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POLICIES AND TRANSPARENT REPORTING
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
ENVIRONMENTAL
SOCIAL
APPENDICES
Category
Mitigation
SOCIAL RISKS
Physical Security and Terrorism
Due to the high-profile nature of our office buildings, particularly the Empire State Building, we have identified physical security and terrorism as potential social risks. Mitigation strategies employed by ESRT include a dedicated Director of Security at the Empire State Building, formal crisis management plans, in-person and electronic surveillance at all entry points, active shooter training for employees and tenants, and Terrorism Reinsurance Act coverage that covers nuclear, biological, chemical, and radiological weapon attacks. We perform annual indoor air, mildew, mold, and water testing at all buildings to evaluate exposure and risks to human health. All tests are reviewed to ensure that contaminants remain below the most stringent acceptable levels. For any assets that do not meet our performance thresholds, actions are taken to immediately address and remediate issues. We have deployed active bipolar ionization air purification technology at certain properties, which neutralizes 99.92% of viruses 16 and effectively mitigates the harmful impacts of particulate matter from wildfires 17 that may infiltrate buildings as people enter and exit, across over three million square feet of our properties. We continually monitor our own labor practices, including our relationships with unions, for compliance with relevant law and best practice under the guidance of expert outside counsel and advisors. We require all of our partners and suppliers to adhere to our standards as set forth in our Vendor Code of Conduct, which covers compliance with federal, state, and local law, inclusive of human rights and labor standards. We conduct firewall and penetration testing, maintain cybersecurity insurance, hold mandatory employee training on cybersecurity, conduct tabletop exercises, and continually assess new cybersecurity tools. We conduct an Enterprise Risk Assessment under the guidance of a third-party external audit advisor to identify short-, medium-, and long-term transition risks and review and enhance our mitigation strategies. We regularly consult with expert outside counsel and advisors. We participate in advisory boards and committees that inform energy and climate legislation in the regions where we operate, such as the NYC Climate Mobilization Act and LL97. For example, our Chairman and CEO, and our SVP, Director of Energy, Sustainability, and ESG led the NYC Climate Mobilization Act Commercial Buildings Pathways Working Group and participated in the Economic Impact Working Groups and have worked with numerous NYC boards, committees, and technical working groups to define and understand energy and carbon regulation transition risks that could impact our properties. We pilot, invest in, and deploy advanced optimization and machine learning technologies, such as battery storage, renewable energy, lighting and controls, building management systems, equipment, and tenant plug loads and controls. We invest in proven low-carbon and carbon reduction technology and rigorously evaluate those with potential to deliver value to ESRT and our stakeholders. We evaluate risks from abrupt or unexpected changes in energy costs. We enter into long-term contracts with utilities and free market deregulated market providers as a risk mitigation strategy against such changes in pricing and reliability.
Human Health
Human and Labor Rights
Cybersecurity
TRANSITION RISKS
Comprehensive
Policy
Technology
Market
16 https://atmosair.com/wp-content/uploads/2023/07/Microchem_Non-GLP_ASTM_E1053_NG15291_Final_Study_Report.pdf 17 https://www.esrtreit.com/esrt-news/indoor-environmental-quality-maintained-throughout-summers-wildfires/
EMPIRE STATE REALTY TRUST: 2023 SUSTAINABILITY REPORT
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