We accomplish this by focusing on eight strategic priorities:

Our formal climate strategy work began in 2008, and in 2014 we became the first U.S. REIT and the second U.S. Corporation to issue a Green Bond for financing environmentally sustainable projects. In 2017, we developed our own Green Building Standard that, to date, is applied to all ground-up development and major redevelopment projects, ensuring that all of our construction projects achieve a higher level of green building performance. In addition, we set initial 10-year environmental targets, which were achieved ahead of schedule, and in 2018 we re-set new goals. In 2019, we developed and implemented a Tenant Sustainability Guide. In 2020, we incorporated a sustainability metric into our amended and extended credit facility agreement as added incentive to reduce Scope 1 and 2 GHG emissions. In 2021 and 2022, we continued to achieve our goal of reducing Scope 1 and 2 GHG emissions, introduced property-level climate risk reports into our due diligence process for all new investments, and released a standalone climate change risk report aligned with TCFD. Furthermore, in 2022, we developed a net-zero Scope 1 and 2 GHG emissions goal and an interim Science-based goal endorsed by SBTi.

To understand our exposure to climate-related impacts, in 2018, we analyzed the sea-level rise risks to our properties in Florida. As a result, we identified that a small number of our assets would be at higher risk in the long term and, as such, factored the results into our insurance and property management strategies.

Beginning in 2020, we built on that work, expanding our analysis to our entire portfolio and business over the medium and long term (2030-2100). Our analysis looked at two scenarios: one assuming lower levels of GHG emissions that will limit average temperature increases to 1.5°C to 2°C degrees (a “sustainable growth” scenario), and another where GHG emissions continue to rise at a higher level of 6°C degrees (a “current trends” scenario). The work provided a better understanding of the risks and opportunities at both the portfolio and geographic market levels under the two different climate scenarios and over the medium and long term.

To help expand our understanding at the property level, in 2021, we partnered with an experienced consultant to perform climate-risk analyses on any properties we are considering for new investment, and in 2022, on all properties in our portfolio progressively over the next four years. These reports identify the risk level of the site within five specific perils: storm (including hurricanes and strong winds), heat, drought, fire, and flood (pluvial and fluvial).

For each hazard, our consultant analyzes the modeled frequency and severity of extreme events in the past and future to create a 1-100 rating relative to the data coverage area. The screening and reports include property-level climate risk data projecting 50 years into the future under multiple scenarios, including RCP4.5 and RCP8.5.

(1) Ratings reflect hazard risk at a property relative to the rest of the contiguous United States. Ratings are based on projected 2050 risk and the change from historical risk. A rating of 1 represents the lowest risk; 100 is the highest.

Risk management is embedded into everything we do, and our risk management practices are set out in our Corporate Responsibility Policies and Practices. Our risk management practices stem from a philosophy of pursuing sustainable growth and creating economic value while managing appropriate risks and opportunities.

Our 2018 sea level rise analysis informed how we manage risks to our Florida properties. The results from our 2020 work, described in the graphic below, updated that analysis and now informs climate risk management across our entire portfolio. It is also integrated into strategic planning, acquisition decisions, property management, and capital allocation project planning, and guides our ongoing property-level analyses.

We took the following steps to evaluate the impacts of climate change and its potential effect on our properties:

All of these actions to identify and manage climate risk at the property and portfolio level are monitored and coordinated by our Real Estate and Management Committees, with oversight from our Board. This ensures that a holistic strategy guides the approaches in our business lines.

Regency is focused on maintaining resilience at our properties and our business. We strive to implement leading construction and operational practices as well as robust planning for a swift recovery from any incident. According to the UN Intergovernmental Panel on Climate Change (IPCC AR5), the physical risks of climate change are varied and widespread. Regency’s operations may be subject to disruption from natural or human causes beyond its control, including physical risks from hurricanes, severe storms, floods, heat waves, other forms of severe weather, wildfires, and sea level rise;
as well as transitional risks, such as policy and legal, market, and reputational.

A more detailed discussion of the risks that could impact our business and financial condition are discussed in our SEC filings, including our most recently filed Annual Report on Form 10-K.

At this time, outside of our 2020 TCFD analysis accessible through our 2021 TCFD Report, we have not identified a material climate-related risk to our business. In addition, the geographic diversification of the properties in Regency’s portfolio means individual natural events such as a severe storm, which potentially impact one or a small number of properties, should not have a significant financial impact on the business in the aggregate. However, we continue to monitor the impacts of climate risk on our business and aim to use the ongoing property-level analyses and projections developed by our consultant to assess our business’ climate vulnerabilities and perform resiliency planning. Furthermore, we intend to leverage the data and models to determine the relevance of disclosure related to the quantifiable financial impacts on our Company, if any.

In 2022, we revisited our climate-related goals and disclosures and, in line with best practice, developed a net-zero Scope 1 and 2 GHG emissions goal and an interim Science-based GHG emissions reduction goal, together with a strategy to achieve both.

We have for many years disclosed our energy use, water consumption, waste diversion, and GHG emissions in our annual Corporate Responsibility Report. Details related to our strategy and progress against our targets are provided throughout our 2022 Corporate Responsibility Report.

Regency’s most significant use of water within our operational control is landscape irrigation, which is primarily impacted by weather patterns and water restrictions. We recognize the need to conserve this natural resource to keep it available for future generations while also preserving the environment and minimizing effects such as drought and water shortages. At Regency, we strive to implement best practices in water management at our properties by focusing on strategies that balance the use more efficiently, while also providing shade and pedestrian-oriented landscape areas for the community to enjoy.

We do this through high-efficiency irrigation systems, including “smart” controllers that adjust schedules based on local weather conditions to optimize irrigation run times. We also, where possible, use reclaimed water from our local utility providers and plant native, drought-tolerant plants. Other measures like stormwater management systems that protect stream channels from excessive erosion, permeable paving systems, and rainwater retention cisterns are just a few other measures to conserve water usage on our properties.

The water we use is sourced from municipal, public, and private water utility providers, and we comply with public policy and local requirements for water use and monitor consumption regularly. We strive to reduce our water use without compromising the environments at our centers and encourage our tenants and other stakeholders to undertake water conservation measures, including through our Tenant Sustainability Guide, which provides guidance on tools and practices our tenants can use to reduce water use.

(1) Regency calculates in accordance with the GHG Protocol. See our 2022 Corporate Responsibility Report for Like-For-Like (LFL) definition, methodology, and additional notes.