Vornado Realty Trust · NYSE:VNO
Vornado Realty Trust — ESG Presentation (April 2021)
48 slides from Vornado Realty Trust's sustainability presentation, Apr 12, 2021
Slide 1: Environmental, Social & Governance 2020
ENVIRONMENTAL, SOCIAL & GOVERNANCE 2020
Slide 2: Table of Contents
TABLE OF CONTENTS 1 Key Achievements in Sustainability 2 From Our Chairman ENVIRONMENTAL 3 Vision 2030 Roadmap 4 Task Force on Climate-Related Financial Disclosures (TCFD) 6 Resilience and Adaptation 7 Energy Efficiency Targets 8 Goals and Progress 9 Environmental Results 2020 11 Environmental Resul
Slide 3: Key Achievements in Sustainability
KEY ACHIEVEMENTS IN SUSTAINABILITY NAREIT LEADER IN THE LIGHT AWARD 2020 11TH YEAR IN A ROW GLOBAL REAL ESTATE SUSTAINABILITY BENCHMARK GREEN STAR RANKING 2020 8TH YEAR IN A ROW TOP QUINTILE PERFORMER “A” SCORE FOR PUBLIC DISCLOSURE EP100 MEMBER COMMITTED TO DEPARTMENT OF ENERGY’S ISO 50001 READY PR
Slide 4: From Our Chairman
FROM OUR CHAIRMAN ENVIRONMENTAL, SOCIAL & GOVERNANCE (“ESG”) The various crises we endured in 2020 – economic, public health, social justice, and climate – underscore the importance and urgency of ESG. ESG remains a priority for all of us at Vornado and is further supported with oversight from our B
Slide 5: Vision 2030 Roadmap
VISION 2030 ROADMAP* WE WILL ALWAYS PRIORITIZE ENERGY EFFICIENCY We are proud of our accomplishments in energy efficiency thus far, with 24% of same-store energy consumption reduced since 2009. We will extend our energy efficiency goal to 50% below 2009 levels by 2030. This goal includes both landlo
Slide 6: Task Force on Climate-Related Financial Disclosures (TCFD)
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)* GOVERNANCE Vornado became a signatory of the TCFD in February 2019, among the first American real estate companies to do so. Our Board’s Corporate Governance and Nominating Committee oversees environmental matters, including climate change
Slide 7: TCFD: Transitional Risks and Opportunities Scenario Analysis
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)* TRANSITIONAL RISKS AND OPPORTUNITIES: SCENARIO ANALYSIS - RCP 2.6 We identify RCP 2.6 as our short-term transitional scenario, due to the regulations in the cities where we do business, as well as our carbon neutrality goal. Our Vision 2030
Slide 8: Resilience and Adaptation
Our properties are located in regions with recent history of climate-related events. As we assess our exposure to climate risk under varying scenarios, we understand that measures in property resilience are measures in adaptation. Our development project at 512 West 22nd Street exemplifies how our n
Slide 9: Energy Efficiency Targets
BUILDING ENERGY USAGE TREND 2020 U sa g e ( kW h ) ENERGY EFFICIENCY TARGETS* What’s Working • Technical Assessments: Our New York City, Chicago, and San Francisco properties over 50,000 SF have undergone ASHRAE Level II Energy Audits and Retro-commissioning, both of which identify existing deficien
Slide 10: Goals and Progress
GOALS AND PROGRESS* * Any information relating to goals and progress against goals was not subject to Deloitte & Touche LLP’s review and, accordingly, Deloitte & Touche LLP does not express a conclusion, opinion, or any form of assurance on such information. ENERGY MANAGEMENT PROCUREMENT AND RESPONS
Slide 11: Environmental Results 2020
ENVIRONMENTAL RESULTS 2020 ENERGY EFFICIENCY INVESTMENT* CUMULATIVE SAVINGS SINCE 2012* $16.8 84,002 16.5MILLION spent on Energy Efficiency Capital Projects since 2012 (excludes new developments) mWh of cumulative electric savings MLBS of steam savings MILLION SF of our New York portfolio has underg
Slide 12: Environmental Results 2020 Continued
SCOPE 1 Oil & Natural Gas Heating and Cooling Cogeneration SCOPE 2 District Steam Base Building Electricity Submetered Tenant Utilities SCOPE 3 Direct Metered Tenant Utilities ENVIRONMENTAL RESULTS 2020 Continued The consumption and emissions data sets on this page are presented on an absolute basis
Slide 13: Environmental Results by Region
ENVIRONMENTAL RESULTS BY REGION CHICAGO SAN FRANCISCONEW YORK 21.7 MILLION SF 82% of total region (including retail); 30 buildings 3.7 MILLION SF Over 99% of total region 1.8 MILLION SF 100% of total region; 3 buildings 3% 13% 4% 56% San Fran 3% 5% 15% 6% 5% 27% 49% Chicago 3% 0 10% 4% 12% 22% 49% N
Slide 14: Energy Management Planning Cycle
SET GOALS* Our Vision 2030 goal is to achieve carbon neutrality in our buildings by 2030, which includes a 50% energy efficiency goal. We use carbon intensity (MT CO2e PSF) as the metric to measure against our carbon neutrality goal, and energy intensity (kBtu/SF) against our energy efficiency goal.
