GOVERNANCE
INTRODUCTION
ESG OBJECTIVES AND STRATEGY
ENVIRONMENTAL
SOCIAL
APPENDICES
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Governance begins with our commitment to manage our business responsibly in a transparent manner. ESRT builds trust with our stakeholders with our integrity and accountability and promotes forthright, ethical policies and practices within our entire organization and across our supply chain. Our comprehensive and thorough disclosure and reporting reflects the values that are embedded in our culture and inform the way we operate on a daily basis. Board and Management Oversight of ESG As ESG is a critical part of our business strategy, our entire board has responsibility for ESG oversight. Recognizing the significance, attention, and focus that ESG strategy requires, our board has delegated specific ESG responsibilities to each of its committees as specified in the committee charters:
GOVERNING BODY SUSTAINABILITY-RELATED RESPONSIBILITIES
2022 SUSTAINABILITY-RELATED DISCUSSIONS
Board
While the Nominating and Corporate Governance Committee makes recommendations with respect to ESG matters, the board has ultimate decision- making authority. ESG matters that arise from other committees are also referred to the full board as appropriate. As part of its oversight of the company’s enterprise risk management (ERM) program, the committee reviews and discusses the company’s risks and mitigants related to ESG, including environmental risks such as climate-related risks and human and labor right risks. The committee is responsible for overseeing the company’s strategies and policies related to human capital management, including matters such as DEI, health and safety, workplace environment and culture, pay equity, and talent attraction and retention.
Matters referred by committees per discussions noted below. Our entire board is on the Nominating and Corporate Governance Committee and receives the presentation noted below from our SVP, Director of Energy, Sustainability, and ESG and Chief People Officer on topics such as ESG certifications and ratings, employee engagement, community outreach, and the sustainability report. Regular discussions regarding ESG risks with internal audit consultant, such as review of risk and mitigation strategies to address emissions disclosure and reporting, LL97, and physical and transitional climate-related risks. Tabletop exercise with external consultant on cybersecurity risks.
Audit Committee
Compensation and Human Capital Committee
Regular discussions regarding human capital management, talent attraction and retention, health and safety, DEI, and compensation and benefits.
Finance Committee
The committee considers ESG opportunities and strategy in reviewing and analyzing significant transactions and financings.
Regular discussions regarding review of economic implications of environmental risk and potential for enhancements to energy efficiency and indoor environmental quality within portfolio and in acquisition targets. Presentations by SVP, Director of Energy, Sustainability, and ESG and Chief People Officer on topics such as ESG certifications and ratings, employee engagement, community outreach, and sustainability report.
Nominating and Corporate Governance Committee
The committee is responsible for considering social responsibility and environmental and sustainability matters and making recommendations to the board regarding such matters.
Our comprehensive, all-department approach to ESG is supported by the employee-led Sustainability Committee, led by our SVP, Director of Energy, Sustainability, and ESG and executed by the property management teams across our portfolio. The Sustainability Committee meets quarterly, and the standing members include our Chairman, President and CEO, COO, and CFO, Director of Leasing, property construction and operations executives, and members of the legal, marketing, and investor relations teams. The committee’s agenda has evolved over time to reflect our company’s proactive leadership and commitment to results.
EMPIRE STATE REALTY TRUST: 2022 SUSTAINABILITY REPORT
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