SUSTAIN ABILITY REPORT
SL GREEN HAS A HISTORY OF OWNERSHIP AND INTEREST ACROSS 115 MILLION SQUARE FEET OF MANHATTAN COMMERCIAL REAL ESTATE. EVERY SINGLE BUILDING THAT PASSES THROUGH OUR HANDS IS EVALUATED UNDER BOTH A FINANCIAL AND ENVIRONMENTAL LENS TO ENSURE THAT BUILDING SYSTEMS AND OPERATIONS ARE ALIGNED WITH OUR ESG GOALS AND THE RESILIENCY OF NEW YORK CITY. ENVIRONMENTAL We make a conscious effort to improve New York City by minimizing our carbon footprint through emissions reductions, resource con- servation, and operational excellence. SOCIAL Our partnerships extend beyond the confines of our offices and into the greater New York City community. We strive to be agents of goodwill through volunteerism and financial patronage. GOVERNANCE SL Green conducts our business in accordance with the highest moral, legal, and ethical standards. Our reputation for integrity is the cornerstone of the public's trust in our company.
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For over 20 years, the success of New York City and SL Green have gone hand in hand. Today, no organization is more committed to building an environmentally and socially sustainable legacy as New York emerges as a global leader in climate change, innovation, and human capital.
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SL Green Realty Corp., an S&P 500 company and New York City’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing, and maximizing value of Manhattan commercial properties. As of Sep- tember 30, 2019, SL Green held interests in 93 Manhattan buildings totaling 45.0 million square feet. This included ownership interests in 27.2 million square feet of Manhattan buildings and 17.8 million square feet securing debt and preferred equity investments.
TABLE OF CONTENTS
04 SLG by the Numbers
Environmental
Social
Governance
A Message From Our Team
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CEO Letter
12 Green Buildings
26 Our People
38 Board Expertise
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About This Report
14 Supply Chain
28 Life at SL Green
40 Risk Management
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Key Achievements
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16 Emissions Management
30 Volunteerism
42 Corporate Policies
Our Vision
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18 Energy Management
31 Philanthropy
43 ESG Reporting
UN SDGs
20 Water
32 Tenant Engagement
44 Stakeholder Engagement
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21 Waste
33 Building Health
45 Materiality Matrix
22 Sustainable Development
34 Living Green
SL GREEN REALTY CORP. 2019 SUSTAINABILITY REPORT
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tenets – resilience, operational excel- lence, and value creation – we achieve unprecedented results while maintaining purpose and integrity in everything we do. By focusing on ESG issues, we have effective risk-management practices in place that influence strategic deci- sions at the highest levels. Last year, we integrated our ESG platform throughout all departments of the company and leveraged these initiatives to grow our program. The result was industry-leading performance achieved across top ESG rating frameworks, including Bloomberg, ThomsonReuters, andCDP. These achieve- ments are a testament to SL Green’s commitment to transparent and sound governance. We are committed to differentiating abstract objectives from tangible solu- tions. At SLGreen, wemeasure everything – being able to quantify our portfolio’s environmental impact is essential in under- standing how it correlates with our orga- nizational objectives and in our role as New York City’s largest commercial owner. In 2019, City Council passed the Cli- mate Mobilization Act, which regulates New York City building emissions. New York State followed suit with the passing of the Climate Leadership & Community Protection Act, which established the goal of converting the state's energy to re- newable resources. In tandem, these new environmental laws present the most comprehensive framework with the ob- jective of positioning New York as a leader in urban sustainability. With our longstanding focus on opera- tional excellence, we are well positioned to meet the challenges associated with this emerging legislation. SL Green is represented at the highest levels of industry, City, and State organizations responsible for developing the blueprint of New York’s environmental future. This involvement ensures that the City and the State’s environmental goals are bal- anced with technical feasibility and economic rationality. What makes me most proud is the team we have assembled, which maintains
SL Green’s excellence day in and day out. The long-term sustainability of our company is dependent on our people. It is our priority to create a workplace environment that fosters a spirit of innovation and encourages high per- formance. We empower our employees to drive our workplace culture by implementing their valued feedback and recommendations across all levels of the company. We are introducing measurable corporate objectives for human capital aimed at attracting and retaining top talent, and continuously evaluate ways to make ourselves com- petitive in the hiring landscape. Our impact extends beyond our physi- cal footprint because the success of SL Green and New York City go hand in hand. Volunteerism and philanthropy are ingrained in SL Green’s ethos. We are committed to donating to charita- ble causes selected by our employees, with a total of $2 million in donations contributed as an organization annually. As a homegrown company, it is mean- ingful for our people to be able to enrich the lives of thousands of New Yorkers and support causes that are aligned with our values. As Chairman of the Board, I am commit- ted to upholding our reputation as a sustainable, responsible, and ethical organization. I amproud of the progress we have made as a responsible corporate citizen and will continue to be an advocate of sustained ESGmanagement.