Slide 15: Sustainable Development
SUSTAINABLE DEVELOPMENT At Vornado, we value our employees as our greatest asset. Human capital management is critical to our success. To that end, we know that for our tenants to attract and retain the most innovative, collaborative, and talented people, they must be located in buildings that are s
Slide 16: Sustainable Development Continued
SUSTAINABLE DEVELOPMENT Continued THE FARLEY BULDING Vornado converted this iconic Beaux Arts New York City fixture into a best- in-class creative office hub, on par with the horizontal campuses of California, which are characterized by large floor plates and abundant green spaces. The adaptive reus
Slide 17: Recycling
RECYCLING Vornado works closely with industry service providers and regulators to understand how our buildings’ waste can best support the global recycling market. We educate our tenants on best practice strategies to reduce overall waste, and we keep material out of the landfill by diverting recycl
Slide 18: Health and Wellness
GRI 416-1HEALTH AND WELLNESS MISSION TO IMPROVE OCCUPANT HEALTH As a building owner and landlord to thousands of business tenants, we are responsible for maintaining and improving the health of our indoor environments, as well as communicating the value of our health and wellness programs with consi
Slide 19: COVID-19 Response
COVID-19 RESPONSE Our leadership and COVID-19 response team worked tirelessly to ensure our buildings could remain open for business while providing a healthy and safe indoor environment for our employees, tenants, visitors, and contractors. We uphold Fitwel’s Viral Response Module framework to guid
Slide 20: Tenant & Community Development
FOOD, CULTURE, WELLNESS, AND ENTERTAINMENT MOBILE TENANT ACCESS BUILDING SUSTAINABILITY INITIATIVES MOBILE VISITOR REGISTRATION SAFETY CRITICAL INFORMATION AND EMERGENCY PREPAREDNESS Exclusive Vornado tenant deals and promotions from onsite and neighborhood restaurants, gym classes, spa specials, lo
Slide 21: Our People
OUR PEOPLE Our employees are the foundation of our human capital. We provide training and education, promote career and personal development, and encourage innovation and engagement to foster their talent and growth. Vornado upholds strict policies against bribery and corruption, child labor, and fo
Slide 22: BMS / Green Cleaning
BMS / GREEN CLEANING 65 100%BMS SUPERVISORS AND SENIOR-LEVEL STAFF TRAINED in GS-42 green cleaning standards. OF BMS EMPLOYEES TRAINED MONTHLY IN COMPLIANCE with training requirements in the OSHA standards. EMPLOYEE HEALTH & SAFETY, EMPLOYEE TRAINING 371HOURS OF TRAINING,per employee, annually. GRI
Slide 23: BMS / Green Cleaning Continued
BMS / GREEN CLEANING Continued In 2020, the BMS Green Clean program fully aligned with Fitwel’s Viral Response Module (VRM). Highlights from our green cleaning include the following: symptom checking and temperature reading were established and executed at the building level for all staff. Operation
Slide 24: BMS / Green Cleaning 2020 Supply Purchase Impact
BMS / GREEN CLEANING 2020 SUPPLY PURCHASE IMPACT Continued 69 TONS from chemical concentrates Packaging Reduction 531,551 GAL from chemical-free T3 scrubber 1,500 GAL from chemical-free T3 scrubber Chemical Use Reduction Revolution liners use about 50% postconsumer recycled plastic. By purchasing th
Slide 25: Supply Chain
SUPPLY CHAIN VENDOR CODE OF CONDUCT To extend our Business Code of Conduct to include our suppliers, we require compliance with Vornado’s Vendor Code of Conduct (CoC) as part of our standard form of vendor contract. In addition to conveying our requirements on business ethics, integrity, and anti-br
