Healthcare Realty Trust Inc. (HR) 2024年CSR报告「NYSE」.pdf

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1、2|DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARELetter from the CEOIm pleased to present Healthcare Realtys 2024 Corporate Responsibility Report our sixth since the launch of our ESG initiatives.One of the many advantages of Healthcare Realtys merger with HTA in 2022 was the opportunity to expa

2、nd the impact of our ESG objectives across a larger portfolio.During 2023,our first full calendar year following the merger,we made robust progress toward embedding our ESG practices portfolio-wide and improving our scores on key industry benchmarks.We are particularly proud of the work weve done to

3、 integrate Healthcare Realtys utility data collection discipline across the legacy HTA properties and to improve our data integrity.One of our goals for 2023 was to increase whole-building utility data to 71%of the combined portfolio.We achieved that goal and are on track to reach our next goal of 9

4、0%by year-end 2024.Independent third-party assessments confirm that our ESG program is headed in the right direction in 2023,we earned GRESBs 3-star rating,with a score of 75,ranking second in a group of ten peer companies and receiving an“A”rating on GRESBs Public Disclosure scorecard.This year,we

5、established new,ambitious ESG goals.These include a 15%reduction in energy usage,a 30%reduction in greenhouse gas emissions,and a 20%reduction in water use,all by 2032.Another goal,in the short term,is to obtain green building certifications for at least 11%of the portfolio by 2025.Our ESG program i

6、s a key component of our strong corporate culture,built around Healthcare Realtys purpose,vision,and values.Employees are the heart of everything we do,and we have established new goals for employee benefits,compensation,safety,and training.In 2023,we launched new employee engagement initiatives to

7、unify our expanded employee base.One of these initiatives is a quarterly employee recognition program called the Values in Action Awards,which celebrates team members whose work is particularly emblematic of Healthcare Realtys values respect,camaraderie,entrepreneurship,and excellence.By setting hig

8、h corporate responsibility standards and striving to improve our performance,we ensure that our actions benefit not only our shareholders and our physician tenants but also our employees who drive our success and contribute to the communities where we are proud to operate.Sincerely,President and Chi

9、ef Executive OfficerContentsWho We Are 4 Company Overview 5 ESG Management 6 ESG Strategy 7 Stakeholder 8 Engagement Materiality 9 Assessment ESG Goals 11Disclosures 48 Forward-looking 49 Statement and Other Disclaimers SASB Standards 50Environmental 14 Environmental 15 Performance Highlights Indust

10、ry 16 Partnerships Reduction 17 Strategies Energy 18 Management Renewable 19 Energy Water Efficiency 20 Waste Diversion 21 Green Building 22 Certifications Sustainable 23 Buildings Climate Risk 25 and Resilience Physical 27 Climate RiskSocial 28 Employee 29 Engagement Employee 30 Retention Employee

11、31 Benefits Employee 32 Training and Development Employee 33 Diversity and Inclusion Employee 34 Health and Safety Employee 35 Wellness Tenant 36 Satisfaction Tenant 37 Engagement Community 38 Engagement Community 39 ServiceGovernance 40 ESG Oversight 41 Board of Directors 42 Corporate 44 Governance

12、 Risk Management 45 Cybersecurity 46 Policies,47 Principles,and ProceduresWho We AreHealthcare Realty(NYSE:HR)is a real estate investment trust(REIT)that owns and operates medical outpatient buildings(MOBs)primarily located around market-leading hospital campuses.The Company selectively grows its po

13、rtfolio through property acquisition and development.As the first and largest REIT to specialize in medical outpatient buildings,Healthcare Realtys portfolio includes nearly 700 properties totaling over 40 million square feet concentrated primarily in 15 growth markets.45|DISCLOSURESGOVERNANCE SOCIA

14、LENVIRONMENTALWHO WE ARECompany Overview688 Properties40.3M Square Feet93%Medical Outpatient Buildings(MOBs)93%Managed Internally69 Markets in 35 States72%On/Adjacent to Hospital Campuses60%of NOI in Top 15 Markets56 relationships with Top 100 Health Systems(2)$11.9B Enterprise ValueBBB/Baa2 S&P/Moo

15、dysSince its formation over 30 years ago,Healthcare Realty has distinguished itself as the first REIT to specialize in medical outpatient buildings(MOBs),creating a superior real estate portfolio aligned with market-leading health systems.The majority of Healthcare Realtys properties are on the camp

16、us of,or adjacent to,these health systems,where they house essential outpatient services such as surgery,cancer treatment,imaging,and key physician groups who are crucial to the hospitals long-term mission.Our properties are well-diversified by geography,tenant size,and physician specialty.(1)Includ

17、ing properties in the Companys unconsolidated joint ventures;(2)Ranked by revenue based on Modern Healthcares Healthcare Systems Financials Database.COMPANY SNAPSHOT AS OF 12/31/2023(1)6|DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE20232022HRHRHTA42807529%58wtd avgIn July 2022,Healthcare Realt

18、y completed a transformational merger with Healthcare Trust of America.The merger more than doubled our portfolio of medical outpatient buildings and expanded our footprint in top growth markets around the country.It also provided opportunities to advance our environmental,social and governance obje

19、ctives across a broader portfolio.Prior to the merger,Healthcare Realty had an enviable track record of data collection and data integrity,as evidenced by our past GRESB scores and portfolio coverage.Healthcare Realtys 2022 GRESB score was 80 with 89%utility coverage while HTAs was 42 with 12%utilit

20、y coverage.In 2023,we achieved a GRESB score of 75 with 69%utility coverage for the combined portfolio.We have established ambitious ESG goals in pursuit of greater efficiency and long term value.Our continued success with utility data coverage and performance is supported by our progress on achieve

21、d stated goals and GRESB scores.(1)Percentage of portfolio square footage as reported to GRESB reflects all properties,including assets held for sale,redevelopments,unconsolidated joint ventures,and dispositions January 1,2022 through December 31,2022;(2)Healthcare Realty and HTA reported 2022 GRESB

22、 results separatelyGRESB DATA COVERAGE(1)2022HR89%HTA12%40%CombinedHR91%HTA52%69%Combined2023GRESB SCORES(2)ESG Management7|DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE AREESG StrategyHealthcare Realty has a dedicated ESG team engaged with employees around the country in support of our environmen

23、tal,social,and governance goals.Our ESG efforts are governed by the Companys Sustainability Principles and Policies.Since 2019,Healthcare Realty has embedded ESG practices in our culture and has incorporated ESG principles in our investments and operations activities.Our commitment to corporate resp

24、onsibility is integral in everything we do as financial stewards of shareholder capital,in the services provided to our tenants,and as contributing citizens in the communities where we live and work.IntegrationEmbed and integrate leading ESG practices in daily operations.Impact Create long-term valu

25、e for stakeholders,including our tenants,investors,employees,and the communities in which we live,work,and invest.IntegrityConduct business with integrity,respect,and excellence.SUSTAINABILITY MANAGEMENT We have implemented a Sustainability Management System(SMS)to reduce risk,improve performance,an

