Corporate Sustainability

Corporate Sustainability

DEI Policy

We believe that integrating environmental, social and governance, or ESG, initiatives into our strategic business objectives will contribute to our long-term success. We have established a management ESG committee comprised of our Chief Financial Officer, Vice President, Finance and Investor Relations and Vice President, HR/Benefits and Compliance. This committee is tasked with overseeing our strategies regarding the Company’s social impact and environmental sustainability. Our ESG Committee was established with the goal of increasing our accountability, sharpening our focus, and maximizing our efforts with respect to the environmental, social and governance impact on our clients, employees and properties. In addition, the ESG Committee will help to measure our progress on our ESG initiatives and priorities, adding an element of accountability, which should also increase our effectiveness. The ESG Committee will meet at least quarterly with the chairperson of the Nominating and Corporate Governance Committee of the Board. Through our sustainability efforts, we seek to incentivize positive change and create value for our stakeholders. Below are some more details of our corporate sustainability efforts

ENVIRONMENTAL

  • We provide our triple net lease operators capital improvement allowances for the redevelopment, expansions and renovations at our properties which may include energy efficient improvements like LED lighting and low emission carpeting, recycled materials and solar power;
  • We provide our development partners with capital to build new state-of-the-art properties with energy efficient components and design features;
  • We obtain Phase I environmental and Phase 2 reports if warranted as part of our due diligence procedures when acquiring properties and attempt to avoid buying real estate with known environmental contamination;
  • Our document retention practices strive to reduce paper usage and encourage electronic file sharing;
  • We strive for efficiency and sustainability in our corporate headquarters, participate in a recycling program, and encourage our employees to reduce, reuse and recycle waste;
  • We purchase carbon offsets to balance against the emissions that we produce in our low rise, stand alone corporate headquarters;

SOCIAL

  • We employ individuals who possess a broad range of experiences, background and skills, and we believe that to continue to deliver long-term value to our shareholders, we must provide and maintain a work environment that attracts, develops, and retains top talent and affords our employees an engaging work experience that allows for career development and opportunities. Along with a competitive compensation program including incentive bonuses and a stock option plan, NHI provides a 401(k) plan with a safe harbor contribution, paid employee health insurance coverage and tuition reimbursement;
  • We actively support charitable organizations within our community that promote health education and social well-being. During 2023, we donated approximately $45,000 to external charitable organizations that provide support services to the communities that sustain our residents, operating partners and employees, such as the ALZ foundation, our employee match program and other fundraising efforts which leverage our professional relationships with banks, law firms, and other key vendors;
  • We support efforts to cure diseases that afflict our residents and loved ones by sponsoring and participating in local community events such as the Walk to End Alzheimer’s;
  • We encourage our employees to support our local community by matching voluntary contributions through our company-wide Charity program;
  • We support the Granger Cobb Institute with a continuing endowment to further educate students in pursuit of careers in senior housing;
  • We support the Community Foundation of Middle Tennessee with a continuing endowment to support local charities; one of our corporate officers serves on the Board as well;

GOVERNANCE

  • We elected our first female director, Charlotte A. Swafford, to the Board of NHI in 2020;
  • We engaged a search firm to help the Board identify an additional diverse member which resulted in the appointment of our second female director, Tracy M.J. Colden, in 2022;
  • We appointed Ms. Colden as the chairperson of the Nominating and Corporate Governance Committee in 2024 and have commenced a search for a new director;
  • NHI’s workforce by gender is 52% female and 48% male; and
  • We have designed our executive compensation to be aligned with stockholders by rewarding executives for growth in Normalized FAD and dividends, conservative dividend payout ratios, prudent balance sheet management, accretive investment growth, and total shareholder return;
  • We have adopted a Clawback Policy to recoup incentive compensation in the event the Company is required to restate its financial statements.