Climate Change Data

Environmental Metrics

ESG Focus Areas

• Aging Population
• Governance and Compliance
• Our Partners
• Our Environmental Practices
• Our Employees
• Our Communities
• Our Investors

Environmental Achievements

• Achieved GRESB’s Green Star.
• 37 buildings were Green Arrow Building Certified.
• Collaborated with operators to retrofit facilities with high-efficiency LED lights.
• Expanded waste stream and recycling performance data collection and analysis.
• Added five roof-top PV arrays to outpatient medical portfolio.
• Invested in water conservation measures in several properties.

Social Achievements

• Launched Welltower Foundation.
• Recognized by the Healthy Ohio Business Council for commitment to employee well-being.
• Sponsored the Aspen Ideas Festival: Spotlight Health, and launched a social media campaign (#ShareForALZ) reaching approximately 500,000 supporters.
• Completed $4.8 billion of new investments, 77% with existing partners.
• Expanded Management Development program, Compass.
• Launched Welltower University.
• Organized first company-wide Day of Caring (294 volunteer hours).

Governance Achievements

• Separated the roles of Chairman and CEO.
• Implemented a new long-term incentive program based on forward-looking performance metrics.
• 97 percent of shareholders supported the company’s executive compensation program.

Climate Goals & Targets

Environmental Challenges

• Declining availability of freshwater.
• Increasing cost of providing care to people with dementia.

Mitigation Strategies

• Implemented mitigation measures at properties, including smart irrigation technologies, high-efficiency fixtures and high-efficiency cooling towers.
• Developing new and innovative ways to house and care for dementia patients.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Sustainability Code of Conduct
• LEED EBOM and material selection requirements
• Preferred pricing programs with organizations recycling used carpets and providing low-VOC alternatives.

Climate-Related Risks & Opportunities

Physical Risks

• Declining availability of freshwater

Transition Risks

• Rising resource prices
• Stronger legislation

Opportunities

• Energy efficiency upgrades

Reporting Standards

Frameworks Used: GRI G4 CORE, Dow Jones Sustainability Index (DJSI), Global Real Estate Sustainability Benchmark (GRESB), CDP

Certifications: LEED Platinum and Gold, ENERGY STAR®, BREEAM, Green Arrow Building Certification

Third-party Assurance: Point380 (environmental emissions data)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• GRESB Green Star

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Effective Business Partnerships
• Financial Regulatory Compliance
• Our People, Training & Development
• Healthful Work Environments
• Materials, Construction & Building Efficiency
• Biodiversity
• Social Integration

Environmental Achievements

• Named to the Dow Jones North America Sustainability Index
• Received the GRESB Green Star designation for the second consecutive year
• Recognized by CDP Leadership Band, FTSE4GOOD and MSCI
• Honored with a Leader in the Light Award from NAREIT
• Total (scope 1, 2 and 3) emissions decreased by 4%

Social Achievements

• Launched the Welltower Foundation with a $250,000 donation to the Alzheimer’s Association (total donation exceeding $3 million)
• Welltower was named as 2020 Women on Boards Winning Company for having 20% or more of board seats held by women.
• Employee volunteerism and community outreach programs

Governance Achievements

• Implementation of a comprehensive, multi-year sustainability strategy
• Established new organizational structure to enhance sustainability across the property portfolio
• Updated the charter of the Nominating/Corporate Governance Committee to include oversight for the company’s sustainability program

Climate Goals & Targets

Environmental Challenges

• Declining availability of freshwater
• Increased energy consumption and intensity (attributed to portfolio growth and increased tenant data)

Mitigation Strategies

• Installation of smart irrigation systems and low flow fixtures
• Energy reduction projects where financially viable
• Purchase of green power and development of on-site renewable technology

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Sustainability Code of Conduct
• Sustainable purchasing policies aligned with LEED EBOM

Climate-Related Risks & Opportunities

Physical Risks

• Declining freshwater availability

Transition Risks

• Rising resource prices
• Stronger environmental legislation

Opportunities

• Energy efficiency improvements
• On-site renewable energy development

Reporting Standards

Frameworks Used: GRI G4 - Core

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being

Corporate giving strategy aligns with SDG 3.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Dow Jones North America Sustainability Index
• GRESB Green Star
• CDP Leadership Band
• FTSE4GOOD
• MSCI
• NAREIT Leader in the Light Award
• 2020 Women on Boards Winning Company

