Vornado Realty Trust · NYSE:VNO
Vornado Realty Trust — ESG Presentation (April 2024)
66 slides from Vornado Realty Trust's sustainability presentation, Apr 10, 2024
Slide 1: Sustainability 2023
Sustainability 2023 April 2024THE PENN DISTRICT PLAZA33
Slide 2: Vornado Is a Preeminent Owner, Manager, and Developer of Office and Retail Assets
Sustainability Report 2023 32 Sustainability Report 2023 The redevelopment of THE PENN DISTRICT has resulted in a half mile of new sidewalk paving, over two acres of green space and open-air plazas, and 73,000 SF of outdoor tenant space. PENN 1 redevelopment achieved an 88% reduction in embodied
Slide 3: Table of Contents
Sustainability Report 2023 54 Sustainability Report 2023 Environm ental People & Places G overnance A ppendix 14 Introduction 16 Vision 2030 18 Goals & Progress 24 Environmental Results 2023 30 Renewable Energy 31 Building Management Systems Upgrade 32 Energy Management System (EMS) 34 Results by Re
Slide 4: Letter from Our Chairman
Sustainability Report 2023 76 Sustainability Report 2023 Steven Roth Chairman of the Board and Chief Executive Officer OUR BOARD AND SENIOR MANAGEMENT are proud of Vornado’s continued national leadership in sustainability, improving our communities, our buildings, and our tenant experiences. We cont
Slide 5: 2023: Another Year of Excellence - Key Achievements
Sustainability Report 2023 98 Sustainability Report 2023 S&P GLOBAL COR PORATE SUSTAI NABI LIT Y ASS ESS M E NT (CSA) Vornado performed in the top quintile for the Real Estate Industry in the S&P Global Corporate Sustainability Assessment (CSA). Vornado is 75% of the way to its EP100 goal, achieving
Slide 6: Sustainability Governance
Sustainability Report 2023 1110 Sustainability Report 2023 VORNADO HAS LONG BEL IEVED a focus on sustainability, inclusive of environmental, people, and places, is responsible management of our business and important to our tenants, investors, employees, and communities. It has been central to Vorna
Slide 7: THE PENN DISTRICT
Sustainability Report 2023 1312 Sustainability Report 2023 THE PENN DISTRICT THE PENN DISTRICT, New York City’s most accessible neighborhood in the heart of Manhattan, has been recently transformed into a sustainable campus of best-in-class office, retail, food and beverage, and open spaces. Vornado
Slide 8: Environmental
14 Sustainability Report 2023 Environmental Our objective at Vornado is to reduce the environmental impacts of our buildings through efficient management and informed decision-making. We strive to achieve year-over-year reductions in utility and resource consumption across our portfolio. 16 Vision 2
Slide 9: Vision 2030
Sustainability Report 2023 1716 Sustainability Report 2023 1 2 3VISION 2030 is Vornado’s commitment to reach carbon neutrality by 2030. We rely on meaningful stakeholder collaboration with our employees and our tenants to optimize operations and eliminate excessive usage. In 2021, we made an SBTi co
Slide 10: Goals & Progress
Sustainability Report 2023 1918 Sustainability Report 2023 GRI 2-24, 3-2, 3-3 Goals & Progress METRICS & TARGETS Meaningful metrics and targets help us to evaluate our climate-related risks and opportunities, as defined in our Risk Management assessment detailed further on pages 94-95 of this report
Slide 11: Goals & Progress: Energy Management
Environmental / Goals & Progress Energy Management* Goal: 50% reduction in energy consumption below our 2009 base year by 2030 2023 Progress 32% 2022 Progress 28% 2021 Progress 33% 2020 Progress 32% 2019 Progress 27% Goal: 45% energy reduction of tenant-controlled energy by 2030 2023 Progress: 27% G
Slide 12: Goals & Progress: Procurement, Waste and Water
Sustainability Report 2023 2322 Sustainability Report 2023 Goal: Purchase 75% of cleaning supplies that meet sustainability criteria, including certifications designated by UL ECOLOGO, Green Seal, and EPA’s Safer Choice Standard. Procurement and Responsible Contracting* 65%75% of commercial waste di
Slide 13: Environmental Results 2023
Sustainability Report 2023 2524 Sustainability Report 2023 GRI 305-1, 305-2, 305-3 GRI 2-24, 3-2, 3-3, SASB IF-RE-130a.5 Environmental Results 2023 VORNADO’S Scope 1 and Scope 2 emissions come entirely from the operation of our buildings, including our submetered tenants. Energy costs of a property