26、d establish meaningful benchmarks guided by industry frameworks.Our SMS is aligned with the Internal Organization for Standardization(“ISO”)14001 and 5001 standards plus ENERGY STAR Guidelines for Energy Management.ENERGY STAR CERTIFIED Baylor Medical Pavilion DALLAS8|DISCLOSURESGOVERNANCE SOCIALENV

27、IRONMENTALWHO WE AREStakeholder EngagementWe regularly engage with stakeholders and solicit feedback from employees,tenants,investors and our Board of Directors.This dialogue influences our business decisions and strategy,particularly around our ESG efforts.Tenants Kingsley tenant satisfaction surve

28、ys Building-specific online tenant centers Tenant appreciation events and holiday celebrationsInvestors One-on-one meetings Participation in industry conferences Investor tours Earnings calls,SEC filings,quarterly supplemental reports,and investor presentations that disclose financial performance in

29、formationCommunities Company-organized volunteer opportunities Paid volunteer hours Employee charitable donation matching program Company donations to non-profit organizationsEmployees HRWork Healthcare Realtys intranet LinkedIn Employee surveys Engagement activities including book clubs,virtual exe

30、rcise classes,lunch-and-learn sessions,and Company-wide wellness challenges9|DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE AREIn 2023,we performed a materiality assessment,utilizing a formal survey to collect data from 450 internal and external stakeholders,including employees,the Board of Directo

31、rs,tenants,and vendors.Our ESG priorities and strategic planning reflect their feedback.Materiality AssessmentHigh PriorityHigh PriorityExternal PrioritiesInternal PrioritiesEnvironmentalSocialGovernanceEnergyEfciencyGreenhouseGas EmissionsWater ConservationGreen Building Designand CertificationTena

32、nt Engagementand SatisfactionTalent Attractionand RetentionHealth Safetyand WellnessEmployee Trainingand DevelopmentCorporate GovernanceData CybersecurityRisk ManagementBoard Structure and Diversity Environmental ComplianceEmployeeEngagement andSatisfactionHuman RightsDiversity and InclusionBoard Ov

33、ersight ESG ClimateExecutive Compensation WasteManagementRecyclingClimate Risk and ResilienceResponsible Supply Chain ProcurementCommunity Impact10|DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE AREESG Disclosure and FrameworksHealthcare Realty discloses comparable ESG data through globally recogni

34、zed frameworks and standards aimed at transparency and consistency with industry peers.We continued our practice of engaging a third party to review energy,water,greenhouse gas emissions,and waste performance data.In addition,all 2023 environmental performance data was vetted through third-party ass

35、urance,a heightened level of review over prior years.GRESB Healthcare Realty earned GRESBs 3-star rating in 2023,earning a score of 75.We earned a score of 85 on our portfolio of properties under development,up from 81 in 2022.Ranking second out of a peer group of 10 real estate companies,we receive

36、d a rating of“A”on GRESBs Public Disclosure score,showcasing our transparency on sustainability practices.Sustainable Development Goals(SDGs)Our ESG key performance indicators align with the United Nations SDGs.Our goals and progress can be found on pages 11-13.Task Force on Climate-Related Financia

37、l Disclosures(TCFD)Healthcare Realtys climate-related disclosures are in alignment with TCFD recommendations.Our physical climate disclosure includes multiple scenario analysis.These disclosures can be found on pages 25-27.Sustainability Accounting Standards Board(SASB)Information in this report ali

38、gns with the SASB framework for real estate.Our SASB disclosure table can be found on pages 50-51.11|DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE AREEnvironmental GoalsGoalStatusPerformance15%reduction in energy use by 2032 over a 2022 baselineNew!2032 TargetIn 2023,our energy consumption,GHG emi

39、ssions,and water consumption decreased compared to 2022 performance.As we continue implementing Healthcare Realty standards into legacy HTA properties,we anticipate our environmental performance reductions to steadily improve.30%reduction in Scope 1 and 2 emissions by 2032 over a 2022 baseline20%red

40、uction in water use by 2032 over a 2022 baseline Increase utility coverage to 90%by year-end 2024New!2024 TargetOn TrackIn 2023,we achieved our 2022 utility data target,increasing whole-building portfolio coverage to 71%.Obtain green building certifications,including Leadership in Energy and Environ

41、mental Design(LEED),ENERGY STAR,Institute of Real Estate Management Certified Sustainable Property(IREM CSP),or other similarly recognized third-party certification)for at least 11%of the portfolio by 20252025 TargetOn TrackWe had 57 green building certifications totaling 5.5 million square feet rep

42、resenting 8.3%of properties at year-end 2023:10 LEED certifications,42 ENERGY STAR certifications,5 IREM CSPs.12|DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARESocial GoalsGoalStatusPerformanceEvaluate employee benefits package annually to ensure it is competitive and meets the needs of employee

43、sOngoing TargetAchievedHealthcare Realtys benefits are reviewed annually by an employee-led committee and are benchmarked against companies of similar size.Offer at least$19 per hour wages to all full-time employeesOngoing TargetAchievedAll full-time employees were paid$19 per hour or more in 2023.C

44、onduct annual employee engagement surveyNew!Target100%participation in workplace safety training for the engineering departmentNew!TargetIn 2023,engineering personnel participated in over 200 hours of training.Conduct annual training on environmental,social,and governance topicsNew!Target13|DISCLOSU

45、RESGOVERNANCE SOCIALENVIRONMENTALWHO WE AREGovernance GoalsGoalStatusPerformanceMaintain board diversity by having women and/or racially diverse representation for at least a third of the Board of DirectorsOngoing TargetAchievedWomen and racially diverse representation on our board of directors incr

46、eased from 38%at year-end 2023 to 42%in June 2024.100%employee participation in annual review of Code of Business ConductNew!TargetAchievedAll employees are required to read the Code of Business Conduct and Personnel Manual annually.100%company participation in cybersecurity trainingNew!TargetAchiev

47、edAll employees are required to participate in semiannual cybersecurity training.More information on cybersecurity can be found on page 46.Maintain Institutional Shareholder Services(ISS)Prime statusNew!TargetAchievedWe monitor investor and shareholder reports to ensure that our disclosures are curr

48、ent and accurate.14EnvironmentalHealthcare Realty is committed to reducing our environmental impact by prioritizing operational efficiencies,strategic capital planning,and reducing utility usage.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE15|Environmental Performance HighlightsIn 2022,Healthc

49、are Realty merged with HTA substantially increasing our portfolio of medical outpatient buildings.In 2023,our teams worked to implement our data quality standards and data collection strategy across the portfolio,improving our data coverage to 71%.The following table highlights our environmental per

50、formance towards our newly established,ambitious energy,GHG emissions,and water goals.This data includes properties owned by Healthcare Realty over which the Company holds operational control and where whole-building utility data was available for 2022 and 2023.Environmental Performance energy and G

