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RREG Incorporates ESG Principles into Procurement

At RREG, we are incorporating Environmental, Social and Governance principles into our procurement processes and policies to ensure that our business with suppliers and service contractors is aligned with our own corporate commitments. We annually spend an estimated $330 million on these goods and services on behalf of our clients. Our goal is to engage with vendors who are conducting their business in an environmentally sustainable manner, with appropriate hiring practices, and sensitive to the communities in which we and they operate.

At the beginning of this year, we developed a survey and monitoring program and introduced it to our vendors. We are now able to report specific details of vendor responses and ownership profiles to our clients.  The data collected includes environmental practices, hiring and work practices, community involvement, and DEI related ownership details. 

The total overall controllable spend, which is defined as total property expenses less real estate taxes, insurance, utilities, brokerage fees, legal fees and the like, is approximately $85 million, which represents approximately 26% of overall spend.  When reviewing the vendors with an overall annual spend of approximately $100,000, 91% are including aspects of ESG principles in their business practices.

RREG will continue collecting this data and benchmarking our vendors against ESG principles on a routine basis.