Responsible Growth & Operational Excellence
Our sustainability leadership is intrinsically linked to our focus on strong financial performance. Integrating sustainability into our business practices reduces risk, creates value for our shareholders and communities and promotes a more competitive, efficient portfolio.
Integrating ESG Throughout Our Business
Ventas has a comprehensive ESG assessment process that is integrated into our due diligence for acquisitions, dispositions, developments and redevelopments, and selection of operators and partners. This assessment is aligned to our ESG priorities and goals, ensures that our business decisions reflect our ESG priorities and considers ESG-related risks to support the best long-term investment decisions.
Each potential business opportunity is evaluated against nine distinct ESG categories:
Reflecting our commitment to long-term outperformance, our acquisition due diligence process includes rigorous vetting of environmental, social, governance, operational and other business risks, as well as Property Condition Assessments (PCA) and Phase 1 Environmental Site Assessments (ESA) for all new acquisitions.
Our acquisitions team also collaborates with risk management and our property insurers to evaluate the exposure of new properties to high-hazard earthquake, flood and wind zones, ensuring appropriate insurance coverage, limits and deductibles, as well as appropriate geographic dispersion to avoid issues from concentration of risk.
Sustainability Considerations and Green/Efficiency Measures
- Building Certifications (LEED®/ENERGY STAR®)
- Energy Efficient Lighting
- Occupancy Sensors for Lighting
- Water-Efficient Plumbing Fixture
- ENERGY-STAR Appliances
- High-Efficiency HVAC Systems or Equipment
- Low-E Window Glass
- White/Green Roof
- Solar Panels
Active developments pursuing LEED certification
projects being developed on greenfield sites
Commitment to LEED Silver or better on all Life Science, Research & Innovation developments
of NOI from properties
in high flood risk areas
Information as of September 1, 2022.
Ventas is committed to environmentally and socially responsible development in collaboration with our operating partners including:
- Pursuit of LEED certification
- Developing urban brownfields and infill sites
- Supporting urban revitalization
Responsible investment extends to the companies with which we partner. We have built strong partnerships with the industry’s top senior care and senior living providers, researchers and developers by sharing deep industry knowledge and providing reliable access to capital. The common thread among our partners is they have created platforms for growth, have excellent track records and reputations and employ best practices.
Prior to entering into partnership agreements, Ventas conducts a thorough review that extends beyond financial performance and legal compliance to the company’s approach to human capital management, labor relations, managing resident satisfaction, IT security and infrastructure, environmental impact, marketing practices and other non-financial factors.
We conduct recurring regulatory reviews of our senior housing and healthcare operators with the help of expert outside counsel. We also ensure our healthcare leases include provisions requiring compliance with applicable health and safety laws.
Collaboration and Communications:
Supporting our Tenants, Residents and Operators
We work hard to maintain an open line of communication with our tenants and operators with frequent touch points and meetings. We conduct regular satisfaction surveys in our Office portfolio, and our Senior Housing operators conduct periodic resident satisfaction surveys.
Our Medical Office Building (MOB) portfolio has improved its overall satisfaction every year since its participation in the Kingsley survey process exceeding the Kingsley Index average dating back to 2019 and ranking in the top quartile of our MOB peers for tenant satisfaction for the last two consecutive years. Across each key performance indicator, our 2021 rankings increased over the prior year, which have contributed to our industry-leading 86% tenant retention rate.
We began measuring our Research & Innovation portfolio in 2018, achieving overall tenant satisfaction above the peer benchmark in 2021.
Our senior housing operators represent the industry’s leading care providers. As of December 31, 2021, 94% of our providers conduct resident satisfaction surveys, an industry best practice. The resident satisfaction surveys act as one of the ways in which we evaluate senior housing provider strength and performance, ensuring we partner with best-in-class operators focused on offering a vibrant quality of life and maintaining the highest standards of health and safety for the nearly 75,000 residents within our Ventas-owned communities.
We are proud to continue to help look after those who need it most, collaborating with our operators and by sharing operational insights through our dedicated data and analytics platform, Ventas OI™.