Better Health for All

AvalonBay Communities demonstrates a comprehensive and transformative commitment to preventative health and overall wellness. Its entire health-related focus is on prevention, with properties designed to promote healthy living. This includes 53% of properties in very walkable neighborhoods, 67% near parks, and the provision of fitness centers, pools, and bike storage.

The company has 69 communities certified for healthy living environments, with an additional 61 pursuing certification, and offers free fitness classes and wellness programs. The company's core business, apartment communities, does not generate revenue from products with negative health outcomes, and its business model has been oriented towards health improvement for over three years. Operations generate substantial positive health externalities, including an annual community investment of $2.3 million focusing on disaster relief, affordable housing, and support for at-risk populations. This includes over $2 million in contributions to the American Red Cross and nearly 7,500 pints of blood donated. Employees have volunteered over 57,000 hours since 2015, supporting local non-profits, organizing blood drives, and community clean-ups. The company also supports community health through the Arlington Free Clinic, with employees volunteering over 3,200 hours, contributing to public health education. The company's products do not have direct safety implications, health risks requiring disclosure, addiction potential, or involve health data, clinical trials, or pharmaceutical patents.

Fair Pay & Worker Respect

AvalonBay Communities' CEO compensation for 2023 was 117 times the median employee's pay.

The company settled a Fair Chance Act violation for $60,000 in 2021, revising its policies to comply with NYC Human Rights Law. AvalonBay emphasizes diversity, with 40% female and 64% non-White associates, and supports Associate Resource Groups. The company conducts annual Associate Perspective Surveys and prioritizes safety training and programs, linking construction safety compliance to compensation. It has also earned a top score on the Human Rights Campaign Foundation’s Corporate Equality Index for LGBTQ+ equality.

Honest & Fair Business

AvalonBay Communities Inc. maintains a comprehensive whistleblower policy, which includes a third-party managed EthicsPoint Hotline for anonymous and confidential reporting of financial fraud, abuse, or Code of Business Conduct and Ethics violations.

The policy ensures non-retaliation for good faith reporting, and Internal Audit and the Audit Committee are immediately notified of any reports. Claims are reviewed promptly regardless of the suspected wrongdoer's position. The company also has a U.S. Economic Sanctions Compliance and Anti-Corruption Policy, revised on June 17, 2022, which strictly prohibits all forms of corruption and bribery, including compliance with FCPA and OFAC. This policy is regularly communicated to officers and associates in high-risk roles such as procurement, construction, development, redevelopment, and investment, with periodic certifications of compliance. Third-party screening is utilized for apartment applicants and for incoming and outgoing payments.

Kind to Animals

AvalonBay Communities Inc. is a real estate investment trust (REIT) that develops and manages apartment communities. The provided articles do not contain specific, measurable evidence relevant to the 'Kind to Animals' ethical value's KPIs, which primarily focus on animal testing, animal agriculture, animal-derived products, and direct wildlife conservation metrics. The company's business model does not typically involve these activities. General statements about integrating biodiversity considerations

or supporting pet-friendly initiatives lack the specific, quantifiable data required by the rubric for scoring.

No War, No Weapons

AvalonBay's core business in residential real estate explicitly excludes any involvement in military activities.

This means the company derives 0% revenue from arms or defense contracts, has no defense business for its board to oversee, and therefore no defense assets to divest. This exclusion also implies no exposure to any weapons, including controversial ones, and no conflict-linked partners. The company's operations demonstrate 100% compliance with this ethical red line. AvalonBay focuses on promoting societal stability through initiatives like its 'Building Strong Communities' program, collaborating with organizations such as the American Red Cross and the National Urban League, and supports veterans through its Veteran Support Outreach Committee.

Planet-Friendly Business

The company reported a waste diversion rate of 31% in 2024.

As of the end of 2024, 76 of its 314 communities have achieved one or more environmental certifications. Green electricity procurement covered 80% of the procurable common area electric load in 2024. The company reported that 46% of its total water withdrawn is from regions with High or Extremely High Baseline Water Stress, with a target to reduce whole-building water use intensity by 10% in water-stressed areas by 2027. AvalonBay has enhanced its climate risk disclosures, aligning with TCFD recommendations, and has a TCFD-specific appendix in its report. It conducts comprehensive climate scenario analysis using multiple Representative Concentration Pathway (RCP) scenarios (2.6, 4.5, 7.0, and 8.5) across various time horizons (2030, 2040, 2050, 2080), including a 1.5°C-aligned scenario, and integrates climate considerations directly into Asset Strategy Reviews. A new policy requires all new developments to conduct life cycle assessments (LCAs) covering, at minimum, the A1-A3 Product Stage. The company submitted new 1.5°C-aligned emissions reduction targets to SBTi for validation in early 2024 but subsequently withdrew pursuit of validation.

Respect for Cultures & Communities

AvalonBay Communities engages with a significant number of community groups, reporting over 290 charitable partners.

The company has not reported any cultural appropriation incidents. For cultural site protection, AvalonBay implements mitigation measures for tribal cultural resources during development and agreed not to demolish a culturally significant club while discussions were underway. The company also has detailed response protocols for the discovery of archaeological or tribal cultural resources and demonstrated a proactive response to a potential cultural controversy.

Safe & Smart Tech

AvalonBay emphasizes compliance with privacy laws and regulations and adheres to data privacy regulations.

The company has established a comprehensive cybersecurity risk management framework aligned with NIST CSF and CIS control framework’s Implementation Group 2, conducting annual assessments against NIST CSF benchmarks. Its Privacy Policy outlines the collection, use, and sharing of personally identifiable information (PII) of residents and associates, sharing PII with affiliated companies, service providers, and legal authorities as required.

Zero Waste & Sustainable Products

AvalonBay Communities Inc. achieved a 22% reduction in landfill-bound waste intensity across its portfolio since 2017, surpassing its waste reduction goal.

The company has also implemented an embodied carbon tracking policy for all new developments, requiring lifecycle assessments to identify and mitigate sources of embodied carbon.