Public Storage

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Carbon per million dollars of physical infrastructure — PP&E plus leased real-estate, including upstream and downstream leased emissions (Scope 3 categories 8 + 13). The most complete view of physical-asset carbon intensity, relevant for REITs and infrastructure-heavy firms.

Bolstered internal renewable energy team in 2022. Roof-mounted solar installations at 206 properties (up from 71 in 2021), with 423 additional properties under contract for installation. Pursuing community solar (55 properties under contract in Maryland and Illinois) and analyzing battery storage and microgrids. Goal: solar on 1,000+ properties by 2025. Solar generated 11.5M kWh in 2022 (3.6% of total energy use).

The IEMA GHG Management Hierarchy framework is used (Eliminate, Reduce, Substitute, Compensate). Public Storage prioritizes elimination and reduction over offsets/compensation. No durable carbon removals (DAC, BECCS, biochar) program is disclosed; the firm is instead investing through Energy Impact Partners in deep decarbonization R&D including zero-carbon cement and steel.

• Building envelope efficiency upgrades

  High-efficiency HVAC, internal temperature band controls, high-reflectivity 'cool' roofs, and thermal mass design. All redevelopment properties include efficiency upgrades (ongoing since 2013). Property of Tomorrow program (~$600M) funds visual/physical branding upgrades with environmental benefits.

• On-site solar generation

  Roof-mounted solar at 206 properties generating 11.5M kWh in 2022 (vs 6.0M kWh in 2021, +91%). Commitment to expand to 1,000+ properties by 2025 with 423 additional under contract. Solar offsets individual property electric utility costs and generates income via leased rooftop space.

• Digital/paperless operations and hybrid work

  Digital operating model with hybrid work and virtual call center, paper-less operations, plastic-less operations, sustainable supplies. Digital Property Management at 400+ properties (growing) enhances environmental impact control. Reduces emissions through elimination per IEMA hierarchy step 1.

• LED lighting conversion across all properties

  Exterior LED lighting completed at all properties. Interior LED lighting in progress with nearly 2,500 properties completed; will complete remaining properties by end of 2023. Sensored on-demand lighting deployed. Primary driver (along with solar) of the 29% like-for-like carbon emissions intensity reduction over four years.

• LED lighting conversion (interior + exterior)

  Completed exterior LED lighting at all properties. Interior LED conversion in progress with nearly 1,500 properties completed. Sensored 'on-demand' lighting combined with LED is the primary driver of the 18% three-year energy intensity reduction and 27% three-year carbon emission reduction.

• Low-water landscaping conversion

  Converted 234 properties to low-water use landscaping in 2021. Drought tolerant and native landscaping, efficient plumbing, water run-off controls and storm water retention drove a 13% three-year reduction in water intensity.

• Property of Tomorrow efficiency upgrade program

  Multi-year, $600M+ Property of Tomorrow program upgrades older properties with efficient HVAC, LED lighting, high-reflectivity 'cool' roofs, and other energy efficiency measures. Enhanced 318 properties in 2021. All redevelopment properties include efficiency upgrades (ongoing since 2013).

• Centralized access control and digital platform

  Completed remote access systems (entrance gate, doors, elevators) at all properties. Proprietary operating platform enables centralized workflows, monitoring and control of systems, and paperless processes across the company.

• LED lighting conversion across portfolio

  All exterior property lighting converted to LED as of 2019. Interior LED conversion in progress with over 600 properties completed through 2020. Motion-sensored 'on demand' control allows lighting only when employees/customers are navigating zones. In 2020, completed LED conversion at 306 additional properties.

• Low-water irrigation and landscaping

  Low-water irrigation system conversion completed at 91 properties in 2020. Initiatives include drought-tolerant and native landscaping, efficient plumbing systems, water run-off controls, storm water retention, and one restroom per property on average. Resulted in 13.8% like-for-like water consumption reduction in 2020 vs 2019.

• Property of Tomorrow & redevelopment upgrades

  Property of Tomorrow program (started 2018) upgrades older properties with efficiency improvements; ~300 properties upgraded through 2020, targeting completion by 2025 at total cost exceeding $600 million. Since 2013, ~$600 million allocated to redevelopment that includes resilience measures. Upgrades include HVAC (30,000+ units), lighting, plumbing, irrigation, landscaping, solar power, elevators (2,400+), and building envelope.

• Centralized access & environmental controls

  Completed installation of centralized access system (entrance gates, doors, elevators) at all properties in 2020 — the only self-storage REIT with portfolio-wide centralized access control. System enables remote monitoring and identification/remedy of inefficiencies (e.g., doors left open) that would otherwise cause negative environmental impacts such as greater HVAC use.

• Supplier sustainability engagement

  Added sustainable behavior clause to supplier and vendor contracts (Completed). Sent questionnaires to suppliers and vendors on owner and service provider diversity. Engaged corporate and property-level poster vendor that utilizes eco-friendly materials.

• Embodied carbon reduction in construction (Scope 3 cat 2)

  Sourcing environmentally friendly building materials available today, and allocating capital and additional resources towards deep decarbonization, including the development of low-carbon (zero carbon) cement and steel in conjunction with Energy Impact Partners. Eventual materials substitution depends on production methods still being developed.

• Embodied carbon reduction in development supply chain

  Partnered with Energy Impact Partners to allocate capital toward deep decarbonization including development of zero carbon steel and cement. Seeking environmentally friendly building materials to reduce embodied carbon in property development and redevelopment.

• Green building / LEED-aligned new construction

  Aligning new properties with LEED standards. Five properties have received LEED certifications (Silver to Gold) and an additional five are on track. All redevelopment properties include efficiency upgrades since 2013. Refining green building implementation strategy to strengthen environmental leadership in self-storage.