Welltower

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Carbon per million dollars of physical infrastructure — PP&E plus leased real-estate, including upstream and downstream leased emissions (Scope 3 categories 8 + 13). The most complete view of physical-asset carbon intensity, relevant for REITs and infrastructure-heavy firms.

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Welltower is committed to implementing renewable energy technologies across its portfolio as part of its environmental stewardship strategy. The company has issued 'green' bonds in the past to fund green building development projects. The sustainability approach includes implementing energy efficiency, water efficiency and renewable energy technologies across the portfolio, with a focus on obtaining green building certifications and performing portfolio-wide physical and transition risk analyses.

Welltower does not disclose a removals strategy (no DAC, BECCS, biochar, or afforestation programs mentioned). Climate strategy is centred on operational emissions reductions, renewable energy procurement via RECs/green power contracts, and energy/water efficiency rather than negative-emissions technologies.

• Energy efficiency investments and ENERGY STAR benchmarking across portfolio

  Welltower focuses on reducing greenhouse gas emissions and energy consumption across its portfolio through targeted property improvement projects. The sustainability team is embedded within asset management, creating project scopes for energy-saving component replacements and upgrades aligned with normal replacement schedules. The company benchmarks its portfolio in ENERGY STAR Portfolio Manager and has been recognized as ENERGY STAR Partner of the Year for six consecutive years, maintaining Sustained Excellence status for four consecutive years. Review processes use actual meter readings and specialized equipment to estimate and track energy and water savings.

• Green building certifications and GRESB Green Star status

  Welltower pursues green building certifications across its portfolio as part of its sustainability strategy and maintains GRESB Green Star status (fourth consecutive year as of 2024). The company also maintained Prime status under ISS-ESG Corporate Rating for six consecutive years and achieved an MSCI ESG rating of AA. These certifications validate the company's sustainability approach and drive property-level improvements in energy and water efficiency.

• Climate risk analysis and physical resilience investment across properties

  Welltower performs portfolio-wide physical and transition risk analyses to identify opportunities to mitigate climate-related risks. The company acknowledges that changes in federal, state and local legislation relating to climate change could result in increased capital expenditures to improve energy efficiency and resiliency of existing properties. In 2024, the portfolio was impacted by Hurricanes Beryl, Debby, Helene and Milton as well as wildfires, highlighting the materiality of physical climate risk. The company monitors climate risk as part of enterprise risk management.

• Energy efficiency and green building across owned/managed portfolio

  Welltower's environmental strategy focuses on reducing greenhouse gas emissions, energy consumption, water usage, and waste production across its portfolio. The company benchmarks properties in ENERGY STAR Portfolio Manager, obtains green building certifications, and implements green technologies. Net proceeds from two green bond issuances ($500M in 2019 and $550M in 2022, totaling $1.05B) have been fully deployed into energy efficiency, water conservation, and green building projects as of September 30, 2023.

• Water conservation programs funded through green bond proceeds

  Water conservation is explicitly cited as one of three categories of eligible projects for Welltower's green bond framework. Both green bonds ($500M issued 2019 and $550M issued 2022) funded energy efficiency, water conservation, and green building projects. As of September 30, 2023, all $1.05 billion of proceeds have been fully utilized. Water usage reduction is also stated as a key environmental goal alongside GHG emissions and energy consumption reduction.

• Green building certifications and low-carbon new construction

  Welltower pursues LEED, BREEAM, IREM, WELL and Fitwel certifications for new developments and existing properties. As of end-2022, the portfolio includes 58 ENERGY STAR certified, 8 LEED certified, 1 WELL certified, and 19 IREM Certified Sustainable Properties. New development projects are guided by Sustainability Guidelines developed with Arup in 2022. Example projects include Wandsworth Common (UK, CHP + PV + motion-sensor lighting, 35% regulated CO2 savings) and The Apsley NYC (24% embodied carbon savings vs baseline). The Balfour at Brookline development targets LEED Gold.

• LED Retrofit Program across the portfolio

  Welltower has executed 391 LED retrofit projects to date with partner Greenleaf Energy Solutions, investing $1M+ in 2022 and $37M+ cumulative with a payback period of <5 years. The program is a core lever for reducing electricity demand in the MOB portfolio within the firm's control boundary.

