GOVERNANCE AND TRANSPARENT REPORTING
INTRODUCTION
ENVIRONMENTAL
CORPORATE CITIZENSHIP
APPENDICES
Resilience
Board and Management Oversight
Stakeholder Engagement
Transparent Disclosure
Risk and Crisis Management
Green Finance
Business Ethics
Human and Labor Rights
Occupational Health and Safety
Resilience As the climate continues to change, it presents both physical and transitional risks to the real estate sector, with the potential to impact operations directly and long-term asset value. ESRT recognizes that our ability to identify, evaluate, adapt to, and respond to these risks is critical to our resilience and continued success. We proactively model the tangible and economic impacts of climate-related risks across short-, medium-, and long-term horizons. Based on these assessments, we develop targeted strategies to mitigate risk and strengthen our adaptive capacity. The company implements policies, advances technologies, executes energy efficient infrastructure and modernization plans, manages financial resources, and adopts adaptive measures. Physical Risks Our Climate Change Adaptation and Resilience Policy and Operational Plan for our portfolio has been in place since 2019. As part of this policy, we complete a Climate Change Risk Assessment Checklist during the due diligence process for all potential acquisitions. In 2025, we partnered with a third-party provider to conduct a comprehensive assessment, which utilized the Intergovernmental Panel on Climate Change (IPCC) Representative Concentration Pathways (RCP) 2.6, 4.5, 6.0, and 8.5. The results of these assessments, shown below, helped ESRT identify, prioritize, and plan for the mitigation of physical climate-related risks. Physical risks for the New York City metropolitan area include rising sea levels, wind, wildfire, storm surges, and extreme temperature fluctuations, which could adversely impact the region where we operate. For more than a decade, we have maintained robust adaptation and mitigation procedures, such as a formal disaster recovery plan and business continuity plan. Our Climate Change Adaptation and Resilience Operational Plan includes guidelines on how to address floods, storm surges, windstorms, wildfires, air quality, hurricanes, extreme weather, and winter storms. ESRT collaborates with our insurers to proactively design plans that account for climate-related risks. To diversify our risk exposure, we integrate disaster recovery and business continuity coverage across multiple insurers.
SHORT TERM PRESENT–2030
MEDIUM TERM 2030–2040
LONG TERM 2040–BEYOND
RISK
Sea Level Rise
Low
Low
Medium
Fire
Low
Low
Low
Wind
Low
Low
Medium
Extreme Heat
Medium
High
High
Air Quality
Low
Low
Medium
Power Interruption
Medium
Medium
Medium
LOW IMPACT Unlikely to have a substantive financial or strategic impact on operations.
MEDIUM IMPACT Likely to materialize but may or may not have a substantive financial or strategic impact on operations.
HIGH IMPACT High probability of materializing and having a substantive financial or strategic impact on operations.
61 EMPIRE STATE REALTY TRUST 2025 CORPORATE SUSTAINABILITY REPORT
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