Katie Rothenberg, vice president, ESG, at AvalonBay Communities, Inc. (NYSE: AVB), sat down for a video interview at Nareit’s REITworks: 2024 Sustainability & Social Responsibility Conference, held in McLean, Virginia from Sept. 10-12.
Rothenberg discussed the importance of collaboration between the REIT sector and the federal government to establish clear guidelines and standards, particularly regarding emissions reductions. Rothenberg noted the industry’s efforts in pushing for U.S.-specific decarbonization pathways that are aligned with grid conditions, which enables companies to better communicate their progress to investors.
Rothenberg also pointed to AvalonBay's advancements in sustainability, especially its solar initiatives. Since launching its first solar array in 2017, AvalonBay has expanded to 60 operational arrays, with more in development. A key innovation is the REIT’s virtual net energy metering (VNEM) program, which allows AvalonBay to cover the entire electrical load of their communities, not just common areas. This reduces costs for residents while providing solid returns for the company. Currently, VNEM is only available in certain jurisdictions, including California and Colorado.
To ensure continued momentum in ESG efforts, Rothenberg stressed the importance of aligning sustainability strategies with broader business objectives, focusing on risk management and value creation. She also noted the need to build a network of internal advocates within the company to generate support and drive initiatives forward, especially since sustainability teams are typically small and cannot be in every meeting.