SL Green by the Numbers
A Word from Our Chairman and CEO
$1.8 B Combined revenues
21 YRS Listed as a publicly traded company
785.58% Total return to shareholders since IPO
25% Of Manhattan office inventory covered by SL Green’s market penetration
115 M Square feet of ownership and investment of Manhattan commercial real estate historically
96.0% Occupancy rate across same-store Manhattan office properties
Marc Holliday Chairman & CEO
SL Green has sustained its prominent position in New York City real estate by employing a pioneering business strategy supported by core values. We assembled a portfolio that creates long-term value and is responsive to dynamic market conditions. The transformative evolution of SL Green since our initial public offer- ing two decades ago has been momen- tous, as every aspect of the company has grown in sophistication, efficiency, and adaptability. Corporate Social Responsi- bility is no exception, and the principles of Environmental, Social, and Governance (ESG) are integral to our success. The growing importance of socially responsible investing means that ESG performance is inextricably linked with financial performance. At SL Green, the imperative to deliver value to share- holders has always been at the forefront of how we conduct our business. And because of our commitment to our core
306 Corporate employees
729 Building personnel
45 M SL Green holds interests in 93 buildings across 45 million square feet
Marc Holliday Chairman & CEO
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KEY ACHIEVEMENTS
No. 1 Scoring Office REIT for ESG Disclosures on Bloomberg World Index
90TH PERCENTILE On Thomson Reuter’s ESG Score
OUT- PERFORMER On the Sustainalytics ESG Rating, as 38th of 328 Global Companies
TOP 3 RANKING
GREAT PLACE TO WORK ® Certified in recognition of a healthy, productive work culture for all employees
S&P 500 AND S&P GLOBAL 1200 ESG Included on the S&P 500 and S&P Global 1200 ESG Indexes
In MSCI’s Environmental Category (Opportunities in Green Buildings)
GRESB GREEN STAR Achieved GRESB Green Star designation as a first-time responder
PARTNER OF THE YEAR ENERGY STAR Partner of the Year (2015, 2016, 2018, 2019)
“A” RATING On GRESB’s Public Disclosure Report
SUSTAINED EXCELLENCE
CHANGEMAKER AWARD
LEED CERTIFIED 22 LEED certified properties
ENERGY STAR Partner of the Year – Sustained Excellence (2018, 2019)
Recipient of NYC Office of Service Changemaker Award
16 M Square feet enrolled in the WELL Portfolio Program
>$2 M In philanthropic gifts to local nonprofits annually
45,000 Visits to SL Green's amenity spaces called Living Green
24 HRS Of training per SL Green employee annually
ENERGY STAR 24 ENERGY STAR labels (2018)
INDUSTRY LEADING BENEFITS According to the NAREIT 2018 Compensation Survey
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OUR VISION
SL GREEN IS COMMITTED TO ENVIRONMENTAL, SOCIAL, AND GOVERNANCE INITIATIVES THAT DELIVER VALUE AND HEALTH FOR OUR STAKEHOLDERS. STRUCTURED AROUND THREE KEY AREAS, EFFICIENCY, TENANT EXPERIENCE, AND INDUSTRY LEADERSHIP, OUR MARKET-LEADING PROGRAM CONTINUES TO MINIMIZE ENVIRONMENTAL IMPACT AND INCREASE RESILIENCY.
SL Green’s Alignment with UN Sustainable Development Goals (UN SDGs) We strive to be a model corporate citizen, and our alignment with the UN SDGs reflects our commitment to a sustainable future. The UN SDGs are actionable targets designed to help our planet achieve an environmentally and socially sustainable future. These goals address the most pervasive global challenges, including poverty, education, and climate. These global issues have a local context, and we are committed to doing our part in addressing each applicable SDG in the communities where we operate. Alignment of SL Green’s ESG program with the UN SDGs can be found throughout this report and on the 2019 GRI Content Index available on our website at sustainability.slgreen.com.
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ENVIRONMENTAL We are leading the charge for a sustainable New York by developing standardized operating procedures, completing energy efficiency projects, and implementing cutting-edge technologies to optimize peak performance. As New York City’s largest landlord, we remain committed to creating the most sustainable footprint to reduce resource consumption and mitigate environmental impacts. Our unrelenting focus on environmental stewardship for over two decades has advanced the quality of our portfolio, benefiting our partners, tenants, and the greater community.
UN SDG Alignment Our environmental sustainability program prioritizes the efficient use of resources, including energy, water, and virgin materials. We are doing our part in creating a more resilient, sustainable city through innovations in the built environment.
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1% SL Green is part of the 1% of 16,000 EPA Partners to achieve ENERGY STAR “Partner of the Year.” For two consecu- tive years, we were awarded “Sustained Excellence,” which only a select group of “Partners” earn, distinguishing SL Green as a leader.
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SL GREEN CURRENTLY HOLDS
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23 BOMA 360 DESIGNATIONS
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GREEN BUILDING DESIGNATIONS
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BUILDINGS
ENERGY STAR
BOMA 360
LEED
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
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10 East 53rd St 100 Church St 100 Park Ave 11 Madison Ave 110 East 42nd St 110 Greene St
Silver
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✓ ✓ ✓
Gold Gold Gold
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Silver
✓
Gold
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ENERGY STAR ENERGY STAR is a measurement and ver- ification tool administered by the U.S. Environmental Protection Agency (EPA) that promotes energy efficiency across build- ings nationwide. ENERGY STAR scores are a reflection of how efficiently buildings are operated. These scores help us motivate our building operators, property managers, and tenants to pursue capital efficiency projects and implement change. In 2018, we achieved ENERGY STAR labels across 13 million square feet of our portfolio. In Manhattan alone, we represent 9% of all ENERGY STAR labels. In recognition of our operational excellence, SL Green received the prestigious “Partner of the Year—Sustained Excellence” award in both 2018 and 2019. WE REPRESENT 9% OF ALL ENERGY STAR LABELS
LEED LEED (Leadership in Energy and Environ- mental Design) is among the most esteemed and pervasive green building certification programs in the world. Developed by the U.S. Green Building Council in 1993, this desig- nation demonstrates a building owner’s commitment to sustainable operations and resource efficiency. SL Green was among the first owners in the nation to adopt the LEED standard at 100 Park Avenue in 2009. Our current portfolio boasts an impressive 17 million square feet of LEED certified space, representing 85% of our reporting properties (see page 48 for a complete list of reporting properties). WE OWN 17M SQ FEET OF LEED CERTIFIED SPACE
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1185 AoA
Silver
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
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125 Park Ave
Gold Gold Gold Gold Gold Gold Gold Gold Gold
1350 AoA
10 1515 Broadway Ave
11 12 13 14 15 16 17 18 19
220 East 42nd St 304 Park Ave South 420 Lexington Ave 485 Lexington Ave 521 Fifth Ave 555 West 57th 625 Madison Ave 461 Fifth Ave
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BOMA 360 BOMA’s (Building Owners and Managers Association) 360 Program holistically evaluates all major areas of building facility management, including operations, safety, training, energy, sustainability, and tenant relations. As part of this program, buildings undergo a rigorous assessment, and fewer than 50 buildings in NYC achieve this des- ignation. GRESB (Global Real Estate Sustain- ability Benchmark) recognizes the BOMA 360 building designation as a trusted assessor of sustainability and governance best practices. SL Green currently holds 23 BOMA 360 designations, accounting for 48% of the total achieved in NYC.
