AvalonBay Communities

ESG AT AVALONBAY

At AvalonBay, we are focused on integrating ESG practices into everything we do, innovating with purpose and passion, and valuing the impact both big and small actions can have. It all adds up to creating a better way to live — for all people, the places we live and work and the planet at large.

ENVIRONMENTAL
SOCIAL
GOVERNANCE
REPORTING & RECOGNITION

Environmental

Environmental responsibility is core to our business and a critical part of developing sustainable communities. This is why we integrate our environmental sustainability initiatives with our design, development, construction and operations processes. It is also why we have committed to science-based emissions reduction targets, as well as set goals for water and waste reduction. More details can be found in the Environmental section of our latest ESG Report

Science Based Targets

We have set ambitious science-based Scope 1, 2 and 3 emissions reduction targets. We strive to reduce our carbon emissions, and achieve our Science Based Targets (SBTs), through activities such as our onsite solar and energy efficiency programs, while increasingly sourcing green electricity for our communities.

Climate & Certifications

Our AvalonBay Building Certified and Climate Resiliency Policy ensures we are integrating climate risk assessment and environmental certification into the business. This policy requires all new developments and acquisitions to complete a 3rd party resiliency risk assessment that evaluates the climate risk associated with a particular location across fourteen different categories. The policy also requires that we pursue environmental certification on all new mid- and high-rise communities and evaluate existing environmental certification during underwriting for acquisition communities. This policy has resulted in 61 communities receiving one or more environmental certifications to-date — while an additional 21 are currently pursuing certification.

Governance & Policies

AvalonBay understands the importance of continually advancing our ESG practices through a set of principles and policies that guide our actions and commitments. As such, we have developed the following to reflect the importance of environmental sustainability throughout our operations and with our various stakeholders.

Social

Creating a better way to live would not be possible without people — those who work with us, live with us and those who create the diverse and vibrant communities around us. Details about our community investment and Inclusion & Diversity progress, activities and programs be found below and in the Social section of our latest ESG Report

Community Investment

Building Strong Communities, our community investment and engagement program, demonstrates our core value of a spirit of caring and focuses us on issues relevant to our business: disaster relief and community preparedness, affordable housing, and support for at-risk populations. 2021 marked the 10th anniversary of our Spirit of Caring Month and collectively over the past decade we have donated over $10.1 million cash and $3.2 million in-kind to charitable organizations, volunteered more than 57,000 hours and helped facilitate the donation of over 7,500 pints of blood to our national partner, the American Red Cross.

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Inclusion & Diversity

Our vision at AvalonBay is to foster an environment where all associates feel welcome, are supported with opportunities to thrive, and are represented by our leadership team. In addition to serving as a cross-functional, organization-wide priority, AvalonBay’s I&D strategy includes four focus areas: Create Personal Awareness, Foster a Culture of Inclusion, Hold Ourselves Accountable and Contribute to I&D in Our Communities. AvalonBay currently has seven Associate Resource Groups, which provide support, networking, mentoring, development and outreach opportunities. These include: Asian Pacific Associate Connection (APAX), Associate Rainbow Coalition (ARC), Black Associate Coalition (BAC), Latinx Employees of AvalonBay for Diversity (LEAD), Parents and Caregivers of AvalonBay (PAC), Veterans Support Outreach Committee (VSOC) and Women’s Leadership Network (WLN).

Governance

Our core purpose is creating a better way to live. Achieving this purpose means being aware of the full impact of our activities and managing our business with an eye on the future. It means ensuring we prioritize the well-being of all of our stakeholders and maintaining comprehensive corporate governance practices. We have established and maintain a corporate culture that requires integrity and reflects the highest ethical values. And we dedicate significant resources to ensure compliance with our code of business conduct and ethics. More details can be found in the Governance section of our latest ESG Report

Policies & Principles

Investors

To increase transparency for investors on ESG issues, we publish an annual ESG report, and respond to the Global Real Estate Sustainability Benchmark (GRESB) and CDP with a transparent accounting of our environmental performance. Each year we have our environmental data third-party verified and we also align with the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD). We periodically meet with investors to provide transparency on our efforts and discuss relevant ESG metrics and strategy.

In 2021, AvalonBay issued our inaugural green bond offerings, the first for $700M and the second for $400M, for a combined issuance of $1.1B. Our Green Bond Framework serves to govern the use of this funding to ensure alignment with the Green Bond Principles. All proceeds will be used in accordance with our eligible project criteria in pursuit of achieving a cleaner and healthier future.

Reporting and Recognition

We measure and monitor our ESG initiatives and report transparently on our progress through our annual ESG Report. In addition to this report, we also participate in and provide reporting through the Global Real Estate Sustainability Benchmark (GRESB) and CDP. A number of ESG ratings and organizations continue to evaluate and rank AvalonBay as an ESG leader in our sector and in the US. We are proud of this and are driven by a strong belief that our actions, both big and small, contribute to creating a better way to live — for all people, the places where we live and work and the planet at large.

Reporting

We measure and monitor our ESG initiatives and report transparently on our progress through our annual ESG Report. We invite you to read our latest Report to learn more about how we plan, develop and manage our social and environmental sustainability progress, including our goals for 2021 and beyond. You can also find additional information regarding our environmental performance in our latest CDP Report.

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Recognition

In 2021, we were once again named a Residential Sector Leader by the Global Real Estate Sustainability Benchmark (GRESB). We also made the CDP “A List” for the first time for our carbon emission disclosure and reduction practices, making us one of four REITs, and the only apartment company, to receive an A grade on their rating scale. And AvalonBay was once again the proud recipient of the NAREIT Residential Leader in the Light Award. This award is the highest level of ESG achievement for all REITs and real-estate companies, acknowledging accomplishments in the areas of social and environmental sustainability. We were proud to be named, for the third year in a row, to Newsweek’s list of America’s Most Responsible Companies, rising to #90 out of 499. For the fifth consecutive year, we were honored to be named to 3BL Media’s 100 Best Corporate Citizens List, placing #92 overall and #8 in the “Employees” pillar. In addition, many ESG rating organizations continue to rank us as a leader in ESG as compared to other U.S. corporations and REITs. These include Euronext, VigeoEIRIS, ISS-oekom and FTSE4Good.

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