2024 CORPORATE SUSTAINABILITY REPORT
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
TABLE OF CONTENTS
INTRODUCTION 4 Letter from Our Leaders 5 Overview 6 Sustainability Awards and Achievements
SUSTAINABILITY OBJECTIVES AND STRATEGY 8 Integrated Building Performance 9 Sustainability Strategies and Components 10 Goals for Quantifiable Improvement 11 Industry Participation 12 Leadership in Innovation 13 Materiality and
ENVIRONMENTAL 16 Environmental Impact Goals and Reporting 19 Energy 23 Roadmap to Building Efficiency 24 Water 26 Waste 28 High Performance Healthy Buildings 30 Biodiversity 32 Sustainability Guidelines and Policies 33 Tenant Engagement 35 Data-Driven Performance 36 Technology and Innovation 37 ESRT Version 2.0
CORPORATE CITIZENSHIP 42 Corporate Citizenship 43 ESRT Focus Areas 44 Colleagues 45 Communication 46 Benefits 47 Succession Planning, Learning, and Professional Development 48 Tenants 49 Amenities and the Campus 50 Community Engagement
GOVERNANCE AND TRANSPARENT REPORTING 55 Board and Management Oversight 56 Transparent Disclosure 57 Risk and Crisis Management 58 Resilience 60 Green Finance 61 Ethics and Compliance 62 Human and Labor Rights 62 Occupational Health and Safety
APPENDICES 64 About this Report 64 Technology and Innovation Partners 65 GRI Content Index 67 ISSB Index 69 SASB Index 74 Data Tables 78 Forward-Looking Statements 79 Third-Party Verification
Stakeholder Engagement
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2024 SUSTAINABILITY REPORT
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
INTRODUCTION
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2024 SUSTAINABILITY REPORT
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
LETTER FROM OUR LEADERS
buildings and indoor environmental quality (IEQ) to boost tenant and colleague well-being. We continue to pilot new and innovative technologies to position our assets to exceed global IEQ health and wellness standards. We drive inclusion and accountability with safety and respect for every ESRT community member. ESRT continues to perform, set new objectives, and achieve them, and do all of this with focus on our priorities. We hope you enjoy this report as much as we enjoy the challenge and accomplishment it represents.
We are pleased to share our 2024 Corporate Sustainability Report and present another year of achievement, leadership, and commitment to our shareholders, tenants, team, and community. ESRT’s priorities are to lease space, sell tickets to the Empire State Building Observatory, maintain our balance sheet, achieve our sustainability goals, and to grow our business — all to build value for our investors. Sustainability is how we do what we do, as well as a distinguishing feature of our company that creates and preserves value. The Global Real Estate Sustainability Benchmark (GRESB) ranked ESRT number one of all Listed Companies in the Americas for the second consecutive year and achieved top GRESB 5 Star rating. ESRT has led and continues to lead in sustainable and healthy building performance. When we add new properties to our portfolio, part of our underwriting analysis is how we will apply our sustainability standards, as well as our corporate social responsibility, and transparent reporting and disclosure. We work on each of our properties to apply our proven processes to make decisions based on data and science, implement measures to drive positive performance improvement, and deliver measurable returns on investment. 100% of our NYC commercial portfolio and 92% of our entire portfolio is ENERGY STAR certified. ESRT achieved ENERGY STAR Partner of the Year Sustained Excellence for the second consecutive year. We proactively engage with our tenants to align with our sustainability objectives and aid in the measurement, reporting, and achievement of their sustainability goals.
In April 2022, we published the Empire Building Playbook: An Owner’s Guide to Low Carbon Retrofits (the Playbook) in partnership with the New York State Energy Research and Development Authority (NYSERDA). In 2024, the Playbook was expanded to further demonstrate the business case for energy efficiency at large commercial and multifamily buildings and to enhance scalability and educational tools so that more owners can leverage our tools and lessons. As the first commercial portfolio in the Americas to achieve and maintain the International WELL Building Institute’s (IWBI) WELL Health-Safety Rating across 100% of our portfolio and one of the first to have our rating renewed four times, we are dedicated to the advancement of scientifically validated approaches to deliver healthy
Onward and upward.
Anthony E. Malkin Chairman and CEO
Christina Chiu President
Dana Robbins Schneider SVP, Director of Energy and Sustainability
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2024 SUSTAINABILITY REPORT
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
OVERVIEW Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused real estate investment trust (REIT) that owns and operates a portfolio of modernized, amenitized, and strategically positioned office, retail, and multifamily assets. ESRT’s flagship Empire State Building, the “World’s Most Famous Building,” includes its Observatory — the #1 Attraction in the World in 2024 and in the U.S. for three consecutive years by Tripadvisor’s Travelers’ Choice Awards: Best of the Best Things to Do. As of December 31, 2024, ESRT’s portfolio comprises approximately 7.8 million rentable square feet of office space, 0.7 million rentable square feet of retail space, and 732 multifamily units. ESRT’s sustainability strategy is founded on science- and data-based initiatives that mitigate the environmental impacts and risks of our buildings. In the execution of our strategy, we prioritize accountability and financial performance, as well as the health and well-being of ESRT’s colleagues, tenants, and the communities where we operate. Our efforts and our results heighten our properties’ competitive position in the marketplace and protect and enhance stakeholder value.
