ESG AT RMR

Good Governance

Sustainability Governance and Program Execution

Sustainability at RMR is built on a foundation of over 35 years of excellence in real estate operations and investment management. Our ESG program’s strong performance reflects our dedication to environmental, social and governance due diligence and a belief that being a good corporate citizen strengthens RMR and our clients.

Sustainability activities are carried out across multiple business units, including Real Estate Services, National Engineering, Human Resources, Investor Relations & Marketing, Internal Audit, Asset Management and Accounting. These business units report to members of RMR’s Executive Operating Committee, which oversees all ESG activities.

The program also benefits from robust engagement and input from our Board and the Board of Trustees for each of our Managed Equity REITs.

The independent Board members receive annual updates on RMR’s sustainability programs and, in turn, provide feedback that helps shape our efforts on behalf of our clients.

FEATURED STORY

Acquisitions Sustainability Overview

Sustainability-focused “First Look” screens prospective purchases for climate-related risks and opportunities

The RMR Acquisitions team evaluates hundreds of properties annually for potential acquisition on behalf of our clients, primarily the Managed Equity REITs and private capital portfolios. That process has always involved assessing a prospective property’s core environmental attributes (roof, HVAC equipment, lighting, etc.) to determine sustainability and value from a capital spending perspective. We have also added to the process an acquisitions sustainability overview to consider resilience to climate-related social, physical and transitional risks, enhancing our alignment to the TCFD recommendations and enabling us to assess the potential impact on our science based emission reduction targets and Zero Emissions Promise.

First Look

A member of the RMR Acquisitions team gathers a high-level inventory of sustainability qualifications or attributes of the property, such as:

Is it a LEED* certified building?
Is the property required to disclose energy, water or emissions performance metrics?
What are the local demographics?
Are the current tenants already disclosing sustainability metrics/targets?
Is it located in a state with existing or planned carbon emissions taxes?
What type of business(es) is/are leasing the property?
Are there environmental conditions evident?

Due Diligence

As a purchase evaluation moves to more in-depth due diligence, we perform a more detailed assessment of the sustainability risk and opportunities identified in the first look and new items identified in due diligence. When the potential deal reaches the review stage at RMR’s Capital Allocation Committee, these sustainability values, risks and opportunities are summarized and presented along with other deal metrics.

Post-Acquisition

When an acquisition closes and the property is managed by RMR, an operational plan is developed to keep focus on the identified sustainability risks and opportunities.

We are continuing to train more of the RMR Acquisitions team in this process while also making sellers, brokers and consultants aware of its importance so they can contribute to data capture for our sustainability assessments.

* Leadership in Energy and Environmental Design

Governance Highlights

Accountability, integrity and a commitment to good governance underpin RMR’s diversity, risk management, compliance, ethics, stakeholder engagement and cybersecurity practices.

Board Diversity: The RMR Group (Nasdaq: RMR)

33% Women

17% Underrepresented Community

20+ The number of industry organizations
RMR engages with to remain informed
of best practices and deliver ongoing
value to our clients

NIST Cybersecurity program aligned with the National Institute of Standards and Technology (NIST) five phase Cybersecurity Framework (Identify-Protect-Detect-Respond-Recover)

CLIENTS’ BOARD COMPOSITION

DIVERSIFIED HEALTHCARE TRUST
(Nasdaq: DHC)

29% Women

14% Underrepresented Community

INDUSTRIAL LOGISTICS PROPERTIES
TRUST (Nasdaq: ILPT)

29% Women

14% Underrepresented Community

OFFICE PROPERTIES INCOME TRUST
(Nasdaq: OPI)

44% Women

11% Underrepresented Community

SERVICE PROPERTIES TRUST (Nasdaq: SVC)

29% Women

14% Underrepresented Community

SEVEN HILLS REALTY TRUST
(Nasdaq: SEVN)

29% Women

14% Underrepresented Community

ALERISLIFE INC.
(Nasdaq: ALR)

43% Women

TRAVELCENTERS OF AMERICA (Nasdaq: TA)

43% Women

29% Underrepresented Community

Management, with the support of Internal Audit, incorporates governance best practices and control procedures to ensure our and our clients’ disclosures are complete and accurate. Integrating environmental and social metrics into traditional public filing review processes provides an additional element of transparency for those non-financial topics that matter to us, our clients and stakeholders.

NEXT ESG TOPIC

Environmental Leadership

For further details, download our 2021 Sustainability Report