UDR : ESG Report

ELEVATED EXCELLENCE

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) REPORT

IMAGE: THE MO | WASHINGTON DC

ABOUT THIS REPORT

Our annual ESG Report focuses on the 2022 reporting period (January 1 to December 31, 2022), and unless otherwise stated, metrics or activities discussed relate to that period. The report's Environmental ("E"), Social ("S"), and Governance ("G") (collectively "ESG") disclosures were prepared with reference to the following frameworks:

• The Global Reporting Initiative ("GRI") Universal Standards (2021),
• the Sustainability Accounting Standards Board ("SASB") standards (Real Estate), and
• the Task Force on Climate Related Financial Disclosure ("TCFD").

These internationally recognized ESG frameworks and standards outline

the perceived most comprehensive ESG disclosures for the real estate industry.

Indexes to GRI, SASB, and TCFD can be found on pages 59, 70, and 74, respectively.

We developed this report using the most reliable information available to us but cannot guarantee this information will not change due to conditions within or beyond our control. We undertake no duty to update any information included herein should a change occur.

Further, certain statements made in the report are "forward looking statements" that by their nature involve estimates, projections, goals, forecasts, and assumptions. These are subject to risks and uncertainties that could result in actual outcomes differing materially from those expressed in a forward-looking statement. These risks are discussed in our Annual Report on Form 10-K and our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission ("SEC") from time to time.

In this report, any use of the terms "material," "materiality," "immaterial," "substantive," "significant" and other similar terminology refers to the expected significance of our potential impact on economic, environmental and social topics or to topics or standards designated as "material" or "substantive" under the GRI standards, SASB standards or TCFD framework. These terms as used in this report are not used, or intended to be construed, as they have been defined by or construed in accordance with the securities laws or any other laws of the United States or any other jurisdiction, or as these terms are used in the context of financial statements and financial reporting.

At UDR, Inc. ("UDR" or the "Company"), we are doing our part to reduce the impact we have on climate change by implementing energy-efficient measures throughout our business operations and creating sustainable communities. As an environmental steward, we ask you to please consider not printing this report.

UDR 2023 ESG Report | Elevated Excellence

Vitruvian West | Addison, TX

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WHAT'S NEW / DEVELOPING COMPARED TO LAST YEAR'S REPORT

UDR 2023 ESG Report | Elevated Excellence

GENERAL

• Continued our high standards of GRESB Real Estate Survey performance with a 2023 score of 87.
• Ranked 1st within our GRESB Real Estate peer group and named a 2023 GRESB Sector Leader.
• Recognized as one of Newsweek's America's Most Sustainable Companies for the second consecutive year in 2023.
• Added an additional topic, "Associate Compensation and Benefits", to our Materiality Assessment and included where to find additional information about each material
  ESG topic within this Report.
• Updated our GRI disclosures to reflect the GRI Universal Standards (2021). This update is also reflected in our disclosure mapping (i.e., included under each section heading where applicable).

ENVIRONMENTAL

• Introduced an updated long-term Sustainability Strategy that positions UDR well to navigate the still-evolving sustainability environment. This strategy focuses on calculating and monitoring our carbon footprint, actions that can be implemented to reduce our carbon footprint, and continuing to enhance our best-in-class sustainability reporting framework.
  Specifics include:

o Adopting science-based Scope 1, 2 and 3 Greenhouse Gas ("GHG") emissions intensity reduction targets, whereby we are committing to a Scope 1 and 2 emissions intensity reduction of 40% and a Scope 3 emissions intensity reduction of 30% from 2020-2035;

o Revising our other environmental goals related to energy, renewable energy procurement, water, and waste to align with our updated science- based emissions intensity reduction goals (with additional detail on pages 15 and 21); and,

o Transitioning to a more actions-oriented approach

with respect to addressing climate-related risks and opportunities. This approach includes but is not limited to:

• Proactively addressing Building Environmental Performance Standards,
• Searching for ways to mitigate the potential risk of future utility cost increases as "green" infrastructure advances,
• Ranking our communities across a variety of environmental metrics to determine near- versus longer-termclimate-related risks and opportunities that could impact the Company,

• • Collaborating throughout the Company to identify, research, and integrate sustainability capital projects and technologies.
• Expanded our Environmental Metrics table to include Scope 3 emissions for the first time as we work towards our Scope 3 emissions intensity reduction goal.
• Completed Sustainability Certification of an additional four UDR apartment communities, increasing our sustainably certified property count to 29 (representing over 15% of our portfolio).

