Corporate Responsibility

Environment

Environment consists of our surroundings and our natural world. At Simpson, sustainability and environmental consciousness impact our construction practices and our ongoing operations. Specific areas of focus include energy consumption, greenhouse gas emissions, water consumption, waste management and hazardous material refuse such as refrigerants.

Below are specific examples of Simpson’s focus on the environment:

• Development focus on TOD (transportation-oriented development) and increased density in communities that support smart transportation including bike and car sharing.
• Safety programs and training on maintenance and/or proper operation of equipment and supplies including disposal.
• All communities have recycling programs in place.
• Replacement of fixtures and lights with energy efficient technology (LEDs). In 2023, Simpson installed 5,400 LED light fixtures in 1,089 completed unit renovations.
• 356 electric vehicle charging stations installed by the end of 2023 at 53% of communities, with more than 558,972 total kWhs of electricity used to accommodate residents with electric vehicles.

 Environment ESG Spotlight - Renovations and Rehab Approach

Our commitment to sustainability includes not only new builds, but also our approach to rehab and renovations. In 2023, Simpson invested more than $19 million renovating 1,089 units across 19 properties nationwide. Each property takes approximately three years to renovate and includes installing at least three ENERGY STAR appliances, replacing at least four plumbing fixtures with low-flow versions, and installing at least five LED light fixtures. The team also upgrades flooring to luxury vinyl plank (which lasts five times longer than carpet), uses low VOC paint and glue, and modernizes cabinets with new fronts. As a part of the rehab process, the Simpson team is also diligent about recycling, including internally recycling appliance parts for use in other rehabs and properly disposing of materials such as refrigerant.

Related policies include:

• Climate Risk and Resilience
• Energy Efficiency
• Maintenance Green Checklist
• Net Zero Commitment
• Waste Management and Recycling
• Water Conservation and Management

Social

Social consciousness for Simpson focuses on the interaction with employees, residents and other people in our communities. Simpson believes in employee development, community involvement, labor standards, anti-discrimination, diversity and health and safety. Our communities are demographically diverse and require ‘good neighbor’ behavior by all. View Simpson’s Sustainable Resident Guide.

Below are specific programs designed to maximize Simpson’s social impact:

• Annual Make a Difference Day where all employees have the opportunity to give a day of volunteering in their specific communities – sponsored by Simpson every October.
• Employee health initiatives including company-wide “Fitbit” challenges and progressive insurance coverage encouraging proactive health maintenance.
• Annual resident satisfaction surveys administered by a 3rd party. Survey results and resident comments are used to critique property operations and are often incorporated into annual property operating plan.
• Every community has Facebook, Instagram, X, and LinkedIn accounts with frequent blog posts with topics including health, wellness, and conservation.

Social ESG Spotlight - Job Supports for Maintenance Employees

Maintenance employees at Simpson Housing–including professionals tasked with repairing HVAC, plumbing, and electrical systems and maintaining apartment interiors–are a valued part of the Simpson Housing community. To better support these employees, who work in an industry that can be notoriously volatile in terms of on-call hours and shifting schedules, Simpson provides additional job supports such as set weekly schedules, consistent hours, on-call stipends, quarterly bonuses, and paid travel time. Additionally, maintenance team members can pursue some professional certifications in-house and on-the-clock at Simpson, supporting better work-life balance. 

Social ESG Spotlight - Internal Awards

For nearly a decade, Simpson has run an internal recognition program to spotlight exceptional employees at both the regional and national level. There are eight award categories for the regional level and four for the national level, including Community Team of the Year, Community Manager of the Year, Service Manager of the Year, and Million Dollar Club (excellence in leasing sales). Nominated employees at both the regional and national level are honored and recognized at regional retreats. Since 2014, Simpson has recognized more than 900 individuals and teams with awards. 

Governance

Corporate governance is the right and responsibility of the management of a company for all the various stakeholders in that company. Simpson believes this governance expands to its joint venture partners, its lenders and its vendors and other business partners.

We believe Simpson leads by example in this arena:

• Quarterly meetings with primary Investor to review current operations, financial results and monitor progress towards achieving business plans.
• External audit performed by Ernst & Young with no management comments.
• Annual business plans and periodic strategic plans approved by Investors.
• Internal audit initiatives and activities at both the property and corporate level to ensure best practices.
• Third-party (PricewaterhouseCoopers) quarterly appraisal of properties and overall company valuation.

Related policies include:

• Responsible Development Guidelines
• Sustainable Committee Charter
• Vendor Policy