Planet
Reducing our Footprint & Protecting the Planet
GRI: 102-11 | 102-29 | 201-2 | CRE8 | 419-1 | 416-2
Ventas recognizes the business and moral imperative to preserve our planet. This is a guiding principle for our ESG strategy. We are committed to measuring, reporting and reducing our environmental impact and ensuring our portfolio is resilient against climate-related risks.
Commitment to Net Zero Operational Carbon Emissions by 2040
In March 2022, Ventas became the first healthcare REIT to commit to achieving net zero operational carbon emissions by 2040. This pledge builds on our longstanding investments in energy efficiency across the portfolio and exceeds our Science Based Target initiative (SBTi)- validated goal.
Sustainability in Action
Click to See How We Achieve Sustainability
ENVIRONMENTAL DATA TABLES
Ventas defines its environmental boundary for energy, water, and waste reporting in alignment with the Greenhouse Gas Protocol's Operational Control approach. Developments and major redevelopment projects are excluded from our control boundary until they are operational; unconsolidated assets and JV assets where Ventas ownership is <25% are also excluded. As of December 31, 2021, we had 21 properties under development; our environmental control boundary for the 2021 calendar year includes 778 properties for emissions, energy, and water and 754 properties for waste.
Green Building Certifications2
|
ENERGY STAR®
Certified3 |
LEED®
Certified4 |
Other Green Building Certifications5
|
TOTAL CERTIFIED6
|
|||||
|---|---|---|---|---|---|---|---|---|
| Property Type |
Property
Count |
Square
Feet (M) |
Property
Count |
Square
Feet (M) |
Property
Count |
Square
Feet (M) |
Property
Count |
Square
Feet (M) |
| SHOP | 106 | 9.5 | 18 | 2.1 | 11 | 1.9 | 132 | 13.3 |
| Medical Office | 25 | 2.1 | 8 | 0.8 | 6 | 1.0 | 38 | 3.6 |
| Life Science, R&I | 2 | 0.4 | 34 | 9.2 | 3 | 0.7 | 36 | 9.6 |
| NNN | 21 | 3.4 | 0 | 0.0 | 2 | 0.1 | 23 | 3.5 |
| TOTAL | 154 | 15.4 | 60 | 12.1 | 22 | 3.7 | 229 | 30.0 |
| In-Boundary Total | 189 | 25.7 (Certified SF) |
||||||
| % Portfolio | 27% (Total SF) |
|||||||
| % In-Boundary Portfolio | 33% (% Certified) |
|||||||
|
SHOP Properties
|
|
|---|---|
|
ENERGY STAR® Certified3
|
|
|
Property Count:
|
106
|
|
Square Feet (M):
|
9.5
|
|
LEED Certified®4
|
|
|
Property Count:
|
18
|
|
Square Feet (M):
|
2.1
|
|
Other Green Building Certifications5
|
|
|
Property Count:
|
11
|
|
Square Feet (M):
|
1.9
|
|
TOTAL CERTIFIED6
|
|
|
Property Count:
|
132
|
|
Square Feet (M):
|
13.3
|
|
Medical Office Properties
|
|
|---|---|
|
ENERGY STAR® Certified3
|
|
|
Property Count:
|
25
|
|
Square Feet (M):
|
2.1
|
|
LEED Certified®4
|
|
|
Property Count:
|
8
|
|
Square Feet (M):
|
0.8
|
|
Other Green Building Certifications5
|
|
|
Property Count:
|
6
|
|
Square Feet (M):
|
1.0
|
|
TOTAL CERTIFIED6
|
|
|
Property Count:
|
38
|
|
Square Feet (M):
|
3.6
|
|
Life Science, R&I Properties
|
|
|---|---|
|
ENERGY STAR® Certified3
|
|
|
Property Count:
|
2
|
|
Square Feet (M):
|
0.4
|
|
LEED Certified®4
|
|
|
Property Count:
|
34
|
|
Square Feet (M):
|
9.2
|
|
Other Green Building Certifications5
|
|
|
Property Count:
|
3
|
|
Square Feet (M):
|
0.7
|
|
TOTAL CERTIFIED6
|
|
|
Property Count:
|
36
|
|
Square Feet (M):
|
9.6
|
|
NNN Properties
|
|
|---|---|
|
ENERGY STAR® Certified3
|
|
|
Property Count:
|
21
|
|
Square Feet (M):
|
3.4
|
|
LEED Certified®4
|
|
|
Property Count:
|
0
|
|
Square Feet (M):
|
0.0
|
|
Other Green Building Certifications5
|
|
|
Property Count:
|
2
|
|
Square Feet (M):
|
0.1
|
|
TOTAL CERTIFIED6
|
|
|
Property Count:
|
23
|
|
Square Feet (M):
|
3.5
|
|
TOTAL Properties
|
|
|---|---|
|
ENERGY STAR® Certified3
|
|
|
Property Count:
|
154
|
|
Square Feet (M):
|
15.4
|
|
LEED Certified®4
|
|
|
Property Count:
|
60
|
|
Square Feet (M):
|
12.1
|
|
Other Green Building Certifications5
|
|
|
Property Count:
|
22
|
|
Square Feet (M):
|
3.7
|
|
TOTAL CERTIFIED6
|
|
|
Property Count:
|
229
|
|
Square Feet (M):
|
30.0
|
|
In-Boundary Total
|
|
|---|---|
|
TOTAL CERTIFIED6
|
|
|
Property Count:
|
189
|
|
Square Feet (M):
|
25.7
(Certified SF) |
|
% Portfolio
|
|
|---|---|
|
TOTAL CERTIFIED6
|
|
|
Square Feet (M):
|
27%
(Total SF) |
|