• Water conservation: leak detection, soil sensors, low-flow fixtures

  Welltower deployed wireless underground soil sensors connected to irrigation systems at a pilot MOB near Atlanta, identified nine properties for leak-detection pilots, and continues low-flow fixture rollouts, cooling tower water management and drought-tolerant landscaping. Control-boundary water intensity is down 8.7% vs 2018 baseline.

• LED retrofit programme across medical office and seniors housing portfolio

  Welltower partners with Greenleaf Energy Solutions to implement LED lighting retrofits across the portfolio. As of 12/31/2022, 391 LED projects have been completed with >$37M invested, delivering savings of 432 tCO2e annually (9 properties in 2022) with an average ROI of <5 years. A further 3 properties commenced implementation in 2022 (342 tCO2e estimated annual saving). The programme directly reduces Scope 2 (location- and market-based) emissions and is one of the key levers listed for achieving both the intensity and SBTi absolute targets.

• Energy efficiency upgrades (HVAC, cool roofs, benchmarking) in direct operations

  Welltower applies energy and water efficiency assessments portfolio-wide and supports tenants to implement upgrades. Initiatives include HVAC/chiller replacements, cool roof retrofits to reduce heat transfer and HVAC run-times, benchmarking and monitoring of energy usage across 78% of properties in the control boundary, and municipal benchmarking compliance for 194 properties. The company achieved a 12.2% Scope 1+2 intensity reduction vs a 10% target by 2025, partly driven by these measures. A life cycle cost analysis (LCCA) with Arup evaluating 12 low-carbon technologies was completed in 2022 to guide future capital allocation.

• Green bond financing to fund low-carbon buildings and efficiency upgrades

  Welltower became the first U.S. healthcare REIT to issue a public green bond ($500M at 2.7%, December 2019) and issued a second green bond ($550M at 3.85%, March 2022). Proceeds fund eligible green projects including LEED/BREEAM/ENERGY STAR building certifications and energy/water efficiency upgrades achieving ≥25% efficiency gains (LED lighting, HVAC replacements, irrigation systems, low-flow fixtures). As of 9/30/2022, $572,090 had been allocated to eligible projects. The annual interest expense on both bonds is ~$34.7M.

• LED retrofits and energy efficiency in outpatient medical portfolio

  Welltower's LED Retrofit Program with Greenleaf Energy Solutions has completed 391 projects to date with $37M+ invested (>$1M in 2022) and <5-year payback. Energy intensity within control boundary fell 11.0% from 2018 baseline. Investments target HVAC optimisation, cool roofing and efficiency upgrades in outpatient medical facilities.

• Green bonds funding efficient buildings

  Welltower issued its second green bond ($550M) in 2022, bringing total to $1.05B. Per the 2022 Green Bond Allocation Report, $572M+ of net proceeds have been allocated to eligible green building projects (LEED Gold+, BREEAM Very Good+, ENERGY STAR), with $215M in unfunded commitments. Future eligible projects include energy/water efficiency upgrades expected to deliver ≥25% efficiency gains.

• Green building certifications and sustainable new development

  140 valid green building certifications (33 new in 2022) covering 8.5M sq ft: 58 ENERGY STAR, 8 LEED, 8 BREEAM, 1 WELL, 19 IREM, 45 EPC grade B+. New Sustainability Guidelines for New Development built on three pillars: Climate (low emissions, energy efficiency, certified building), Environment (responsible site selection, biodiversity, water reduction), Experience (health and wellness).

• E-waste diversion via CircleIT partnership

  Partnership with CircleIT (carbon-neutral logistics) repurposes laptops with remaining useful life, with data erased to DoD standards and devices donated or sold. Construction projects with >50% demolition area must include waste management plans diverting 75% of construction waste from landfill. Total diversion rate reached 19.3% in 2022 (10,025 tons recycled).

• Green building certifications and Sustainability Guidelines for new development

  Welltower had 140 valid green building certifications by end-2022 (+33 in 2022), including 58 ENERGY STAR, 8 LEED, 8 BREEAM, 1 WELL, 19 IREM and 45 EPC-rated buildings, covering 8.5M sq ft. New Sustainability Guidelines for New Development structure projects around Climate, Environment and Experience pillars to lock in lower operating energy and embodied carbon at design.

