Toledo, OH-based Welltower made significant ESG gains in 2021, including donations more than $587,000 in environmental, social and governance-related contributions to industry organizations,and 97% of the real estate investment trust’s employees received ESG training in 2021, according to the REIT’s annual environmental, social and governance report, issued Thursday.
“2021 was a year of significant advancement in our environmental, social and governance standards, in response to both investor expectations and employee engagement,” CEO and Chief Investment Officer Shankh Mitra stated in a press release.
The REIT said that among its key accomplishments in 2021, it:
- Received the Energy Star Partner of the Year Sustained Excellence Award,
- Was included in the Dow Jones Sustainability North America Composite Index,
- Raised its Morgan Stanley Capital International ESG rating from A to AA,
- Was named as one of Top 10 Most Sustainable REITs by Barron’s,
- Was listed in the S&P Global Sustainability Yearbook,
- Was named to the Bloomberg Gender-Equality Index and
- Was named as one of America’s Most Responsible Companies by Newsweek.
According to the report, the REIT aligns with global frameworks such as the Task Force on Climate-Related Financial Disclosures, the Global Reporting Initiative and the Sustainable Accounting Standards Board.
“These frameworks help guide our continued growth with accountability and transparency. In addition, we are proud to partner with key industry organizations that are making a difference in the environmental and social landscape,” the report stated.
Welltower uses the Energy Star Portfolio Manager for benchmarking, data collection, assessment of property performance and implementation of greenhouse gas, energy, water and waste reduction strategies. Using this platform in 2021, the REIT said, it increased data coverage by more than 180 properties for a total of 741 properties, which equates to 40% of the entire portfolio being benchmarked.
“Our improved data collection capabilities are possible through valued relationships with our seniors housing operators and outpatient medical teams who support this effort. …As our portfolio continues to grow and we engage with new operating relationships, we encourage them to use Energy Star Portfolio Manager to share and update their data on a regular basis,” the company said.
Welltower said it is working to reduce its greenhouse gas emissions by 10% over a 2018 baseline. To date, the REIT said, it has reduced greenhouse gas emissions by 5.9% from that baseline, with a 0.9% decrease from 2020 to 2021.
A new initiative from the previous year is a move into metropolitan areas where the REIT can take advantage of existing structures and repurpose them for senior living rather than building from the ground up. Recent projects include The Carnegie at Washington Center and the Balfour at Brookline.
“Through Welltower’s best practices, we incorporate energy and water efficient equipment such as high-efficiency lighting and low-flow fixtures in our new developments. We also consider human health and well-being in our spaces, including using materials and finishes that are low emitting to enhance indoor air quality,” the REIT said.
