• Maintain a safety-first culture, promoting the health and wellness of our team and an incident-free workplace.
• Promote occupant health at our facilities through improved indoor air quality, access to daylight and natural ventilation, health and wellness amenities, and healthy building materials and furnishings.

• Achieve Net Zero status across our corporate operational footprint by 2040.
• Achieve and maintain carbon neutrality annually, starting in 2024.
• Annually report our greenhouse gas (GHG) emissions and progress towards Net Zero, with an interim goal to reduce operational emissions by 15% within three years of each acquisition.
• Develop a methodology to track and report on the avoided emissions from our market activities.
• Support and advise our clients on decarbonization and climate mitigation strategies.

• Conduct annual diversity training for leadership.
• Provide career opportunities that are rewarding and that respect and embrace diverse backgrounds and perspectives.
• Track, maintain, and report on diversity data.
• Actively work to increase hiring from veteran populations and other historically under-represented groups.
• Collaborate with our union partners to foster and grow talent and deliver a positive career experience.
• Foster charitable giving, volunteer time, and community-building activities for our staff, companies, and stakeholders.
• Partner with local organizations, non-profits, and government agencies to provide technical support, resources, and expertise in high-performance facilities and sustainability.

• Maintain a diverse and experienced Board of Directors and executive team, targeting a minimum of one-third of members representing women and minority groups.
• Provide regular reporting to stakeholders on activities associated with our ESG commitments, documented in alignment with the United Nations Sustainable Development Goals.
• Set and uphold rigorous standards of ethical business, transparency, and leadership, and engage our peers and partners to move the industry forward through advocacy and collaboration.
• Adopt a sustainable procurement policy to evaluate environmental and social factors in all major purchases, or when sourcing materials.
• Adopt a Responsible Contractor Policy.
• Support workforce development initiatives.
• Track and measure water consumption and implement plans to conserve and reduce usage.
• Assess the impacts of climate change on our business, develop adaptation, resilience, and mitigation plans, and disclose progress as per the Task Force for Climate-Related Financial Disclosures (TCFD) guidelines.

Benchmarking Data

We are onboarding each facility into ENERGY STAR Portfolio Manager to benchmark data. To date, 100% of our facilities are benchmarked in ENERGY STAR Portfolio Manager, where we have the ability to track and manage our building data.¹

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Inventorying GHG Emissions

Legence calculates a GHG inventory annually to benchmark and understand our sources of emissions. We use this information to get a full picture of our emissions sources and contributions so we can prioritize action and lay the groundwork to achieve net zero status by 2040.²

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Optimizing Business Travel

In late 2022, Legence rolled out a centralized online travel booking platform called Onriva to help track and manage emissions from employee business travel. This platform allows for more precise tracking of our scope 3 emissions which are included in our GHG inventory, and helps identify instances to reduce unnecessary travel.

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Accounting Avoided Emissions

We have developed a methodology to quantify avoided emissions resulting from the delivery of Legence company services, and plan to launch that reporting initiative in 2023.

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Integrating Best Practices

We have crafted an ESG Program onboarding process to help new companies integrate Legence’s ESG program. The program includes guidance on tracking and reporting operations data for use in our annual GHG inventory and avoided emissions accounting, incorporating best practices, and driving efficiency and sustainability into operations.

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Notes

1. TRIR = Total Recordable Incidents X 200,000 / Total Hours
2. Bureau of Labor Statistics (BLS) is the principal fact-finding agency for the U.S. government in the broad field of labor economics and statistics and serves as a principal agency of the U.S. Federal Statistical System.

Cataloging Fleet Optimization

We developed a strategy to transition to electrifying our fleet as vehicles and infrastructure become more widely available.

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Prioritizing Green Buildings

We strive to certify and maintain environmental certifications for company-owned facilities, in addition to partnering with landlords on leased properties to promote sustainable building performance, maintenance, and design.

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Conserving Water and Reducing Waste

At our leased spaces we do our part to reduce water usage and minimize waste sent to landfills by conserving water and adopting recycling and reuse strategies.¹ At our owned facilities, we use water-efficient fixtures and appliances, where possible, and implement waste management practices.

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Note

1. At our owned facilities, we use water-efficient fixtures and appliances where possible and implement waste management practices.

Assessing Renewable Energy Opportunities

We explore opportunities to participate in local community solar programs and, where possible, partner with landlords to explore the potential for on-site renewable energy generation. Two of our CMTA office buildings were designed with on-site solar, which is metered by the utility, providing distributed energy resources to the local grid.

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Investigating Renewable Energy Project Sponsorship

We are assessing the feasibility of off-site renewable energy sponsorships that can help us reach our carbon neutral and Net Zero goals.

Procuring 100% Renewable Energy

We have made incremental progress to purchase green power with a commitment to purchase 100% renewable energy for our operations. As a precursor to that commitment, we have conducted a cost analysis to identify the total investment needed to attain 100% green power and have begun discussing that strategy with our Board.

• 1,344 MWh of green power purchased in 2022
• $26,000 needed to purchase renewable energy credits to offset all scope 2 emissions from electricity¹

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Evaluating Green Power

We plan to screen and select green power vendors in 2023 with whom we can develop a green power procurement strategy and accelerate green power procurement across all Legence facilities.

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Note

1. These prices are based on 2022’s REC pricing estimates and are calculated based on Legence’s location-based emissions.

Growing Partnerships

We utilize RECs as a last resort after exhausting all operational efficiencies and maximizing green power procurement. We will aim to partner with a trusted vendor of RECs and carbon offsets to offset any remaining emissions from our value chain to achieve carbon neutrality annually, starting in 2024.

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Sponsoring Renewable Energy

We have the potential to explore opportunities for direct sponsorship of renewable energy, carbon removal, or mitigation projects to take us the last mile on our road to Net Zero.