2020 Sustainability Report: Empire State Realty Trust




3 Introduction

Letter from Our Chairman, President, and CEO and Our SVP, Director of Energy, Sustainability, and ESG . . . 3 Empire State Realty Trust Overview ...4 Awards and Achievements 5 6 Environmental, Social, and Governance Strategy 10 Environmental Sustainability Goals and Accomplishments . . . 12 Goals and Targets . . . 13 Sustainability Policies 14 High-Performance Healthy Buildings . . . 18 Empire State Building: New York’s Sustainability Icon . . . 20 22 Environmental Performance 28 Social Responsibility Human Capital and Social Impact Goals . . . 30 Community Engagement . . . 34 36 Governance 42 GRI Content Index About This Report . . . 47

April 2021

2020 was an unprecedented year in so many ways. We worked hard, pivoted, and flexed to support our business, our stakeholders, and our colleagues. ESRT benefited from our more than a decade of groundbreaking, industry-leading work on healthy buildings, Indoor Environmental Quality (IEQ), and sustainability. We were in a position to focus on people, service, and the runway for our business. Our bold focus on Environmental, Social and Governance (ESG) matters continues. We have formally committed to achieve net-zero carbon emissions at the Empire State Building by 2030 and across our portfolio by 2035. We formalized and strengthened our commitments to Diversity, Equity, and Inclusion (DE&I) through the establishment of social impact goals and transparency in reporting key diversity metrics. We are a resilient organization that adapts and leads to deliver long-term value to our shareholders through excellence in our ESG performance. Sustainability, including energy efficiency, IEQ, and healthy buildings, is in our DNA and what we do every day. We use our experience and expertise to lead our business and engage with local, state, and federal government and inform our industry. Now we deliver our first Sustainability Report. We present the pathway to a confident return to the office in a post-COVID world. We are the first commercial office portfolio in Americas to achieve the WELL Health-Safety Rating, a third-party validation of our IEQ. We are now deep into version 2.0 of our work to bring more innovation in energy efficiency and IEQ. We will continue to deliver tangible emissions reductions, drive the industry forward, and report transparently on our efforts and milestones. Please read on and learn of our progress to date and plans for the future. We welcome the chance to share them with you. We recognize that DE&I is more than the policies and programs we implement. We strive to be an equitable employer and respect the unique needs and perspectives of all team members. Our leadership and embedded expertise have prepared us for unanticipated challenges, and our strong ESG foundation has become more important than ever. 2020 has underscored the benefits to our stakeholders of our long-term investments and unwavering commitment to sustainability.

Dana Robbins Schneider SVP, Director of Energy, Sustainability, and ESG

Anthony E. Malkin Chairman, President, and Chief Executive Officer


We leverage our innovation, industry leadership, and expertise to establish the framew o rk for carbon neutrality, create healthy and resilient communities, and drive financial performance. Our commitment to carbon-neutral operations has been set for the Empire State Building by 2030 and the portfolio by 2035. We focus on a reduction of energy usage and emissions in our buildings with technical and economic balance, partner with policymakers, offset the remainder of our operations with 100% renewable energy sources, and will develop on-site or community- based renewable energy and storage where viable. Integration of sustainability into all aspects of our business predates our IPO in 2013. Our unparalleled approach to energy efficiency is integrated across our portfolio of 10.1 million square feet of office and retail space in Manhattan and the Greater New York metropolitan area. We have been industry leaders for more than a decade and share our processes and our work freely with experts, industry, and government. We are excited to share our inaugural Sustainability Report to highlight our work and our plans to continue to set the standard for sustainability in real estate. Our groundbreaking work commenced at the Empire State Building in 2009 which remains the largest and best example of energy-efficient, sustainable, and healthy building retrofit in the world. We continue to implement advances at our great lady as she celebrates her 90th birthday and throughout our entire portfolio. ESRT will extend our lessons learned and commitment to assets we acquire as we commit capital to expand our portfolio.



#1 MOST EFFICIENT REIT IN NYC Rated most energy- efficient REIT in NYC per Morgan Stanley Investor Report* based on kgCO 2 e per square foot.

2020 Green Lease Gold Leader

100% WELL Health-Safety Rated

76% ENERGY STAR Certified

83% Manhattan Portfolio Fitwel Certified Fitwel Champion

*Report published 2/5/2020

14 properties in portfolio

GRESB Green Star Rating Ranked 5th in Peer Group

Empire State Building is LEED EB O&M v4 Gold

Top 20% of all GRESB Respondents GRESB Public Disclosure A Rating

10.1 million square feet

100% renewable energy portfolio wide

Better Buildings Challenge Partner



Sustainability is integrated into who we are and what we do every day. Our groundbreaking work helps set standards for our industry and deliver long-term value for our stakeholders, tenants, colleagues, and the communities where we live and work. We are pa rt of the fabric of New York City, and are committed to the integration of industry-leading ESG practices in every aspect of our business.