Environmental Metrics

ESG Focus Areas

• Energy consumption
• Water consumption
• GHG emissions
• Waste sent to landfill and waste diversion rates
• Green building certifications
• Tenant sustainability engagement
• Employee training & development
• Diversity & equal opportunity
• Employee health, safety and wellness
• Philanthropic partnerships

Environmental Achievements

• Certified eleven medical office buildings under the IREM Certified Sustainable Property Program and 17 seniors housing communities under the Energy Star Building Certification Program
• Introduced green leases in our Medical Office portfolio and were recognized through the Institute for Market Transformation and the Department of Energy with the Green Lease Leader Award
• Were honored as an EPA Green Power Partner for renewable energy usage, and were listed in the Dow Jones North America Sustainability Index
• 1 MW of solar installed across control boundary
• 27 properties with bike racks
• 8 properties have EV stations installed

Social Achievements

• Extended wellness programs to our employees across the globe. These research-based programs, fitness challenges and health screenings had tremendous participation, resulting in a healthier work environment and healthier workforce
• Through the Welltower Foundation, we provided more than $800,000 in funds to charitable organizations during 2017, including $80,000 in hurricane relief funding across the US and Puerto Rico
• Participated in the inaugural Sustainable Development Impact Summit, sponsored by the World Economic Forum

Governance Achievements

• Updated our Code of Business Conduct and Anti-Corruption Policy
• 100% of employees received refresher training on insider trading and anti-corruption in 2017

Climate Goals & Targets

Environmental Challenges

• Regulatory changes related to climate and energy ordinances (energy benchmarking, minimum energy performance requirements, carbon tax schemes)
• Increased water and sewer costs and restrictions on urban water use

Mitigation Strategies

• Mechanisms in place to ensure compliance with existing and emerging regulations
• Owning and operating efficient properties, upgrading to the latest technologies, and pursuing green building certifications
• Measuring water usage, monitoring for trends, and upgrading to low-flow and high-efficiency fixtures and equipment
• Implementing cooling tower controls, maximizing concentration cycles and conducting monthly inspections

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Purchasing products with recycled content; purchasing Forest Stewardship Council or Sustainable Forestry Initiative certified paper products; partnering with suppliers offering take-back programs; sourcing local, organic produce; sourcing free-range, antibiotic-free chicken and sustainably and ethically sourced seafood; purchasing Energy Star labeled equipment

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes related to climate and energy ordinances

Opportunities

• Changing consumer preference for energy-efficient and sustainable properties

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Energy Star, IREM Certified Sustainable Property, LEED, WELL, BREEAM

Third-party Assurance: Lloyd’s Register Quality Assurance, Inc. (LRQA)

UN Sustainable Development Goals

• Good health and well-being
• Gender equality
• Sustainable cities and communities
• Climate action

Welltower's work contributes to these goals through providing health and wellness infrastructure, supporting disaster relief, promoting gender equality through CORE women's network, developing sustainable properties, and reducing emissions

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• RobecoSAM 2018 Sustainability Yearbook (Industry Mover)
• EPA Green Power Partner
• Green Lease Leader Award
• Listed in the Dow Jones North America Sustainability Index

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Water Efficiency
• Waste Management
• Diversity & Inclusion
• Corporate Governance
• Risk Management
• Stakeholder Engagement
• Human Capital
• Community Investment

Environmental Achievements

• 8.5% GHG emissions reduction over baseline
• 2.1% energy saved over 2018
• 367 LED retrofit projects completed to date
• Nearly 20,000,000 kilowatt-hours of green power used
• Installation of a solar array at Autumn Glen senior living community
• Issued a $500 million green bond

Social Achievements

• Launched Diversity & Inclusion Council
• Achieved 1:1 gender parity across the organization
• 45% of revenue-generating positions held by women
• Zero lost time incident rate
• $401,000 invested in employee training
• 50% employee engagement in WELL+Being programs
• $121,850 in 2019 charitable giving