ESRT is a global leader in proven technical and economic solutions for energy efficiency. We are a model for the successful implementation of comprehensive, innovative, and effective sustainability policies, stakeholder engagement, and transparent reporting. We have reduced energy consumption by 51% and emissions by 59% at the Empire State Building since 2007. Across our commercial portfolio we have reduced energy consumption by 41% and emissions by 49% since 2009. Based on our proactive efforts, we anticipate full compliance with LL97 through 2034. In partnership with NYSERDA and supported by the Clinton Global Initiative, we authored The Empire Building Playbook: An Owner’s Guide to Low Carbon Retrofits. This free online playbook charts a path for landlords, tenants, and service providers to target energy efficiency with a framework for measurement and verification (M&V) on energy and economic payback performance, based on our groundbreaking work at the Empire State Building and across our portfolio. Our expertise and commitment in these areas provide the foundation to deliver sustainable and healthy buildings across our portfolio and to share best practices to drive positive change across NYC and globally.
COMPANY PRIORITIES
Identify Growth Opportunities
Lease Space
Manage Balance Sheet
Sell Observatory Tickets
Achieve Sustainability Goals
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2024 SUSTAINABILITY REPORT
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
SUSTAINABILITY AWARDS AND ACHIEVEMENTS
PUBLISHED THE EMPIRE BUILDING PLAYBOOK
Empire Building Challenge Partner since 2021 One of the first to commit
Ranked First of all Listed Companies in the Americas in 2023 and 2024
Partner of the Year Sustained Excellence 2023–2024 Partner of the Year 2020–2022
Green Lease Leader Platinum recognition 2021-2024
Fitwel Champion 86% of NYC Portfolio
100% of portfolio is WELL Health-Safety Rated First in Americas
Better Building Partner since 2018 2023 Project and Practice Award Winner
Selected to participate in LEEDv5 beta program Empire State Building LEEDv4.1 Gold
Certified Great Place to Work 2023 and 2024
Ranked as one of Newsweek’s 2024 Most Responsible Companies
Validated targets
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2024 SUSTAINABILITY REPORT
INTRODUCTION
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
SUSTAINABILITY OBJECTIVES AND STRATEGY
SUSTAINABILITY OBJECTIVES AND STRATEGY
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2024 SUSTAINABILITY REPORT
INTRODUCTION
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
SUSTAINABILITY OBJECTIVES AND STRATEGY
INTEGRATED BUILDING PERFORMANCE
We integrate sustainability into every aspect of our business. Our groundbreaking work delivers long-term value for our stakeholders, tenants, colleagues, and the communities where we live and work. Through our design standards, operational practices, and targeted energy efficiency roadmap, ESRT is the industry-leading model for energy efficiency and how to achieve sustainability goals.
ACQUISITIONS: RESTORATION AND REUSE ESRT assesses environmental sustainability across the full lifecycle of our buildings. We apply our sustainability approach when we evaluate potential acquisitions and investments. Guided by impact, risk, and resource conservation, we retrofit and operate our buildings to reduce energy usage, emissions, water consumption, and waste generation. We consistently consider the modernization of existing buildings to advanced performance levels.
DESIGN AND CONSTRUCTION
ESRT’s design and construction of new spaces and renovations provide significant opportunities to drive energy efficiency, sustainability, and healthy spaces. ESRT has implemented rigorous standards for sustainability and indoor environmental quality (IEQ) during the construction and design phase, as outlined in our High Performance Design and Construction Guidelines. ESRT creates spaces that are designed to support the health, productivity, and well-being of our tenants and colleagues targeted to align with the most advanced international standards, which include LEEDv4.1, WELLv2, and WELL Health-Safety.
PROPERTY MANAGEMENT Asset operations are an active part of ESRT’s commitment to provide top-tier healthy and sustainable spaces for our tenants. Our property management and engineering teams work together to maintain ESRT’s Sustainability Guidelines, which were designed to drive consistent, exceptional performance at each property. These standards include portfolio-level goals and priorities along with asset-level standards, resources, and responsibilities. Our property managers host annual town halls that highlight each building’s energy performance, sustainability initiatives, and resources for our tenants to implement within their own spaces.
LEASING AND TENANTS ESRT works with tenants at every stage of our relationship to integrate shared priorities and customize initiatives that support their sustainability goals and drive building performance. ESRT leases include green lease clauses, which require transparent energy, water, waste, and emissions data to be tracked and reported, and tenant fit-out requirements. ESRT received the highest recognition as a Platinum-certified Green Lease Leader, and in 2024, we worked with more than 150 tenants to help achieve their sustainability and energy performance goals.
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2024 SUSTAINABILITY REPORT
SUSTAINABILITY OBJECTIVES AND STRATEGY
INTRODUCTION
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
SUSTAINABILITY STRATEGIES AND COMPONENTS
GOALS Our goals and targets are ambitious and supported by independently verified data. We focus on five categories for our portfolio: energy, water, waste, healthy buildings, and green building certifications. We use a 2009 baseline year for our portfolio and 2007 for the Empire State Building to ensure we meet or exceed our company targets, such as with the Science Based Targets Initiative (SBTi), U.S. Department of Energy’s Better Buildings Challenge, and NYSERDA Empire Building Challenge.