Our environmental sustainability program provides leadership and sets standards in innovation and technology. We focus on quantifiable improvement in energy efficiency, water efficiency, recycling, and waste diversion. ESRT’s cutting-edge work in energy efficiency, for the benefit of our tenants and our environment, is recognized worldwide. For more than a decade, we have prioritized healthy work environments for our tenants and employees through IEQ. To foster employee health and productivity, we partner with our tenants to empower them to be better designers, builders, and operators of their own spaces. As a company, we commit to the creation of a diverse, equitable workplace that actively promotes employee developmen t and driv es social impact, good corporate governance, and transparency in reporting. Our ESG strategy is overseen and supported by our highly engaged Board of Directors and management team. Our ESG goals and key performance indicators allow us to measure the success of our efforts, identify and evaluate opportunities for improvement, and set a standard for ESG in real estate.


STAKEHOLDER ENGAGEMENT SUPPORTS OUR ESG STRATEGY We inform and solicit feedback from our stakeholders. Disclosure of our practices enables our stakeholders to view our company holistically and understand our trajectory beyond reporting and financial metrics. Tenants Our tenants are our top priority and we focus on the creation of healthy, productive, and sustainable built environments that attract and retain tenants and position us for long-term success. Through this lens, we elicit feedback from our tenants through annual tenant satisfaction surveys performed by a third-party across 100% of our portfolio regarding property management and sustainability. In addition, we directly engage with our tenants via town halls and education sessions specifically focused on sustainability. Since 2013, the year in which we went public, through December 31, 2020 we have signed 217 leases for approximately 1.9 million square feet with tenants who have expanded within our portfolio. Brokers Our brokers receive continuous education on our actions to ensure they understand the details and clearly convey our value proposition, including frequent training sessions on ESRT’s High-Performance Sustainable Healthy Building guidelines, health and wellness initiatives, awards, and operational savings. Employees Our employees, including project management teams, leasing teams, investor relation teams, marketing teams, and legal teams, are central to the execution of our vision and emulate ESRT’s core values. The property management and engineering teams translate our sustainability strategy into action at each of our buildings. On a regular basis, we lead sustainability and other strategic training for all teams. Shareholders Our Board of Directors is committed to frequent engagement with management and key stakeholders on our ESG, compensation, and company strategy matters. Leading up to our 2020 annual meeting, we contacted shareholders reprsenting 86% of our common stock. During fall and winter 2020, we contacted our largest institutional shareholders, representing over 78% of our outstanding common stock to receive their feedback, and our Directors held meetings with shareholders representing 65% of our outstanding common stock. Our SVP, Director of Energy, Sustainability and ESG, investor relations, and senior management team also engage with our shareholdrs throughout the year in a variety of forums including an emphasis on 1:1 engagement. Direct results of these engagement s have driven increased disclosures and reporting on ESG initiatives and enhanced communication on our initiatives to highlight our achievements. Community We are present and actively engaged in our communities as part of our commitment to better the places where we live and work. Through community leadership, charitable donations and volunteerism, we will deliver on our commitment to our communities.



Leadership is part of Empire State Realty Trust’s mission. We actively engage and hold leadership positions, through which we share information and shape and inform industry standards and set government policy. Our innovation and thought leadership are driven by our team of experts who are committed to optimize performance, integrate innovative technologies, deliver real performance improvements and energy savings, and reduc e our environmental impact across our portfolio. Our role and partnerships in the NYC Green Code Task Force, 80x50 Technical Working Group, NYC Mayor’s Carbon Challenge, and our engagement with NYSERDA have enabled us to work closely with key stakeholders to drive impactful change. Our Chairman, President, and CEO is the sole owner - member on the implementation of New York City's Climate Mobilization Act Advisory Board, Co-Chair of its Commercial Building Pathways Working Group, Real Estate Roundtable Board Member, and Chair of its Sustainable Policy Advisory Committee, and he has had a positive impact on federal, state, and city policy.



REBNY Sustainability Committee

Urban Green Board of Directors

Final Round Judge



We believe in the power of building performance to improve employee productivity, enhance our competitive position and reduce our impact on the built environment. Our sustainability strategy and implementation of best practices, state-of-the-art technologies, and results-driven initiatives position us to set the standard for real estate companies. We

treat our portfolio as a laboratory and we continuously evaluate new and emerging

technologies to optimize performance across our key priority areas to reduce energy, greenhouse gas emissions, water, and waste consumption while promoting IEQ.