Governance Achievements

• Established ESG governance structure with direct reporting to CFO
• 75% female and minority representation on Independent Director leadership
• 44% female representation on the Board of Directors
• Implemented anti-corruption training for employees
• Regular review of significant risk exposure by the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Extreme variability in weather patterns
• Increased severity of weather events
• Impacts of rising sea levels
• Increased policy and legislation
• Reputational risks
• Evolving customer behavior

Mitigation Strategies

• Diversified portfolio footprint to limit exposure to high-risk areas
• Strategic investments in energy reduction projects
• Sustainable purchasing throughout senior housing portfolio
• Implementation of the Performance Playbook for senior housing operators
• Active management and negotiation of energy rates
• Procurement of renewable energy

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Partnerships with key vendors with sustainable business models
• Welltower Advisory Services program
• Purchasing of Cradle to Cradle (C2C) carpet products
• 100% purchasing of ENERGY STAR computers
• 51% of office supply spend is eco-friendly

Climate-Related Risks & Opportunities

Physical Risks

• Extreme variability in weather patterns
• Increased severity of weather events
• Impacts of rising sea levels

Transition Risks

• Increased policy and legislation
• Evolving customer behavior

Opportunities

• Proactive reduction of operating costs
• Increased building value
• Piloting new technologies
• Attracting tenants/residents

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD

Certifications: LEED, BREEAM, ENERGY STAR, IREM Certified Sustainable Property

Third-party Assurance: Lloyd’s Register Quality Assurance, Inc. (LRQA)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 11: Sustainable Cities and Communities
• Goal 5: Gender Equality
• Goal 9: Industry, Innovation and Infrastructure
• Goal 7: Affordable and Clean Energy

Welltower's initiatives align with these goals through providing healthcare infrastructure, creating job opportunities, reducing environmental impact, promoting gender equality, investing in sustainable development, and reducing energy consumption.

Sustainable Products & Innovation

• C2C carpet products
• ENERGY STAR computers
• Eco-friendly office supplies
• Philips Cares for Senior Living technology

Awards & Recognition

• ENERGY STAR Partner of the Year
• Smart Energy Decisions’ Innovation Award
• NAREIT Leader in the Light Award
• Green Lease Leader Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Water Efficiency
• Waste Management
• Workforce Diversity
• Employee Well-being
• Corporate Governance
• Anti-Corruption
• Supply Chain Sustainability
• Community Investment

Environmental Achievements

• 4.9% reduction in Scope 1 and 2 GHG emissions over 2018 baseline
• 3.5% energy saved in control boundary over 2018 baseline
• 12.1% water saved in control boundary over 2018 baseline
• 367 LED retrofit projects completed, generating an estimated $7.2M in operational cost savings
• Joined the Renewable Energy Buyers Alliance (REBA)
• Used over 33,000,000 kilowatt-hours of green power

Social Achievements

• Launched welltowerLIVING™, a wellness-focused housing concept for seniors
• Provided over 1.7 million units of PPE to seniors housing and post-acute operators
• Shifted to a flexible working schedule with a $300 equipment stipend for corporate employees
• Launched WELL+Being program focusing on employee mental and physical health
• Invested $294,497 in employee training

Governance Achievements

• Increased ESG team staffing
• Developed a Sustainability Management System and ESG dashboard
• Expanded executive leadership team performance requirements to include ESG goals
• 80% female and minority representation on the Board of Directors

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on occupancy rates and operations
• Supply chain disruptions
• Climate-related physical risks (extreme weather events)
• Transitional risks (increasing energy and carbon policies)

Mitigation Strategies

• Distributed PPE, hosted informational sessions for operators, implemented flexible work schedules
• Developed partnerships with sustainable vendors
• Diversified portfolio footprint to limit exposure to high-risk areas
• Annual review of policies and legislative requirements, proactive reduction of energy usage and GHG emissions

Supply Chain Management

Supplier Audits: 13 top suppliers surveyed in 2020; no risks identified

Responsible Procurement

• Partnerships with key vendors with sustainable business models
• Welltower Advisory Services program to encourage sustainable purchasing by operating partners
• Purchasing of ENERGY STAR® computers and eco-friendly office supplies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme variability in weather patterns
• Increased severity of weather events
• Impacts of rising sea levels

Transition Risks

• Increasing energy and carbon policy and legislation
• Reputational risk
• Evolving customer and investor preferences

Opportunities

• Energy efficiency upgrades
• Renewable energy procurement

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD

Certifications: ENERGY STAR® Partner, Green Lease Leader Gold

Third-party Assurance: Lloyd’s Register

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

Welltower's initiatives align with these goals through providing senior housing and healthcare infrastructure, promoting gender equality, creating jobs, investing in sustainable buildings, and reducing environmental impact.

