APPENDICES
INTRODUCTION
ESG OBJECTIVES AND STRATEGY
ENVIRONMENTAL
SOCIAL
GOVERNANCE
76
Code
Accounting Metric
2022 Disclosure
Management of Tenant Sustainability Impacts 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 1.1 million rentable square feet of newly leased office and retail space covered by such language in 2022. 0.0% of ESRT's multifamily leases contain cost recovery clauses for energy efficiency upgrades that benefit the tenant.
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
(1) ESRT submeters 100% of office and retail tenants for grid electricity consumption across the portfolio. 100% of multifamily tenants are separately metered for grid electricity consumption. (2) ESRT submeters 0.0% of office, retail, and multifamily 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 town halls 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 ESRT’s website, provides tenants with further insight into sustainability efforts across the portfolio.
Climate Change Adaptation IF-RE-450a.1
Area of properties located in 100-year flood zones, by property subsector
There are no ESRT properties located in 100-year flood zones.
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 ROI 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 for every property during the due diligence process as well as for standing investments. This assessment includes physical risks such as power interruption, flooding, heat waves, hurricanes, and winter storms as well as 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, wind storm/hurricanes, and freezes/winter storms. In 2022, 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 that ESRT currently has in place, including a formal disaster recovery plan and business continuity plan that have been communicated to employees and tested as well as disaster recovery and business continuity through multiple insurers, which diversifies the risk basis.
EMPIRE STATE REALTY TRUST: 2022 SUSTAINABILITY REPORT
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