1. PARKWAY | Annual Sustainability Report 2014 | 1 PARKWAY 2014
PREPARED BY VERDANI PARTNERS | JUNE 2015 | PARKWAY PROPERTIES
Sustainability at Work
2. www.PKY.com Our sustainability mission is to make a positive
and profitable contribution toward a sustainable future by
integrating green building practices into all aspects of our
business. CEO LETTER Annual Sustainability Report 2014 PARKWAY |
Annual Sustainability Report 2014 | 3 Since Parkways current
management team was assembled in early 2012, responsible corporate
citizenship has been a cornerstone of our mission to be the leading
owner and operator of best-in-class office real estate across the
Sunbelt. As attention towards global climate change has grown in
recent years, we have responded by increasing our focus on the
environmental performance of our portfolio. Our commitment to
sustainability is evident in both our acquisition strategy as well
as our continued efforts to enhance building efficiencies across
our existing assets. 2014 marked another impressive year for the
Parkway portfolio. We completed 3.3 million square feet of total
leasing, which was not only an increase of 36% from the previous
year but was the strongest on record in company history. We also
made further progress transforming the portfolio, driven by $858
million of acquisitions during the year, including the addition of
almost 1.0 million square feet of high-quality, value-add office
space located in the strongest submarket of Tampa, Florida. In
addition to yielding strong operating returns in 2014, Parkway made
great strides improving its environmental footprint and executing
on a number of key sustainability initiatives, including: ENERGY
EFFICIENCY: We achieved a 2.3% reduction in portfolio-wide energy
use from 2013 to 2014 during one of the hottest years on record
across many of our core Sunbelt markets. LEED CERTIFICATION: We
enrolled 25 properties in the U.S. Green Building Councils LEED
Volume Program. ENERGY STAR: We benchmarked 97% of our portfolio in
the U.S. EPAs ENERGY STAR program, up from 75% in 2013. CORPORATE
SUSTAINABILITY: We established 21 sustainability policies that
apply to our entire portfolio. REPORTING INITIATIVES: We submitted
Carbon Disclosure Project, Global Reporting Initiative, and Global
Real Estate Sustainability Benchmark (GRESB) reports, ranking as a
Green Star in the Top Quartile in all GRESB categories and taking
eighth place in the GRESB U.S. Office Peer Group. PARTNERSHIPS: We
committed to reduce our energy consumption by 20% over the next 10
years as part of the U.S. Department of Energys Better Buildings
Challenge. As these results indicate, Parkway remains committed to
being at the forefront of sustainability. Looking ahead, we intend
to maintain our industry-leading market position and continue to
execute our Parkway Green sustainability program. We have pledged
to reduce our energy use and greenhouse gas emissions by 20%,
reduce our water use by 30%, and increase our waste diversion rates
to 75% across our portfolio by 2023. While we are well aware of the
work that lies ahead in achieving these benchmarks, we believe the
reduction of our environmental footprint is essential in our
efforts to maximize the long-term value of the portfolio. James R.
Heistand President and CEO
3. www.PKY.com STAKEHOLDER ENGAGEMENT 38 Stakeholder Engagement
40 Tenant Events 41 Tenant Engagement 42 Community Engagement 44
Education and Outreach 45 Awards and Recognition 48 Partnerships
Programs 50 Reporting and Disclosure 51 The Global Reporting
Initiatives CEO Letter 03 Table of Contents 04 About this Report 05
RESPONSIBLE INVESTMENT 08 Company Profile 09 Financial Performance
10 Case Study: Courvoisier Centre 12 Sustainability Commitment 13
Sustainability Goals 14 LEED Certified Properties 16 Employee
Relations 18 Sustainability Policies 19 Targets and Performance
Goals SUSTAINABLE OPERATIONS Green Operations 22 Risk Management 23
Performance Indicators 24 2014 Performance Data 25 Sustainability
Initiatives 26 Timeline of Accomplishments 30 Case Study: One
Orlando Center 32 TABLE OF CONTENTS PARKWAY | Annual Sustainability
Report 2014 | 5 STRUCTURE This report presents a picture of
Parkways operations, programs, policies, and sustainability goals
summarized in three main categories: Responsible Investment,
Sustainable Operations, and Stakeholder Engagement. SCOPE This
annual report represents our operations across Parkways portfolio
of owned assets for the year ended December 31, 2014. To remain
consistent with data we track and report in the U.S. EPAs ENERGY
STAR Portfolio Manager website and the annual Global Real Estate
Sustainability Benchmark (GRESB) survey, the performance indicators
highlighted in this report are based on building count rather than
property count and gross square footage rather than leasable square
footage. We are currently reporting on the performance indicators
only for assets that were owned by Parkway during the year ended
December 31, 2014. Our stakeholders include our investors, tenants,
clients, employees, industry partnerships, and the communities in
which we operate. REPORTING STANDARDS This report has been compiled
in accordance with the Global Reporting Initiative (GRI) G4
guidelinesa framework which fosters consistency, comparability, and
transparency. Parkway Properties has identified GRI as one of the
most trusted and recognized standards for reporting environmental,
social, and governance performance. It falls directly in line with
our commitment to promoting sustainability long-term. Please refer
to the GRI Index at the back of this report for a complete list of
GRI indicators covered. No representation or warranty is given in
respect of the information contained herein and Parkway Properties,
Inc. (Parkway) is under no obligation to (and expressly disclaims
any obligation to) update any of the information provided in this
report. Market and in- dustry information throughout the report
have been provided by sources other than Park- way that are
believed to be reliable. However, this information has not been
independent- ly verified and no assurances can be given by Parkway
regarding the accuracy or com- pleteness of this information. This
report does not constitute an offer to sell or a solicita- tion of
an offer to buy any securities and may not be used or relied upon
in evaluating the merit of investing in Parkway. ABOUT THIS
REPORT
4. www.PKY.com Responsible INVESTMENT High performance
buildings are more than just beneficial for the environment; they
have a direct and positive impact on our investment returns and
competitiveness in the marketplace. PARKWAY | Annual Sustainability
Report 2014 | 7
5. www.PKY.com ABOUT PARKWAY Parkway Properties, Inc. is a
fully integrated, self-administered and self-managed real estate
investment trust ("REIT") specializing in the acquisition,
ownership, development and management of quality office properties
in high-growth submarkets in the Sunbelt region of the United
States. During the year ended December 31, 2014, Parkway owned or
had an interest in a portfolio of 51 office and parking properties
located in eight states with an aggregate of approximately 17.2
million square feet of leasable space at January 1, 2015. Parkway
also offers fee-based real estate services through wholly owned
subsidiaries, which in total managed and/or leased approximately
6.0 million square feet for third-party property owners at January
1, 2015. CUSTOMER VALUE Our focus is on delivering value for
customers far beyond signing leases. We strive to make our
customers more productive in their office space and in turn help
them become more profitable. Our energy efficient and sustainable
facilities reduce employee downtime and our proactive maintenance
pro- grams allow customers to focus on their business rather than
worry about re- pairs. In addition to worry-free office space, our
customers enjoy broader amenities and conveniences, a staff
committed to service excellence and attractive locations. We
generally perform commercial real estate leasing, management and
acqui- sition services on an in-house basis. As of December 31,
2014, we had 322 employees. Our principal executive office is
located in Orlando, Florida. In addition, we have a regional office
in Jacksonville, Florida. GOVERNANCE STRUCTURE Parkway Properties
is led by a Presi- dent & CEO and a supporting manage- ment
team. The company is governed by a Board of Directors that meets
the independence and other requirements of the New York Stock
Exchange. The Board meets regularly with the Chief Operating
Officer who serves as a liai- son with the sustainability team to
dis- cuss sustainability initiatives. Parkway is also served by
several committees, including an audit, compensation, in- vestment,
and corporate governance & nominating committee. COMPANY
PROFILE Responsible Investment PARKWAY | Annual Sustainability
Report 2014 | 9 51 OWNED PROPERTIES 322 EMPLOYEES 17.2M SF OF
LEASABLE SPACE $6.2M INVESTED IN ENERGY AND WATER SAVINGS PROJECTS
We use the following key financial performance indicators to
measure the success of our sustainability strategy: Decreased
operating expenses. Increased net operating income. Improved
overall asset value. Soft values such as market differentiation and
reputation, increased tenant demand and retention, and reduced
obsolescence. For most of our efficiency upgrades, net present
value (NPV) is used to measure our success instead of relying
solely on simple payback time because NPV takes into account the
time value of money over the life of the project. Driven by the
long-term benefits of reduced operating expenses, we have
undertaken green retrofits and energy efficiency projects at many
of our buildings. We are following a multi-year game plan to
perform technical audits for 13 of our buildings to identify
opportunities for energy and water efficiency improvements, which
we expect to result in lower operating expenses and increased asset
value. As an example, the large efficiency investments we made in
2014 at one of our sustainably managed assets, One Orlando Centre,
resulted in a projected water savings of over 1 million gallons per
year and a projected 33% reduction in average annual energy use. In
addition, numerous smaller energy efficiency investments have been
made throughout the portfolio by local building management teams.
