ENVIRONMENTAL

Energy Efficiency Targets*

In Vision 2030, Energy Efficiency is our primary means to reduce our carbon emissions and make progress towards carbon neutrality. We have bifurcated our approach to address both landlord and tenant consumption, so we can holistically arrive at our goal of 50% reduction by 2030, below a 2009 base year. In 2020, the pandemic and resulting slowdown of activity in our buildings resulted in greater than usual reduction of energy. We expect our consumption to increase over 2020 levels in 2021 and 2022 before returning to a trajectory of reduction.

TOTAL REDUCTION GOAL:

2020 PROGRESS:

50%

by 2030 with Same-Store Portfolio (in-service office)

32%

measured in kbtu/sf

BUILDING ENERGY USAGE TREND 2020

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 deficiencies that, when addressed, reduce energy consumption, as well as Energy ConservationMeasures (ECMs) that further optimize each asset’s energy performance.
  • Energy Efficiency Capital Work: Our ECMs serve as the basis of our capital projects, which reduce operating costs, energy consumption, and carbon emissions. We remain committed to completing new capital work every year.
  • Other Capital Work: While energy efficiency is not the primary value driver for all capital projects, most capital work can save energy when managed responsibly. Such examples include elevator modifications and glazing and envelope improvements, which we procure responsibly and with energy efficiency as a deliverable.

LANDLORD EMISSIONS REDUCTION PLAN

55%

BY 2030

32%

2020 PROGRESS

Future Opportunities

  • Onsite Generation, Renewable Energy, and Energy Storage: We continue to explore opportunities to employ onsite distributed energy resources.
  • Smart Building Technology: We use predictive analytics and machine learning to run our buildings’ electrical and mechanical systems more efficiently. We upgrade and replace our building management systems to increase the automation of this process.
  • Regulation & Compliance: Our buildings are located in jurisdictions that have adopted bold climate legislation, which may regulate the carbon emissions from buildings and their related energy consumption. This regulation will have an impact on building codes, building infrastructure, and space planning. 

TENANT ENERGY USAGE TREND 2020

What’s Working

  • Publicly Sponsored Commitments: We have facilitated the commitment of more than 2 million SF of tenants to the Carbon Challenge in New York. We promote tenant participation in energy reduction events such as the WWF Earth Hour and the Building Energy Exchange’s Earth Hour.
  • Lease-Driven Provisions: As standard practice, we have green provisions in our leases, such as submetered electricity (94% of all leases), submetered water (15%), and capital recovery clauses for energy efficiency projects (64%).
  • Meaningful Stakeholder Engagement: In 2020, we established weekly virtual check-ins with our tenants across our portfolio to review their submetered energy consumption and make changes to reduce their loads throughout the pandemic.

TENANT EMISSIONS REDUCTION PLAN

45%

BY 2030

32%

2020 PROGRESS

Future Opportunities

  • Regulation and Compliance: Laws like New York’s Local Law 88 of 2009, New York’s Local Law 97 of 2019, and California’s Title 24 contain energy or carbon requirements that will result in lower energy consumption in future tenant spaces.
  • Best Practices in Design: Working with architects and engineers, we have identified several ECMs and will either require or recommend their inclusion in future design.

*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.

Goals and Progress*

Energy Management

Our 2020 progress was distorted due to our tenants working from home and closure of retail stores during the pandemic. We expect our consumption to increase in 2021 and 2022 above 2020 levels before returning to a trajectory of reduction.

Waste Management

In 2020, we were unable to conduct in-person education and instead achieved our education goal through virtual meetings and electronic communications.

Procurement and Responsible 
Contracting

In 2020, our procurement was impacted by the emergency purchase of personal protective equipment (PPE).

Water Management

Our 2020 progress was distorted due to our office tenants working from home and closure of retail stores during the pandemic. We do not consider our 10% reduction goal to be achieved. We expect our consumption to increase in 2021 and 2022 above 2020 levels before returning to a trajectory of reduction.


Goal

50% total energy reduction below a 2009 baseline by 2030 measured in kBtu/SF

2020 PROGRESS: ON TARGET 32%

Goal

75% commercial waste diversion by 2026

2020 PROGRESS: ON TARGET 65%

Goal

Every year, purchase 75% of cleaning supplies that meet sustainability criteria. These criteria include certifications designated by UL ECOLOGO, Green Seal, and EPA’s Safer Choice Standard

2020 PROGRESS 73%

Goal

10% by 2030 below 2019 base year.

2020 PROGRESS 36%

Goal

55% energy reduction of landlord-controlled energy by 2030

Goal

Goal Introduce organics recycling to 50% of portfolio by 2020

2020 PROGRESS: ON TARGET 32%
2020 PROGRESS: GOAL REACHED 52%

Goal

45% energy reduction of tenant-controlled energy by 2030

Goal

Complete in-person Demonstration and Education on Recycling Procedures for 50% of total Vornado portfolio each year

GREEN BUILDING CERTIFICATIONS

2020 PROGRESS: ON TARGET 32%
2020 PROGRESS: GOAL REACHED 65%

Goal

LEED Certify 100% of all in-service office properties by 2020.

We paused LEED certification efforts until our tenants return to work post-pandemic.

2020 PROGRESS: ON TARGET 97%

*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.

Environmental Results 2020

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 new building design is resilient and adaptive to future climate conditions.

