Kilroy Realty Sees Broader Regionality Requirement for Power Purchase Agreements

Sara Neff, senior vice president for sustainability at Kilroy Realty Corp. (NYSE: KRC), participated in a video interview at Nareit’s ESG Forum 2019 at the Hyatt Regency Coconut Point in Bonita Springs, Florida.

Kilroy, a five-time Nareit Leader in the Light winner for the office category, also won the Most Innovative award in 2018. Neff attributed Kilroy’s success to the fact that “sustainability is integrated across every aspect of our business.”

Neff also commented on Kilroy’s commitment to achieve carbon neutral operations by the end of 2020. The three main steps in the process are focused on energy efficiency, onsite renewables, and large offsite power purchase agreements.

Power purchase agreements need to be financially viable, Neff stressed, and must be the right size for the load a company is trying to offset. She noted that in the early days of power purchase agreements, the thought was that offsite facilities should be located near the properties they provide energy for.

Today, that regionality requirement has become much broader, Neff said, allowing companies to search for deals in areas where clean energy practices can have more of an impact. “Looking broadly for the right deal is really critical,” she noted.

Meanwhile, Neff commented on the tech sector’s move to embrace the goal of carbon neutrality for members of its supply chain, which includes Kilroy.

“We as landlords haven’t really thought of ourselves as part of the supply chains of other people, but now we very much are,” Neff said.