Goals and Accomplishments

ENERGY • Target a reduction of energy use intensity by 20% by 2024 as part of the U.S. Department of Energy’s Better Buildings Challenge • 100% of Portfolio Fully Powered by Renewable Wind Electricity. We have purchased 100% renewable energy at Empire State Building since 2010 and portfolio wide as of January 1, 2021 • Nation’s largest 100% user of green power in real estate per EPA Green Power Partnership report given that 100% of our portfolio is covered by renewables • #1 most energy efficient REIT in NYC based on kgCO 2 e per square foot per Morgan Stanley February 5, 2020, research report: Time for the Big Apple to Go Green: Office in Focus CARBON EMISSIONS • Target net-zero carbon emissions by 2030 at the Empire State Building and across our portfolio by 2035 • Work to identify pathways to exceed NYC goals to reduce greenhouse gas emissions 40% by 2030 and 80% by 2050 • Intend to meet the Empire Building Challenge and commit to leadership at a statewide level to achieve 85% local emissions reduction by 2035 in partnership with the grid

WASTE AND RECYCLING • Target a reduction of waste generation 5% year-over-year • Target 75% waste diversion rate by 2035 from a 2018 baseline

• Perform waste audits at 100% of properties annually (note, this could not be effectively done in 2020 due to pandemic precautions and impact on waste diversion measures)

WATER • Target reduction of water use by 2% year-over-year • Target 30% reduction by 2035 from a 2018 baseline • Implement ultra-low-flow touchless fixtures in all renovations • Phase in real-time water metering software across the portfolio between 2020 and 2025

INDOOR ENVIRONMENTAL QUALITY • MERV 13 filters in 100% of ESRT-controlled HVAC Systems

• Meet or exceed ASHRAE 62.1 standards for ventilation at 100% of properties • Perform comprehensive indoor air quality testing at 100% of properties

• Implement green cleaning and integrated pest management practices at 100% of properties • No or low VOC and no Red List Materials required as part of High-Performance, Sustainable, and Healthy guidelines • Continue our rollout of active bipolar ionization air purification in select public areas and all new pre-builts, currently installed in over one million square feet across the portfolio ESG DISCLOSURE AND CERTIFICATIONS • Pursue ENERGY STAR Certification at 100% of eligible buildings • Report to GRESB annually • Align reporting with Task Force on Climate-Related Financial Disclosures (TCFD), SASB, and GRI as feasible • Perform third-party data verification in alignment with ISO 14064-3 • Maintain WELL Health-Safety Rating annually • Environmental Management System aligned with ISO 14001 adopted in 2020 • Climate Change Adaptation and Resilience plan intended to align with TCFD


Goals and Targets*



GOAL: 50% reduction by 2035 from a 2018 baseline

GOAL: 100% reduction by 2035 from a 2018 baseline

Achieve net-zero greenhouse gas emissions for the entire portfolio











2018 baseline

2018 baseline


WATER (m 3 )


GOAL: 30% reduction by 2035 from a 2018 baseline




2018 baseline


waste diversion rate by 2035 from a 2018 baseline





TARGET: 5% average annual waste reduction


2018 baseline

GREEN BUILDING CERTIFICATION TARGETS (percentage of the portfolio, where feasible)

100% 100%

TARGET: ENE RG Y STAR certifications 75%

TARGET: green building certifications




Achieved green building certifications across LEED, Fitwel, and WELL Health-Safety Rating

Exceeded goal for achieving ENERGY STAR certifications

*All goals and targets represent like-for-like comparisons for assets owned for 24 consecutive months across the current and previous reporting year.


Sustainability Policies To implement effectively our sustainability program and achieve our ambitious targets, we developed Standard Operating Procedures which are consistently implemented and tracked throughout 100% of our buildings. These are intended to set goals, strategies, best practices, and resources to equip our property management and building operations staff to implement practices in alignment with our strategy.


•Environmental Management System aligned with ISO 14001 • Energy and Greenhouse Gas Management

• Sustainable

• Indoor


Environmental Quality » Indoor Air Quality Monitoring and Testing that evaluates viral size particulate matter, mold and mildew, and integrates CO 2

• Vendor Code of Conduct • Climate Change Adaptation and Resilience

High-Performance, Sustainable, and Healthy Building G uidelines are integrated into all leases. These guidelines include performance-based criteria for energy, water, healthy IEQ, responsible materials specifications, and waste diversion. Our Vendor Code of Conduct guides ESRT vendors to meet our mandates and helps promote and measure sustainability, diversity, and ethical conduct in our vendor relationships. We seek vendors that provide products and services that embrace ESRT’s commitment and enforce the Code provisions throughout their organization and across our supply chain.

