U.S. office portfolio is among the largest in New York, Washington, D.C, Houston, Los Angeles, and Denver.

"Instead of taking incremental steps or waiting for others to act, we are completely transforming how we power office buildings throughout the United States," said Ben Brown, Managing Partner, Brookfield Real Estate. "Not only will it significantly advance our goal of transitioning our entire portfolio to net zero carbon, but also we are confident that both the increased demand for zero emissions electricity it will create and the industry precedence it will set will be a game-changer for how state-of-the-art office buildings are powered throughout the country."

Brookfield Properties will procure electricity for its U.S. office properties from three sources: hydropower (49%), solar and wind (33%), and nuclear (18%). More than 85% of power will come from new plants enabled by Brookfield Properties' commitment or bundled Purchase Power Agreements (PPAs), where Brookfield directly buys local zero emissions electricity and receives the associated Energy Attribute Certificates (RECs or EFECs). In Denver and Virginia, where there is not a direct PPA option available, Brookfield will purchase renewable power from within the same grid through virtual power purchase agreements. As direct-purchase options for local supplies of zero-emissions electricity become available, Brookfield plans to switch to direct sources.

In New York, Washington D.C. and Maryland, Brookfield will enter into contracts with 24/7, zero emissions electricity providers, buying electricity that will be delivered to local power grids at the same time that Brookfield's office buildings draw electricity from those same grids. In the remaining markets, Brookfield Properties will procure local renewable electricity from solar and wind power plants. In all markets, 100% of the electricity used by the Brookfield office portfolio will be purchased from generation sources within the same power grid in which the electricity is used. Buying locally incentivizes the development of new regional clean energy sources, supporting decarbonization goals and providing a more direct connection between the source of energy generation and location of energy consumption.

Electricity Sources by Market:

New York – Bundled PPAs: Just as is already being done for Brookfield's One Manhattan West tower, the New York office portfolio will purchase electricity generated from hydropower facilities located throughout New York State.

Washington, D.C. and Maryland – Bundled PPAs: Office properties in Washington, D.C. and Maryland will purchase 100% of the region's electricity requirements from nuclear power facilities within the PJM grid, equipped by Westinghouse Electric Corporation, a Brookfield portfolio company.

Houston – New Build: Brookfield Properties will facilitate the construction of a newly built, Texas-based solar power plant to supply 100% of the electricity for its Houston office portfolio.

Los Angeles – New Build: Brookfield Properties will facilitate the construction of a newly built, California-based solar power plant to supply 100% of the electricity for its L.A. office portfolio.

San Francisco – Community Choice Aggregation: Office properties in San Francisco will purchase power through CleanPowerSF's SuperGreen program, a local community choice aggregation program of the San Francisco Public Utilities Commission that provides renewable electricity from solar and wind power generated within California.

Denver – Same-Grid Certificates: Office properties in Denver, which is in a regulated energy market that limits the ability for direct power purchase agreements, will purchase renewable electricity certificates from local wind power facilities equivalent to 100% of the properties' electricity requirements.

Virginia – Same-Grid Certificates: Office properties in Virginia, which is in a regulated energy market that limits the ability for direct power purchase agreements, will purchase emissions free electricity certificates from in-grid nuclear power facilities equivalent to 100% of the properties' electricity requirements.

"ULI Greenprint applauds Brookfield's leadership to procure zero emissions electricity for its entire U.S. office portfolio by 2026," said Marta Schantz, Co-Executive Director of the Randall Lewis Center for Sustainability in Real Estate at the Urban Land Institute. "This is an important step in Brookfield's journey to net zero and an indication of the company's commitment to ULI Greenprint's net zero carbon operations by 2050 goal."

"We know our membership is full of changemakers accelerating the clean energy transition. Brookfield Properties' recent announcement to transition its entire U.S. office portfolio to carbon-free electricity is an excellent demonstration of that commitment," said Kevin Hagen, Interim-CEO, Clean Energy Buyers Association (CEBA). "This announcement sends a strong market signal and encourages wider adoption of this strategy to scale decarbonization efforts and exemplifies the leadership of Brookfield Properties within CEBA as we continue to cultivate an impact-oriented community."

Brookfield Properties operates U.S. office assets on behalf of Brookfield Asset Management (Brookfield). In March 2021, Brookfield became a signatory to the Net Zero Asset Managers (NZAM) initiative to support the ambition of achieving net zero GHG emissions by 2050 or sooner. In 2022, Brookfield created its 2030 net zero interim target, setting a commitment to reduce emissions by two-thirds by 2030 across $147 billion (approximately one-third) of its real estate assets under management from a 2019 base-line year. Brookfield Properties committed to executing Brookfield's Net Zero pledge, and in 2021, signed onto the Urban Land Institute's Greenprint Center for Building Performance net zero goals.

The decision to convert the entire U.S. office portfolio to zero emissions electricity significantly advances those goals and follows Brookfield Properties' March 2022 announcement that One Manhattan West, a state-of-the-art office tower located within Brookfield Properties' Manhattan West development, would be powered 100% by Brookfield Renewable's hydropower facilities located in upstate New York. That is one of the largest intrastate renewable energy agreements for a single building in New York State and alone made Brookfield Properties a major user of renewable electricity.

About Brookfield Properties: 
Brookfield Properties is a leading global developer and operator of high-quality real estate assets. The company is active in nearly all real estate sectors, including office, retail, multifamily, hospitality and logistics, operating more than 800 properties and over 390 million sq. ft. of real estate in gateway markets on behalf of Brookfield Asset Management, one of the largest asset managers in the world. With a focus on sustainability, a commitment to excellence and the drive for relentless innovation in the planning, development and management of buildings and their surroundings, Brookfield Properties is reimagining real estate from the ground up.

For more information about our approach to operating and developing best-in-class real estate, please visit www.brookfieldproperties.com

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SOURCE Brookfield Properties