Brookfield

Brookfield Office Properties Annual Report 2011

Corporate Responsibility Report 2011

A MESSAGE FROM RIC CLARK

Along with delivering consistently strong financial results and a commitment to operational excellence, corporate responsibility is a priority for Brookfield Office Properties Inc.

Our 2011 Corporate Responsibility Report reflects Brookfield's resolve to challenge ourselves continually to promote sustainable growth, invest in green building technologies, be transparent in all our operations, and make positive contributions in the communities where we live and work. Although this report provides a look back at the progress we made on these goals in the past year, the company continues to look forward, raising our own expectations as an industry leader to have a positive and sustainable impact in the community and on the environment.

Every day, in every city in which we operate, Brookfield is investing in green building innovations such as energy-efficient systems, environmentally sound construction technologies, and strategies to reduce our carbon footprint. We are also expanding our long-standing award-winning arts programs and initiatives to support local schools and non-profit organizations.

At Brookfield, we believe that these efforts promote the long-term interests of all our stakeholders, including employees, tenants, business partners, investors, local communities, government officials, and the commercial real estate industry at large. We also recognize that this commitment requires an open conversation and collaboration with each of these constituencies. To that end, we invite your views on the progress we have made to date, and equally important, what we can and should be doing in the years ahead.

Sincerely,

Ric Clark
Chief Executive Officer
Brookfield Office Properties

INTRODUCTION

At Brookfield Office Properties Inc., responsible business practices are a top priority and an essential component of our continued success. This commitment is part of our company culture and includes defined goals and metrics to ensure that we operate to the highest standards in a transparent and collaborative manner.

This pledge includes meeting responsible global environmental standards and investing the necessary resources to make positive and lasting impacts in the cities in which we operate worldwide.

Our Corporate Responsibility program is focused on three areas of activity:

  1. Environment Protection & Sustainable Growth
  2. Community Engagement and Brookfield's Arts & Events Program
  3. Fostering a Culture of Opportunity, Giving and Volunteerism

These areas of activity are integrated across the company and ingrained in our long-term business strategy.

Environment Protection & Sustainable Growth

At Brookfield, our mission is to provide the highest quality commercial office space, in concert with an unwavering commitment to deliver responsible environmental solutions and innovative environmental strategies to our tenants, shareholders, and the communities in which we work.

Environmental initiatives are a major component of Brookfield's strategic business plan. Environmental stewardship is a high priority for us and we treat it as a key business objective, along with revenue growth and risk management. Decisions we make as a company balance both our fiscal and our environmental responsibilities.

Our ultimate objective is to maximize energy and resource efficiency and environmental stewardship at our properties, together with the wellness and safety of our tenants, employees, and those that live in the neighborhoods that house our properties.

We achieve this through an integrated strategy based on three principles that are embedded in the Brookfield corporate culture. These tenets are the foundation of our commitment to environmental responsibility.

Principle 1

To operate, develop, retrofit, redesign and renovate properties to achieve optimum energy efficiency, occupant satisfaction and reduced carbon emissions.

Principle 2

To incorporate innovative environmental strategies in order to achieve best-in-industry environmental performance in all new office developments.

Principle 3

To seek best-in-class environmental certifications, actively participate in green industry organizations, and support new initiatives that foster the energy and resource-efficient operation of office buildings and environmentally sustainable communities and practices.

In 2011, we made significant strides in further integrating green-building practices throughout our portfolio and in executing strategies to provide the highest-quality office space in healthy, sustainable environments with low operating costs.

LEED® Certification - U.S. and Canada

In North America, Leadership in Energy & Environmental Design (LEED®) is the industry standard for sustainable, green properties. The standard rates the environmental performance of many facets of real estate, including: 1) Existing buildings' operations and maintenance (LEED EB O&M); 2) the Core & Shell of new developments (LEED CS); and 3) the Commercial Interiors of specific tenant spaces (LEED CI).

In 2011, Brookfield secured 10 new LEED certifications at the following North American properties:

In 2012, the company anticipates achieving LEED certification at the following North American properties:

These 12 properties join the 20 that are already LEED-accredited, bringing current and target LEED-certified buildings to 54% of our North American portfolio.

In addition, we have pledged to build all future developments in our pipeline - more than 16 million square feet globally - to a minimum standard of LEED Gold or its local equivalent.

