Diversified Healthcare Trust
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Renewable Energy Share:0%
ESG Focus Areas
- Energy efficiency
- Water efficiency
- Waste reduction
- Climate change resilience
- Tenant engagement
Environmental Achievements
- 33 properties (3,362,012 sq ft) achieved Green Lease Leaders — Gold Partner status
- Implementation of energy and water management programs, including LED lighting upgrades and HVAC optimization
- Increased visibility into operational performance for over 18 million square feet of senior living properties
- 1305 Corporate Center Drive achieved ENERGY STAR Certification with a score of 93, resulting in estimated savings of over $25,000 per year
Social Achievements
- RMR, DHC's manager, focuses on hiring, training, and developing a workforce that contributes positively to society and reduces environmental impact
- AlerisLife's "Take it Back" strategy aims to make a positive difference in the communities where it operates
- Recognized as having a Gender Balanced Board by 50/50 Women on Boards
Governance Achievements
- Adoption of Governance Guidelines and Committee Charters
- Implementation of a Code of Business Conduct and Ethics, along with a Governance Hotline
- Establishment of a Business Partners’ Code of Conduct, an Employee Health and Wellness Policy, a Human Rights Policy, and a Philanthropy Policy
Climate Goals & Targets
Environmental Challenges
- Maintaining comfort for vulnerable populations amidst rising utility costs
- Increased susceptibility of tenants (especially in life science spaces) to higher utility costs and water stress
- Maintaining electrical power during climate disasters
- Maintaining air quality during nearby wildfire events
Mitigation Strategies
- Energy and water management programs
- Strategic capital investments, including physical protection elements
- Routine evaluation of properties impacted by climate hazards
- Coordination with tenants and local authorities
- Property incident response plans and insurance assessments
- Benchmarking and BEPS compliance
Supply Chain Management
Responsible Procurement
- Incorporation of standards from the RMR Capital Project Guide for Green and Energy Efficient Equipment Purchasing
Climate-Related Risks & Opportunities
Physical Risks
- Increased severity of acute weather events
- Chronic changes to weather patterns
- Flooding
Transition Risks
- Changes in policy and market-driven expectations
- Increases in utility costs
Opportunities
- Increased demand for medical buildings and resilient senior housing
Reporting Standards
Frameworks Used: SASB
Certifications: ENERGY STAR, LEED
Third-party Assurance: Deloitte & Touche LLP (limited assurance for water intensity metric)
Awards & Recognition
- Green Lease Leaders — Gold Partner