635 AoA
Silver
20 641 AoA
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711 Third Ave
Gold Gold
22 750 Third Ave 23 810 Seventh Ave 24 919 Third Ave 25 1 Madison Ave
Silver
Gold
Pending Redevelopment Pending Development
26 1 Vanderbilt
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2 Herald Square
✓
28 280 Park Ave 29 30 East 40th St 30 800 Third Ave 31 Worldwide Plaza
Gold
✓ ✓
✓
Gold
32 Tower 46
Certified
(1) See page 48 for a complete list of reporting properties.
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SUPPLY CHAIN SL Green’s operations are supported by an extensive supply chain that sources materials and services for our business and tenants. Integral to our bidding and contracting processes, we strategically evaluate our suppliers to ensure they are held accountable for upholding our standards for environmental performance. Our facility managers work closely with tenants, vendors, and contractors to achieve our supply chain goals of sourcing LEED-compliant, recycled, responsibly-sourced, and nontoxic materials. We are focused on the health and safety of all building occupants – this means minimizing any potential exposure to hazardous chemical, biological, and particulate contaminants that could adversely impact indoor air quality and environmental conditions. Our procurement policy is guided by external stan- dards, including FSC (Forest Stewardship Council), ENERGY STAR, and Green Seal, and our vendors are expected to actively reduce their environmental impact. 45% of SL Green’s suppliers are engaged on climate-related issues and our corporate sustainability goals.
VENDOR CODE OF CONDUCT
Beyond environmental impact, we prioritize social responsi- bility to identify risks throughout our supply chain, including working conditions, child or forced labor, and fair wages. We expect our vendors and contractors to maintain and enforce high standards on human rights and labor practices surrounding health, safety, and business ethics. TOP 5 SPEND Procurement of Materials and Services
We are committed to selecting and working with suppliers that maintain transparency and comply with all applicable federal, state, and municipal standards and regulations regarding environmental and social issues. Our contracts require vendors to meet and exceed regulatory compliance, and we enforce our standards through ongoing engagement and monitoring. In instances of noncompliance, SL Green works with vendors to formulate corrective action plans and vendors are reevalu- ated for continued use in the portfolio. We reserve the right to terminate or suspend any agreements and relationships with vendors that are unable to comply with our expectations for environmental and social performance, or that demonstrate disregard for our corporate policies.
Construction Materials
Construction Services
Energy
Janitorial Services
Security Services
Our goal is to have 50% of the materials that are supplied by our vendors covered by external certification to ensure responsible sourcing practices.
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The Bigger Picture SL Green recognizes climate change as a significant envi- ronmental challenge to the continued economic vibrancy of New York City. The IPCC (Intergovernmental Panel on Climate Change) suggests that in order to slow rising global tempera- tures, greenhouse gas emissions must be reduced. In response, New York City has committed to reduce greenhouse gas emissions 80% by 2050 , with an interim reduction of 40% by 2030 . As the largest commercial office owner in New York City, SL Green is committed to reducing greenhouse gas emissions across our portfolio. Real estate assets generate both direct and indirect greenhouse gas emissions through base building operations. Direct emis- sions (Scope 1) are generated onsite from fossil fuels used for heating and hot water. Indirect emissions (Scope 2) are generated offsite from steam and electricity supplied by local utilities. In addition to emissions generated to support base building operations, tenant energy consumption (Scope 3) contributes to the overall carbon footprint of a building. SL Green reduces Scope 1 and Scope 2 greenhouse gas emis- sions by optimizing building operations, implementing intensive energy management, and deploying capital investment in state-of-the-art equipment. But our emission reduction strategy goes beyond those under our direct control— we equip our tenants with tools to achieve Scope 3 energy reductions within their spaces. EMISSIONS MANAGEMENT
IN NEW YORK CITY, 67% OF GREENHOUSE GASES ARE EMITTED FROM BUILDINGS USING NATURAL GAS, ELECTRICITY, FUEL OIL, AND STEAM.
