PERFORMANCE INDICATOR

We continue to look for ways to reduce our effect on the environment, whether energy consumption and emissions from our business activities or the effects that result from supporting our customers’ needs.

We focus our investments in predominantly infill locations in supply-constrained markets close to airports, seaports and major transportation corridors. These strategic locations bring our customers closer to their customers–reducing truck traffic, emissions and transportation costs–providing cost savings for our customers’ supply chains and benefits for local communities and the environment.

AMB has been an active buyer of environmentally impaired property since 1997. These sites, sometimes classified as brownfield sites, are returned to productive economic use through AMB’s development business. An internal environmental team oversees these projects to ensure the success of AMB’s stewardship. These efforts can provide long-term benefits to the environment and local communities as well as to our customers by allowing them to locate their operations to optimize efficiency.

Our operating portfolio is being retrofit to use more efficient lighting technologies and HVAC systems to reduce customer energy use. These projects can reduce energy consumption by up to 50% in older buildings. To date, our customers have saved tens of millions of kilowatt hours of electricity through high-efficiency lighting and HVAC retrofits. We expect the pace of these energy-saving retrofits to increase in the future. AMB is supporting this effort by commissioning energy audits of tenant spaces as well as by providing financing options that reduce the capital costs for tenants, making the retrofits more economically feasible. These efforts reduce energy consumption and can have a meaningful positive impact on the environment.

Our development business utilizes our best practices in each market and develops to recognized sustainable building standards such as LEED in the U.S., and others where applicable. We also work to educate customers on the benefits to their operations of our efficient facilities. On average, our buildings built to LEED and other comparable standards are expected to use up to 25% less energy and 50% less water compared with traditional buildings.

We are committed to improving the energy efficiency of our corporate offices. Many highly energy-efficient strategies are currently being utilized, such as extensive day lighting to reduce electric lighting needs, high-efficiency T8 lighting and occupancy controls. AMB also encourages the use of videoconferencing in lieu of air travel where appropriate to reduce our impact on the environment. Procurement policies in our offices include recycled and recyclable materials as well as energy-efficient electronics and office equipment. We have recycled obsolete electronics and batteries since 2004, and in our Pier 1 headquarters, we provide a used battery drop-off for employees. We have supported recycling of beverage containers and other recyclable materials for many years, and we have had a companywide paper recycling policy since 2007.

Within AMB’s sustainability group, the Director of Sustainability Programs oversees energy-efficiency retrofits and sustainable building standards. The director also tracks retrofit progress and development activity to ensure that projects are undertaken that have a positive environmental impact. The entire sustainability group works to educate internal stakeholders and customers about opportunities to develop and operate more energy-efficient facilities. This group also oversees renewable energy research and due diligence; members of this group are leading industry advocates for greater industry-wide sustainability efforts.

Our largest electricity-consuming office is our Pier 1 global headquarters, responsible for 33% of AMB’s total global electricity use. Electricity for this office has been provided by regional hydroelectric sources since the office redevelopment was completed in 2001.

These include preservation of an existing waterfront pier warehouse that kicked off a waterfront redevelopment plan in San Francisco that continues today. Design features include daylighting throughout office spaces and an open-plan design, an innovative bay water heat exchanger to help passively cool the building, as well as energy-conserving lighting and controls. In 2007, we installed reverse osmosis water filtration systems in this office and our Boston office, reducing bottled water consumption by 75%. We continue to seek energy and water conservation opportunities for our own offices and for our property portfolio.

AMB is actively evaluating renewable energy opportunities that are suitable for our properties in markets around the world. We are expanding our audit and retrofit efforts at our properties to help our tenants reduce their energy consumption and minimize the associated environmental impacts. In 2008, AMB retrofitted more than 3.5 million square feet of property with new high-efficiency lighting systems. This effort will result in tenant electricity savings of millions of kilowatt-hours per year.