• Water Management

• Sustainable Waste Management

sensors that are aligned with the

targets outlined in the COGfx Study.* » Tobacco-free and Smoke-free Environment » Low-VOC Emission

» Green Cleaning » Integrated Pest Management

*The COGfx Study evaluated the impact of indoor environmental air quality on cognitive function and concluded that high-performing, green buildings result in higher cognitive function and improved human health than other buildings. Source: https://thecogfxstudy.com/


DATA-DRIVEN PERFORMANCE The foundation of our sustainability program is to measure, manage, and evaluate performance against our goals. We leverage data management platforms and cutting-edge technologies to provide advanced analytics and insights to inform and improve our performance. We partner with a leading energy analysis firm to review energy supply, demand, budgets and pricing to plan accordingly for energy supply and current and future renewable sources. Our data management platform provides advanced optimization, and real-time metering and monitoring. We leverage industry-recognized frameworks and standards including GRESB, SASB, TCFD, and GRI to inform our strategy and evaluate progress against our goals. Annually, we calculate greenhouse gas emissions in alignment with the Greenhouse Gas (GHG) Protocol. To ensure accuracy and transparency in reporting, third-party verification is performed in alignment with the ISO 14064-3 standard. ENERGY EFFICIENCY AND CARBON EMISSIONS To achieve our goals, we focus on ROI-driven energy efficiency strategies in leading technology and advanced analytics—supported by quantifiable performance improvements across the portfolio. We have developed a holistic energy efficiency approach with tactics to support our assets. To keep driving down our carbon emissions, we will continue to reduce our energy consumption, procure renewable energy credits to offset emissions from electricity consumption, evaluate opportunities for on-site or community-based renewable energy and storage where viable, and partner with policymakers to drive a renewable and resilient grid.

 OUR COMPLEMENTARY DATA MANAGEMENT PLATFORMS Software platform that produces key insights and analytics of Building Management System (BMS) data to provide Real Time Energy Management (RTEM) analytics. Platform for automated, interval- level meter data and tenant billing capabilities. ENERGY STAR Portfolio Manager tracks all energy and water consumption across the portfolio. Real-Time Metering tracks real-time energy consumption. Demand Response with real- time peak load management and demand response program has been in place for over a decade.

Reduce Peak Demand and Improve Grid Resilience Demand Response programs reduce our energy consumption, costs, and emissions.

Evaluate Performance We perform energy audits and implement energy conservation measures. 100% of our properties have conducted energy audits in the last three years.

100% of our properties in the NY region participate in Demand Response.

Monitor Energy Consumption We leverage advanced analytics and track energy data in ENERGY STAR Portfolio Manager to understand performance.

Renewable Energy We offset our emissions through renewable energy credits (RECs) . The Empire State Building has purchased over 41,000 Mwh of


Green-E Certified renewable energy credits to offset 100% of electricity and nearly 17,000 MTCO 2 e. We offset 100% of electricity in our portfolio through RECs.

Real Time Energy Management

Real-time energy consumption feedback allows us to realize cost and energy savings opportunities.

Tenant Engagement We partner with our tenants to educate them and drive ROI-based energy efficiency practices.

We partner with The New York State Energy Research and Development Authority (NYSERDA) to implement. RTEM incentives for control upgrades, chiller plant optimization, tenant energy management, tenant air handling units, lighting controls, plug load monitoring, and ongoing services that use predictive analysis and diagnostics.


124+ Tenant energy audits have been performed for over 124 tenants, equivalent to 4 million square feet

TENANT ENGAGEMENT TO DRIVE SUSTAINABILITY PERFORMANCE Our engagement with tenants begins with the integration of a suite of sustainability provisions in all of our leases. Our direction drives the development of high-performance, sustainable, and healthy spaces. Our provisions include performance-based criteria for energy, water, health, IEQ, responsible materials specifications, and waste diversion. Our lease requirements encourage collaboration between tenant and landlord to achieve efficiency improvements. We share energy, waste, and IEQ data with our tenants, and provide hands-on expertise to ensure continued sustainability performance. The active implementation and execution of green lease provisions across 100% of the portfolio earned us Green Lease Leader Gold recognition. Green leases include criteria for transparent tracking and reporting of energy, water, waste, and emissions data, broker training, submetering, and tenant fit-out requirements. Our Chairman, President, and Chief Executive Officer led the funding and development of the Tenant Energy Optimization Program to develop industry-leading practices for high-performing tenant installations and worked with Congress to draft and pass legislation that created the EPA’s Energy Star for Tenants certification. The Tenant Energy Optimization Program is now managed by the Urban Land Institute’s (ULI) Center for Sustainability.

Achieved Green Lease Leader Gold recognition for our dedication to sustainability and tenant space and execution of green leases across the portfolio.

930,000+ Over 930,000 square feet of tenant space is LEED ID+C Certified.


WASTE MANAGEMENT We deploy aggressive waste diversion strategies that meet and/or exceed local regulations, as feasible. We provide training and set best practices and standards for our employees and outside contractor teams to reduce overall waste generation and increase diversion rates. We identify opportunities to track and report waste at each property to ensure that all waste is being collected and diverted in accordance with ESRT’s guidelines.

We commit to performing waste audits at 100% of our buildings to understand waste performance and identify opportunities for improvement. We improve performance through enhanced signage, employee and tenant engagement, and tracking and reporting measures. We have implemented pilot compost programs with some of our largest tenants and offer furniture reuse and donation programs, and electronic waste collection opportunities.

