San Clemente, CA-based CareTrust REIT’s second annual environmental, social and governance report shows “progress in sustainable development through investments at our facilities,” President and CEO Dave Sedgwick said Tuesday in a statement.
The real estate investment trust’s ESG initiatives are aligned with Global Reporting Initiative standards, the company said. CareTrust’s EGG initiatives are still young, and the REIT is establishing baselines upon which it will measure future progress, according to Sedgwick.
The report shows the company executed on its stated plans from the inaugural report, including:
- New contributions to incentivize improvements in efficiency, quality of work and care environments for tenants’ employees, residents and patients.
- Expanded data analysis and tracking of energy use at more properties.
- Changes to CEO compensation tied to ESG achievements.
- Progress in board diversity.
- New disclosures about the composition of company employees.
CareTrust’s ESG program for tenants is unique, according to Sedgwick. The company said the ESG Program is “unique, innovative, and optimized to reduce risk while maximizing improvements for its tenant-operators who embrace the program’s principles and objectives.” The trust relies exclusively on triple-net master leases and capital expenditures funded for properties which make the initiatives possible.
“While we manage against unique constraints given the triple-net lease agreements with tenants, we strive to collaborate with our operators on their capital improvement decisions. We remain committed to finding innovative ways to promote, educate and incentivize our operators to make the most sustainable choices for the facilities as they upgrade, remodel, or redevelop,” Sedgwick said.
