Each year since 2005, Nareit has recognized REITs that demonstrate leadership in implementing environmentally and socially sustainable investment and operating practices with its Leader in the Light Awards. The 2024 Award recipients have shared some of the industry-leading strategies being employed in their business. Award winners demonstrate the various ways sustainability is being applied across each of the property sectors.
Data Centers: Digital Realty (NYSE: DLR)
Digital Realty’s use of green bonds and focus on global reporting supports the data center REIT’s continued growth by aligning new sources of capital with ongoing sustainability priorities. In its first-ever double materiality assessment, the REIT focuses not only on financial impacts to the REIT but a broad view of the impact of its business operations on stakeholders and society. Read more.
Diversified: JBG SMITH (NYSE: JBGS)
JBG SMITH has sustainability integrated across all levels and functions of the organization. Kim Pexton, SVP sustainability, shares that while the REIT’s objectives, performance targets, and progress reports are an important part of its sustainability program, the work to achieve results at scale is built by implementing hundreds of different moves daily. Read more here.
Health Care: Ventas, Inc. (NYSE: VTR)
Ventas’ sustainability goals focus on areas that can have the most impact on its business, which serves the large and rapidly expanding population of older citizens. Kelly Meissner, vice president of corporate ESG and sustainability, notes that refreshing goals ensures that they are tied to both the REIT’s sustainability work and its business success. She shares the importance of water efficiency in the senior housing operating portfolio (SHOP), which represents 80% of the REIT’s water consumption. Read more.
Industrial: Prologis, Inc. (NYSE: PLD)
Sustainability is woven seamlessly into the corporate fabric at Prologis as part of business strategy, processes, key performance indicators (KPIs), reducing risk, improving efficiency, expanding revenue, and talent recruitment opportunities. Sustainability influences the design, construction, and operation of its distribution centers, including how the placement of its facilities affects people in the communities that host them.
Lodging/Resorts: DiamondRock Hospitality Co. (NYSE: DRH)
DiamondRock Hospitality's incorporation of environmental and social sustainability into its operations benefits stakeholders and contributes to a healthier planet and stronger communities. In pursuit of its goal to reduce emissions 50% by 2030, the REIT is looking for acquisition targets that align with its sustainability plans and has benchmarked the entire portfolio in the ENERGY STAR Portfolio Manager, supporting monitoring, and improving its existing properties. Read more.
BXP is raising industry standards by sharing the firm’s sustainability practices, which have produced a catalog of case studies and a trophy case full of honors. This includes the first net zero, carbon-neutral office repositioning of its scale in Massachusetts. Ben Myers, SVP of sustainability, shares his belief that a greater understanding of tenant-landlord alignment of incentives will support scaling net zero strategies beyond showcase projects to mainstream adoption. Read more.
Residential: Equity Residential (NYSE: EQR)
Equity Residential focuses on low-cost efficiency measures at scale. The multifamily REIT highlights how a data-driven approach is driving the implementation of low-cost efficiency measures across its 300+ property portfolio. Kyle Hendricks, vice president of sustainability and green investment, explains how the REIT’s “small but strong” energy management team has created an efficiency program that “drives impact at scale.” Read more.
Retail: Kimco Realty Corp. (NYSE: KIM)
Kimco Realty Corp.’s (NYSE: KIM) corporate responsibility strategy closely aligns with the company’s broader values and business strategy. Tammy Chernomordik, vice president of corporate responsibility, shares how the REIT is ensuring its strategy remains relevant and impactful to all stakeholders in a field that is constantly changing. She also shows how a formal governance structure supported the KIMunity Culture and Belonging Council to develop six ERGs which encourage the REIT’s employees to participate and drive progress on themes they are passionate about. Read more.
Self-Storage: Public Storage (NYSE: PSA)
Public Storage focuses on making sustainability more approachable and actionable so that employees embrace sustainability as a team sport and are on the lookout for the next opportunity for improvement. Jonathan Balas, director of sustainability, shares how the REIT’s “steady, business-first approach delivers value and has a positive impact on the environment.” Read more.
Public Non-Listed REIT: JLL Income Property Trust
JLL Income Property Trust sees sustainability through the lens of fiduciary duty, seeing its program as a means to manage risk and drive financial performance. Elena Alschuler, head of sustainability, Americas, shares how they consider a range of factors related to resource use and climate risk for each asset, which she believes can support giving the REIT a competitive advantage and also help to create best practices and benchmarks that others can use. Read more.