To download the complete 2018 Sustainability Report, please click here.

To download the complete 2019 GRESB Benchmark Report, please click here.

To download the June 30, 2019 BXP Green Bond Allocation Report, please click here.

 

Doug & Owen

 

Letter to our Stakeholders

 

Throughout 2018 we remained focused on sustainable activities that benefit our tenants, shareholders, employees and communities we serve. We continued to execute our sustainability strategy across our five regions by implementing policies, programs and projects that advance our commitment to sustainable development and operations. Through the execution of our business strategy, we believe we can make positive environmental and social impacts that support the prosperity of our company and the vital centers of research, commerce and civic life where we operate.

 

 

2018 was another strong year for Boston Properties (BXP) as we made progress and maintained our leadership on environmental, social and governance (ESG) issues.

  • For the seventh straight year, we ranked in the top quadrant of the Global Real Estate Sustainability Benchmark (GRESB) assessment, earning our seventh “Green Star” recognition and the highest GRESB 5-star Rating;
  • We placed 63rd out of 874 companies internationally — among the top 8% of worldwide participants in the 2018 GRESB assessment;
  • We received the highest overall ISS Governance QualityScore among our direct office REIT peers and tied for the 5th highest score among a pool of 16 REIT benchmarking peers;
  • We issued $1 billion of green bonds in our inaugural green bond offering. The bond was 2.5 times oversubscribed and attracted a pool of green investors that represented 23% of the total issuance. The proceeds have been used to fund eligible green projects;
  • We reduced like-for-like energy and water use 24% and 25% respectively below a 2008 base year, avoiding approximately $24 million in annual recurring operating costs;
  • We were selected as a 2019 ENERGY STAR Partner of the Year winner by the U.S. Environmental Protection Agency;
  • We joined the Science Based Targets Initiative, committing to the alignment of our company-wide greenhouse gas reduction activity meets or exceeds the “science based target” criteria;
  • We completed the largest indoor lithium-ion energy storage system of its type in the United States at Colorado Center to manage peak demand and support grid resiliency;
  • We partnered with a leading healthy building certification system, Fitwel, becoming a Fitwel Champion, using the Fitwel system to support healthy building design and operational practices across 6 million square feet of our portfolio;
  • We added several new family friendly programs to further assist employees balance work and personal life;
  • We increased our property area certified under the U.S. Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) certification program to 22 million square feet, including the addition of the LEED Gold Times Square Tower in New York City and the LEED Platinum Salesforce Tower in San Francisco. Salesforce Tower earned more points under the LEED Version 3 rating system than any other project in the San Francisco Bay Area and is the highest rated green skyscraper in the State of California;
  • We maintained our ongoing commitment to volunteerism and philanthropy by donating over 3,000 service hours to more than 300 community events and charitable activities;

We will continue to implement policies, programs and projects that complement sustainable development and operations. Our experience demonstrates that through our activities as real estate owners, developers and managers, we can contribute to environmental solutions as a positive force while improving our financial performance and becoming a stronger, more purposeful organization in the process.

 

Owen Signature       Doug Signature

 Owen D. Thomas, CEO                                                  Douglas T. Linde, President

 Boston Properties                                                           Boston Properties

 

Corporate Overview

Boston Properties (BXP), a self-administered and self-managed real estate investment trust (REIT), is one of the largest owners, managers and developers of Class A office properties in the United States, with a significant presence in five markets: Boston, Los Angeles, New York, San Francisco and Washington, DC.

The Company is listed on the New York Stock Exchange under the symbol “BXP.” As of December 31, 2018, BXP reported total revenue of $2.7 billion and net income attributable to Boston Properties, Inc. of $583 million. BXP’s consolidated market capitalization was $30.6 billion, including $19.6 billion in equity value and $11.0 billion of consolidated debt. Additional financial information can be found in the Company’s most recent 10-K filing.

 

Sustainability Strategy

As one of the largest owners and developers of office properties in the United States, Boston Properties actively works to promote our growth and operations in a sustainable and responsible manner across our five regions. Our sustainability strategy is broadly focused on the economic, social and environmental aspects of our activities, which include the design and construction of our new developments and the operation of our existing buildings.

We believe that by understanding the social and environmental impacts of our business, we are better able to protect asset value, reduce risk and advance initiatives that result in positive social and environmental outcomes. This report highlights the execution of our sustainability strategy and is organized into three themes: Environmental Impact, Social Impact and Governance.

Through our efforts, we demonstrate that operating and developing commercial real estate can be conducted with conscious regard for the environment and wider society while mutually benefiting our tenants, investors, employees, partners and the communities we serve.

To download the complete 2018 Sustainability Report, please click here. 

 

Reporting Methodology

The intent of this report is to present information related to sustainability in a format that is understandable and accessible to our stakeholders. As the interest in environmental, social and governance (ESG) performance indicators has increased, we have implemented data and environmental management systems that enable Boston Properties to report high-quality non-financial data.

