Welltower’s newly released annual ESG report details steps the company is taking to address key aspects of environmental, social and governance initiatives.
The real estate investment trust is aligned with the Task Force on Climate-related Financial Disclosures to help guide its climate risk strategy to identify, manage and disclose climate risks and opportunities.
According to the report, Welltower’s portfolio has a deliberately diversified footprint as a key strategy for mitigating climate risks. The company said it limits its exposure to coastal and other high-risk areas.
“I am particularly proud of our efforts to expand our sustainability data collection, an ongoing commitment to diversity and inclusion, the formation of numerous Employee Network Groups and the restructuring of the Welltower Foundation to better align with employee-driven charitable initiatives,” Shankh Mitra, Welltower’s CEO, said in a statement.
Among ESG achievements last year, Welltower was included in the Dow Jones World and North America Sustainability Indices, awarded the ENERGY STAR Partner of the Year, listed in the S&P Global Sustainability Yearbook, represented in the Bloomberg Gender-Equality Index, named in Barron’s Top 10 Most Sustainable REITs and designated as one of Newsweek America’s Most Responsible Companies.
Overall, REITs are making deliberate efforts to integrate ESG initiatives into corporate strategies, according to the National Association of REITs’ 2021 ESG report.
“The advancement of sustainability in all of its facets, including environmental stewardship, social responsibility, and good governance is a core component of the REIT approach to real estate investment,” the report stated.
REITs are stepping up their role in addressing the risks associated with climate change and looking to mitigate environmental impacts, according to the NAREIT report. To that end, many REITs have bumped up their reporting and goal-setting processes around environmental issues, and made commitments to meet certain targets.