Real Estate Companies Saving the Planet
Real estate has a tremendous opportunity to go a long way in saving the planet. Given ongoing concerns about the impact businesses are having on climate change, there are several real estate companies out there who are doing their part to save the planet. Reducing reliance on fossil fuels, using and / or delivering renewable energy, and applying sustainable and environmentally friendly building features are just some of the ways these businesses are having a sustainable and positive impact on the environment. Below are some of the best real estate investment trusts (REITs) that are doing their part in saving the planet.
While there are several notable REITs making great strides in saving the planet, Equinix (NASDAQ: EQIX) and Prologis are two REITs that are consistently top publicly traded companies when it comes to environmental, social, and governance (ESG) investments Company owned (NYSE: PLD).
Equinix is a REIT focused on developing and operating data centers around the world using some of the best energy efficiency standards. In 2019, the company obtained 92% of all energy from renewable sources and had zero net carbon emissions for the year. By using some of the latest low-carbon technologies such as smart chillers, indirect evaporative cooling devices (IDECs) and green roofs, the company can produce electricity, heat, cool and light its facilities in the most efficient and environmentally friendly way, among other things. Equinix is definitely taking the lead when it comes to ESG efforts among REITs, ranking 5th on the US Environmental Protection Agency’s (EPA) Green Power Partnership’s national top 100 list.
Prologis is a leading industrial REIT specializing in the development and management of warehouse and distribution centers around the world. Over the past decade, Prologis has made great strides in saving the planet. In 2019, Prologis produced 212 MW of solar power from the roofs of its facilities, 88% of all facilities that run on efficient LED lighting, and 169 million square meters have received sustainable certifications such as LEED certification.
While these are two of the industry leaders for ESG, many other REITs are doing their part to make social and environmental improvements, for example by employing green leasing that keeps tenants to a standard for environmental impact. Boston Properties (NYSE: BXP), which develops, owns and rents Class A office buildings, was ranked in the top 4% of all real estate companies in the 2019 Global Real Estate Sustainability Benchmark Assessment and was also Energy Stars Partner of the Year in 2020.
Fortunately, the continued attention and focus on the impact we all have on climate change is pushing some of the largest investors and property owners to adapt their business models to improve environmental and social policies. While no company can save the planet on its own, it paves the way for others to do the same when they see great leaders with big footprints making a big impact. The more companies take part in this project, the greater the positive effects.