The report is focused on the performance of our occupied and actively managed office building portfolio in our Boston, Los Angeles, New York, San Francisco and Washington, DC regions. Occupied office buildings are buildings with no more than 50% vacancy. Actively managed buildings are buildings where we have operational control of building system performance and investment decisions. By concentrating on similarly situated buildings, we are able to meaningfully benchmark performance and measure the efficacy of our sustainability measures. Unless otherwise noted, the data presented in this report relate to these types of office buildings. Over time we will continue to assess available data and determine when to expand this report to address other property types and information.

The data contained within this report represents the like-for-like portfolio that has remained the same year-over-year. As of the end of 2018, BXP’s 97 occupied and actively managed office buildings totaling 39.2 million gross square feet (SF) accounted for 81% of the company’s total in-service portfolio by area. Key performance indicator disclosures have been aligned with Boston Properties’ Global Real Estate Sustainability Benchmark (GRESB®) assessment.

 

Stakeholder Engagement 

We develop our understanding of the views and priorities of our stakeholders by engaging our supply chain, tenants, employees, communities, investors and partners throughout the lifecycle of our activities. BXP identifies and seeks to understand the groups and organizations that may affect or be affected by a decision, activity, or outcome of a project. During stakeholder engagement processes, we work closely with our tenants, vendors and service providers to gather knowledge, plan and implement design solutions, technologies and programs that drive key performance indicator improvement. We regularly participate in public forums during the development process to seek community input and apply green building standards to manage our supply chain. In our communities, we actively participate in business improvement districts (BIDs), associations, nonprofits and other civic engagement activities intended to strengthen public-private partnerships and advance sustainability at the neighborhood scale.

We are directly engaged with a number of third-party suppliers for the procurement of materials and services required for the construction of new development projects and the ongoing operation of our existing buildings. BXP requires all of its service providers and contractors to comply with applicable laws relating to payment of wages and benefits, worker health and safety, interacting with labor organizations and other workplace laws, such as non-discrimination, proper classification of employees and maintenance of insurance. Respecting the use of unionized labor, BXP is committed to a position of neutrality, guided by the interests of its partners, investors, clients and tenants.

Green Leasing

We strive to limit our energy and natural resource consumption through active management of our properties and leasing activity. In order to align our sustainability efforts with our tenants, our Master Lease form includes: cost recovery for capital expenditures made to reduce operating expenses; cost recovery for certifications (including LEED and ENERGY STAR); sub-metering of high intensity tenant equipment; and required tenant energy disclosure (benchmarking). Our internal legal counsel and leasing team actively negotiate our leases with the intent of preserving green lease clauses without alterations or exceptions.

 

 Materiality 

Boston Properties has conducted a materiality assessment to identify the significant economic, social and environmental issues that impact our business and are important to our stakeholders. In defining material aspects, BXP has evaluated the main sustainability interests, topics and indicators raised by stakeholders. The results of the materiality assessment have been used to establish and confirm sustainability-related performance indicators for our organization, prioritize resources, and to determine the contents of this report. This report prioritizes the following material aspects: economic performance; resource use; energy; greenhouse gas emissions; water; waste; customer satisfaction; public transportation; climate preparedness and resilience; green building; local community impact; and the health, safety and wellness of our customers and employees.

The environmental impact of our in-service portfolio is heavily dependent on the behavior of our tenants. Effective engagement with our tenants is necessary for the successful execution of our sustainability strategy. We have integrated sustainability into property management practices, regional annual goals, leasing and construction documents, tenant improvement guidelines and our routine meetings with existing and prospective tenants. In addition to tenant meetings, we survey regularly to collect tenant satisfaction. We believe that by developing green buildings we maximize the likelihood of sustainable performance and that through effective stakeholder engagement we can align efforts towards positive economic, social and environmental outcomes.

The company continues to support the advancement of the industry on sustainability issues by sharing knowledge and learning from our peers. BXP actively participates in the following industry groups and organizations:

  • National Association of Real Estate Investment Trusts® (Nareit®);
  • Real Estate Roundtable Sustainability Policy Advisory Committee;
  • United States Green Building Council® (USGBC®);
  • Global Real Estate Sustainability Benchmark (GRESB);
  • Building Owners and Manager Association (BOMA); and
  • Urban Land Institute (ULI)

 

Recognition

Recognition

 

ESG Leadership

Boston Properties has been recognized as an international leader in environmental, social and governance management and performance indicators. For the seventh straight year, BXP ranked in the top quadrant of the Global Real Estate Sustainability Benchmark (GRESB) assessment, earning our seventh “Green Star” and the highest GRESB 5-star rating. The company continues to increase ESG transparency, and the implementation of policies, programs and projects that complement sustainable development and operations.