% In-Boundary Portfolio
|
|
|---|---|
|
TOTAL CERTIFIED6
|
|
|
Square Feet (M):
|
33%
(% Certified) |
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 summarized below are aligned with the TCFD recommendations and guidance, which provide an effective way to understand, prioritize and disclose the climate-related risks and opportunities Ventas faces. Further detailed information is available either in our Corporate Sustainability Report and in our response to the CDP annual climate change survey.
TCFD Index
GOVERNANCE
A. BOARD OVERSIGHT
The Board of Directors provides oversight of our climate-related strategy, initiatives and performance. As part of the Board’s dedicated focus on ESG matters, including climate change, in May 2022, we re-named the Nominating and Corporate Governance Committee to the Nominating, Governance and Corporate Responsibility Committee. This Committee is responsible for overseeing and monitoring the Company’s ESG strategies, goals and initiatives, including with respect to climate change and diversity equity and inclusion. At all regularly scheduled meetings of the Committee, the Ventas Chairman and CEO, Debra A. Cafaro, and VP, Corporate ESG & Sustainability provide quarterly updates of ESG matters. The Chair of the Committee then reports to the full Board on ESG matters at each regularly scheduled Board meeting. The Board also receives an update from management on ESG matters at least once annually and as otherwise warranted. Enterprise risk management (ERM) matters, including climate-related matters, are reported to the Board at each regularly scheduled Board meeting. The Committee and the Board provide guidance on strategy and major plans of action related to climate change and other ESG matters, as appropriate.
B. MANAGEMENT ROLE
The Ventas Chairman and CEO Debra A. Cafaro has direct oversight of climate-related matters as the Chair of the Ventas ESG Steering Committee and sits on our Enterprise Risk Management (ERM) Committee. The ESG Steering Committee oversees company-wide initiatives to improve our environmental footprint, in addition to corporate social responsibility and governance efforts. The ERM Committee identifies, assesses and monitors enterprise-wide risks to our company, including climate change risks identified by the ESG Steering Committee. Our Chairman and CEO provides regular (quarterly or more frequent) ESG and ERM updates to our Executive Leadership Team and also obtains input for ESG initiatives, as appropriate.
STRATEGY
A. CLIMATE-RELATED RISKS AND OPPORTUNITIES
Climate-related risks and opportunities
Some of the key climate-related risks and opportunities we have identified are:
Physical risk - Damage from catastrophic or extreme weather and other natural events and the physical effects of climate change could result in losses.
Market risk - Significant changes in the climate may result in physical damage to or a decrease in demand for properties located in impacted areas. Additionally, climate change may have indirect effects on our business by impacting the cost or availability of property insurance on terms we find acceptable.
Regulation risk - Changes in federal, state or foreign legislation and regulation on climate change could require increased capital expenditures to improve the energy efficiency of our existing properties and could also require us to spend more on our new development properties.
Market opportunity - Ventas’s low-carbon products (such as LEED and ENERGY STAR certified buildings) may become more attractive to potential tenants, residents and customers or more affordable. Additionally, implementation of energy efficiency investment projects across our real estate portfolio may result in energy cost savings
B. IMPACT ON STRATEGY
We have set a net-zero goal to support a transition to a low-carbon economy. The Ventas ESG Steering Committee sets short, medium and long-term goals that include initiatives to address climate-related matters (such as investments in renewable energy and energy efficiency projects). To address potential risks, we undertake extensive risk reviews of existing properties and due diligence of new properties for flooding and other climate-related risks.
