ENVIRONMENTAL
INTRODUCTION
ESG OBJECTIVES AND STRATEGY
SOCIAL
GOVERNANCE
APPENDICES
41
Our results are presented in five distinct packages, each with a different impact on emissions and financial scenarios. Each package includes a specific set of incremental energy and emissions conservation measures that will be implemented in a building over a 10 to 15-year period. Our analysis requires the consideration of embodied carbon. McKinsey & Company states embodied carbon includes all GHG emissions associated with building construction, which includes those that result from the extraction, transportation, manufacturing, and installation of building materials on site as well as operational and end-of-life emissions. 9 Equipment is reused, retrofitted, and retro commissioned until it is no longer useful, after which it is replaced with the most efficient system for optimal technoeconomic balance between emissions reduction and internal rate of return. Measures will also be phased in to avoid disruptions to tenant comfort and ensure compliance with lease terms. We modeled two distinct scenarios; the first keeps New York City’s grid “static” as it was in 2019, while the second adjusts grid emissions to align with the CLCPA. Static grid packages reduced emissions between 66.3% and 78.1% from 2007 levels. The CLCPA scenario packages ranged from 84.4% to 92.7% reduction from the 2007 baseline year. The CO 2 max packages represent the maximum possible energy and emissions reduction based on what is technically possible. The packages up to this point represent incremental additional projects and measures to achieve reductions, along with the associated projected economic results.
ESRT is on track to achieve our goal of net zero at the Empire State Building by 2030 and the commercial portfolio by 2035 through an 80% operational carbon emissions reduction. This will be achieved through a combination of energy efficiency measures, a more renewably sourced grid, and a 20% offset with off-site clean energy generation and strategic preservation of valuable carbon sequestration projects such as the 18 Reserves Project we announced in partnership with ACT in 2022.
PROJECTED CO 2 EMISSIONS STATIC 2019 GRID SCENARIO Packages range from 66.3% to 78.1% reduction in total emissions from 2007 benchmark year.
CO 2 e Emissions per Year (tCO 2 e/year)
45,000
40,000
35,000
30,000
25,000
55.7%
20,000
66.3%
68.3%
70.3%
15,000
73.3%
78.1%
10,000
5,000
0
2019 Model 2007 + Adjustments
NPV Max
CO 2 Light
CO 2 Mid
CO 2 High
CO 2 Max
CLCPA GRID SCENARIO Packages range from 84.8% to 92.7% reduction in total emissions from 2007 benchmark year.
CO 2 e Emissions per Year (tCO 2 e/year)
45,000
40,000
ESRT’s definition for a carbon net zero existing building is that, by a drastic reduction in building operational emissions by at least 80%, in partnership with a renewably sourced grid aligned with CLCPA, and offset residual emissions through clean energy generation, RECs, and offsets, net annual building operational carbon emissions are equal to zero.
35,000
30,000
25,000
55.7%
20,000
15,000
84.8%
86.2%
10,000
88.3%
91.2%
92.7%
5,000
0
2019 Model 2007 + Adjustments
NPV Max
CO 2 Light
CO 2 Mid
CO 2 High
CO 2 Max
Broadcast
Office Lights Office Equip
IT Equip DHW
Retail Equip Exterior Lights
Space Heat Space Cool
Cooling Towers CHW/CW Pumps
HVAC Fans DW Pumps
Observatory Equip Elevator Load
2007 + Adjustments
9 Data to the rescue: Embodied carbon in buildings and the urgency of now | McKinsey
EMPIRE STATE REALTY TRUST: 2022 SUSTAINABILITY REPORT
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