2018 GRESB Results

 

Goals & Progress

Our sustainability goals establish reduction targets for energy, greenhouse gas emissions, water consumption and waste. In 2016, we achieved our first round of energy, emissions and water goals three years early. By resetting company-wide goals, we raise stakeholder awareness and endeavor to drive continuous year-over-year, like-for-like key performance indicator improvement. We have adopted goals with the following specific time frames, metrics and targets below a 2008 baseline:

 

Goals

 

Sustainable Development Goals

We believe that our efforts can contribute to resolving the key issues that the global community faces. Our sustainability policies, practices and projects are aligned with the direction set by the United Nations Sustainable Development Goals (SDGs). The following table outlines our alignment with the UN SDG framework.

Sustainable Development Goals

 

Key Performance Indicators

Energy Performance

Water Performance

Waste Performance

Emissions Performance

Certifications

 

Green Building

BXP is a corporate member of the U.S. Green Building Council® (USGBC) and has a long history of owning, developing, and operating properties that are certified under USGBC’s Leadership in Energy and Environmental Design™ (LEED®) rating system. The LEED Green Building Rating System is a voluntary, consensus-based national standard of design guidelines for high performance and sustainable buildings. Since 2008, BXP has certified over 21 million square feet of our current in-service portfolio, of which over 95% is certified at the highest Gold and Platinum levels.

LEED for Building Design and Construction

We target LEED Silver certification or better on all developments. Between 2008 and 2018, we completed 18 LEED certified new office development or redevelopment projects that we currently own and manage, totaling 6.7 million square feet. As of the end of 2018, 4.5 million square feet of office new construction is pursuing LEED certification.

LEED for Existing Buildings (LEED-EB) 

Green building certification of our existing properties is an important component of our strategy to achieve operational sustainability. BXP continues to actively pursue LEED-EB certification across our portfolio and has a company-wide Sustainability Committee dedicated to sharing best practices. Currently, we have certified 20 of our actively managed properties under the LEED for Existing Buildings program totaling 15.3 million square feet.

Building Materials

As part of our commitment to developing LEED projects, sustainability criteria informs the building materials selection process. These criteria, aligned with the LEED rating system, support sustainable construction material procurement, green building delivery, conservation of natural resources, waste reduction and occupant health. Project teams review vendor disclosures and aim to cost-effectively procure building materials that are:

  • Extracted, harvested, recovered, and manufactured within 500 miles of the project site;
  • Composed of the maximum possible recycled content;
  • Third-party validated sustainably harvested wood products; and
  • Non-toxic and support healthy, productive indoor environments containing no volatile organic compounds (VOCs), urea-formaldehyde, and/or other chemicals of concern.

Green Building Education

Maintaining and strengthening Boston Properties’ internal green design, construction, operations capabilities and knowledge base is a key aspect of the Company’s overall environmental strategy. We have made a concerted effort to train and accredit our managers and staff in green design, construction and operations. 92 employees across our development, construction and property management departments are LEED Accredited Professionals, Green Associates, or Green Professionals and 77 building engineers have received Green Professional (GPRO) Operations & Maintenance building skills training, a program that is endorsed by the USGBC. Our trained property management professionals are equipped to effectively engage tenants to promote more sustainable tenant behavior and discover opportunities.

 

Energy

Energy Management

Managing energy consumption and implementing energy conservation measures aligns with our objective to provide the greatest benefit to our stakeholders. We continually measure and manage the usage of electricity, gas and steam using Energy Intelligence Software (EIS), EPA’s ENERGY STAR Portfolio Manager® and energy audits. Our Regional Managers and Heads of Property Management have annual performance goals with energy, emissions, water and waste targets. These goals are formulated at the asset level and roll up to regional and company-wide targets.

Energy Intelligence Software

Since 2011, Boston Properties has strategically partnered with EnerNOC to deploy EIS and real-time energy monitoring infrastructure, including 250 commodity meters at 98 sites. As active managers, BXP leverages EIS, interval data, and increased energy use awareness to optimize facility operations and to control utility costs by adjusting Building Management System (BMS) programming, verifying nighttime shutdowns/setbacks, holiday scheduling, peak load shedding, optimizing equipment runtime and executing strategic demand response events. Across the portfolio, 229 active EIS users log in an average of 101 times per month. Using interval data to optimize energy performance, BXP implemented over 13 million kWh in automatically generated energy savings measures in 2017 and 2018, resulting in approximately $915,000 in savings. Interval data is also used to execute demand response events. Demand response program enrollments have generated demand response payments of $4 million over the last eight years.

Energy Conservation Measures (ECMs)

We are committed to identifying and implementing ECMs and capital improvements that reduce energy use. ECMs are reviewed and the projects that meet certain investment criteria are implemented. Since 2015, energy projects have cut annual use by over 50 million kWh, saving approximately $5.7 million per year. ECMs include lighting retrofits, HVAC upgrades, and the addition of building management system (BMS) programming and controls.

Lighting Improvements

Implemented measures include the relamping and replacement of fixtures with high-efficiency LEDs and fluorescent lamps and the addition of occupancy and daylighting sensors and controls. Lighting improvements conserve resources, improve energy efficiency and provide improved lighting quality that supports healthy and productive indoor environments for our tenants.

