NAREIT - National Association of Real Estate Investment Trusts Inc.
06/03/2024 | Press release | Distributed by Public on 06/03/2024 04:33
REITs Integrate Sustainable Practices Across Their Businesses
06/03/2024 | by
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WASHINGTON, D.C. (June 3, 2024) - Transparent governance remains at the heart of the REIT model, as publicly traded REITs continue to responsibility advance environmental and social initiatives, according to the sixth edition of Nareit's REIT Industry Sustainability Report 2024.
"REITs know their properties must be able to simultaneously meet the needs of today while being prepared for tomorrow," said Jessica Long, Nareit's senior vice president of environmental stewardship and sustainability. "That's why they are actively mitigating financial risks by improving the resilience of their buildings, prioritizing people, and connecting with communities-all of which REITs detail through transparent public reporting."
Using extensive data, the publication demonstrates REITs' work in five areas: transparency and reporting, leadership and governance, resources and resilience, workforce and culture, and community and business connections.
Report Underscores REITs' Commitment to Corporate Responsibility and Sustainability
Three key themes emerge from the report. First, the REIT model continues to provide inherent governance benefits, including the alignment of management and shareholder financial incentives and independent oversight of sustainability and social objectives.
For example, of the 100 largest REITs by market capitalization:
- 99%have disclosed the formal role of the board in the oversight of sustainability.
- 89% report that the board receives an update on sustainability at least annually.
- 81% of REIT directors are considered independent.
Second, REITs have a proven history of owning and developing sustainable, resilient, and efficient real estate.
For example, of the 100 largest REITs by market capitalization:
- 94% publicly report on portfolio greenhouse gas emissions.
- 94%publicly report having a climate risk policy or program.
- 78%publicly report on-site clean energy generation.
Third, REITs continue to prioritize people and meeting the evolving needs of their employees, tenants, and the communities in which they operate.
For example, of the REITs responding to Nareit's Diversity Survey:
- 89% have programs to recruit and hire employees from underrepresented groups.
- 86% are actively taking steps to address pay equity.
- 85% offer programs supporting work-life balance programs.
To learn more, review the complete REIT Industry Sustainability Report 2024.