DATA DRIVEN PERFORMANCE ESRT continuously measures, manages, and evaluates performance against our targets and publishes this data annually. We use data management platforms, technologies, calibrated models, and third-party verification to provide advanced analytics and insights that inform and improve our performance. We partner with a leading energy analysis firm to review energy supply, demand, and pricing to plan accordingly for energy supply procurement and current and future renewable sources. CERTIFICATIONS Certifications for our sustainability work include a GRESB 5-Star rating; the highest GRESB score of all Listed Companies in the Americas; the highest GRESB Disclosure Score; the highest GRESB scores in leadership, policies, reporting, stakeholder engagement, risk assessment, targets, tenants and community, building certifications, and data monitoring and review categories; ENERGY STAR Partner of the Year: Sustained Excellence for two consecutive years; WELL Health-Safety Rating; and Fitwel Champion. Since 2011, the Empire State Building has been LEED EBOM Gold certified and was selected to participate in the LEED EBOMv5 beta pilot due to ESRT’s leadership in energy and environmental performance. POLICIES AND OVERSIGHT Our Board of Directors oversees our sustainability strategy, which is developed and executed by our Sustainability Committee comprised of senior officers and led by our head of energy and sustainability. Our sustainability policies and codes of conduct apply to our colleagues, tenants, and vendors. We carefully develop and continuously refine our policies and standards to guide impactful action and ensure performance and progress against our targeted goals to align with and exceed industry best practice.
VERIFIED DISCLOSURE We strive to serve as a model for the successful implementation of comprehensive, innovative, and effective sustainability policies, stakeholder engagement, and transparent reporting. ESRT reports in alignment with the Global Reporting Initiative (GRI), the International Sustainability Standards Board (ISSB), Sustainability Accounting Board (SASB), and the UN Sustainable Development Goals (SDGs). ESRT’s emission reduction targets were validated by SBTi. We report our environmental data according to the World Resources Institute’s (WRI) GHG Protocols.
TENANT ENGAGEMENT We proactively support our tenants to measure, report, and achieve their sustainability targets through data, actionable recommendations for energy, emissions, water, and waste reduction, ROI-based design and guidance, and an active partnership in their work. When our tenants choose an ESRT building, it helps them meet their own sustainability goals and comprehensive plans with support from our in-house team and Sustainability Toolkit.
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2024 SUSTAINABILITY REPORT
SUSTAINABILITY OBJECTIVES AND STRATEGY
INTRODUCTION
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
GOALS FOR QUANTIFIABLE IMPROVEMENT
ENERGY
WATER
WASTE
• 30% reduction in water usage by 2035 • 2% reduction in water usage year over year • Maintain real-time water metering and software across the portfolio
• 50% reduction in energy use intensity by 2035 across portfolio • 20% reduction in energy use intensity by 2030 as part of our participation in the EPA’s Better Building Challenge from 2018 baseline year • 100% NYC tenant spaces sub-metered
• 75% waste diversion rate by 2035 • 5% reduction in waste generation year over year • Perform waste audits at 100% of buildings annually • Maintain organics composting program across portfolio
HEALTHY BUILDINGS
CORPORATE CITIZENSHIP
• Focus on colleague total well-being across physical, mental, and financial dimensions • Engage and enhance our community through meaningful volunteerism and educational initiatives • Monitor and enhance supply chain engagement
• Maintain the highest standards for IEQ in our buildings to improve tenant and resident health and well-being • Annual air and water quality testing to meet rigorous standards of WELLv2, Fitwel, and LEEDv4.1 • IEQ real-time sensor rollout underway
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2024 SUSTAINABILITY REPORT
SUSTAINABILITY OBJECTIVES AND STRATEGY
INTRODUCTION
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
INDUSTRY PARTICIPATION
LL97 Advisory Board and Commercial Buildings Working Group Co-Chair
Board Member and Sustainability Policy Advisory Committee Chair
Sustainability Committee
ESRT openly shares our advanced sustainability expertise through industry cooperation, policy engagement, and collaborative implementation of effective practices. We actively engage in industry organizations, working groups, partnerships, and initiatives to gather and share information that will effectively shape sustainability-related industry standards and government policy. ESRT’s Chairman and CEO, Tony Malkin, is a board member of the Real Estate Roundtable and Chair of its Sustainability Policy Advisory Committee, and served as a member of the Climate Mobilization Advisory Board of the New York City Department of Buildings, the Urban Land Institute (ULI), the Board of Governors of the Real Estate Board of New York (REBNY), and the Partnership for New York City’s Innovation Council.
SVP, Director of Energy and Sustainability, Dana Robbins Schneider, serves on the Mayor’s Sustainability Advisory Board, Real Estate Roundtable Sustainable Policy Advisory Committee, Urban Green Board of Directors, ULI Think Tank Committee, and REBNY Sustainability Committee. She has also been a Leadership in Energy and Environmental Design (LEED) Fellow since 2016. Dana served on the LL97 Technical Pathways for Commercial Buildings and Economic Working Groups and served maximum terms on the USGBC LEED Steering Committee and USGBC Technical Advisory Group for IEQ.