LEED-Accredited Professionals

The company's commitment to the LEED program extends beyond our buildings and planned developments to our workforce. Many of our property management professionals have sought out and secured personal LEED certifications, including LEED AP (Accredited Professional) and LEED GA (Green Associate), through further study and testing on green building practices. This education ensures that the people designing, developing and operating our buildings have the knowledge to do so in the most energy-efficient, sustainable manner.

In 2011, the total number of LEED-accredited professionals at Brookfield more than doubled from 10 to 24. Brookfield personnel who achieved LEED accreditation (LEED AP or LEED GA) in 2011 are:

Green Star and NABERS - Australia

In September 2010, Brookfield acquired an interest in a portfolio of 19 office properties in the Australian cities of Sydney, Melbourne and Perth. Last year was our first full-calendar year managing these assets.

In Australia, Green Star and NABERS (National Australian Built Environment Rating System) are the two governing programs that certify sustainable building credentials, comparable to LEED in North America. Green Star evaluates environmental design and the construction of buildings. NABERS measures the energy performance, water performance and carbon footprint of existing properties over a 12-month operating period.

Green Star1 and NABERS Ratings

Sydney

Property NABERS
Energy
NABERS
Water
Green Star -
Office Design v2
Green Star -
As Built v2
52 Goulburn Street 5.5 stars 4 stars N/A N/A
American Express House 5 stars 4 stars N/A N/A
Darling Park I 5 stars 3.5 stars N/A N/A
Darling Park II 5 stars 3 stars N/A N/A
E&Y Centre 4.5 stars 3.5 stars N/A N/A
IAG House 4.5 stars 3.5 stars 5 stars 4 stars
KPMG Tower 5 stars 1 stars N/A N/A
NAB House 5 stars 3.5 stars N/A N/A
One Shelley Street  N/A2 N/A2 6 stars  6 stars 

Melbourne

Property NABERS
Energy
NABERS
Water
Green Star -
Office Design v2
Green Star -
As Built v2
Bourke Place 3.5 stars 2.5 stars N/A N/A
Defence Plaza 3.5 stars N/A N/A N/A
Southern Cross East 4.5 stars 3 stars N/A N/A
Southern Cross West 4.5 stars 5 stars 5 stars N/A

Perth

Property NABERS
Energy
NABERS
Water
Green Star -
Office Design v2
Green Star -
As Built v2
235 St. Georges Terrace 5 stars N/A 5 stars N/A

1 All buildings designed prior to introduction of the Green Star rating tool in 2003 are not applicable for this rating.
2 Newly constructed building currently in exemption period (less than two years) for NABERS rating.

Environmental achievements within the Australia portfolio include:

NABERS Energy - 6 star maximum

NABERS Water - 6 star maximum

Green Star - Office Design v2 - 6 star maximum

Green Star - Office As Built v2 - 6 star maximum

Green Skills Training, Green Star and NABERS Energy Accredited Professionals (Australia)

Brookfield, in partnership with the University of New England in Australia, developed a training program designed to provide our staff essential knowledge and skills in monitoring energy usage and implementing behavioral and process change to drive efficiency within the properties. This education ensures that the people operating our buildings have the knowledge to do so in the most energy-efficient, sustainable ways.

In 2011, six professionals at Brookfield attended this course,increasing the total number of staff who have completed the course to 17. Brookfield personnel who completed the course in 2011 are:

As of 2011, two professionals at Brookfield have attained NABERS Energy Accreditation for assessing a building's performance in accordance with the NABERS energy protocol. They are:

Green Star Accredited Professionals (GSAP) - Australia are recognized for their advanced knowledge, experience and competency with the Green Star environmental rating system. Ongoing training and a number of compliance criteria are required under the Continuing Professional Development (CPD) program.

In 2011, two professionals at Brookfield had achieved this accreditation:

Energy Efficiency Innovations

Brookfield sets rigorous energy efficiency standards at our properties around the globe. We continue to lower energy consumption through the research, procurement, and implementation of advanced products and systems, as well as through workplace initiatives. The company is in the industry vanguard of utilizing innovative and effective tools and metrics to curtail energy use and carbon emissions. Our goal is to meet the dual objectives of sustainable energy use and lower operating costs, without compromising our tenants' comfort and business operations. Following are three examples of these initiatives:

Renewable Energy Credits

In 2011, we began a program to purchase renewable energy credits at select properties in our portfolio. The three inaugural properties in this initiative were: One World Financial Center in New York City; HSBC Building in Toronto; and, Bankers Court in Calgary.

