H&R Real Estate Investment Trust : 2022 Sustainability ReportDownload

2022

SUSTAINABILITY REPORT

E N V I R O N M E N T A L • S O C I A L • G O V E R N A N C E

OUR REPORT

H&R REIT's Sustainability Report highlights Environmental, Social and Governance (ESG) initiatives and accomplishments for the 2022 calendar year. It encompasses office, residential, retail, and industrial assets owned by H&R REIT during 2022, including those owned for a portion of the year.

H&R REIT has opted to report using selected Standards with a Global Reporting Initiative (GRI)-referenced claim. In addition, the report includes indicators from the standards for Sustainability Accounting Standards Board (SASB) Real Estate sub sector. Both frameworks provide us the capacity to benchmark our performance REIT-wide, ensuring transparency and continuous improvement year-over-year.

Please refer to HR-REIT.comfor relevant supplemental financial and governance related disclosures.

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2022 ANNUAL SUSTAINABILITY REPORT

Introduction	4		Environmental	9		Social	20		Governance	32
Letter from the CEO	4		Green Buildings -			Health & Safety	21		Governance Practices	33
			Design, Procurement
About H&R REIT	5		and Operations	10		Employee Engagement and		Whistleblower Policy and
						Development	22		Code of Business Conduct
Our Sustainability Journey	6		Green Financing						and Ethics	34
			Framework	11		Health, Well-Being
Our Approach to						and Safety	23
Sustainability	7		Residential Division -
Environmental/Social/			Environmental Initiatives	16		Employee Satisfaction	24
Governance	8		Utility and Emissions			Biodiversity and
			Data Coverage	17		Beehives	27		Appendix	36
			Resource Efficiency and			Diversity and Inclusion	28
			Carbon Emissions	18					Independent Practitioners'
						Community Partnerships	31		Limited
			Electronic Recycling						Assurance Report	37
			Program	19

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LETTER FROM THE CEO

We are proud to present H&R REIT's 2022 Sustainability Report.

2022 was a very important year for H&R REIT. Despite the volatility in the public markets, our teams accomplished many significant milestones while

prioritizing our strong, integrated and forward-thinking sustainability

programs. As one of Canada's largest REIT's, H&R has always viewed sustainability as our responsibility to our unitholders in terms of transparency, employees in terms of communication, engagement, collaboration and opportunity, to our tenants to provide them with healthy and positive working environments and to the greatest extent, to our

communities in which we do business.

In our 2022 Sustainability Report, we provide a reflective look on how our commitments to sustainability are manifesting in our portfolio, company and communities at large. We completed our first GRESB Real Estate Assessment submission in 2022 and launched our inauguralGreen

Financing Framework, with a second party opinion. H&R continues to embed

sustainability in every facet of our business, advancing our long term ESG strategy focused on resource reduction, the promotion of energy efficiency and engaging with tenants to support and enable ESG initiatives.

With our Strategic Repositioning Plan, we look forward to the future and our plans to continue to implement programs to reduce carbon emission, energy use, water use and waste through redevelopment and greenfield development in high growth U.S. sunbelt and gateway city residential

properties, and well-located industrial properties..

We thank you for reviewing H&R REIT's 2022 Sustainability Report and welcome your comments and feedback as we continue our ever-evolving sustainability journey.

Thomas J. Hofstedter

Chief Executive Officer

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ABOUT H&R REIT

• H&R REIT (TSX: HR.UN) is one of Canada's largest real estate investment trusts with total assets of approximately $11.4 billion as at December 31, 2022.
• H&R REIT has ownership interests in a North American portfolio of high-quality residential, office, retail, and industrial properties comprising over 28.8 million square feet.
• H&R is currently undergoing a strategic repositioning to transform into a simplified, growth-oriented company focusing on residential and industrial properties to surface significant value for unitholders.
• Since the foundation of H&R in 1996, H&R's objective is to maximize net asset value ("NAV") per Unit through ongoing active management of H&R's assets, acquisition of additional properties and the development and construction of projects.
• H&R REIT's units (HR.UN) have traded on the Toronto Stock Exchange since 1996.

Investment Properties

by Asset Type1

Office Rezoning2

8%

Office1

22%

Residential	Total Assets
$11.4 billion	Retail
38%
		17%

Industrial

15%

1. Investment properties as at December 31, 2022 excludes the Bow and 100 Wynford.
2. Represents seven investment properties which are advancing through the rezoning process for redevelopment.

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