51、HG data includes 458 properties totaling 29.5M SF and water data includes 526 properties totaling 31.5M SF.YearMTCO2e Scope 1MTCO2e Scope 2MTCO2e TotalCarbon Intensity(MTCO2e/1K SF)Change2032 Goals2023 21,152 227,672 248,824 8.5 0.1%30%2022 baseline 21,401 227,558 248,959 8.5YearKBTUEnergy Intensity

52、(KBTU/SF)Change2032 Goals2023 2,541,732,047 86.9 0.4%15%2022 baseline 2,550,879,958 87.2YearUS GallonWater Intensity (US Gal/SF)Change2032 Goals2023 760,562,337 24.1 0.7%20%2022 baseline 766,051,297 24.3GHG Emissions(1)Energy(1)Water(1)DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE16|Industry P

53、artnershipsU.S.Department of Energy Better Buildings AllianceHealthcare Realty is part of the U.S.Department of Energy(DOE)Better Buildings Alliance and Water Savings Network,partnering with DOE technical experts and industry peers to accelerate building efficiency.MeasurablHealthcare Realty has par

54、tnered with Measurabl since 2020,utilizing its sustainability platform to assist in collecting,reporting,and benchmarking of environmental data,efficiency projects,and building certifications.ENERGY STARHealthcare Realty has been an ENERGY STAR partner since 2004 and consistently tracked utility inf

55、ormation each year.In 2023,86%of the portfolio was benchmarked in ENERGY STAR Portfolio Manager.Nareit Real Estate Sustainability CouncilWe joined Nareits Real Estate Sustainability Council(RESC)in 2021.This group includes ESG professionals from peer companies who advise Nareit about industry trends

56、.ENGIEIn 2022,Healthcare Realty engaged ENGIE to provide utility bill management services.ENGIE automates utility consumption data for improved accuracy and timeliness of environmental data collection.Tradition EnergyWe have utilized Tradition Energy since 2011 to assist with energy procurement in d

57、eregulated markets and assessing energy rates in changing utility markets.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE17|$21.8M InvestedReduction StrategiesHealthcare Realty strategically deploys capital investments to reduce utility usage and improve building efficiency.In 2023,Healthcare Re

58、alty invested$21.8 million in 437 efficiency projects up from$20.8 million in 2022.Lighting$689KLED retrofits,occupancy sensors,lighting controlsWindows and Doors$1.1MWindow and door replacements,solar film installationPlumbing$119KLow flow fixtures,leak detection systemsRoofing$4.4MReflective roofi

59、ng,increased insulationLandscaping$612KNative and drought-resistant plants,drip and smart irrigation systemsHVAC and Energy Management$14.9MRefrigerant upgrades,direct digital controls,real-time electricity monitoring,variable frequency drives,cooling tower upgrades/replacements,CO2 sensorsDISCLOSUR

60、ESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE18|Energy ManagementBuilding Automation Implementing and updating building automation and energy management systems is critical to controlling HVAC,lighting,and energy-consuming systems.We pursue strategies that allow our teams control of energy consumption

61、to balance resource use with tenant and building needs.Electricity MonitoringReal-time electricity monitoring allows us to monitor and adjust building equipment in real-time,optimizing electricity utilization and reducing grid demand.Adjusting utility delivery to meet peak and off-peak hours drives

62、meaningful cost savings and reduces consumption.Lighting EnhancementsPrioritizing lighting retrofits and automated lighting controls has a direct impact on energy efficiency.Lighting enhancements reduce a buildings energy load,improve occupancy comfort,increase tenant and patient safety,and provide

63、better-quality lighting.Roof ReplacementsIncreasing insulation when replacing roofing systems and strategically implementing reflective roofing reduces heating and cooling needs.Cooling Tower Replacement NASHVILLELED Lighting RALEIGHHVAC EfficiencyReplacing heating,ventilation,and air conditioning s

64、ystems at the end of their useful life provides opportunities to install high-efficiency equipment.Before replacing equipment,we routinely upgrade compressors,variable frequency drives,heat pumps,coils,and heat exchangers with energy-efficient replacements to improve the efficiency of equipment and

65、prolong its useful life.These practices allow us to derive energy efficiency from aging equipment before replacement.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE19|Renewable EnergyOn-site Solar EnergyHealthcare Realty pursues on-site solar energy projects where utility savings are attractive.

66、On-site solar panels in San Diego supplement nearly 30%of total building electricity usage.Five covered-parking solar panel projects are planned in California in 2024.Energy generated by one project will be utilized through the Los Angeles Department of Water and Powerss Feed-In-Tariff program.Energ

67、y from the other four projects will be utilized on-site through net energy metering power purchasing agreements.Our tenants will benefit from reduced utility expenses at the properties,and patients will benefit from shaded parking areas.Energy ProcurementAs utility costs continue to increase,energy

68、procurement plays a critical role in managing electricity and natural gas prices in deregulated markets.We partner with Tradition Energy,an energy management consultant,to ensure we benefit from competitive energy prices.In 2024,19 Texas properties totaling two million square feet-about 22%of our Te

69、xas portfolio-will be powered by Green-e renewable energy sources.Rendering of covered parking solar panels LOS ANGELESRooftop solar at Pomerado Professional Plaza SAN DIEGODISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE20|Water EfficiencyPhysician practices and high-intensity outpatient service

70、s like dialysis,oncology infusion,and outpatient surgery centers are heavy water users.Healthcare Realty is committed to reducing building water consumption by 20%over a 2032 baseline.At year-end 2023,83%of the portfolio was benchmarked for water usage in ENERGY STAR Portfolio Manager.Water reductio

71、n and savings efforts include:Replacing existing fixtures with low-flow and touchless fixtures in common areas and tenant spaces Installing 0.5 gallon aerators in tenant and common area sinks Utilizing leak detection systems Implementing regular inspections and preventive maintenance of water-use sy

72、stems including irrigation systems,toilets,chilled-water HVAC systems,and cooling towers Installing high-efficiency drip irrigation systems across the portfolio Replacing water-intensive landscaping with drought-tolerant and native vegetationWATER CONSERVATION IN AUSTINWe installed native and drough

73、t-tolerant plants to reduce water consumption and lower landscaping expenses.The new plants are suited to the regions extreme weather.This project improved the propertys curb appeal and promoted biodiversity.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE21|Waste DiversionWe monitor and benchmar

74、k waste produced at our properties.In 2023,we modified our waste data collection strategy to include waste billing automation.By year-end 2023,60%of the portfolio was benchmarked for waste in ENERGY STAR Portfolio Manager.Efforts to reduce building waste:Recycling containers with supporting signage

75、throughout our properties Encouraging the purchase of consumable materials with recycled content Installing water bottle filling stations to discourage single-use plastics Right-sizing waste streams for efficient and cost-effective management Utilizing e-waste services to discard electronics Recycli

76、ng light bulbs and batteries Reusing or donating furniture and construction materials from renovation projectsRECYCLING FOR A CAUSEWe encourage our teams to donate surplus building materials and furniture to not-for-profit organizations to divert waste from landfills.In 2023,our Detroit team donated