Tenant Energy Optimization Program Think Tank New York Bureau of Subject Matter Experts
Real Estate Sustainability Committee
Partner
Commitment Maker
Steering Committee IEQ Technical Advisory Group Selected for v5 beta for ESB
Board of Directors
NYC SUSTAINABILITY ADVISORY BOARD ESRT’s SVP, Director of Energy and Sustainability, Dana Robbins Schneider, was appointed to New York City’s Sustainability Advisory Board in 2022 to help inform the city’s PlaNYC strategy. The board is made up of 26 members who advise the city on a range of potential climate initiatives. Achievements over the past year include the release of “Getting 97 Done” and the launch of “97 in Your District,” a collaborative training series. “Getting 97 Done” is a comprehensive plan to reduce energy usage from large buildings with technical and financial assistance. ESRT is the only REIT represented on the board. “I share the knowledge I have been privileged to gain in 25 years in this field to drive continued partnership and effective policy, informed by successful practice, to deliver on Mayor Adams’s vision for a sustainable New York City,” Dana said of her appointment. “My goal is to prove the technical and economic case to decarbonize the built environment and deliver a healthy city, innovation, and job creation for all New Yorkers.”
DOE’s Better Climate Challenge and Better Buildings Initiative
Judge
Member since 2011
Innovator
Mayor’s Sustainability Advisory Board
Commitment Maker
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2024 SUSTAINABILITY REPORT
SUSTAINABILITY OBJECTIVES AND STRATEGY
INTRODUCTION
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
LEADERSHIP IN INNOVATION
ESRT was an original participant in the NYSERDA Empire Building Challenge, which supports dialogue between real estate, engineering, and technology providers to identify and implement innovative solutions that reduce energy usage in high-rise buildings. ESRT’s Empire Building Challenge projects focus on: • Advanced building management system (BMS)
ESRT’s thought leadership explores new tactics and technologies in the real estate market to provide data for decisions and a blueprint for action. We routinely and methodically assess progress toward our objectives. We leverage a variety of technologies, automation platforms, and real-time data to gain a comprehensive understanding of consumption and performance, identify opportunities for improvement, and validate the impact of measures we implement. Our portfolio is a dynamic living laboratory that enables us to explore technologies that will propel our industry forward. We manage risk in our portfolio through the implementation of physical and operational resilience techniques in each building, and where possible, we amplify and distribute that information in an open-source manner so that others can benefit from our experience.
ESRT was the first company to be awarded the newly updated NYSERDA RTEM+ incentive in 2022 to support the advanced management and reduction of tenant energy use through cutting-edge strategies and initiatives. In 2024, ESRT received incentives from Con Edison’s Clean Heat Statewide Heat Pump Program to advance the adoption of efficient electric heat pump systems within our buildings and partnered with NYSERDA to secure an incentive to help fund our groundbreaking geothermal study at the Empire State Building.
upgrades and optimization • Energy recovery systems • Steam reduction technologies
• Partial electrification through water- and air-source heat pumps for heating and cooling and pilot heat pump systems for domestic hot water
EMPIRE BUILDING PLAYBOOK In April 2022, we published the Empire Building Playbook: An Owner’s Guide to Low Carbon Retrofits . Co-developed with NYSERDA and supported by the Clinton Global Initiative, the innovative guide outlines the step-by-step process for existing commercial buildings to develop a pathway to energy reduction with positive financial returns. Based on insights and successes gained through real-life case studies of large, complex buildings, the resource is openly available online. In 2024, ESRT and NYSERDA expanded the Empire Building Playbook and launched The Retrofit Playbook for Large Buildings to demonstrate further the business case for energy efficiency at large commercial and multifamily buildings and to enhance scalability and educational tools so that more owners can leverage our tools and lessons. To scale this model, we convened other leading multifamily owners in New York City along with a manufacturer’s consortium to partner on necessary development and scale of technologies.
“These partnerships between technology innovators and the state’s real estate leaders will advance scalable decarbonization solutions that reduce emissions from high- rise buildings while growing the clean energy economy.”
“
Doreen M. Harris NYSERDA President and CEO
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2024 SUSTAINABILITY REPORT
SUSTAINABILITY OBJECTIVES AND STRATEGY
INTRODUCTION
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
MATERIALITY AND STAKEHOLDER ENGAGEMENT
In 2024, we performed a materiality assessment under the Corporate Sustainability Reporting Directive (CSRD) framework with the assistance of a third-party provider. The materiality assessment is aligned with ISSB and SASB disclosure topics to ensure that stakeholder expectations are addressed. We perform such assessment every three years. A double materiality assessment was performed to examine how sustainable factors affect the financial performance and position of ESRT and how ESRT operations affect the environment and society in general. The assessment informs our sustainability strategy through the identification of sustainability matters that are material to us from an impact and financial perspective.
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2024 SUSTAINABILITY REPORT
SUSTAINABILITY OBJECTIVES AND STRATEGY
INTRODUCTION
ENVIRONMENTAL
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
OBSERVATIONS FROM 2024 MATERIALITY ASSESSMENT
Stakeholders identified the below ten topics as the most material topics to ESRT’s sustainability strategy. This report details our strategy and initiatives to address each of these key points.
