ESG Priorities
Ventas has organized its ESG strategy across three key pillars – People, Performance, Planet – and has set SMART (Specific, Measurable, Achievable, Relevant and Time-Bound) goals against each of these topics. The goals are closely aligned to the United Nations Sustainable Development Goals (UNSDG). We have identified nine SDGs where we can make an impact through strategic investment in our business and communities.
Starting with our priority ESG topics, we reviewed sustainability goals of our peers, partners, and ESG high-performers, and benchmarked our current practices against them to identify areas for improvement. We mapped findings on a maturity continuum and worked with internal Subject Matter Experts (SMEs) to build a portfolio of goals that align Ventas’s sustainability and business strategies.
Goals and Achievements
| TOPIC | GOAL | STATUS | PERFORMANCE |
|---|
| TOPIC | GOAL | STATUS | PERFORMANCE |
|---|---|---|---|
TALENT ATTRACTION AND RETENTION    |
Maintain an overall employee engagement rate in the top half of companies compared to our peer benchmark Target Date: ONGOING |
Achieved 2019 On Track 2020 |
In 2018 and 2019, Ventas employee engagement was above the 50th percentile |
| Offer an employee health package that exceeds a cross-industry benchmark of almost 2,400 companies Target Date: ONGOING |
Achieved | In 2018, Ventas’s employee health package was valued at 50% higher than the cross-industry benchmark | |
| NEW Provide a minimum wage of $15 per hour to 100% of full-time employees, increasing to a minimum of $17 per hour by 2024 Target Date: 2024 |
On Track | As of September 15, 2019, 99.6% of Ventas employees made ≥ $15 per hour | |
| NEW Annual target of 0 lost time incidents for employees (health & safety) Target Date: ONGOING |
Achieve 2019 Missed 2020 |
1 lost time incident in 2018, 0 lost time incidents as of September 15, 2019 | |
DIVERSITY, EQUITY AND INCLUSION  |
Maintain 50:50 gender balance between male and female employees across our organization (+/- 5%) Target Date: ONGOING |
Achieved 2019 On Track 2020 |
In 2019, 48% of Ventas employees self-identified as female |
| Maintain or exceed 30% women on our Board of Directors Target Date: ONGOING |
Achieved 2019 On Track 2020 |
Our Board of Directors is currently 36% female, with four women Board members. | |
| Achieve 25% female representation among Ventas Leadership by 2023 Target Date: 2023 |
Ongoing | As of September 15, 2019, Ventas Leadership is 19% female | |
| NEW Develop a Diversity, Equity & Inclusion Framework Target Date: ONGOING |
On Track |
| TOPIC | GOAL | STATUS | PERFORMANCE |
|---|---|---|---|
| TENANT, RESIDENT AND OPERATOR SATISFACTION |
Maintain our MOB Kingsley Index score for overall tenant satisfaction in the top half of the peer benchmark and increase our score one percentage point annually, as measured by Kingsley Target Date: ONGOING |
Achieved 2019 On Track 2020 |
In 2019, our MOB Kingsley Index score improved four percentage points and outperformed the peer benchmark |
| Achieve R&I Kingsley Index score for overall satisfaction in the top half of the peer benchmark by 2024, with improvements each year Target Date: ONGOING |
On Track | In 2018 we conducted our inaugural Kingsley survey in our R&I portfolio. We achieved a strong satisfaction score that sets our baseline for future performance | |
| Derive 80% or more of senior housing NOI from tenants or operators who conduct regular resident satisfaction surveys Target Date: ONGOING |
Achieved | As of Q2 2019, 80% of seniors housing NOI is derived from tenants or operators who conduct regular resident satisfaction surveys | |
| Maintain 100% of our NNN segment NOI from leases or agreements that contain provisions requiring compliance with applicable health and safety laws Target Date: ONGOING |
Achieved 2019 On Track 2020 |
We believe 100% of our leases or agreements include such provisions | |
RESPONSIBLE INVESTMENT  |
Achieve LEED® Silver certification or better on 100% of our announced R&I pipeline Target Date: ONGOING |
Achieved 2019 On Track 2020 |
As of September 15, 2019, 100% of our active R&I pipeline developments are targeting LEED Silver certification or higher |
| Communicate to all development partners the importance of investigating and pricing LEED or other sustainability certification for all new projects, through discussions with C-suite leadership by 2020 Target Date: 2020 |
Achieved 2019 On Track 2020 |
We are developing a communications plan to implement this goal |
| TOPIC | GOAL | STATUS | PERFORMANCE |
|---|---|---|---|
CLIMATE CHANGE  |
Derive less than 10% of annual NOI from properties in high flood risk areas (FEMA Zone A) Target Date: ONGOING |
Achieved | In 2018, 4% of NOI derived from properties in FEMA Zone A |
| Ensure that 100% of non-NNN leased assets have emergency plans in place Target Date: ONGOING |
Achieved | As of September 30, 2019, 100% of Ventas non-NNN assets have emergency plans in place | |
ENERGY AND EMISSIONS  |
UPDATED Reduce Scope 1 & 2 and Scope 3 Emissions by 25% over 10 years Target Date: 2028 |
On Track | We are progressing toward this goal through energy efficiency projects such as LED lighting upgrades and HVAC optimization |
| UPDATED Reduce Energy use intensity by 20% over 10 years Target Date: 2028 |
On Track | We are progressing toward this goal through energy efficiency projects such as LED lighting upgrades and HVAC optimization | |
WATER |
UPDATED Reduce water use by 20% over 10 years Target Date: 2028 |
On Track | We are progressing toward this goal through water efficiency efforts such as low-flow fixtures and smart irrigation systems |
WASTE  |
UPDATED Recycling services available at 100% of assets within our environmental control boundary Target Date: 2028 |
On Track | We are progressing toward this goal by implementing recycling and composting in our portfolio |