Slide 26: Cybersecurity
CYBERSECURITY Vornado is committed to rigorous cybersecurity protocols and employs a multifaceted approach for protecting our data and the computing environment utilized by our employees and external vendors. We engage with multiple third-party services that provide in-depth 24/7 network monitoring
Slide 27: Social Results 2020
SOCIAL RESULTS 2020 TENANT OUTLOOK OUR 2019 SURVEYS COVERED 57% OF OUR OFFICE PORTFOLIO. We ask tenants to rate their experience on a scale of 1-10 (10 being the most positive). We survey our tenants as part of our stakeholder engagement and our customer service. Our results are reviewed internally
Slide 28: Social Results 2020 Employee Data
† GRI 401-1: This table covers Vornado corporate employees only at December 31, 2020 and does not include the BMS employees, or any employees of Alexander's. § These figures represent the diversity of our organization and are inclusive of the following racial minority groups: Black/African American,
Slide 29: Vornado Volunteers
VORNADO VOLUNTEERS Through employee engagement and social impact assessment, Vornado Volunteers identified the following localized community priorities: economically and socially disadvantaged populations, environmental restoration and protection, and health and wellness. In 2020, Vornado Volunteers
Slide 30: Our Partnerships
OUR PARTNERSHIPS NATIONAL • EPA ENERGY STAR Partner • US Green Buildings Council Corporate Member, Greenbuild Program Working Group (Co-Chair) • Urban Land Institute, Center for Sustainability and Economic Performance (Board) • NAREIT Real Estate Sustainability Council • Real Estate Roundtable, Sust
Slide 31: ESG Materiality Assessment
IMPACT ON BUSINESS SUCCESS IM P O R TA N C E T O S TA K E H O LD E R S & C O N S U M E R S Board Engagement on ESG Executive Compensation Net Zero Transition Health and Wellness Sustainable Development Energy, Water, and Waste Management Diversity, Equity, and Inclusion (DEI) and Human Capital Manag
Slide 32: ESG Governance
ESG GOVERNANCE ESG at Vornado is vertically integrated and core to our business, starting with the Board and impacting every division. Sustainability – our Environmental arm – is led by Daniel Egan, SVP of Sustainability & Utilities, who reports to Vornado’s Chief Operating Officer. Vornado’s Sustai
Slide 33: Global Reporting Initiative (GRI) Index
Management of Vornado Realty Trust is responsible for the completeness, accuracy, and validity of the disclosures in the Global Reporting Initiative Index (the “sustainability disclosures”) included within the Environmental, Social, and Governance 2020 Report of Vornado Realty Trust. Management is r
Slide 34: GRI 102: General Disclosures
GRI 102: GENERAL DISCLOSURES GLOBAL REPORTING INITIATIVE (GRI) INDEX DISCLOSURE DESCRIPTION RESPONSE STRATEGY 102-14 Statement from senior decision maker p. 2 of this report ETHICS AND INTEGRITY 102-16 Values, principles, standards, and norms of behavior Our Code of Business Conduct and Ethics promo
Slide 35: GRI 102: General Disclosures Continued
GLOBAL REPORTING INITIATIVE (GRI) INDEX GRI 102: GENERAL DISCLOSURES Continued DISCLOSURE DESCRIPTION RESPONSE STAKEHOLDER ENGAGEMENT 102-40 List of stakeholder groups ESG Materiality Assessment, p. 29 of this report 102-41 Collective bargaining agreements 79.02% of our total 2,899 employees are cov
Slide 36: Global Reporting Initiative (GRI) Index
GLOBAL REPORTING INITIATIVE (GRI) INDEX DISCLOSURE DESCRIPTION RESPONSE 103-1 Explanation of the material topic and its boundary The ESG topics listed in GRI 102-47 are deemed material based on our recurring stakeholder engagement, which is described on p. 29 of this report. Reporting Boundaries for