77、 flooring and ceiling tiles to Habitat for Humanity,while our Scottsdale team donated gym equipment to the local Air Force base.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE22|Green Building CertificationsHealthcare Realty continues to increase green buildings in our portfolio,targeting 11%por

78、tfolio coverage by 2025.In 2023,we obtained 57 green building certifications bringing our portfolio coverage to 8.3%.Obtaining these certifications ensures sustainability best practices are embedded at our properties.9.8%of total portfolio SF6.2%of total portfolio SF3.5%of total portfolio SF6 buildi

79、ngs 758K SF4 buildings 538K SF5 buildings 303K SF9 buildings 694K SF14 buildings 1.1M SF5 buildings 303K SF20202021202220238.3%of total portfolio SF10 buildings 1.1M11 buildings 1.2M SF42 buildings 4.1M SF5 buildings 303K SF2023Total57 buildings 5.5M SFTotal30 buildings 2.6M SFTotal20 buildings 1.8M

80、 SFTotal4 buildings 538K SFDISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE23|Sustainable BuildingsGreen FinancingThe Companys$3 billion revolving credit and term loan agreements include a sustainability-linked interest rate discount tied to increasing the number of properties with green building

81、 certifications.Our$150 million term loan expiring in June 2026 has an interest rate discount for achieving green building certifications(LEED,ENERGY STAR,IREM CSP,and other similarly recognized certifications).In 2023,we exceeded the minimum threshold of 7.8%portfolio coverage outlined in our credi

82、t agreements.Building MaterialsMaterials in tenant improvement and capital projects incorporate sustainable components.We routinely include LED lighting,low-flow plumbing fixtures,and efficient HVAC equipment.Low-emitting VOC materials we avoid materials with known toxic ingredients such as asbestos

83、,formaldehyde,volatile organic compounds,ash,cadmium,mercury,lead,arsenic,and phthalates Sustainable construction materials certified by Forest Stewardship Council(FSC),Rainforest Alliance,Cradle to Cradle,Floorscore,Green Seal,Red List Free,and Greengard Locally manufactured materials that contain

84、pre-consumer and post-consumer recycled content Pre-selected finishes that meet our minimum sustainability standardsHEALTHY BUILDINGSWe utilize the American Society of Heating,Refrigeration,and Air-Conditioning Engineers(ASHRAE)standards throughout the portfolio to maintain high-quality indoor air e

85、nvironments.We also incorporate sustainable amenities like bike facilities,electric vehicle charging stations,and preferred parking for carpools and fuel-efficient vehicles.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE24|Sustainable BuildingsInvestments in Green BuildingsWe design and construc

86、t medical outpatient properties that reflect our commitment to sustainable building practices.We have a long-standing goal to achieve LEED or other green building certifications for 80%of our development projects.In 2023,we completed a 151,000 square foot medical outpatient building on the Ascension

87、 St.Thomas Midtown campus in Nashville that is finalizing LEED certification.ACQUISITION DUE DILIGENCEWe perform detailed due diligence before acquiring a building or portfolio,including utility data collection,physical climate risk assessments,and assessing compliance requirements.Building acquisit

88、ions provide an opportunity to underwrite ESG-focused capital improvements at the beginning of our ownership period.2100 Church Street NASHVILLEMills Park ORLANDODISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE25|Climate Risk and ResilienceHealthcare Realty evaluates physical and transitional ris

89、ks on an annual basis.We have aligned our disclosures with the Task Force on Climate-related Financial Disclosures(TCFD).GovernanceHealthcare Realtys Board of Directors provides oversight for our ESG strategy,policies,and performance.Each quarter,the Executive Vice President of Operations provides E

90、SG updates to the entire board.In 2022,the Nominating and Corporate Governance Committee assumed responsibility for ESG supervision.The Audit Committee regularly conducts reviews of key financial risks,including exposure to physical and climate transition risks.The senior management team is actively

91、 engaged in assessing and managing risks,including natural disasters,regulatory and market shifts,and environmental compliance.StrategyClimate-related risks and opportunities are considered throughout the lifecycle of our assets.We perform detailed building evaluations during underwriting and due di

92、ligence for building acquisitions and developments.Industry best practices for property operations,including emergency response plans,are incorporated into property inspections,budgeting,insurance,and capital planning processes.We utilize physical climate risk assessments to identify assets in areas

93、 susceptible to weather events and environmental stressors.Climate-related Risk ManagementOur sustainability,insurance,operations,development,and acquisitions teams assess and manage climate-related risks.We carry comprehensive property insurance to mitigate our exposure to flood,wind,earthquakes,an

94、d named storms.To manage potential transition risks stemming from the cost of transitioning to a low-carbon economy,our Corporate Responsibility team actively monitors environmental regulations and public policy.We also track state and local benchmarking and building performance standards.Metrics an

95、d TargetsHealthcare Realty remains committed to conserving natural resources and minimizing our environmental impact.In 2023,we established a new baseline for the merger-combined portfolio and set ambitious long-term targets for energy,water,and GHG Scope 1 and 2 emissions.Performance against these

96、targets is found on page 15.The Companys revolving credit and term loan agreements include a sustainability-linked interest rate discount for increasing green building certifications over a 2020 baseline.Details related to this agreement can be found on page 23.DISCLOSURESGOVERNANCE SOCIALENVIRONMEN

97、TALWHO WE ARE26|TCFD Climate Risks and OpportunitiesRiskOpportunityEconomicInitial operating and capital costs to improve efficiencyCost savings from reduced utility consumption and renewable energyCosts to adopt emissions technologiesTenant and investor demand for green-certified buildingsChange in

98、 asset valuationAccess to green financing including sustainability-linked term loans and green bonds which may reduce borrowing costsPropertyProperty damage and business interruptionSavings on insurance premiums from improved risk mitigation and emergency response plansRegulatoryHeightened federal,s

99、tate and local environmental reporting obligationsAttracting investors,tenants and employees through expanded ESG initiativesReputationalPerception about ESG policies and activitiesStakeholder communication about benchmarks and achievementsTAMPACOLORADO SPRINGSDISCLOSURESGOVERNANCE SOCIALENVIRONMENT

100、ALWHO WE ARE27|Physical Climate RiskIn 2023,we utilized S&P Trucost and Climanomics in partnership with our property insurance to identify and assess weather and climate-related risk exposures,including risks from acute hazards and chronic stressors.S&P Climanomics measures multiple systemic climate

101、 scenarios and short-,medium-and long-term time horizons from 0-50 years.(1)Mitigation StrategiesHealthcare Realty mitigates physical risk at the portfolio level with comprehensive insurance coverage,strategic capital planning,and sound operation practices.We work with our insurance provider to expa

102、nd mitigation measures for wildfire,flood,wind,and named stores.Engineering teams routinely perform preventive maintenance and monitor building equipment.Our local management teams have implemented emergency preparation plans and work with local partners to minimize the impact of business interrupti

