UDR : 2021 Environmental Metrics & Independent Assurance Statement

2021

ENVIRONMENTAL METRICS

Ashton Waterford Lakes - Orlando, FL

ENVIRONMENTAL METRICS	IF-RE-140a.1,IF-RE140a.2,IF-RE-140a.3, TCFD 9, 10)
			(GRI 302-1,302-3,302-4,303-1,303-3,305-1,305-2,305-4,305-5,306-2, SASB IF_RE_130a.1, IF-RE-130a.2,IF-RE-130a.3,
							ABSOLUTE CONSUMPTION (1)
	Energy Performance	2019 (kWh)		2020 (kWh)			Data Coverage (SF) (2)	Max Coverage (SF)	Total Coverage (%)
	Natural Gas / Steam	88,108,860		82,297,759			10,311,573		46,906,357	22%
	Electric	109,242,057		101,681,128			13,446,030		62,488,035	22%
	Total Energy Consumption	197,350,917		183,978,887
							LIKE-FOR-LIKE CONSUMPTION (3)
	Energy Performance	2019 (kWh)	2020 (kWh)	Data Coverage (SF) (2)		Max Coverage (SF)	Total Coverage (%)		YOY Change	Intensity Equals 2020 (kWh) /
												Data Coverage SF
	Natural Gas / Steam	54,956,252	52,788,083	5,983,447			29,380,276		20%		-4%	8.8
	Electric	61,691,135	57,298,555	8,668,864			42,804,816		20%		-7%	6.6
	Total Energy Consumption	116,647,387	110,086,638								-6%
		ABSOLUTE EMISSIONS (4)						FIXED BASE YEAR LIKE-FOR-LIKE EMISSIONS (5)
	GHG Performance	2019 Emissions	2020 Emissions		2015 Emissions		2020 Emissions		5 Year Change	Intensity Equals 2019
	(Metric Tons of CO2e)	(Metric Tons of CO2e)	(Metric Tons of CO2e)		(Metric Tons of CO2e)		Emissions / 2019 Revenue $'s
	Scope 1	15,656		14,564			13,207		14,564		10%	0.001%
	Scope 2 Location Based	34,937		31,198			40,354		31,198		-23%	0.002%
	Scope 2 Market Based	34,350		27,889			40,354		27,889		-31%	0.002%
	Total Emissions (Scope 1 + Scope 2	50,006		42,453			53,561		42,453		-21%	0.003%
	Market Based)
		ABSOLUTE RENEWABLE PRODUCTION					LIKE-FOR-LIKE RENEWABLE PRODUCTION
		2019 (kWh)		2020 (kWh)			2019 (kWh)		2020 (kWh)	YOY Change
	Renewable Energy Production (6)	1,022,000		1,685,393			126,445			1,063,388	741%
							ABSOLUTE CONSUMPTION (1)
	Water Performance	2019 (kgal)		2020 (kgal)			Data Coverage (SF) (2)	Max Coverage (SF)	Total Coverage (%)
	Total Water Consumption	2,205,181		2,261,840			61,648,295		62,488,035	99%
	Total Recycled Water Consumption	25,693		19,476
	Total Water Consumption in Water	643,233		664,882			15,720,403		15,720,403	100%
	Stressed Areas (7)
							LIKE-FOR-LIKE CONSUMPTION (3)
	Water Performance	2019 (kgal)	2020 (kgal)	Data Coverage (SF) (2)	Max Coverage (SF)	Total Coverage (%)	YOY Change	Intensity Equals
												(Consumption / Homes)
	Total Water Consumption	1,724,723	1,753,607	42,476,216		42,804,816		99%		2%	46.9
	Total Water Consumption in Water	512,134	542,540	11,423,200		11,423,200		100%		6%	51.0
	Stressed Areas (7)
		ABSOLUTE WASTE METRIC TONS		LIKE-FOR-LIKE WASTE METRIC TONS (8)			RECYCLING	DIVERSION
		2019	2020	2019			2020		YOY Change		2020	2020
	Waste	33,488	35,276	27,488			28,219		3%		3,750	13%