When procured, renewable energy credits help fund facilities - such as wind farms - that produce cleaner energy, making them more financially sustainable and providing a stimulus for expansion and future development.

Alternative Transportation

Brookfield recognizes that a commitment to environmental excellence must extend beyond the walls of our office buildings. To that end, we have expanded programs to offer a variety of transportation options - such as carpooling, public transportation, biking, and electric-vehicle parking - for our employees and tenants as they travel to and from work. We hope that by working to change traditional car commuting habits, we will reduce traffic congestion, improve air quality and lower greenhouse gas emissions in the communities in which we operate.

A recent survey of our properties across Canada indicated that 90% of our occupants are now using commuting alternatives to single-occupant automobiles on a routine basis. One of our most successful transportation programs is our Alternative Transportation program, launched in 2011 in Toronto, Calgary and Vancouver, which offers online carpool zones and ride-matching services for our tenants.

Electric Vehicle Charging Stations

After the success of our first electric vehicle charging stations in our Houston parking garages, we expanded the program in 2011, installing charging stations in select garages in Washington, DC, Los Angeles, Boston, New York City and Toronto. We have set a goal to have at least one charging station in each of our North American operating markets by the end of 2012.

Charging stations promote the use of hybrid and fully electric cars, which consume less fuel and reduce dependency on fossil fuels. Tenants who own electric cars are able to recharge their vehicles during work hours.

Featured Properties

One World Financial Center, New York City<

One World Financial Center, New York City

At 1.7 million square feet, One World Financial Center - one of the four office towers comprising the iconic 8-million-square-foot World Financial Center complex in Lower Manhattan - became the largest office building in New York to receive a LEED EB:OM Gold designation upon certification in May 2011.

One World Financial Center earned 99% of the LEED credit points necessary to achieve the Gold standard. Making the feat all the more impressive is the traditionally high standard in New York City for achieving environmental certifications.

Several facets of the property's operational best practices and recognizedenvironmental performance were highlighted by the U.S. Green Building Council during the LEED certification effort:

One Shelley Street, Sydney

One Shelley Street, Sydney

The One Shelley Street office building in Sydney - which serves as Macquarie's Australian headquarters - achieved a 6-star Green Star rating from Australia's Green Building Council. Compared with an average Sydney office building, One Shelley Street emits 50% less greenhouse gas emissions, saves the equivalent of 2.5 Olympic swimming pools of water per year, and has a significantly improved Indoor Environmental Quality (IEQ).

Built in 2009 at a coveted location close to the water at Sydney's King Street Wharf, One Shelley Street was a prime candidate for some of the most original and thoughtful sustainability features ever to be showcased in a complex of this kind. The property comprises retail and two low-rise office buildings.

The property was designed and constructed with world-leading sustainable design principles:

These, and many of the other innovations featured in this property, are very much part of the "designed-in" sustainability strategies Brookfield utilizes aimed at generating best-in-industry environmental performance.

Bankers Hall, Calgary

Bankers Hall, Calgary

The three-building Bankers Hall complex is one of the most prominent business addresses in downtown Calgary. The property is registered in the LEED EB:OM program and is currently targeting the Gold level of certification, with accreditation expected in 2012.

The property meets all ten prerequisites of LEED EB:OM:

  • Energy efficiency best management practices: planning, documentation, and opportunity assessment
  • Minimum energy efficiency performance
  • Refrigerant management for ozone protection
  • Sustainable purchasing policy
  • Solid waste management policy
  • Minimum indoor air quality performance
  • Environmental tobacco smoke control
  • Green cleaning policy
  • Water metering and minimum indoor plumbing
  • Fixture and fitting efficiency

In addition to meeting the minimum requirements, the property has implemented other policies and programs such as enhanced green cleaning procedures and a multifaceted alternative transportation program available to all occupants.

