AvalonBay Communities has committed to setting science-based emissions reduction targets to be approved by the Science-Based Targets initiative (SBTi). AvalonBay joins the growing group of leading companies that are setting emissions reduction targets in line with what climate science says is necessary.
Science-based targets provide companies with a clearly defined path that specifies how much and how quickly they need to reduce their greenhouse gas emissions.
“As the cities and markets in which we do business move toward a low-carbon future, AvalonBay has plans to lead the way and contribute positively to this future,” AvalonBay Chairman and CEO Tim Naughton says in a recent press release.
“We know that fulfilling our purpose of creating a better way to live requires us to continue to set ambitious and innovative goals aligned with climate science, and, as a result, AvalonBay is committed to setting science-based targets.”
AvalonBay was recently confirmed, for the first time, as a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the ESG ESG performance of companies. “This recognition, and the company’s commitment to science-based targets, demonstrate the strong position that AvalonBay is taking on environmental sustainability and a low-carbon future,” AvalonBay’s Vice President of Corporate Responsibility Mark Delisi says.
AVB owns or holds a direct or indirect ownership interest in 291 apartment communities containing 85,158 apartment homes in 13 states, of which 21 communities were under development and nine communities were under redevelopment.
Delisi says AVB conducted a risk assessment of its entire portfolio in 2017-18 focused on climate-related risks (sea-level rise; stronger, more frequent storms; flooding; fires; earthquakes; liquefaction). It was presented to its Board of Directors, Nominating Committee and Corporate Governance Committee in fall, and the plan is being integrating into its due diligence performed during asset acquisitions.
Deep-dive assessments cost approximately $10,000 per property.
“Climate-risk assessment is one piece of data that determines the viability of a given investment or divestment,” Delisi says. “I don’t see us making decisions based solely on that piece of data. However, in certain regions, markets and submarkets, it could be weighted more heavily in coming years.
“East Coast markets are at most risk for sea level rise and flooding associated with king tides and stronger, more frequent storms and hurricanes. The West Coast has some exposure, but is more affected by earthquakes and longer, more intense fire seasons and drought.”
Delisi says owners can help to mitigate such risks by investing in properties to make them more resilient and by building resiliency into them.”