1. Absolute consumption includes all gas, electric, steam, district chilled water, and water consumption for all properties owned during the year, including Joint Venture properties, where UDR had operational control.
2. Data Coverage square footage (SF) for gas, electric, GHG Emissions, and water is SF where UDR has operational control.
3. Operational controlled like-for-like gas, electric, and water consumption includes properties that are stabilized for two calendar years.
4. Absolute Scope 1 emissions includes operational controlled natural gas consumption. Absolute Scope 2 emissions includes operational controlled electric, district chilled water, and steam consumption. We do not include emissions from diesel fuel use in emergency generators or mobile emissions from vehicle on the basis of their de minimis contribution to the total GHG Inventory. We also do not include Scope 1 fugitive GHG emissions from refrigerants consistent with GRESB requirements regarding data estimates.
5. Fixed base year Scope 1 and Scope 2 emissions was calculated using the World Resource Institute Green House Gas Protocol guidelines.
6. SASB defines renewable energy from geothermal, wind, solar, hydro, and biomass that produce more energy than used during the energy production process. The Company's total 2020 renewable energy production is less than 1% of total operational controlled energy consumption.
7. Recycled Water Consumption represents purchased reclaimed water.
8. The World Resource Institute's defines the state of Colorado and California as the only states we currently own properties in that are high risk or extremely high risk water stressed areas.

2 | Environment

LRQA INDEPENDENT ASSURANCE STATEMENT

RELATING TO UDR, INC'S GREENHOUSE GAS INVENTORY AND ENVIRONMENTAL DATA FOR THE 2020 CALENDAR YEAR.

(GRI 102-56,302-1,302-4,303-1,303-3,305-1,305-2,305-5, TCFD 9, 10, 11)

This Assurance Statement has been prepared for UDR, Inc. in accordance with our contract.

TERMS OF ENGAGEMENT

Lloyd's Register Quality Assurance, Inc. (LR) was commissioned by UDR, Inc. (UDR) to provide independent assurance of its Greenhouse Gas (GHG) Inventory and environmental data (the Report) for the 2020 calendar year (CY 2020) against the assurance criteria below to a limited level of assurance using LR's verification procedure and ISO 14064 - Part 3 for greenhouse gas data.

Our assurance engagement covered UDR's operations and activities in operationally controlled properties throughout the United States. Specifically, this engagement covered the following requirements:

• Verifying conformance with:
• • UDR's reporting methodologies for the selected datasets;
  • World Resources Institute / World Business Council for Sustainable Development Greenhouse Gas Protocol: A corporate accounting and reporting standard, revised edition (otherwise referred to as the WRI/WBCSD GHG Protocol) for the GHG data1; and
  • GRESB 2021 Real Estate Reference Guide.
• Evaluating the accuracy and reliability of data and information for only the selected indicators listed below:
• • Direct (Scope 1) and Energy Indirect (Scope 2) GHG emissions;
  • Energy consumption (Direct and Indirect);
  • Water consumption;
  • Waste generated; and
  • Changes over time for environmental data parameters.

Our assurance engagement excluded Scope 1 fugitive GHG emissions from refrigerants, consistent with GRESB requirements regarding data estimates. Scope 1 GHG emissions from diesel fuel use in emergency generators, and mobile emissions from vehicles were also excluded on the basis of their de minimis contribution to the total GHG Inventory. Waste data is currently available for 93% of the total portfolio leasable floor area, and LR was commissioned to verify only the portion of waste data currently being gathered.

LR's responsibility is only to UDR. LR disclaims any liability or responsibility to others as explained in the end footnote. UDR's responsibility is for collecting, aggregating, analyzing and presenting all the data and information within the Report and for maintaining effective internal controls over the systems from which the Report is derived. Ultimately, the Report has been approved by, and remains the responsibility of UDR.

LRQA'S OPINION

Based on LR's approach nothing has come to our attention that would cause us to believe that UDR has not, in all material respects:

• Met the requirements of the criteria listed above; and
• Disclosed accurate and reliable performance data and information as summarized in Table 1 and Table 2 below.

The opinion expressed is formed on the basis of a limited level of assurance2 and at the materiality of the professional judgment of the verifier.

TABLE 1. SUMMARY OF UDR'S GHG EMISSIONS AND ENVIRONMENTAL DATA FOR CY 2020
PARAMETER	QUANTITY	UNITS
Scope 1	GHG emissions1	14,564	Metric Tons CO2e
Scope 2	GHG emissions (Location-based)2	31,198	Metric Tons CO2e
Scope 2	GHG emissions (Market-based)2	27,889	Metric Tons CO2e
Energy3		183,978,887	kWh
Water Consumption	2,261,840	kgal
Waste Generation4,5	35,276	Metric Tons

1. Scope 1 emissions do not include fugitive emissions from refrigerants, consistent with GRESB requirements for data estimates. Additionally, emissions from diesel fuel use in emergency generators and mobile emissions from vehicles are not included on the basis of their de minimis contribution to the total GHG inventory.
2. Scope 2, Location-based and Scope 2, Market-based are defined in the GHG Protocol Scope 2 Guidance, 2015.
3. Energy use includes kWh equivalent energy from electricity, steam, chilled water, and natural gas.
4. Waste value includes municipal solid waste and recycling combined per GRESB reporting requirements.
5. Waste data is currently available for a portion of the properties in UDR's portfolio. Consistent with GRESB requirements for data estimates , LR was commissioned to verify the portion of data currently being gathered, presented as a percentage of the total portfolio leasable floor area with reported data, 93% for CY2020.

