Sustainability at Realty Income

Our Commitment

Realty Income is committed to conducting our business according to the highest ethical standards. We are dedicated to providing an engaging, diverse, and safe work environment for our employees, operating our business in an environmentally conscious manner and upholding our corporate responsibilities as a public company for the benefit of our stakeholders - our shareholders, clients, colleagues, and community.

Governing Sustainability

We believe that our commitment to corporate responsibility, which encompasses Environmental, Social and Governance (“ESG”) principles, is critical to our performance and long-term success, because we have a shared responsibility to our community and the planet. The Nominating/Corporate Governance Committee of our Board of Directors has direct oversight of ESG matters.

In 2019, we approved resources needed to advance our ESG agenda, including creating a Sustainability Department and creating a new dedicated Associate Vice President of Sustainability position. We envision advancements in the coming years as we develop a strategy, by and on behalf of our internal and external stakeholders, while engaging all levels of our organization in the process.

Materiality

In 2020, we conducted a materiality assessment to identify and prioritize topics to create our sustainability strategy and reporting. The process, which applied the GRI Reporting Principles, was facilitated by a sustainability consulting firm with support from an internal cross-functional group and our enterprise risk management process. Within, we had also looked at the United Nations Sustainable Development Goals (UN SDGs), the GRI Standards, the SASB Standards and leading environmental, social and governance (ESG) frameworks. The prioritization of the material topics brings focus on areas with impacts to be closely managed to improve performance, mitigate potential risks, and pursue opportunities, which will support long-term value creation for Realty Income, our stakeholders and society. Our material topics are listed below:

Realty Income Materiality Assessment

Task Force on Climate-related Financial Disclosure (TCFD)

Throughout the year, as part of the Enterprise Risk Management (ERM) program, management and the Board of Directors jointly discuss major risks that face our business. The company’s risk management approach as it relates to climate-related risks is integrated in the ERM program. In 2020, we embarked on a journey to more closely align our risk identification process to TCFD recommendations. Internal working documents are prepared to proactively track certain risks associated with potential casualty events such as hurricanes, tornadoes, floods, and other severe weather events, while also considering ways in which to explore opportunities for change. We identify, analyze and manage potential environmental and social risks during its acquisition due diligence process and throughout the term of its leases with a focus on increasing the return on investment.

If you’re interested in learning more about our overall sustainability efforts, please contact Chris Laz, AVP, Sustainability