HVAC Upgrades

Implemented measures include heating, ventilation, and air conditioning improvements including boiler retrofits, compressor replacements, air handling unit replacements, the addition of variable frequency drives, installation of heat exchangers, and improved filtration on cooling towers. HVAC equipment upgrades
and replacement, central plant improvements, modernization, and reconstruction projects are helping drive energy savings, and optimize occupant comfort, health and wellness.

BMS Programming & Controls

Implemented measures include demand control ventilation, airflow stations and monitoring, occupancy sensors, and the addition of direct digital control points to building automation systems. Adjustment of ventilation rates to meet demand improves energy efficiency and air quality, particularly CO2 concentration.

Onsite Renewable Energy

In 2018, Boston Properties generated more than 1 million kWh renewably onsite. At specific sites, distributed generation technologies, like solar photovoltaics, are capable of producing energy more cost-effectively than traditional technologies. We are pursuing renewable energy projects where these utility cost discounts are evident. We are actively researching and pursuing the adoption of alternative and renewable energy technology, including energy storage, at our existing buildings and new developments. At over half of our new development projects, we are either studying or implementing alternative and renewable energy installations, including solar photovoltaics, solar thermal or cogeneration systems.

 

Emissions

Boston Properties is committed to climate action and advancing the transition to a low carbon economy. Through the development of new buildings and operations at our existing buildings, the company will continue to implement measures that reduce greenhouse gas (GHG) emissions from our operations. GHG sources include the generation of electricity and steam at offsite generation facilities and the on-site combustion of natural gas. GHG mitigation efforts include energy efficiency measure implementation at existing in-service assets, high-performance new development, onsite renewable energy, procurement of off-site renewable energy, public portfolio and asset-level GHG short and long-term reduction targets, engagement of property engineers using real-time energy consumption data, sustainability education and
tenant engagement.

The company monitors and benchmarks all primary sources of greenhouse gas emissions at the asset level in units of metric tons of carbon dioxide equivalent (MTCDE) and greenhouse gas emissions intensity (MTCDE per square foot per year). Since 2008, BXP has reduced actively managed office portfolio GHG intensity by 39% and is on track to exceed a 45% intensity reduction by 2025. The company will continue to work closely with governments, policymakers, strategic partners and our tenants to decarbonize our operating activities with the long term objective of achieving carbon neutrality. BXP has partnered with the Science Based Targets Initiative to verify that our company-wide emissions reduction target meets or exceeds the “science based target” criteria. A greenhouse gas emissions target is considered “science-based” if it is in line with the level of carbon emissions mitigation required to keep global temperature increase below 2°C compared to pre-industrial temperatures.

 

Water

We recognize the growing importance of water conservation, particularly where water scarcity has been an issue. Over the past seven years, Boston Properties has upgraded plumbing fixtures across more than one-third of our in-service portfolio and has continued to execute LEED certified new development projects that are designed to use 30 to 40% less water than code. Since 2008, BXP has reduced water use intensity (gallons/SF) by 25%.


We use ENERGY STAR Portfolio Manager to monitor and benchmark water usage in buildings where we have access to water meter data. We prioritize the oldest, least efficient fixtures for improvement, and focus our efforts on some of our largest properties to ensure that we are maximizing our conservation efforts. Implemented improvements include smart controllers, low flow sprinkler heads, rain sensors, cooling tower retrofits and infrastructure improvements.

 

Waste

In partnership with our vendors and tenants, Boston Properties has implemented best waste management practices, including single stream recycling, composting, and e-waste programs for tenant solid waste in all of our regions. As a result, 58% of office waste by weight is recycled or composted across our portfolio, which is a 22% increase since 2008. We also work closely with our vendors and tenants to promote responsible waste management practices, including haul trip optimization and composting at cafés and restaurants.

Single-Stream Recycling

We have worked across our portfolio with our tenants and waste haulers to transition to single-stream recycling programs. Single-stream simplifies recycling. Commingled materials are collected in one container and sorted offsite at a material recovery facility. The advantages of single-stream recycling include increased customer participation and potentially higher waste diversion rates.

Composting

Our integrated composting program diverts roughly 2,600 tons of organic material from landfills. We work with our tenants to ensure that they have signage and receptacles, and our buildings have designated central compost bins with frequently scheduled pickup. Composting produces valuable nutrient-rich soil and reduces the frequency of waste hauls required, saving an estimated $180,000 in hauling fees annually.

 

Transportation

The majority of our property square footage is located in central business districts with ready access to public transportation. Within 0.25 miles of our buildings, the customers and communities we serve have access to over 3,000 alternatives to non-single occupancy vehicle (SOV) transportation, including bike spaces, bike sharing stations, bus stops, subway stations, commuter rail stations, car share spaces, hybrid spaces, van pool spaces and electric car charging stations.

