Self-storage REIT Public Storage (NYSE: PSA) is more than halfway toward meeting a key corporate sustainability goal — equipping 1,300 storage facilities with rooftop solar panels by the end of 2025. At the end of 2024, over 750 of the company’s facilities were powered by solar energy.
“Typically, roofs at self-storage properties are underutilized assets. When outfitted with roof-mounted solar panels, our roofs become generators of low-carbon electricity that, in some cases, can fully offset individual property consumption. This not only helps the environment, but also our bottom line over time. It’s a win-win,” says Jonathan Balas, director of sustainability at Public Storage.
Balas says the campaign to boost solar capabilities throughout the REIT’s U.S. portfolio is unlocking potential in employees, contributing to the communities where Public Storage operates, and helping the company be a responsible steward of the planet.
The strength of Public Storage’s commitment to solar, among other achievements, was recognized when it received Nareit’s 2024 Leader in the Light Award in the self-storage category. Nareit recognizes REITs that demonstrate leadership in carrying out sustainable and socially responsible investment and operating practices, good governance, and transparency.
With the solar project and Public Storage’s other sustainability initiatives, Balas seeks to make “the sometimes complex and technical world of sustainability” more approachable and actionable.
“Meet people where they are at, as I like to say. This contributes to creating a culture where people can embrace sustainability as a team sport,” he says. “At its most successful, sustainability is part of everyone’s job with people always on the lookout for the next ‘aha’ moment and possible innovation. Finding those gems, then building and leading cross-functional efforts dedicated to creating and measuring continual improvement, motivates me.”
That attention to ensuring all employees are interested and involved in company-wide priorities such as sustainability goes a long way to explaining why Public Storage received a Great Place to Work certification two years in a row. Public Storage strives to create a workplace “where all employees' voices matter and everyone feels valued,” Balas says.
Through the Public Storage Learning Academy and other training events, employees completed over 455,000 training hours in 2023. Balas points out that equipping employees with the knowledge, skills, abilities, and tools to increase their development, grow, and be engaged throughout their career is key to attracting and retaining top talent.
Business-first approach
The principle of ‘do the right thing’ guides not only Balas’ sustainability work at Public Storage but the work of everyone at the REIT, whose U.S. portfolio comprises more than 3,000 facilities.
“In this regard, we recognize the importance of operating in a responsible and sustainable manner that aligns with our long-term strategy to promote the best interests of our company and its stakeholders,” he says.
At Public Storage, mitigation means striving for a 45% reduction in utility-based emissions by 2032 compared with a 2022 baseline. Through 2023, the REIT tallied an estimated 13% reduction in emissions, according to Balas.
“Whether it is solar power, efficient HVAC systems, lighting or building design, we approach sustainability with a steady, business-first approach that delivers value and has a positive impact on the environment,” Balas says. “This has served us well in the past and will continue to motivate me and serve as our north star as we chart the course, measure progress, and look forward to a bright future.”
What does the future hold for the REIT’s sustainability efforts? Balas says he’ll continue pressing for meaningful sustainability measures “that are practical, make business sense, and help the environment.” He adds that the team at Public Storage is “continuing to plan, research and test as we look for the next step in our decarbonization journey that will deliver clear value for our stakeholders.”
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Public Storage is working on BREEAM certifications and earned a rating for 60 properties in 2022. The REIT said it selected BREEAM because it evaluates existing assets and operations without requiring prerequisite investments or enhancements. Read more here.
Public Storage partnered with rooftop solar developer Solar Landscape on 133 rooftop community solar projects in Maryland, New Jersey, and Illinois. Read more here.