• Energy and GHG intensity reduction through ENERGY STAR benchmarking and efficiency projects

  Welltower utilizes ENERGY STAR Portfolio Manager to benchmark 741 properties (40% of portfolio) for GHG, energy, water and waste performance. The company targets a 10% reduction in Scope 1 and 2 GHG emissions intensity by 2025 over a 2018 baseline and had achieved 5.9% reduction as of 2021. Welltower's Sustainability Management System is aligned with ISO 14001 and 50001 and uses a Plan-Do-Check-Act approach for continuous improvement. 382 total efficiency projects have been implemented to date.

• LED Retrofit Program across outpatient medical and seniors housing portfolio

  Welltower has an ongoing LED Retrofit Program conducted in partnership with Greenleaf Energy Solutions. As of 2021, 382 LED retrofit projects have been completed with a total investment of $36M, generating $7.4M in operational cost savings with a return on investment under 5 years. 15 new projects were completed in 2021. This is the primary operational energy reduction lever for the directly managed outpatient medical portfolio.

• Sustainable building development targeting green certifications

  Welltower pursues development opportunities in large metro areas to leverage existing infrastructure and minimise biodiversity impact. All new developments incorporate energy and water efficient equipment (high-efficiency lighting, low-flow fixtures) and low-emitting materials for indoor air quality. As of 2021, the portfolio holds 94 valid green building certifications including 44 ENERGY STAR, 7 LEED, 1 WELL, 5 BREEAM and 21 IREM Certified Sustainable Properties. Approximately $728 million in new development projects were anticipated to be funded in 2022.

• Water efficiency upgrades targeting 10% intensity reduction by 2025

  Welltower targets a 10% water usage intensity reduction by 2025 over a 2018 baseline; as of 2021 the control boundary showed 9.5% reduction. Mitigation strategies include low-flow and high-efficiency fixtures, leak detection technology, drip irrigation systems, drought-tolerant landscaping, and active monitoring of domestic water usage trends. Total water withdrawal with data coverage was 7,687 thousand cubic metres in 2021.

• Water efficiency programme — leak detection, low-flow fixtures, benchmarking

  Welltower manages water use across its portfolio through benchmarking, high-efficiency fixtures, low-flow plumbing, drought-tolerant landscaping, drip irrigation, and leak detection technology. The control boundary water intensity fell 12.1% vs the 2018 baseline in 2020, exceeding the halfway point to the 2025 target of 10% reduction. Water performance covers 49% of portfolio floor area by sq ft.

• Energy efficiency upgrades — LED retrofit program across portfolio

  Welltower's most significant efficiency programme is its LED retrofit initiative, with 367 projects completed to date totalling over $35M in investment and generating an estimated $7.2M in operational cost savings with a return on investment under five years. The company uses ENERGY STAR Portfolio Manager to benchmark outpatient medical properties and tracks performance against a 10% energy reduction target by 2025 vs 2018 baseline. Total portfolio energy intensity was 84.32 kBtu/sqft in 2020; control boundary energy intensity fell 3.5% vs 2018 baseline.

• GHG emissions reduction target tracking with Scope 1, 2 and 3 reporting

  Welltower tracks Scope 1, 2, and Scope 3 GHG emissions across its entire portfolio (1,698 buildings, 129M sqft), estimating usage where direct collection is not feasible. Scope 1&2 intensity fell 4.9% against the 2018 baseline to 6.08 MTCO2e/1,000 sqft in 2020. The 2025 target requires a 10% reduction in GHG emissions over the 2018 baseline; Welltower is approximately halfway to the target.

• Green Bond financing for certified buildings and energy/water efficiency upgrades

  Welltower was the first US health care REIT to complete a public green bond offering, with $104.5M in proceeds allocated to eligible projects including financing of properties targeting high-level green building certification and energy/water efficiency upgrades designed to achieve 25%+ efficiency gains (LED lighting, HVAC/chiller replacements, irrigation systems, low-flow fixtures). Projects are selected by the Green Bond Committee in compliance with the third-party reviewed Green Bond Framework.

• Tenant energy management through operator engagement and RIDEA structures

  As a REIT operating predominantly through RIDEA structures, Welltower works with 53 operating partners across its Seniors Housing Operating segment to drive energy and sustainability improvements within properties. The company's sustainability steering committee and cross-functional governance model oversees sustainability initiatives across the portfolio. Welltower works with stakeholders including employees, vendors, operators, residents and tenants to meet environmental objectives and encourage evolving practices of environmental sustainability.

