Environmental, Social, and Governance

Our commitment to sound governance, environmental stewardship, and social responsibility within our teams and communities is at the heart of our corporate mission, business strategy, and ESG focus areas.

“At Ladder, we look beyond the hallways we pass through every day, and we strive to succeed, not just financially, but also in being positive corporate citizens.” – Brian Harris, CEO

Our ESG Strategy and 2021 Highlights -

Ladder Capital Corp (Ladder or the Company) believes that the proactive development and oversight of the environmental, social, and governance (ESG) factors that matter most to our business are essential to long-term value creation for our shareholders, employees, clients, communities, and other stakeholders.

Strategy Highlights

We evaluate our business operations and investment portfolio on an ongoing basis, guided by our commitment to execute the strategic ESG focus areas critical to our long-term business success. In 2021, we continued our progress in each area, as noted below:

Our ESG Strategy 2021 Highlights
Our Governance Principles
  • Accountability
  • Integrity
  • Risk Management
Governance Principles icon
  • Appointed Head of ESG and expanded ESG disclosure based on data as of December 31, 2021
  • Executive Team and Board fully aligned with shareholder interests, collectively owning over $150 million in LADR stock (over 10% of the market capitalization)
  • 100% of employees completed legal and compliance, anti-discrimination, and cybersecurity training requirements
  • Over 99% collection rate of loan portfolio interest payments and tenant rents across our loan and real estate investments, illustrating our credit risk management
  • Proven track record with < 0.1% in losses across all investments originated since inception
  • Achieved an upgrade from S&P on our senior unsecured bonds and removed from negative watch by all three rating agencies in June 2021
Our People
  • Diversity, Equity, and Inclusion
  • Talent Recruitment, Development, and Advancement
  • Collaborative Culture
  • Competitive Compensation and Benefits
  • Employee Health and Safety
Our People icon
  • 40% of our Executive Team is comprised of women, more than 20% of employees identify as female, and 50% of those are currently at Director+ level, including our President who also serves on our board
  • 26% of employees were promoted in 2021
  • Hosted company-wide town halls and fireside chats and sponsored outdoor and virtual employee events to preserve culture of collaboration and togetherness during another pandemic year
  • January 2022 employee survey had an 89% participation rate; 95% of respondents were enthusiastic about working at Ladder
  • Ladder reimburses employees for up to 90% of medical premiums and fully covers dental, vision and other premiums
  • Remote and hybrid work options during COVID-19 pandemic
Our Communities
  • Community Development
  • Access and Affordability
  • Property Improvements
Our Communities icon
  • Formalized affordability metrics for our multifamily, manufactured housing, and mobile home (collectively, “multifamily”) investments
  • With an average loan size of $23 million, we provide mortgage loans to fit the needs of smaller enterprises and local property owners
  • We have 58 multifamily investments. Using HUD’s income categories, by loan count, 48% of these investments include affordable housing for low-income families, with over half (26%) for very low-income families
  • By property count, 91% of the properties in our real estate portfolio are leased to necessity-based businesses such as pharmacies and grocery stores that remained open throughout the COVID-19 pandemic
  • The vast majority (89% by loan count) of Ladder’s balance sheet loans have provided necessary capital to enhance and upgrade properties
Our Planet
  • Environmental Investment Risk Management
  • Resiliency
  • Responsible Consumption
Our Planet icon
  • Environmental risk assessment completed for all new loans and real estate investments, reviewed by specialized environmental counsel
  • Helped office campus tenant facilitate a $150 million tenant-funded retrofit to meet LEED Gold’s energy standards and Fitwel certifications
  • Our geographic diversity helped limit the impact of 2021 named storms and natural disasters on our real estate and loan collateral properties
  • Per January 2022 employee survey, 93% of respondents indicated they commute via public or alternative transportation (walking or biking)
ESG Oversight

While the full Board of Directors (Board) has ultimate responsibility for ESG matters that impact our business, the Nominating and Corporate Governance Committee (NCGC) exercises primary Board oversight of ESG risk management, strategy, initiatives, and policies, in accordance with its charter. Our ESG Committee of cross-functional leaders, including our newly-appointed Head of ESG, drives our ESG strategy development and implementation. It is led by our Chief Administrative Officer and General Counsel (CAO), who has primary responsibility for Ladder's corporate governance, capital markets activities, public relations, legal and compliance work, human resources (HR), and risk management. The ESG Committee provides periodic updates to the Board, NCGC, and Executive Team to keep them informed of, and to collaborate on, initiatives and progress within our ESG focus areas.

ESG oversight
About This Disclosure

Our ESG Committee developed, and the Nominating and Corporate Governance Committee of the Board approved, our corporate ESG strategy. The core focus areas of our ESG strategy were informed by, and selected to align our disclosures with, the Sustainability Accounting Standards Board (SASB) framework and the United Nations Sustainable Development Goals (SDGs). For more information, please see Frameworks and Standards below.

Our Governance Principles +

Our People +

Our Communities +

Our Planet +

Frameworks and Standards +

Key Disclosures +