Tenant Engagement Strategy
CARBON REDUCTION TARGETS NYC Mayor’s Carbon Challenge SL Green voluntarily participates in the New York City Mayor’s Carbon Challenge. We identified a selection of properties across 8 million square feet and have committed to a 30% reduction in Scope 1 and Scope 2 greenhouse gas emissions intensity over a 10-year period. CDP - Carbon Disclosure Project We voluntarily participate in CDP (formerly known as the Carbon Disclosure Project), an annual investor survey on climate change, which evaluates company performance and risk management strategies. To demonstrate our com- mitment to emissions management, we established a portfolio-wide green- house gas intensity reduction goal of 30% by 2025 for Scope 1, Scope 2, and Scope 3 emissions. 30% Reduction in SL Green’s greenhouse gas emissions intensity by 2025
Best Practices Data Sharing Education Energy Audits Tenant Build-Out Guidelines Utility Incentives Result in Scope 3 Emission Reductions
EMISSION SOURCES
SPACE HEATING FUEL OIL, NATURAL GAS, STEAM | SCOPE 1&2
SPACE COOLING ELECTRIC, STEAM SCOPE 2&3
DOMESTIC WATER NATURAL GAS SCOPE 1
FANS ELECTRIC | SCOPE 2&3
PUMPS ELECTRIC | SCOPE 2&3
PLUG LOADS ELECTRIC | SCOPE 3
LIGHTING ELECTRIC | SCOPE 3
ELEVATORS ELECTRIC | SCOPE 2
COMPUTERS ELECTRIC | SCOPE 3
SCOPE 1 Direct Emissions 10,346 tCO 2 e (Includes 3,521 Tons from Refrigerants) SCOPE 2 Indirect Emissions 94,323 tCO 2 e SCOPE 3 Tenant Emissions 49,616 tCO 2 e
FUEL OIL 8,787 MMBTU NATURAL GAS 119,090 MMBTU
STEAM 727,046 MMBTU ELECTRIC 161,313 MWh
SEP 2014 Mayor de Blasio commits New York City to 80% reduction in greenhouse gas emissions by 2050, with a 2005 baseline. JUL 2015 Governor Cuomo sets 80% greenhouse gas reduction target for New York State by 2050, with a 1990 baseline.
OCT 2016 SL Green commits to 30% reduction in greenhouse gas emissions as a voluntary participant in the New York City Mayor’s Carbon Challenge. AUG 2018 SL Green expands emissions reduction target across entire portfolio.
OCT 2030 New York City’s Climate Mobiliza- tion Act (CMA) sets a 40% reduction target for citywide emissions, and New York State’s Climate Leadership and Community Pro- tection Act (CLCPA) sets a 40% reduction target for statewide emissions by 2030.
2050 New York City’s CMA sets an 80% reduction target for citywide emissions, and New York State’s CLCPA sets an 80% reduction target for statewide emissions by 2050.
Emissions Reduction Timeline
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ACHIEVING THE SLG STANDARD THROUGH CAPITAL IMPROVEMENTS Operational efficiency is a core strategy for our energy management program — it is cost-efficient, scalable portfolio-wide, and can be rapidly deployed. This best-in-class operation is enabled by our long-term investments in building infra- structure. Capital improvements increase a prop- erty’s overall value, reduce operating costs, and modernize our base building systems. An ice plant is a high efficiency cooling system that stores ice to generate chilled water for air conditioning. The ice is produced overnight during off-peak hours when the electric grid generates the fewest emissions, avoiding the demand for carbon-intensive power plants. We partnered with Trane to install the most efficient chiller on the market at 11 Madison Avenue , reducing utility costs and carbon emissions. The installation is projected to save over $14 million in utility bills and reduce the building’s carbon footprint by 1.4 million pounds of CO 2 over a 20-year period.
ENERGY OPTIMIZATION CLASS “A” OPERATION
DAY-TO-DAY Energy Management Tools BMS (Building Management System) All SL Green office properties are equipped with automated building systems that centralize the direct digital control of building systems and monitor space conditions with single-pane viewing. Real-Time Energy Management Platform We installed iES EnergyDesk in 20 million square feet of our operating properties. This software solution empowers our Engineering Team to respond to building conditions in real time by detecting irregularities, tracking occupancy, and monitoring energy use in 15-minute intervals. Load Based Optimization System (LOBOS) We deployed LOBOS at select properties to maximize efficiency and improve tenant comfort. This is an intelligent optimization tool used for large-scale air conditioning systems that automatically adjusts setpoints to optimal levels.
Environmental challenges can be managed by deploying innovative technology. At SL Green, we are laser focused on exploring commercially available solutions to optimize our day-to-day energy management program. Over the past decade, we have incorporated portfolio-wide programs and technologies that set the baseline for efficient building operations.
SL Green Chief Operating Officer, Edward V. Piccinich (right), accepting the Energy Efficiency Leader Award from Trane President of Commercial HVAC, Donald Simmons (left). We executed the installation ahead of schedule, which quali- fied us for $2.4 million in Con Ed incentives. On the heels of our success at 11 Madison, we deployed the Trane ice plant earlier this year at 220 East 42nd Street , securing $2.8 million in additional Con Ed incentives. This project will generate nearly $11 million in utility savings and reduce the building’s carbon footprint by 766,000 pounds of CO 2 over a 20-year period.
REDUCING PEAK DEMAND Demand Response Action Plan The cornerstone of our energy management platform is demand response – an event triggered by either our electric utility Con Edison (Con Ed) or the grid operator NYISO (New York Independent System Operator) – which calls for a volun- tary reduction in electric consumption. When there is a threat to grid reliability, SL Green curtails electric consumption to do our part in ensuring a stable energy system in New York City. The process begins when Con Ed or NYISO sends a curtailment notice to iES, who passes the signal through EnergyDesk to our Engineering and Property Management Teams. The Engineering Team at each property activates the property- specific response protocol, which includes powering down nonessential equipment, turning off ancillary lighting, reduc- ing elevator operations, and adjusting temperature setpoints without jeopardizing tenant comfort. In tandem, the Property Management Team notifies tenants of the changes in build- ing operation and encourages their participation to reduce energy usage.
CON ED / NYISO ALERT
ENERGY AUDITS / RETROCOMMIS- SIONING • ASHRAE Level II Energy Audits identify energy efficiency opportunities. • Retro-commissioning ensures building systems perform up to specifications.
