SPOTLIGHT: THE HEART OF SENIOR LIVING
ness doesn’t have to participate in a rating program to make ESG activity a priority and realize the benefits.
Walking the talk For Ventas, a REIT with more than 700 senior living communities among its prop- erties, it was a natural outgrowth. “We’ve always done ESG, before it was
ESG,” says Kelly Meissner, director, sustain- ability, at Ventas. But its program started to get more for-
malized about a decade ago, spurred in part by European investors, who have made it a priority and sometimes a requirement. Ventas created the dedicated ESG position in 2015. Since then, buildings in Ventas’ senior housing and medical office portfolios have undergone extensive lighting retrofits, re- ducing consumption by up to 80 percent, among other achievements. While there’s a lot of experience on the
environment front, the social responsibility and governance areas are growing, too. Strong governance and accountability at
all levels “is non-negotiable for us,” Meis- sner says, adding that attention to gover- nance is part of good risk management.
Culture makes a difference Irvine, Calif.-based HCP is an old hand at sustainability, with seven consecutive Green Star designations from the Global Real Es- tate Sustainability Benchmark (GRESB) for its leadership approach to ESG disclosure. Among recent kudos: Named to Corporate Responsibility Magazine’s 100 Best Corpo- rate Citizens and winner of Ethical Board- room’s 2019 Best Corporate Governance Award for North American REITs. “For over a decade, HCP has been en-
gaged in a comprehensive sustainability program throughout its portfolio, achiev- ing long- and short-term goals to reduce
emissions, waste, energy usage and water consumption,” says Carol Samaan, vice president of corporate and sustainability counsel at HCP, in an email interview. “These green initiatives include LED
lighting retrofits, HVAC efficiency upgrades, efficient plumbing fixtures and renewable energy sources.” In the social responsibility and gover-
nance sectors, HCP’s attention to diversity has led to results like these: As of the end of last year, 47 percent of the company’s workforce is female; among the female workforce, 57 percent serve in a leadership capacity; and women account for 27 per- cent of all company officers. Its deep and broad program ranges from
offering funds for work-related continuing education to a paid volunteer day to fielding a company softball team. HCP outlines some of its culture and di-
versity objectives, which could make a good starting point for a company or community, as well (quoted from its 2018 Sustainability Report): • Attract top talent with consideration given to recruiting underrepresented groups.
• Reduce unconscious bias by providing training and enabling conversations at the leadership level.
• Foster a culture of fairness and tolerance with an engaged and collaborative work environment.
• Develop all employees through training and education while fostering upward mobility of our best-in-class talent. • Create an organization that
delivers
top results while maintaining a healthy work-life balance.
A boost to community life Many ESG-related activities are already enmeshed in senior living—creating an emergency evacuation plan, for instance. Others can be ramped up.
ESG-related features such as electric-car chargers, better lighting, improved indoor air quality, community service programs, and transparency in management turn out to be things residents want, too.
48 SENIOR LIVING EXECUTIVE JULY/AUGUST 2019 TAKE A “NIGHT WALK”
One of sustainability consultant Marla Thalheimer’s recommended activities is the “Night Walk.” You can involve a group of residents and staff and turn it into an activity. It’s just like it sounds: Take a walk at night around the community campus to look for opportunities to save energy. While some lights and equipment must stay on 24/7, she says you’ll spot quite a few that could be turned off at night and net an energy savings.
For instance, when there’s a capital invest- ment to be made, it makes sense to have it address sustainability, too. When an aging HVAC system needs to be replaced, a com- munity can opt for a greener investment. The cost of technology and lighting has
come down so quickly that even if you address only the low-hanging fruit on the environment branch, you can still realize significant savings, Thalheimer says. But the most important benefit in senior living ESG is the boost to choice and quality of life for residents and employees. Resi- dents are asking for electric-car chargers, better lighting, and improved indoor air quality, Thalheimer says. They also want to get in on the “S” and the “G”—with community service and transparency about how their communities are managed. Thalheimer offers some tips on how to
grow a community’s ESG capacity: • No silos. Your goal is to get these chang- es enmeshed in the culture, so people need to collaborate and communicate.
• Know your baseline. You won’t know how far you’ve come unless you know where you started. Free tools such as En- ergy Star’s Benchmarking and Portfolio Manager can help, at
energystar.gov.
• Start small. Adding one step at a time and really making it part of everyday life works better than launching a grand plan.
• Tap the REITs. “They’ve been at this a long time, and they have great resources,” Thalheimer says.
• Ask staff and residents. It’s an opportunity to engage, and they have good ideas.
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