6
1
3
10
4
5
2
4
3
1
5
2
6
3
10
9
1
6
6
8
1
4
7
3
5
8
5
4
2
2
4
3
5
IMPACT
IMPACT
ENVIRONMENTAL 1 Mass Transportation 2 Biodiversity
CORPORATE CITIZENSHIP 1 Community Engagement 2 Employee Compensation and Benefits 3 Health and Well-Being 4 IEQ 5 Inclusion 6 Occupational Health and Safety 7 Training and Education
GOVERNANCE 1 Business Ethics 2 Executive and Board Accountability 3 Compensation Linked to Sustainability Performance 4 Data Privacy and Cybersecurity 5 Stakeholder Engagement 6 Transparency and Reporting
3 Energy Efficiency 4 Renewable Energy 5 GHG Emissions 6 Sustainability Certifications 7 Environmental Purchasing Practices 8 Waste Diversion and Reduction 9 Water Conservation 10 Climate-Related Physical and Transitional Risks
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2024 SUSTAINABILITY REPORT
ENVIRONMENTAL
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
ENVIRONMENTAL
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2024 SUSTAINABILITY REPORT
ENVIRONMENTAL
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
ENVIRONMENTAL IMPACT GOALS AND REPORTING In the U.S., buildings where people live, work, shop and are educated, healed, and governed consume approximately 40% of energy and 74% of the electricity produced annually. 1 At ESRT, we define and act upon building performance standards to drive global and local energy reduction, improve colleague and occupant health and productivity, bolster our competitive position, and mitigate risk. We are committed to lead at city, state, national, and global levels, and our work supports this leadership. In 2024, ESRT conducted an in-depth goals and targets exercise to ensure that our objectives were ambitious, supported by independently verified, science-based data, and focused on returns and business results. We focused on six categories for our portfolio: energy, emissions, water, waste, health and well-being, and green building certifications. ESRT submits to GRESB annually and is globally recognized with the highest scores in leadership, policy, reporting, stakeholder engagement, targets, tenants and community, data monitoring and review, and building certification categories. We use 2009 as a baseline year for our entire portfolio and 2007 for the Empire State Building and ensure that our goals meet or exceed our existing commitments. Our reporting boundary includes 19 properties owned and controlled by ESRT for the full calendar year of 2024.
ENERGY
• Target 50% energy use intensity reduction by 2035 • Target 20% energy use intensity reduction by 2030 as part of our participation in the EPA’s Better Building Challenge from a 2018 baseline year • 100% of tenants submetered
Energy and Atmosphere Ensure access to affordable, reliable, sustainable, and modern energy for all
Goal 50% site energy use reduction by 2035
2024 Progress: On Track
ENERGY USE INTENSITY 2 (kBtu/ft 2 )
99.0
58.4 56.2
53.5
49.5
2009
2022
2035
2024
2023
1 https://www.energy.gov/topics/buildings-energy-efficiency 2 Like-for-like metrics represents ESRT’s NYC commercial office properties owned for the full calendar years.
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ENVIRONMENTAL
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
GREENHOUSE GAS EMISSIONS
• Target 80% operational emissions reduction at the Empire State Building by 2030 and across the portfolio by 2035 provided grid reductions occur in this time frame and as justified by economic results • Maintain carbon neutrality across portfolio • Meet the New York State Empire Building Challenge • Achieve validated SBTi targets
Physical and Transitional Risk Mitigation Take action to mitigate physical and transitional risk and its impacts
Goal 80% reduction by 2030 for the Empire State Building and by 2035 for portfolio
2024 Progress: On Track
GREENHOUSE GAS EMISSIONS INTENSITY 3 (kgCO 2 e/ft 2 )
5.8
5.8
5.1
4.4
1.2
2009
2022
2023
2024
2035
WATER
• Target 30% water intensity usage reduction by 2035 • Target 2% water usage reduction each year • Maintain real-time water metering and software across portfolio
Clean Water and Sanitization Ensure availability and sustainable management of water and sanitation for all
Goal 30% reduction in water intensity by 2035
2024 Progress: On Track WATER USE INTENSITY 3 (kgal/ft 2 )
0.196
0.153
0.151
0.148
0.137
2009
2022
2023
2024
2035
WASTE
• Target 75% waste diversion rate by 2035 • Target 50% waste diversion rate by 2027 • Target 5% waste generation reduction annually • Perform waste audits at all commercial buildings quarterly • Maintain building-wide organics composting program across portfolio
Responsible Consumption and Production Ensure sustainable consumption and production patterns
Goal 75% waste diversion rate by 2035
2024 Progress: On Track WASTE DIVERSION 4
75%
44%
39%
37%
2022
2023
2024
2035
3 Like-for-like metrics represents ESRT’s NYC commercial office properties owned for the full calendar years. 4 Like-for-like metrics represents waste generation associated with ESRT’s commercial office and multifamily portfolio that were owned for the full calendar years.
