Vornado Realty Trust · NYSE:VNO
Vornado Realty Trust — ESG Presentation (April 2023)
60 slides from Vornado Realty Trust's sustainability presentation, Apr 10, 2023
Slide 1: Environmental, Social & Governance 2022
Environmental, Social & Governance 2022 April 2023
Slide 2: Table of Contents
Table of Contents Environmental Introduction Vision 2030 Environmental Goals & Progress Environmental Results 2022 Environmental Results by Region Energy Efficiency Programs Energy Progress Sustainable Development Climate Risk & Adaptation Responsible Recycling 5 6 7 8 9 10 11 13 14 17 Environmental
Slide 3: From Our Chairman
1 We have expanded services focused on the health and well-being of our best- in-class employees with continuing education and career development. Through our Vornado Volunteers program, our employees supported local organizations including Habitat for Humanity, Breaking Ground, the Central Park Con
Slide 4: Key Achievements in 2022
2Key Achievements in 2022 GRESB Sector Leader 12 Time Leader in the Light Award Winner • National Association of Real Estate Investment Trusts (NAREIT) respected Leader in the Light Award for sustainability for diversified REITs for the 12th time. • This annual award honors NAREIT member companies t
Slide 5: 2022: Another Year of Excellence
3 S&P Global Corporate Sustainability Assessment (CSA) Vornado performed in the top quintile for the Real Estate Industry in the S&P Global Corporate Sustainability Assessment (CSA). Carbon Disclosure Project Vornado maintained a Carbon Disclosure Project (CDP) response score of "B" with improvement
Slide 6: ESG Governance
4 Leasing Human Resources Risk Management Acquisition/Capital Markets Property Management/ Engineering Development and Construction Information Technology Legal Finance Community Marketing Tenants Employees DE&I ESG Governance GRI 2-6, 2-9, 2-10, 2-12, 2-13, 2-14. 3-1, 3-2, 3-3 Corporate ESG Team Bo
Slide 7: Environmental
Environmental is our progress on this commitment in 2022 Energy Reduction Goal Energy efficiency is the initial and prioritized step towards achievement of carbon neutrality. Vornado has a longstanding commitment of increasing its energy efficiency 50% by 2030 using a 2009 base year. 28% Embodied Ca
Slide 8: Vision 2030
Vision 2030* *Any information relating to forward-looking statements, targets, goals, and progress against goals was not subject to Deloitte & Touche LLP's review and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information. RecoverReduce Renewab
Slide 9: Environmental Goals & Progress
*Any information relating to forward-looking statements, targets, goals, and progress against goals was not subject to Deloitte & Touche LLP's review and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information. * *See pages 46 and 47 for additio
Slide 10: Environmental Results 2022
Environmental Results 2022 Certifications and Ratings** 33+ Million SF of ENERGY STAR rated 100% of Vornado Office Portfolio 27+ Million SF of LEED- Certified properties 23+ Million SF of LEED Gold or higher 0 2019 2020 2021 2022 2000000 2500000 3000000 3500000 Cubic Meters 3,187,066 Cubic Meters 2,
Slide 11: Environmental Results by Region
2022 Environmental, Social & Governance | 9 34% 12% 2% 31% San Fran 5% 0% 17% 22% 1% 13% 4% 28% Chicago 8% 24% 26% 7% 7% 45% NYC 2%0% 13% Environmental Results by Region Chicago San FranciscoNew York City 95% of Total Region (including retail) 21.3 Million SF; 31 buildings 100% of Total Region 3.7 m
Slide 12: Energy Efficiency Programs
Energy Efficiency Programs* GRI 3-3 New BAS with Tenant Interface Leads Industry 1290 Avenue of the Americas recently underwent a Building Automation System (BAS) upgrade to incorporate industry best practices for energy efficiency and cybersecurity. As part of the improvement, Vornado piloted the i
Slide 13: Energy Progress
Market Based Emissions 2019 2020 2021 2022 0 0.0020 0.0040 0.0060 0.0050 0.0008 0.0018 0.0009 Location-Based Emissions 0.0050 0.0008 0.0048 0.0009 2019 2020 2021 2022 0 0.0020 0.0040 0.0060 Energy Progress* GRI 3-3 Vornado’s commitment to carbon neutrality and associated emissions reductions targets
Slide 14: Energy Progress: Renewable Energy Procurement
Energy Progress Renewable Energy Procurement In June 2021, Vornado contracted to procure RECs to document our commitment to renewable energy and the environment, sourced from hydro energy facilities located throughout New York State. In 2022, we transitioned our San Francisco buildings to 100% clean
Slide 15: Sustainable Development
Sustainable Development Embodied Carbon As part of our redevelopment of THE PENN DISTRICT, and our ongoing work to achieve our carbon emissions reduction goals, Vornado performed life cycle assessments of PENN 1, PENN 2, and The Farley Building to evaluate the embodied carbon emissions from the rede