Sustainable Products & Innovation

• LED lighting
• High-efficiency HVAC and plumbing fixtures
• Cradle to Cradle (C2C) carpet

Awards & Recognition

• ENERGY STAR® Partner of the Year (2020)
• Green Lease Leader Gold (2020)
• Inclusion in Dow Jones Sustainability World and North American Indices
• Inclusion in Bloomberg Gender-Equality Index
• Inclusion in S&P Global Sustainability Yearbook

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Water Conservation
• Waste Reduction
• Governance
• Social Responsibility

Environmental Achievements

• Received the 2022 ENERGY STAR Partner of the Year Award at the level of ‘Sustained Excellence’
• Completed 382 LED retrofit projects
• Reduced energy consumption by 4.2%

Social Achievements

• Named by S&P to the 2022 Sustainability Yearbook
• Named one of the Top 10 Most Sustainable REITs by Barron’s

Governance Achievements

• Established an ESG Steering Committee co-headed by the CEO and AVP, Capital Markets & ESG
• Incorporated sustainability goals in determining executive compensation

Climate Goals & Targets

Environmental Challenges

• Compliance with municipal benchmarking reporting requirements
• Acute physical risks from flooding
• Chronic physical risks from heat stress
• Supply chain disruptions due to extreme weather events

Mitigation Strategies

• Engaged third-party consultants to monitor and assess municipal reporting requirements
• Maintained comprehensive insurance coverage
• Implemented cool roofing systems and upgraded HVAC systems
• Identified alternative providers and preferred contracts with vendors

Supply Chain Management

Supplier Audits: 15 key suppliers

Responsible Procurement

• Vendor Code of Conduct
• Encouragement of sustainable practices

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heat stress
• Wildfires
• Hurricanes
• Water stress

Transition Risks

• Regulatory changes
• Technology upgrades
• Reputational risks

Opportunities

• Reduced water usage
• Increased energy efficiency
• Access to green bond financing

Reporting Standards

Frameworks Used: GRI, Greenhouse Gas Protocol

Certifications: ENERGY STAR, LEED, BREEAM

Third-party Assurance: Lloyd’s

Sustainable Products & Innovation

• Green bonds

Awards & Recognition

• 2022 ENERGY STAR Partner of the Year – Sustained Excellence
• S&P 2022 Sustainability Yearbook
• Barron’s Top 10 Most Sustainable REITs

Environmental Metrics

ESG Focus Areas

• Energy
• Water
• Waste & Emissions Performance
• Health, Safety & Wellness
• Data & Cybersecurity
• Renewable Energy
• Talent Attraction & Retention
• Responsible Supply Chain
• Climate Change Risk & Resilience
• Employee Engagement & Satisfaction
• Transparent Disclosure
• Human Rights
• Diversity, Equity & Inclusion

Environmental Achievements

• 12.2% Scope 1 and 2 GHG emissions intensity reduction over 2018 baseline
• 11% Control Boundary Energy saved over 2018 baseline
• 8.7% Control Boundary Water saved over 2018 baseline
• 10,000+ tons of waste diverted from landfill in 2022
• Achieved original emissions reduction goal 2 years ahead of schedule
• Set a new, near-term target, in line with the Science Based Targets initiative’s well-below 2oC scenario
• Doubled green power purchasing compared to the prior year
• Offset over 51,000 MWh of electricity usage with 100% renewable energy credits
• Reduced Scope 1 & 2 emissions intensity by 6.8% from 2021 to 2022

Social Achievements

• Inclusion in the Bloomberg Gender-Equality Index and improved overall score
• Increased employee volunteer hours by over 10% in 2022
• Company-wide employee satisfaction survey with 75% response rate and 86% favorable overall engagement score
• Over 95% of employees completed ESG-aligned courses
• Added 48 net new employees in 2022
• Increased ENG participation 10% over 2021 participation

