OUR BUSINESS | DIGITALBRIDGE | PORTFOLIO | CITIZENSHIP | APPENDIX | DIGITALBRIDGE.COM 38 SASB Real Estate Accounting Metrics (cont.) All data as of Dec. 31, 2020 unless otherwise noted Category/ Unit of Real Estate Accounting Metric Measurement DigitalBridge Response MANAGEMENT OF TENANT SUSTAINABILITY IMPACTS (cont.) IF-RE-410a.3 Discussion DigitalBridge is an investment platform focused on the full spectrum of Discussion of approach to and Analysis digital infrastructure, including towers, data centers, fiber and small cells. measuring, incentivizing As the data centers in our portfolio seek to reduce their carbon footprint, and improving sustainability some are collaborating with tenants to jointly address their emissions impacts of tenants reduction goals. CLIMATE CHANGE ADAPTATION IF-RE-450a.1 Quantitative/ We do not track this figure, but relevant prospective new investments Area of properties located Square feet undergo an assessment of resiliency, including if the chosen location is in in 100-year flood zones, by (ft²) a 100-year floodplain, as part of the due diligence process. We advise all property subsector current portfolio companies to assess their physical climate risks and have provided a template for them to do so. IF-RE-450a.2 Discussion As an active investment manager, we engage with each portfolio company Description of climate change and through the ownership period. This includes educating portfolio company risk exposure analysis, de- Analysis management on issues such as climate change risks, providing tools and gree of systematic portfolio requiring quarterly reporting on key performance indicators, including those exposure and strategies for related to climate change and its associated risks. See page 13 for more mitigating risks details on our recent training. We recommend that all portfolio companies consider analyzing the exposure and sensitivities of their physical assets to climate risks, depending on the company location and asset type. After conducting an initial assessment, portfolio companies should conduct further investigations on sites that are deemed high risk. Further, we have educated our portfolio companies on both physical and socioeconomic impacts of climate change and recommend that all portfolio companies consider how the socioeconomic impacts of climate change will impact their business. We believe these investigations will yield valuable informa- tion that can be used to better understand our risk exposure. As many of our investments have been in our portfolio for less than a year, we have not yet conducted a full analysis of our systemic portfolio exposure. Going forward, we expect to be able to gain a better understanding of our risk exposure as our portfolio companies complete their first full year of quarterly reporting on core and company-specific key performance indicators. See Measuring Performance on page 20. We believe that our Net Zero 2030 commitment will help us reduce climate risks, which are becoming more costly and/or widespread throughout the economy. Also, by considering climate change risks during the due diligence process, DigitalBridge can better understand how to mitigate potential climate-related risks.
ESG Report | DigitalBridge Flipbook Page 39 Page 41