For example, LED lobby lighting retrofit projects were implemented
in late 2014 and early 2015 at Hearst Tower and NASCAR Plazatwo of
our marquee assets in Charlotte, North Carolinawith projected
simple paybacks of 1.5 years and 6 months respectively. Altogether,
in 2014, Parkway invested almost $6.2 Million in energy- and water-
saving projects portfolio-wide. These projects resulted in more
than $425,000 of annual operating expense savings. If these
operating expense savings flow directly to NOI, the savings would
increase our buildings value by more than $6.5 million dollars
using a 6.5% cap rate. INVESTMENT STRATEGY Our investment strategy
is to pursue attractive returns by focusing primarily on owning
high-quality office buildings and portfolios that are well-located
and competitively positioned within central business district and
urban infill locations within our core submarkets in the Sunbelt
region of the United States. In these submarkets, we seek to
maintain a portfolio that consists of core, core-plus, and
value-add investment opportunities. FINANCIAL PERFORMANCE
6. www.PKY.com COURVOISIER CENTRE Courvoisier Centre is a
two-building office complex with an adjacent five-story parking
garage, located on Brickell Key Island in Biscayne Bay, 400 feet
off the coast of Downtown Miami. The seven-story Courvoisier Centre
I was completed in 1986, and the 12-story Courvoisier Centre II,
parking garage, and retail space were completed in 1990. The
property totals 345,568 rentable square feet, including the
adjacent five-story parking garage. Additional features include
exceptional water views, several corner offices, exclusive
balconies, banking facilities, a gourmet grocery store, an on-site
dry cleaner, and other retail amenities. PROPERTY SPECS Type:
Office Size: 345,568 RSF Year Built: 1986 (I) and 1990 (II)
Manager: Elinne Dominguez OVERVIEW OF SUSTAINABILITY PROJECTS
Throughout 2013 and 2014, both buildings at Courvoisier Centre were
completely renovated and several major HVAC optimization projects
were completed. Specific energy-saving projects included: Resealed
all windows and installed insulating carpets in common area
walkways to help reduce heat loads Modernized all elevators with
variable frequency drives for a 60% improvement in elevator system
efficiency Re-lamped all garage lighting and metal halide outdoor
lamps with LED lamps Installed occupancy sensors in all mechanical
rooms and bathrooms Replaced two aging AHUs in Building I and two
aging chillers in Building II Connected the HVAC systems of both
buildings so that Building II serves as a central plant for both
buildings for all but the hottest months of the year SUSTAINABILITY
RESULTS Building I ENERGY STAR Score increased from 83 to 90 (out
of 100), while Building II ENERGY STAR Score remained at 87, making
Courvoisier Centre the most energy-efficient owned asset in the
Parkway portfolio Overall 9.9% energy reduction from 2013 to 2014
Measured energy savings of 491,000 kWh from 2013 to 2014 was enough
power to run 45 average U.S. homes for a year Both buildings are
targeted for LEED EB O&M Certification in 2015 Miami, FL 90/87
9.9% 45 ENERGY STAR Score Annual Energy Savings Homes Offset
PARKWAY | Annual Sustainability Report 2014 | 11
7. www.PKY.com COMMITMENT We strive to be a leader in
sustainable building operations by developing relationships with
sustainable partners and suppliers; implementing innovative energy
conservation, water usage, and waste reduction initiatives; and
measuring and reporting improved operational performance. Parkway
has always been a leader in sustainable operations in the office
building market, and we will continue our efforts to improve our
company's status in the broader commercial real estate industry. To
that end, Parkway continues to work with Verdani Partners, who were
instrumental in developing our LEED Volume Program. Verdani
Partners provides a full menu of sustainability services, including
education, training, energy audits, and project management. CORE
VALUES CREATING VALUE THROUGH SUSTAINABILITY We apply
sustainability to all aspects of business including development,
investments, leasing, and operations. INVESTING IN HEALTH AND
PRODUCTIVITY We create healthy and productive environments for
building occupants. DEMONSTRATING EFFICIENT OPERATIONS AND
EFFECTIVE MANAGEMENT We seek real results in energy efficiency,
water conservation, waste management, and greenhouse gas
reductions. BUILDING AN EQUITABLE FUTURE FOR CUSTOMERS AND
INVESTORS: We focus on making a profitable contribution through
implementing smart sustainability strategies. Responsible
Investment SUSTAINABILITY COMMITMENT PARKWAY | Annual
Sustainability Report 2014 | 13 ENVIRONMENTAL MANAGEMENT SYSTEM Our
centralized Environmental Management System (EMS) platform helps us
effectively manage all key components of our sustainability
programs, including: Goals & Targets Benchmarking &
Performance Tracking EMS Platform Sustainability Policies
Efficiency Investments & Green Building Certifications
Stakeholder Engagement Program Partnerships Reporting &
Disclosure REDUCE OPERATING EXPENSES IMPROVE OCCUPANT HEALTH AND
PRODUCTIVITY ENHANCE MARKETABILITY IMPROVE TRIPLE-BOTTOM-LINE
PERFORMANCE (ECONOMIC, SOCIAL, AND ENVIRONMENTAL) MINIMIZE
ENVIRONMENTAL FOOTPRINT SUSTAINABILITY GOALS
8. www.PKY.com Of Parkways portfolio, 15 buildings were LEED
certified and 28 buildings were ENERGY STAR labeled properties in
2014. Additionally, Parkway developed a customized LEED Volume
Certification Program in 2014, through which we are working toward
certifying 25 LEED office buildings nationwide. LEED EB Gold 300
West Sixth Street* Austin, TX LEED EB Gold One Congress Plaza
Austin, TX LEED EB Gold San Jacinto Center Austin, TX LEED EB Gold
Frost Bank Tower* Austin, TX LEED EB Gold US Airways Tempe, AZ LEED
EB Gold One American Center* Austin, TX *In November 2014, Parkway
sold its interest in 300 West Sixth Street, Frost Bank Tower, and
One American Center, and it continues to provide third party
management services for these assets. LEED CERTIFIED PROPERTIES
Responsible Investment PARKWAY | Annual Sustainability Report 2014
| 15 LEED EB Cert City West B4 Houston, TX LEED EB Gold Phoenix
Tower Houston, TX LEED EB Gold San Felipe Plaza Houston, TX LEED EB
Gold City West B3 Houston, TX LEED EB Silver City West B1 Houston,
TX LEED CS Gold Corporate Center IV Tampa, FL LEED CS Silver NASCAR
Plaza Charlotte, NC LEED EB Gold 3348 Peachtree Atlanta, GA LEED EB
Gold 3344 Peachtree Atlanta, GA
9. www.PKY.com We strive to locate our properties in walkable
cities. GENERATION NEXT Parkways premier assets are perfect for
Generation Next. Millennials are 2x as likely to use public transit
as any other generation. Proximity to family, friends, shopping and
