Companies

Ventas Pledges to Achieve Carbon Neutrality in Operations by 2040

Published on: 24 March 2022 05:10 PM
by KnowESG
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Ventas, a real estate investment trust, announced its sustainability goals recently. The company vows to achieve net-zero operational carbon emissions by 2040 and builds upon its longstanding actions and commitments to environmental stewardship.

The real estate manager, in 2021, adopted the Science-Based Target Initiative (SBTi), a verified carbon reduction aim to scale down carbon emissions by 30 per cent by 2030.

The company's carbon neutrality strategy entails three main components for implementation in the Office and Senior Housing Operating (SHOP) portfolios. The three components are:

  • Energy Efficiency: Ventas, since 2018, has invested over $60 million in energy efficiency at a 15 per cent return on investment. The investments have decreased energy intensity per square foot by more than 5 per cent annually on a same-store basis from 2018 to 2020.

  • Renewable Energy: Ventas pledges to achieve 60 and 100 per cent renewable energy procurement by 2030 and 2035, respectively. It has plans to explore all feasible options for renewable energy, including on-site generation, power purchase agreements and other green power purchase products.

  • Electrification: Ventas Committed to investments in decarbonisation and electrification opportunities by deploying electric HVAC systems, water heaters, electric stoves, and other technologies.

The left out emissions will be reduced by purchasing high-quality carbon offsets. 

Debra A. Cafaro, Ventas Chairman and Chief Executive Officer, said: "Ventas recognises the imperative need to take significant actions toward decarbonisation and is dedicated to a well-conceived and rigorously executed approach to achieving operational net-zero carbon emissions. Our net-zero goal continues our leadership in sustainability and builds on our track record of achievements and commitments to date, starting with our ongoing investments in energy efficiency and our SBTi-validated emissions reduction target. We believe that today’s commitment promotes the interests of our stakeholders and aligns with our values of health and safety for residents, tenants, care providers and patients.”

Cafaro further added, "We are proud of the strategy we developed to achieve this ambitious goal of net-zero operational emissions by 2040 and look forward to continued collaboration with our partners and suppliers to promote sustainability and deliver long-term superior results.”

The sustainability team of Ventas will associate with leading Office and Senior Housing operators to enhance energy efficiency measures and energy management best practices, including benchmarking, estimating green energy opportunities and pursuing LEED, IREM and other third-party green certifications for the company. 

Ventas has a thorough ESG evaluation process incorporated into due diligence for acquisitions, dispositions, projects and redevelopments, as well as the selection of operators and partners, to advance its sustainability goals while continuing to grow. The Ventas ESG team assesses each possible business opportunity against nine ESG criteria, resulting in a complete report that helps decision-makers make the best long-term investment decisions.

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