Spotlight on Our Portfolio

Activities at Our Headquarters

Our focus on environmental responsibility is demonstrated by how we manage our day-to-day activities at our corporate headquarters. Our headquarters was retrofitted according to the State of California energy efficiency standards (specifically following California Green Building Standards Code and Title 24 of the California Code of Regulations). We promote energy efficiency with features such as an automatic lighting control system with light-harvesting technology, a building management system that monitors and controls energy use, an energy efficient PVC roof and heating and cooling system, LED lighting, and also by encouraging practices such as powering down office equipment at the end of the day, implementing file-sharing, adopting an electronic approval system, and encouraging a paperless environment.

Water conservation practices are important to the San Diego, California region. We partner with a leader in wireless, real-time irrigation for precise water management. This increase in water efficiency coupled with drought-tolerant landscaping helps us minimize water usage at our corporate headquarters. With the goal of lowering the carbon footprint of our employees’ day-to-day operations, we partner with two meal delivery services, provide on-site dry-cleaning services, and encourage carpooling to our headquarters.

We implement waste diversion strategies focusing on recycling paper waste, batteries, and light bulbs, adoption of compostable break room products, reduction of single-use petroleum products, and recycling education. The company also recycles or donates cell phones, wireless devices, and office equipment whenever possible. In 2019, we sent more than 25,714 pounds of paper to our off-site partner for recycling.

Activities Within Our Portfolio

Many of our tenants demonstrate focus on positive environmental and social impacts through their comprehensive Corporate Responsibility programs. We support their operations and work with them to promote environmental responsibility at the properties we own and to reiterate the importance of energy efficient facilities.

We continue to engage with some of our top 20 tenants to better understand the strategic ESG decisions being made regarding the operations of our properties. This ongoing dialogue confirms the long-term goal we share with our tenants to reduce the negative environmental effects of our portfolio.

Our Asset Management and Real Estate Operations and Sustainability teams engage with renewable energy development companies to identify assets that would maximize energy efficiency initiatives throughout our property portfolio. These initiatives include solar energy arrays, battery storage, and charging stations. In addition, we continue to explore regional opportunities with our tenants in order to qualify for city and county renewable energy or energy efficiency programs.

In addition, Realty Income is a member of the National Association of Real Estate Investment Trusts (Nareit) Real Estate Sustainability Council. Our participation in this council allows us to share information and learn about the best practices of other REITs to further advance our efforts in this area.

Tenant Feature

Sainsbury’s, the U.K.’s second-largest supermarket company, has committed to achieving net-zero greenhouse gas emissions by 2040, a decade ahead of the U.K. government’s own target. The company, which operates around 2,300 stores, said it would invest £1.0 billion ($1.31 billion) over 20 years to reach its goal. With a focus on reducing carbon emissions, food waste, plastic packaging and water usage and also increasing recycling, biodiversity and healthy and sustainable eating, business goals will be aligned to limiting global warming to 1.5°C, in line with the highest ambition of the Paris Agreement. By working with the Carbon Trust to assess emissions and set science-based targets for reduction, and publicly reporting on progress every six months, Sainsbury’s intends to transform the way it does business and put environmental impact at the forefront of every decision it makes.