entertainment is more important to this genera- tion than any
other. Millennials will make up almost 35% of the work- force in
2015 and 50% by 2020. ALLEMPLOYEES MaleFemaleTotal Total Employees
193129322 Supervisors 543084 Supervised Workers 238 99 139 TOTAL
WORKFORCE AS OF DECEMBER 31,2014 MaleFemaleTotal Arizona 9413
California 101 Florida 148 66 82 Georgia 32 10 22 Mississippi 5 2 3
North Carolina 24 9 15 Pennsylvania 3 2 1 Tennessee 4 2 2 Texas 92
34 58 TOTAL WORKFORCE BY STATE AS OF DECEMBER 31, 2014 EMPLOYEE
RELATIONS Responsible Investment www.PKY.com All Parkway employees
are encouraged to talk to supervisors, managers or other
appropriate personnel about observed illegal or unethical behavior
and, when in doubt, about the best course of action in a particular
situation. Employees, officers and directors who are concerned that
violations of Parkways Code of Conduct, or other illegal or
unethical conduct by employees, officers or directors of Parkway,
have occurred or may occur should either contact their supervisor,
other superiors, or the HR Department. If any member of the Parkway
organization does not believe it appropriate or is not comfortable
approaching their supervisors, other superiors, or the HR
Department about their concerns or complaints, then he or she is
encouraged to submit those concerns or complaints using Parkways
confidential toll-free Employee Hotline. Alternatively, any such
concerns can be submitted online through a secure, confidential,
third-party managed EMPLOYEE-MANAGEMENT DIALOG website. Through the
Employee Hotline or the website, any member of the Parkway
organization can make confidential, anonymous submissions to voice
concerns about violations of this code, or other suspected illegal
or unethical conduct by employees, officers or directors of
Parkway. The Hotline is answered by an independent contractor, and
any calls or online submissions made to the Hotline or the website
will be referred to the Audit Committee of the Board of Directors
on a confidential basis and not to senior management of Parkway.
Parkway will not retaliate against anyone who makes good faith
reports about suspected improprieties. If their concerns or
complaints require confidentiality, including keeping their
identity anonymous, then this confidentiality will be protected,
subject to applicable law, regulation, or legal proceedings.
PARKWAY | Annual Sustainability Report 2014 | 17 GOALS Reduce
operating expenses Improve occupant health and productivity Enhance
marketability Improve triple-bottom-line performance Minimize
environmental footprint City West Place Campus Cafeteria Houston,
TX
10. www.PKY.com Parkway has implemented many sustainability
policies portfolio-wide as part of our Corporate Sustainability
Program. These policies have been integrated into our day- to-day
operations at all of our properties. They help us maximize
efficiencies, create healthier environments for our tenants,
minimize the environmental impacts of our building operations, and
reduce our operating expenses. Each policy includes clear targets,
methods, and responsible parties to make it easier for our staff,
tenants, and vendors to comply. PARKWAYS KEY GREEN POLICIES Climate
Adaptation Policy Resilience Policy Building Exterior &
Hardscape Management Plan Pest Management, Erosion Control,
Landscape Plan Water Efficiency Program Cooling Tower Management
Plan Refrigerant Management Policy Energy Policy Sustainable
Purchasing Policy Solid Waste Management Policies Green Cleaning
Policy Indoor Air Quality (IAQ) Management Plan IAQ Management Plan
for Facilities Alterations High Performance Cleaning Program
Low-Mercury Lamp Purchasing Program Parkway has also developed
tools and resources to prepare for, confront, and manage risks
associated with catastrophic weather and climate-related events.
Assessing risk from a regional perspective, Parkway has a
portfolio-wide strategy for disaster planning to protect the
structural and financial integrity of our assets and ultimately
ensure the safety and well-being of building occupants. Climate
adaptation and building resilience planning will help Parkway
anticipate future changes in climate conditions and incorporate
these measures into all of our policies, plans, programs, and
general building operations across the board. SUSTAINABILITY
POLICIES Responsible Investment PARKWAY | Annual Sustainability
Report 2014 | 19 The success of our sustainability program is built
on key performance targets. As of December 31, 2014, we are on
track to meet the following targets and performance goals: 20% 30%
30% 75% 20% 90% 90+ 20% 20% Encourage at least 20% of all building
occupants to commute via alternative modes of transportation Have a
minimum indoor plumbing efficiency rate of 30% or higher according
to the LEED water efficiency calculator and a 30% reduction in
overall water consumption from 2013 by 2023 Reduce sources of waste
and increase waste diversion rates to 75% Increase native and
drought-resistant vegetation by 20% Use 90% green cleaning products
Have all facilities score 90 or higher on ENERGY STAR and decrease
energy consumption by 20% across our portfolio from 2013 by 2023
Decrease our carbon emissions by 20% across our portfolio from 2013
by 2023 TARGETS & PERFORMANCE GOALS
11. www.PKY.com Sustainable OPERATIONS High performance
buildings help us reduce operating expenses, enhance marketability,
improve occupant health and productivity, minimize our
environmental footprint, and create enterprise value. PARKWAY |
Annual Sustainability Report 2014 | 21
12. www.PKY.com Industry best practices for building operations
and maintenance are rapidly changing in light of regulatory
requirements, investor demands, and a greater push for data
transparency. At Parkway, we are ahead of the curve because we have
successfully implemented many sustainability policies across our
entire portfolio. The implementation of these policies has directly
resulted in reduced risk, improved occupant health and
productivity, measurable reductions in our environmental footprint,
and the creation of enterprise value. We also take a proactive
approach to promoting green operations by certifying our
highest-performing buildings as LEED green buildings using Parkways
customized LEED Volume Program. Finally, we promote green
operations by reporting and benchmarking through ENERGY STAR
Portfolio Manager, GRI, GRESB, and Greenprint. Verdani Partners,
our full-time sustainability team, supports all of our corporate
sustainability, LEED certification, and benchmarking initiatives.
Our sustainability mission is to make a positive and profitable
contribution toward a sustainable future by integrating green
building practices into all aspects of our building operations.