Our offices are also designed to maximize natural daylight–open-plan offices with extensive interior glazing maximize natural light. In our Boston and San Francisco offices, for example, employees have direct views outside of the building from their work spaces. In our San Francisco headquarters, building systems are monitored on a daily basis and adjusted to optimize performance based on seasonal weather and building occupancy conditions. This building also uses extensive skylights and operable windows to let daylight into office and meeting areas.

AMB uses Energy Star-labeled computers, LCD monitors and high-volume copier equipment where feasible. We also promote double-sided printing and electronic document management when feasible to reduce paper consumption.

AMB has an employee transit pass reimbursement plan to promote the use of mass transit. Globally, approximately 62% of AMB employees commute to work on mass transit, by bicycle or on foot. In our San Francisco headquarters, the number of employees using public transportation, walking or riding bicycles to the office is approximately 85%. In our Japan offices, virtually 100% of employees use public transportation for their commute.

AMB’s environmental and engineering group is responsible for monitoring, regulatory compliance and implementation of best practices in the operating portfolio. This group works with our property management staff and customers to ensure tenant operations are conducted in a manner that is in compliance with local, state and federal regulatory requirements. We have an in-house environmental team to oversee the restoration of brownfield sites throughout the world. These efforts can include addressing site-specific biodiversity concerns in the site restoration.

For example, the AMB Kasugai development in Japan utilized an innovative multistory design to accommodate the required building area while disturbing only 40% of the site. The compact building design permits the site to remain a wildlife habitat while also preserving community access to historically significant religious relics on the site. At a recent development project in New Jersey, approximately 14% of the site was designated as a habitat for wildlife and local plants. Community access to these natural habitats will also be restored when the project is completed.

We have revised our standard specifications to prefer the use of native-adapted plants and ground cover to reduce irrigation needs and ongoing maintenance on development projects. This often has the additional benefit of reducing fertilizer and chemical lawn care needs while also reducing the use of gas-powered maintenance equipment such as lawnmowers and trimmers.

Where technically feasible, AMB routinely specifies the reuse and recycling of demolition and construction debris on development projects. For our LEED-registered projects, construction waste recycling rates have often exceeded 75%. AMB also specifies recycled and recycled-content materials for construction activities to reduce demand for raw material extraction and processing. In our AMB Morgan Business Center project, this exceeded 20% of construction materials, by cost. In addition, 45% of the construction materials by cost for this project were sourced regionally (within 500 miles).

We face certain limitations to precisely determine the energy use and emissions for offices occupied, but not owned by AMB due to limited metering equipment to record electricity and gas usage. In these cases we have used reasonable efforts to determine the portion of total building energy consumption (provided by our Landlords) that our activities are responsible for.

AMB’s corporate office activities resulted in direct emissions of 214 metric tons of CO2 equivalent (CO2e) from natural gas usage. Our activities resulted in indirect emissions of 1,135 metric tons of CO2e from electricity usage.

Emissions data was gathered from our travel agencies and from reports provided by our corporate offices for their respective staff members. These emissions are categorized as Scope 3, Optional; Other GHG Emissions according to the GHG Protocol Corporate Standard.

Efforts are also described in EN7. Current measures include but are not limited to:

• High-efficiency lighting with dimming and occupancy controls
• Videoconferencing
• Energy Star-labeled office equipment
• Office recycling for electronics, batteries, plastic, aluminum, paper and cardboard
• Water filtration systems to reduce bottled water consumption
• Procurement policies that seek recycled and recyclable office supplies
• Consolidated office supply orders weekly at our Pier 1 headquarters to reduce the frequency of deliveries by up to 80%
• Employee commuter transit pass deduction programs
• Support for events such as “bike to work” days
• Use of car-sharing services for local trips
• Use of “green” cleaning products
• Use of biodegradable and recycled-content kitchen supplies
• Use of recycled-content office paper
• Printing AMB Annual Report on FSC-certified paper
• Election for e-delivery of company information
• Notice and access for proxy materials

	Scope 1: Direct Emissions	Scope 2: Indirect Emissions	Scope 3: Travel and Commute Emissions
NOx	270	1,550	8,670
SO2	1.0	4,250	950
PM10	-	-	300
PM2.5	-	-	210
Hg	-	-	-