1. http://www.ghgprotocol.org/

1. | Assurance Statement

TABLE 2. SUMMARY OF UDR'S CHANGES OVER TIME RELATED TO ENVIRONMENTAL DATA PARAMETERS

PARAMETER	2019	2020	% CHANGE
Energy
Like-for-Like Natural Gas and Steam Change (kWh)1	54,956,252	52,788,083	-4%
Like-for-Like Electric and District CHW Change (kWh)1	61,691,135	57,298,555	-7%
Like-for-Like Energy Change (kWh)1	116,647,386	110,086,638	-6%
Water
Like-for-Like Water Change (kGal)1	1,724,723	1,753,607	2%
Like-for-Like Water Intensity Change (kGal)1, 2	46	47	2%
Waste
Like-for-Like Waste Change (Metric Tons)1,3	27,488	28,219	3%
Other
Percentage of electricity consumption procured from renew-			12%
able sources4
GHG Emissions Change from 2015			-21%
Base Year (percent)5
Like-for-Like Waste Diversion Rate (percent)1			13%

1. UDR defi nes "like-for-like" as operationally controlled gas, electric, water, and waste consumption that includes properties stabilized for two calendar years.
2. Water Intensity is calculated as water consumption divided by number of homes, for properties stabilized for two calendar years.
3. Waste is waste and recycling data combined from properties included in the CY2020 verifi cation.
4. Electricity consumption procurement percentage applies to operationally controlled electricity consumption verifi ed for CY2020.
5. Base year (CY 2015) was not verifi ed by Lloyd's Register. Scope 1 and Scope 2 market-based GHG emissions used for comparison.

LRQA'S APPROACH

LR's assurance engagements are carried out in accordance with our verifi cation

procedure. The following tasks were undertaken as part of the evidence gathering process for this assurance engagement:

LRQA'S STANDARDS, COMPETENCE AND INDEPENDENCE

LR implements and maintains a comprehensive management system that meets accreditation requirements for ISO 14065 Greenhouse gases - Requirements for greenhouse gas validation and verifi cation bodies for use in accreditation or other forms of recognition and ISO/IEC 17021 Conformity assessment - Requirements for bodies providing audit and certifi cation of management systems that are at least as demanding as the requirements of the International Standard on Quality Control 1 and comply with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants.

LR ensures the selection of appropriately qualifi ed individuals based on their qualifi cations, training and experience. The outcome of all verifi cation and certifi cation assessments is then internally reviewed by senior management to ensure that the approach applied is rigorous and transparent.

The verifi cation is the only work undertaken by LR for UDR and as such does not compromise our independence or impartiality.

Signed:

Dated: 27 July 2021

Brooke Farrell

LRQA Lead Verifi er

On behalf of Lloyds' Register Quality Assurance, Inc. 1330 Enclave Pkwy, Suite 200

Houston, TX 77077

LRQA reference: UQA00001495

• reviewing processes related to the control of GHG emissions and environmental data and records;
• interviewing relevant employees of the organization responsible for managing GHG emissions and environmental data and records;
• reviewing data management systems to confi rm there were no signifi cant errors, omissions or mis-statements in the inventory; and
• verifying historical GHG emissions and environmental data and records at an aggregated level for the calendar year 2020.

2 The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Limited assurance engagements focus on aggregated data rather than physically checking source data at sites. Consequently, the level of assurance obtained in a limited assurance engagement is lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

Lloyd's Register Group Limited, its affiliates and subsidiaries, including Lloyd's Register Quality Assurance, Inc., and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'Lloyd's Register'. Lloyd's Register assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with the relevant Lloyd's Register entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract.

The English version of this Assurance Statement is the only valid version. Lloyd's Register Group Limited assumes no responsibility for versions translated into other languages.

This Assurance Statement is only valid when published with the Report to which it refers. It may only be reproduced in its entirety.

Copyright © Lloyd's Register Quality Assurance Limited, 2021. A member of the Lloyd's Register Group.

4 | Assurance Statement