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APPENDICES
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
ENVIRONMENTAL
SOCIAL
POLICIES AND TRANSPARENT REPORTING
TENANT MANAGEMENT
IF-RE-410a.1
(1) Percentage of new leases that contain a cost recovery clause for resource efficiency related capital improvements and (2) associated leased floor area, by property subsector
(1) (2) 100% of ESRT’s new leases for commercial and retail tenants contain cost recovery clauses for energy efficiency upgrades that benefit the tenant. This equates to 951,000 rentable square feet of newly leased office and retail space covered by such language in 2023. 0.0% of ESRT’s residential leases contain cost recovery clauses for energy efficiency upgrades that benefit the tenant. (1) Empire State Realty Trust submeters 100% of office and retail tenants for grid electricity consumption across the portfolio. 100% of multifamily tenants are separately metered for gird electricity consumption. (2) ESRT submeters 0.0% of office, retail, and residential tenants for water withdrawal. Tenants are a top priority at ESRT as we create healthy, productive, and sustainable built environments. The investments and adjustments to ESRT’s practices are geared toward achieving quantifiable improvements in energy efficiency, carbon emissions reductions, water efficiency, waste diversion, and healthy buildings. Annual tenant satisfaction surveys are performed portfolio-wide by a third party, in addition to engaging with tenants through townhalls and sustainability focused education seminars, to assess property management and sustainability at ESRT. In tandem with tenants, ESRT also developed customized Tenant Sustainability Programs and initiatives and works to maintain tenant communications through in-person meetings, conversations, outreach, and emails. ESRT’s Tenants Services webpage and Tenant Sustainability Toolkit, located on ESRTs website, provides tenants with further insight into the sustainability efforts being done across the portfolio.
IF-RE-410a.2 Percentage of tenants that are separately metered or submetered for (1) grid electricity consumption and (2) water withdrawals, by property subsector IF-RE-410a.3 Discussion of approach to measuring, incentivizing, and improving sustainability impacts of tenants
CLIMATE CHANGE RESILIENCE
IF-RE-450a.1
Area of properties located in 100-year flood zones, by property subsector
Office: Corporate: High Rise Office: 0% Office Corporate: Mid-Rise Office: 0% Standalone Retail: 0% Residential: High-Rise: 50% (1 out of 2 buildings) Residential: Mid-Rise: 0%
IF-RE-450a.2 Description of climate change
ESRT evaluates exposure to physical climate risks for standing investments and new acquisitions during the due diligence process. ESRT is committed to the identification of climate related risks, minimization of risks through mitigation strategies, and providing a return on investment and through reductions of the economic impacts of climate change across the portfolio. ESRT has developed a Climate Change Adaptation and Resilience policy and Climate Change Risk Assessment Checklist to complete for every property during the due diligence process as well as for standing investments. This assessment includes physical risks such as power interruption, flooding, heatwaves, hurricanes, winter storms, and regulatory risks. ESRT’s climate change asset level requirements include conducting comprehensive risk assessments to identify relevant climate change risks, analyzing climate change risks and their potential impacts, and developing operational plans with guidelines considering flooding, windstorm/hurricanes, and freeze/winter storms. In 2023 an Enterprise Risk Assessment was performed by ESRT’s internal auditor in conjunction with ESRT’s Senior Management Team. The risk assessment program identified mitigation strategies which ESRT currently has in place, including: a formal disaster recovery plan and business continuity plan that has been communicated to employees and tested, disaster recovery, and business continuity through multiple insurers which diversifies the risk basis.
EMPIRE STATE REALTY TRUST: 2023 SUSTAINABILITY REPORT
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