Seritage Growth Properties
Climate Impact & Sustainability Data (2021)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Replacing or redeveloping aging structures with more energy-efficient buildings; implementing improved insulation, cool roofs, LED lighting, smart irrigation systems and landscape design, remote electricity monitoring and charging stations for electric vehicles.
Social Achievements
- Significant capital investments to repurpose and modernize buildings and land, enhancing local communities and contributing to job creation; building a corporate workforce on a culture of respect, safety, professionalism and integrity; encouraging employee volunteering through a corporate community service program and initiating an annual service day; working with local government agencies and providing access to properties for use as COVID-19 testing and/or vaccination sites; instituting a program to ensure inclusionary participation by certified Minority/Woman Business Enterprises in construction projects.
Governance Achievements
- Elected additional female trustees in 2018, 2019, and 2022; elected a female Chief Executive Officer and President in 2021 who also serves on the Board; aligning the interests of leadership and shareholders through a compensation philosophy that emphasizes performance goals and shareholder returns; subjecting trustees and employees to a Code of Business Conduct and Ethics.
Climate Goals & Targets
Environmental Challenges
- Litigation arising from historical transactions with Sears Holdings; macroeconomic headwinds including increased interest rates, softening credit markets, persistent inflation, global uncertainty, and potential U.S. economic recession negatively affecting the cost and availability of debt and equity capital and prices buyers are willing to pay for commercial real estate assets; potential for tenant defaults; uninsured losses relating to real property; potential for harmful mold in properties; potential liability and cost of compliance with environmental matters; costs associated with complying with the Americans with Disabilities Act (ADA).
Mitigation Strategies
- Settled litigation with Sears Holdings for approximately $35 million; implemented green initiatives to mitigate environmental risks; implemented a program to ensure inclusionary participation by certified Minority/Woman Business Enterprises; maintained high governance standards and increased the diversity of the Board and executive leadership; implemented a clawback policy for incentive compensation; amended certain compensation programs to align with current business strategy and goals, including retention incentives for key personnel during the strategic review process.