Vornado Realty Trust · NYSE:VNO
Vornado Realty Trust — ESG Presentation (April 2022)
56 slides from Vornado Realty Trust's sustainability presentation, Apr 11, 2022
Slide 1: Environmental, Social & Governance 2021
ENVIRONMENTAL, SOCIAL & GOVERNANCE 2021
Slide 2: Table of Contents
TABLE OF CONTENTS ENVIRONMENTAL 6 Vision 2030: Vornado's Commitment to Carbon Neutrality 8 Task Force on Climate-related Financial Disclosures (TCFD) 10 Resilience and Adaptation 11 Energy Efficiency Targets 12 Environmental Goals and Progress 13 Environmental Results 2021 15 Environmental Results b
Slide 3: Key Achievements in Sustainability
KEY ACHIEVEMENTS IN SUSTAINABILITY NAREIT LEADER IN THE LIGHT LEADERSHIP PERSONIFIED 2021 11 TIME LEADER IN THE LIGHT WINNER GLOBAL REAL ESTATE SUSTAINABILITY BENCHMARK GREEN STAR RANKING 2021 9TH YEAR IN A ROW TOP-QUINTILE PERFORMER RANKED 2ND OUT OF 94 LISTED ENTITIES IN THE AMERICAS EP100 MEMBER
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Slide 5: From Our Chairman
LOCATION-BASED MARKET-BASED 2021 % CHANGE 2020-2021 2021 % CHANGE 2020-2021 SCOPE 1 29,864 2.3% 29,864 2.3% SCOPE 2 131,405 -1.9% 83,295 -37.8% SCOPE 1+2 TOTAL 161,269 -1.2% 113,159 -30.7% SCOPE 3 39,633 -7.8% 39,633 -7.8% GRAND TOTAL 200,902 -2.6% 152,792 -25.9% Carbon Emissions FROM OUR CHAIRMAN E
Slide 6: Renewable Energy Procurement / Footprints
RENEWABLE ENERGY PROCUREMENT In 2021 Vornado procured Renewable Energy Credits (RECs) to document our commitment to renewable energy and the environment, sourced from hydro energy facilities located in the State of New York. With an annualized balance of over 215,000 megawatt hours, we lead by examp
Slide 7: Footprints
SUPPLY CHAIN In addition to maintaining our Vendor Integrity Program and Vendor Code of Conduct, we commenced a comprehensive impact evaluation program with our critical suppliers. The results of this program will contribute to our ongoing inventory of Scope 3 GHG emissions. theMART is our flagship
Slide 8: Vision 2030: Commitment to Carbon Neutrality
50% REDUCTION BY 2030 NYC GRID TODAY .289 TCO2E PER MWh 100% CARBON-FREE BY 2040 MAXIMIZE OPPORTUNITY ACROSS THE PORTFOLIO NATURAL GAS CARBON OFFSET LOCAL ENERGY SOURCES PRIORITIZE ONSITE RENEWABLES TRANSITION TO ELECTRICITY REMOVE OIL FROM OUR BUILDING EMISSIONS ELECTRIFY OUR BUILDINGS OFFSET REMAI
Slide 9: Energy Efficiency Priority
WE WILL ALWAYS PRIORITIZE ENERGY EFFICIENCY We will reduce our energy consumption 50% below a 2009 base year by 2030. This goal includes both landlord- and tenant-driven consumption. More information on this effort can be found in the Energy Efficiency Targets section of this report. CONTINUED IMPRO
Slide 10: Task Force on Climate-related Financial Disclosures: Governance
*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. GOVERNANCE Vornado became a signat
Slide 11: Transitional and Physical Risks: Scenario Analysis
TRANSITIONAL RISKS AND OPPORTUNITIES: SCENARIO ANALYSIS - RCP 2.6 Risks Full transition of grid-supplied energy to renewable sources could lead to increased energy costs and operating expenses for our buildings. Opportunities Improved air quality could lead to lower HVAC operating and maintenance co
Slide 12: Resilience and Adaptation
Our properties are located in regions with recent history and future risks 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 property at 512 West 22nd Street exemplifies how
Slide 13: Energy Efficiency Targets
ENERGY EFFICIENCY TARGETS* TOTAL ENERGY REDUCTION GOAL: LANDLORD ENERGY REDUCTION PLAN TENANT ENERGY REDUCTION PLAN 2021 PROGRESS: BY 2030 WITH SAME- STORE PORTFOLIO (IN-SERVICE OFFICE) MEASURED IN kBtu/SF33%50% In Vision 2030, energy efficiency is our primary means to reduce our carbon emissions an
Slide 14: Environmental Goals and Progress
ENVIRONMENTAL GOALS AND PROGRESS* ENERGY MANAGEMENT** PROCUREMENT AND RESPONSIBLE CONTRACTING WATER MANAGEMENT** WASTE MANAGEMENT Our progress in 2021 was distorted for another year, due to continued low occupancy, business closures, and reduced hours at retail stores during the pandemic. We expect
Slide 15: Environmental Results 2021
ENVIRONMENTAL RESULTS 2021 ENERGY EFFICIENCY INVESTMENT CUMULATIVE SAVINGS SINCE 2012 $23 100,351 16.5MILLION spent on Tenant Energy Efficiency Capital Projects since 2012 MWh of cumulative electric savings MLBS of steam savings MILLION SF of our New York portfolio has undergone energy efficiency ca
Slide 16: Environmental Results 2021 Continued