SOCIAL

• Developed and incorporated UDR's top five people goals, which were determined by surveying the top leaders of the Company and will help to shape the direction of our future people initiatives. Efforts towards these goals are found in the "Our Commitment to Social Responsibility" section of this report, and include:

o Monitor and enhance the associate experience;

o Improve associate health and wellness;

o Strengthen our talent acquisition function;

o Advance Diversity, Equity, and Inclusion ("DEI") and community engagement programs; and,

o Enhance our approach to learning, development, and succession planning.

• Introduced quarterly associate pulse surveys and monthly HR newsletters to increase communication and opportunities for associate feedback.
• Achieved an associate turnover rate of 28% for 2022, which is lower than the industry standard of 38% (based on National Association of Real Estate
  Investment Trusts ("NAREIT") and CEL data).

• Expanded our associate demographic disclosures within this Report to include our most recent EEO-1
  report filed in 2022.
• Implemented a new compensation market data tool that allows us to obtain near real-time market data and update our salary ranges accordingly.
• Provided updates around our new associate benefits and learning and development programs that were introduced in our 2022 ESG report, which continue to enhance our associate experience. These include benefits such as our Lifestyle Spending
  Account, Associate Resource Program, a Roth 401(k) retirement plan, as well as learning and development programs such as our Certified Manager Program, Level Up! Career Mobility Program, and new Learning Management System.
• Continued to provide updates regarding our residents' experience, including features of our Operating Platform enhancements and Resident App. Utilizing these technologies, 97% of resident leases, 90% of rent payments, 87% of service requests, and 85% of lease renewals were completed online in 2022.

GOVERNANCE

• Expanded our already robust social governance framework with the addition of Shezelle Krei, Vice President of Organizational Development.
• Obtained 19 out of 20 points in the Governance section of our 2023 GRESB Real Estate Assessment, higher than the GRESB average of 18 points.
• Simplified the ESG Metrics incorporated into our senior leadership Short-Term Incentive Program ("STI") including moving to an annual relative GRESB score versus peer companies.
• Clarified that there are no outstanding share

grants that are subject to single trigger change in control provisions.

For any questions about this report, please contact UDR's ESG Team at [e-mail] 3

UDR 2023 ESG Report | Elevated Excellence

TABLE OF CONTENTS

1. Chairman and CEO Message
2. About UDR
3. Scores - Alignments - Memberships - Awards
4. UDR's Business Strategy
5. UDR's ESG Methodology

1. Stakeholder Engagement
2. Materiality Assessment

15 ESG Measurement and Reporting

18 Our Commitment to the Environment

36 Our Commitment to Social Responsibility

48 Our Commitment to Governance

59 GRI Index

70 SASB Index

74 TCFD Index

Image: Steele Creek | Denver, CO

CHAIRMAN & CEO

MESSAGE

(GRI 2-9,2-22,2-29)

We are delighted to share with you our 5th annual ESG report, which highlights UDR's ongoing and robust commitment to being a leader in ESG initiatives. Realizing tangible progress towards our ESG goals is imperative as successful ongoing execution (1) helps to support and enrich our cultural values, (2) makes stakeholders aware that UDR is doing its part on the ESG front, and (3) enhances our bottom-line results.

