Governance\nHealthcare Realty's Board of Directors provides oversight for our ESG strategy, policies, and performance. Each quarter, the Executive Vice President of Operations provides ESG updates to the entire board. In 2022, the Nominating and Corporate Governance Committee assumed responsibility for ESG supervision. The Audit Committee regularly conducts reviews of key financial risks, including exposure to physical and climate transition risks. The senior management team is actively engaged in assessing and managing risks, including natural disasters, regulatory and market shifts, and environmental compliance.\n\nStrategy\nClimate-related risks and opportunities are considered throughout the lifecycle of our assets. We perform detailed building evaluations during underwriting and due diligence for building acquisitions and developments. Industry best practices for property operations, including emergency response plans, are incorporated into property inspections, budgeting, insurance, and capital planning processes.\n\nWe utilize physical climate risk assessments to identify assets in areas susceptible to weather events and environmental stressors.\n\nClimate-related Risk Management\nOur sustainability, insurance, operations, development, and acquisitions teams assess and manage climate-related risks. We carry comprehensive property insurance to mitigate our exposure to flood, wind, earthquakes, and named storms. To manage potential transition risks stemming from the cost of transitioning to a low-carbon economy, our Corporate Responsibility team actively monitors environmental regulations and public policy. We also track state and local benchmarking and building performance standards.