The Alternative Transportation program has aided the property in determining that 84% of building occupants use sustainable modes of travel (e.g. bicycling, carpooling, public transit) when commuting to and from the workplace. Furthermore, the property has verified and registered its carbon emissions under an accredited voluntary program, and it ranks in approximately the 80-85th percentile in energy performance among all buildings in North America based on Energy Star guidelines.

In addition to implementing new environmental policies and programs to become LEED certified, other green amenities and highlights at Bankers Hall include:

Since 2007, Bankers Hall has managed to reduce the amount of waste sent to landfill annually by 24%. The building's recycling efforts contribute to an annual savings of 2,108 cubic meters of landfill space.

235 St. Georges Terrace, Perth

235 St. Georges Terrace, Perth

Located in the elegant Bishops See precinct of Perth and completed in February 2009, 235 St. Georges Terrace is an 192,000-square-foot, nine-story office tower that was designed and constructed with a specific environmental target - to achieve a 4.5-Star NABERS Energy Base Building rating.

A number of environmental elements were incorporated in the design process with a focus to provide a visual, floor-to-ceiling glazing solution with a high-performance fa├žade and day-lighting zones to maximize solar energy. This innovation was supported by detailed thermal modeling of design options in optimizing the facade and building orientation, as well as the selection of high-efficiency chillers and air handling units.

Following an exhaustive 12-month monitoring process, in 2011 the building was able to exceed expectations and deliver a 5 Star NABERS Energy Base Building rating to complement its 5 Star Green Star - Office Design v2 rating.

The resolve of our operations staff in Perth, in partnership with our joint property owners, and the willingness of tenants to embrace the environmental initiatives inherent in the building's design, resulted in 235 St. Georges Terrace emerging as one of the most desirable commercial addresses in Western Australia.

Measuring Our Progress

World Green Building Council Congress

Beyond operating energy-efficient buildings, our executives and property-management personnel routinely take leadership positions in green building organizations to advance and raise awareness of the positive impact of sustainable real estate.

Brookfield took a leadership role at the World Green Building Council Congress (Congress), the industry's most influential annual green building gathering in 2011 in Toronto. The World Green Building Council (WGBC) is the largest international organization influencing the green building marketplace; it has 30,000 member companies and is a union of 89 national Green Building Councils (GBCs) from around the world.

Brookfield was actively involved in the Congress, sponsoring the Global Green Building Awards dinner and hosting a brainstorming event at First Canadian Place (FCP). That building, the tallest in Canada, is currently undergoing a massive re-cladding and plant upgrade which will lead to its LEED certification. We also hosted a workshop for FCP tenants on ways to reduce energy use.

Tom Farley, Brookfield's president and global chief operating officer, spoke at the awards dinner. Much of Tom's speech centered on engaging stakeholders in green building practices and fostering a greater awareness - specifically around the long-term value of green projects and programs. "I believe passionately that efficient, sustainable design more than pays for itself over time," Tom noted. "Even the companies who are doing great work aren't doing a great job talking about it in terms of value to the customer."

Tom also noted that one-third of tenants working in LEED buildings in North America did not know they were in a LEED building. Based on this statistic, there is clearly room for our industry to further engage and educate tenants and other stakeholders.

In addition to Tom, Brookfield executives Kurt Wilkinson (Australia), Brian West (Canada), and Rich Bachia (US) participated in panels and roundtable sessions at the Congress.

Energy Star

Brookfield utilizes Energy Star to measure and monitor energy performance as well as to ensure continual progress in limiting emissions of greenhouse gases.

Brookfield has made great strides in the past few years: At the end of 2011, 48 properties are registered in the Energy Star program, up from five properties just four years ago. We were proud to maintain our goal of 80% Energy Star certification in the U.S. portfolio in 2011.

Although Energy Star certifications are currently only given out in the U.S., Brookfield's goal in Canada is to maintain all Energy Star scores above the LEED threshold of 69 by running routine energy audits and identifying areas for major upgrades. Currently, 89% of our buildings in Canada have achieved a score above this threshold.

Brookfield also introduced a tenant sub-metering program in Canada which isolates tenant-specific electricity use, enabling them to understand and better control and monitor individual electrical load profiles. Utility data reports are sent to tenants to assist them in gauging their energy consumption. With this data, we partner with our tenants to review strategies for lowering usage and realizing tangible cost savings.