Slide 16: Climate Risk & Adaptation
Climate Risk & Adaptation GRI 2-23, 3-3, 201-2 Task Force on Climate-Related Financial Disclosures (TCFD)* *For more information on our climate risk assessment program please reference the subsequent Climate Risk & Adaptation pages including Resilience and Adaption, ESG Governance, Risk Assessment &
Slide 17: Transitional Risks and Opportunities: Scenario Analysis
Transitional Risks and Opportunities: Scenario Analysis Risks Policy and legal: Capital investment towards energy efficiency or decarbonization. Policy and legal: Increased legislation limiting development. Technology: Increased energy costs due to full transition of grid-supplied energy to renewabl
Slide 18: Climate Risk & Adaptation: Resilience and Adaptation
Climate Risk & Adaptation Resilience and Adaptation Mechanical Equipment When a new building is in a flood zone or when feasible, we place all critical mechanical equipment and electrical switchgear above grade to avoid flood damage. Green Roofs & Stormwater Retention Our new roof landscape systems
Slide 19: Responsible Recycling
Responsible Recycling Vornado equips our building teams and tenants with the tools, resources, policies, and education necessary for successful waste diversion programs. GRI 3-3, 306-1, 306-2, 306-3, 306-4, 306-5 Roadmap to Zero Waste Vornado’s path to zero waste is multipronged, emphasizing the ove
Slide 20: Social
Social Social Table of Contents Tenant Engagement Tenant & Community Development Human Capital Management Diversity, Equity, & Inclusion Vornado Volunteers Health & Wellness Partnerships & Participation Honors & Recognition BMS & Green Cleaning 19 20 23 24 26 28 29 30 31 Community Building and Volun
Slide 21: Tenant Engagement
2022 Environmental, Social & Governance | 19Tenant Engagement* GRI 2-6, 2-29, 3-3, 306-1, 401-1, 405-1 Tenant engagement at Vornado is paramount. Our approach with our tenants involves forging relationships and partnerships that lead to transformative projects, improving the health and wellness of o
Slide 22: THE PENN DISTRICT – A Connected Campus
2022 Environmental, Social & Governance | 20 THE PENN DISTRICT – A Connected Campus Penn Plaza, now known as THE PENN DISTRICT, has undergone a major redevelopment to transform the neighborhood into a vibrant and modern mixed-use campus. The redevelopment will include 10 acres of new paving and land
Slide 23: Creating a Leafier District for Everyone
2022 Environmental, Social & Governance | 21 Creating a Leafier District for Everyone The landscape development plan for THE PENN DISTRICT is a significant part of the area’s revitalization, aiming to create an inviting and beautiful environment that can be enjoyed by all New Yorkers. The plan featu
Slide 24: THE MART
2022 Environmental, Social & Governance | 22 THE MART THE MART has undergone a major redevelopment. As the largest, publicly owned commercial office building in the United States, the focus is on creating a vibrant and mixed-use campus in one multi-purpose building. WorkLife has been expanded to THE
Slide 25: Human Capital Management
2022 Environmental, Social & Governance | 23Human Capital Management Employee Health & Benefits Financial • 401(k) and Employer Match • Tuition Reimbursement • Employee Referral Bonus • Commuter Benefits • Cellular Discounts Parental Benefits • Dependent Care Flexible Spending Account • Maternity an
Slide 26: Diversity, Equity, & Inclusion
2022 Environmental, Social & Governance | 24 GRI 3-3 Diversity, Equity, & Inclusion Vornado operates in a diverse and inclusive environment that empowers the individual and enriches the employment experience. As a business leader in one of the most diverse markets in the world, we have a responsibil
Slide 27: Diversity, Equity, & Inclusion: Employee Interviews
2022 Environmental, Social & Governance | 25 GRI 3-3 Diversity, Equity, & Inclusion As part of our DE&I initiatives, interviews with Vornado employees were conducted to better understand where our efforts have made an impact and where we should focus future efforts. Here’s what they had to say: Deir
Slide 28: Vornado Volunteers
2022 Environmental, Social & Governance | 26Vornado Volunteers Breaking Ground Vornado partnered with Breaking Ground to provide intervention and support services for the homeless population around THE PENN DISTRICT. Michael Franco, Vornado’s President and CFO, has been a Breaking Ground Director si
Slide 29: Vornado Volunteers
