Hudson Pacific Properties : Green Finance Framework

Green Finance Framework

August 2022

Hudson Pacific Properties Green Finance Framework

Green Finance Framework

Introduction

Hudson Pacific Properties (NYSE:HPP) acquires, operates, transforms, and builds creative office and studio properties in global epicenters of tech and media innovation including Los Angeles, Silicon Valley, San Francisco, Seattle, Vancouver, and the U.K. We are the largest publicly traded owner of office space in Silicon Valley, one of the largest independent owners and operators of studios in the U.S., and our portfolio totals over 21 million square feet, including land for development.

Our top-tier assets combined with our leasing and management expertise have enabled us to cultivate a tenant base of premier blue-chip and growth companies, like Google and Netflix. Our strategic focus is value creation through less capital- and time- intensive repositionings and (re)developments, although our deep in-house expertise allows us to execute on a full range of opportunities-from incremental lease-up to cutting-edge new construction. We are at the forefront of reimagining outdated real estate to deliver marquee, creative workplaces where the most forward-thinking companies and their employees can thrive.

Our environmental, social and governance (ESG) platform, Better BlueprintTM, brings to life our vision of vibrant, thriving urban spaces and places built for the long term. This 'blueprint' is integral to our business model and articulates principles and practices that form the foundation of our success and guide our work with the stakeholders that are at the core of our business: tenants, employees, investors, and partners. Through this program, we aim to foster the growth of sustainable, healthy, and equitable cities-vibrant cities, today and in the future.

More information about our approach to ESG and the three pillars of this platform - Sustainability, Health and Equity - can be found on our webpage at https://www.hudsonpacificproperties.com/responsibility.

Green Finance Framework

We have developed this Green Finance Framework (the "Framework") in fulfillment of the following guidelines, as may subsequently be amended. It is our intention to follow best market practice as standards develop.

• The Green Bond Principles 2021 ("GBP") as administered by the International Capital Market Association ("ICMA"), together the "ICMA Principles"1
• The Green Loan Principles 2021 ("GLP") as administered by the Loan Market Association ("LMA") and Loan Syndications and Trading Association ("LSTA")2

Under the Framework, Hudson Pacific may raise from time to time, bond, loan, or other debt-like financing for specific assets and projects that we believe will catalyze positive environmental benefit (such financing, "Green Finance Instruments"). Examples of Green Finance Instruments include the following:

• Green Bonds, in accordance with GBP
• Green Loans, in accordance with GLP

This Framework details the following in alignment with the ICMA Principles and the GLP:

• Use of Proceeds
• Process for Project Evaluation and Selection
• Management of Proceeds
• Reporting
• External Review and Verification

1. https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/

2. https://www.lma.eu.com/application/files/2416/1303/5144/GLP_Guidance_Feb2021_V02.pdf	2

Hudson Pacific Properties Green Finance Framework

Green Finance Framework

Use of Proceeds

Hudson Pacific intends to allocate an amount equal to the net proceeds from any Green Finance Instruments to be used to finance and/or refinance, including for the avoidance of doubt, the acquisition of any Green Buildings (whether the relevant properties constituted "Green Buildings" at the time of their acquisition or whether such status was or will subsequently be achieved), in whole or in part, new or existing green projects that meet Hudson Pacific's eligibility criteria as outlined in the table below ("Eligible Green Projects").

Eligible Green Projects include projects that meet the eligibility criteria below with the expenditures and/or certification occurring during the 24 months prior to the issue date of the instruments or during the term of the transaction.

GBP ELIGIBLE CATEGORY

GREEN BUILDINGS

RENEWABLE ENERGY

ENERGY EFFICIENCY

CLEAN

TRANSPORTATION

ELIGIBLE GREEN PROJECTS AND EXAMPLES

Investments, financings, and acquisitions related to real estate projects that have received or are expected to receive third-party sustainability certifications or verification such as:

• LEED (Gold, Platinum)
• BREEAM® (Very Good, Excellent, Outstanding)
• ENERGY STAR: Rating of 85 or greater
• Additional equivalent certifications

Investments related to the design, construction, operation and maintenance of on-site or off-site renewable energy sources, such as wind and solar.

Example projects may include:

• Purchase of renewable energy pursuant to long-term power purchase agreements or virtual power purchase agreements which we have entered into prior to commercial operation of the related facility
• Solar panel installations
• Battery storage systems

Investments related to the design, construction, operation, and maintenance of energy-efficient systems (including efficient LED lighting, HVAC, cool roofing, and energy management systems) that yield at least a 30% energy efficiency improvement

Investments in fleet decarbonization and/or electric transportation, including but not limited to specifically investments in electric vehicles with zero tailpipe emissions or infrastructure for the operation of electric vehicles

OBJECTIVES

Contribute to the reduction of greenhouse gas ("GHG") emissions and conservation of resources

Reduce GHG emissions through electricity generated and/or consumed from renewable sources compared with more emissions intensive sources

Reduce GHG emissions through the improvement of energy efficiency and the reduction of energy usage in buildings

Reduce GHG emissions through the support of clean transportation and associated infrastructure

UN SDG ALIGNMENT

Process for Project Evaluation and Selection

Eligible Green Projects financed and/or refinanced with the net proceeds from Green Finance Instruments will be overseen, evaluated, and selected by members of Hudson Pacific's cross-functional Green Finance Committee based on the criteria set out in the Framework. The Green Finance Committee will consist of members from Hudson Pacific's Legal, Sustainability, Capital Asset Management, Operations and Treasury & Capital Markets functions, among others. The committee will evaluate and approve investments that are eligible for inclusion in the portfolio of Eligible Green Projects according to the criteria set

3

Hudson Pacific Properties Green Finance Framework

Green Finance Framework

out in the Framework. Such a committee will assess the environmental and social risks associated with Eligible Green Projects and determine appropriate mitigating measures.

