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Hudson Pacific Properties: A Leader in Sustainability

Hudson Pacific Properties

Hudson Pacific Properties is a visionary real estate company focused on epicenters of innovation for media and tech industries1. The company owns, transforms, builds, and operates marquee office and studio properties in Los Angeles, Silicon Valley, San Francisco, Seattle, and Vancouver.

In 2019, Hudson Pacific achieved 100% carbon neutrality across all operations. This milestone was reached through a combination of energy efficiency, on-site renewables, renewable energy certificates (RECs), and verified emission reduction credits.

Victor Coleman, Chairman and CEO of Hudson Pacific

Victor Coleman, Chairman and CEO of Hudson Pacific, expressed pride in meeting their carbon neutrality goal five years early “Hudson Pacific is committed to leadership in sustainability … but we are just getting started. We will continue to push the envelope to find innovative, tech-enabled solutions to minimize our environmental impacts, with a focus on driving down energy use even further and expanding on-site renewable energy. More than ever, we have a responsibility to our communities to prioritize climate action, and we are dedicated to expanding our efforts and sharing with our peers as we continue this important work.”

Natalie Teear, Senior Vice President of Innovation, Sustainability, and Social Impact at Hudson Pacific, stated, "We're relentlessly focused on energy efficiency, with a long-term renewable energy installation and procurement strategy, an active sustainable technology..."

Natalie Teear, Senior Vice President of Innovation, Sustainability, and Social Impact at Hudson Pacific

Hudson Pacific reached 100% renewable electricity procurement in 2019 by purchasing RECs from a wind farm in Texas. At that time, Natalie shared, “Hudson Pacific's 'Better Blueprint'TM platform recognizes sustainability, health, and equity as interconnected pillars that guide our work and form the foundation of our long-term success. Meeting our carbon neutrality goal—five years ahead of schedule—showcases our commitment to prioritizing climate action and minimizing our environmental impact, with much more work to come as we continue to set bold goals for the future."

The company consumed 577,000 MWh of electricity in the most recent year and reduced their scope 2 emissions by the same amount through renewable energy procurement. To maintain their 100% renewable target, Hudson Pacific plans to expand upon its use of sustainable technologies and further reduce operational carbon.

However, continuing to source 100% renewable electricity is associated with risks through REC purchases alone. One potential improvement to their strategy is the inclusion of RECs with additionality. RECs with additionality refer to purchasing clean energy that contributes to new capacity being added to the grid, rather than from projects already in operation7. This approach could have several positive impacts:

  1. Increasing the speed of grid transition to renewable energy: By focusing on additionality, companies can drive the deployment of new renewable energy projects, accelerating the transition to a cleaner grid.

  2. Mitigating costs over time: RECs without additionality may not provide the same long-term cost benefits as those with additionality, as the latter supports the development of new renewable energy projects.

  3. Enhancing marketing claims for sustainability: RECs with additionality allow companies to make more impactful marketing claims about their sustainability efforts, as they directly contribute to the growth of renewable energy capacity.

  4. Providing scalability for emission reduction strategies: As businesses grow and consume more electricity, RECs with additionality can help scale their emission reduction strategies to cover increased consumption.

By considering the inclusion of RECs with additionality in their strategy, Hudson Pacific Properties can further improve their sustainability efforts and continue to be a leader in the field.


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