ENVIRONMENTAL

Energy Management Planning Cycle

MAKE COMMITMENT

Vornado’s dedicated energy management begins with team members who report directly to senior management, and it extends to the asset-level teams which operate and manage the properties. By identifying and executing energy solutions that are specific to each of our assets, Vornado will fulfill its commitment to reducing energy consumption 50% by 2030 — below a 2009 baseline.*

ASSESS PERFORMANCE

Our team uses research and data to comprehensively evaluate each asset by taking three different approaches: assessing the physical condition and efficiency of each property’s mechanical infrastructure through energy audits and retrocommissioning; assessing the property’s utility costs on an absolute and per-square-foot basis; and assessing the property’s ENERGY STAR score, which measures the energy performance of a building against its unique attributes and characteristics.

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. On an annual basis, we update one- to three-year. capital improvement plans that will reduce energy on an incremental basis to reach our 10-year targets.*

5+

MILLION SF

earned the 2020

ENERGY STAR LABEL

  • Define technical solutions, both small scale (low- and no-cost) and large (energy efficiency capital projects).
  • Assess projected energy savings of projects and measure their contribution towards property energy reduction goal.

Execute plan with projected energy and carbon savings with a variety of stakeholders:

Internal:

  • Site-Level Management and Engineering Teams
  • Accounting Group
  • Senior Management
  • Our Board

External:

  • Utility Companies
  • Vendor Partners
  • Our Peers
  • Our Community
  • Measure and verify energy project savings using submeters.
  • Assess energy cost savings on a utility bill. Subsidize cost of energy projects using utility rebates where available.
  • Recover costs through lease-driven clauses for resource efficiency-related capital improvements.

 

  • Monitor until the project’s energy reduction goals are met.
  • Reflect the impacts of our energy savings to
    the broader environmental performance of our company, through the key performance indicators in our Environmental Management System (EMS). 
  • Our EMS is aligned with the “Plan-Do-Check-Act” stages of ISO14001 EMS standards. 

DATA SOURCE

Resource, Consumption, Cost Info

ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)

  • Annually recognize building operators and engineers who achieve 10% or greater energy savings on a weather-normalized basis.
  • Apply for the ENERGY STAR Label where eligible, every year.
  • Communicate energy savings and ENERGY STAR Label achievements to internal and external stakeholders.

*Any information relating to goals and progress against goals were 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.

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 sustainable, forward-thinking, and relevant to the modern workforce.

We therefore focus our development and repositioning efforts on buildings that share the following characteristics:

  • Near other tenants and talent, and near transportation
  • Architecturally and historically significant
  • Comprised of physical spaces that foster collaboration and innovation
  • Able to offer a variety of spaces for different types of work
  • Walkable and amenity-rich

Our buildings throughout the PENN District, including the Farley Building, are emblematic of these key characteristics.

We are committed to delivering PENN 1 and PENN 2 as carbon neutral, leading examples of transitioning existing buildings to a low-carbon economy. Our carbon neutrality strategy will borrow from Vision 2030 priorities and uphold energy efficiency as our guiding principle*. Many of the details below contribute meaningfully to our carbon neutral commitment while providing an amenity-rich environment that provides the conveniences and flexibility of the modern workspace.

  • Complete overhaul of mechanical and electrical infrastructure, including superefficient electric cooling, high-performance glazing (triple-glaze at PENN 1), and destination dispatch vertical transportation
  • Up to an acre of new open space, green roofs, and setbacks
  • Smart building technology that leverages occupancy data and optimizes HVAC control
  • Low-carbon tenant fit-out design and operations guidelines to help tenants partner with Vornado to minimize carbon emissions and climate impact
  • Industry-leading green cleaning and building-wide recycling and organics diversion programs 
  • Direct access to Penn Station, subway networks, and the newly opened Moynihan Train Hall
  • Improving on the existing LEED Gold certification of both buildings through targeted renovations and operational programs 

We are also transforming our buildings to serve the needs of a diverse, mobile, and active workforce, where collaborative space will foster productivity and creativity.