CHILLER REPLACEMENT
STEAM STATION INSULATION
IES ENERGYDESK ™
ENGINEERING TEAM
PROPERTY MANAGEMENT
VARIABLE FREQUENCY DRIVES (VFDs) • VFDs allow fans and pumps to run at lower speeds, decreasing energy use and required maintenance. • Upgrading to high efficiency electric chillers drives opportunities for operational savings and emissions reduction. • New chillers utilize environmentally preferred refrigerants (R-134a and HCFC- 123) consistent with LEED standards.
LED LIGHTING • LED lighting in base building areas is standard at SL Green due to increased efficiency and durability over traditional incandescent lighting. • Insulation of steam stations and pipes improve efficiency by minimizing heat loss in distribution systems. • Preventing excessive heat loss in the mechanical room improves safety and working conditions for engineering staff.
ADJUST BUILDING OPERATIONS
NOTIFY TENANTS
STEAM TURBINE CONTROLS
In 2018, SL Green committed to curtail over 10MW of electric load through the NYISO demand response program, generating $630K in curtailment revenue.
• Using steam turbines in the summer allows SL Green to provide space cooling at a lower cost and lower environmental footprint. • Modern steam turbine controls improve load management, which saves energy and maximizes occupant comfort.
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Material Selection SL Green partners with qualified vendors and collaborates with tenants to reduce the demand on virgin resources and reuse durable materials during construction. At One Vanderbilt, steel rebar used throughout the building comprises 90% recycled content, and the concrete mix is com- posed of recycled byproducts including slag and fly ash. Organics Recycling Approximately 35% of New York City’s waste stream is composed of organics, including food waste and compostable products, which can be diverted from landfills. To address this waste reduction opportu- nity, we piloted a composting program at our corporate headquarters and diverted over 2,000 pounds of organics in a 6-month period. Electronic Waste In accordance with New York State’s Electronic Equipment Recycling and Reuse Act of 2010, SL Green implemented procedures to properly dispose electronic waste, including computers, keyboards, and bat- teries. We recycled over 5,000 pounds of electronic waste in 2018 through our complimentary program offered to tenants, preventing hazardous material from contaminating the waste stream.
SL Green manages waste and recycling operations across 21 million square feet, and has developed a coordinated logistics plan as part of our standard operating procedures. We partner with our tenants, employees, union stakeholders, and vendors to reduce the amount of waste that is sent to landfills. In one year alone, we increased our recycling rate by nearly 2%, moving closer to our corporate goal of a 50% recycling rate by 2025, which is in alignment with the LEED v4 threshold.
Operational Strategies SL Green implemented a color-coordinated recycling system to streamline proce- dures and improve source separation. We have equipped our janitorial staff with double-barrel waste bins to ensure that waste streams remain sepa- rated, from initial pick-up in tenant spaces to drop-off at the loading dock. All waste storage areas in the loading dock, freight elevator landings, and back- of-house areas are distinguished with signage that illustrates the correct hauling procedures. Tenant Engagement SL Green’s Sus- tainability Team offers annual recycling trainings to over 100,000 individuals who work in buildings across our portfolio. We offer recycling walkthroughs where we help tenants identity ways to im- prove recycling rates. We also distribute educational material and sample signage to help support tenant implementation of SL Green’s recycling program.
Ongoing Education In collaboration with SEIU Local 32BJ, over 500 of SL Green’s janitorial staff are trained on proper waste collection procedures on an annual basis. All presentations are translated into a variety of languages to ensure the material is accessible for all employees. Monthly Tracking SL Green requests monthly waste reports from our haulers to monitor and measure the effective- ness of our recycling procedures. This data is benchmarked in ENERGY STAR’s Portfolio Manager WasteTracker tool. Waste Audits In partnership with our environmental consultant, Sustainable Investment Group (SIG), SL Green’s waste stream is audited annually to identify sources of conta- mination and areas to improve recycling rates. These results are then pre- sented to Property Management and tenants to create customized corrective action plans.
Leak Detection SL Green’s engineers are responsible for visually inspecting water systems throughout our buildings to ensure they are operating under optimal conditions. We also deploy auto- matic sensors on our steam traps to notify our engineers of potential water loss. This proactive approach prevents future leaks and wasted water. Daily Monitoring Engineers review water logs daily to compare trends and identify consumption irregularities. This protocol ensures that our engineers are responding to fluctuations in system operations. Low-Flow Fixtures Our team capi- talizes on every opportunity to retrofit existing toilets, urinals, faucets, and showers with low-flow fixtures. The specifications are aligned with the LEED v4 standard of performing 20% better than code requirements. Water Tracking SL Green tracks water consumption data through ENERGY STAR’s benchmarking tool, Portfolio Manager. This data is disclosed to New York City’s Department of Buildings (DOB) to fulfill the annual reporting requirements outlined under Local Law 84 of 2009. Landscaping At SL Green, we incor- porate biophilic design into the built environment. We prioritize landscaping
that is indigenous to New York because native plants are adapted to local envi- ronmental conditions, require less water, and promote regional biodiversity. CAPTURED RAINWATER The most efficient water-saving technologies will be deployed at SL Green’s ground-up development, One Vanderbilt. This includes a water reclamation system, where rainwater will be collected, stored, and reused for our cooling towers. This reduces our demand for fresh surface water or groundwater, and is projected to save over 1 million gallons of water per year. AUTOMATED METERING The next evolution of SL Green’s water-management strategy is monitoring consumption in real time. We implemented this technology at 555 West 57th Street and 110 East 42nd Street, and plan to deploy this across five additional properties by the first quarter of 2020.
