Ventas Commits to Achieve Carbon Neutral Operations by 2040
Builds On Longstanding Actions Promoting Sustainability Across Operating Portfolio
Includes Operational Enhancements and Accelerated Actions to Achieve Carbon Reduction Targets
Ventas, Inc. announced its commitment to achieve net-zero operational carbon emissions by 2040, building upon its longstanding actions and commitment to environmental stewardship. This new pledge exceeds the Company’s existing Science-Based Target initiative (SBTi) verified carbon reduction goal, adopted in 2021, to decrease absolute carbon emissions by 30% by 2030.
The Company’s strategy to achieve operational carbon neutrality includes three primary components, which will be implemented in the Office and Senior Housing Operating (“SHOP”) portfolios whose building emissions comprise the Company’s operational carbon footprint:
- Energy Efficiency: Ventas has invested $60 million in energy efficiency upgrades since 2018 at a 15% return on investment. These investments have reduced energy intensity per square foot by more than 5% annually on a same-store basis from 2018 to 2020. Ventas expects to continue to invest in energy efficiency at a similar cadence going forward and commits to develop net-zero carbon-aligned energy efficiency goals by property type by 2025.
- Renewable Energy: Ventas commits to achieve 60% renewable energy procurement by 2030 and 100% by 2035. The Company will explore all viable options for renewable energy, including on-site generation, power purchase agreements and other green power purchase products.
- Electrification: Ventas commits to capital investment in deep decarbonization and electrification opportunities through the deployment of high-efficiency and/or electric HVAC systems, electric stoves and water heaters, and other technologies.
Any residual emissions that cannot be addressed through these actions will be abated by purchasing high-quality carbon offsets. Investments in efficiency, renewables and electrification will be prioritized over offsets to minimize the Company’s gross emissions.
“Ventas recognizes the imperative need to take significant actions toward decarbonization, and is dedicated to a well-conceived and rigorously executed approach to achieving operational net-zero carbon emissions,” said Debra A. Cafaro, Ventas Chairman and Chief Executive Officer. “Our net-zero goal continues our leadership in sustainability and builds on our track record of achievements and commitments to date, starting with our ongoing investments in energy efficiency and our SBTi-validated emissions reduction target. We believe that today’s commitment promotes the interests of our stakeholders and aligns with our values of health and safety for residents, tenants, care providers and patients.”
Cafaro continued, “We are proud of the strategy we developed to achieve this ambitious goal of net-zero operational emissions by 2040, and look forward to continued collaboration with our partners and suppliers to promote sustainability and deliver long-term superior results.”
The Ventas Sustainability team partners with leading Office and Senior Housing operators to implement energy efficiency measures, energy management best practices such as benchmarking, evaluate renewable energy opportunities and pursue LEED, IREM and other third-party green certifications for the Company’s assets. This collaborative approach helps lead the way in developing innovative and cost-effective solutions to reduce carbon emissions throughout its operating portfolio.
Ventas will continue innovating to meet its net-zero operational commitment for the future, building on its extensively recognized leadership in sustainability:
- Placed on CDP’s “A List,” which recognizes the top 2% of global companies scored
- Named an Energy Star Partner of the Year for energy management practices
- Ranked #1 listed healthcare REIT on GRESB since 2017
- Received Nareit Leader in the Light for Healthcare for the fifth consecutive year
To advance its sustainability goals while continuing to grow, Ventas has a comprehensive ESG assessment process integrated into due diligence for acquisitions, dispositions, developments and redevelopments and the selection of operators and partners. The Ventas ESG team evaluates each potential business opportunity against nine ESG categories, providing decision-makers with a comprehensive report to support the best long-term investment decisions.