Governance

ESG Materiality Assessment

OBSERVATIONS FROM 2020:

COVID-19 Impact:

Our tenants, investors, Board, and employees all expressed concern about the impact of the COVID-19 pandemic on our business, our human capital, and our ability to continue progress on our ESG goals.*

Zero Net Transition:

Our tenants, investors, and Board each expressed support for Vornado’s Vision 2030 Plan* as our Net Zero Transition plan, and our investors supported aligning our plan with the Science Based Target Initiative.*

Management Succession Plan:

Our investors, Board, and employees all sought thorough discussion on Vornado’s management changes and transitions made in 2020.

Diversity, Equity & Inclusion:

Our investors, Board, and employees all supported our continued commitment to DEI, and particularly our transparency through publication of the data that Vornado submits to the US Equal Employment Opportunity Commission (EEO).

Executive Compensation:

Our investors and Board prioritized changes to our executive compensation program, particularly in relation to transition of management and alignment with COVID-19-related financial performance.

STAKEHOLDER GROUP

NATURE OF ENGAGEMENT

FREQUENCY OF ENGAGEMENT

KEY TOPICS AND CONCERNS

OUR TENANTS

Active relationship through our property management teams; meetings and discussions on tenant environmental performance; sustainability roundtable or webinar.

Daily (property management) As-needed (in- person meetings); Annually (roundtable/ webinar).

COVID-19 Impact; Energy, Water, and Waste Management; Net Zero Transition; Community Impact; Health and Wellness.

OUR INVESTORS

Conference calls to discuss corporate governance and ESG issues. Discussions include Vornado’s Lead Trustee; President and Chief Financial Officer; Corporation Counsel; and heads of Investor Relations, Human Resources, and Sustainability. Conducted calls with investors representing ownership of at least 50% of all outstanding shares.

Annually, or more frequently as requested. Total investors reached represent
over 50% of all Vornado’s outstanding shares.

COVID-19 Impact; Financial Performance; Executive Compensation; Management Succession; Diversity, Equity & Inclusion and Human Capital Management; Net Zero Transition.

OUR BOARD

ESG update to the Board by the CFO; presentation from the head of Sustainability.

Quarterly (from CFO); Annually (from head of Sustainability).

COVID-19 Impact; Financial Performance; Management Succession; Human Capital Management; Diversity, Equity & Inclusion; Net Zero Transition.

OUR EMPLOYEES

Informal and frequent check-ins on environmental performance; in-person or virtual meetings; employee surveys.

Weekly (informal engagement); Annually (in- person meetings, Virtual Town Hall meeting).

Human Capital Management; Management Succession; Health
& Wellness; Energy, Water, and Waste Management; Net Zero Transition; Sustainable Development.

OUR COMMUNITIES

Active membership and partnerships in community and government organizations focused on civic and environmental issues.

Monthly or more frequently (per meeting schedule).

COVID-19 Impact; Net Zero Transition; Energy, Water, and Waste Management; Community Impact; Climate Change Risk and Mitigation; Sustainable Development.

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 Daniel Egan, SVP of Sustainability & Utilities, who reports to Vornado’s Chief Operating Officer. Vornado’s Sustainability Operations Group includes five dedicated employees and two dedicated employees from our BMS, LLC division.

Human Resources – our Social arm – is led by Samantha Benvenuto, VP, who reports to Vornado’s Chief Administrative Officer. Samantha leads a team dedicated to Human Resources and Benefits.

Corporate Governance – our Governance arm – is led by Steven Borenstein, SVP and Corporation Counsel, who reports to Vornado’s President and Chief Financial Officer. Steven also works regularly with our Chairman and CEO, as well as our Board.

Our Corporate ESG Team is comprised of our senior decision makers on corporate strategy, as well as our pertinent divisional heads and subject matter experts. Specifically, the team includes the following roles:

  • Lead Trustee
  • President and Chief Financial Officer
  • EVP, Finance and Chief Administrative Officer
  • SVP, Corporation Counsel
  • SVP, Sustainability & Utilities
  • VP, Human Resources

Oversight of social and environmental matters, including climate change risk; diversity, equity, and inclusion; and human capital management. Quarterly updates from senior management on ESG and an annual presentation from SVP, Sustainability and Utilities.

Stakeholder engagement, investor communication and outreach, and execution of ESG strategy. Formal schedule of annual investor engagement on ESG and frequent meetings and communication among members.

ESG strategy implementation within respective areas of focus. Daily discussions and active collaboration on specific projects as well as ongoing operations and maintenance.

Integration of ESG strategy across entire spectrum of business units and stakeholder groups. Frequent communication with respective heads of management.