In celebration of Earth Day 2024, Leslie Swanson, executive vice president and COO of Tanger Inc. (NYSE: SKT), looks at how the REIT strategically integrates sustainability into every aspect of its operations, with a focus on making smart investments that benefit both the environment and the bottom line.
Swanson also emphasizes the power of teamwork. “Ultimately, Earth Day is a chance to tackle major environmental and social issues alongside our communities. By tapping into our platform and resources, we raise awareness, inspire action, and strengthen the bond between Tanger, our retail partners, and the neighborhoods we serve,” she says.
How is Tanger strategically embedding sustainability into its operations with a return-on-investment mindset?
At Tanger, we're passionate about creating a thriving future, not just for our business, but for our planet and the communities we serve.
We have aligned our initiatives with two core principles of the business: responsible expense control and proactive risk management. This includes enhancing energy efficiency and expanding our on-site renewable energy production.
For example, at the new Tanger Outlets Nashville development, we installed a massive 1.4-million-megawatt solar panel system. This not only has a positive environmental impact but creates predictable and stable energy costs—a welcome advantage compared to the ever-fluctuating prices of traditional fossil fuels. Going forward, we're going to keep investing in clean energy to decarbonize, reduce costs, and improve efficiency.
We've also made it easier for eco-conscious shoppers to visit by installing electric vehicle (EV) charging stations at most of our centers, offering over 300 charging spaces in total. According to a recent ChargeLab study, while 86% of EV drivers can charge at home, over half still rely on public chargers. This suggests EV drivers actively seek out public charging locations, making our centers much more compelling to them. In addition, charging an EV certainly takes longer than filling up a gas tank, so while waiting, EV drivers are welcome and likely to shop at our stores, grab a bite to eat, or visit one of our many experiential offerings, increasing foot traffic throughout the center. Some stations even have digital signage, creating opportunities for new marketing partnerships and revenue streams.
Another major area of focus for us is water conservation, especially for landscaping irrigation. We've already installed cloud-based irrigation controls at 25 properties. This technology helps us adjust watering schedules based on weather conditions, identify leaks quickly, and ultimately use less water. As such, this conservation translates directly to reduced water bills. We’ve saved 1.76 million gallons since 2019 through this approach, which equates to $188,000 in savings. Plus, by using less water, Tanger becomes less susceptible to water restrictions or shortages that could disrupt operations. We're actively expanding this program to more centers as well as exploring rainwater capture at select locations.
The wellbeing of our team members, guests, and neighbors is always a top priority at Tanger, which is why we're partnering with the National Weather Service (NWS) and NOAA to make all our centers Weather Ready Nation Ambassadors. We're proud that 23 of our centers have already achieved official StormReady® certification or Storm Ready Supporter status.
In addition, 31 of our centers are certified as NWS Weather Ready Nation Ambassadors. Through this collaboration, we're actively preparing for severe weather. Advanced planning, education, and awareness training will help us keep everyone safe while minimizing damage during storms. Demonstrating this strong commitment to employee safety through weather preparedness fosters trust and a positive work environment, and reduces the risk of accidents, injuries, and associated costs.
By emphasizing sustainability through a cost-effective lens, we're creating a win-win situation for both the environment and our business.
How do occasions like Earth Day provide opportunities for Tanger to address vital issues while fostering deeper community connections?
Throughout Earth Week 2024, our shopping centers will come alive with a range of sustainability initiatives, including tree planting drives with local organizations, educational workshops on eco-friendly living, and exciting volunteer projects focused on environmental stewardship.
But our dedication goes far beyond Earth Week activities. We're proud to spotlight some of our ongoing sustainability initiatives, like rooftop solar panels that reduce our carbon footprint, urban beehives that support crucial pollinators, and on-site vegetable gardens that nourish local food banks.
We're also celebrating the eco-conscious practices of our retail partners, offering a space for learning and collaboration towards a healthier planet. Understanding the importance of local impact, we partner with community gardens, nature preserves, and beekeeping clubs. These partnerships not only support vital environmental causes but also offer community members opportunities for hands-on learning and giving back.
Last year alone, our rooftop gardens at Tanger Outlets Savannah, Atlantic City, and National Harbor yielded over 1,200 pounds of fresh produce for local food banks, while our butterfly gardens at Tanger Outlets Deer Park, Nashville, Tilton, and Branson, and urban beehives at ten of Tanger’s U.S. centers, bolstered conservation efforts and provided honey to local shelters. These great programs show how acting together can benefit both our environment and the social fabric of our communities.
What are some strategies for successful community engagement that stretch beyond these individual occasions?
Community engagement for Tanger isn't just about events. We “Consider Community First” in all that we do, because our richly diverse communities are the heartbeat of our business. This approach is centered around Tanger's decentralized, field-driven organizational structure, which empowers experienced teams in each local market to deeply understand the unique needs, opportunities, and traffic drivers of their communities.
We organized and hosted 100-plus community engagement events at our locations, celebrating a diverse range of occasions. These activities included observances like Earth Day and Pride Month, as well as programming supporting pet adoptions, fundraisers, blood drives, toy drives, and back-to-school events. Beyond financial contributions and event planning, we also encourage our employees to volunteer their time. Tanger provides 40 hours of paid volunteer time annually to each staff member, and in 2023, three-quarters of our team participated in this program, collectively donating more than 6,500 hours to support the neighborhoods where we operate.
Tanger's commitment to community extends far beyond hosting events. We're deeply invested in the wellbeing of the places we operate in, demonstrated by our impactful programs like TangerKids and TangerPink. Through TangerKids, we directly support local schools and educational programs. In 2023 alone, we funded 142 grants totaling over $170,000. Additionally, our long-standing partnership with the Breast Cancer Research Foundation has raised over $4.6 million since 2011, supporting crucial efforts in awareness, research, and patient support.
We leverage our resources, expertise, and physical presence to address local needs, create shared value, and strengthen the social fabric of the neighborhoods we serve. This layered approach helps us build deep, long-lasting connections with our communities.
What is the value of investing in field operations to help improve the communities that companies operate in?
Strong communities create strong businesses, and my team’s dedication to our local markets exemplifies this perfectly. For nearly 30 years, Tanger has looked beyond simply being a shopping destination, prioritizing the wellbeing of the neighborhoods it serves. Our field teams deeply understand local needs, allowing them to develop initiatives that foster a welcoming, inclusive environment and strengthen the social fabric.
This community-centric approach has proven to be good for business. We truly get to know our customers, and as we refine the shopping experience, our local focus and understanding of their expectations prove incredibly helpful in driving traffic and sales over time. Investing in field operations to support local communities is a win-win: creating a lasting impact on wellbeing that has tangible business gains.
See photos of some of Tanger’s Earth Week events across its portfolio below.