GREEN OPERATIONS Sustainable Operations City West Place Campus,
Houston, TX PARKWAY | Annual Sustainability Report 2014 | 23
CLIMATE CHANGE RISKS Managing risk in light of climate change is
imperative to the health and well being of our company. Parkway
maintains an umbrella insurance policy that covers all assets
within the portfolio. Our management teams perform risk assessments
for weather- related exposures on a continuous basis, even during
the acquisition stage in which we address energy and water
efficiency, earth movement, and other insurable risks including
flood, wind, other extreme weather conditions. As part of our due
diligence process, we consult with insurance advisors who have deep
industry experience. In 2014, we also implemented a Building
Resilience Policy to plan and prepare for climate-related
catastrophes. This policy specifies climate-related risk management
practices that should recur on an annual basis while any asset is
under Parkway management. The more significant climate-related
exposures in our portfolio are hurricanes, droughts, and flooding
in the southeast and gulf coast regions. CODE OF BUSINESS CONDUCT
AND ETHICS Parkway has a code of business conduct and ethics in
place with minimum requirements for its employees, as well as core
values that guide our employees. All employees, officers and
directors are expected to apply these principles in their daily job
responsibilities. Parkway encourages prompt reporting of any
illegal or unethical behavior. CORRUPTION POLICY Parkway has a
strict anti-corruption policy in place. Our staff members may never
accept or give any bribes, kickbacks, or any similar consideration
for any reason whatsoever. SUSTAINABILITY DUE DILIGENCE We
encourage all of our owned assets to comply with our corporate
sustainability programs. A Phase I environmental study and a
Property Condition Assessment report are always conducted prior to
the acquisition of any asset. Likewise, in the years following an
acquisition, a retro-commissioning study and/or an ASHRAE Energy
Audit may be undertaken based on the refinancing of an asset,
elapsed time from acquisition, or if further efficiencies are
desired. The combination of these reports assist the entity by
outlining any current deficiencies or efficiency improvements that
might be available presently or in the future. If project
improvements are identified or recommended, the entity teams can
prioritize and budget for respective projects. This priority list
can be used to mitigate selected risks related to the function and
efficiency of the entitys sustainability efforts. BUILDING
OPERATIONS Parkway management teams work closely with department
heads and staff members to maintain property, environmental, and
life safety procedures. Parkways Property Condition Assessment
covers: Capital concerns and budget analysis Building site and
infrastructure (topography, drainage, retaining walls, paving,
curbing, lighting) Building envelope (windows and walls) Structural
(foundation and framing) Interior elements (stairways, hallways,
common areas) Roofing systems Mechanical systems Plumbing
Electrical Vertical transportation Life safety, ADA, code comp. air
quality (fire codes, handicapped accessibility, water/mold) Energy
efficiency Water efficiency As part of our ongoing operations we
address: Risk management Insurance and internal audit Environmental
risk management: insurance requirements Specific training Internal
audit of records Staff and management procedures Process for
staying abreast of local laws and ordinances Disaster recovery plan
Building efficiency RISK MANAGEMENT
13. www.PKY.com We recognize that many real estate investment
companies can gain a competitive advantage in the marketplace based
on their performance across a wide range of sustainability metrics
such as energy efficiency, climate change resilience, and workplace
health and safety. We have also found that strong performance
across key sustainability metrics now plays an increasingly
important role in real estate investment and leasing decisions by
prospective investors and tenants with strong environmental
screening criteria. In 2014, Parkway benchmarked and registered 97%
of our owned assets on the U.S. EPAs ENERGY STAR Portfolio Manager
website, and we enrolled 25 buildings in our LEED Volume Program.
We also ranked as a Green Star in the Top Quartile in all
categories and took 8th place in the U.S. Office Peer Group for
GRESB in 2014. To remain consistent with data we track in ENERGY
STAR Portfolio Manager, this report is based on building count
rather than property count (several properties have multiple
buildings) and gross square footage rather than leasable square
footage. In 2014, our 51 owned properties equated to 73 buildings
totaling over 21.5 million gross square feet. * Scope 1: All direct
GHG emissions from energy generated on-site * Scope 2: Indirect GHG
emissions from consumption of purchased electricity, heat or steam
12.3% 2.3% 1.8% 12.3% reduction from 2013-2014 | Like-for-Like
Total 2014 Water Consumption 1,490,017 kLiters (Absolute) 2.3%
reduction from 2013-2014 | Like-for-Like Total 2014 Energy
Consumption 411,378 MWh (Absolute) 1.8% reduction from 2013-2014 |
Like-for-Like Total Direct GHG Emissions 924 MTCO2e (Scope1) Total
Indirect GHG Emissions 222,107 MTCO2e (Scope 2) PERFORMANCE
INDICATORS Sustainable Operations PARKWAY | Annual Sustainability
Report 2014 | 25 51Properties 73Buildings 21.5Million GSF 97% 28/73
76/100 83/100 33% 25/73 13/73 2/73 SF of the Portfolio Benchmarked
Buildings Labeled in 2014 Average ENERGY STAR Score for Benchmarked
Buildings Average ENERGY STAR Score for Labeled Buildings LEED EBOM
Certified LEED Certified Core & Shell SF of the Portfolio LEED
Certified Registered LEED Volume Program 2014 PERFORMANCE DATA
(CALENDAR YEAR)
14. www.PKY.com SUSTAINABLE SITES Our primary goals for
sustainable sites are to protect natural and agricultural areas,
encourage sustainable landscape, reduce emissions associated with
automobile use, eliminate light pollution, and protect and/or
restore sites. The establishment of our design and operational
objectives and policies related to sustainable sites make building
location and sustainable features a metric for decision-making.
This encourages development and preservation practices that limit
the environmental impact of buildings on local ecosystems. WATER
EFFICIENCY Our water efficiency goals are to monitor and reduce
water consumption, save water and energy in treating the water,
improve environmental well- being, and practice water-efficient
landscaping. Installing high-efficiency water fixtures will lead to
significant water, energy, and operating expense savings and will
help protect each of our regions freshwater resources. We encourage
base building and tenant upgrades to follow the best practices
identified on our water efficiency program. We also provide a Green
TI Guide for any water consuming fixtures that will be installed by
tenants. Our best practices and strategies for water efficiency
include logging weekly water meter readings, installing
water-efficient landscaping and irrigation, specifying low-flow
water fixtures for all future build-outs, and optimizing our
cooling tower water management processes to minimize make-up water
usage. MATERIALS & RESOURCES Our main goals for materials and
resources are to select sustainable materials, practice waste
reduction strategies, reduce source waste, reuse and recycle, and
reduce mercury pollution. Parkway is committed to installing
materials that minimize negative impacts to the local and global
environment and provide a healthy indoor workspace. Several
materials found in interior finishes such as wall paint, cleaning
agents, etc. have been proven to cause adverse health impacts by
releasing harmful gasses and volatile organic compounds into the
air. Our sustainable purchase and waste management policies
encourage our vendors and stakeholders to use sustainable
materials. Additionally, Parkway has been committed to recycling
throughout our portfolio since 2009. Presently, we recycle at more
than 60% of our properties. We recycle light bulbs, computers,
phones, batteries, and demolition material. In addition to our
recycling policies, we also encourage our tenants to participate in
our recycling programs through in-house training, seminars,
newsletters, and events. . SUSTAINABILITY INITIATIVES Sustainable
Operations PARKWAY | Annual Sustainability Report 2014 | 27 ENERGY
EFFICIENCY Parkway has invested millions of dollars over the last
several years in capital improvement projects by upgrading major
HVAC equipment and central plants at several of our properties. In
addition, we have undertaken major lighting retrofits and installed
white reflective roofs, CO2 sensors, window tinting, and dimmable
stairwell lighting as part of our overall energy efficiency
programs. Our approach to energy conservation began with the
completion of work considered "low-hanging fruit" and has grown
into a program that constantly evaluates our operations, utility
consumption, product choices, preventive maintenance, utility
incentives, and tenant improvements. We track our monthly utility
data and benchmark it with ENERGY STAR Portfolio Manager. We
continually stress to our managers and engineers that 30%-40% of
our energy conservation efforts are driven by effective building
operations and 70% of energy usage is directly related to tenant
behavior. We strive to ensure our preventive maintenance programs
are consistent and effective and that our energy management systems
are accurate and perform optimally. We also include energy saving
design and construction procedures that produce sustainable
results, and we communicate our sustainable program to our tenants
to ensure they understand and participate in our conservation
efforts. INDOOR AIR QUALITY Our indoor air quality goals are to im-
prove ventilation and manage air con- taminants. Our properties are
designed to provide a healthy indoor environ- ment for occupants by
providing fresh air and an adequate exhaust of contami- nants to
the outdoors. We have developed several indoor air quality,
smoking, and green cleaning policies for our building operations;
we also included similar measures on our Green TI Guide. These
programs en- courage our tenants to introduce similar measures
during their build-out in order to prevent indoor air quality
problems resulting from construction projects and to maintain the
well-being of all build- ing personnel. Studies have shown that
healthy indoor environments have contributed to great- er employee
retention and productivity and a more pleasurable experience for
customers. We perform annual third party indoor air quality audits
nation- wide and require our vendors to com- ply. We encourage our
tenants to im- plement an indoor air quality manage- ment plan
during their build-outs with the intent to protect the health of
their employees.
