OUR COMMITMENT TO THE ENVIRONMENT
We are committed to sustainability and reducing our environmental footprint.
With fewer than 100 employees managing a portfolio of properties where the day to day operations are managed by tenants, our environmental footprint is smaller than REITs that operate their properties, but sustainability is still embedded in our culture. Spirit recognizes that the ownership of commercial real estate can have a significant impact on the environment. As a result, Spirit is committed to implementing environmentally sustainable practices at our headquarters and considering environmental factors and risks in our investment decisions.
Activities at our Headquarters
Our commitment to sustainability and reducing our environmental footprint is largely demonstrated by how we manage our day-to-day activities in our corporate headquarters, including:
- Active recycling of materials such as aluminum, paper, and plastic, and use of recycled paper where possible
- Use of an automatic lighting control system
- Encouraging employees to power down equipment at the end of the day
- Use of ENERGY STAR certified computers, monitors, copiers, conference room displays, and printers
- Encouraging a paperless environment and defaulted printers to double-sided printing
- Use of “green” cleaning products
- Use of low VOC paint
- Water conservation by use of water machines to encourage employees to use reusable water bottles
- Elimination of disposable cups
Think Green Committee
“Think Green” is an employee group focused on making environmentally smart choices for Spirit in order to reduce our environmental footprint. The Think Green Committee is tasked with researching and implementing various methods of reducing our environmental impact as a company and choosing at least one environmentally-focused community service project or nonprofit organization to donate to each year. The Think Green Committee is overseen by management, who in turn regularly reports to the Board of Directors on the status of our environmental progress.
In 2021, Spirit partnered with Groundwork Dallas on North Texas Giving Day to remove trash and debris from the Frasier Dam Recreational Area and Trinity River. Keeping the river, basins, and urban forests clean is essential for maintaining the quality of air and water in the Dallas metroplex.
As part of Spirit's 2021 Giving Day, we presented Groundwork with a check for $20,000 which will help create a healthier environment for the wildlife and people in our city.
Activities Within Our Portfolio
Our commitment to sustainability begins before we acquire a property. In evaluating new investments, we obtain an environmental site assessment of the property (Phase I) as part of our analysis to understand the environmental condition of the property, including whether there is indication of any release of hazardous substances, chemical or waste storage, or other environmental concerns or risks, and to determine whether the property and the operations thereon meet certain environmental standards.
Addressing Environmental Conditions at our Properties
As a net-lease real estate investment trust, we invest in single-tenant real estate with net-leases. Under this business structure, each tenant is generally responsible for maintaining the buildings, including controlling their energy usage and the implementation of environmentally sustainable practices at each location. Spirit manages and mitigates the environmental risk that may be associated with our net-lease properties by:
- Including green lease clauses in our form lease agreement which allow Spirit to recover the capital costs of energy efficient improvements, require the tenant to comply with applicable environmental laws, remediate or take other corrective action if environmental issues arise and request that tenants provide energy and water consumption data on a periodic basis
- Maintaining comprehensive pollution insurance coverage for all of our properties, thus ensuring that should an unforeseen environmental issue occur, there are financial resources available to ensure safe and timely remediation
- Preparing for a natural disaster by carrying All-Risk property and rental value insurance to include fire, wind/hail, earthquake, flood and other extended coverage for our properties that we believe are appropriate and adequate given the relative risk of loss, insurance provided by our tenants and the industry best practices
- If applicable, requiring the seller to remediate the environmental issues in compliance with applicable laws prior to acquiring the property
- Appropriately underwriting the financial health and responsibility record of our tenants that are engaged in potentially environmentally sensitive operations