Water scarcity is a key environ- mental issue, and SL Green is leading by example through our responsible water manage- ment program. Our strategy includes installing low-flow fix- tures, encouraging responsible resource management among building operators and tenants, and monitoring consumption data across 100% of our owned and managed portfolio. Fixture upgrades decreased our water consumption by 30% across the LEED certified buildings in our Manhattan portfolio, equivalent to saving 29 million gallons of water per year.
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ONE VANDERBILT
CONSERVE ENERGY High efficiency mechanical sys- tems to conserve energy and perform at the highest standard. WELLNESS & PRODUCTIVITY Biophilic design elements that enhance occupant wellness and productivity. BIODIVERSITY Utilization of indigenous plant species to benefit local biodiversity. PROXIMITY TO NATURE Direct access to Madison Square Park.
GARDEN FLOORS More than 1 acre of outdoor spaces that mitigate heat island effect and regulate stormwater runoff.
Sustainable Development
The vision for One Vanderbilt is to optimize building per- formance, integrate the public and private realm, revitalize Midtown, and provide an unsurpassed urban experience. One Vanderbilt is the first in a series of development oppor- tunities that will create office, retail, and experiential spaces that exemplify sustainable design.
For over two decades, SL Green’s core business strategy has been to reposition New York City assets and infuse them with smart design and modern infrastructure. We thoughtfully integrate sustainability features that reduce long-term operating costs and adapt to the evolving market demands. We supplement our stabilized portfolio with a development pipeline that sets the standard for sustainable new construction. New development allows us to leverage innovative design and technological solutions that are more readily available with new construction than existing buildings.
COMMUNITY IMPACT
COLUMN-FREE FLOOR PLATES Maximize daylighting entering tenant spaces in new tower. 100 Achieved the highest possible Walk Score ® of 100. Engaged government officials, community members, and local businesses on development plans to ensure positive com- munity impacts are maximized. EFFICIENCY High performance curtain wall that optimizes heating and cooling efficiency. SUSTAINABILITY PERFORMANCE Environmental goals integrated throughout design, construction, and planning decision-making.
1.2 MEGAWATT Cogeneration system
LEED & WELL Highest levels of LEED and WELL certifications.
OPTIMIZED ENERGY PERFORMANCE Building design optimizes energy performance 26% below an ASHRAE 90.1-2007 baseline. 40% WATER USE REDUCTION Through ultra-high efficiency water fixtures. $17 MILLION Invested in sustainability fea- tures that go above and beyond code requirements. 75% RECYCLING RATE Achieved during project demo- lition and construction. ENHANCED COMMISSIONING Of all major building systems and building envelope.
generates electricity on site, capturing and reusing waste heat in the process.
$220 MILLION Invested in public realm improvements.
TENANT GUIDELINES Exceed both the LEED v3 and LEED v4 baselines. 90% RECYCLED Steel rebar used for construc- tion is made of 90% recycled content.
GREEN LEASE Clause that stipulates tenant and landlord alignment with LEED.
TRANSPORTATION Unparalleled proximity to public transportation.
LOWEST CARBON FOOTPRINT One of the lowest carbon footprints across buildings of similar density and scale in NYC. GLAZING High performance glazing that regulates insulation for heating and cooling. MWBEs 18% of contractors onsite are Minority and Women-owned Business Enterprises (MWBEs).
90,000 GALLON Rainwater and collection treat- ment system that will reduce the demand for cooling tower water by 1 million gallons per year.
URBAN INFILL Construction that avoids sprawl and green field development.
REDUCED LIGHTING Power density and occupancy sensors throughout base building areas.
GREEN OPERATIONS
ONE MADISON
Operational policies including green cleaning, water efficiency, and waste.
One Madison presents a unique redevelopment opportunity to transform a historical asset into a modern icon with premier sustainability features. This marquee building offers an unparalleled combination of a thriving neighborhood, best-in-class amenities, and access to green spaces and public transportation.
SL GREEN REALTY CORP. 2019 SUSTAINABILITY REPORT
CEO LETTER
KEY ACHIEVEMENTS
ENVIRONMENTAL
SOCIAL
GOVERNANCE
025
SOCIAL Our Social vision is enhancing the health and resiliency of our employees, tenants, and the community. At the forefront of our plans is creating a work culture that prioritizes productivity and wellness through training, diversity, education, and volunteerism. Our people are unified through a shared sense of purpose, as we empower our employees with the time and resources to contribute significantly to a greater New York.
UN SDG Alignment We are dedicated to the communities we invest in. By partnering with the individuals that work in our buildings on community service events, donation drives, and fundraising, we are able to expand our reach and the collective impact of our efforts. From donating over 1,500 pounds of food to City Harvest to collecting $21,000 worth of sporting equip- ment for New York public school students, to donating over $2 million annually to philanthropic organizations, acting as a positive corporate citizen is integral to our mission.
SL GREEN REALTY CORP. 2019 SUSTAINABILITY REPORT
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Employee Health & Benefits At SL Green, we recognize that our employees are at the heart of our business success. We have assembled a talented and diverse team of professionals who exemplify the spirit of our organization. We are committed to enhancing the health and well-being of our employees with an extensive benefits program tailored to meet everyone’s needs. We achieve this by actively seeking feedback from our employees and keeping our finger on the pulse of workplace trends to attract and retain the best talent in New York City.
Tenure of Current Employees
MENTAL HEALTH HAPPIFY Web application that guides employees to live a happy, less stressful, and more fulfilling life using science-based methods. IPREVAIL One-on-one peer counseling and therapy.
SPRING HEALTH Program focused on employee mental health, which offers resources including providers, online screening, treatment matching, and care navigation.