15. www.PKY.com BEST MANAGEMENT PRACTICES We have implemented
best practices for each of the following: Maximizing energy
performance Completing lighting upgrades and controls Maximizing
heating and cooling efficiencies Improving building automation sys-
tems in place Implementing ongoing commission- ing programs
Implementing systems-level sub- metering programs Purchasing ENERGY
STAR prod- ucts Establishing an energy optimization plan
Retrofitting programs in place for main building systems (chillers,
cooling towers, boilers, fan motors, and VFDs) Exploring new energy
efficiency technologies for predictive energy use optimization
Exploring renewable energy systems Reporting emissions reduction
achievements ENERGY MANAGEMENT We strive to monitor and improve
ener- gy performance, eliminate CFCs, utilize renewable energy, and
reduce energy costs. We are working towards a goal of decreasing
our energy consumption by 20% across our portfolio by 2023. To
achieve these goals, Parkway has an energy team that is responsible
for guiding the property teams with deci- sions affecting energy
use. The team was created to help integrate energy efficiency best
management practices and Parkways energy policy with our building
operations staff. In addition to planning and implementing specific
improvements, the team is responsible for measuring and tracking
energy per- formance and communicating with management, employees,
tenants, and vendors. Our energy policy provides the foundation for
successful energy management and articulates our com- mitment to
energy efficiency. We have also developed guidelines and resources
for energy efficiency measures that can be adopted by our tenants
during tenant improvement projects. Finally, our Green Office Guide
helps to educate our tenants on plug load behavior and reduction
strategies. In addition, Parkway has engaged Ecova, a utility and
energy manage- ment company, to support our ongoing operations with
multiple energy man- agement services. Ecova manages our utility
bills across most buildings in our portfolio, and automatically
reports monthly energy and water consumption data for our buildings
on the ENERGY STAR Portfolio Manager website. In addition, we can
use their web-based portal to review trends in our monthly energy
consumption at both the asset- level and the portfolio level.
ENERGY STAR PARTNER We use the U.S. EPAs web-based Portfolio
Manager tool to manage ener- gy and water consumption, set energy
investment priorities, and report green- house gas emissions for
all of our buildings. Our average ENERGY STAR score for ENERGY STAR
labeled buildings is 83 (out of 100). This indicates that our
portfolio of properties is outperforming the national average by
33%. SUSTAINABILITY INITIATIVES Sustainable Operations 83 AVERAGE
ENERGY STAR SCORE 33% ABOVE NATIONAL AVERAGE FOR PORTFOLIO-WIDE
ENERGY USE PER SF PARKWAY | Annual Sustainability Report 2014 | 29
We are working toward a goal of decreasing our carbon emissions by
20 percent across our portfolio by 2030 with a long-term goal of
achieving carbon neutrality. Our energy, water and waste reduction
policies and best management practices support our carbon reduction
goals. We have measured and publicly reported our carbon emissions
with Energy Star and the ULI Greenprint Center for Building Perfor-
mance. In addition, we have been implementing robust alternative
transportation programs in support of our indirect emission
reduction targets. We are currently tracking Scope 1 and 2
emissions. As our sustainability programs evolve, we are hoping to
develop strategies to enable us to track Scope 3 indirect emissions
as well. In 2014, Parkway became a member of the ULI Greenprint
Center for Building Performance and its Advisory Board and
Performance Com- mittee, and we are now reporting our CO2 emissions
through Green- print. We are part of a worldwide alliance of real
estate owners, investors, financial institutions and other industry
stakeholders committed to re- ducing carbon emissions across the
global property industry. Installing solar panels or other on-site
renewable energy technologies has not been financially feasible at
most of our buildings since most of our portfolio is made of
existing high-rises with limited roof space and options for
renewable energy on site. Therefore no investments in renewable
energy sources where made in 2013. Despite these barri- ers, we
continue to investigate innovative ways to support a clean fuel and
energy economy by exploring renewable energy technologies. We
routinely review renewable energy opportunities by location. As an
example, one of the buildings we manage purchases 100% of its pow-
er from renewable energy sources. Parkway is constantly looking at
ways to reduce our carbon emissions through reductions in our
energy and water consumption and by minimizing waste. Carbon
Footprint NASCAR Plaza Charlotte, NC
16. www.PKY.com JAN FEB MAR APR MAY JUN Developed New
Sustainability Strategy NAREIT Leader in the Light Working Forum
& Video Interview Updated Mission, Vision, Goals & Targets
ENERGY STAR Surveys to Identify Candidates for LEED Volume Program
Sustainability Intro & Program Webinar Updated 21
Sustainability Policies LEED Volume Program Initial Application
EBIE Award Nominations Automated Utility Data on ENERGY STAR
Portfolio Manager with Ecova Earth Day Tenant Events & Launched
the Green Office Guide Launched Sustainability Website Updated
& Launched New Sustainability SharePoint Site EBie Award
Finalist (Frost Bank Tower*) LEED Volume Prototype Submitted
Released 1st GRI Sustainability Annual Report *In November 2014,
Parkway sold its interest in Frost Bank Tower, and it continues to
provide third party management services for this asset. PARKWAYS
2014 TIMELINE OF ACCOMPLISHMENTS Sustainable Operations PARKWAY |
Annual Sustainability Report 2014 | 31 JUL AUG SEP OCT NOV DEC
Submitted GRESB Survey with Asset Level Data & 3rd Party
Verification Created or Corrected 25+ ENERGY STAR Profiles CDP
Application Launched LEED Recertification Program (11 buildings)
Started LEED Initial Certification Program (14 Buildings) ULI
Greenprint Report Educational Webinar Series LEED Volume Program
Prototype Approved Launched Electronic Sustainability Newsletter
Submitted 28 ENERGY STAR Label Applications Submitted First Batch
of LEED Recertification Buildings Announced Internal Sustainability
Awards Enrolled in the Federal Better Buildings Challenge
17. www.PKY.com ONE ORLANDO CENTRE One Orlando Centre is a
premier Class A business address located on the north end of
Downtown Orlando. This 19-story building offers beautiful panoramic
views in the heart of Downtown. Its location provides excellent
access to the central business district, as well as to Winter Park
and Maitland. The building provides distinctive exterior and
interior architectural design and elegant office space along with
unparalleled tenant services. The building provides on-site
property management, 24 -hour security, the Natures Table Caf, and
an on-site full-service bank with drive- thru tellers and a walk-up
ATM. PROPERTY SPECS Type: Office Size: 355,783 RSF Year Built: 1987
Manager: Rhonda Veasey OVERVIEW OF SUSTAINABILITY PROJECTS
Throughout 2013 and 2014, One Orlando Centre was heavily renovated,
and several major HVAC optimization projects were completed.