Boston Properties promotes the use of mass transit by its tenants through on-site events for tenant employees, newsletters, and one-on-one meetings with tenant contacts. Our employees support alternative transportation programs by working with local transportation management authorities and supporting the use of car pooling. We encourage our employees to use alternatives to single occupancy vehicles by subsidizing the purchase of transit passes and enabling employees to fund many of their additional commuting expenses, such as vanpools and parking at public transportation stations, by using pre-tax dollars through our Commuter Benefits program. 

Electric Vehicle Charging Stations

Infrastructure for EVs is being installed across our portfolio as more customers perceive the ability to charge on the go as an amenity. With over 150 EV charging stations installed to date, BXP is enabling mobility and the proliferation of sustainable transportation.

Bicycle Storage

The provision of the bicycle storage at our properties is increasingly important in submarkets where bicycle commuting is on the rise. We work with our tenants to provide adequate safe, secure and convenient storage for bicycles. The bike valet service at 399 Park Avenue in New York is an example of efforts the company is making to accommodate cycling commuters who work in our buildings.

Transportation Table

 

Climate Resiliency

The event-driven (acute) and longer-term (chronic) physical risks resulting from climate change could have a material adverse effect on our properties, operations and business. To the extent climate change causes changes in weather patterns, our US coastal markets of Boston, New York, San Francisco, Washington, DC and Los Angeles could experience increasingly severe storms, extreme temperatures, rising sea levels and/or drought. Climate change may have indirect effects on our business. These effects may include increasing the cost of (or making unavailable) property insurance on terms we find acceptable, increasing the cost of energy and water, increasing the cost of snow removal and increased business continuity risk at our properties. There can be no assurance that climate change will not have a material adverse effect on our properties, operations or business. Over time, these conditions could result in financial implications, such as direct damage to properties, supply chain disruption, declining demand for office space in our buildings or our inability to operate the buildings at all.

Many stakeholders across the organization support climate preparedness and resiliency efforts, including our Risk Management, Development, Construction, Property Management departments, external consultants and executive leadership. BXP develops and operates a geographically diverse portfolio. Individual assets have unique risk profiles and insurance requirements. Properties are also at different stages of their lifecycle. Properties may be in service and not up for intensive capital investment, while other properties are under development. Resiliency activities are largely dependent on the unique attributes, physical location and risk profile of the property itself.

Through the processes of acquisition, development and operations of our in-service portfolio, our experienced real estate professionals are identifying risks, including business continuity risks and loss exposure related to severe storms and flooding. These efforts begin with training and implementation of Emergency Response Plans at the property-level.

At the portfolio level, we carry all risk property insurance on our properties, including those under development, for natural catastrophes such as flood, fire, earthquake and wind events.

As a long term owner and active manager of real estate assets in operation and under development, BXP will demonstrate adaptive capacity by continuing to proactively implement measures and planning and decision-making processes to protect our investments by improving resilience. We are preparing for long term climate risk by considering climate change scenarios. Across our portfolio, we will continue to assess climate change vulnerabilities by modeling and anticipating future climate scenarios and sea level rise.

We will continue to implement practical, cost-effective resiliency measures and infrastructure enhancements, including:

  • Business Continuity Plans
  • Emergency Response and Life Safety Plans
  • Emergency Evacuation Planning, Procedures and Drills
  • Tenant Engagement and Coordination
  • Life Safety Analysis
  • Elevation of vault, switchgear and critical equipment during new development
  • Waterproofing of subgrade infrastructure
  • Floodable first floors
  • Temporary flood barriers
  • Backup generation, emergency lighting and fire pumps
  • Onsite energy resources and distributed generation, storage and solar photovoltaic systems

Climate-related opportunities will vary depending on the region, market, and industry in which an organization operates. Opportunities include resource efficiency and resulting operating cost reductions and/or escalation management, increased probability of maintaining business continuity through shocks and stressors, acceleration of distributed generation and storage systems, the development of new high-performance resilient buildings and improved emergency preparedness at our properties. The adoption of resiliency practices may become more of a competitive advantage as there is increasing consumer preference for resiliency.

 

Health & Wellness 

Healthy Buildings

As developers and managers of buildings, we are keenly aware of the influence of buildings on human health. In 2018 we announced a partnership with a leading healthy building certification system, Fitwel, to support healthy building design and operational practices across 6 million square feet of our portfolio. The aim is to ground healthy building claims in the science by quantifying the benefits of superior air quality, water purity and access, building material composition, indoor environments and wellness amenities. BXP is a “Fitwel Champion” and has five Fitwel Ambassadors at the Company.

Indoor Environmental Quality

Thermal comfort and air quality are fundamental to healthy and productive workplaces. BXP assures thermal comfort by continuously monitoring space temperature set points across the portfolio with advanced building management systems. Air quality is routinely and proactively tested for volatile organic compounds (VOCs), mold and carbon dioxide concentration. We understand that the creation of great space requires careful consideration of the lives inside our buildings. We strive to create these great places by incorporating principles like biophilic design and developing supporting restaurant, retail and service amenities that nourish and delight our customers.

