For office REIT BXP (NYSE: BXP), the goal of raising sustainability standards across its sector means taking a leadership role and sharing project information and best practices with peers.
One example of that approach is the REIT’s participation in the U.S. Department of Energy (DOE) Better Buildings Initiative and the Better Climate Challenge. Through the program, more than 900 commercial, public, industrial, and residential organizations share proven energy efficiency strategies and inspire others to tap into the continued potential for energy efficiency and climate action.
As part of the Better Climate Challenge program, BXP demonstrated a 64% emissions intensity reduction from a 2018 base year for its actively managed portfolio. BXP exceeded a 50% reduction target by 2028 and was recognized by DOE as a goal achiever.
This collaborative approach to sustainability helped BXP earn Nareit’s 2024 Leader in the Light Award in the office category. The awards program recognizes REITs that demonstrate leadership in carrying out sustainable and socially responsible investment and operating practices, good governance, and transparency.
BXP’s cooperative mindset is driving business value, evidenced by the tenant-landlord partnership to retrofit a suburban Boston office building to be net zero, which required integration of base building design with interior improvements and commitment from both parties on the design and operations of the space. BXP received an inaugural 2024 Nareit Sustainability Impact Award in the design category for 140 Kendrick Building A, the first net zero, carbon neutral office repositioning of its scale in Massachusetts.
“We have shared publicly the project strategy and details with the belief that greater understanding of how to achieve tenant-landlord alignment and incentives demonstrated by this type of initiative will support scaling beyond showcase projects to mainstream adoption,” says Ben Myers, senior vice president for sustainability at BXP.
Leveraging sustainability leadership
In his role at BXP, Myers oversees sustainability initiatives for a portfolio that totaled 53 million square feet across 184 properties as of Sept. 30, 2024. Myers says curiosity motivates his sustainability work at the office REIT.
“I’m fascinated by advances in technology and science that promise a better quality of life for future generations. In practice, I seek opportunities to implement or improve sustainable business solutions, to drive efficiency, and cleaner energy systems,” he says.
Myers says he’s drawn inspiration from various sources, such as his engineering studies at the University of Massachusetts-Amherst — including coursework related to sustainable design and LEED certification — his postgraduate tour of environmentally-challenged China, and his previous job in the Green Building Services division of Harvard University.
“Since then, I’ve been inspired by many leaders, skeptics, and contrarian opinions,” Myers says. “Change is hard. Inspiration keeps the fire in the belly.”
That fire in the belly keeps Myers on track when it comes to further enhancing BXP’s sustainability program, which has produced a catalog of case studies and a trophy case full of honors. Aside from the Nareit awards, recent honors include being named to Time magazine’s World’s Most Sustainable Companies list for 2024. After reaching its sustainability targets for 2024, BXP will release updated energy, water, and emissions targets in conjunction with Earth Day 2025, according to Myers.
“We are going to stay the course,” he says, “and will continue to leverage sustainability leadership to support investor and client engagement, including leasing and new-development activity.”
BXP expects to achieve carbon-neutral operations for its actively managed office portfolio this year, according to Myers, and is setting new energy and water reduction targets for 2030.
“We are facing emerging transition risks and will be navigating an evolving landscape of building performance standards, codes, and disclosure requirements in Massachusetts, New York and California,” he says. “We will continue to prioritize value-add activities — keeping our curiosity and ambition level high — while defining the sustainability characteristics of a premier workplace.”
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BXP was among a number of REITs named to the Dow Jones Sustainability North America Index.
Ben Myers recorded a video interview at Nareit’s REITworks: 2024 Sustainability & Social Responsibility Conference, held in McLean, Virginia.