Slide 14: Environmental Results: Intensity Measures, Waste and Water
Sustainability Report 2023 2726 Sustainability Report 2023 2019 2020 2021 2022 2023 Environmental / Results 2023 Intensity Measures* GHG Emissions** (MTCO2e/SF) Building Water (m3/SF) Building Energy (kWh/SF) Vornado uses intensity measures to benchmark our portfolio’s energy, water, and emissions p
Slide 15: Energy Consumption Results
Sustainability Report 2023 2928 Sustainability Report 2023 Environmental / Results 2023 Energy Consumption (MWh)* 2019 2020 2021 2022 2023 Chilled Water 12,702 9,220 11,540 10,384 10,264 District Steam 259,472 186,163 178,230 191,294 164,230 Electricity 556,572 440,095 416,020 435,101 409,055 Fuels
Slide 16: Case Study: Building Management Systems Upgrade
Sustainability Report 2023 3130 Sustainability Report 2023 Environmental Case Study: Building Management Systems Upgrade* Between 2019 and 2023, Vornado completed the upgrade of building management systems (BMS) across five of our largest office buildings: PENN1, 1290 Avenue of the Americas, PENN 11
Slide 17: Energy Management System (EMS)
Sustainability Report 2023 3332 Sustainability Report 2023 GRI 3-3, SASB IF-RE-130a.5 Energy Management System (EMS) VORNADO STRIVES to improve upon our environmental objectives and minimize our environmental footprint by applying the Plan-Do- Check-Act principles of (2015) ISO 14001/15001 Environme
Slide 18: Vornado Realty Trust Portfolio Overview
Sustainability Report 2023 3534 Sustainability Report 2023 Environmental VORNADO REALTY TRUST (NYSE: VNO) is a fully integrated real estate investment trust (REIT). In New York, we have 57 Manhattan operating properties consisting of: We also have multiple development sites, including 350 Park Avenu
Slide 19: Portfolio by Region and Building Certifications
Sustainability Report 2023 3736 Sustainability Report 2023 New York City*Legend # Building Certifications 1. 100 West 33rd Street 2. 1290 Avenue of the Americas 3. 150 East 58th Street 4. 770 Broadway 5. 909 Third Avenue 6. PENN 11 7. One Park Avenue 8. 330 West 34th Street 9. 650 Madison Avenue 10.
Slide 20: Building Certifications
Sustainability Report 2023 3938 Sustainability Report 2023 The bulk of our in-service office properties were certified through the BOMA 360 program. This performance program sets global standards for operational and management practices in the CRE industry. Vornado owns and operates 25 million squar
Slide 21: Results by Region: New York City
Sustainability Report 2023 4140 Sustainability Report 2023 New York City Natural Gas 96.6% Other Fossil 0.6% Solar 0.1% Biomass 0.5% Oil 2.3% Source: EPA eGRID 2022, NYCW Resource Power Mix Waste by Region (metric tons) Non-Hazardous Recycling (3,719) Organic Waste Diversion (1,779) Electronic & Uni
Slide 22: Results by Region: San Francisco and Chicago
Sustainability Report 2023 4342 Sustainability Report 2023 San Francisco Nuclear: 49% Large Hydro: 8% Natural Gas: 5% Renewable: 38% Source: PG&E, 2022 Power Mix Waste by Region (metric tons) Non-Hazardous Recycling (251) Organic Waste Diversion (193) Electronic & Universal Waste Recycling (6) Energ
Slide 23: Case Study: Energy Efficiency Programs
Sustainability Report 2023 4544 Sustainability Report 2023 Case Study: Energy Efficiency Programs GRI 2-24, 3-2, 3-3, SASB IF-RE-130a.5 ENERGY MANAGEMENT is incorporated into our investment due diligence process across all our property subsectors. We tour the properties and review capital and operat
Slide 24: Energy Programs
Sustainability Report 2023 4746 Sustainability Report 2023 Environmental / Energy Programs **This disclosure 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. *Two pieces of
Slide 25: Energy Progress: SBTi/GHG Emissions
Sustainability Report 2023 4948 Sustainability Report 2023 Environmental / Energy Progress Location-Based Emissions (MTCO2e per square foot) 0.0060 0.0040 0.0020 0 2019 2020 2021 2022 2023 A 4% reduction from 2019 0.0050 0.0047 0.0008 0.0009 Market-Based Emissions (MTCO2e per square foot) Scope 1 Sc
Slide 26: Sustainable Development: Embodied Carbon
Sustainability Report 2023 5150 Sustainability Report 2023 Vornado has recently committed to a target to reduce embodied carbon intensity for our new development projects by 10%. We will continue to evaluate every project for additional targets and lower carbon opportunities, depending upon the proj
