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.
Regency Centers Corporation (Regency) seeks to constantly improve its Corporate Responsibility program and environmental impact by advancing sustainable operations and resource use initiatives, as well as by reinforcing climate resilience at its properties.
To build off past risk analyses, further its environmental sustainability efforts, and proactively meet the needs of the communities it serves, Regency conducted a climate-related scenario risk and opportunity analysis over the course of 2020—aligned with recommendations from the Financial Stability Board's (FSB) Task Force on Climate-related Financial Disclosures (TCFD).
This scenario analysis and risk management initiative was both a top-down and bottom-up approach to advancing Regency's climate change risk management practices—supported by senior leaders, championed by the Corporate Responsibility Committee, co-created across the organization, and integrated into corporate governance.
Expanding on this company-wide commitment to and engagement in risk management, Kirrin Winning, Director of Corporate Responsibility, shared, "Risk management is embedded in all that we do. Our leadership encouraged all streams of business to be involved in this work, which inspired organization-wide discussion on how we could, collectively, better understand future climate risks and opportunities."
"Being mindful of the future for our people and our communities is not just the right thing to do, but a strategy that is ingrained in every element of our business. By ensuring we analyze and address future risks to our portfolio, Regency Centers is ensuring a resilient path forward."
Lisa Palmer, President and CEO
Regency looked at its entire portfolio and business over two medium- to long-term scenarios (2030-2100), recognizing that mitigating future risks (transitional and physical) from its portfolios in climate zones like California for wildfires and Florida for sea level rises may require significant behavior change, and also need to inform future investments and divestments.
Regency incorporated the results of the climate-related risk and opportunities assessment into its strategic planning to ensure climate resilience continues to play a central role in the organization's proactive strategic and property-level planning.
This thoughtful approach to environmental impact will help support the organization's environmental stewardship targets, designed to lower Regency's impact on the planet and climate by reducing Scope 1 and 2 greenhouse gas emissions by 5% each year from 2018 to 2028.
Regency's dedication to environmental sustainability is further demonstrated through the organization's status as the first U.S. REIT and second U.S. Corporation to issue a Green Bond.
Regency Centers is the preeminent national owner, operator, and developer of shopping centers located in affluent and densely populated trade areas.