103、ons during inclement weather.Climate RiskPortfolio Risk(2)Fluvial Basin FloodingLow to No Risk:98%Medium Risk:0%Higher Risk:2%Coastal FloodingLow to No Risk:100%Medium Risk:0%Higher Risk:0%Tropical CycloneLow to No Risk:92%Medium Risk:5%Higher Risk:3%Extreme ColdLow to No Risk:38%Medium Risk:62%High

104、er Risk:0%WildfireLow to No Risk:87%Medium Risk:9%Higher Risk:4%Water StressLow to No Risk:59%Medium Risk:11%Higher Risk:30%Extreme HeatLow to No Risk:93%Medium Risk:5%Higher Risk:2%(1)Healthcare Realty monitors climate scenarios for representative concentration pathways(RCPs)and shared socioeconomi

105、c pathways(SSPs)including RCP2.6,RCP4.5,RCP7.0,RCP8.5,SSP1,SSP2,SSP3,SSP5.;(2)Portfolio risk includes 567 properties representing 82%of the combined portfolio.28SocialSupporting and engaging employees,tenants,health system partners,and communities is an important part of our culture.DISCLOSURESGOVER

106、NANCE SOCIALENVIRONMENTALWHO WE ARE29|Employee EngagementOur employees are the heart of Healthcare Realtys success,representing the best of our values to one another,our tenants and their patients,vendors,and partners.By supporting,recognizing,and investing in our team,our employees thrive professio

107、nally and personally.Fostering a sense of connectedness is a priority.Our company intranet,HRWork,is an important connector for engaging colleagues who work in 69 markets in 35 states.HRWork is a central hub for employee resources,company news,and important announcements.We are proud of employee-led

108、 recognition programs,including the Leasing Spotlight and Engineering Impact Awards.In 2024,we launched the Values in Action Award,which honors employees who exemplify our company values in their work.OUR VALUESOur values are Respect,Camaraderie,Entrepreneurship,and Excellence.These arent just sloga

109、ns;these principles are the foundation of our culture,guideposts for the work we do,and key components of the companys DNA.They are reflected in our logo three connected lines,based on a centuries-old principle describing the physics of a sail,where three bisecting lines of a triangular sail meet at

110、 the Center of Effort the point where the propelling force of the wind is the strongest.ENTREPRENEURSHIPRESPECTEXCELLENCECAMARADERIEDISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE30|Employee RetentionHealthcare Realty aims to attract,retain,and promote top talent.Just as our employees are commit

111、ted to advancing our mission,we are committed to their success and well-being.We accomplish this by offering competitive compensation and benefits,investing in employee professional development,and promoting an inclusive and exceptional work environment.At year-end 2023,employee tenure for the Compa

112、ny was 4.3 years and 78 employees had tenure for 10 or more years.We are proud of our paid internship program for college students.The program includes rotations through different departments and allows participants to gain valuable working experience.The Company has hired several interns and views

113、the intern program as a valuable way to grow our talent pool.PROMOTIONSWe have promoted more than 130 employees over the past three years.On average,69%of the employees promoted were women or racially diverse.In 2023,we promoted 60 employees,of which 70%were women or racially diverse.Tony Souyavong,

114、Staff Accountant IIRav JaigoPaul,Lead EngineerAllison Iulianello,Assistant Property ManagerDISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE31|Employee BenefitsWe offer a competitive and equitable benefits program for employees and their families.Health and Wellness Health,dental,and vision insura

115、nce on first day of employment Health Savings Account annual funding in January 100%of long-term disability and life insurance premiums paid Claims resolution specialist serving as employee advocate Enhanced coverage for mental health through our Employee Assistance Program(EAP)providing free counse

116、ling and well-being coaching for all employees,regardless of benefit selection Employee wellness programFinancial Wellness Auto-enrollment in 401(k)with Company match on first day of employment Dollar-for-dollar match on 401(k)contributions up to$2,800 annually Flexible spending accounts,dependent c

117、are accounts,and health savings accounts Annual cash incentive(bonus)program Financial education training through the Companys 401(k)providerProfessional Development Tuition reimbursement up to$3,000 annually Reimbursement for professional certifications,including Certified Public Accountant,and pro

118、perty management and leasing designations,including Certified Property Manager(CPM),Real Property Administrator(RPA),and Certified Charter Investment Member(CCIM)Education reimbursement up to$1,500 annually for Building Owner and Manager(BOMA),CCIM,or Institute of Real Estate Management(IREM)courses

119、 Encourage participation in industry eventsFamily and Personal College savings program Work/life balance through flexible,hybrid,and remote work schedules Eight hours of paid time off to complete volunteer activities Charitable donation matching program Minimum of 29 days/232 hours of Paid Time Off

120、and Holidays,increasing with tenureDISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE32|Employee Training and DevelopmentHealthcare Realty is committed to supporting the career development of our team members.We encourage employees to pursue educational opportunities,offering a program that pays fo

121、r the cost of training materials and enrollment fees for professional certification programs,as well as tuition reimbursement toward college and advanced degrees.Break to EducateWe frequently host lunch-and-learn sessions called“Break to Educate.”Department managers teach a skill or lead a discussio

122、n on a job-specific topic.Past sessions have included tenant retention strategies,professional etiquette,safety training,new project management technologies,and improving energy efficiency.Property Management ConferenceWe regularly bring employees together for department-specific team building.In 20

123、23,we held regional conferences to build camaraderie after the merger.The theme for those conferences was“The Power of One.”In addition to fun outings,the group received training,met with executive leaders,and brain-stormed on improving tenant service around the country.Engineering ConferenceOur eng

124、ineering teams meet regularly to discuss challenges and successes in their department.Topics include fire safety strategies,building maintenance standards,reducing utility costs,capital expenditure planning,improving indoor air quality,and managing building automation systems.New!MENTORING PROGRAMIn

125、 2024,The Company will launch a peer mentoring program.Every new hire will have a peer mentor to assist with training and provide regular communication about the onboarding process.A number of employees have expressed interest in serving as mentors.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE

126、33|Employee Diversity and Inclusion(1)Healthcare Realty is committed to a diverse and inclusive culture.We embrace employee differences in race,color,religion,gender,sexual orientation,national origin,age,disability,veteran status,and other characteristics that make our employees unique.We recognize

127、 and appreciate the worth of every individual and support the protection of human rights.Employees(2)New!Manager and AboveNew Hires45%Female55%Male62%White38%RaciallyDiverse39%Female61%Male74%White26%RaciallyDiverse50%Female50%Male51%White49%RaciallyDiverse(1)Employee data as of 12/31/2023;(2)As of

128、12/31/2023,the company employed 210 maintenance engineers,of which 99%are male.Engineers represent 36%of the employee census.13%69GenderRaceAge3%309%60-6921%30-3934%30-3933%40-4922%3034%30-3921%40-4920%50-593%60-69 from 33%in 22 from 42%in 22 from 41%in 22 from 40%in 22DISCLOSURESGOVERNANCE SOCIALEN