Consideration for environmental and social risk is embedded in Hudson Pacific ongoing operations as we strive to embed ESG in every aspect of our business:

• Operations: At our existing properties, which make up most of our portfolio, property teams work together to maintain Better Blueprint Action Plans that outline ongoing and planned projects to drive environmental and social improvements at each property.
• Development: We use our office- and studio-specific Sustainable Design Visions to guide the ESG objectives for every (re)development and major repositioning project. For ground-up projects, we also complete in-depth environmental impact reports or the local equivalent.
• Acquisitions: We integrate ESG criteria into the due diligence and underwriting process through property condition assessments, phase 1 environmental site assessments, and other custom ESG screens.

We have topic specific policies for key ESG priorities addressing issues across the three pillars of of our corporate responsibility platform - Sustainability, Health and Equity. The Green Finance Committee will evaluate and select eligible projects in accordance with this framework and in the context of our broader ESG monitoring and risk management approach.

Management of Proceeds

Hudson Pacific intends to allocate an amount equal to the net proceeds from Green Finance Instruments to Eligible Green Projects selected in accordance with the eligibility criteria and evaluation and selection process presented above. These projects can include (re)developments, acquisitions, refurbishments, and repositionings and may include refinancing of existing projects. Such allocation will be reflected in Hudson Pacific's internal records by the use of a Green Finance Register. Such a Green Finance Register will be maintained through our internal management reporting process.

Hudson Pacific intends to fully allocate all net proceeds within 36 months of each Green Finance Instrument. Pending full allocation, any portion of the net proceeds from Green Finance Instruments that are unallocated to an Eligible Green Project will be invested in accordance with Hudson Pacific's cash investment policy and may be used to repay existing borrowing. In the case of divestment, Hudson Pacific intends to reallocate the funds to one or more other Eligible Green Projects.

Reporting

Allocation Reporting

Hudson Pacific intends to publish an allocation report ("Green Finance Report") for each Green Finance Instrument annually, until all net proceeds have been fully allocated. The Green Finance Report will provide an update on the allocation of net proceeds for each Green Finance Instrument and is expected to include information on expenditures in the portfolio of Eligible Green Projects at least at the category level on an aggregated basis for all Green Finance Instruments for so long as such Green Finance Instruments remain outstanding. The inaugural Green Finance Report will be posted within one year of the receipt of any proceeds from Green Finance Instruments. The Green Finance Report will include the following items:

• A list of Eligible Green Projects allocated;
• Total amount of allocated net proceeds;

4

Hudson Pacific Properties Green Finance Framework

• The balance of unallocated net proceeds.

Green Finance Framework

To the extent practicable, the report may also include information regarding new financing vs. refinancing (in %).

This post-issuance reporting information will be externally reviewed and will be publicly available on our webpage at https://www.hudsonpacificproperties.com/responsibility.

Impact Reporting

Where feasible, on an annual basis, until full allocation, Hudson Pacific intends to report on relevant impact metrics in the form of Key Performance Indicators (KPIs) related to the actual and/or expected sustainability impacts of the Eligible Green Projects. These may be supplemented by qualitative and/or case-study reports on outcomes and impacts of the Eligible Green Projects funded. Definition, calculation, methodology and reporting of KPIs will be at Hudson Pacific's sole discretion.

PROJECT CATEGORY

GREEN BUILDINGS

RENEWABLE ENERGY

ENERGY EFFICIENCY

CLEAN TRANSPORTATION

EXAMPLE KPIS

• Level of certification achieved
• Total square footage certified
• Renewable energy capacity sourced and developed (MW)
• Emissions (including metric tons of CO2e) avoided or reduced
• Energy savings (e.g. MWh)
• Number of electric vehicles purchased
• Number of electric charging stations installed

External Review and Verification

External Review

In connection with the Framework, Hudson Pacific has worked with an outside consultant with recognized expertise in environmental, social, and governance research and analysis to (i) assess the definition of Eligible Green Projects and processes for alignment with the Green Bond Principles and (ii) obtain and make publicly available a Second Party Opinion ("SPO") from such consultant in respect of compliance with such criteria. Hudson Pacific has appointed S&P to provide such SPO on the Framework.

This Second-Party Opinion will be made available on S&P's webpage at https://www.spglobal.com/ratings/en/products-

benefits/public-reports/sustainable-financing-opinions and Hudson Pacific's webpage at https://www.hudsonpacificproperties.com/responsibility.

Verification

We expect that our Green Finance Report will be accompanied by (i) an attestation from our senior management as to the allocation of proceeds from any Green Finance Instruments to Eligible Green Projects, and (ii) a report from an independent registered public accounting firm who will examine such attestation by our senior management in accordance with standards established by the American Institute of Certified Public Accountants.

5