Michael Chang, vice president for energy and sustainability at Host Hotels & Resorts, Inc. (Nasdaq: HST), participated in a video interview during REITwise 2022: Nareit's Law, Accounting & Finance Conference held in Orlando, Florida on March 23-25.
Chang discussed lessons for companies that are just starting their ESG reporting process. He noted that Host has been disclosing sustainability data for over 10 years and has included sustainability data in 10-K and proxy statements since 2017. Along the way, Host has learned to really focus on an “auditable sustainability reporting system,” he said.
When creating a sustainability reporting system there are three areas to focus on, Chang said. The first is data management and taking a consistent approach to gathering data; second, developing an inventory methodology plan that aligns with the business strategy; and third, engaging with your internal teams early on.
“It’s important to engage with your accounting, legal, financial reporting teams early so that you can have those controls in place, and you don’t need to go back and re-educate and re-inform and potentially have to revise your methodology and approach later on,” Chang said.