Slide 27: Embodied Carbon Framework: Project Timeline and Approach
Sustainability Report 2023 5352 Sustainability Report 2023 Environmental / Sustainable Development Embodied Carbon Framework: Project Timeline and Approach 27 PROJECT DELIVERABLES Project Deliverables Vornado Design Team General Contractor Kickoff Documents A Impact Reduction (IRM) Trackers B End of
Slide 28: Resilience and Adaptation
Sustainability Report 2023 5554 Sustainability Report 2023 Environmental / Sustainable Development Resilience and Adaptation SASB IF-RE-130a.5 Mechanical Equipment When a new building is in a flood zone or when feasible, we place all critical mechanical equipment and electrical switchgear above grad
Slide 29: Nature
Sustainability Report 2023 5756 Sustainability Report 2023 Nature 330 West 34th Street Central Park is an essential natural space, and the Central Park Conservancy is responsible for its day-to-day care and ensuring this green space is accessible to all. Twice annually, Vornado participates in “Day
Slide 30: Path to Zero Waste
Sustainability Report 2023 5958 Sustainability Report 2023 Path to Zero Waste* VORNADO IS DRIVING waste diversion and best practices among our tenant base by adopting organics collection in 100% of our in-service office portfolio, resulting in a 65% diversion rate with 1,988 metric tons of food wast
Slide 31: Water
Sustainability Report 2023 6160 Sustainability Report 2023 GRI 2-24, 3-2, 3-3, 303-1, 303-3, SASB IF-RE-140a.4 Water* VORNADO UNDERSTANDS the importance of conserving water and commits to reducing water consumption wherever possible. Our primary method of mitigating water risk is to reduce our water
Slide 32: People & Places
62 Sustainability Report 2023 People & Places As an employer, 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 consistency
Slide 33: Tenant Engagement
13.4 Million Sustainability Report 2023 6564 Sustainability Report 2023 People & Places Tenant Engagement AT VORNADO, we believe that a building’s sustainability is grounded in meaningful stakeholder collaboration with our tenants, employees, and communities. Our policies and elite standards — from
Slide 34: Tenant Engagement: App, Fit-Out Guidelines
Sustainability Report 2023 6766 Sustainability Report 2023 7 West 34th Street LIVE. WORK. DO. App Vornado’s App and Tenant Portal provide Sustainability contact information, updated information on ENERGY STAR scores, organics collection, energy savings tips, and upcoming events like Climate Week for
Slide 35: Health & Wellness
Sustainability Report 2023 6968 Sustainability Report 2023 GRI 2-24, 3-2, 3-3 Health & Wellness People & Places IN ADDITION to individual building certifications under Fitwel, Vornado implemented the Fitwel Viral Response Module (VRM) as a response to the COVID-19 pandemic and has since maintained t
Slide 36: Case Study: BMS & Green Cleaning
Sustainability Report 2023 7170 Sustainability Report 2023 People & Places Case Study: BMS & Green Cleaning BMS, Vornado’s cleaning company, is committed to promoting sustainability, increasing the efficiency and use of recycled resources and decreasing waste, both in BMS’s operations and those of i
Slide 37: Community Development: ART on THE MART
Sustainability Report 2023 7372 Sustainability Report 2023 ART on THE MART Sustainability as a Key Driver GRI 2-24, 3-2, 3-3 Community Development ART on THE MART — Illuminating Public Art Founded in 2018, the program is a result of a 30-year commitment by THE MART owner Vornado Realty Trust, in clo
Slide 38: Human Capital Management: Learning & Development
Sustainability Report 2023 7574 Sustainability Report 2023 Workforce Human Capital Management Learning & Development OUR EMPLOYEES are the foundation of our business. We provide training and education, promote career and personal development, and encourage innovation and engagement to foster their t
Slide 39: Engagement at Vornado
Sustainability Report 2023 7776 Sustainability Report 2023 Engagement at Vornado Our employees are our greatest asset. In their own words, here’s what they had to say about their journeys working at Vornado. Jose Meneses VP, Financial Reporting & Technical Accounting 9-Year Tenure One highlight of m
