Federal Realty Investment Trust: Best ESG Real Estate Investment Strategy US 2023

Federal Realty Investment Trust views ESG as a framework for long-term growth and value creation. Its key objectives involve advancing decarbonisation, strengthening resiliency, connecting communities, empowering teams and governing responsibly.

The company earned its first LEED certification in 2012 and within a decade had invested around $2.3bn in LEED-certified buildings. It has reduced Scope 1 and 2 greenhouse gas emissions by approximately 22 percent between 2019 and 2021 and is committed to achieving net-zero emissions by 2050. In 2021, 60 percent of the electricity used by Federal came from renewable sources. The company installed its first rooftop solar system in 2012; now they crown nearly a quarter of Federal properties. Over 300 EV charging stations support the transition to a low-carbon economy. Federal invests in underrepresented communities in ways that advance social equity. It protects biodiversity through urban revitalisation rather than greenfield development and keeps beehives on multiple properties. One of Federal’s flagship projects — Assembly Row in Somerville, Massachusetts — demonstrates how ESG planning makes good business sense and benefits all stakeholders. The transformation project turned a polluted former industrial site into a thriving social centre and economic growth engine, delivering positive impacts for government coffers, city residents and Federal shareholders. The S&P 500 REIT has delivered 55 consecutive years of increased dividends, while honouring a sustainability commitment that demands financial investments serve a greater societal good.

The CFI.co jury presents repeat winner Federal Realty Investment Trust with the 2023 Best ESG Real Estate Investment Strategy (US) award.