Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Waste Reduction
• Water Conservation
• Tenant Well-being
• Resiliency
• Technology Implementation

Environmental Achievements

• 42,000 MWh reduction in energy consumption (4% reduction)
• More than 20,000 tons of recycled materials
• 920,000 kWh of solar energy produced at Bergen Town Center
• 6.2 MW cogeneration plant at One Penn Plaza providing up to 60% of building's electricity and 30% of steam
• Over 83% diversion rate at Merchandise Mart, recycling 6,500 tons of material
• 17% year-over-year water consumption reduction at 20 Broad Street, saving $17,000 annually

Social Achievements

• More than 350 green leases signed
• Green cleaning services at all properties
• Sustainability training for all building operators and managers
• Tenant sustainability meetings and outreach programs
• LEED CI Gold certification for headquarters offices in Washington, DC

Governance Achievements

• Integration of sustainability CAPEX efforts with automated demand response capabilities
• Third-party verification of data by Paladino & Company
• Corporate sustainability policy outlined and available on website

Climate Goals & Targets

Environmental Challenges

• Reducing energy consumption and carbon footprint across the portfolio
• Improving waste reduction and recycling rates
• Maintaining water efficiency across all properties

Mitigation Strategies

• Energy Efficiency CAPEX Fund investments in building retrofits
• Implementation of automated demand response technologies
• Strategic waste management plan including tenant education and improved infrastructure
• Portfolio-wide retrofitting of plumbing fixtures and leak detection program

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of low environmental impact cleaning products
• Use of waste liners made by Revolution Bag Company (closed-loop recycling)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4, LEED, ENERGY STAR, GRESB

Certifications: LEED, ENERGY STAR, Green Seal (BMS)

Third-party Assurance: Paladino & Company

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• ENERGY STAR Partner of the Year 2013
• NAREIT Leader in the Light award (4th year in a row)
• EPA’s National Buildings Competition win for 20 Broad Street

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Waste Reduction
• Water Reduction
• Tenant Engagement
• Community Development
• Human Capital Management
• Diversity, Equity, & Inclusion
• Employee Well-being
• Supply Chain Sustainability
• Technology & Cybersecurity
• Board Governance

Environmental Achievements

• Procured 100% renewable energy credits (RECs) for electricity directly managed by Vornado in key markets.
• Achieved a 28% reduction in overall energy consumption across its in-service office portfolio since 2009.
• Reached a 64% waste diversion rate across its in-service office portfolio.
• Achieved a 30% water reduction across its portfolio against a 2019 baseline.
• Reduced Scope 1 & 2 location-based and market-based emissions by 1% and 54% respectively over its 2019 baseline.
• Completed embodied carbon studies for The Farley Building and PENN 1, achieving significant embodied carbon reductions in these projects.

Social Achievements

• Expanded services focused on employee health and well-being with continuing education and career development.
• Supported local organizations through the Vornado Volunteers program.
• Launched WorkLife, an amenity ecosystem at THE PENN DISTRICT, focused on tenant, employee, and community well-being.
• Added Mr. Raymond J. McGuire to the Board of Trustees.

Governance Achievements

• Continued assignment of ESG performance metrics as part of the Executive Compensation program.
• Maintained a Carbon Disclosure Project (CDP) response score of "B".

Climate Goals & Targets

Environmental Challenges

• Increased eGRID factors in 2021, impacting location-based emission progress.
• Supply chain disruptions.
• Managing tenant-controlled energy consumption.
• Climate-related risks (physical and transitional).

Mitigation Strategies

• Investing in renewable energy certificates (RECs).
• Implementing energy efficiency projects and tenant engagement.
• Expanding the Vendor Integrity Program (VIP) to assess ESG criteria across the value chain.
• Executing sustainability-linked transactions.
• Implementing resilience and adaptation measures in building design and operations.
• Developing a comprehensive embodied carbon framework for new construction and renovations.

Supply Chain Management

Supplier Audits: Assessments performed on suppliers representing 60% of annual spend.

