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
Mitigation Measures Policy and Legal • Proactively review and participate in development of energy and climate legislation • Frequently evaluate compliance status, financial impacts, and strategies • Participate in advisory boards, committees, and technical working groups focused on energy efficiency, reliability, and affordability and inform energy and climate legislation • Real Estate Roundtable Sustainability Policy Advisory Committee Chair and Member • New York City Energy Conservation Code Advisory Committee • NYC LL97 Steam Decarbonization Committee • Real Estate Board of New York Sustainability Committee Technology and Innovation • Invest in proven and innovative energy efficiency technology and rigorously evaluate potential to deliver value • Consistent review of potential opportunities for affordable, reliable on-site renewable energy and storage • Pilot and deploy advanced optimization and AI machine learning technologies • Optimization software platform, lighting and controls, building management systems, HVAC equipment, and tenant plug loads and controls • Partner with policymakers at the city, state, and federal levels to drive a renewable, resilient, and affordable grid Market, Reputation, and Liability • Engage in strategic long-term contracts with utilities and free market deregulated market providers • Provide ongoing tenant engagement and awareness through sustainability workshops and resource efficiency campaigns to help our efforts to reduce our building’s environmental impact and align with climate resilience goals • Transparently share status of building energy performance, company sustainability targets, and business case • Utilize ESRT’s Green Financing Framework to meet investor demand for green finance and investment opportunities with proven performance
Transitional Opportunities
SHORT TERM PRESENT–2030
MEDIUM TERM 2030–2040
LONG TERM 2040–BEYOND
OPPORTUNITY
Policy and Legal
Qualify for incentives and grants Low or no compliance fines or penalties Recognition as a global leader in environmental performance and disclosure Reduced operating costs from energy savings Effective technology and modernized infrastructure Operational performance enhanced Potential lower capital cost from green financing and increased investor demand Increased tenant demand and higher market valuations Tenant satisfaction and increased engagement Avoid risk of obsolescence and value deterioration
Technology and Innovation
Market, Reputation, and Liability
High Medium Low
Transitional Risks
SHORT TERM PRESENT–2030
MEDIUM TERM 2030–2040
LONG TERM 2040–BEYOND
RISK
Policy and Legal
Enhanced public disclosure requirements Monetary fines Increased capital investment to meet tightened building codes and regulations Uncertainty around electric grid capacity and resilience Increased utility rate costs Abrupt or unexpected changes in energy costs Potential increase in insurance premiums or insurability
Technology and Innovation
Market, Reputation, and Liability
Shift in stakeholder preferences Limited control over tenant usage
High Medium Low
62 EMPIRE STATE REALTY TRUST 2025 CORPORATE SUSTAINABILITY REPORT
Made with FlippingBook interactive PDF creator