YEARS
ALL
CORPORATE PERSONNEL
BUILDING PERSONNEL
37% 21% 36%
0-4 5-9
397 224 379
156
50% 17% 25%
241 170 301
32% 22% 40%
54 78 23
10-19
6%
20+
65
8%
42
6%
Total
1065
100% 311
100%
754
100%
OSHA (Occupational Safety and Health Administration) To safeguard the health and welfare of our employees, SL Green provides mandatory OSHA training that includes parameters for life, fire, electrical, and scaffold safety.
Employee Tenure SL Green boasts a long-tenured staff with 63% of current corporate and building employees remaining on board for five years or more. Employee Engagement SL Green conducts annual employee engagement surveys to gauge overall satisfaction with a focus on management communication, opportunities for growth, and company image. This past year, our team invited employees to participate in an external survey to evaluate workplace culture in compari- son to companies nationwide. We are proud to announce that SL Green is Great Place to Work ® Certified. Performance Management We have a dual-track performance management program, which includes both ongoing Goal-Setting and annual Perfor- mance Reviews for all employees. Succession Planning SL Green futureproofs against the uncertainty of an ever- changing workforce by conducting succession planning. We identify high-potential employees and prepare them for key roles within the organization. Employee Training Anti-Harassment All SL Green employees are required to complete an online anti-harassment training course each year. Our goal is to create a safe workplace environment where employees feel comfortable and secure. We have a zero toler- ance policy for harassment of all types, and are committed to preventing incidents of noncompliance. Cybersecurity SL Green is committed to Cybersecurity Training Programs and frequent employee communication providing helpful user tips. Protection against cyber threats remains a high priority for our organization. We also engage with a third-party company to assess our defenses through recurring penetration testing. Cross-Training In order to ensure that our employees are given the necessary tools to do their best work, SL Green provides cross-training opportunities to learn about new roles and develop valuable skills. Providing our employees with a multifunctional transfer of knowledge allows our workforce to be more agile in a rapidly developing industry.
FINANCIAL • Financial Planning and Counseling • 401(k) and Employer Match • Employee Stock Purchase Program • 529 Plan
PARENTAL BENEFITS • Paid Parental Leave
HEALTH AND WELLNESS • Medical, Dental, and Vision Coverage • Health Savings Account • Life and AD&D Insurance • Short-Term and Long-Term Disability Insurance • Healthcare Flexible Spending Account • Critical Illness Coverage • Accident Insurance • Benefits Concierge • Subsidized Gym Membership • ThrivePass TM Wellness Rewards Platform • Weight Watchers At Work Program • Biometric Screenings • Flu Shot Clinics
90% Employees proud to work for SL Green
100% Employees confident SL Green operates in a socially responsible manner
94% Employees have a strong working relationship with their direct supervisor
• Advanced Fertility Treatment Coverage • Healthy Babies, Healthy Pregnancies TM Prenatal Education Program • Lactation Consultation and Supply Coverage • Dependent Care Flexible Spending Account
• Tuition Reimbursement • Prepaid Legal Coverage • Cross-Functional Certification through New York University and Columbia University • Employee Referral Bonus • Commuter Benefits • Consumer Product Purchasing • Cell Phone Reimbursement • Retail Discounts and Subsidies • Pet Insurance
WORK / LIFE BALANCE • Employee Assistance Program • Industry-Leading Paid Time Off • Paid Holidays • Summer Fridays
SOCIAL SPOTLIGHT Nontraditional Employment for Women (NEW)
OUR PEOPLE
Diversity & Inclusion SL Green is dedicated to creating a diverse workplace in which employees feel valued and accepted. We foster an environ- ment that rewards the hard work and effort of all employees regardless of race, color, religion, national origin, gender, sexual orientation, age, disability, or veteran status.
Memesha Davis , a NEW graduate and Local 40 ironworker onsite at One Vanderbilt.
SL Green partners with NEW, an organization that prepares and trains women to pursue careers in construction trades including plumbers, electricians, and carpenters. The goal is to help women achieve economic independence and a secure future for themselves and their families. SL Green is a proud supporter of this organization by donating over $100,000 and hiring 12 NEW graduates as employees at our ground- up development, One Vanderbilt.
CORPORATE PERSONNEL
GENDER
AGE
50% of SLG's corpo- rate and building personnel are represented by racial minorities.
Male
Female
Less than
30 – 50 years old
More than 50 years old
30 years old
Total number of employees
161 161
145 145
72 72
154 154
80 80
Permanent Temporary Full-time Part-time
0
0
0
0
0
161
144
71
154
80
0
1
1
0
0
SL GREEN REALTY CORP. 2019 SUSTAINABILITY REPORT
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KEY ACHIEVEMENTS
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Events We host company-sponsored social events and activities to reinforce the fundamental attributes of our corporate character including commu- nication, teamwork, trust, and collaboration. In recent years, we collected feedback from employees and introduced new programs including an annual Wellness Month, SL Green Softball Team, and paid Volunteer Day for all employees. LIFE AT SL GREEN Cultivating a strong company culture is key to ensuring employees know the value of their work and how it fits into our larger mission.