Governance Achievements

• Formation and launch of the Welltower ESG Steering Committee
• Inclusion of a new ESG scorecard in the 2022 Named Executive Officer annual incentive program
• Recognition by Labrador as a 2022 Transparency Award winner
• Introduction of an updated Vendor Code of Conduct
• Issued a $550 million green bond in 2022

Climate Goals & Targets

Environmental Challenges

• Water stress
• Wildfire
• Regulatory changes
• Floods
• Heat stress
• Hurricanes & Typhoons
• Technology advancements
• Sea level rise
• Reputational risk

Mitigation Strategies

• Water efficiency upgrades
• Emergency Preparedness plans
• Wildfire Preparedness Manual
• Biannual legislative requirement reviews
• Cool roofing systems
• HVAC optimization
• Leak detection systems
• Drought-tolerant landscaping
• Hurricane-proof windows
• Green lease language
• Engagement and support programs
• Green bond program funding
• Integration of new technologies

Supply Chain Management

Responsible Procurement

• Updated Vendor Code of Conduct
• Sustainable building supplies

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Wildfire
• Floods
• Heat stress
• Hurricanes & Typhoons
• Sea level rise

Transition Risks

• Regulatory changes
• Technology advancements
• Reputational risk

Opportunities

• Energy efficiency projects
• Renewable energy procurement
• Green bond program

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Certifications: ENERGY STAR®

Third-party Assurance: LRQA

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Welltower's strategy aligns with nine UN Sustainable Development Goals

Awards & Recognition

• ENERGY STAR® Partner of the Year Sustained Excellence Award
• Labrador's 2022 Transparency Award

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Putting People First
• Leading with Integrity

Environmental Achievements

• 23.2% Scope 1 and 2 GHG Emissions Intensity Reduction Over 2018 Baseline
• 22.6% Control Boundary Energy Saved Over 2018 Baseline
• 13.4% Control Boundary Water Saved Over 2018 Baseline
• 349 valid green building certifications (+210 from 2022)
• Allocated 100% of $1.04 billion in net green bond proceeds towards eligible green building projects

Social Achievements

• Expanded health and wellness benefits
• Increased parental leave
• Renewed commitment to the Welltower Diversity Council with updated goals and leadership team sponsors
• Achieved #1 ranking by Green Street Advisors for Corporate Governance among all US REITs
• 92% of our employees completed cybersecurity training

Governance Achievements

• Adopted a formal ESG Policy
• Achieved #1 ranking by Green Street Advisors for Corporate Governance among all US REITs
• 92% of our employees completed cybersecurity training

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied)
• Climate change related risks (water stress, wildfires, floods, heat stress, hurricanes/typhoons, sea level rise, regulatory changes)
• Technology related risks

Mitigation Strategies

• Implementing a Best-in-Class Data Management Strategy
• Issuing Green Bonds
• Implementing Efficiency Projects
• Attaining Green Building Certifications (GBCs)
• Developing and deploying disaster recovery plans
• Installing cool roofing systems
• Optimizing HVAC run times
• Incorporating leak detection systems and drought-tolerant landscaping
• Installing hurricane-proof windows (where applicable)
• Incorporating green lease language and developing engagement and support programs
• Expanding green bond program funding
• Biannually review legislative requirements for the portfolio to support ongoing reporting and compliance efforts
• Evaluate opportunities to integrate new technologies, automation systems, or other high-efficiency options across the portfolio

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct
• Sustainable Supplies (e.g., ShawContract EcoWorx® tile)

Climate-Related Risks & Opportunities

Physical Risks

• Water Stress
• Wildfire
• Floods
• Heat Stress
• Hurricanes & Typhoons
• Sea Level Rise

Transition Risks

• Regulatory Changes
• Technology Changes
• Changing Customer and Investor Preferences

Opportunities

• Energy efficiency upgrades
• Renewable energy procurement
• Integration of new technologies

Reporting Standards

Frameworks Used: TCFD, GRI, SASB, UN Sustainable Development Goals

Certifications: ENERGY STAR, LEED, WELL, BREEAM, IREM

Third-party Assurance: LRQA

Awards & Recognition

• ENERGY STAR Partner of the Year (Sustained Excellence level)
• Labrador 2023 Transparency Award