Regarding UDR's strategic vision and future goals, a foundational principal we have adhered to over my tenure as Chairman and CEO is "listen to our associates, listen to our residents, and listen to our investors." This principle is a key driver of our company culture and the feedback received from these diverse groups often serves as our best lens into where we are excelling and where we still need to improve as we navigate a business environment that continues to evolve. This is no different for ESG and I believe will largely determine how successful our future ESG pursuits will be. Putting this mantra into action, from 2018 to 2020 we implemented a self-service operating model that allows our residents to interact with us on their time, we recently began conducting quarterly "Pulse" surveys to better understand how our associates view their experiences at UDR, we delved more deeply into our residents' tenure with UDR through our Customer

Experience Project which aims to identify successes and failures throughout a resident's stay to improve their overall experience and increase their lifetime value to the Company, and we have met with 539 investors, representing approximately 80% of our outstanding common stock, since the beginning of 2022 to better understand their views on our strategy and execution. Continuing to evolve our strong culture to adapt it to ever-changing stakeholder wants and needs will be key to our future success. We are hard at work to ensure that the feedback we receive from all stakeholders is not only heard but acted upon.

Improving our ESG footprint is reflected in the actions we have undertaken over time as outlined within this report. Noteworthy recent achievements include:

• Updating our long-term Sustainability Strategy to be more actions-oriented with respect to addressing climate- related risks and opportunities, including (1) reducing future GHG emissions, (2) proactively addressing market-level benchmarking requirements and Building Emissions/Energy Performance Standards ("BEPS"), (3) programmatically spending capital on sustainability projects that produce a return on investment plus sustainability benefits, and
  (4) examining ways to reduce the risk of future utility cost increases.
• Adopting of science-based Scope 1, 2 and 3 GHG emissions intensity reduction targets that align with the objective to hold the increase in the global average temperature to well below 2 degrees centigrade as set forth in the Paris Agreement and are calculated in accordance with World Resource Institute standards. We committed to reducing our Scope 1 and 2 emissions intensity by 40% and our Scope 3 emissions intensity by 30% from 2020 - 2035.
• Scoring 87 on our 2023 GRESB Real Estate survey which ranked 1st within our GRESB Real Estate peer group and was named a 2023 GRESB Sector Leader.
• Certifying an additional four UDR apartment communities as sustainable during 2022, bringing our total to 29 communities. Expanding our portfolio of sustainable communities makes it more desirable for our residents while driving revenue and expense efficiencies that create value for other stakeholders.
• Expanding our already robust social governance framework in 2023 with the addition of Shezelle Krei, Vice President of Organizational Development. The creation of this role signifies our commitment to enhancing our already

UDR 2023 ESG Report | Elevated Excellence

strong corporate culture and talent acquisition/retention programs through more focused engagement with our associates.

• Being named to Newsweek's America's Most Sustainable
  Companies for the second consecutive year in 2023.

Collectively, these are significant accomplishments that (1) exhibit our ongoing commitment to being a best-in-class ESG real estate investment trust ("REIT"), (2) position our Company well to address the still evolving ESG space, and (3) showcase the innovation and dedication that our associates exhibit daily to make UDR a better ESG steward.

As you read through our 2023 ESG Report, you will note that many of our ESG goals, sections, and disclosures tie to the UN Sustainable Development Goals ("SDGs") as well as the GRI, SASB, and TCFD standards. Each serves as an important framework for decision making and goal setting across E, S, and G. Our aim is to provide full transparency around how UDR's ESG efforts meet external requirements while encouraging our associates and residents to take an active role in achieving our sustainability goals.

Lastly, UDR's capable and diverse Board of Directors ("Board") and executive team remain firmly committed to advancing ESG and continuing to improve our E footprint when economically viable and where appropriate. Our Board is highly engaged, receiving annual ESG strategy updates, and E, S, and G progress updates at least quarterly. And, a portion of our senior corporate and field leaderships' annual compensation is determined by meeting certain predetermined ESG related goals. Fostering an environment that encourages honest discussion and seeks to include diverse perspectives is key to our ultimate ESG success and is already central to our culture.

I sincerely hope you find our 2023 ESG Report insightful and can appreciate the significant contributions UDR associates have made to turn our ESG goals into reality.

Sincerely,

Thomas W. Toomey

Chairman and Chief Executive Officer

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