Slide 40: Vornado Volunteers
Sustainability Report 2023 7978 Sustainability Report 2023 GRI 2-24, 3-2, 3-3, 413-1 Vornado Volunteers Vornado supports volunteerism that enhances and serves the communities in which we live and work. Through employee engagement and social impact assessment, Vornado Volunteers identifies local comm
Slide 41: Vornado Honors
Sustainability Report 2023 8180 Sustainability Report 2023 Vornado Honors GRI 2-24, 3-2 REBNY’s Project of the Year Award Vornado Retail Commercial Observer Top Young Professionals Nathan Marcus Commercial Observer Power PropTech 30 Robert Entin PENN 11 Historical Building of the Year BOMA New this
Slide 42: Governance
82 Sustainability Report 2023 Governance 82 Introduction 84 Governance 85 Supply Chain 86 Climate-Related Strategy & Analysis 90 Materiality Assessment 92 Risk Management 94 Technology and Cybersecurity 97 Board Planning Sustainability Report 2023 83
Slide 43: Governance
Sustainability Report 2023 8584 Sustainability Report 2023 GRI 2-9, 2-10, 2-12, 2-13, 2-14, 2-24, 3-2, 3-3 Governance OUR LEADERSHIP IS COMMITTED to evaluating and disclosing climate-related risks material to our business. We institute a top-down approach for the ongoing assessment and management of
Slide 44: Climate-Related Strategy & Analysis
Sustainability Report 2023 8786 Sustainability Report 2023 GRI 2-23, 2-24, 3-2, 3-3, 201-2 Climate-Related Strategy & Analysis* In February 2019, Vornado was among the first American real estate companies to become a signatory of and endorse the TCFD recommendations. Our leadership is committed to e
Slide 45: Transitional Risks and Opportunities: Scenario Analysis
Sustainability Report 2023 8988 Sustainability Report 2023 Transitional Risks and Opportunities: Scenario Analysis* Risks Risks RisksOpportunities Opportunities Opportunities 2030 Medium Term (2030–2049) Long Term (2050–2100) Short Term (Present–2029) Policy and legal: Capital investment toward ener
Slide 46: Materiality Assessment
Sustainability Report 2023 9190 Sustainability Report 2023 GRI 2-29, 3-1, 3-2, 3-3 Materiality Assessment At Vornado, sustainability and resilience are important lenses through which we view all development projects at any scale. Our strategy focuses on sustainable development inclusive of carbon ne
Slide 47: Risk Management
Sustainability Report 2023 9392 Sustainability Report 2023 Risk Management OUR CLIMATE RISK assessment informs the risk profiles of our properties and is a component of our Enterprise Risk Management (ERM) assessment during all stages of a building cycle. Understanding climate-related risks enables
Slide 48: Technology and Cybersecurity
Sustainability Report 2023 9594 Sustainability Report 2023 Technology and Cybersecurity Cybersecurity VORNADO IS COMMITTED to rigorous cybersecurity standards with a comprehensive strategy to safeguard our data and computing environment. We collaborate with third-party services for continuous 24/7 n
Slide 49: Board Planning
96 Sustainability Report 2023 Sustainability Report 2023 97 Board Planning GRI 2-9, 2-10, 2-12, 3-2, 405-1 Board and Committee Refreshment Board Diversity Corporate Governance and Nominating Committee Oversight In 2023, as part of our committee rotation process, Mr. Raymond J. McGuire was added as a
Slide 50: Appendix
98 Sustainability Report 2023 Appendix 98 Introduction 100 Human Capital Management Metrics 102 Global Reporting Initiative (GRI) Content Index 116 Assurance Statement — GRI Content Index 118 Sustainability Accounting Standards Board (SASB) Index 126 Assurance Statement — SASB Index 128 UN Sustainab
Slide 51: Human Capital Management Metrics
Sustainability Report 2023 101100 Sustainability Report 2023 Human Capital Management Metrics GRI 2-7, 2-8, 3-2, 401-1, 405-1 Appendix Gender Gender Total Employees % All Employees Permanent Temporary Full-Time Part-Time Racial Minorities* (%) All Employees Male 263 47% 248 15 262 1 30% Female 293 5
Slide 52: GRI Content Index
Sustainability Report 2023 103102 Sustainability Report 2023 GRI Content Index Response Statement of Use Vornado Realty Trust has reported the information cited in this GRI content index for the period January 2023 - December 2023 with reference to the GRI Standards. GRI 1 used GRI 1: Foundation 202
Slide 53: GRI 2: General Disclosures
