SL Green Corporate Social Responsibility 2019

SL GREEN REALTY CORP. 2019 SUSTAINABILITY REPORT

CEO LETTER

KEY ACHIEVEMENTS

ENVIRONMENTAL

SOCIAL

GOVERNANCE

019

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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