2022 Environmental, Social & Governance | 27Vornado Volunteers GRI 3-3, 413-1 Through employee engagement and social impact assessment, Vornado Volunteers identifies local community organizations focused on economically and socially disadvantaged populations, environmental restoration and protection
Slide 30: Health & Wellness
2022 Environmental, Social & Governance | 28 Mission to Improve Occupant Health Vornado is committed to the health of all our employees and our occupants. We successfully maintained our Fitwel Viral Response Module for our portfolio in 2022, based on our building management and safety practices, alo
Slide 31: Partnerships & Participation
2022 Environmental, Social & Governance | 29Partnerships & Participation National • EPA ENERGY STAR Partner • U.S. Green Building Council Corporate Member, Greenbuild Program Working Group (Co-Chair) • Urban Land Institute, Greenprint Center for Building Performance • NAREIT Real Estate Sustainabili
Slide 32: Honors & Recognition
2022 Environmental, Social & Governance | 30 Vornado is proud to support our employees and building teams to achieve our organizational goals, support career development, and honor the work accomplished throughout their careers. Vornado celebrates the achievements of all of our employees, who have s
Slide 33: BMS & Green Cleaning
2022 Environmental, Social & Governance | 31BMS & Green Cleaning* Employee Health & Safety, Employee Health & Safety Training Led by BMS, at Vornado, we ensure a healthy indoor environment through our industry-leading green cleaning program. BMS is Vornado’s janitorial division and comprises our ess
Slide 34: Governance Table of Contents
Governance Table of Contents ESG Materiality Assessment Risk Assessment & Analysis Supply Chain Technology & Cybersecurity Board Planning 33 34 35 36 38
Slide 35: ESG Materiality Assessment
2022 Environmental, Social & Governance | 33ESG Materiality Assessment Stakeholder Group Nature of Engagement Frequency of Engagement Key Topics and Concerns in 2022 2023 Plans Our Tenants Active relationship through our property management teams; meetings and discussions on tenant environmental per
Slide 36: Risk Assessment & Analysis
2022 Environmental, Social & Governance | 34Risk Assessment & Analysis Vornado undergoes a risk assessment and analysis to understand the impact of our activities, the state of the industry and our stakeholder concerns to determine our strategy. Our internal auditor works with our Management and the
Slide 37: Supply Chain
2022 Environmental, Social & Governance | 35 Vendor Code of Conduct We require that our suppliers comply with Vornado’s Vendor Code of Conduct. In addition to conveying our requirements on business ethics, integrity, and anti-bribery, we require our suppliers to comply with applicable laws and regul
Slide 38: Technology & Cybersecurity
2022 Environmental, Social & Governance | 36Technology & Cybersecurity Vornado’s Integrated Technology Services Team is the only such group to exist among U.S. REITs. As New York State licensed providers, the team is certified by many of the largest building technology companies. Our mission is to i
Slide 39: Base Building Security & Networks
2022 Environmental, Social & Governance | 37 Base Building Security & Networks: • Turnstiles and building access • Exterior and interior cameras and recording • Vornado’s own Internet of Things (IoT) on the converged network • Building management systems, elevators, submeters • Advanced visitor mana
Slide 40: Board Planning
2022 Environmental, Social & Governance | 38Board Planning Beatrice Hamza Bassey Ms. Beatrice Hamza Bassey joined our Board in 2020. She has served as the Group General Counsel, Chief Compliance Officer, and Corporate Secretary of Atlas Mara Ltd., an African-focused banking group, since February 201
Slide 41: Appendix Table of Contents
39Appendix Table of Contents Environmental Results 2022 Diversity, Equity, & Inclusion Global Reporting Initiative (GRI) Index Assurance Statement - GRI Index Sustainability Accounting Standards Board (SASB) Index Assurance Statement - SASB Index UN Sustainable Development Goals Glossary 40 41 42 48
Slide 42: Environmental Results 2022
2022 Appendix | 40 SCOPE 1: 167,573 MWh Oil & Natural Gas Heating and Cooling Cogenerated Fuels SCOPE 2: 529,791 MWh District Steam Base Building Electricity Submetered Tenant Utilities TOTAL: 697,365 MWh SCOPE 3: 141,304 MWh Direct Metered Tenant Utilities 29,864 Environmental Results 2022 GRI 302-
Slide 43: Diversity, Equity, & Inclusion
2022 Appendix | 41 Total Employees % All Employees Perm- anent Temp- orary Full- Time Part- Time Racial Minorities* (%)Gender All Employees Male 2400 64.99% 2054 346 1936 464 74.79% Female 1293 35.01% 1145 148 957 336 77.73% Age All Employees < 30 Years Old 517 14.00% 365 152 353 164 83.17% 30-50 Ye