Green Cleaning

All regions have formalized a Green Cleaning Policy to minimize the impact of cleaning products on the environment. Aspects of this policy include using Green Seal® certified cleaning products, High-Efficiency Particulate Air (HEPA) vacuums, dry cleaning for carpets and restroom supply products made from recycled materials. Our Green Cleaning program benefits both the janitorial workers within our buildings and our tenants because the cleaning methods and products used do not include toxic chemicals that can cause respiratory and dermatological problems. Indoor air quality has also improved as a result of the use of HEPA vacuums. The cleanliness of our properties is maintained by over 1,000 janitors and porters who are trained in these green practices.

 

Our Employees

Our employees are what sets Boston Properties apart. Our operational and financial performance depends on their talents, energy, experience and well-being. Our continued success is attributable to having healthy and productive employees. BXP’s employee benefit programs are designed to meet the needs of our diverse workforce and support our employees and their families by offering comprehensive programs that provide flexibility and choice in coverage.

  • Subsidized employee gym passes
  • Work-Life Balance Employee Assistance Program, services include:
    • Childcare and/or eldercare referrals
    • Personal relationship information (Marriage/Family Issues)
    • Health Information
    • Legal consultations and licensed attorneys
    • Financial planning assistance
    • Stress management
    • Mental illness
    • Career development
    • Alcohol/Drug dependency
    • Wellness and Self-Help
  • Subsidized Commuter benefit with WageWorks encourages public and alternative transportation
  • Annual Flu Shot Program
  • Automatic External Defibrillators
  • Value Added Programs provided by our medical benefits provider, services include:
    • Telehealth – see licensed doctors using live video visits on smart devices.
    • Healthy Baby – Ovia Fertility App and Ovia Pregnancy App
    • Goal Getter – track exercising activity and/or calories to reach fitness goals
    • Healthy Discount Programs – Fitness Reimbursement and Weight Loss Reimbursement
    • Mail order pharmacy

The Boston Properties benefits program is designed to offer valuable resources to protect and enhance financial security and to help balance work and personal life. Some of the benefits that we offer our employees include health, dental and vision insurance, a 401(k) plan with a generous matching contribution, an employee stock purchase plan, health care and dependent care reimbursement accounts, income protection through our sick pay, salary continuation and long term
disability policies, a scholarship program for the children of employees, a commuter subsidy to support the use of public transportation, tuition reimbursement, and paid vacation, holiday and personal days to balance work and personal life.

At BXP, we believe that the success of our business is tied to the quality of our staff and we strive to maintain a corporate environment without losing the entrepreneurial spirit on which we were founded nearly 50 years ago. By providing a quality workplace and comprehensive benefit programs, we recognize the commitment of our employees to bring their talent, energy and experience to BXP, which allows us to lead the industry in every facet of our operations. Our continued success is attributable to their expertise and dedication. The success of our efforts in the workplace is demonstrated by the long tenure of our employees and union workers, 45% of whom have worked at BXP for more than ten years.

Within the scope of this report, there is no substantial portion of our work that is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.

We are not reporting on the work performed by third-party vendors and contractors in the construction and operation of our buildings. We have had no significant variations in employment numbers. As of the end of 2018, BXP had 15 part-time employees; all other 631 employees work full-time. 13% of our total employees are covered by collective bargaining agreements.

 

Diversity & Inclusion

It has been and will continue to be the policy of Boston Properties to recruit, upgrade, train and promote in all job titles without regard to race, color, gender, gender identity or expression, sexual orientation, religion, age, national origin, disability, marital status, protected veteran status, genetic information or any other legally protected characteristic.

In addition, BXP complies with applicable state and local laws prohibiting discrimination in employment in each jurisdiction in which it maintains facilities. Managers base all employment decisions on the principles of Equal Employment Opportunity, including, but not limited to decisions concerning recruiting, hiring, upgrading and downgrading, discharge, training, promotions (in all job titles), compensation, benefits, layoffs, returns from layoffs, and social and recreational programs.

By this policy, BXP wishes to ensure that all employees have the opportunity to make their maximum contribution to BXP and to their own career goals. The intention is to provide an equal employment opportunity program that will simultaneously serve the requirements of society, the law, sound business practices and individual dignity.

Notable Highlights

Diversity

 

Performance & Career Development

All of our full-time employees receive an annual performance review. These evaluations are done in the same time frame as the review of annual incentive compensation. One of the general factors on the performance appraisal form requires the supervisor to address whether the employee has a fundamental understanding of our business and a demonstrated commitment to company policies.

 

Training & Education

In 2018, 91% of BXP employees received professional training in accordance with the following table.

Training 

 

Employee Absentee & Lost Day Rates

The total operating hours for BXP in 2018 was 1,450,105.4. The absentee and lost day rates are as follows.

