(Credit: Ventas)Ventas will focus on electrification, energy management and renewable energy to achieve net-zero carbon emissions by 2040, building upon its previous actions to improve environmental stewardship. This new pledge exceeds the company’s existing Science-Based Target initiative (SBTi) verified carbon reduction goal, adopted in 2021, to decrease absolute carbon emissions by 30% by 2030.
The real estate investment trust has invested $60 million in energy efficiency upgrades since 2018 at a 15% return on investment. These investments have reduced energy intensity per square foot by more than 5% annually on a same-store basis from 2018 to 2020. Ventas expects to continue to invest in energy efficiency at a similar speed going forward and commits to develop net-zero carbon-aligned energy efficiency goals by property type by 2025.
The company plans to achieve 60% renewable energy procurement by 2030 and 100% by 2035. It will “explore all viable options for renewable energy, including on-site generation, power purchase agreements and other green power purchase products,” the company says.
Ventas also commits to capital investment in deep decarbonization and electrification opportunities through the deployment of high-efficiency and/or electric HVAC systems, electric stoves and water heaters, and other technologies.
Any residual emissions that cannot be addressed through these actions will be abated by purchasing carbon offsets. Investments in efficiency, renewables and electrification will be prioritized over offsets to minimize the company’s gross emissions.
The Ventas sustainability team partners with housing operators to implement energy efficiency measures while trying to achieve net-zero carbon emissions. It focuses on energy management best practices such as benchmarking, evaluating renewable energy opportunities and pursuing LEED, IREM and other third-party green certifications for the company’s assets. This collaborative approach helps develop innovative and cost-effective solutions to reduce carbon emissions throughout its operating portfolio, Ventas says.
Other real estate investments in energy management initiatives include Blackstone, which unveiled its Emission Reductions Program to help reduce greenhouse gas emissions across many of its investments, as well as ABM’s bolstered sustainability and energy efficiency offerings.
Buildings that are able to operationalize data and have smart systems, such as the use of artificial intelligence, to monitor energy use and emissions will be more future proof, according to the World Economic Forum. These systems allow enhanced decision making and automatic controls that can show the impact of building emissions and needed maintenance or interventions.