Slide 44: Assurance Statement - GRI Index
2022 Appendix | 42 Management of Vornado Realty Trust is responsible for the completeness, accuracy, and validity of the disclosures in the GRI Index included within the Environmental, Social & Governance Report of Vornado Realty Trust as of and for the year ended December 31, 2022. Management is re
Slide 45: Global Reporting Initiative (GRI) Index
2022 Appendix | 43 Page 2 of 6Global Reporting Initiative (GRI) Index Disclosure Description Response Activities and workers 2-6 Activities, value chain and other business relationships Our primary property types are office and retail with geographic locations in New York, Chicago, and San Francisco
Slide 46: Global Reporting Initiative (GRI) Index: Governance
2022 Appendix | 44 Page 3 of 6Global Reporting Initiative (GRI) Index Disclosure Description Response Governance (continued) 2-12 Role of the highest governance body in overseeing the management of impacts While day-to-day risk management is primarily the responsibility of the Company’s senior manag
Slide 47: Global Reporting Initiative (GRI) Index
2022 Appendix | 45 Disclosure Description Response 3-1 Process to determine material topics Our material topics are identified through a robust Governance structure and processes and annual risk assessment, including identification, prioritization, monitoring, and engagement discussions with stakeho
Slide 48: GRI Topics
2022 Appendix | 46 GRI Topics Disclosure Description Response Economic GRI 201: Economic Performance 2016 201-2 Financial implications and other risks and opportunities due to climate change Vornado has begun to assess the financial implications and the other risks and opportunities due to climate c
Slide 49: Reporting boundaries
2022 Appendix | 47 *Reporting boundaries: Intensities: 2022 intensities were calculated by dividing the energy consumption, water consumption, and GHG emissions from the properties owned by Vornado at December 31, 2022, by the total square footage of that same list of properties. Energy and Water: 1
Slide 50: Assurance Statement - GRI Index
2022 Appendix | 48 The preparation of the disclosures in the GRI Index included within the Environmental, Social & Governance 2022 Report requires management to interpret the criteria, make determinations as to the relevancy of information to be included, and make estimates and assumptions that affe
Slide 51: Assurance Statement - SASB Index
2022 Appendix | 49 Management of Vornado Realty Trust is responsible for the completeness, accuracy, and validity of the metrics in the SASB Index included within the Appendix of the Environmental, Social, & Governance 2022 Report of Vornado Realty Trust as of and for the year ended December 31, 202
Slide 52: SASB Index: Energy Management
2022 Appendix | 50 Code Accounting Metric Total New York THE MART 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 area (SF) IF-RE-130a.2 Total energy consumed by
Slide 53: SASB Index: Water Management
2022 Appendix | 51 Code Accounting Metric Total New York THE MART 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 a
Slide 54: SASB Index: Management of Tenant Sustainability Impacts
2022 Appendix | 52 Code Accounting Metric Total New York THE MART 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 55: SASB Index: Climate Change Adaptation
2022 Appendix | 53 Code Accounting Metric Total New York THE MART 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. 1,518,000 828,000 0 0 690,000 Square Feet IF-RE-450a.2 Description of climat
Slide 56: Deloitte & Touche LLP Report
2022 Appendix | 54 Deloitte & Touche LLP 30 Rockefeller Plaza 41st Floor New York, NY 10012 USA Tel: +1 212 492 4000 Fax: +1 212 489 1687 www.deloitte.com We have examined management of Vornado Realty Trust’s (the “Company”) assertion that the metrics in the Sustainability Accounting Standards Board
Slide 57: UN Sustainable Development Goals
2022 Appendix | 55UN 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 th
Slide 58: UN Sustainable Development Goals
2022 Appendix | 56 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 res
Slide 59: Glossary
Glossary Carbon Intensity MTCO2e PSF is used as the metric to measure against our carbon neutrality goal. Carbon offsets Indirect projects that avoid or reduce greenhouse gas emissions that are used to compensate for direct greenhouse gas emissions elsewhere. Offsets are measured in CO2 equivalents.
Slide 60: vno.com/sustainability
vno.com/sustainability The paper in this book contains at least 30% post-consumer waste recycled fiber, which is certified by Green Seal and meets the EPA guidelines for recycled papers.