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ENVIRONMENTAL
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
HEALTHY BUILDINGS
• Achieve WELL Health-Safety Rating for 100% of portfolio annually
Health and Well-Being Ensure healthy lives and promote well-being for all ages
Goal 100% of portfolio WELL Health‑Safety Rated
2024 Progress: Achieved 100% of portfolio WELL Health-Safety Rated
• Perform comprehensive annual indoor air and water quality testing at all properties that meet or exceed LEEDv4 and WELLv2 standards • Install MERV 13 filters in 100% of ESRT units • ASHRAE 62.1 or better ventilation for the whole portfolio • Comprehensive industry-leading High Performance Sustainability Guidelines for all tenant spaces • Maintain Fitwel Champion accreditation
Goal 75% of portfolio’s square footage Fitwel certified by 2025
2024 Progress: Achieved 82% of portfolio’s square footage Fitwel certified
GREEN BUILDING CERTIFICATIONS
• All eligible buildings are ENERGY STAR certified • Empire State Building LEED Gold certified since 2011 • Participant in USGBC LEED EBOMv5 beta study • Selected as member of NYC Mayor’s Sustainability Advisory Board and PlaNYC
Sustainable Cities and Communities
Goal 100%
2024 Progress: Achieved 100%
Make cities and communities safe, resilient, and sustainable
of NYC commercial portfolio ENERGY STAR certified
of NYC commercial portfolio ENERGY STAR certified
Goal 85% of portfolio ENERGY STAR certified
2024 Progress: Achieved 93% of portfolio ENERGY STAR certified
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2024 SUSTAINABILITY REPORT
ENVIRONMENTAL
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
ENERGY PERFORMANCE
2024 ENERGY CONSUMPTION DISTRIBUTION 5 (MWh)
ENERGY REDUCTION PROJECTS IN 2024 • Building Management System (BMS) advanced upgrades across portfolio • ASHRAE Guideline 36 high performance controls sequence for optimal performance • Master Systems Integrator (MSI) energy analytics and optimization development and implementation across portfolio • Tenant spaces designed and constructed to ESRT 2.0 efficient standards, including variable refrigerant flow (VRF), energy recovery ventilator (ERV), and heat pump source technologies • Heat exchanger installations at Empire State Building • Heat pump installation underway at Empire State Building, 250 West 57th Street, and 111 West 33rd Street as end of life chiller replacement projects
decrease in energy consumption compared to 2023
9.6%
100% of portfolio electricity has been offset through the purchase of Green-e certified wind power RECs. 100% of non-electric energy usage has been offset through the preservation of 9,000 acres of biodiverse forest managed by the U.S. Department of Forestry. We focus our efforts on ROI-driven energy-efficiency strategies, cutting-edge technology, and advanced analytics to achieve portfolio-wide quantifiable performance improvements.
Steam: 33,376 Commercial: 33,376 Multifamily: 0
Electricity: 90,883 Commercial: 85,399 Multifamily: 5,484
148,965 MWh
Fuel: 24,706 Commercial: 15,360 Multifamily: 9,346
LIKE-FOR-LIKE ENERGY USE INTENSITY 5 (kBtu/ft 2 ) NYC Commercial Office
58.4
56.2
55.6
53.5
2021
2022
2023
2024
5 Occupancy increased by 16.6% at the Empire State Building and 12.9% across the commercial portfolio year on year in 2024 compared to 2023. The NOAA Central Park NYC data center reported Heating Degree Days (HDDs) increased by 5% and Cooling Degree Days (CDDs) increased by 10% from 2023 to 2024. This increase in occupancy, HDDs, and CDDs contributes to increased energy and water usage and emissions. The consumption data above represents the utility usage of ESRT’s commercial and multifamily portfolio that was owned for the full calendar year 2024. Data is absolute and is not normalized for weather, occupancy, tenant typology, or other variables that impact utility usage apart from efficiency initiatives. Like-for-like metrics represent ESRT’s NYC commercial office properties owned for the full calendar years of 2021 to 2024.
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2024 SUSTAINABILITY REPORT
ENVIRONMENTAL
INTRODUCTION
SUSTAINABILITY OBJECTIVES AND STRATEGY
CORPORATE CITIZENSHIP
GOVERNANCE AND TRANSPARENT REPORTING
APPENDICES
PERFORMANCE EVALUATION We perform energy audits, retro- commissioning, and measurement and verification to monitor and trend the performance of our energy reduction measures. Over the past five years, 100% of our properties have conducted energy audits. Our energy audits are Investment Grade Audits that exceed the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Level 4 guidelines, which are the basis of our ESRT 2.0 roadmaps for each building.
REAL-TIME ENERGY MANAGEMENT IMPLEMENTATION Real-time energy management (RTEM) allows us to realize cost and energy savings opportunities. We collaborate with NYSERDA to implement RTEM incentives for controls upgrades, chiller plant optimization, tenant energy management, tenant air handling unit efficiency, advanced lighting controls tied into the BMS, plug load monitoring and controls, and ongoing services that use predictive analysis and diagnostics such as continuous digital commissioning.
PEAK DEMAND REDUCTION AND GRID RESILIENCE IMPROVEMENT 100% of our portfolio participates in Demand Response and demand management programs. Demand Response programs reduce our energy consumption and costs and alleviate pressure on our electric grid to prevent blackouts and brownouts and minimize the use of inefficient peaker plants. 100% of our electric usage comes from the grid.
100% of our NYC commercial portfolio and 93% of our entire portfolio are ENERGY STAR certified. ESRT earned the ENERGY STAR Partner of the Year Sustained Excellence award for the second consecutive year in 2024.
ENERGY CONSUMPTION MONITORIZATION We leverage advanced analytics for energy performance in real time. We track energy data in ENERGY STAR Portfolio Manager. We utilize hardware such as utility grade real time meters and advanced system submeters, in addition to data layer software-based tools and our customized MSI to cross- check and validate our data.
RENEWABLE ENERGY Since January 2022, we have offset 100% of our NYC commercial office electric usage through Green-e certified RECs. Since January 1, 2011, the Empire State Building has purchased RECs to offset 100% of the electricity used in the building. In 2024, ESRT purchased a total of 86,880 MWh of RECs. Our partnership with 18 Reserves and ACT offsets 100% of our non-electric fossil fuel usage, such as steam and natural gas, through the preservation of 9,000 acres of biodiverse forest.
