Kilroy Realty Achieves Carbon Neutral Operations

Kilroy Realty Corporation (NYSE: KRC) announced today that as of the end of 2020 it had achieved carbon neutral operations. In 2018, the company was the first North American REIT to make a commitment to achieve carbon neutral operations and it accomplished its goal through energy efficiency, onsite renewables, offsite renewables, renewable energy certificates and verified emission reduction credits. These efforts fully addressed the Scope 1 and 2 greenhouse gas (GHG) emissions associated with the operations of KRC’s buildings.

“In 2018, I committed our company to reach carbon neutral operations by the end of 2020, and we have kept that promise. This achievement demonstrates that real estate companies can and should thrive while being excellent stewards of the environment,” said John Kilroy, Chairman and CEO of KRC.

The company focused on the following strategies to achieve carbon neutral operations:

• Energy efficiency. KRC has reduced energy use of its assets approximately 18% from 2010 levels.
• On-site renewables. KRC has solar photovoltaics installed on 15 of its properties. These systems generated approximately 2% of the total energy consumed by the KRC portfolio in 2020.
• Offsite renewables. KRC has entered into an agreement for a large offsite solar array currently under development that will, when complete, fully address the electricity consumption of its directly managed properties. In addition, KRC procures 100% Green-e certified power for certain properties from several of its energy providers, including the Clean Power Alliance, San Diego Gas & Electric and Peninsula Clean Energy.
• Renewable Energy Certificates (RECs). While not fully completed, KRC’s offsite solar project purchases RECs on KRC’s behalf that allow KRC to convert to 100% renewable electricity across all properties.
• Carbon offsets. The remainder of the company’s greenhouse gas emissions are now offset by verified emission reduction credits. The resulting carbon offsets are Verified Carbon Standard (VCS) certified.

“Our tenants truly value our efforts and commitment to sustainability,” said Rob Paratte, KRC’s EVP and head of business development and leasing. “This is a win not only for the environment but for the reputation of our portfolio in the real estate community.”