SCOPE 1: 159,875 MWh Oil & Natural Gas Heating and Cooling Cogenerated Fuels SCOPE 2: 499,248 MWh District Steam Base Building Electricity Submetered Tenant Utilities TOTAL: 659,123 MWh SCOPE 3: 133,923 MWh Direct Metered Tenant Utilities 416,020 11,540 ENVIRONMENTAL RESULTS 2021 Continued The consu
Slide 17: 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 building 1.8 MILLION SF 100% of total region; 3 buildings LEED CERTIFICATIONS WASTE BY REGION (TONS) Non-Hazardous Recycling E
Slide 18: Energy Management Planning Cycle
CREATE ACTION PLAN Define technical solutions, both small-scale (low- and no-cost) and large-scale (energy efficiency capital projects). Assess projected energy savings of projects and measure their contribution toward property energy reduction goal. SET GOALS* Our Vision 2030 goal is to achieve car
Slide 19: Sustainable Development: PENN 1 and PENN 2
PENN 1 AND PENN 2 Both PENN 1 and PENN 2 are presently LEED EB+OM Gold certified and are pursuing Fitwel certification while working to improve on the LEED Gold status through renovation. The project is employing a range of sustainable solutions to reduce its environmental footprint and simultaneous
Slide 20: Sustainable Development: The Farley Building
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 21: Green Financing
GREEN FINANCING We have seen the marketplace continue to evolve and establish a firmer connection between sustainability and access to capital. Our recent offering of $750 million of green bonds and the new sustainability-linked pricing reduction on our $1.25 billion Revolving Credit Facility eviden
Slide 22: Responsible Recycling
RESPONSIBLE RECYCLING Vornado works closely with industry service providers and regulators to understand how we can optimally increase responsible waste diversion to support broad recycling and reuse markets and reduce our environmental footprint. To accomplish this, we have set progressive goals an
Slide 23: Health & Wellness
HEALTH & 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 consistency and
Slide 24: BMS & Green Cleaning
GRI 416-1, 404-1BMS & GREEN CLEANING 60 100%BMS SUPERVISORS AND SENIOR-LEVEL STAFF TRAINED in GS-42 green cleaning standards. OF ACTIVE BMS EMPLOYEES TRAINED MONTHLY IN COMPLIANCE with training requirements in the OSHA standards. EMPLOYEE HEALTH & SAFETY, EMPLOYEE TRAINING 1,920 HOURS OF TRAINING pe
Slide 25: BMS & Green Cleaning: 2021 Supply Purchase Impact
BMS & GREEN CLEANING* 2021 SUPPLY PURCHASE IMPACT Continued 76TONS from chemical concentrates Packaging Reduction 567,105GAL from chemical-free T3 scrubber 2,294GAL from chemical-free T3 scrubber Chemical Use Reduction Revolution liners use about 50% postconsumer recycled plastic. By purchasing thes
Slide 26: 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 27: Chicago and San Francisco
CHICAGO AND SAN FRANCISCO 555 CALIFORNIA STREET CAMPUStheMART theMART Left to right clockwise: theMART exterior, Marshalls Landing interior, Grand Stair 555 California Street Campus Left to right clockwise: Triplex building exteriors, 555 California Street Plaza, 315 Montgomery Street facade, 345 Mo
Slide 28: Tenant & Community Development
CULTURE, WELLNESS, AND ENTERTAINMENT MOBILE TENANT ACCESS BUILDING SUSTAINABILITY INITIATIVES MOBILE VISITOR REGISTRATION SAFETY CRITICAL INFORMATION AND EMERGENCY PREPAREDNESS TENANT & COMMUNITY DEVELOPMENT Our strategy is to foster and nurture the community within our buildings for our tenants and
Slide 29: Live.Work.Do. App Features
CULTURE, WELLNESS, AND ENTERTAINMENT Exclusive Vornado tenant deals and promotions from onsite and neighborhood restaurants, gym classes, spa specials, local festivals and concerts, and more. During the pandemic, Live.Work.Do. connected Vornado with our tenants who were working from home via free on
Slide 30: Stakeholder Engagement
† Due to low occupancy continuing for much of 2021, 2019 results are presented as a baseline for future reporting. STAKEHOLDER ENGAGEMENT* GRI 413-103-2, 201-2, 102-43 Much of 2021 continued to be a story of remote work for a large portion of our tenancy, preventing us from holding typical in-person
Slide 31: Human Capital Management
HUMAN CAPITAL MANAGEMENT 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 talent and growth. Vornado upholds strict policies against bribery and corruption, child labo
Slide 32: Diversity, Equity, and Inclusion
GRI 102-8, 401-1, 405-103-2DIVERSITY, EQUITY, AND 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 responsibility to improve represent
Slide 33: Diversity, Equity, and Inclusion Key Findings