C. CLIMATE RESILIENCE
We recognize the risks associated with high-potential flood areas. As a result, we set a goal to have less than 10% of our net operating income (NOI) from properties in high-risk flood areas (FEMA Zone A). In 2021, 4% of our NOI was from such properties. We primarily implement climate-related scenario analysis through our property insurance consultants, who utilize risk modeling software, incorporating qualitative and quantitative aspects, to analyze our portfolios. The software produces metrics that assist in determining appropriate limits of insurance. It also models how portfolio additions/deletions will affect expected losses.
RISK MANAGEMENT
A. PROCESS TO IDENTIFY CLIMATE RISK
Ventas has an integrated, multi-disciplinary company-wide risk management process, which is managed through our Enterprise Risk Management (ERM) Committee. The monitoring of climate change risks and opportunities is integrated into this process. Existing risks are evaluated for changes to risk likelihood or impact, and mitigation strategies are updated as needed. New risks are discussed and evaluated for potential inclusion on the Enterprise Risk Heat Map. Results are discussed with the Ventas Board of Directors at quarterly Board meetings as needed.
The Ventas VP, Corporate ESG & Sustainability identifies and assesses climate change risks to Ventas on an ongoing (at least monthly) basis using a range of internal and third-party external inputs.
B. PROCESS FOR MANAGING CLIMATE RISKS
The VP, Corporate ESG & Sustainability coordinates with relevant internal resources to discuss and estimate how identified risks could impact the Company’s portfolio. If a potential substantive impact is identified, it is shared with our ESG Steering Committee and our ERM Committee to develop a mitigation plan. Our CEO sits on both the ESG Steering Committee and ERM Committee, which provide a direct link between the activities of these committees. The Ventas Corporate Risk Management department works with our property managers to assess weather-related climate risks by applying algorithms, data analytics and scenario analysis to our portfolio. Whether a risk has a substantive financial or strategic impact on our business is determined based on the potential impact and likely mitigation of the risk.
C. CLIMATE RISK INTEGRATION
The VP, Corporate ESG & Sustainability and Director, Corporate Risk have day-to-day responsibility for identifying and assessing climate-related risks. These risks are monitored on an ongoing basis and discussed and evaluated through our ESG Steering and ERM Committees, with oversight from their respective Board committees.
METRICS & TARGETS
A. METRICS
Our efficiency - We track and report our operational efficiency through energy use and carbon emissions metrics, and intensity relative to area.
Our properties - We monitor metrics for green-certified buildings (such as LEED and ENERGY STAR). Additionally, we track our properties’ flood risk exposure.
B. 2021 MARKET-BASED GHG EMISSIONS
C. TARGETS
We have set a number of climate-related goals:
- GHG Emissions: Reduce Scope 1, 2 and 3 emissions on an absolute basis by 30% by 2030 (2.5% annually); our Scope 1 and 2 goal is validated by the Science Based Targets initiative 2030
- Energy: Reduce intensity (MWh/1,000 SF) for properties in our environmental control boundary by 20% over 10 years (2% annually)
- Net-zero operational carbon emissions by 2040
- Achieve LEED Silver or better on 100% of new R&I developments
- Evaluate the cost and feasibility of LEED or equivalent for all new developments
- Generate less than 10% of annual NOI from properties in high flood risk areas (FEMA Zone A)
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 Committee members include: General Counsel (Chair); Chairman & CEO; CFO; VP, Internal Audit; Chief Information Officer
- Results shown above reflect year-over-year progress within our environmental control boundary ("in-boundary"), which is ~60% of our total owned portfolio by square feet, excluding developments. Emissions shown above are Scopes 1+2, measured on an absolute basis. Energy and water shown above are for the 2019-2020 in-boundary same-store pool (note that this is not progress against our goal, which is measured for our total in-boundary portfolio). The recycling percent shown above is for our total in-boundary portfolio.
- Data as of 8/31/2022. Chart totals may not add due to rounding.
- Number of buildings with an active ENERGY STAR label.
- Includes 15 developments where LEED certification is pending.
- Other Green Building Certifications include IREM Certified Sustainable Property, BOMA 360 and CALGreen.
- Properties with multiple green building certifications are counted only once in Total Certifications.