Utility Management System

In 2011, Brookfield implemented a Utility Management System in Canada and Australia to streamline the utility bill collection/verification process and improve the quality of the source data needed to measure electricity, natural gas, steam, and water consumption.

As a result of this system, Brookfield can now begin thinking about setting practical consumption targets and report on overall consumption across the portfolio.

Carbon Disclosure Project

The Carbon Disclosure Project is the global business community's foremost initiative in the tracking and reduction of greenhouse gas (GHG) emissions. Brookfield has pro-actively participated in the Carbon Disclosure Project since 2007. For the past three years, an independent third party, ClimateCheck, has audited Brookfield's GHG emissions to confirm the accuracy of our emissions data.

We are pleased to report that from 2008 to 2010, Brookfield has achieved an 8% reduction in greenhouse gas emissions through our various energy-reduction strategies. As reported by ClimateCheck, Brookfield's total GHG emissions in tons of CO2-equivalent (t CO2e) for its entire managed portfolio from 2008 to 2010 are listed in the following table.

Data from 2011 has been collected and is currently under audit; it will appear in 2012's annual and corporate responsibility reports.

Emissions Source GHG Emissions (t CO2e) Proportion of Total Emissions
Scope 1 Emissions 2010 2009 2008 2010 2009 2008
Stationary Fuel Use - Natural Gas 53,718 59,315 46,702 7.9% 8.5% 6.4%
Stationary Fuel Use - Generators 2,284 2,590 1,514 0.3% 0.4% 0.2%
Company-Owned Vehicles 5 6 7 0.0% 0.0% 0.0%
Fugitive Emissions from Refrigeration / A/C Equipment 2,179 0 205 0.3% 0.0% 0.0%
Total Scope 1 Emissions 58,186 61,911 48,427 8.6% 8.9% 6.6%
Scope 2 Emissions
Emissions from Purchased Electricity 553,724 562,445 601,240 81.8% 81.0% 81.8%
Emissions from Purchase Steam 64,641 70,326 85,365 9.6% 10.1% 11.6%
Total Scope 2 Emissions 618,365 632,771 686,605 91.4% 91.1% 93.4%
Total Emissions 679,551 694,682 735,032 100% 100% 100%

Stakeholder Communications

Brookfield recognizes the importance of communicating our various corporate responsibility initiatives to tenants, investors, employees, government officials, and other valued stakeholders. We include updates on our practices and programs on the Brookfield corporate website (www.brookfieldofficeproperties.com), in our annual report, in presentations to investors, in correspondence with tenants, in press releases, and in marketing and other promotional materials.

Our corporate website features a robust sustainability section that is updated regularly with environmental achievements and certifications. The sustainability section of the website can be accessed by clicking on "Our Green Portfolio" on the homepage.

Each time Brookfield achieves an environmental milestone, the news is communicated both externally and internally through the company intranet. This continued discourse reiterates our strong commitment to sustainability excellence and building upon our previous successes.

Brookfield's primary marketing brochure includes a dedicated section highlighting our commitment to sustainability and recent achievements in this area. This allows tenants, investors and other stakeholders to view the sustainable practices we have incorporated into our office buildings. In addition, we have built interactive marketing suites in all of our major operating cities, with a robust, engaging sustainability chapter as part of the standard presentation to prospective tenants.

Likewise, we apprise tenants on the environmental profile of their respective properties and host onsite events to celebrate milestones, such as LEED certifications, and further educate them on green practices within the workplace.

Recognition & Additional Initiatives

Excellence in Property Management: BOMA 360 Program (US)

Operating our buildings in energy-efficient ways is just one facet of our comprehensive property-management program. Through our participation in the BOMA 360 Program - a comprehensive review and appraisal of property operations and management in office and industrial buildings - we have further established Brookfield as an industry leader in property management and the landlord of choice for tenants around the globe.

Since its inception in 2009, more than 300 buildings in the U.S. have been BOMA 360 certified - 30 of which are owned and managed by Brookfield. BOMA 360 evaluates six major criteria: 1) building operations and management; 2) life safety/security/risk management; 3) training and education; 4) energy; 5) environment and sustainability; and 6) tenant relations/community involvement.

