Corporate Responsibility

Why is UDR focusing on Environmental, Governance and Social (“ESG”) issues now?
UDR has been keenly focused on ESG related issues for quite some time now, but we have not been as transparent in publicly reporting our pursuits and successes over the years. Being a good corporate citizen is important to our Board of Directors, management team, Associates and shareholders. We are proud of what we have accomplished to date with regard to ESG and we look forward to incremental improvements in the years to come.

In 2018, we put in place a framework that ensures that we can accurately track our ESG pursuits and report them in a timely fashion. As such, in 2019 we will participate in the Global Real Estate Sustainability Benchmark (“GRESB”) survey and we will publish our inaugural Corporate Responsibility Report formatted to Global Reporting Initiative (“GRI”) standards. Both of these efforts, and others that may arise in the years ahead will help to publicly showcase UDR’s ongoing commitment to improving the ESG-related aspects of our business.

In this Corporate Responsibility Report, we outline where UDR has come from with regard to ESG topics and set targets for where we expect to be in the years ahead. In addition, we address how we intend to minimize our environmental footprint, increase Associate engagement, improve the experiences of our workforce and residents, and make decisions that help to ensure an enduring governance framework.

How is ESG integrated into UDR’s overarching Strategy?
ESG touches many aspects of UDR’s overarching strategy. It helps our operations grow and improves profitability, it influences how we grow our Enterprise through “green” development, and it drives our interactions with our Associates, residents, financial stakeholders (i.e., shareholders and debt holders) and non-financial stakeholders (i.e., vendors, technology partners, etc.). Promoting a culture that keys in on innovation, accountability, and inclusivity is a core driver of our focus on ESG. A more engaged workforce that feels a sense of ownership in what they do and how they contribute to the whole drives better top-and bottom-line results, better service for our residents and better TSR for our shareholders.

An example of this, is the progress we have made over the past four years in limiting UDR’s utility expense growth, which has been one of the lowest in the multi - family space. Significant investments in energy reporting systems, Light Emitting Diode (“LED”) lighting retrofits, building management systems (“BMS”), and soon, solar, have helped us to better monitor real-time energy usage, reduced our per home carbon footprint, improved our margins and generated strong returns on the dollars invested. At UDR, we have and will continue to incorporate ESG goals for the benefit of all of our stakeholders.

Who benefits from incorporating ESG metrics and targets in to the Company’s strategy?
Our Associates, residents and financial and non-financial stakeholders benefit from UDR incorporating ESG principles into much that we do. UDR is a company that cares, it’s that simple. As a for-profit company, the bottom-line will always be a primary focus, but we are well aware that our bottom line is enhanced when we have buy-in from our Associates, a resident base that is provided the absolute best service, and a shareholder base that understands that having a profit motive and being a strong corporate citizen are not mutually exclusive.

How do you measure ESG performance?
In 2018, our Corporate Responsibility Committee, which is responsible for assessing and evaluating enhancements to our ESG efforts decided that greater focus was needed with regard to how we report on our past ESG successes and future goals. The Committee is comprised of key executives and senior management team members. Throughout the year, Committee members performed a “deep dive” across all aspects of UDR’s business to ensure that key ESG performance results were being met and that future targets conformed to and enhanced the Company’s strategic and financial goals. Many of these are reported on via the GRESB survey or in this Report.

Personally, I am heavily invested in the Committee’s continuing development of and subsequent reporting on ESG efforts and metrics. For UDR, “ESG” is not merely a catchphrase, but rather a framework that can improve what we do, how we do it, and why we do it. I am convinced that operating responsibly in conjunction with achieving our financial goals, is one way to create lasting success.