Absentee and Lost Day

 

Human Rights

Boston Properties is committed to embedding its responsibility to respect human rights. Because we encourage all persons to be treated with dignity and respect, we have adopted the following Human Rights Policy, which aligns with the United Nations’ Universal Declaration of Human Rights. BXP strives to respect and promote human rights within all aspects of the company. Its policies and directives are integrated within the company’s literature, such as employee handbooks and code of conduct and compliance trainings. It includes the following components:

  • A respect for the rights of all persons impacted, both directly and indirectly, by our business.
  • Compliance with national laws and regulations regarding the protection of human rights.
  • Promote and prioritize diversity and inclusivity.
  • Provide safe and healthy workplaces, compliant with all applicable health and safety laws, regulation and internal directives.
  • Sustain and safeguard spaces free of violence, harassment, intimidation and other unsafe or disruptive conditions.
  • Re-assess the needs of the Policy as the company grows appropriate to its size and circumstances.
  • Carrying out human rights due diligence of adverse human rights impacts.

 

Community Involvement

We are a leading property owner and developer, our local teams are very engaged in their local communities, not only seeking entitlements but also determining how our projects can enhance neighborhood amenities and quality of life. Our community involvement was strengthened in 2018 by our ongoing commitment to volunteerism and philanthropy. Throughout the year, BXP’s 646 employees donated over 3,000 service hours to more than 300 community events and charitable activities.

United Way

United Way of Massachusetts Bay and Merrimack Valley

During six Community Care Days, 66 BXP employees worked a total of 483 hours. In addition to the Community Care Days, the company raised $105,000 through employee contributions, a donation and proceeds from the Casino Night fundraiser.

Winter Wonderland

Winter Wonderland at Embarcadero Center

BXP partnered with the San Francisco Police Department, the San Francisco Police Activities League and CBF Electric to host the 3rd annual Winter Wonderland at the Holiday Ice Rink at Embarcadero Center. Captains from ten SFPD stations brought kids ages 8-15 to enjoy ice skating, play life size jenga, make arts & crafts, jump in a bouncy house, and take fun photo booth pictures with Santa Claus. About 200 kids attended this event which was a great way to start their Winter Break.

31 Nights of Light

31 Nights of Light

Since 2009, 31 Nights of light has grown as an iconic event in the Boston-area nonprofit community. Every night of December, the top of Prudential Center shined a different
color in support of that night’s nonprofit partner and their important work. The honored organizations host events in Center Court in conjunction with their lighting. Over the
course of 10 years, 31 Nights of Light has attracted positive public attention to a multitude of important causes.

Reston Holiday Parade

Reston Holiday Parade

This year marked the 28th annual Reston Holiday Parade. The one-of-a-kind, one-hour, half-mile parade along Market Street also welcomes the arrival of Santa and Mrs. Claus in
a horse-drawn carriage. Since 1991, rain or shine, the parade has been an annual tradition on the day after Thanksgiving.

Salvadori Charrette

Salvadori Annual Student Design Charrette

In New York, BXP sponsored the Salvadori Center Charrette, an all-day design challenge that brings together 100 students from schools all over New York City. Each year the students are given a new challenge related to the built environment and asked to find a solution using only the specific parameters and materials provided. 

In addition to supporting charities and community groups across our regions, we are committed to enhancing our local, national and global communities through education and outreach, and volunteer our time with industry groups, such as: BOMA; local chambers of commerce; local tourism organizations and Nareit; on government committees including regional and city sustainability efforts and ‘green’ ribbon task forces; building innovation districts and sustainable neighborhood planning; on technical advisory teams and local engineering unions; and in-house to our neighborhoods by providing building tours, offering educational programs about our buildings and operations and hosting annual sustainability and healthy-living events.

Bringing the Science to the Sidewalk

In 2018, BXP commissioned the UNLESS art installation by Stephanie Cardon at the Prudential Center in Boston. Curated and produced by Now + There, the 3,400 square foot floor-to-ceiling piece was  composed of repurposed debris netting from construction sites around the city. The public art installation was focused on bringing  awareness to climate justice and sustainability, while also promoting social equity. The 30 individuals who worked on the project were from two Puerto Rican communities, one which was affected by Hurricane Maria and Hurricane Harvey, and a local group that has revived  Boston’s South End through the creation of affordable housing, an arts center, health centers and a preschool. As a symbol of the changing climate, the neon orange hue was used to represent building emissions, as it is often used both in construction and on warning signs, and the blue hue represented the Earth encapsulated by the effects of climate change. The UNLESS art installation was meant to inspire occupants and visitors to make positive change.

UNLESS Art Installation  UNLESS Art Installation

 

Leadership & Oversight

BXP is managed under the direction of our Board of Directors, which is currently comprised of eleven highly accomplished men and women who are dedicated to serving the best interests of our stakeholders. The Board of Directors supports efforts to implement our sustainability strategy through our corporate sustainability program. Owen Thomas, our Chief Executive Officer, is the senior decision maker on issues related to sustainability. Additionally, the Company’s Chief Financial Officer and Sustainability Director work together to oversee Boston Properties’ Sustainability Committee, which includes representatives from all of our regions and many departments. This Committee helps inform the direction of our sustainability program, which is formally reviewed annually with our Board of Directors. The Sustainability Committee has the following goals:

  • Identify and execute new strategies for promoting sustainability in new construction, existing buildings and corporate operations;
  • Enhance the Company's processes for collecting sustainability performance information;
  • Promote communication across the Company and share "best practices;"
  • Assess the cost effectiveness of small and large scale projects and programs; and
  • Follow new regulatory requirements and cooperate with the regulators to make new requirements meaningful.