With 30 designations, Brookfield is the industry leader among owners who operate and manage their buildings. To date, no other landlord/manager has reached even 20 BOMA 360 certifications.

The following Brookfield buildings have received BOMA 360 designation:

Excellence in Property Security (US)

We believe that providing effective, non-intrusive security is of the utmost importance for our tenants, employees, and all those who visit our properties.

In June 2011, Brookfield was named "Outstanding Private Partner" by the Urban Area Security Initiative (UASI) - a program of the U.S Department of Homeland Security - at the National UASI Homeland Security Conference in San Francisco.

The UASI awards recognize outstanding performance in homeland security program management and practice. Brookfield was recognized for its private-sector leadership and excellence in managing security across its 60-building U.S. office portfolio - the majority of which are located in the central business districts of the country's largest cities.

"Winning the UASI award is an honor and a testament to Brookfield's commitment to providing the safest and most secure environment for those that inhabit our buildings as well as the surrounding community," said Ralph Blasi, vice president and national director of security at Brookfield. "Providing secure environments without compromising tenant comfort is a corporate mandate and is executed by our dedicated security teams at each of our properties."

Brookfield's nomination highlighted various security initiatives and community leadership roles taken on by the company's security personnel in each of its U.S. operating cities: New York City, Washington, DC, Boston, Houston, Minneapolis, Denver and Los Angeles.

Additional Recognition

In 2011, Brookfield was once again included in the FTSE4Good Index, which provides investors around the world the assurance that they are supporting companies with a strong focus on environmental, social and governance (ESG) practices.

We were named to the list of "Top 50 Most Socially Responsible Corporations in Canada" by Jantzi-Maclean's for the third straight year.

All of our properties in Canada have received the BOMA BEST Environmental Certification.

BOMA recognized 75 State Street in Boston with the TOBY "The Office Building of the Year" - Earth Award, which identifies properties that have made significant strides in energy efficiency and recycling, in addition to promoting indoor air quality and using green products to maintain the facilities. Though its environmentally responsible practices, 75 State Street reduced its energy consumption by 3.94M kWh, saving more than $700,000 per year.

Fox Business News broadcasted live from the mechanical floor atop our 54-story One Liberty Plaza tower in Lower Manhattan in March 2011. The segment focused on innovative energy reduction strategies in high-rise commercial buildings and citied One Liberty Plaza for its newly installed control room, where engineers can change all aspects of HVAC, lighting, and other systems in any part of the building with the click of a button, or remotely via the web. The automated system also monitors 3,000 sensors throughout the building and caps how much energy can be used in a given timeframe, allowing the building to reduce its energy consumption by approximately 20% annually.

Better Building Partnership

In 2011, Brookfield and major property peers came together with the City of Sydney to lauch the Better Buildings Partnership (BBP), an initiative that seeks to reduce carbon emissions from buildings in the region. The Sydney BBP, modeled on similar programs operating successfully in London and Toronto, will engage with government policies that support a future of low greenhouse gas emissions.

Community Engagement and Brookfield's Arts & Events Program

Brookfield's Corporate Responsibility strategy goes beyond the development, ownership and operation of sustainable commercial real estate. We also take measures to enhance the communities in which our buildings are located by developing and activating innovative architecture and creating inviting, grand public spaces. Within those spaces Brookfield commissions public arts programs and events, enhancing experiences for both office workers and visitors alike.

Community Engagement: Arts Brookfield

Beyond our role as a commercial landlord, we animate the public spaces at our flagship properties in major cities across North America with acclaimed free visual and performing arts. World-class concerts, exhibitions, fairs and festivals are presented year-round and free-of-charge.

Artists are given the opportunity to work in new and unusual spaces to provide unique cultural and educational experiences for the public. Our award-winning Arts & Events program has existed for more than two decades and attracts approximately 500,000 visitors per year in the company's flagship markets of Toronto and New York, with thousands of others attending similar programs in Calgary, Los Angeles, Houston and Denver. More information can be found at www.artsbrookfield.com.

The largest year-round, free performing arts and cultural presenter on the east coast, Arts Brookfield at the World Financial Center is a leading showcase in New York for visual and performing arts - from the intimate to the spectacular - presenting both emerging and established artists.

With its waterfront Winter Garden as a focal point, the artistic process is made accessible in an open and interactive manner to workers, residents and the broader public of cultural consumers.