Specific energy- and water-saving projects included: Resealed the
building envelope and added window glazing to help reduce heat
loads Converted original base building lighting to modern T-8 lamps
Replaced aging chillers with two state-of-the-art 375-ton Trane
Series S CenTraVac chillers and one 300-ton Trane Stealth RTAE
air-cooled chiller to handle peak and night loads Interconnected
two on-site chiller plants and optimized the pumping strategy
between them to reduce the total connected load by approximately
467 kW Installed new state-of-the-art cooling towers that
incorporate a near zero bleed water treatment program Upgraded the
building automation system to closely monitor and control HVAC,
lighting, and other key systems SUSTAINABILITY RESULTS Projected
annual water savings of over 1 million gallons per year Projected
33% reduction in average annual energy use based on the first three
months of measured energy performance Building is targeted for LEED
EB O&M Certification in 2015 Orlando, FL ENERGY STAR Score
Projected Annual Water Savings Projected Annual Energy Savings 83
1M Gals 33% PARKWAY | Annual Sustainability Report 2014 | 33
18. www.PKY.com WHERE IS OUR OLD CHILLER NOW? Parkways
innovative contribution of a large heavy chiller plant to the gulf
floor is simply the latest in a long list of artificial reef
projects designed to enhance the coastal ecosystems of Floridas
gulf waters. The chiller was sunk to a depth of 90 feet in the Gulf
of Mexico on March 25, 2015, along with a granite plaque
commemorating its origins from the roof of One Orlando Center, 19
stories above downtown Orlando, where it functioned well for over
25 years. Bruce Hall, Parkways Director of Engineering AN OLD
CHILLER PLANT IS REPURPOSED AS A REEF In conjunction with the major
HVAC system upgrades completed at One Orlando Centre in 2014,
Parkway's Director of Engineering, Bruce Hall, spearheaded an
innovative approach to the disposal of the buildings original
chiller plant. Rather than sending the old chiller plant to the
scrapyard, Bruce worked with David Walter of Reefmaker Artificial
Reefs & Marine Ecosystems and TRANE representative Chris Saint
John to safely decommission and dispose of the old chiller plant at
the bottom of the Gulf of Mexico. There, it has begun its new
purpose as the anchor for one of Floridas newest artificial reef
habitats. Parkway would like to especially thank TRANE for sharing
the cost of decommissioning our old chiller plant and transporting
it to the new reef site. ONE ORLANDO CENTRE (CONTINUED) Sustainable
Operations Chandeleur Sound Mobile Bay Pascagoula Tillmans Corner
Dauphin Island Petit Bois Island Mobile Gulf of Mexico Gulf Shores
Horn Island Oyster Bay 29 54.785N, 87 32.387W Parkway Reef Habitat
29 54.785N, 87 32.387W PARKWAY | Annual Sustainability Report 2014
| 35 ARTIFICIAL REEFS Artificial reefs have evolved dramatically
over the years as marine scientists have learned which materials
serve as effective anchors for new coral reefs and which materials
do not. Their success rates for providing badly needed reef
habitats have greatly improved as a result. Step 1: Establishment
Today, artificial reefs are typically created by sinking large
heavy metallic or concrete objects (such as old ships, planes,
train cars, etc.) in relatively shallow coastal ocean waters. These
large heavy objects provide critical anchor-points for thousands of
tiny organisms that make up the base layer of any living reef. They
also provide safe places for smaller fish to hide from larger
predators and often make for interesting recreational dive sites
for humans. Step 2: Growth & Evolution Once a base layer of
living reef organisms are anchored to these large heavy objects,
vibrant and complex living reef ecosystems can begin to develop.
The end result after several years of continued growth is a
beautiful and teaming underwater ecosystem that any fish or human
diver would be delighted to visit. CONTRIBUTING TO FLORIDAS NEWEST
ARTIFICIAL REEF HABITAT
19. www.PKY.com Stakeholder ENGAGEMENT Partnerships with
leading sustainability organizations and their programs are an
integral part of achieving Parkways sustainability goals. PARKWAY |
Annual Sustainability Report 2014 | 37
20. www.PKY.com Listening and talking to employees, vendors,
tenants, investors, and other community groups are key strengths of
Parkways sustainability programs. We engage with our stakeholders
to address sustainability issues on a regular basis through
webinars, employee newsletters, and electronic tenant
communications. We also host an extensive sustainability resource
website, which is being continuously updated as new technologies,
trends, and data arise. Our sustainability team also routinely
presents to industry organizations, universities, national
conference audiences, and policymakers on various sustainability
issues each year. In 2014, we engaged with our local and national
stakeholder communities on many occasions. GREENBUILD 2014 Parkways
Director of Sustainability spoke about Parkways Volume Program at
GreenBuild 2014 in New Orleans. During this informative workshop,
he shared best practices on implementing a LEED volume program with
the GreenBuild audience. He also spoke about and the efficiencies
and financial benefits Parkway has seen since putting this program
in place. All members of the sustainability team were in attendance
to learn the latest trends in Green Building. NAREITS LEADER IN THE
LIGHT WORKING FORUM Parkway was once again represented at the 2015
NAREIT Leader in the Light Working Forum in Virginia. During a
video interview with Parkways Head of Sustainability, viewers
learned the strategies Parkway took to rank as a Green Star in the
top quartile in the office category for GRESB. Parkways strong
stakeholder and tenant engagement programs were also highlighted.
USGBCS MID-YEAR MEETING Parkways Head of Sustainability attended
the USGBCs 2014 Mid-Year Meeting along with USGBC staff and other
USGBC Regional Chapter volunteers to discuss upcoming changes to
the LEED rating system, green market transformation, and the
growing importance of transparency in building energy use.
Parkway's Head of Sustainability also spoke about Parkway's
Corporate Sustainability Programs at the 2015 Tri-State Symposium.
STAKEHOLDER ENGAGEMENT Members of Parkways Sustainability Team at
the Peoples Climate March 2014 PARKWAY | Annual Sustainability
Report 2014 | 39
21. www.PKY.com EARTH HOUR Parkway is a proud participant in
Earth Hour, a global movement in which millions of people across
the world, including thousands of businesses, governments, and
organizations turn off their non-emergency lights between 8:30-9:30
pm (local time) in support of positive change toward a more
sustainable planet. This global event takes place in March each
year. EARTH DAY Earth Day is honored around the world each year on
April 22. For many of our properties, it is a day which culminates
a years worth of green building activities and celebrates what our
property teams have done to reach our sustainability goals. Several
properties extend their Earth Day celebration into a week-long
event by holding e-waste drives, transportation fairs, and other
tenant and community engagement events. ANNUAL E-WASTE DRIVES In
2014, we continued to track and benchmark our e-waste diversion
rates across our entire portfolio. Education and awareness among
tenants and staff bring us closer to our goal of diverting 100% of
e-waste, which often contains hazardous materials that can be toxic
to our health and our environment if not properly managed. We start
by asking properties to hold e-waste drives annually during their
Earth Day events and carry the practice throughout the year by
providing recycling stations at the properties. According to the
EPA, e-waste is still the fastest growing municipal waste stream in
the U.S. accounting for 2% of our trash in landfills but 70% of our
overall toxic waste. TENANT EVENTS Stakeholder Engagement PARKWAY |
Annual Sustainability Report 2014 | 41 Tenants typically account
for roughly 70% of any buildings energy consumption. As property
owners and managers, we have an obligation to communicate with our
tenants about the advantages of being more energy efficient and
sustainable. Our Tenant Engagement Programs include useful tools
and resources that help tenants understand the connection between
their energy use and the associated costs that may be passed down
by their landlord. GREEN OFFICE GUIDE Parkways Green Office Guide
serves to educate tenants and provide several simple and low-cost
strategies and resources that they can use to green their offices.
