STAG Industrial's Green Blueprint: Building Value Beyond Warehouses

BOSTON, MA – May 13, 2026 – STAG Industrial, Inc. (NYSE: STAG), a major owner and operator of industrial properties across the United States, today published its 2025 Sustainability Report, outlining a comprehensive strategy that intertwines environmental stewardship with long-term financial growth. The report details significant progress in carbon reduction, renewable energy, and tenant engagement, signaling a deep commitment to sustainable practices as a core pillar of its business model.

In a statement accompanying the release, President and CEO Bill Crooker emphasized the strategic importance of these initiatives. "STAG's focus on sustainability contributes to a resilient portfolio that creates enduring value for our shareholders and the communities we serve," he said. "STAG is committed to advancing meaningful environmental initiatives that support our broader mission of long-term growth."

This announcement arrives as investors and regulators increasingly scrutinize the environmental, social, and governance (ESG) performance of real estate investment trusts (REITs). For a company with a vast portfolio of 601 buildings spanning 120.3 million square feet, the report provides a critical look into how sustainability is being operationalized at scale.

A Blueprint for Resilience and Growth

Beyond simple corporate responsibility, STAG Industrial's report frames sustainability as an essential driver of portfolio resilience and competitive advantage. The initiatives detailed are not just environmental add-ons but are integrated into the company’s financial and operational planning. This strategic approach is designed to mitigate climate-related risks, enhance asset value, and attract a growing pool of ESG-conscious capital.

Analysts note that for industrial REITs, which manage energy-intensive logistics and warehouse facilities, a proactive ESG strategy is becoming a key differentiator. STAG's use of sophisticated tools like the MSCI Climate Value-at-Risk platform allows it to conduct scenario analyses, identifying potential physical and transitional risks from climate change. This forward-looking risk management is viewed positively by investors who see it as a safeguard for long-term returns.

The company’s strategy also focuses on the direct financial benefits of sustainability. By investing in energy efficiency and renewable energy, STAG aims to lower operating costs, which can translate into higher net operating income and more attractive properties for tenants. This focus on creating tangible value reinforces the idea that sustainable practices and shareholder returns are not mutually exclusive but are increasingly interdependent.

Greening the Industrial Landscape

The 2025 report showcases concrete achievements and ambitious targets that form the backbone of STAG's environmental strategy. The company has successfully maintained operational carbon neutrality for its Scope 1 and Scope 2 emissions for four consecutive years, a significant accomplishment achieved through a combination of efficiency measures, on-site renewables, and the purchase of renewable energy certificates (RECs).

Looking ahead, STAG has committed to a science-based target, approved by the Science-Based Targets initiative (SBTi), to reduce its absolute Scope 1 and 2 greenhouse gas emissions by 50% by 2030 from a 2018 baseline. This commitment signals a clear pathway toward decarbonization.

Key initiatives driving this progress include:

• Solar Power Expansion: The company has already deployed 30.3 megawatts of solar capacity across its portfolio and is actively evaluating projects that could more than double this capacity. These installations not only generate clean energy but also create new revenue streams and provide tenants with access to more sustainable power sources.

• Energy Efficiency Upgrades: STAG continues its aggressive push to modernize its buildings. As of the latest reporting, 57% of its portfolio has been converted to high-efficiency LED lighting, and 48% features reflective roofing to reduce cooling loads. These upgrades are fundamental to reducing the overall energy footprint of its assets.

• Tenant Collaboration and Green Leases: Recognizing that the majority of a building's environmental impact comes from tenant operations (Scope 3 emissions), STAG is actively engaging its partners. The company holds a Green Lease Leader Gold designation and has increased the proportion of green leases in its portfolio from 13% to 17% in the past year. These leases include provisions that encourage and facilitate energy efficiency, data sharing, and other sustainable practices, creating a collaborative approach to environmental performance.

Setting the Standard in a Competitive Market

STAG Industrial's detailed reporting places it competitively among its peers in the industrial REIT sector, where ESG performance is rapidly becoming a key benchmark for success. Industry leaders like Prologis have long championed sustainability, turning it into a competitive race to build the most efficient, resilient, and green logistics networks. By publicizing its targets and progress, STAG is demonstrating its commitment to keeping pace and setting standards.

The timing of the report is also significant, as the regulatory landscape continues to evolve. The U.S. Securities and Exchange Commission (SEC) is moving toward mandatory climate-related disclosures, which will require public companies to provide detailed information on their emissions, climate risks, and governance strategies. STAG's proactive efforts in measuring its carbon footprint—including the complexities of Scope 3 emissions—and formalizing its sustainability policies position it well for this new era of transparency.

Furthermore, the company's annual participation in the Global Real Estate Sustainability Benchmark (GRESB) provides investors with a standardized framework to compare its ESG performance against industry benchmarks. This commitment to transparency and third-party validation is crucial for building credibility and trust in a market where claims of sustainability are under intense scrutiny.

Beyond the Buildings: Community and Governance

STAG’s ESG framework extends beyond environmental metrics to encompass social responsibility and robust governance. The company's Charitable Action Committee, an employee-led group, actively supports underserved communities in the Boston area with a focus on empowering at-risk youth through financial contributions and volunteerism. This commitment to social impact reflects a broader understanding of corporate citizenship.

On the governance front, STAG has formalized its approach by introducing a Sustainability and Resilience (S+R) Policy, designed to embed these principles into every facet of its decision-making process. The recent launch of a new property management platform is expected to streamline the execution of sustainability initiatives across its sprawling portfolio, ensuring that high-level goals are translated into on-the-ground action.

By integrating environmental targets with social programs and strong governance structures, STAG presents a holistic ESG strategy. This comprehensive approach is designed not only to meet the demands of today's market but also to build a durable and responsible business prepared for the challenges and opportunities of the future. The 2025 Sustainability Report, available on the company's website, offers a detailed roadmap of this ongoing journey.