129、VIRONMENTALWHO WE ARE34|Employee Health and SafetyWe are committed to providing a safe workplace for all employees.The Company makes efforts to eliminate hazards that cause accidents and injuries.Healthcare Realty follows Occupational Safety and Health Act Administration(OSHA)standards and other app

130、licable legislation.Our Code of Business Conduct and Ethics,which every employee must review and acknowledge each year,includes a section on health and safety.We expect each employee to maintain a safe and healthy workplace and follow safety and health rules and practices,including reporting acciden

131、ts,injuries,and unsafe conditions.Employee training is an important component of maintaining a safe workplace.We provide access to hundreds of safety courses through Vector Solutions on topics including eye and face protection,workshop safety,and alert driving.Some courses are mandatory based on job

132、 responsibilities.We have implemented several initiatives to improve the mental and physical well-being of our employees:Company-wide wellness initiatives including monthly wellness challenges,walking lunch breaks,and weekly chair yoga classes Ergonomic workstations and standing desks An option to w

133、ork remotely or on a hybrid basis in some positions Gym membership discounts Enhanced coverage for mental health through our Employee Assistance Program(EAP),providing free counseling and coaching2023 INJURIES AND LOST DAYS0.05%Lost Day Rate1.7%Injury Rate0Work-related Fatalities200+Hours of Safety

134、TrainingDISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE35|Employee WellnessHealthcare Realty CARES focuses on supporting the mental and physical well-being of our employees.It includes wellness challenges,community service events,employee engagement activities,and wellness support services.A hig

135、hlight of the program is company-wide wellness challenges,which are offered every other month,focused on goals like hydration,sleep,nutrition,mindfulness,and physical activity.Participants track their progress through the MoveSpring app,which also provides educational resources and health and wellne

136、ss tips.Employees can earn prizes for meeting the goals set for each challenge.Wellness ChallengesThe winning team in our mid-2023“Stepping Up for a Good Cause”challenge opted to direct a$5,000 company donation to the American Cancer Society.A local representative of the American Cancer Society visi

137、ted our office to express appreciation for the donation.The Running MOBIn 2023,our Nashville Running MOB team took second place in the Corporate Challenge category of Nashvilles Oktoberfest 5K Run.Annual Blood DriveSince 2021,Healthcare Realty has partnered with the American Red Cross to host a bloo

138、d drive during National Blood Donor Month.We invite employees around the country to give blood at a donation center near them.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE36|Tenant SatisfactionPhysician tenants are the center of our business.Every employee plays a role in attracting and retain

139、ing tenants.The importance of physicians is embedded in our Companys Purpose and Vision statement.Kingsley SurveyHealthcare Realty uses Kingsley Associates,a nationally recognized independent surveyor,to regularly conduct tenant satisfaction surveys.Kingsley Surveys help us better understand the opi

140、nions and needs of our tenants,so we can continue providing high-quality service and identify areas to improve service.A Kingsley Survey includes about 50 questions around five key performance indicators:Overall satisfaction Property management metrics Building maintenance service and team service p

141、erformance Leasing process Lease renewal intentionsThe survey also includes sustainability-related questions,offering an opportunity to learn about tenants ESG priorities.Prior to the merger with HTA,Healthcare Realty historically achieved above-average Kingsley survey scores.In HTAs last pre-merger

142、 survey conducted in early 2022,its scores were meaningfully lower than Healthcare Realty.After the merger,our operations team devoted significant effort into improving services at legacy HTA properties before conducting a post-merger Kingsley survey.As evidenced in the graph above,we made good prog

143、ress improving Kingsley scores at legacy HTA properties while maintaining high scores at legacy Healthcare Realty properties.0verall SatisfactionProperty ManagementLeasing ProcessMaintenanceHTA3.57HTA3.834.014.043.593.833.803.44HR4.064.294.233.84Survey Scale 1-52223222322232223DISCLOSURESGOVERNANCE

144、SOCIALENVIRONMENTALWHO WE ARE37|Tenant EngagementCommunicationWe value regular,direct,and professional communication with our tenants.Our teams use a portfolio-wide tenant communication system to ensure tenants receive timely information about routine building maintenance,large-scale property renova

145、tions,safety and security protocols,weather emergencies,and other building-specific news.ServiceTenants use our service portal to quickly submit service requests,track the progress of work completion,and offer feedback about the service provided.The service portal is a one-stop resource for tenants

146、to access building policies and procedures,emergency information,management office contacts,and to pay rent online.SEATTLEPHILADELPHIADALLASATLANTATenant EventsOur property management teams regularly host tenant appreciation events for our building tenants.We have hosted coffee carts,free lunches,af

147、ternoon snacks,lunchtime cornhole games,and raffles.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE38|Community EngagementGiving back to our local communities where our physician tenants provide care is important to us.Our employees are generous with their volunteer hours,and we are proud to pro

148、vide financial support to organizations that are important to our employees and health system partners.Corporate Charitable GivingHealthcare Realty is proud to support charitable organizations that our physician tenants value and where our employees volunteer their time.This includes:Alive Hospice,F

149、aith Family Medical Center,Black Girls Run,Special Olympics,The Martha OBryan Center,Greenways Nashville,the American Cancer Society,and the American Red Cross.Employee Donation MatchingWe proudly help our employees double the impact of their personal giving.Our charitable donation matching program

150、will match up to$200 per employee,per year,toward their favorite qualified nonprofit organizations.Our employees also receive up to eight paid hours per year when for volunteering.24 hospital systems,22 non-profit and community organizations,and employee-directed matches to 170 charities$350,757Tota

151、l charitable giving over the past three yearsDISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE39|Community ServiceFood Pantry VolunteeringSeveral members of Healthcare Realtys Scottsdale team used their company-supported paid time off to volunteer together at the Banner Olive Branch Senior Center

152、in Sun City.The team unloaded delivery trucks,sorted food donations,stocked shelves,and assembled bags of grocery items for senior citizens.Holiday Toy DriveFor the fifth year in a row,our Nashville team members took part in a toy drive to benefit Youth Encouragement Services(YES).After collecting t

153、oy donations,a team of ten Healthcare Realty volunteers spent a morning at YES,sorting donations and hosting a holiday gift selection event for low-income families,making the holidays a little brighter for over 600 children.Recycling Oyster ShellsOur Charleston team organized a day of volunteering w

154、ith the South Carolina Department of Natural Resources,helping to return oyster shells to local waterways.Planting shells discarded from restaurants back into the inter tidal environment produces new,self-sustaining oyster reefs,which provide an anchoring location for new communities of oysters to g

155、row.Oysters filter water,absorb stormwater runoff,reduce erosion,and reinforce shorelines,helping protect the coast from storm surges and damage from hurricanes.Healthcare Realty employees regularly share their time,working together at our properties and in our communities.We sponsor litter removal

156、programs,holiday toy drives,blood drives,and canned food drives.Our teams have also assisted community efforts to clear away debris in the aftermath of tornadoes and hurricanes.40GovernanceHealthcare Realty is committed to strong corporate governance led by our Board of Directors and senior leadersh