At PENN 1, the first three levels will deliver WorkLife, an amenity ecosystem for tenants to focus on both work and self-care. A social stair will connect the main entrance on the first level to amenities on levels two and three. The social stair’s bleacher seats and large LED panels will be the perfect location for casual meetings or private events. Level two will feature The Landing – a full-service restaurant, private dining rooms, and multiple tenant lounges for socializing and working; WorkLife Wellbeing – a 35,000 SF fitness and wellness center; WorkLife Meetings – a 20,000 SF conferencing facility; and WorkLife Flex Office – over 80,000 SF of adaptable workspace

PENN 2 will include over 65,000 SF of outdoor tenant space including a 17,000 SF rooftop park, 16 loggias, and 3 expansive terraces. The building will also feature various flexible tenant spaces for working or socializing and private events – including a 280-person town hall, casual lounges, and rooftop pavilion. Tenants at PENN 2 will also have access to the PENN 1 WorkLife space, delivering a campus-style approach to the PENN District.

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 reuse of the Farley Building will be further supported by our portfolio-wide sustainable operations strategy that prioritizes resources conservation, healthy indoor environments, and responsible procurement.

The 730,000 SF office building is targeting LEED v4 Gold certification, highlighted by the following:

  • Direct access to Amtrak, Long Island Railroad, and New Jersey Transit regional train networks, in addition to multiple NYC subway lines
  • Up to 70,000 SF of rooftop park space, with up to a quarter mile of continuous walkable outdoor paths
  • A new 6,000 SF glass rooftop pavilion for use as programmable amenities space
  • Zero-waste design guidelines that will include organics diversion for all office and retail spaces
  • Ample stairwell access to facilitate collaboration among different floors in the buildings
  • State-of-the-art energy management system that will contribute to demand reduction and demand response, and provide tenants with insights into their real-time energy consumption, demand, and carbon emissions
  • Over 3 MW of emergency backup power to foster resilience and business continuity

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 recyclables and organics. We measure the impact of these efforts and programs with quantitative audits and monthly reports.

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vornado’s waste management policy

  • Reduce hazardous and non-hazardous waste generated at our buildings
  • Increase diversion of waste from the landfill through recycling and composting acceptable materials and sending trash to waste-to-energy incineration plants
  • Require tenants to divert business waste resulting from standard operations and packaging waste from deliveries and supplies

tenant engagement

  • In 2019, we hosted in-person building-wide meetings at 77% of our office portfolio, representing 22 million SF
  • In 2019, we hosted semi-annual electronic waste recycling drives at 73% of our office portfolio, representing 20.7 million SF

  • We paused our in-person meetings and drives during the pandemic in 2020. We plan to resume these programs as tenants return to work in 2021 and beyond.

data tracking

  • Performed waste stream audits at 95% of our office portfolio, representing 27 million SF

  • Monthly waste generation and diversion tracking at 95% of our office portfolio, representing 27 million SF

Vornado provides our tenants with separate receptacles so they can discard items in the appropriate bin, whether paper, commingled recycling, or trash.

BMS Green Clean collects waste from tenant spaces, ensuring waste streams remain properly separated for storage and pickup by our haulers.

We’ve partnered with haulers that have proven compliance with local waste management requirements. The haulers remove waste from each building with three trucks: one brings garbage to a transfer station, another delivers recyclables to their sorting facilities for further processing, and a third picks up organic waste.

At the sorting facilities, recyclables are hand-sorted and baled according to material type and quality.

Baled materials are sold as commodities to factories and plants, such as paper mills and plastics manufacturers. Clean bales are more valuable and command higher purchasing prices.

The baled materials become inputs for new products, such as water bottles, polyester clothing, and paper towels, thereby reducing the use of virgin materials and natural resources.

Recycling Life Cycle