Sustainability Report 2023 105104 Sustainability Report 2023 GRI 2: General Disclosures GRI 2: General Disclosures 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 loc
Slide 54: GRI 2: General Disclosures (Governance)
Sustainability Report 2023 107106 Sustainability Report 2023 GRI 2: General Disclosures GRI 2: General Disclosures 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
Slide 55: GRI 2 and GRI 3 Disclosures
Sustainability Report 2023 109108 Sustainability Report 2023 GRI 2: General Disclosures GRI 3: Material Topics Disclosure Description Response Strategy, policies, and practices 2-27 Compliance with laws and regulations No significant instances of noncompliance. We consider ‘significant instances of
Slide 56: GRI 3: Material Topics
Sustainability Report 2023 111110 Sustainability Report 2023 GRI 3: Material Topics GRI 3: Material Topics Disclosure Description Response 3-2 List of material topics Board Engagement on Sustainability; Energy, Water, and Waste Management; Climate Change Risk and Mitigation; Human Capital Management
Slide 57: GRI 200-400: Topic-Specific Disclosures
Sustainability Report 2023 113112 Sustainability Report 2023 GRI 200-400: Topic-Specific Disclosures GRI 200-400: Topic-Specific Disclosures GRI Topics Disclosure Description Cross-Reference or Answer Economic Response GRI 201: Economic Performance 2016 201-2 Financial implications and other risks a
Slide 58: GRI 200-400: Topic-Specific Disclosures
Sustainability Report 2023 115114 Sustainability Report 2023 GRI 200-400: Topic-Specific Disclosures GRI 200-400: Topic-Specific Disclosures GRI Topics Disclosure Description Cross-Reference or Answer Environmental Response GRI 306: Effluents and Waste 2020 306-1 Waste generation and significant was
Slide 59: Assurance Statement: GRI Content Index
Sustainability Report 2023 117116 Sustainability Report 2023 relevancy of information to be included, and make estimates and assumptions that affect reported information. Measurement of certain disclosures may include estimates and assumptions that are subject to substantial inherent measurement unc
Slide 60: SASB Index
Sustainability Report 2023 119118 Sustainability Report 2023 Activity MetricsSustainability Accounting Standards Board (SASB) Index MANAGEMENT OF VORNADO Realty Trust is responsible for the completeness, accuracy, and validity of the metrics in the SASB Index included within the accompanying Sustain
Slide 61: SASB Index: Energy Management Metrics
Sustainability Report 2023 121120 Sustainability Report 2023 1 5.3 Whole Building is defined as “Energy used by tenants and Base Building services to lettable/leasable and common spaces. This should include all energy supplied to the building for the operation of the building and the tenant space.”
Slide 62: Management of Tenant Sustainability Impacts
Sustainability Report 2023 123122 Sustainability Report 2023 Management of Tenant Sustainability Impacts At Vornado, tenants consume the majority of the electricity consumed in our properties, as is evidenced by the submetered or separately metered electricity we record throughout our portfolio. Bec
Slide 63: SASB Climate Change Adaptation
Sustainability Report 2023 125124 Sustainability Report 2023 include unsuccessful investment in new technologies; costs to transition to lower emissions technology; achievement of regional utilities’ decarbonization; increased pricing on GHG emissions; reputational loss; and uncertainty in market si
Slide 64: Assurance Statement: SASB Index
Sustainability Report 2023 127126 Sustainability Report 2023 have resulted in materially different metrics being reported. Our examination was limited to the metrics in the SASB Index as of and for the year ended December 31, 2023. All other information presented within the Sustainability Report, in
Slide 65: UN Sustainable Development Goals
Sustainability Report 2023 129128 Sustainability Report 2023 UN Sustainable Development Goals* UN Goal Target UN Goal Indicator VNO Response 3.5 Strengthen the prevention and treatment of substance abuse, including narcotic drug abuse and harmful use of alcohol. 3.5.1 Coverage of treatment intervent
Slide 66: Glossary
Sustainability Report 2023 131130 Sustainability Report 2023 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