157、ip.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE41|ESG OversightJulie Wilson Executive VP,OperationsBaker Thomas Director,Corporate ResponsibilityHannah Aldrich Sustainability AnalystESG-RELATED COMPENSATION Healthcare Realtys Executive Incentive Plan for named executive officers,which include

158、s the Chief Executive Officer and four Executive Vice Presidents,includes a performance incentive based upon annual ESG objectives.ESG goals and initiatives for 2023 included:(1)Monitoring,benchmarking,and reducing environmental resource use,including energy,water,solid waste,and greenhouse gas emis

159、sions Expansion and progress on social initiatives,including culture,employee engagement,turnover management,health and wellness,minority representation,tenant satisfaction,and charitable giving Enhancement and promotion of stakeholder engagement around ESG effortsBoard of DirectorsOur Board of Dire

160、ctors believes integrating leading environmental,social,and governance practices into our culture,strategy,and operations is fundamental to the Companys long-term growth.The Nominating and Corporate Governance Committee provides direct oversight of ESG initiatives,and the board receives quarterly up

161、dates on ESG matters.Corporate Responsibility TeamHealthcare Realtys ESG efforts are managed by our Executive Vice President,Operations,overseen by our Director of Corporate Responsibility,and supported by our Sustainability Analyst.The ESG team works with all departments to monitor progress on our

162、ESG priorities.(1)More information on The Companys executive compensation can be found in the Proxy Statement.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE42|Board of Directors(1)A diverse and independent Board of Directors with different perspectives,backgrounds,and experience contributes to

163、the Companys success.In 2019,we set a goal to have at least one-third of our board members include women and/or people with racially diverse backgrounds by 2022.We achieved this goal in May 2021.OUR BOARD MEMBERS HAVE A BROAD RANGE OF SKILLS AND EXPERIENCE:Executive Leadership Corporate Governance H

164、ealthcare Real Estate Capital Allocation Human Capital Financial Expert Capital Markets Investment Management(1)Board of Director demographics are as of June 25,2024.201620172018201920202021202220232024Average AgeBoard DiversityAverage Tenure22%33%38%13671367116496376165876166166142%Women/Racially D

165、iverseDISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE43|Board of Directors(1)John V.Abbott Retired CEO,Aviation Asset Management Group,General ElectricAjay Gupta CEO,Physical Rehabilitation NetworkChristann M.Vasquez Retired Healthcare Executive,Ascension TexasTodd J.Meredith President and CEO,H

166、ealthcare RealtyConstance B.Moore Retired President and CEO,BRE PropertiesNancy H.Agee President and CEO,Carilion ClinicJames J.Kilroy President and Portfolio Manager,Willis Investment CounselJay P.Leupp Managing Partner and Senior Portfolio Manager,Terra Firma Asset ManagementJohn Knox Singleton Ch

167、airman of the Board,Retired CEO,Inova Health SystemVicki U.Booth President and Board Chair,Ueberroth Family FoundationPeter F.Lyle Executive VP,Medical Management AssociatesThomas N.Bohjalian Retired Executive VP,Senior Portfolio Manager and Head of US Real Estate and Trading,Cohen&SteersAUDITAjay G

168、upta*Nancy H.Agee Jay P.Leupp(1)As of June 25,2024COMMITTEESCOMPENSATION AND HUMAN CAPITAL John Knox Singleton*John V.Abbott Peter F.Lyle Constance B.MooreNOMINATING AND CORPORATE GOVERNANCEChristann M.Vasquez*Vicki U.Booth James J.Kilroy DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE44|Corpora

169、te GovernanceHealthcare Realty is committed to implementing shareholder-centric policies and procedures.A full list of those policies is found in our 2024 Proxy statement.Shareholder Rights Annual board elections and director resignation policy if lacking a majority of votes Opted out of MUTA,preven

170、ting the Company from staggering the board without shareholder approval Implemented“proxy access,”allowing eligible stockholders to include their own nominees for director in the Companys proxy materialsCompliance Robust director nominee evaluation process,with a focus on board refreshment and enhan

171、cing diversity(reduced average director tenure from 17 years in 2016 to six years as of May 2024)Director education program encourages all directors to pursue ongoing education Stock ownership guidelines align the interests of the board,executive management and shareholders Anti-hedging policy appli

172、cable to all Company employees and directors No contributions to political campaigns or lobbying activities using Company fundsIndependent Oversight Independent Board Chair Audit,Compensation,and Nominating and Corporate Governance Committees are 100%independent All directors except our CEO are inde

173、pendent of the Company Independent directors meet regularly in executive sessionCompensation Annual“say on pay”vote by shareholders on the compensation of named executive officers Executive officer incentive compensation includes ESG performance component Compensation clawback policy applies to all

174、current and former executive officersDISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE45|Risk ManagementThe Board of Directors and senior leadership are actively engaged in assessing and managing entity-level risks.They perform ongoing reviews of significant changes in the Companys risk profile,in

175、cluding emerging risks,and evaluating the impact of these changes on the Companys strategy,objectives,brand,reputation,and long-term sustainability.The board monitors entity-level policies,procedures,monitoring mechanisms,and communication mechanisms to ensure that major financial risks are effectiv

176、ely managed.The following table summarizes board committee responsibilities.A complete list is found in our 2024 Proxy statement.Nominating and Corporate Governance CommitteeMajor risk management responsibility:Ethical behavior Provide oversight of the Companys sustainability programs,including envi

177、ronmental,social,and governance initiatives Develop and implement policies and practices related to corporate governance Evaluate the independence and performance of the board Develop criteria for the selection of members of the boardCompensation and Human Capital CommitteeMajor risk management resp

178、onsibilities:Talent management,compensation,asset management Reviews corporate performance relevant to the compensation of the Companys executive officers and key employees Provides oversight on behalf of the full board of the Companys human capital development and talent management Administers Comp

179、anys incentive stock plans Reviews the development and succession plans of the Named Executive OfficersAudit CommitteeMajor risk management responsibilities:Market,compliance,asset management,fraud,cybersecurity Reviews the adequacy and effectiveness of the Companys internal control over financial r

180、eporting with management,internal audit and compliance,and independent auditors Reviews and discusses with management the Companys major financial risk exposures and steps taken by management to monitor and mitigate such exposure Assists the board in its risk management function regarding cybersecur

181、ity oversightDISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE46|CybersecurityHealthcare Realty takes a vigorous approach to our cybersecurity program.Our information security standards are audited externally and align with the National Institute of Standards and Technology(NIST)and MITRE ATT&CK f

182、rameworks.We have a documented Incident Response and Vulnerability Remediation plan,and a cybersecurity risk insurance policy.We conduct annual internal and external vulnerability analysis through third-party penetration testing.All employees are required to complete cybersecurity awareness training

183、 two times per year.In addition,the Companys Technology Services team administers random phishing exercises to ensure a high level of vigilance.The Board of Directors receives quarterly updates on information security matters,and our Chief Technology Officer meets with the Audit Committee at least o

