Planet

Minimizing Our Impact

GRI: 102-11 | 102-29 | 201-2 | CRE8 | 419-1 | 416-2

Ventas is committed to understanding our footprint, reducing our environmental impact and ensuring our portfolio is resilient against climate-related risks. This commitment is reflected in the more than $100 million of investments in energy, water and waste efficiency upgrades throughout our portfolio since 2014. 

146
Green Buildings 1
160,000 Mwh
Energy Saved
Annually
~115M
Gallons of Water
Saved Annually
~17%
Annual Returns 2

Actionable Sustainability

Click to See How We Achieve Sustainability

Energy & Emissions

$29M Energy Efficiency Investment

12.7% Return on Investment

25,500 MWh Electricity Saved

Water

$900K Water Efficiency Investment

9% Return on Investment

46M Gallons of Water Saved

Waste

14 Composting Programs at Seniors Housing Properties

100+ Properties with Active Recycling Programs

Green Buildings3

PROPERTY TYPE
ENERGY STAR®
CERTIFIED 4
 
LEED®
CERTIFIED5
 
IREM® CERTIFIED
SUSTAINABLE
PROPERTY
  Property Count Square Feet Property Count Square Feet Property Count Square Feet
SHOP PROPERTIES 41 Total 2.9M Sq. Ft. 16 Total 1.9M Sq. Ft. - -
MEDICAL OFFICE PROPERTIES N/A N/A 7 Total 0.7M Sq. Ft. 1 Total 0.1M Sq. Ft.
LIFE SCIENCE PROPERTIES N/A N/A 25 Total 5.9M Sq. Ft. - -
NNN PROPERTIES 9 Total 0.3M Sq. Ft. - - - -
TOTAL PROPERTIES 50 Total 3.2M Sq. Ft. 48 Total 8.5M Sq. Ft. 1 Total 0.1M Sq. Ft.

CLIMATE CHANGE

GRI: 102-11 | 102-15 | 102-18 | 102-19 | 102-20 | 102-27 | 102-29 | 102-30 | 102-31 | 416-1 | 416-2

Task Force on Climate-Related Financial Disclosures

Ventas is committed to managing climate-related risks and opportunities in our portfolio. Our climate disclosures in this report are aligned with the TCFD recommendations, which provide an effective way to understand, prioritize and disclose the climate-related risks and opportunities Ventas faces. As a long-term holder of real estate, Ventas considers risks and opportunities up to 10 or more years in the future, as well as near- (0-1 Year) and medium-term (1-3 years) risks.

The TCFD divides climate risks into two categories:

TRANSITION RISKS:

From the transition to a lower-carbon economy including carbon regulations and shifting consumer preferences.

RISKS:

State & local carbon regulations and energy benchmarking ordinances that could result in fines, require efficiency investments in our buildings or increase construction and redevelopment costs.
 

OPPORTUNITIES:

Investing in energy efficiency projects in our buildings has the potential to minimize our environmental footprint while generating meaningful cost savings, contributing to net operating income (NOI) growth and increased shareholder value.

PHYSICAL RISKS:

From the physical impacts of climate change such as extreme weather and rising sea levels.

RISKS:

Increased frequency and severity of extreme weather, primarily hurricanes and blizzards arising from climate change. Unmitigated, this could result in increased insurance premiums and other costs such as emergency evacuations.

OPPORTUNITIES:

Improving the resilience of our buildings to withstand extreme weather and ensuring that we have emergency plans in place across our portfolio.

Maintaining a limit on high-risk flood properties (FEMA Zone A) to less than 10 percent of NOI.

TCFD Index

GOVERNANCE

Our ESG Steering Committee, chaired by Ventas Chairman and CEO, Debra A. Cafaro, has direct oversight of climate-related issues and provides regular updates to our Board.

Climate change risks and opportunities are evaluated and prioritized through a collaborative process that includes our executive leadership team, risk management, investments, asset management, legal and Sustainability department.

See our approach to ESG Governance >

STRATEGY

Transition Risks and Opportunities
Risks to Ventas include state and local carbon regulations and energy benchmarking ordinances. To address these risks, we have set ambitious new goals to reduce our emissions, energy, water and waste, and invest in energy efficiency upgrades in our portfolio.

Physical Risks and Opportunities
Our portfolio faces potential risks from increased extreme weather (primarily hurricanes and blizzards), which could increase insurance premiums and other costs (e.g., emergency evacuation). To mitigate, we maintain a geographically diverse portfolio and evaluate such risks with every acquisition.

RISK MANAGEMENT

Ventas has an integrated, multi-disciplinary, company-wide risk management process, managed through our Enterprise Risk Management (ERM) Committee. Climate change risks and opportunities are integrated into this process.

METRICS & TARGETS

In 2020, Ventas set ambitious new targets to reduce our GHG emissions (aligned to a well below 2° scenario), energy, water and waste.

We also have company goals to maintain emergency plans for all assets in our operating control and have a target to limit high flood risk properties to less than 10 percent of NOI.

Our ESG Goals >

Our Performance >

Environmental Data Tables >

Enterprise Risk Management (ERM):

Ventas has an integrated, multi-disciplinary, company-wide risk management process, managed through our Enterprise Risk Management Committee.* In line with TCFD recommendations, climate change risks and opportunities are integrated into this process. Convened quarterly, the Committee evaluates both known and new risks for inclusion on our ERM Heatmap to determine risk likelihood or impact to Ventas, and mitigation strategies are updated as appropriate. Results are discussed at our quarterly meetings with the Ventas Board of Directors.

  • ERM Commiee members include: CEO; CFO; General Counsel; VP, Internal Audit; Assistant General Counsel, Corporate & Securies
Enterprise heat map

 

  • ERM Commiee members include: CEO; CFO; General Counsel; VP, Internal Audit; Assistant General Counsel, Corporate & Securies
  1. Green Buildings defined as LEED® and/or ENERGY STAR® and/or IREM® Certified Sustainable Property
  2. Based on historical spend and estimated returns 2013–2018
  3. Property counts correct as of 9/30/2020
  4. Number of buildings with an active ENERGY STAR® label. ENERGY STAR® is updating the Medical Office certification program and is not issuing new certifications. ENERGY STAR® Certification is not available for Life Science properties.
  5. Includes 11 developments were LEED certification is pending