This guide was developed to help Parkways property management teams
work with their tenants in achieving sustainability across five key
categories: Transportation, Energy and Atmosphere, Materials and
Resources, Indoor Environmental Quality, and Innovation. Buying
ENERGY STAR-rated computers, turning off lights at night, and
designing space to take advantage of daylight are just a few of the
strategies covered in the guide GREEN TENANT IMPROVEMENT GUIDE As
part of our Tenant Engagement Program, we have developed a Green
Tenant Improvement Guide (Green TI Guide) to educate and motivate
tenants to green their interior spaces during initial design,
construction, and operation. This guide includes technologies and
best practices that can significantly reduce energy usage and water
consumption, enhance recycling efforts, and minimize carbon
footprint, resulting in a healthier, more productive workspace.
Parkways Green TI Guide is a complementary resource to the Green
Office Guide, which fosters better communication between the
property management teams and the tenants. In addition, Parkway has
put in place building-specific TI specifications to maximize
efficiencies in tenants HVAC and electrical systems. These include
recommended maximum lighting levels and installation of submeters.
GREEN LEASES We understand that green leasing efforts are important
for improving environmental performance and data reporting
transparency, as well as aligning financial incentives for both
tenants and owners when implementing sustainability measures. We
also know that energy-aligned leases are one of the key financing
mechanisms for energy retrofits. For these reasons, we have
incorporated innovative green leasing provisions into our standard
template for new leases that would allow us to share the costs and
benefits of energy projects and other green investments with our
tenants. TENANT ENGAGEMENT
22. www.PKY.com SUPPORTING ART SCHOLARSHIPS Throughout 2014,
Parkways Connie Knorp served as Vice Chair of the Board of
Directors for the 28th Annual Lake Mary Heathrow Festival of the
Arts in Seminole County, FL. 40,000 people attend this fine arts
and crafts festival each year. Thanks to corporate and community
sponsors, the festival is able to provide art scholarships to
graduating Seminole County high school students as they move on to
college to develop their artistic talents. To date, the festival
has awarded more than 1,000 scholarships to community students
since 1986, contributing over $1,000,000 to art education. More
information about the festival is available here:
www.lakemaryheathrowarts.com EV & HYBRID CAR DEMO DAY In
September, 2014, the Parkway team in Charlotte, NC, partnered with
Envision Charlotte to secure electric vehicles (EVs) and hybrid
cars for tenants to test drive at NASCAR Plaza. Parkways Ashley
Funderburk, was instrumental in organizing this event and continues
to be an active participant in Envision Charlottes award-winning
sustainable development activities in North Carolinas most
sustainable city. More information about Envision Charlotte is
available here: www.envisioncharlotte.com COMMUNITY ENGAGEMENT
Stakeholder Engagement At Parkway, we take our tagline, Where
business works to heart. Our work extends beyond the walls of our
buildings. Through our actions, we can have a larger impact on the
communities with which we serve. We provide one paid day per year
for volun- teer activities and encourage our staff to become
involved in their communities, join professional organizations, and
engage in community service to make a positive difference. PARKWAY
| Annual Sustainability Report 2014 | 43 FREE HOME REPAIRS In April
2015, The Parkway team in Houston, TX, volunteered with Rebuilding
Together to help repair the home of an elderly couple in the
Trinity/Houston Gardens neighborhood of Houston. City West Places
Senior Property Manager, Patti Davis, and Chief Engineer, Mike
Shreve, managed this project and organized the many donations for
all the supplies that were needed to make the necessary home
repairs. Rebuilding Together provides free repair and renovation
programs for elderly low-income, disabled, and service-veteran
homeowners in need. More information about this organization is
available here: www.rebuildinghouston.org/about.htm FEEDING THE
HOMELESS In June 2015, the Parkway team in Phoenix, AZ, volunteered
at St. Vincent de Paul to help feed the homeless during their lunch
hour. They ended up feeding 781 people. More information about St.
Vincent de Paul is available here: www.stvincentdepaul.net/
programs/dining-rooms Pictured from left to right: (Back) Manny
Vargas, William Milho, Matt Mooney, Billy Binger, Tim Thurlow, Erik
Toupin, Tim Redding, (Front) Kaitlin Blaha, Yesenia Felix, Kelli
Austin, Jessie Miller, Mark Sebastian.
23. www.PKY.com In 2014, we provided plenty of opportunities
for our staff and tenants to learn, connect, and take action to
support our sustainability programs through various internal and
external educational outreach initiatives. Our internal educational
and outreach initiatives for 2014 included internal LEED webinars,
an internal sustainability resource site, and regular e-mail and
newsletter communications. We also launched our internal Annual
Sustainability Awards program in 2014. Finally, we offered a
voluntary internal staff training program in 2014 to help our
employees earn their LEED Green Associate accreditations.
Externally, Parkway continued to be a leading voice in the real
estate industry in 2014 through our participation in numerous
industry working groups, lectures at universities, participation in
panel discussions at key green building conferences, and meetings
with policy makers related to sustainability in the building
industry. We are committed to continuously developing and improving
our internal and external educational initiatives. These programs
for our employees, tenants, vendors, and visitors relay vital
information concerning Parkway's sustainability programs. INTERNAL
COMMUNICATIONS Sustainability resource site Educational webinars
Employee email communications Sustainability newsletters EXTERNAL
COMMUNICATIONS Annual sustainability report Sustainability tab in
electronic tenant handbooks Investor reports Green tenant
improvement guide Green office guide Biannual occupant comfort
surveys Sustainability signage programs Nationwide e-waste drives
Earth Day tenant events Vendor and tenant memos Press releases
& articles PKY-Green Twitter Account Educational presentations
Case studies EDUCATION & OUTREACH Stakeholder Engagement
Parkways Head of Sustainability speaking at the California Congress
for the Living Building Challenge Parkways Head of Sustainability
speaking at the 2014 VERGE Conference PARKWAY | Annual
Sustainability Report 2014 | 45 PROPERTY LEVEL INDUSTRY AWARDS *
FROST BANK TOWER EBie Award Winner, It takes a Village Category
FROST BANK TOWER EBie Award Finalist FROST BANK TOWER TOBY Award -
BOMA Austin ONE AMERICAN CENTER American Forest & Paper
Association - Business Leadership Award for Recycling FROST BANK
TOWER BOMA 360 Performance Award FROST BANK TOWER TOBY Award - BOMA
Austin 300 WEST 6TH BOMA 360 Performance Award 300 WEST 6TH TOBY
Award - BOMA Austin, BOMA Southwest region, plus International TOBY
Award AWARDS & RECOGNITION 2015 2014 2012 2011 2010 2015 EBie
AWARDS Parkways Frost Bank Tower in Houston, Texas, was the proud
recipient of the 2015 EBie award in the It Takes a Village
