Sustainability is more and more being built-in into core enterprise technique, with REITs utilizing knowledge to information funding selections, handle danger, and create long-term worth throughout their portfolios, panelists stated throughout Nareit’s July 21 webinar, “Sustainability & Technique: What REITs Are Doing in 2026.” The dialogue coincided with the discharge of Nareit’s REIT Industry Sustainability Report 2026which analyzes sustainability reporting and practices among the many business’s largest REITs.
Moderated by Jessica Lengthy, Nareit SVP, environmental stewardship and sustainability, the webinar featured: Michael Chang, head of sustainability and resilience at Host Motels & Resorts; Suzanne Fallender, SVP of worldwide affect and sustainability at Prologis; Gretchen Keller, senior director of vitality and sustainability at Tanger; and Dana Schneider, SVP and director of vitality and sustainability at Empire State Realty Belief.
Lengthy famous that sustainability reporting has turn out to be normal observe throughout the business, with 96% of fairness REITs within the FTSE Nareit All Fairness REITs Index now publishing standalone sustainability reviews. This yr’s report by Nareit additionally introduces sector-level evaluation, highlighting how sustainability priorities differ throughout property varieties whereas supporting a typical purpose of making worth and managing danger.
A recurring theme all through the dialogue was that buyers more and more wish to perceive not solely sustainability objectives, however how corporations plan to attain them.
Fallender stated conversations with buyers continuously middle on Prologis’ net-zero dedication and the information supporting its technique. She defined that the corporate focuses on measurement, vitality effectivity, electrification, and renewable vitality whereas making certain high-quality knowledge can inform selections at each the portfolio and asset ranges.
“You don’t need it to sit down on a shelf,” Fallender stated of sustainability knowledge. “It’s worthwhile to be certain it is actually pulling into the prevailing processes and planning that you’ll do.”
Schneider stated correct, verified knowledge is crucial for demonstrating mission efficiency, supporting capital allocation selections, and speaking outcomes to buyers and boards. She famous that vitality, water, upkeep, compliance, and value knowledge all contribute to understanding an asset’s worth and danger profile.
“The info is extraordinarily essential, not only for sustainability reporting,” Schneider stated. “All of it ties again to ROI.”
Keller emphasised that sustainability knowledge turns into most respected when it’s shared throughout organizations somewhat than remaining inside sustainability groups. She stated even a utility audit can increase into conversations involving operations, leasing, tenant engagement, and long-term planning.
“These selections turn out to be stronger if you happen to’re taking a look at an information level by means of a number of views throughout groups,” Keller stated.
Chang stated board discussions at Host Motels & Resorts have more and more centered on points such because the rising demand for vitality and water pushed by AI knowledge facilities. These conversations have helped form firm priorities, together with pairing AI-enabled constructing programs with water monitoring expertise to enhance effectivity and detect leaks earlier.
“That is the place that board enter is basically crucial,” Chang stated. “They’re gaining perception from different boards that they sit on from what different corporations are doing to assist us concentrate on our wants.”
Panelists agreed that boards more and more anticipate sustainability initiatives to be tied to measurable enterprise outcomes and monetary efficiency. As Lengthy famous through the dialogue, “Translating sustainability metrics to monetary metrics is the theme of the yr—possibly the last decade.”
Different subjects lined included:
- How industrial REITs are working with tenants by means of inexperienced leases, renewable vitality, and shared sustainability objectives.
- Why buyers are asking extra questions on decarbonization, knowledge high quality, and neighborhood funding.
- Cross-functional collaboration amongst sustainability, finance, IT, accounting, leasing, and operations groups.
- How REIT boards are integrating sustainability into governance, enterprise danger administration, and capital allocation selections.
- Water effectivity methods, together with leak detection, good irrigation, AI-powered monitoring, and regional water stress assessments.
- How sustainability priorities differ throughout property sectors whereas supporting the widespread objectives of preserving worth, mitigating danger, and bettering long-term efficiency.
Watch the entire replay of the webinar on REIT.com.