ENERGY EFFICIENCY INVESTMENT*

$16.8

million

spent on Energy Efficiency Capital Projects since 2012 (excludes new developments)

16.5

million sf

of our New York portfolio has undergone energy efficiency capital work

$5.1

million +

saved in utility costs in 2020 from our energy efficiency projects* completed since 2012

30%

rate of return since 2012

Delivered by our capital projects*

CUMULATIVE SAVINGS SINCE 2012*

84,002

mvh

of cumulative electric savings

142,213

mlbs

of steam savings

34,862

mtco2

cumulative GHG offset

*This information 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.

WATER CONSUMPTION

WHICH WAS A

36%

REDUCTION from 2019 to 2020

27+

MILLION SF

of LEED-certified
properties

of total Vornado Portfolio 81%

23+

MILLION SF

at LEED Gold or higher

of total Vornado Portfolio 69%

33+

MILLION SF

of space with
ENERGY STAR rating

of eligible Vornado Portfolio 100%

INTENSITY MEASURES

BUILDING ENERGY

(KWH/SF)

GRI 302-3

BUILDING WATER

(m3/SF)

GHG EMISSIONS

(MT/SF)

GRI 305-4

An additional 38 tons

of hazardous waste were also recycled in 2020.


GHG EMISSIONS

The consumption and emissions data sets on this page are presented on an absolute basis.

Beginning with this 2020 report, we are transitioning our emissions reporting from the operational control method to the financial control method. The financial control method will more accurately reflect Scope 1 and Scope 2 emissions reductions that stem from all efforts discussed in our Vision 2030 plan. Below is a summary of the end uses we have assigned per emissions Scope.

The COVID-19 pandemic caused a significant reduction of activity in our buildings in 2020, resulting in a related reduction of base building electricity and tenant electricity consumption and their related Scope 2 emissions. Our buildings remained open during the pandemic and we continued to heat and cool them. We also maintained consistent operations of our cogeneration plant at PENN 1. Consistency of these uses from 2019 to 2020 resulted in a less substantive decrease in Scope 1 emissions from 2019 to 2020.

OPERATIONAL Control Method

GHG Emissions MTCO2e

2018

2019

2020

SCOPE 1

27,040

34,413

34,674

SCOPE 2

256,684

221,901

171,510

TOTAL

283,724

256,314

206,184

FINANCIAL Control Method

GHG EMISSIONS MTCO2e

2019

2020

SCOPE 1

28,577

29,190

SCOPE 2

177,977

133,997

SCOPE 3

49,760

42,997

TOTAL

256,314

206,184

ENERGY CONSUMPTION

2018

2019

2020

DISTRICT chilled water

15,250

12,702

9,220

DISTRICT STEAM

306,342

259,472

186,163

ELECTRICITY

598,820

556,572

440,095

FUELS

142,101

182,586

186,127

TOTAL

1,062,513

1,011,332

821,605

COGENERATED FUELS

1,643

38,894

55,391

Environmental Results by Region

TRANSPORTATION SURVEY RESULTS (MILEAGE)

As surveyed from our tenants in 2019

  •  Walk / Bike / Telecommute
  •  Bus
  •  Light Rail
  •  Heavy Rail
  •  Carpool / Alternative Fuel
  •  Ferry
  •  Car: Solo

WASTE BY REGION (TONS)

  • Non-Hazardous Recycling
  • Energy Recovery
  • Organic Diversion
  • Landfill

GRID ELECTRICITY MIX

Source: NYCA Energy Production 2020, NYISO

  • Hydro (22%)
  • Hydro PS (0.43%)
  • Wind (3%)
  • Other Renewables (2%)
  • Nuclear (33%)
  • Gas (5%)
  • Dual Fuel (33%)
  • Oil (0.08%)
  • Coal (0.32%)

LEED CERTIFICATIONS

21.7

MILLION SF

82% of total region (including retail);
30 buildings

2020 GHG EMISSIONS (MTC02E)

Scope 1

23,560

Scope 2

105,457

Scope 3

34,412

Total

163,429

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

TRANSPORTATION SURVEY RESULTS (MILEAGE)

As surveyed from our tenants in 2019

  •  Walk / Bike / Telecommute
  •  Bus
  •  Light Rail
  •  Heavy Rail
  •  Carpool / Alternative Fuel
  •  Ferry
  •  Car: Solo

WASTE BY REGION (TONS)

  • Non-Hazardous Recycling
  • Energy Recovery
  • Organic Diversion
  • Landfill

GRID ELECTRICITY MIX

Source: NYCA Energy Production 2020, NYISO

  • Hydro (1%)
  • Wind (3%)
  • Nuclear (35%)
  • Natural Gas (39%)
  • Coal (21%)
  • Other (1%)

LEED CERTIFICATIONS

3.7

MILLION SF

Over 99% of total region

2020 GHG EMISSIONS (MTC02E)

Scope 1

4,376

Scope 2

16,612

Scope 3

17

Total

20,996

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

TRANSPORTATION SURVEY RESULTS (MILEAGE)

As surveyed from our tenants in 2019

  •  Walk / Bike / Telecommute
  •  Bus
  •  Light Rail
  •  Heavy Rail
  •  Carpool / Alternative Fuel
  •  Ferry
  •  Car: Solo

WASTE BY REGION (TONS)

  • Non-Hazardous Recycling
  • Energy Recovery
  • Organic Diversion
  • Landfill

GRID ELECTRICITY MIX

Source: NYCA Energy Production 2020, NYISO

  • Large Hydro (27%
  • Renewable (29%)
  • Nuclear (44%)

LEED CERTIFICATIONS

1.8

MILLION SF

 

100% of total region; 3 buildings

2020 GHG EMISSIONS (MTC02E)

Scope 1

37

Scope 2

8,368

Scope 3

-

Total

8,405

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