Slide 37: GRI Index: Economic and Environmental Topics
GLOBAL REPORTING INITIATIVE (GRI) INDEX GRI TOPICS DISCLOSURE DESCRIPTION RESPONSE ECONOMIC GRI 201: Economic Perf. 2020 201-2 Financial implications and other risks and opportunities due to climate change TCFD Scenario analysis, pp. 4-5 of this report, and SASB Disclosure on climate change adaptati
Slide 38: GRI Index: Social Topics
GLOBAL REPORTING INITIATIVE (GRI) INDEX GRI TOPICS DISCLOSURE DESCRIPTION RESPONSE SOCIAL GRI 401: Employment 2020 401-1 New employee hires and employee turnover Social Results 2020, p. 26 of this report; BMS / Green Cleaning, p. 20 of this report. 401-2 Full-time benefits not provided to temporary/
Slide 39: Assurance Statement - GRI Index
Deloitte & Touche LLP 695 E. Main Street Stamford, CT 06901 USA Tel: +1 203 708 4000 Fax: +1 203 708 4797 www.deloitte.com We have reviewed management of Vornado Realty Trust’s assertion that the sustainability disclosures in the Global Reporting Initiative Index included within the accompanying Env
Slide 40: Appendix A - SASB
APPENDIX A – SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) CODE ACCOUNTING METRIC TOTAL NEW YORK theMART** 555 CALIFORNIA** OTHER UNIT OF MEASURE IF-RE-130a.1 Energy consumption data coverage as a percentage of floor area, by property subsector. 100% 100% 100% 100% 100% Percentage (%) by floor ar
Slide 41: Appendix A - SASB Water Management
APPENDIX A – SASB CODE ACCOUNTING METRIC TOTAL NEW YORK theMART** 555 CALIFORNIA** OTHER UNIT OF MEASURE IF-RE-140a.1 Water withdrawal data coverage as a percentage of total floor area, by property subsector. 100% 100% 100% 100% 100% Percentage (%) by floor area (SF) IF-RE-140a.1 Percentage of floor
Slide 42: Appendix A - SASB Tenant Sustainability Impacts
APPENDIX A – SASB CODE ACCOUNTING METRIC TOTAL NEW YORK theMART** 555 CALIFORNIA** OTHER UNIT OF MEASURE IF-RE-410a.1 Percentage of new leases that contain a cost recovery clause for resource efficiency-related capital improvements and associated leased floor area, by property subsector.† (1) (2) (1
Slide 43: Appendix A - SASB Climate Change Adaptation
CODE ACCOUNTING METRIC TOTAL NEW YORK theMART** 555 CALIFORNIA** OTHER UNIT OF MEASURE IF-RE-450a.1 Area of properties located in FEMA Special Flood Hazard Areas or foreign equivalent, by property subsector. 1,867,000 1,051,000 0 0 816,000 Square Feet IF-RE-450A.2 DESCRIPTION OF CLIMATE CHANGE RISK
Slide 44: Assurance Statement - SASB Index
Deloitte & Touche LLP 695 E. Main Street Stamford, CT 06901-2141 USA Tel: +1 203 708 4000 Fax: +1 203 705 5455 www.deloitte.com We have examined management of Vornado Realty Trust’s assertion that the following specified metrics included in Appendix A of the accompanying Environmental, Social and Go
Slide 45: Assurance Statement - SASB Index Continued
The preparation of the specified metrics in Appendix A of the Environmental, Social and Governance 2020 Report requires management to interpret the criteria, make determinations as to the relevancy of information to be included, and make estimates and assumptions that affect reported information. Me
Slide 46: UN Sustainable Development Goals
UN SUSTAINABLE DEVELOPMENT GOALS* Vornado supports the United Nations Sustainable Development Goals (UNSDGs) as a global framework to achieve a more sustainable future for the planet, and improve quality of life for all. As a corporate citizen we uphold and contribute to each of the 17 goals through
Slide 47: UN Sustainable Development Goals Continued
9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capa- bilit
Slide 48: Vornado Realty Trust
VORNADO REALTY TRUST esg.vno.com