2020 AT A GLANCE
FINANCIAL IMPACT
$20M in EarthView savings since inception
1.7 YEAR average payback period for our efficiency investments
$2M from additional energy savings protocols implemented during low occupancy in 2020
ENVIRONMENTAL IMPACT
2019/2020 Results
In 2019, we announced targets for reducing our environmental impact by 2030 (using a 2010 baseline) and have joined the Science Based Targets initiative to align our emissions reduction targets with “science based targets” requirements. See our Environmental Impact section for more information on our targets.
The pandemic’s impact on our business and physical occupancy in 2020 was material due to travel restrictions and stay-at-home orders. Therefore, our progress towards our 2030 environmental targets is expressed in terms of 2019 metrics vs our 2010 baseline and separately as 2020 vs 2019 like-for-like, which considers only properties with comparable operating results.
EMISSIONS REDUCTION
44%
reduction per SF 2019 vs 2010
26% like-for-like reduction per SF 2020 vs 2019
SOCIAL IMPACT
GOVERNANCE
Board of Trustees and Governance Information
at Hersha
Held in 2020
Independent Directors
50%
Female and Minority Board Members
Yes
Separate Chair
and CEO
Yes
Independent
Lead Director
Yes
Proxy
Access
Yes
Code of Conduct for Directors and Executive Officers
Our comprehensive Code of Ethics and Code of Conduct – including policies on human rights, labor rights, diversity, anti-harassment, formal grievance process, whistleblowers, non-retaliation, health & safety, and supplier code of conduct– are available in the Governance section of our Hersha website.
RESILIENCY & RISK
Our resiliency strategy includes the ongoing evaluation of potential climate risks, the identification of mitigation strategies, and the ongoing monitoring and assessment of our progress.
*Hersha NOAA Hazard Score is collated from data by the National Oceanic Atmospheric Administration (NOAA), and peer risk score calculated from the Morgan Stanley report “Rising Flood Risk: How Much and at What Cost?” (3/2019). The NOAA Hazard Score takes into account flood risk as defined by FEMA, the Federal Emergency Management Agency.
NOAA FLOOD RISK SCORE
1.3 average portfolio risk,
vs. 2.8 average risk for US Lodging REITS*
(1-10, 1=low risk)
LEVEL OF NOAA FLOOD RISK
2.1% of properties by count at high risk
(as defined by NOAA), vs. on average 3% of US Lodging REITs’ properties are at high risk
AWARDS & RECOGNITION
Hersha has been recognized for our approach to driving positive environmental and community impact, both at a local and global scale. Highlighted are a few of our recent awards:
Global Real Estate Sustainability Benchmark Public Disclosure Hersha ranked #1 within the U.S. Hotel peer set
NAREIT’s Leader in the Light (Lodging & Resorts sector) – Recognized four times for superior sustainability practices
Hersha ranked
#234
on Newsweek’s 2021 list of America’s Most Responsible Companies
Hersha – Top Work Places 2020 by The Philadelphia Inquirer
Communication Highlights
In 2020, our sustainability platform, EarthView, was featured in numerous publications including Hotel Business Review, Hospitality Net, NAREIT, Asian Hospitality, Hotel Business, and Green Lodging News. These publications have an estimated total audience of 165,000.
United Nations Sustainable Development Goals
We recognize that all of the United Nations Sustainable Development Goals (SDGs) are closely integrated and play vital roles in our communities and planet. However, similar to other leading companies, we realize that a focus on specific goals is the most effective avenue towards progress. Therefore, to further support both Hersha’s and the UN’s missions, we have prioritized eight SDGs that are closely aligned with our business:
