Climate Change Data

Ventas, Inc.

Climate Impact & Sustainability Data (2016-2017, 2019, 2021, 2022-2023, 2023)

Reporting Period: 2016-2017

Environmental Metrics

Total Carbon Emissions:441,164 tCO2e/year (2017)
Scope 1 Emissions:77,503 tCO2e/year (2017)
Scope 2 Emissions:363,661 tCO2e/year (2017)
Scope 3 Emissions:87,721 tCO2e/year (2017)
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,318,825 MWh/year (2017)
Water Consumption:1,724,817,091 gallons/year (2017)
Waste Generated:77,636 tons/year (2017)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental

Environmental Achievements

  • Reduced total GHG emissions from 451,204 MTCO2e in 2016 to 441,164 MTCO2e in 2017
  • Increased waste diversion rate from 12% in 2016 to 14% in 2017

Climate Goals & Targets

Environmental Challenges

  • Incomplete scientific knowledge and other factors affecting precise GHG quantification
  • Limitations in energy use data due to the nature and methods used for determining such data
  • Data coverage less than 100% for some properties
Mitigation Strategies
  • Engaged a third-party consultant with expertise in utility data aggregation and environmental impact analysis
  • Used estimations based on MWh per square foot per month for properties with less than 100% data coverage
  • Aligned processes with ISO 14001

Supply Chain Management

Supplier Audits: Not disclosed

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Goby, Inc.

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:290313.2 tonnes (2018); 292401.06 tonnes (2019)
Renewable Energy Share:0.03% (2018); 0.03% (2019)
Total Energy Consumption:950731.19 MWh (2018); 987367.67 MWh (2019)
Water Consumption:11527650.2 m3 (2018); 11305185.13 m3 (2019)
Waste Generated:92592.86 tonnes (2018); 97985.24 tonnes (2019)

ESG Focus Areas

  • Environment
  • Social
  • Governance
  • Health and well-being

Environmental Achievements

  • Reduced same-store energy use by ~1% and emissions by 1.7% in 2019
  • Invested ~$30M in energy reduction initiatives (primarily LED retrofits and BAS upgrades)
  • Earned the most senior housing ENERGY STAR certifications of any owner, with more than 50% of all U.S. 2019 ENERGY STAR certifications and 100% of Canada certifications for this sector
  • Certified 44 U.S. senior housing communities (nearly 3M sqft) and six Canadian communities
  • Earned inaugural IREM Certified Sustainable Property (CSP) certification in 2019 at an MOB in California

Social Achievements

  • Maintained a gender-balanced organization in 2019 with 48% female employees
  • Named to the Bloomberg Gender Equality Index for the first time
  • Signed the United Nations Women’s Empowerment Principles
  • Donated ~$9 million for a new K-8 public school facility in West Philadelphia
  • Provided COVID-19 testing kits and analysis from Mayo Clinic Laboratories to senior living operators, testing over 14,000 employees and 1,400 residents

Governance Achievements

  • Completed its first comprehensive ESG materiality assessment
  • Expanded 2019 CSR D&I disclosures to include employee ethnicity and age data
  • Established an internal task force dedicated to helping operators and tenants navigate government relief programs and COVID testing

Climate Goals & Targets

Short-term Goals:
  • Reduce energy consumption by 10% by 2023
  • Increase renewable energy use by 10% by 2023
  • Reduce water consumption by 5% by 2023
  • Increase waste diverted from landfill by 5% by 2023
  • Achieve 100% LEED certification by 2019

Environmental Challenges

  • Potential financial impacts from climate-related transition risks (policy and legal changes, stakeholder concerns), physical risks (extreme weather events), and social risks (building safety and catastrophic events)
Mitigation Strategies
  • Portfolio diversification to reduce exposure to single factors or events
  • Resilient building design and strong emergency preparedness plans
  • Greenhouse gas emission reduction efforts
  • Insurance programs updated to incorporate risk exposures from new properties
  • Collaboration with property insurance carriers, asset management teams, and operating partners

Supply Chain Management

Supplier Audits: 100% of projects audited during the reporting year

Responsible Procurement
  • ESG requirements in procurement processes
  • Environmental product standards
  • Labor standards and working conditions
  • Business ethics
  • Human rights