TENANT ENGAGEMENT We collaborate with our tenants to drive ROI-based energy efficiency initiatives and sustainability practices.
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In addition to our industry-leading comprehensive deep energy reduction analyses, which inform our ESRT 2.0 plans at the building and tenant levels, we partner with policymakers at the city, state, and federal levels to drive a resilient grid. Our plan to accomplish our goals is to continue to implement these measures, perform evaluations of emerging technologies, and scope opportunities for on-site or community-based renewable energy generation and storage where viable. Our commitment to reduce energy consumption in our buildings is based on a critical tenet of the NY Climate Leadership and Community Protection Act (CLCPA) and LL97. Buildings must reduce their energy usage by 50% combined with a CLCPA renewably sourced grid in order to achieve legislated targets.
We have promoted energy efficiency throughout our portfolio since 2007, when New York City began its environmental leadership under Mayor Bloomberg. ESRT’s participation includes work on city, state, and federal policy and legislation.
NEW YORK CITY • NYC’s Green Codes Task Force (for the development of PlaNYC, LL84, LL86, LL87, LL88, and NYC ECC) • 80x50 Technical Working Group for LL97 and PlaNYC • Climate Mobilization Act LL97 Advisory Board; Co-Chair; Working Groups for Commercial Buildings and Economics • NYC Mayor’s Sustainability Advisory Board • Urban Green Council Board of Directors • Member of NYU and NYC Economic Development Corporation’s Decarbonization Task Force
NEW YORK STATE • NYSERDA Empire Building Challenge (inaugural cohort) • Con Edison’s New York State Clean Heat Program • Con Edison Strategic Energy Partnership • The Real Estate Board of New York Sustainability Committee • Authors of the commercial and multifamily editions of the Empire Building Playbook • NYSERDA Manufacturer’s Consortium • NYSERDA incentive program support includes RTEM+, Flexible Technical Assistance (FlexTech), and the Empire Building Challenge • The Clean Fight judge • ULI NY Subject Matter Expert Committee
FEDERAL • DOE’s Better Buildings Challenge and Better Climate Challenge • ENERGY STAR advisory and ENERGY STAR for Tenant Spaces enabling legislation • RER SPAC Chair, working with the DOE and EPA to inform federal policy with successful practice • ULI Think Tank Committee
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ESRT includes all owned assets Scope 1, Scope 2, and Scope 3 downstream leased assets in our goals, projects, data, and disclosure. Scope 3 downstream leased assets are defined as the emissions from the operation of assets that are leased by ESRT’s tenants and not already included in Scopes 1 and 2 inventories. GHG emissions were calculated in accordance with the WRI GHG Protocol, and verification of the data contained herein was conducted in accordance with ISO 14064 Part 3. The sharp increase in 2024 emissions are due to a 19.3% increase in eGRID factors from 2021 to 2023 which are now reflected in our 2024 emissions. Amid the increased emissions eGRID factors, 13% increase in occupancy, 10% spike in Cooling Degree Days (CDDs), and 5% spike in Heating Degree Days (HDDs) - all conditions that commonly drive emissions upwards - when we adjust 2023 emissions retroactively to reflect the updated eGRID emissions factor, 2023 total NYC office building emissions becomes 45,104 MTCO 2 e and a 1.1% emissions reduction is achieved in 2024. ESRT is on target to reach 80% emissions reduction for the Empire State Building by 2030 and by 2035 for the portfolio provided grid reductions occur in this time frame and as justified by economic results. Our groundbreaking deep energy retrofit work at the Empire State Building, which began in 2010, has reduced emissions by 59% compared to our benchmark year of 2007. Our initial Version 1.0 work was integrated across our entire commercial portfolio and provided the real estate industry with a blueprint of what was technically and economically possible in the built environment at the time. Since 2009, ESRT’s commercial office portfolio has achieved a 49% reduction in GHG emissions.
GHG EMISSIONS PERFORMANCE
2024 GHG EMISSIONS 6 (MTCO 2 e)
Scope 3 Category 13: 32,508 Commercial: 28,378 Multifamily: 4,130
Scope 1: 2,309 Commercial: 2,309 Multifamily: 0
increase in emissions compared to 2023 4%
51,641 MTCO 2 e
Scope 2: 16,823 Commercial: 16,819 Multifamily: 5
LIKE-FOR-LIKE GHG EMISSIONS 6 (MTCO 2 e) NYC Commercial Office
25,491
20,600
16,819
16,567 15,580
15,731
15,231
14,046
3,126 2,360
3,013
2,309
2021 2022 2023 2024
2021 2022 2023 2024
2021 2022 2023 2024
Scope 1
Scope 2
Scope 3
6 Occupancy increased by 16.6% at the Empire State Building and 12.9% across the commercial portfolio in 2024 compared to 2023. The NOAA Central Park NYC data center reported Heating Degree Days (HDDs) increased by 5% and Cooling Degree Days (CDDs) increased by 10.3% from 2023 to 2024. This increase in occupancy, HDDs and CDDs contributes to increased energy and water usage and emissions. The 2024 consumption data above represents the utility usage of ESRT’s commercial and multifamily portfolio that was owned for the full calendar year 2024. Data is absolute and is not normalized for weather, occupancy, tenant typology, or other variables that impact utility usage apart from efficiency initiatives. GHG emissions factors used for these calculations are location-based Scope 1, 2 and 3 emissions based on EPA eGRID published data as of January 17, 2025. The reported increase in 2024 emissions is due to increased eGRID factors of 19.3% from 2021 to 2023, which are reflected in the 2024 emissions data reported herein. Like-for-like metrics represent ESRT’s NYC commercial office properties owned for the full calendar years of 2021 to 2024.