category. The buildings Property Manager, Sammie Baker, accepted
the award on behalf of Parkway at the annual EBie Awards Gala in
New York City. * In November 2014, Parkway sold its interest in 300
West Sixth Street, Frost Bank Tower, and One American Center, and
it continues to provide third party management services for these
assets. 2010 2012 2011
24. www.PKY.com In 2014, we recognized the top properties that
put our best practices and strategies in place to support Parkways
sustainability goals. We are proud of all the award winners. AWARDS
& RECOGNITION Stakeholder Engagement ENERGY EFFICIENCY AWARDS
Sam Thornton, Property Manager Wayne Sutor, Senior Regional Chief
Engineer MOST IMPROVED ENERGY EFFICIENCY 2nd Place PEACHTREE
DUNWOODY PAVILLION* Atlanta, GA *Sold in May 2015 Alexandria Brown,
Regional Property Manager Elinne Dominguez, Property Manager
Joubert Duplessis, Chief Engineer MOST ENERGY EFFICIENT BUILDING
1st Place COURVOISIER CENTRE I Miami, FL Alexandria Brown, Regional
Property Manager Elinne Dominguez, Property Manager Joubert
Duplessis, Chief Engineer HIGHEST ENERGY STAR SCORE 2nd Place
COURVOISIER CENTRE I & II Miami, FL Sheila Cannata, Property
Manager Mike Shreve, Chief Engineer HIGHEST ENERGY STAR SCORE 1st
Place CITY WEST PLACE B3 Houston, TX Kaitlin Blaha, Property
Manager Tim Redding, Chief Engineer MOST IMPROVED ENERGY EFFICIENCY
1st Place HAYDEN FERRY II Tempe, AZ McKenzie Followwill, Senior
Property Manager David Stauber, Regional Chief Engineer HIGHEST
ENERGY STAR SCORE 3rd Place COMERICA BANK BUILDING Sugar Land, TX
PARKWAY | Annual Sustainability Report 2014 | 47 Shane Cawood,
Senior Property Manager Gayle Schaefer, Property Manager Rogelio
Rodriguez, Chief Engineer MOST WATER EFFICIENT 1st Place SAN FELIPE
PLAZA Houston, TX Patti Davis, Senior Property Manager David
Stauber, Regional Chief Engineer MOST IMPROVED WATER EFFICIENCY 2nd
Place 550 GREENS PARKWAY Address/City Sheila Cannata, Property
Manager Mike Shreve, Chief Engineer MOST WATER EFFICIENT 2nd Place
CITY WEST PLACE B1 Houston, TX Cathleen Clayton, Property Manager
Wayne Sutor, Senior Regional Chief Engineer MOST IMPROVED WATER
EFFICIENCY 1st Place TWO RAVINIA* Atlanta, GA *Sold in April 2015
Cassie Zingery, Regional Property Manager Jason McCrain, Regional
Chief Engineer Regan Mills, Property Manager Catherine Woltz,
Assistant Property Manager Dewey Moore, Chief Engineer HIGHEST
RECYCLING RATE 2nd Place HEARST TOWER Charlotte, NC WATER
EFFICIENCY AWARDS Sammie Baker, Senior Property Manager Ron
Williams, Chief Engineer HIGHEST RECYCLING RATE 1st Place FROST
BANK TOWER* Austin, TX *Sold in November 2014 WASTE MANAGEMENT
AWARDS
25. www.PKY.com Partnering with leading sustainability
organizations on green program initiatives only makes our
sustainability programs stronger. We continue to work closely with
the EPAs ENERGY STAR for Buildings program, USGBC Local Chapters,
BOMAs Sustainability Committee, the Greenprint Performance
Committee, and the local and Federal Better Buildings Challenge
Program. Parkway is frequently invited to participate in new
industry initiatives and discussions. ENERGY STAR PARTNER
Throughout the 2014 calendar year, 28 of Parkways owned buildings
earned the 2014 ENERGY STAR label. This impressive feat qualified
Parkway as a Premier Member of U.S. EPAs new Certification Nation,
which was created in honor of ENERGY STARs 15th anniversary. For
2014, Parkways portfolio-wide average ENERGY STAR score for our
ENERGY STAR labeled buildings was 83 (out of 100). Our average
ENERGY STAR score shows that our portfolio of properties is
outperforming the national average by 33%. BOMA Parkway is involved
with many local BOMA chapters throughout the country. In addition,
Parkways Sustainability Manager is a member of BOMA/GLA
Sustainability Committee created to educate and inform BOMA/GLA
members on techniques, trends, and methods related to energy
efficiency, sustainable practices, and all aspects of green
buildings. USGBC MEMBER Parkway enrolled 25 buildings in USGBCs
LEED Volume Program. Through this customized self-certification
program, at least eleven of our LEED certified buildings will
pursue recertification and up to 14 of our uncertified buildings
will pursue initial LEED certifications over the next three years
(2015-2017). ULI GREENPRINT CENTER FOR BUILDING PERFORMANCE As a
member of its Advisory Board and Performance Committee, Parkway is
part of a worldwide alliance of real estate owners, investors,
financial institutions, and other industry stakeholders committed
to reducing carbon emissions across the global property industry.
The ULI Greenprint Center for Building Performance is a dedicated
center of research and programming at the Urban Land Institute.
BETTER BUILDINGS CHALLENGE Parkway made the commitment in 2014 to
decrease energy consumption by 20% across our portfolio from 2013
levels by 2023 as part of the Federal Better Buildings Challenge.
PARTNERSHIP PROGRAMS Stakeholder Engagement PARKWAY | Annual
Sustainability Report 2014 | 49 San Felipe Plaza, Houston , TX
26. www.PKY.com At Parkway, we understand the importance of
sustainability reporting and disclosure. We see this type of
reporting and disclosure as a differentiator in competitive
industries, and we believe it fosters investor confidence, trust,
and employee loyalty. We see that more investors are looking to
connect their capital with companies that run their portfolios more
efficiently and sustainably, and with companies that have a strong
track record of reporting their environmental performance along
with their financial performance. Within that context, one of our
goals is to benchmark all of our properties on ENERGY STAR
Portfolio Manager to get an accurate baseline for energy usage. In
2014, we benchmarked 97% of our portfolio, an increase from 75% in
2013. REPORTING & DISCLOSURE In addition, we track our ongoing
environmental performance through our use of ULIs Greenprint
Environmental Management Platform and through our ongoing
participation in the annual industry-wide GRESB survey. These
tracking tools give us a yardstick against which we can measure our
progress toward greening our portfolio. For 2014, we are reporting
the results of our energy benchmarking and environmental management
activities in this annual Sustainability Report. This
Sustainability Report is written in accordance with the G4 version
of the Global Reporting Initiative (GRI). PARKWAY | Annual
Sustainability Report 2014 | 51 This report contains Standard
Disclosures from the GRI Sustainability Reporting Guidelines. Below
is the corresponding GRI Content Index based on the G4 indicators.
For more information about this report, contact: Daniele Horton,
Director of Sustainability Parkway Properties e-mail:
[email protected] GRI Disclosure Description Page 1 CEO
Letter 03 2, EC2 Risk Management 23 3, 4, 5, 6, 7, 8, 9, 28, 29, 32
Company Profile 08 16, EC8 Partnership Programs 48 28, 29, 30 About
this Report 05 31, 32, 33 The Global Reporting Initiative 51 34, 36
Governance Structure 08 56 Green Operations 22 58, HR3 , LA11, SO4
Employee Relations 16 EC8 Targets and Performance Goals 19 EC8
Community Engagement 42 EC8 Awards and Recognition 45, 46, 47 EC8
Tenant Events 40 EN3, EN5, EN6, EN19, EN8 Performance Indicators 24
HR3 Stakeholder Engagement 38 GRI INDEX
27. www.PKY.com 390 N, ORANGE AVENUE SUITE 2400 ORLANDO, FL
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