Sustainability is increasingly being integrated into core business strategy, with REITs using data to guide investment decisions, manage risk, and create long-term value across their portfolios, panelists said during Nareit's July 21 webinar, “Sustainability & Strategy: What REITs Are Doing in 2026.” The discussion coincided with the release of Nareit's REIT Industry Sustainability Report 2026, which analyzes sustainability reporting and practices among the industry's largest REITs.
Moderated by Jessica Long, Nareit SVP, environmental stewardship and sustainability, the webinar featured: Michael Chang, head of sustainability and resilience at Host Hotels & Resorts; Suzanne Fallender, SVP of global impact and sustainability at Prologis; Gretchen Keller, senior director of energy and sustainability at Tanger; and Dana Schneider, SVP and director of energy and sustainability at Empire State Realty Trust.
Long noted that sustainability reporting has become standard practice across the industry, with 96% of equity REITs in the FTSE Nareit All Equity REITs Index now publishing standalone sustainability reports. This year's report by Nareit also introduces sector-level analysis, highlighting how sustainability priorities differ across property types while supporting a common goal of creating value and managing risk.
A recurring theme throughout the discussion was that investors increasingly want to understand not only sustainability goals, but how companies plan to achieve them.
Fallender said conversations with investors frequently center on Prologis' net-zero commitment and the data supporting its strategy. She explained that the company focuses on measurement, energy efficiency, electrification, and renewable energy while ensuring high-quality data can inform decisions at both the portfolio and asset levels.
"You don't want it to sit on a shelf," Fallender said of sustainability data. "You need to make sure it's really pulling into the existing processes and planning that you're going to do."
Schneider said accurate, verified data is essential for demonstrating project performance, supporting capital allocation decisions, and communicating results to investors and boards. She noted that energy, water, maintenance, compliance, and cost data all contribute to understanding an asset's value and risk profile.
"The data is extremely important, not just for sustainability reporting," Schneider said. "It all ties back to ROI."
Keller emphasized that sustainability data becomes most valuable when it is shared across organizations rather than remaining within sustainability teams. She said even a utility audit can expand into conversations involving operations, leasing, tenant engagement, and long-term planning.
"Those decisions become stronger if you're looking at a data point through multiple perspectives across teams," Keller said.
Chang said board discussions of sustainability issues at Host Hotels & Resorts have helped shape company priorities, including focusing on the risks associated with water scarcity and cost increases, which led to the REIT pairing AI-enabled building systems with water monitoring technology to improve efficiency and detect leaks earlier.
"That's where that board input is really critical," Chang said. "They're gaining insight from other boards that they sit on from what other companies are doing to help us focus on our needs."
Panelists agreed that boards increasingly expect sustainability initiatives to be tied to measurable business outcomes and financial performance. As Long noted during the discussion, "Translating sustainability metrics to financial metrics is the theme of the year—maybe the decade."
Other topics covered included:
- How industrial REITs are working with tenants through green leases, renewable energy, and shared sustainability goals.
- Why investors are asking more questions about decarbonization, data quality, and community investment.
- Cross-functional collaboration among sustainability, finance, IT, accounting, leasing, and operations teams.
- How REITs are integrating sustainability into governance, enterprise risk management, and capital allocation decisions.
- Metrics used to support identifying risk and vulnerability and allocating capital for resilience related investment decisions.
- How sustainability priorities differ across property sectors while supporting the common goals of preserving value, mitigating risk, and improving long-term performance.
Watch the complete replay of the webinar on REIT.com.