TOTAL EMPLOYEES % ALL EMPLOYEES PERM- ANENT TEMP- ORARY FULL- TIME PART- TIME RACIAL MINORITIES* (%) GENDER ALL EMPLOYEES MALE 2,094 66.60% 1,887 207 1,720 374 69% FEMALE 1,050 33.40% 963 87 713 337 72% AGE ALL EMPLOYEES < 30 YRS OLD 407 13% 311 96 283 124 74% 30-50 YRS OLD 1,362 43% 1,230 132 1,037
Slide 34: 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 35: Our Partnerships
OUR PARTNERSHIPS NATIONAL • EPA ENERGY STAR Partner • U.S. Green Building 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, Sus
Slide 36: COVID 2020-2021 Response
In 2020 and 2021, the BMS Green Clean program fully aligned with Fitwel’s Viral Response Module (VRM). Highlights from our green cleaning include the following: • Identification of high-touch surfaces to shift extra attention to cleaning and disinfecting of these areas. • Active maintenance of PPE i
Slide 37: ESG Materiality Assessment
ESG MATERIALITY ASSESSMENT* STAKEHOLDER GROUP NATURE OF ENGAGEMENT FREQUENCY OF ENGAGEMENT KEY TOPICS AND CONCERNS IN 2021 OUR TENANTS Active relationship through our property management teams; meetings and discussions on tenant environmental performance; sustainability roundtable or webinar. Daily
Slide 38: 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 a dedicated team of four employees, who report to Vornado’s Chief Operating Officer and are supported by two dedic
Slide 39: 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 40: 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 included within the Environmental, Social & Governance Report of Vornado Realty Trust as of and for the year ended December 31, 2021. Management
Slide 41: GRI Index: General Disclosures Continued
GRI 102: GENERAL DISCLOSURES 2016 Continued GLOBAL REPORTING INITIATIVE (GRI) INDEX DISCLOSURE DESCRIPTION RESPONSE STRATEGY 102-14 Statement from senior decision-maker From Our Chairman, p. 3 of this report ETHICS AND INTEGRITY 102-16 Values, principles, standards, and norms of behavior Our Code of
Slide 42: GRI Index: Stakeholder Engagement
GLOBAL REPORTING INITIATIVE (GRI) INDEX GRI 102: GENERAL DISCLOSURES 2016 Continued DISCLOSURE DESCRIPTION RESPONSE STAKEHOLDER ENGAGEMENT 102-40 List of stakeholder groups ESG Materiality Assessment, p. 35 of this report 102-41 Collective bargaining agreements 83% of our total 3,687 employees are c
Slide 43: GRI Index: Management Approach
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. 35 of this report. Reporting Boundaries for
Slide 44: GRI Index: Economic and Environmental Topics
GLOBAL REPORTING INITIATIVE (GRI) INDEX GRI TOPICS DISCLOSURE DESCRIPTION RESPONSE ECONOMIC GRI 201: Economic Performance 2016 201-2 Financial implications and other risks and oppor- tunities due to climate change Vornado's approach to assessing financial implications, other risks and opportunities
Slide 45: GRI Index: Social Topics
GLOBAL REPORTING INITIATIVE (GRI) INDEX GRI TOPICS DISCLOSURE DESCRIPTION RESPONSE SOCIAL GRI 401: Employment 2016 401-1 New employee hires and employee turnover Diversity, Equity, and Inclusion pp. 30-31 of this report. 401-2 Full-time benefits not provided to temporary/ part-time employees These b
Slide 46: Assurance Statement - GRI Index
The preparation of the disclosures in the GRI Index included within the Environmental, Social & Governance 2021 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 the reported inf
Slide 47: Appendix A – SASB Index
APPENDIX A – SUSTAINABILITY 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 Appendix A of the Environmental, Social, & Governance 2021 Report of Vornado Realty Trus
Slide 48: Appendix A – SASB Index: Energy
APPENDIX A – SASB INDEX 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 area (SF) IF-RE-130a.2² Total energy consume
Slide 49: SASB Index: Water Management
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 area in regions with
Slide 50: SASB Index: Tenant Sustainability Impacts
CODE ACCOUNTING METRIC TOTAL NEW YORK theMART 555 CALIFORNIA OTHER UNIT OF MEASURE IF-RE-410a.1 (1) Percentage of new leases that contain a cost recovery clause for resource efficiency-related capital improvements and (2) associated leased floor area, by property subsector. (1) (2) (1) (2) (1) (2) (
Slide 51: SASB Index: 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. 1,898,000 1,078,000 0 0 820,000 Square Feet IF-RE-450A.2 DESCRIPTION OF CLIMATE CHANGE RISK EXPO
Slide 52: Assurance Statement - SASB Index
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 (SASB) Index inclu
Slide 53: 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 54: 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
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Slide 56: Vornado Realty Trust
VORNADO REALTY TRUST esg.vno.com