This is a case study that's a part of the 2021 REIT Industry ESG Report, an annual report detailing the REIT industry's environmental, social, and governance (ESG) performance details in the publicly traded U.S. REIT industry. Featured case studies showcase REIT leadership and ESG innovation from a variety of sectors and serve as a practical tool for stakeholders to assess the scale and impact of the REIT industry's ESG commitments and initiatives.
Engaging in partnerships to expand renewable energy capacity is one of Healthcare Realty Trust's (Healthcare Realty) top sustainability initiatives—as utilities are one of its two largest operating expenses. The company anticipates renewables will continue to become a more prominent source of energy in the future and a desirable property feature for investors and tenants.
Over the past year, Healthcare Realty partnered with Black Bear Energy to identify opportunities to incorporate renewable energy into its portfolio—focusing on solar, given the spaces available across its hospital-centric medical office properties.
Leveraging Healthcare Realty's valued relationships with its hospital system partners, this initiative is expected to result in the implementation of multiple rooftop and carport solar projects in properties located in California (six in 2021).
The energy to be generated through these projects will have a total capacity of 3.4 Megawatts, to be used both onsite and offsite, and produce enough electricity in one year to power a 300,000 square foot medical office campus.
"Our approach to sustainability is focused on creating value over time. Our emphasis on renewable energy is strategic both from the perspective of minimizing our environmental impact, and in making economic sense for our company and shareholders."
Carla Baca, Associate Vice President of Investor Relations and Corporate Responsibility
Further, the carport projects improve stakeholder experiences by providing covered parking—a valued amenity for patients and physicians alike—while also reducing utility usage and related energy costs for tenants. Through regular satisfaction surveys, tenants have expressed their interest in sustainability, and thus their appreciation for the organization's focus on renewable energy and environmental impact.
These initiatives are additive in helping Healthcare Realty achieve its goal to reduce baseline energy consumption and greenhouse gas emissions by 10% by 2026.
Healthcare Realty is a publicly traded REIT that focuses on owning, managing, acquiring, and developing outpatient medical facilities throughout the United States.