WELLNESS MONTH
SOFTBALL LEAGUE “SL GREEN’S SUMMER SOFTBALL LEAGUE HAS ALLOWED ME TO CREATE BONDS WITH MY COLLEAGUES IN WAYS THAT ARE NOT POSSIBLE INSIDE AN OFFICE SETTING. OUR GAMES ARE SOMETHING I LOOK FORWARD TO EVERY WEEK!” Marc Mancini SL Green Construction Team “I APPRECIATE THAT I WORK FOR A COMPANY THAT FOCUSES ON THE HEALTH AND WELLNESS OF ITS EMPLOYEES. IT MAKES ME FEEL VALUED AND EXCITED TO COME TO WORK EVERY DAY.” Ariel Buckmire SL Green Finance Department
LIST OF EVENTS
Annual Summer Outing
Annual Town Hall
Earth Week
Glenn Markman Foundation 3-on-3 Basketball
Hoopfest at Madison Square Garden
Juvenile Diabetes Research Fund Real Estate Games
SL Green Softball Team
Susan G. Komen Race for a Cure
Wellness Month
SL GREEN REALTY CORP. 2019 SUSTAINABILITY REPORT
CEO LETTER
KEY ACHIEVEMENTS
ENVIRONMENTAL
SOCIAL
GOVERNANCE
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>1,000 SL Green Paid Employee Volunteer Hours VOLUNTEERISM At SL Green, we are only as strong as the com- munities in which we operate. The importance of community engagement is twofold — it strengthens local resiliency and provides social growth opportunities for our employees outside of the office. Our employees, assets, and business deliver the best results when they are integrated into the community and contribute positively to a greater societal purpose. Park Cleanup Every year SL Green employees celebrate Earth Day by cleaning up our backyard in New York City parks. Together with the Mayor’s Office and our tenants, we pick up litter, repaint infrastructure, and replant flowers and trees. American Corporate Partners Veteran Mentorship SL Green employees volunteer in a mentorship program to provide post-9/11 veterans with resumé review, interview prepa- ration, career exploration tips, and networking opportunities. Mentorship Program SL Green hosted 25 students from Robert F. Wagner Junior Secondary School, where the student- to-college-advisor ratio is 500:1. SL Green’s team dedicated it's time to empower New York’s future workforce by helping students with interviewing skills, resumé writing, and career counseling. Ladders for Leaders Since 2016, SL Green has partnered with the New York City Mayor’s Office to provide students with internship opportunities that develop workplace readiness skills and business etiquette.
Affordable Housing At SL Green’s ground-up residential development, 185 Broad- way, 30% of the newly constructed units will be rent regulated to ensure the affordability of housing on New York City’s rental market. This will be the first building to be constructed in Lower Manhattan under New York City’s Affordable New York Housing program. PHILANTHROPY Endowed with the time and resources to contrib- ute significantly to the New York City community, inspiring altruism among our employees is a priority for SL Green. We contributed $2 million in philanthropy and launched a charitable contribu- tion match program as a benefit for our employees. SL Green supports a variety of causes, including those aligned with the UN Sustainable Development Goals of promoting education and eliminating poverty and hunger.
Paid Volunteer Day We empower our employees to volunteer their time at organizations that align with their personal values:
Madison Square Park Conservancy SL Green provides donated office space to nonprofit orga- nizations to lower overhead costs and promote innovative solutions in the social sector. Leukemia & Lymphoma Stair Climb SL Green opened our doors to hundreds of volunteers to climb 53 flights of stairs to the top of 1515 Broadway for The Leukemia & Lymphoma Society’s Big Climb fundraising event. Our team raised $1,300 to fund blood cancer research and support services for patients. JDRF SL Green participated in the Juvenile Diabetes Research Fund’s (JDRF) Real Estate Games. JDRF is the leading global organization funding type 1 diabetes research, and SL Green fundraised $5,000 for this cause. “SL Green’s commitment to volunteerism and blood donation drives positively affected over 400 lives.” New York Blood Center
Animal Haven Pet Shelter
Brooklyn Animal Rescue Coalition
Citymeals on Wheels
Community Help in Park Slope, Inc.
Encore Community Services
Food Bank for New York City
Habitat for Humanity
NY/NJ Trail Conference
Rescuing Leftover Cuisine
She Builds NYC
St. Patrick’s Parish
The Arc New York
The Friends of Wallisch Homestead, Inc.
COMMUNITY IMPACT
Trinity Church
>150 Organizations supported DONATION DRIVES Across 22M square feet 400 PINTS Of blood donated to New York Blood Center
1,850 Pounds of food donated to City Harvest 605 LBS
600 LBS Of toys donated to Bellevue Hospital 350 COATS Donated to Coalition for the Homeless $21,000 Of sporting equipment donated to New York public schools
MENTORSHIPS 25 high school students mentored 370 SHOES Donated to It’s From The Sole >130 Donation drives and community events sponsored by SL Green
WetLab
Of school supplies donated to East Side Community School $1.6M Donations raised for Visiting Nurse Service of New York (VNSNY), which honored SL Green
“I AM GRATEFUL FOR THE OPPORTUNITY TO EXPERIENCE A DAY IN THE REAL ESTATE INDUSTRY IN NEW YORK. I LEARNED THE IMPORTANCE OF CONFIDENCE AND CHOOSING A JOB YOU’RE PASSIONATE ABOUT.” High School Mentee Robert F. Wagner Jr. Secondary School
EDUCATION • Alumni Association of the University of Virginia • The Brearley School • Chatham Education Foundation • Montana State University Billings Foundation • Navigate the Maze to Achievement, Inc.
HEALTH • Alzheimer's Association • Hailey's Hope Foundation • Leukemia & Lymphoma Society
POVERTY / HUNGER • City Harvest, Inc. • Covenant House • Habitat for Humanity • Rochester Area Interfaith Hospitality Network, Inc. • St. Francis Food Pantries and Shelter
• Make-A-Wish Foundation of Connecticut • Melanoma Research Alliance Foundation • Memorial Sloan Kettering Cancer Center • National Multiple Sclerosis Society • New York University Cancer Institute • Ronald McDonald House of New York, Inc. • St. Jude Children's Research Hospital • Susan G. Komen • The John Ritter Foundation
• The New York Public Library • Pennsylvania State University
• Pomfret School, Inc. • Preston High School • Syracuse University • Trustees of the Lawrenceville School • Trustees of Tufts College
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