WATER EFFICIENCY We implement water efficiency strategies to support our water reduction goals and minimize our impact on the environment. Our water efficiency initiatives include a combination of retrofits, submeters, and pilot technology. • Low-flow retrofits/upgrades: As part of our standards, we continue to implement ultra-low-flow fixtures that we estimate to be 40–50% better than code and are EPA WaterSense labeled. • Water submeters: To monitor and measure water consumption by end use and identify areas for targeted reduction, we install water submeters for key water-using systems. We track progress from water efficiency upgrades, identify leaks from specific systems, and readily identify opportunities to increase water efficiency. • Advanced software-based water use monitoring: We have implemented an artificial intelligence software to detect and stop water leaks in select spaces, monitor water use, and analyze water use trends. This technology enables our Property Managers and Engineers to expertly manage water consumption and make informed operational decisions in real time. As of December 31, 2020, 30% of our portfolio has implemented this smart technology. We plan to extend implementation of this technology to further reduce process water usage over the next five years.


High-Performance Healthy Buildings

For more than a decade, improving IEQ has been a key tenet of our sustainability strategy. Our industry-leading, comprehensive, and state- of-the-art program focuses on operational best practices including MERV 13 filters, bipolar ionization air purification technology, indoor air quality testing, CO 2 sensors, and monitors to ensure healthy, productive spaces, green cleaning practices, integrated pest management strategies, and low-emitting materials. In 2020, Empire State Realty Trust was the first commercial real estate portfolio in The Americas to achieve the WELL Health-Safety Rating across 100% of its portfolio. The WELL Health-Safety Rating, developed by the International WELL Building Institute, is an evidence- based, third-party rating focused on operational policies, maintenance protocols, emergency plans, and stakeholder education to address a post-COVID-19 environment and broader health and safety-related issues in the future. When faced with the most intense pandemic in over a century, ESRT developed a pathway for our employees, visitors, and tenants to return to the office with confidence. We are partners with the WELL Living Lab and Mayo Clinic to advance the study of the indoor environment’s impact on human health and to help develop practices that can be implemented across the country. Empire State Realty Trust is part of the Well Living Lab Alliance, a global consortium of organizations that support the advancement of knowledge of IEQ to improve human health and well-being. Our engagement in this effort will extend the Well Living Lab’s pioneering research at the intersection of health, building, and behavioral sciences. Through our partnership with Delos and WELL Living Lab, a company dedicated to the scientific research, evaluation, and solutions surrounding IEQ impacts on health and well-being, we help the industry provide guidance that our tenants can depend on to promote functional, energy-efficient, and human health–enhancing spaces.

First commercial real estate portfolio in the Americas to achieve WELL Health-Safety across 100% of the portfolio


Bipolar Ionization air purification technology is installed in over one million square feet of ESRT office space. It has been proven to neutralize coronaviruses by 99.92% in a third-party-accredited laboratory. 1 Integrated software enables real-time monitoring of air quality.

COVID-19 has demonstrated the critical role that buildings play in human health. Our strong foundation formed over more than a decade and continued focus and expertise in IEQ in buildings helped prepare us for the unanticipated challenge of COVID-19. Our enhanced IEQ and health and safety measures, which were already implemented in advance of the pandemic and further refined during the pandemic, allowed our employees, tenants, and visitors to return to our offices with confidence. We continue to monitor and track performance as science, data, and knowledge evolve. In alignment with our approach to evaluate strategically and leverage innovative technologies, Empire State Realty Trust continually tests, vets, and implements IEQ strategies and technology across our portfolio. Active bipolar ionization and air purification is installed in over one million square feet of office space across our portfolio that has been proven in an accredited laboratory to neutralize coronaviruses by 99.92% 1 . This technology syncs both with the ionization technologies and with a building’s IT infrastructure, providing encrypted data, notifications, and reports through self-calibrating sensors that monitor for chemical and biological contaminants.

1 According to studies performed by Microchem Laboratory, one of the nation’s preeminent laboratories for testing EPA- and FDA-registered sanitizing products, on behalf of the manufacturer, Atmos Air.



The Empire State Building, the World’s Most Famous Building, is the international icon of the New York City skyline. An urban campus within a single building, it is modernized and amenitized for the 21st century. The Empire State Building is also the leading international model for energy efficiency retrofits in the existing built environment. We have already reduced GHG emissions by 40% over the past decade. We now work on plans to reduce emissions by up to another 40% this decade. To achieve the deep energy retrofit at Empire State Building, we focused attention on the building’s envelope, mechanical systems, and lighting. The team started from the outside in recognition of the importance of improving performance through the building’s walls and windows. 40% Anticipated to reduce emissions by another 40% in the next decade. $4.4 million in annual energy savings.*

Reflective barriers were added behind each radiator to send steam heat back into the building.

*For more information, visit https://www.esbnyc.com/about/sustainability


REFLECTIVE BARRIERS Reflective barriers were added behind each steam radiator in the building, which allowed heat to better make its way into the building rather than being sent to the outside. WINDOW INSULATION The team then focused its attention on improving the building’s 6,514 windows’ resistance to heat and cold transfer through a comprehensive reconstruction performed in a window factory installed in the building. 96% of the original frames and glass was reused in the process that added a mylar sheet and a krypton/argon gas layer to the windows. ENERGY EFFICIENCY Once the building insulative envelope improvements were complete, the team installed technologies to improve energy efficiency inside the building. Automated LED lighting was installed to reduce the energy required to illuminate spaces. Tenants added plug load controls to reduce energy from devices left on during off hours. The building’s insulative envelope improvement allowed for the refurbishment, rather than replacement, of decades-old, existing chillers. The condensate from the building’s steam heating system is recycled to warm the water that flows out of taps. State-of-the-art energy-generating elevators transport the Empire State Building’s thousands of tenants. Regenerative braking was installed to capture the wasted energy from slowing down descending elevators and use it to power elevators going up. The Empire State Building is an employee attraction and retention tool for its tenants. Tenants pursue sustainability with their own high-performance certifications and participation in strategic energy and sustainability programs. The building’s custom Tenant Energy Management software allows all tenants to view and manage their energy use in real time.

The building’s 6,514 windows have insulating film with argon and krypton gas to prevent heat loss. Over 96% of the existing frames and glass was reused. The project achieved a 70% cost reduction compared to the cost of new windows. All work was performed on-site, translating to a 100% reduction in Scope 3 emissions* from construction.

*Energy and cost savings evaluated annually through the IPMVP Option D Measurement and Verification process.


If it works at The Empire State Building , it can work everywher e.

ENERGY STAR Certified since 2010

LEED EB O&M v4 Gold

Tenants achieved LEED CI Gold and Platinum Certifications




Empire State Realty Trust commits to disclose key environmental performance metrics across energy, GHG emissions, water, and waste to track, evaluate, and improve performance. We disclose environmental performance data for properties where Empire State Realty Trust has full operational control and authority to implement operational policies related to energy, GHG emissions, water, and waste. The reporting boundary includes 14 properties controlled by Empire State Realty Trust as of December 31, 2020. GHG Emissions were calculated in accordance with ISO 14064 Part 3: Greenhouse Gases: Specification with guidance for the validation and verification of greenhouse gas assertions (ISO, 2019). A similar approach and methodology was utilized for energy, water, and waste data.




13% reduction in energy consumption compared to 2019

157,898 MWh

Electricity ( 89,361 ) Steam ( 43,243 ) Fuel ( 25,295 )


100% of portfolio electricity is powered by renewable energy














19% reduction in emissions compared to 2019

39,856 MTCO 2 e

Scope 1 ( 4,463 ) Scope 2 ( 18,491 ) Scope 3 ( 16,722 )



















Scope 1

Scope 2

Scope 3








45 % reduction in water consumption compared to 2019












8.9 gal/ft 2 2020 water use intensity















35% waste diversion rate in 2020

2,074 tons

Landfill ( 65.09% ) Recycling ( 34.52% ) Compost ( 0.38% )

We recycle tenant waste and construction debris throughout our entire portfolio. Our goal is to increase recycling diversion rates and the types of materials recycled, both in daily waste and in renovation and new construction.




Who we are is what we do. Our people drive our long-term success and growth, and we are committed to promote their own health, well- being, and personal development to reach their full potential. We foster a diverse, equitable, and inclusive workplace through training and development programs, specific strategies to diversify our workforce, and full transparency as we strive for measurable goals.


Human Capital and Social Impact Goals

DIVERSITY, EQUITY & INCLUSION (DE&I) •We believe diverse perspectives and experiences enhance effective decision-making and innovation. We strive to create a diverse and inclusive workplace where people can be authentic in their roles. • We aim to enhance the DE&I of our organization through transparency and disclosure of the U.S. Equal Employment Opportunity Commission (EEOC) diversity data at all levels and implementation of formal policies that mandate diversity in candidate pools for new hires, encourage promotion and advancement of diverse persons, and prohibit discriminatory practices in the workplace. • We believe that transparent reporting holds us accountable and is in the best interest of our stakeholders. We are committed to transparency and disclosure of key diversity metrics at all levels of the organization including race, gender, and age group distribution. Our DE&I Policies:

Hiring Practices We are focused on diversity in applicant pools for every hire. To do this, we have implemented systems to track candidates through the HR process to ensure at least 25% of candidates presented to hiring mangers for open roles represent diverse persons, where

Discrimination-Free Workplace As outlined in our Employee Manual, everyone has the right to work in an environment that promotes equal opportunities and prohibits discriminatory practices, including sexual and other discriminatory harassment and retaliation. In keeping with this commitment, we will not tolerate unlawful discrimination (including any form of unlawful harassment or retaliation) at work or in work-related settings by or against anyone.

Pay Equity We believe people should be paid for

what they do and how they do it, regardless of gender, race, religion, or other identity or personal characteristics. We set pay based on market data, as well as an individual employee's performance, experience, and seniority. We consult with an independent third-party expert to review our pay practices.

possible. We work with our recruiting

firms to emphasize our requirement for highly qualified candidates from diverse backgrounds. We have also mandated two minority participants from NYC in our internship program.


COMMUNITY ENGAGEMENT • Further develop a community engagement program with an emphasis on employee volunteerism in our communities, including company-sponsored volunteer events and philanthropy. • To elevate our employee volunteerism, we will implement a program to track employee volunteer hours so that we can report impactful and measurable community engagement metrics. •With the passing of COVID-19, we will continue to enhance our employees’ volunteer and community engagement opportunities with organizations they feel passionate about that align with our company’s mission to create healthy and resilient communities. We solicit employee feedback about the opportunities they would like to see before implementing our program. VENDORS AND PROCUREMENT •We have implemented new initiatives to audit vendors, services, contractors, and supply chain diversity , and emphasize the importance of diversity to our current vendors. • Our Vendor Code of Conduct guides ESRT vendors to meet our HUMAN CAPITAL •We know our future success depends on our continued ability to attract, retain, and motivate qualified employees. We offer meaningful and impactful wellness and benefit programs that address employee mental, physical, and social health , and keep pace with changing market practice. • We track engagement in fitness, wellness, and training offerings to evaluate effectiveness, engagement and priorities of our employees and we will evolve, refine and improve based on employee feedback. mandates and helps promote and measure sustainability, diversity, and ethical conduct in our vendor relationships. We seek vendors that provide products and services that embrace ESRT’s commitment and enforce the Code provisions throughout their organization and across our supply chain. • Our procurement practices promote the procurement of sustainable goods, such as green cleaning materials and sustainable building materials, as a method of fostering health and wellness of our employees and tenants.


100% of employees engaged in coursework in 2020 64% of employees completed voluntary coursework in 2020

INVESTMENT IN HUMAN CAPITAL We believe continuous learning by our employees supports productivity, innovation, and retention, as well as personal and professional growth for the individual employee. We aim to increase employee participation in our firm-wide training platforms like Linked-In Learning and to increase the quality of career development opportunities available to employees. We invest in training, including certain programs which are mandatory for all employees, and other programs which are voluntary and self- directed on platforms provided to all employees by the company. Monthly educational seminars provide training, and an extensive online educational platform assists corporate employees in developing business, technology-related, and creative skills through expert-led course videos. Training is encouraged and monitored in semi-annual reviews with managers. COMPANY CULTURE We are dedicated to the improvement of our corporate culture to maximize talent attraction, employee retention, and productivity. To strengthen our company culture, we gather feedback through employee surveys and listening sessions, using a third party as helpful, and integrate such feedback into our employee offerings. We conduct an Annual Employee Engagement Survey in Q1 of each year to measure our corporate employee’s overall satisfaction with our company. In 2020, we made the following changes, among others, as a result of feedback gathered through our survey: increased communication with employees from HR and leadership to enhance transparency and foster a sense of community and rolled out internal sites for Human Resources and Benefits/Wellness for ease of utility in employees. EMPLOYEE HEALTH, SAFETY, AND WELLNESS DURING COVID-19 The safety, health, and wellness of our employees and their families is a primary focus for us. To support this commitment, we offer a range of programs and a robust and comprehensive benefits package to our corporate employees. During the COVID-19 pandemic, our priority continues to be the protection of the health and safety of our employees, tenants, and visitors. We have established comprehensive health and safety protocols.

EMPLOYEE SATISFACTION Our commitment to our employees is exemplified by the results of our 2020 annual employee satisfaction survey 96% of employees are proud to work at ESRT 84% overall engagement score, representing an increase over prior years 96% of employees reported strong partnerships with their colleagues


EMPLOYEE SAFETY • Emergency response training •Mandatory first - aid/OSHA training • Crisis management team • On-site mandatory fire safety training

EMPLOYEE HEALTH AND WELLNESS •Quarterly company-provided guidance on nutrition, stress management, sickness prevention, and healthy living • Collaborative open workspaces with abundant natural light and ventilation in corporate headquarters • Standing and ergonomic desks • To engage and create a sense of community among our employees while they worked from home, we supported a network of videoconference platforms for convenient video communication among all employees, continued department and group meetings in virtual format, and hosted numerous virtual engagement evnts including trivia, bingo, book clubs, wine tasting and cooking classes, fitness classes, yoga, and stretching and meditation. » We instituted a cross-department team of employees to assist with the company’s plan to return to the office, which included PPE and cleaning supply procurement, the creation of training content, reconfiguration of desk space, and as necessary adjustment of employee schedules to allow us to comply with social distancing requirements. •During the COVID-19 pandemic, we introduced the following measures to support the wellness of our employees as part of our Crisis Response Plan including: » We proactively engaged our IT department to prepare for the possibility of employees working remotely and provided additional equipment as necessary, so when the company shifted to work from home in accordance with government guidance, the transition was seamless. » We increased our communication to employees through human resources as well as ongoing virtual Q&A sessions with the CEO. » To keep our employees safe in our return to the office in June 2020, we implemented active daily screening of COVID-19 symptoms through a service that also provides employees access to instant messages communication with health providers, virtual appointments with doctors and testing. EMPLOYEE BENEFITS • Employee Assistance Program to provide emotional support, work-life solutions, legal guidance, and financial resources programs • Additional programs through medical benefits provider include support for employee health goals, weight loss goals, gym reimbursement, and smoking cessation • ESRT state-of-the-art fitness centers • Flexible spending accounts • Holiday and paid time off • Comprehensive financial planning services with our 401(k) broker • Tuition assistance •Commuter benefits program


Community Engagement Our buildings are part of our communities, and we are present and actively engaged to make them better places to live and work. Empire State Realty Trust is a fixture in the communities where we operate and we have developed strong partnerships to foster community engagement and leadership. Through our employee volunteerism and philanthropy efforts we can achieve our goal of strong communities and a healthy planet. In 2021, we aim to enhance our employees’ volunteer and community engagement opportunities with organizations they feel passionate about that align with our company’s mission to create healthy and resilient communities. The annual Empire State Building Run-Up challenges runners around the world to race up its famed 86 flights and 1,567 stairs, which some constitute as the ultimate test of endurance. In 2019, the event was sponsored by Turkish Airlines and powered by the Challenged Athletes Foundation (CAF), the official charity of the run-up. As a world leader that helps people with physical challenges lead active and healthy lifestyles, CAF believes that participation in physical activity at any level increases self-esteem, encourages independence, and enhances quality of life. In 2019, approximately 200 runners from around the world participated. The event was canceled in 2020 due to COVID-19.

200 runners from around the world participated in the 2019 Empire State Building Run-Up.

86 flights

1,567 stairs


36,000+ The Empire State Building lights turned blue on October 13, 2020, to highlight more than 36,000 buildings and plants that have earned the EPA’s ENERGY STAR certification.

The Empire State Building lights up 365 days a year, and many of the lightings are directly related to social and charitable causes. The Empire State Building lights turned blue on October 13, 2020, to highlight more than 36,000 buildings and plants that have earned the EPA’s ENERGY STAR certification. In recognition of the role that tenants play in improving energy performance on buildings, we celebrated the launch of the ENERGY STAR Tenant Space program. In addition, we donated to 48 charitable organizations in 2019 and 36 such organizations in 2020, underscoring our commitment to support and improv e the communities where we live and work.




Our goal is to maintain transparent communications with our shareholders. Our Board of Directors makes regular, direct outreach to our investors and actively participates with our Senior Management Team in the oversight of our ESG strategy, risks, and opportunities. BOARD OVERSIGHT OF ESG Because ESG is a critical part of our business strategy, our entire board has responsibility for ESG oversight. In recognition of the significance, attention, and focus that ESG strategy requires, our B oard has delegated specific ESG responsibilities to each of its committees:





Presentations by SVP, Director of Energy, Sustainability and ESG and discussion on reallocation of ESG responsibility among board committees. Discussions about ESG risks with internal audit consultant and management and revised charter to better capture ESG risk responsibility.

Overall responsibility for strategy, including ESG. While the Nominating and Corporate Governance Committee leads recommendations with respect to ESG, the B oard has ultimate decision- making authority. ESG matters from each committee are also referred to the full board as appropriate. As part of its oversight of the company’s ERM program, the committee reviews and discusses the company’s risks and mitigants related to ESG, including environmental risks like climate change. In 2020, we revised the committee title to emphasize the importance of its human capital management oversight duties. The committee oversees the company’s strategies and policies related to human capital management, including with respect to matters such as DE&I, workplace environment and culture, pay equity, and talent attraction and retention.

Audit Committee

Compensation and Human Capital Committee

Discussions about human capital management and determined to revise charter.

Finance Committee

Discussions about our competitive edge in sustainability in relation

The committee considers ESG opportunities and strategy in review and analysis of significant transactions and financings.

to acquisition / redevelopment opportunities and

developing relationships with minority depository institutions as part of broader commitment to supplier diversity. Discussions about ESG strategy and determined to revise charter.

Nominating and Corporate

The committee considers social responsibility, environmental and sustainability matters, and makes recommendations to the board regarding such matters.

Governance Committee


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