Annual events, including the Bang on a Can Marathon, The Tribeca Film Festival "Drive-In," Summer on the Plaza concert series, Canstruction, New Sounds Live!, and the Winter Garden Holiday Lighting draw thousands of visitors. In 2011, Elton John gave a free performance on the WFC Plaza to open the Tribeca Film Festival which thousands enjoyed.

In its 23-year history, Arts Brookfield at the World Financial Center has presented world, U.S. and New York premieres, commissioned unique works, and launched works that have gone on to other major New York City cultural venues. Exhibitions and installations from a diverse range of museums and festivals have celebrated the arts of individual cities, countries and cultures.

Highlights from 2011 include the Hector del Curto Tango Orchestra, The Nerve Tank: "The Attendants," Rufus Wainwright and the New York City Opera, Streb Extreme Action Company Featuring the Human Waterfall, Mos Def and the Brooklyn Philharmonic, the Pongtopia! table tennis exhibition, and the inaugural Lowdown Hudson Blues Festival Featuring Taj Mahal and other noted blues artists. Many of these programs included charitable components and activities designed to specifically benefit the local community.

As the public and retail areas of the World Financial Center undergo a $250 million renovation from 2011-2013, Brookfield is proud to continue its arts programming without interruption.

Brookfield's Midtown Manhattan Arts programming at Grace Plaza at 43rd St. was re-launched in 2011 following upgrades to the plaza that made the venue more inviting and conducive to public events. Australia's Strange Fruit and Michael Moschen performed in July, and Okamoto Studio live-carved 14 ice sculptures for an installation in December.

Other noted events from around North America in 2011 included Philip Beesley's "Sargasso" installation at Toronto's Luminato festival at Brookfield Place, the "Wisdom" photography exhibition at our three downtown Los Angeles properties, and the "Band of Artists" group show at Republic Plaza in Denver.

In Australia, Brookfield supported Arts Project Australia by transforming a vacant space with pieces of art. Arts Project supports artists with intellectual disabilities, promoting their work and advocating for inclusion within contemporary art practice. Utilizing the available space, Brookfield created a venue where artworks could be viewed by the community and public in passing.

In May 2011, Brookfield hosted the largest collection of artworks by Jeffrey Smart - one of Australia's most renowned living artists - at 235 St. Georges Terrace in Perth. The 10-day exhibition displayed drawings, lithographs and paintings collectively valued at $30 million.

Through its arts and cultural programming, as well as carefully selected pop culture and consumer-focused offerings, Arts Brookfield continues to provide lively and vibrant free events in many of our core commercial markets, and we will continue to expand those programs.

Fostering a Culture of Giving and Volunteerism

Brookfield instills a culture of philanthropy and volunteerism among its workforce. In addition to our corporate giving programs supporting local organizations, the company matches employee donations.

Brookfield employees are active volunteers in their communities. We encourage and support this personal involvement by providing philanthropic outlets for our workforce, both within and outside of the office. We have long-standing partnerships with organizations such as the Special Olympics, Habitat for Humanity, Taronga Zoo (Australia) and the United Way. Brookfield's Canadian division alone has raised more than C$3 million for the United Way in the last decade between employee donations and company matching funds.

Charitable Giving

We support impactful charitable organizations in the communities in which we operate, especially those groups that are focused in the areas of education (including programs that focus on the real estate sector), environmental protection, local healthcare, and arts and culture. The company pro-actively seeks new organizations to partner with and provide financial and hands-on support.

Matching Gifts

To make individual employee contributions more meaningful and to encourage employees to participate, we allocate a portion of our charitable giving budget to a matching gift program. Qualified donations by our employees to non-profit organizations and educational institutions are eligible for a dollar-for-dollar match from Brookfield.

An Ongoing Commitment

We strive to build upon our successes and identify new opportunities to implement corporate responsibility strategies.

Our goal is to be recognized as a leader and innovator in the field of energy conservation as we operate and develop the most sustainable commercial properties in the United States, Canada and Australia.

We will continue to be active in enhancing the communities we operate in through our arts program and through philanthropic efforts.

For more information about Brookfield's sustainability programs and corporate responsibility practices, please visit our website at www.brookfieldofficeproperties.com/corporateresponsibility.