EMPIRE STATE REALTY TRUST: 2021 SUSTAINABILITY REPORT
Risk Management A key part of our business and ESG decision-making process is to maintain an effective risk oversight process to enable the Board to monitor, evaluate, and act with respect to identified risks. Our Senior Management Team is responsible for the day-to-day management of enterprise risks, including through the management of the company’s Enterprise Risk Management program. Management actively identifies, monitors and implements mitigation strategies with respect to such risks. As part of the ERM program and committee oversight responsibilities under the Committee Charters, management provides regular updates to the Board and relevant committees. Some examples of committee risk oversight responsibility as it relates to ESG include: • Audit Committee oversees policies with respect to risk management, including among others, cybersecurity risks, and ESG risk, including climate change and including climate related risk and human capital. • Compensation and Human Capital Committee oversees human capital management risks, including DE&I, culture, pay equity, and talent attraction and retention. Board Diversity The Board seeks diverse composition in terms of race, gender, age and experiences. We have added 4 new independent directors since 2017, 3 of whom are diverse in terms of gender and/or race ethnicity. In 2021, we amended our Corporate Governance Guidelines to codify our commitment to diversity by adding “Rooney Rule” language requiring that: The Nominating and Corporate Governance Committee shall seek to include candidates with a diversity of race, ethnicity and gender in the pool from which such Committee recommends candidates.
DE&I Risk Management To assist in the identification and mitigation of risk, we actively pursue a diverse and inclusive workforce to provide us with a knowledgeable and holistic approach to our work. We view diversity, equity, and inclusivity as core to our business strategy, not only from a workforce development perspective, but an integral piece to our success as a corporation. We continue to strive towards improvement of diversity for senior management and our Board in addition to our employee body, through implementation of measurable and actionable goals, and impactful strategies.
ESRT BOARD OF DIRECTORS
Gender Diversity
14%
22%
86%
78%
2017
2021
Male
Female
Racial/Ethnic Diversity
78%
100%
11% 11%
2017
2021
Asian
White
African American
51
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