Resources for REITs Looking to Strengthen Their ESG Initiatives

Nareit recently published its third annual report of the Real Estate Investment Trust (REIT) industry’s environmental, social responsibility and governance (ESG) performance. The report shows that 98 of the largest 100 REITs by equity market cap reported publicly on their ESG efforts and 60% of REITs surveyed disclosed ESG goals, up from 53% in 2019.  

As a consultancy that works with several clients in the REIT industry, the ISOS team decided to highlight some helpful resources from Nareit that could be useful for companies in any industry:  

• Nareit Guide to ESG Reporting Frameworks (February 2019): Nareit produced this guide to help members better understand and navigate the array of ESG reporting frameworks. With investors using more than a dozen ESG reporting, disclosure and ranking platforms, understanding the universe of ESG frameworks is critical to effectively meet stakeholder expectations. This guide details the 15 most frequently evaluated ESG topics facing the real estate industry.  
   

• Nareit’s Practical Reference for ESG Implementation and Reporting (August 2021): The information contained in this Reference is distilled from ESG standards and frameworks, perspectives from subject matter experts and leading practice examples. It complements Nareit’s 2019 Guide to ESG Reporting Frameworks. 
   

• REIT ESG Dashboard: Now in its fourth year, the REIT ESG Dashboard, created by Nareit and GeoPhy, identifies and tracks ESG key performance indicators for the U.S. REIT industry. The dashboard reflects publicly reported data from 2016 through 2019 as reported in 2017 through 2020, respectively, for the 100 largest U.S. equity REITs by equity market cap per year.  

These are great materials for REITs that are looking to strengthen their ESG reporting, benchmark their performance or build their sustainability initiatives from the ground up.