Welltower

Welltower is not on track to meet its absolute emissions reduction target for 2030. The company is also not on track to meet its emissions intensity target for 2025. While Welltower reports its scope 3 emissions, it has not yet set a target that covers its scope 1, 2 and 3 emissions. The company should develop long-term and regularly spaced intermediate emissions reduction targets that align with its 1.5°C pathway. Setting intermediate targets at gaps of no more than five years will help the company incentivise near-term actions towards longer-term goals.

There is no evidence that Welltower has a low-carbon transition plan. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include medium- and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. Furthermore, the plan should be informed by scenario analysis, which considers a range of physical and transitional scenarios. Welltower discusses financial information regarding its use of green bonds; however, it does not present any other financial information or plans on how it will meet its targets or transition to a low-carbon future.

Welltower’s only low-carbon business model is limited to its LED retrofit programme. Although the company has invested USD 36 million in this programme, completing 382 LED retrofit projects, the company does not report what proportion of its properties this equates to or the planned coverage of the programme. The company can improve its performance by outlining the parameters of this low-carbon business model. Along with this, the company can develop new business models that aim to reduce energy consumption, generate renewable energy and deliver tangible emissions reductions.

Welltower has set a target to reduce its scope 1 and 2 emissions intensity by 10% by 2025 compared to 2018, and a target to reduce its scope 1 and 2 emissions by 28% by 2030 compared to 2019. The company has not set any targets for scope 3 emissions, which account for about 41% of its total emissions.

Welltower does not yet have a low-carbon transition plan, but it intends on developing one in the next two years.

The company is conducting a LED retrofit programme. In 2021, Welltower utilised USD 278 million of proceeds from the issuance of green bonds and it issued its second green bond in 2022.

Welltower is making progress towards its emissions reduction targets but is not on track to meet them. Welltower’s emissions intensity trend has decreased by about 3% annually, but this is not aligned with its decarbonisation pathway. The company has invested USD 36 million in its LED retrofit programme.

Welltower acknowledges climate change as an issue but lacks a transition plan and has not set a phase-out date for domestic gas or fossil fuels in their entirety. However, the company appears to be taking steps, such as aligning with the Task Force on Climate-Related Financial Disclosures (TCFD).

No evidence was found of Welltower’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by Welltower was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the low-carbon transition. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if Welltower identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

Welltower commits to respecting human rights; however, there is no evidence of its support of the ILO fundamental rights at work. No evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and in its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders to report human rights concerns.

There is evidence that the company has a way for employees to address their concerns with the organisation through an internet-based hotline, and there is evidence that this is also accessible to all external individuals who may be impacted by the company. The company can, however, significantly strengthen its disclosure on its human rights due diligence process and engagement with affected stakeholders.

Welltower commits to respecting worker health and safety and expects the same commitment of its business relationships. However, no evidence was found of the company having a time-bound target for paying all its workers a living wage. Further, while the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including the proportion of its total direct operations workforce by age group. However, no relevant disclosure was found of additional indicators of workforce diversity. Nevertheless, the company commits to promoting gender equality and women’s empowerment and has been a signatory of the Women’s Empowerment Principles since 2018. Overall, the company can strengthen its disclosure on all decent work topics, particularly on its living wage and working hours practices.

Welltower commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax it pays in individual jurisdictions. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. The company indicates that bribery and corruption related concerns can be raised through reporting channels without fear of reprisals.  Furthermore, the company has a lobbying and political engagement policy, and it specifies that it does not make political contributions. However, no relevant disclosure was found of the company’s expenditure on lobbying activities.