Responsible Procurement

• Vendor Code of Conduct
• Vendor Integrity Program (VIP)
• Sustainability requirements in tenant fit-outs

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Sea level rise

Transition Risks

• Regulatory changes
• Market shifts
• Increased energy costs

Opportunities

• Energy efficiency improvements
• Renewable energy investments
• Sustainable financing mechanisms

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: LEED, ENERGY STAR, Fitwel, CIMS-GB, GS-42

Third-party Assurance: Deloitte & Touche LLP

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)

Vornado's initiatives contribute to these goals through various programs and practices detailed in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 12th NAREIT Leader in the Light Award
• ENERGY STAR Partner of the Year with Sustained Excellence
• GRESB Global “Sector Leader” for Diversified Office/Retail REITs
• Energy New York Awards
• BEVY Leadership Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Waste Reduction
• Water Conservation
• Tenant Engagement
• Employee Well-being
• Community Development
• Supply Chain Sustainability
• Governance

Environmental Achievements

• 88% reduction in embodied carbon emissions at PENN 1 redevelopment (86,012 tons CO2e)
• 75% reduction in embodied carbon emissions at PENN 2 renovation (60.3 million kg CO2e)
• 32% reduction in overall energy consumption across in-service office portfolio (compared to 2009 baseline)
• 65% waste diversion rate across in-service office portfolio
• 100% renewable energy credits (RECs) procured for electricity in key markets
• Expanded organics collection program to 100% of in-service office portfolio (27 million SF)

Social Achievements

• Expanded WorkLife amenity program to Chicago and San Francisco
• Vornado Volunteers program supported local organizations
• Achieved the first ActiveScore Gold-certified commercial project in the US (Farley Building)
• PENN 11 awarded BOMA Pinnacle Award for Best Historical Building of the Year
• High tenant satisfaction scores (implied)

Governance Achievements

• Sustainability performance metrics included in Executive Compensation program
• Corporate Governance and Nominating Committee oversees sustainability, including climate change risk
• Top quintile performance in S&P Global Corporate Sustainability Assessment (CSA)

Climate Goals & Targets

Environmental Challenges

• Limited opportunities to install on-site renewables in existing portfolio
• Lack of control over end-users' water consumption
• Increased water costs due to infrastructure maintenance
• Compliance with Local Law 97 (LL97) in NYC
• Supply chain disruptions (implied)

Mitigation Strategies

• Procuring off-site RECs to offset emissions
• Retrofitting plumbing fixtures and modernizing HVAC systems
• Implementing water reuse efforts
• Comprehensive assessment of LL97 compliance
• Implementing energy efficiency projects and operational optimizations
• Working with Thalo Labs to accelerate energy reduction goals

Supply Chain Management

Supplier Audits: Every three years (Vendor Integrity Program)

Responsible Procurement

• Purchasing policy for environmentally safe and certified products
• Vendor Code of Conduct
• Supplier diversity program (using Supplier Gateway)

Climate-Related Risks & Opportunities

Physical Risks

• Stormwater surge
• Flood risk
• Power loss
• Degradation of air quality
• Extreme precipitation
• Sea level rise
• Freshwater scarcity

Transition Risks

• Increased legislation limiting development
• Increased energy costs
• Increased mitigation costs
• Changing perceptions of office amortization requirements
• Increased stakeholder concern
• Capital investment required for energy efficiency

Opportunities

• Reduced operating costs
• Higher value buildings
• Increased collaboration with tenants
• New revenue streams
• ESG-focused financing
• Improved air quality
• Reduced costs to adapt buildings

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: LEED, ENERGY STAR, BOMA 360, Fitwel, ActiveScore, Green Seal (BMS)

Third-party Assurance: Deloitte & Touche LLP

UN Sustainable Development Goals

• Goal 5
• Goal 6
• Goal 7
• Goal 9
• Goal 11
• Goal 12
• Goal 3

Initiatives contributing to gender equality, water efficiency, renewable energy, sustainable infrastructure, safe transportation, waste reduction, and health and well-being

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 13th NAREIT Leader in the Light Award
• Energy Star Partner of the Year with Sustained Excellence
• #1 in GRESB among peers
• BOMA Pinnacle Award (PENN 11)
• REBNY Retail Development/Project of the Year Award (Moynihan Train Hall)