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity of extreme weather events
Transition Risks
  • Policy and legal changes
  • Increased stakeholder concern
Opportunities
  • Energy efficiency investments
  • Sustainable development practices

Reporting Standards

Frameworks Used: GRI Standards, 2016, TCFD

Certifications: ENERGY STAR, LEED

Third-party Assurance: Goby

Awards & Recognition

  • GRESB top performing listed healthcare REIT (3 consecutive years)
  • FTSE4GOOD sustainability index (7 consecutive years)
  • Dow Jones Sustainability World Index
  • Bloomberg Gender Equality Index
  • 3BL Media’s 100 Best Corporate Citizens of 2020

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:349,110 MtCO2e (Scope 1 & 2 market-based) + 435,694 MtCO2e (Scope 3) = 784,804 MtCO2e
Scope 1 Emissions:113,638 MtCO2e
Scope 2 Emissions:235,472 MtCO2e (market-based)
Scope 3 Emissions:435,694 MtCO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,343,954 MWh
Water Consumption:10,193,046 m3
Waste Generated:90,075 tonnes
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental

Environmental Achievements

  • Reduced Scope 1 and 2 (location-based) emissions by 12.1% against 2018 baseline
  • Reduced Scope 1 and 2 (market-based) emissions by 16.3% against 2018 baseline
  • Reduced Scope 1 and 2 (market-based) emissions by 3.5% for same-store assets against 2020 performance
  • Reduced Scope 3 emissions by 16.0% against 2018 baseline (like-for-like categories)
  • Reduced total Scope 3 emissions by 3.2% against 2018 baseline
  • Reduced total Scope 3 emissions by 1.5% against 2020 performance
  • Reduced energy intensity by 21.5% against 2018 baseline
  • Reduced water intensity by 3.0% against 2018 baseline (after restatement for data anomalies)

Social Achievements

  • Not disclosed

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, WBCSD /WRI Corporate Value Chain (Scope 3) Accounting and Reporting Standard

Certifications: Null

Third-party Assurance: DNV Business Assurance USA, Inc.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2022-2023

Environmental Metrics

Total Carbon Emissions:777,596 tCO2e (Scopes 1+2+3)
Scope 1 Emissions:130,216 tCO2e
Scope 2 Emissions:255,446 tCO2e
Scope 3 Emissions:391,933 tCO2e

ESG Focus Areas

  • Climate Change
  • Diversity, Equity & Inclusion
  • Energy
  • Community Impact
  • Human Rights & Labor Relations
  • Strong Tenant, Resident & Operator Relationships
  • Responsible Investment & Development
  • Health, Safety & Wellness

Environmental Achievements

  • Reduced scope 1 + 2 market-based emissions by 20.4% and scope 3 emissions by 17.8% since 2018.
  • Reduced energy intensity by 22.8% since 2018.
  • Achieved goal to reduce energy intensity by 20% by 2028, six years early, in 2021.
  • Earned 154 ENERGY STAR® certifications in 2022, covering 12.7 million square feet of the portfolio.
  • Developed decarbonization roadmaps for all properties within operational control (~800) to advance net zero goal.
  • Implemented energy efficiency measures at more than 100 outpatient medical buildings.

Social Achievements

  • Achieved overall employee engagement in the 61st percentile of peer benchmark; 80% participation.
  • Ventas’s medical health benefits package exceeded the peer benchmark by 36%.
  • Outpatient medical portfolio ranked in the 93rd percentile in Kingsley Index, improving overall tenant satisfaction for the fourth straight year.
  • 96.7% of senior housing NOI was derived from tenants/operators that conduct resident satisfaction surveys.
  • In 2022, $28 million of active development spend was executed with M/WBEs.
  • Donated to more than 60 organizations in the communities where Ventas does business.