• Portfolio-wide physical and transition climate risk analysis

  Welltower performs portfolio-wide physical and transition risk analysis to identify opportunities to help mitigate climate risks across its seniors housing and outpatient medical portfolio. The company recognizes that changes in federal, state and local legislation relating to climate change could result in increased capital expenditures to improve energy efficiency and resiliency of existing properties, and acknowledges the risk of increased costs on new development properties without a corresponding increase in revenue.

• Operator engagement and contract alignment to improve sustainability performance

  Welltower has modernized nearly all operator contracts under RIDEA 3.0/4.0 structures that align operators on bottom-line performance metrics and data sharing, which supports sustainability improvements through operators. The company's data science platform monitors property performance and transitions underperforming operators - indirectly enabling energy and operational efficiency improvements across the Seniors Housing Operating segment (72% of total revenues in 2023).

• Tenant/operator engagement via Performance Playbook & green leases

  Because the bulk of emissions sit in tenant-operated seniors-housing space (downstream leased assets — Scope 3 Cat 13 = ~190k tCO2e electricity alone in 2022), Welltower drives reductions via the Seniors Housing 'Performance Playbook' (launched 2019), green leases (95% of new MOB leases include cost-recovery clauses for efficiency capex covering 3M sq ft), tenant newsletters, and ENERGY STAR Portfolio Manager benchmarking across 1,400+ properties (75% portfolio coverage, 83 operators).

• Water efficiency in operated and leased portfolio

  Water intensity reduced 8.7% within control boundary from 2018 baseline. Pilots include wireless underground soil sensors at an Atlanta-area MOB for smart irrigation, and leak-detection systems deployed at nine properties. Standard practices include low-flow fixtures, drought-tolerant landscaping, and cooling-tower water management upgrades.

• Tenant/operator energy efficiency via Performance Playbook & green leases

  Welltower's largest emissions footprint sits with tenants and seniors-housing operators (downstream leased assets — Scope 3 cat 13 = 260,257 tCO2e in 2022). The firm engages through the Seniors Housing 'Performance Playbook,' green leases in 95% of new MOB leases, ENERGY STAR Portfolio Manager benchmarking across 1,400+ properties (75% coverage), and one-on-one operator support to drive energy, water and waste reductions.

• Green bond financing for efficiency upgrades

  In 2022 Welltower issued a $550M green bond (second offering; $1.05B cumulative). Per the 2022 Allocation Report, $572M+ of net proceeds has been allocated to eligible green building projects (LEED Gold+, BREEAM Very Good+, ENERGY STAR) and an additional $215M is committed; future projects must demonstrate ≥25% energy or water efficiency gains.

• Tenant energy management via downstream leased assets (Cat 13) engagement

  Welltower's largest Scope 3 category is downstream leased assets (260,256 tCO2e in 2022), comprising seniors housing operating properties managed by third-party operators under RIDEA contracts. Welltower cannot directly control these operations but engages operators through the annual 'Performance Playbook' covering energy, water, and waste efficiency best practices, Green Lease Leaders-aligned requirements for MOB tenant improvements, and annual utility data collection covering 82% of estimated Cat 13 emissions. Welltower also uses average intensity factors for the remaining 18%.

• Downstream leased asset decarbonisation via green leases and Performance Playbook

  Welltower's largest Scope 3 category is downstream leased assets (Category 13), totalling approximately 311,219 tCO2e in 2021 (market-based). The company uses standard green leases across its outpatient medical portfolio (Gold-level Green Lease Leader since 2020) requiring data sharing and ENERGY STAR benchmarking. The Seniors Housing Efficiency Playbook, launched in 2019, guides operators on energy, water and waste reduction. Tenant Improvement Guidelines encourage ENERGY STAR labelled products. Green Bond proceeds fund energy and water efficiency upgrades with 25%+ efficiency gain targets.

• Tenant and operator engagement via green leases and Performance Playbook

  Welltower engages senior housing operators and medical office tenants through its Performance Playbook (a guide for efficiency and excellence) and a standard green lease requiring data sharing and ENERGY STAR benchmarking. By 2020, 580 green leases had been executed covering 1.66M sqft of medical office space. The Welltower Advisory Services programme extends sustainable vendor partnerships to operating partners at preferred pricing, driving sustainability outcomes beyond direct operational control (Scope 3 boundary).