184、nce per year.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE47|Policies,Principles,and ProceduresOur commitment to transparency and strong corporate governance is guided and governed by our principles and policies.Important topicsincluding human rights,diversity and inclusion,and confidential re

185、porting of violationsare embedded in these policies.Corporate governance documents are publicly available on our website.Our proxy report includes additional information on corporate governance,corporate conduct,business ethics,and compensation.Code of Business Conduct and EthicsThe code outlines pr

186、inciples to guide our employees,officers,and directors,addressing a range of business practices and procedures.This includes compliance with laws,rules,and regulations;conflicts of interest;discrimination and harassment;health and safety;human rights;political contributions;and reporting violations

187、and compliance procedures.Healthcare Realty requires annual certification from each employee indicating review and acknowledgment of this code.Vendor and Supplier Code of ConductThe code highlights our Companys expectations for our vendors and suppliers to ensure they adhere to the high standards we

188、 have set for ourselves.These include ethical business and employment practices,environmental practices,and preservation of human rights.Sustainability Principles and PoliciesThese principles and policies support the oversight of our ESG program,providing a foundation for our strategy,philosophy,and

189、 operating practices.These include environmental and social policies ranging from building materials and energy management to stakeholder engagement and human rights.48DisclosuresDISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE49|Forward-looking Statement and Other DisclaimersDISCLOSURESStatement

190、s contained in this Corporate Responsibility Report that are not historical facts are“forward-looking statements”within the meaning of the Private Securities Litigation Reform Act of 1995.Forward-looking statements include,among other things,statements regarding our intent,belief or expectation as i

191、dentified by the use of words such as“may,”“will,”“project,”“expect,”“believe,”“intend,”“anticipate,”“seek,”“target,”“forecast,”“plan,”“potential,”“estimate,”“could,”“would,”“should”and other comparable and derivative terms or the negatives thereof.Examples of forward-looking statements include,amon

192、g other things,statements related to our ESG initiatives,programs,goals,strategies,and key performance indicators.You should not place undue reliance on these forward-looking statements.Forward-looking statements reflect our current expectations and views about future events and are subject to risks

193、 and uncertainties that could significantly affect our future financial condition and results of operations,as well as our ability to achieve our ESG goals.While forward-looking statements reflect our good faith belief and assumptions that we believe to be reasonable based upon current information,w

194、e can give no assurance that our expectations,goals or initiatives will be attained.Further,we cannot guarantee the accuracy of any such forward-looking statement contained in this Corporate Responsibility Report,as such forward-looking statements are subject to known and unknown risks and uncertain

195、ties that are difficult to predict.These risks and uncertainties include the risks and uncertainties described from time to time in our filings with the U.S.Securities and Exchange Commission(SEC),including under the heading“Risk Factors”in our Annual Report on Form 10-K for the fiscal year ended De

196、cember 31,2023,and under the heading“Risk Factors”in our Quarterly Reports on Form 10-Q filed thereafter.Except as required by law,we do not undertake,and hereby disclaim,any obligation to update any forward-looking statements,which speak only as of the date on which they are made.The metrics and qu

197、antitative data contained in this Corporate Responsibility Report are not based on generally accepted accounting principles and have not been audited.Such data and metrics are subject to measurement uncertainties resulting from limitations inherent in the nature and the methods used for determining

198、such data.The selection of different but acceptable measurement techniques can result in materially different measurements.The precision of different measurement techniques may also vary.This Corporate Responsibility Report also includes certain information regarding ESG practices that is obtained f

199、rom published sources or third parties.The accuracy and completeness of such information are not guaranteed.Although we believe such information is reliable,such information is subject to assumptions,estimates and other uncertainties,and we have not independently verified this information.We depend

200、on such information to evaluate and implement ESG practices.The inclusion of information and data in this Corporate Responsibility Report is not an indication that such information or data or the subject matter of such information or data is material to Healthcare Realty for purposes of applicable s

201、ecurities laws.The principles used to determine whether to include information or data in this Corporate Responsibility Report do not correspond to the principles of materiality contained in federal securities laws,the concept of materiality used to determine whether disclosures are required to be m

202、ade in filings with the SEC or otherwise disclosed,or principles applicable to the inclusion of information in financial statements.Healthcare Realty makes no representation or warranty regarding the information set forth in this Corporate Responsibility Report.This Corporate Responsibility Report a

203、nd the information contained herein are not incorporated by reference into any filing of Healthcare Realty with the SEC.DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE50|SASB StandardsActivity Metrics as of 12/31/2023Unit of MeasureTotalCodeNumber of assetsNumber688IF-RE-000.ALeasable floor area

204、Square feet(ft2)40,310,681IF-RE-000.BPercentage of indirectly managed assetsPercentage(%)by floor area18%IF-RE-000.COccupancy as of 12/31/2023Percentage(%)87.50%IF-RE-000.DEnergy ManagementEnergy consumption data coverage as a percentage of total area,by property subsectorPercentage(%)by floor area7

205、3%IF-RE-130a.1(1)Total energy consumed by portfolio area with data coverage(2)Percentage of grid electricity(3)Percentage renewable,by property subsectorGigajoules(GJ)(1)Page 15(2)100%(3)0%IF-RE-130a.2Like-for-like percentage change in energy consumption for the portfolio area with data coverage,by

206、property subsectorPercentage(%)-0.40%IF-RE-130a.3Percentage of eligible portfolio that(1)Has an energy rating(2)Is certified to ENERGY STARPercentage(%)by floor area(1)71%(2)10%IF-RE-130a.4Description of how building energy management considerations are integrated into property investment analysis a

207、nd operational strategyN/APage 18IF-RE-130a.5DISCLOSURESGOVERNANCE SOCIALENVIRONMENTALWHO WE ARE51|SASB StandardsWater ManagementUnit of MeasureTotalCodeWater withdrawal data coverage as a percentage of(1)Total floor area(2)Floor area in regions with High or Extremely High Baseline Water StressPerce

208、ntage(%)by floor area(1)78%(2)38%IF-RE-140a.1(1)Total water withdrawn by portfolio area with data coverage(2)Percentage in regions with High or Extremely High Baseline Water StressThousand Cubic Meters(m3)(1)Page 15(2)41%IF-RE-140a.2Like-for-like percentage change in water withdrawn for portfolio ar

209、ea with data coverage,by property subsectorPercentage(%)-0.70%IF-RE-140a.3Description of water management risks and discussion of strategies and practices to mitigate those risksN/APage 20IF-RE-140a.4Management of Tenant Sustainability ImpactsDiscussion of approach to measuring,incentivizing,and imp

210、roving sustainabilityN/APages 14-27IF-RE-410a.3Climate Change AdaptationArea of properties located in 100-year flood zones,by property subsectorSquare feet(ft2)726,359IF-RE-450a.1Description of climate change risk exposure analysis,degree of systematic portfolio exposure,and strategies for mitigating risksN/APages 25-27IF-RE-450a.23310 West End Avenue,Suite 700Nashville,Tennessee 37203P 615.269.8175