Governance Achievements

  • Expanded the role of the Nominating, Governance and Corporate Responsibility (NGCR) Committee to include oversight and monitoring of the company’s ESG and DE&I efforts.
  • Renamed the Nominating and Corporate Governance Committee to the Nominating, Governance and Corporate Responsibility Committee.
  • Achieved 99 out of 100 points and ranked #1 out of 10 respondents in the U.S. Healthcare group in the 2022 GRESB Public Disclosure Assessment.
  • 100% employee compliance on annual key policy acknowledgements.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero operational carbon emissions (scopes 1 and 2) by 2040
Medium-term Goals:
  • Reduce emissions from scopes 1, 2 and 3 on an absolute basis by 30% by 2030
  • Reduce intensity (MWh/1,000 SF) for properties in environmental control boundary by 20% over 10 years
  • Reduce intensity (cubic meters/1,000 SF) for properties in environmental control boundary by 20% over 10 years
  • Recycling programs at 100% of assets within environmental control boundary by 2028
Short-term Goals:
  • Prevent lost time injuries: annual goal of 0 lost time incidents for employees

Environmental Challenges

  • Water intensity reduction is behind track.
  • Recycling programs are behind track.
  • Research center tenant satisfaction did not exceed the Kingsley Index benchmark and decreased by 1.6%.
  • Two lost time incidents in 2022.
Mitigation Strategies
  • Implementing water meter technology, leak detection equipment, low-flow fixtures, and toilet retrofits.
  • Collaborating with operators to increase recycling adoption.
  • Implementing HVAC optimization projects, LED lighting upgrades, and partnering with Carbon Lighthouse.
  • Robust workplace safety protocols, training, and education practices.

Supply Chain Management

Responsible Procurement
  • Expanding relationships with M/WBEs
  • Engaging with service providers to support their DE&I efforts
  • Requiring vendors to comply with Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Extreme weather events
Transition Risks
  • Changes in investor preferences regarding climate impacts
Opportunities
  • Green building market opportunities
  • Increased investor attractiveness due to climate mitigation efforts

Reporting Standards

Frameworks Used: GRI, TCFD, UN SDGs

Third-party Assurance: Third-party assurance of certain ESG data and metrics available on website

UN Sustainable Development Goals

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

Initiatives contribute to these goals through energy efficiency, renewable energy, and emissions reduction efforts.

Awards & Recognition

  • 2023 ENERGY STAR® Partner of the Year Sustained Excellence in Energy Management Award
  • 2022 Top Corporate Citizen by 3BL Media
  • Nareit’s Healthcare Leader in the Light
  • Selected to the DJSI Index
  • ISS ESG Prime Status
  • Bronze in Nareit’s 2022 Diversity, Equity & Inclusion Recognition Awards
  • America’s Most Responsible Companies by Newsweek
  • Bloomberg Gender Equality Index (GEI)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:834820 MtCO2e
Scope 1 Emissions:132155 MtCO2e
Scope 2 Emissions:262646 MtCO2e
Scope 3 Emissions:440019 MtCO2e
Renewable Energy Share:11.3% of electricity from zero-carbon sources
Total Energy Consumption:1656666 MWh
Water Consumption:11911600 m3
Waste Generated:108668 tonnes
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Greenhouse Gas Emissions
  • Energy Consumption
  • Water Consumption
  • Waste Management
  • Diversity and Inclusion
  • Employee Engagement
  • Health and Safety
  • Employee Retention
  • Employee Wages

Environmental Achievements

  • Reduced Scopes 1+2 (market-based) emissions by 10.1% from 2022 to 2023
  • Reduced total Scope 3 emissions by 5.1% from 2022 to 2023
  • Reduced energy consumption intensity by 3.0% from 2022 to 2023
  • Reduced SHOP water use intensity by 2.1% from 2022 to 2023
  • Achieved Outpatient Medical & Research water use intensity of 100 m3/1,000 ft2 (target was 105 m3/1,000 ft2)

Social Achievements

  • Employee engagement percentile rank of 60th against peer benchmark
  • Employee participation rate in engagement survey of 83%
  • Voluntary retention rate of 93.4%
  • 100% of full-time employees earning $17/hour or greater
  • Lost Time Incident Frequency Rate (LTIFR) per 100 full-time employees of 0.5

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, Corporate Accounting Standard Revised Edition, WBCSD/WRI Corporate Value Chain (Scope 3) Accounting and Reporting Standard

Certifications: Null

Third-party Assurance: DNV Business Assurance USA, Inc.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed