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POLICIES AND TRANSPARENT REPORTING
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
ENVIRONMENTAL
SOCIAL
APPENDICES
Climate Risk Assessment ESRT identifies, evaluates, and prioritizes key potential physical and transitional climate risks across its portfolio. ESRT proactively models the potential tangible and economic aspects of physical and transitional climate risk and develops specific approaches to mitigate these risks through policies, technologies, Net Zero plan implementation, financial planning, and adaptation. These risks are discussed quarterly by the board’s Audit Committee, Nominating and Corporate Governance Committee, and Sustainability Committee. Physical Risk We perform annual comprehensive risk assessments to identify potential relevant climate change risks with the IPCC Representative Concentration Pathways (RCP) 2.6, 4.5, 6.0, and 8.5 of GHG emission, atmospheric concentrations, and air pollutant emissions. RCP2.6 is representative of a stringent scenario that aims to keep global warming likely below 2˚C above pre-industrial temperatures. 15 We regularly analyze quantitative and qualitative climate change risks and potential impacts to our assets. We have developed an operational plan with guidelines for floods, storm surges, windstorms, wildfires, air quality, hurricanes, extreme weather, and winter storms. In 2023, we completed a third-party risk assessment with First Street Foundation, Risk Factor, to calculate risks for each individual property within our portfolio. Results from these assessments help ESRT identify, prioritize, and plan ahead to mitigate physical climate-related risks. Chronic physical risks for the New York City Metropolitan Area include rising sea levels, storm surges, and extreme temperature fluctuations that could adversely impact the regions where we operate. Transitional Risk ESRT evaluates and implements mitigation actions to address transitional climate risks, which include policy and legislation, specifically climate and energy legislation, carbon mandates, enhanced environmental reporting, disclosure requirements, increasingly stringent building and energy codes, technology, and market risks. ESRT proactively reviews energy and climate legislation in regions where we own assets, including continuous evaluation of compliance status, financial impacts, and strategies to mitigate risk.
15 https://ar5-syr.ipcc.ch/topic_summary.php
EMPIRE STATE REALTY TRUST: 2023 SUSTAINABILITY REPORT
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