LABBC CASE STUDY

PROPERTY OWNER
Hudson Pacific Properties

PROPERTY TYPE
Office

SQUARE FEET
1,642,882 (7 Buildings)

Sponsoring Organizations

17%

Portfolio-Wide Energy Reduction in 2020

33%

Portfolio-Wide Water Reduction in 2020

2021 Innovation Awards: Industry Leadership (Private) Winner

“We believe that success requires our focus on long-term value creation for all of our stakeholders, including shareholders, residents, communities and team members at every level of our organization. Focusing on ESG is key to programmatically addressing stakeholder concerns.”

NATALIE TEEAR 
Vice President, Sustainability and Social Impact, Hudson Pacific Properties 

CHALLENGE

A demonstrated leader in sustainability and ESG initiatives, Hudson Pacific Properties continues to raise industry standards with its accomplishments. The company has set ambitious goals to achieve net-zero carbon and waste across operations by 2025. It has also committed to reduce energy consumption by 10%, water consumption by 5% and maintain ENERGY STAR certifications at 75% of its in-service portfolio by 2025 (from a 2019 baseline). Additionally, the company set several goals intended to improve health and equity in its communities by developing and implementing an internal Healthy Building Checklist portfolio-wide and by donating at least 1% of the company’s net earnings annually.

STRATEGY

Despite challenges posed by a global pandemic, 2020 was a landmark year for Hudson Pacific. The company seized the opportunity to ramp up efficiency efforts and achieved 100% carbon neutrality across all operations through a combination of energy efficiency, on-site renewables, renewable energy certificates and verified reduction credits. Hudson Pacific also completed its portfolio-wide capital improvement plan to reduce energy consumption, resulting in two assets achieving LEED Gold and Fitwel Viral Response certifications, as well as recognition as ENERGY STAR Partner of the Year for a second consecutive year.  

Projects included LED retrofits at its Westside II and Sunset Gower Studios properties, as well as the completion of EPIC, a 13-story Class A office complex that is the first large commercial building in Los Angeles to implement building-integrated photovoltaics. With rooftop space needed for mechanical equipment, Hudson Pacific installed 310 solar panels on the building’s west- and east-facing façades, generating electricity from its vertical exterior to offset energy consumption. 

COVID-19 significantly accelerated the rollout of the company’s digital application, “My HPP Office.” Designed to better communicate safety, logistics and health information, the app kept tenants updated in real-time on fundamental operational changes during times of uncertainty—including building access updates and street closures during protests over the summer—and was critical in communicating safety protocols to those planning a return to the office. The app also facilitates wellness and sustainability initiatives, such as fitness classes and tips for how one can reduce their carbon footprint.

IMPACT

While 2020 was a difficult year to validate cost savings due to the drastic changes in operations and occupancy levels compared to previous baseline years, Hudson Pacific estimates savings for its LED retrofit projects achieved a total estimated annual savings of $115,000. At an organizational level, Hudson Pacific’s amplified ESG efforts resulted in long-term benefits to their corporate responsibility bottom line. 

Hudson Pacific introduced its proprietary “Better Blueprint” platform to serve as the basis for setting and tracking ESG goals. The company also committed to expanding its diversity, equity and inclusion (DEI) initiatives. These efforts included the creation of a DEI resource library, an intensive training program for all levels of employees. For the second year, Hudson Pacific was named a leader in U.S. office sustainability by GRESB, earning a “Green Star” designation and the highest five-star rating for exceptional ESG performance. Additionally, the company appointed a third woman to its board of directors, a goal outlined in its 2019 corporate social responsibility report. 

In a show of commitment to the communities it serves, Hudson Pacific announced its “Vibrant Cities Arts” grant, a $650,000 fund to fast-track critical assistance to L.A. artists impacted by COVID-19. The fund is associated with One Westside, a Hudson Pacific joint venture with Macerich to convert the former Westside Pavilion into Google’s latest L.A. campus. 

Hudson Pacific leans on a variety of consultants to implement its multifaceted sustainability initiatives, including: Envision Realty, which assists with energy efficiency and operational improvements to obtain LEED EBOM certification; Goby, which assists with measuring and managing data in ENERGY STAR Portfolio Manager; MACH Energy, which allows for real-time and next-day energy dashboarding; Hydropoint, which manages water use; All About Waste, which is developing a corporate net-zero waste policy to implement portfolio-wide; and local consultants to assist with leveraging and maximizing incentive opportunities through the L.A. Department of Water and Power and Southern California Edison.