To support the achievement of these overarching goals, our Regional Managers and Regional Heads of Property Management are accountable in their annual quantifiable performance goals for the success of their efforts to measure and improve our efficiency as measured on this system. These goals are formulated starting with specific performance at the incremental building level, and then consolidated to establish regional goals. Sustainability targets and objectives are also communicated to senior management in weekly and monthly meetings, while progress is monitored through weekly and monthly reports. With a wide range of department representatives in attendance, sustainability objectives are effectively communicated to the Board, senior management and throughout the Company. 

 

Ethics & Integrity

For more than four decades, Boston Properties and its employees have maintained the highest standards of integrity and ethics. We take pride in our traditions of responsibility and accountability. We also believe that transparent disclosure of our corporate governance policies is fundamentally important to maintaining our well-established reputation and preserving the trust of our investors. We believe this sets a “tone at the top” for good governance and includes the appropriate checks and balances that a formalized system of governance should have.

BXP has a strong commitment to minimizing our exposure to bribery, corruption and conflicts of interest. We have a set of strict rules and regulations, found in our Code of Business Conduct and Ethics, which is publicly available on the Company’s website. Across the Company, every employee receives online training regarding their obligations under the Code every two years. Employees who deal specifically with the government receive in-person training regarding the requirements of the Code as it relates to the Federal Government every two years.

Additionally, all employees must certify in writing at the time they are hired that they will abide by the Code, and each employee must provide a re-certification every time they are trained. The Company has established a Policy on Political Spending, publicly posted on our website, which requires the prior approval of our General Counsel in consultation with our Chief Executive Officer and President of any political contributions made by the Company. BXP requires employees to report any suspected violations of the Code, including using the EthicsPointTM Reporting System. Through EthicsPoint, any employee is able to anonymously report any suspected or observed violations of the Code 24 hours per day, 365 days per year, either online or via telephone. In addition, BXP includes a provision highlighting the requirements of our Code in vendor contracts, including how to file a complaint on our hotline if they become aware of any inappropriate activity. We remain committed to adhering to these policies and principles and are confident that our employees will continue to conduct themselves in a manner consistent with these policies and ideals.

 

Case Studies

The Building Blocks of Efficiency

Developing an energy and water efficient office building reduces carbon emissions, cuts utility costs, increases indoor environmental quality and provides a healthier work setting for tenants, customers and visitors.

145 Broadway

Energy Storage is a Big Deal at Colorado Center

The 3.7 MWh energy storage project is representative of an energy revolution that is underway. 

Colorado Center

200 Clarendon Street, Transforming a Boston Landmark

Delivering the highest standards in environmental performance and customer experience. 

200 Clarendon Street

Salesforce Tower, A Force to be Reckoned With

A grand symbol of BXP's responsible growth and capacity to execute smart, sustainable development.

Salesforce Tower

535 Mission Street

Relentless focus on operational efficiency leads to big savings

888 Boylston, Boston's Most Sustainable Building

As Eataly, Under Armour, Tesla and others open their doors for business, we're transitioning from developing to operating a building that has been called Boston's Most Sustainable. Read the case study to learn more about why 888 Boylston Street is our greenest building.

A Golden Performance at 100 Federal Street

Boston Properties becomes an early adopter of LEED® Dynamic Plaque, a building performance scoring and monitoring platform.

Thinking on the Bright Side

Cutting edge LED lighting technology has been adopted at the Prudential Center garage, reducing operating costs and carbon emissions.

Greening an Architectural Landmark

Simple systems tweaks lead to big cost savings at Boston’s most iconic building.

Home Grown Clean Energy at Bay Colony

Bay Colony shines with the largest garage-mounted solar canopy in the Northeastern United States.

Urban Bee Keeping

Find out what all the buzz is about at Atlantic Wharf!

Weston Corporate Center Deep Water Source Cooling System

See how we took advantage of the natural resources at Weston Corporate Center to create a state of the art deep water cooling system.

Harvesting Rain at Atlantic Wharf

Harvesting rain at Atlantic Wharf has helped to save over 12.5 million gallons of water annually-that’s 19 Olympic sized swimming pools! 

701 Carnegie Center

701 Carnegie Center achieves LEED Gold Certification with careful development strategies.

Democracy Tower

High-performance glass and occupancy sensors help reduce the energy usage in this LEED CS Gold building in Reston Town Center.

 

Sustainability Reports

 2018 BXP Sustainability Report
 2017 BXP Sustainability Report  2016 BXP Sustainability Report  2015 BXP Sustainability Report  2014 BXP Sustainability Report  2013 BXP Sustainability Report

 

 

 

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