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ROADMAP TO BUILDING EFFICIENCY
September Began development of Empire State Building 1.0 deep energy retrofit study 2007
2010
2019
2022
June Published expansion of our Playbook with NYSERDA to share all ESRT properties, including multifamily 2.0 studies 2024
January Purchased Green-e wind RECs to offset 100% of the Empire
January Updated sustainability standard operating procedures for the portfolio to align with latest advancements and green building certifications
January Achieved carbon neutrality across portfolio through a combination of operational emissions reduction and validated offsets April Announced ESRT 2.0 engineering study and published the Empire Building Playbook October Completed all NYC commercial 2.0 engineering roadmap studies
State Building’s electricity usage
October Began development of ESRT 2.0 roadmap
2009
2012
2021
2023
January Integrated operational best practices from Empire State Building 1.0 into portfolio standards Developed the Tenant Energy Optimization Program based on our work to demonstrate tenants’ role in energy reduction and to model and prove the business case for highly efficient sustainable tenant spaces. The program was gifted to Urban Land Institute (ULI) to scale
January Purchased Green-e wind RECs to offset 100% of the commercial portfolio’s electricity usage April Target deep energy retrofit for the Empire State Building by 2030 and commercial portfolio by 2035 Empire State Building 2.0 roadmap case study completed
April Announced Empire State Building 1.0 groundbreaking retrofit and provided the industry with a free open-protocol blueprint of what is technically and economically possible December Implemented High Performance Design and Construction Standards in all leases, which required all Empire State Building projects to be designed and built to perform at the highest level of efficiency and environmental responsibility
October Multifamily and CT commercial properties 2.0 roadmap studies completed Set 2.0 target for multifamily portfolio by 2035
October Four commercial 2.0 roadmap studies completed
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WATER PERFORMANCE The reduction of water consumption in buildings minimizes overall environmental impact, drives operational cost savings, and reduces risk from fluctuations in water supply and combined sewer overflow, a significant challenge in NYC and cities around the world. Water usage reduction and water runoff quality and quantity management are critical issues for NYC and for ESRT, as a recipient of the municipal water supply. We address these issues through water processing, water fixtures, water submetering and associated software, green roofs, and native xeriscape planting. In 2023, we received the DOE’s Better Building Challenge Water Goal Achiever status with 97% passing data checks and 27% water use intensity improvement.
2024 WATER CONSUMPTION 7 (m 3 )
492,992
decrease in water consumption compared to 2023 6.15%
462,687
Commercial 367,882 Multifamily 125,109
Commercial 343,292 Multifamily 119,395
318,388
297,835
2021
2022
2023
2024
LIKE-FOR-LIKE WATER USE INTENSITY 7 (kgal/ft 2 ) NYC Commercial Office
0.153
0.151
0.148
0.123
2021
2022
2023
2024
7 Occupancy increased by 16.6% at the Empire State Building and by 12.9% across the commercial portfolio in 2024 compared to 2023. This increase in occupancy contributes to increased water usage. The data above represents the water usage of ESRT’s commercial and multifamily portfolio that was owned for the full calendar year 2024. Data is absolute and is not normalized for weather, occupancy, tenant typology, or other variables that impact utility usage apart from efficiency initiatives. Like-for-like metrics represent ESRT’s NYC commercial office properties owned for the full calendar years of 2021 to 2024.
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WATER EFFICIENCY We implement water efficiency strategies to support our water reduction goals and minimize our impact on the environment. Our Water Policy and water efficiency strategies include:
• Set a baseline and track against performance goals • Update water data quarterly in ENERGY STAR Portfolio Manager
• Research, pilot, and implement water management technologies and strategies in base building and tenant spaces • Continue to install new or retrofit existing fixtures for ultra-low-flow models and track progress and potential • Submetering and real-time monitoring, machine learning, and management software across the commercial and multifamily portfolio • Annual water quality testing and compliance with NYC, WELLv2, and LEEDv4.1 • Proactively prevent, identify, and rectify leaks
LOW-FLOW RETROFITS AND UPGRADES
ADVANCED SOFTWARE-BASED WATER SUBMETERS
To monitor and measure water consumption by end-use and identify areas for targeted reduction, we installed submeters for all central water systems across our portfolio. We have implemented machine learning software to detect and notify property management of unnecessary water usage and potential leaks, monitor water use contemporaneously, and analyze trends. This technology enables our property managers and engineers to knowledgeably manage consumption and make informed operational decisions in real time.
As part of our sustainability standards, we continue to implement ultra-low-flow fixtures that perform 40% to 50% better than code and are EPA WaterSense labeled. This past year, our building management teams conducted a comprehensive survey of each water fixture to record flow rates and ensure compliance with our standards. This assessment aims to identify areas for improvement and help us achieve our consumption reduction goal of 30%.
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