Empire State Realty Trust Reaches Carbon Neutrality for Commercial Portfolio

Rhea-AI Summary

Empire State Realty Trust (NYSE: ESRT) has achieved carbon neutrality for its 9.9 million square foot portfolio by offsetting non-electric fossil fuel usage through a three-year partnership with 18 Reserves and ACT. This initiative preserves 9,000 acres of biodiverse forest. The company has already reduced greenhouse gas emissions by 54% at the Empire State Building. ESRT aims for an 80% reduction in operational emissions by 2030 and net zero by 2035. Notably, ESRT is the largest user of 100% green power in real estate.

Positive

• Achieved carbon neutrality for 9.9 million square foot commercial portfolio.
• Reduced greenhouse gas emissions by 54% at the Empire State Building.
• Preservation of 9,000 acres of biodiverse forest to offset fossil fuel usage.
• Plans to reduce operational emissions by 80% by 2030 and reach net zero by 2035.
• Largest user of 100% green power in real estate.

Negative

• None.

Additional 100% Offset of Non-Electric Usage Through Preservation Support of 9k Acres of Biodiverse Forest

ESRT previously offset electricity with 100% renewable wind power throughout the portfolio

NEW YORK, Sept. 22, 2022 /PRNewswire/ -- Empire State Realty Trust, Inc. (NYSE: ESRT) announced today that it achieved carbon neutrality for its 9.9 million square foot commercial portfolio through a combination of its industry leadership in building energy-efficiency retrofit work and a new three-year agreement with 18 Reserves and ACT. The new agreement supports the preservation of close to 9,000 acres of biodiverse forest that will offset 100% of ESRT's non-electric fossil fuel usage.

ESRT's continued leadership in sustainability and energy efficiency has already reduced greenhouse gas emissions at the Empire State Building by 54% and the entire commercial portfolio by 43%. ESRT recently published the "Empire Building Playbook: An Owner's Guide to Low Carbon Retrofits" – co-developed with NYSERDA and supported by other NYC-based landlords and the Clinton Global Initiative – to guide building owners in the steps to achieve carbon neutrality through emissions reduction with less dependence on offsets and a proven return on investment.

"As legislation, market demand, and climate change risk push real estate owners to meet emissions reduction requirements, companies need to seek out more advanced ways to offset their current usage while they work to reduce emissions," said Anthony E. Malkin, chairman, president, and CEO at Empire State Realty Trust. "ESRT continues to innovate and implement ways to serve as a destination for high quality tenants and benefit investors with considerable savings and returns. This partnership with 18 Reserves and ACT supports efforts to conserve and protect carbon-sequestering forest on behalf of ESRT and our tenants."

ESRT views offsets as a tool for emissions mitigation as it actively works towards energy efficiency and reduction in operational emissions within its portfolio. In partnership with a more renewable grid, ESRT is on track to achieve its target of net zero emissions with 80% reduction in operational emissions at the Empire State Building by 2030 and throughout its entire commercial portfolio by 2035, and the remaining 20% covered by qualified offsets. ESRT includes 100% of direct emissions (scope one), indirect emissions (scope two), and indirect downstream leased assets emissions (scope three) as part of their definition of carbon neutrality and commitments to emissions reductions, offsets, and disclosure as all these areas are crucial to achieve carbon neutrality. 

The 9,000 acres of preserved, biodiverse forest, owned by the Department of Forestry and located near Cleveland, Ohio, will fully offset ESRT's steam and natural gas usage. This initiative complements ESRT's current offset of all electricity usage with wind renewable energy credits (RECs) at the Empire State Building since 2011 and throughout the portfolio since January 2021 in a long-term partnership with Green Mountain Energy. The 2021 contract made ESRT the nation's largest user of 100% green power in real estate (source).

"We are focused on our target to reduce operational emissions 80% by 2030 at ESB and 2035 for the entire commercial portfolio," said Dana Robbins Schneider, ESRT's SVP, director of energy, sustainability, and ESG. "While we implement measures to achieve this target in partnership with the grid and through ROI-driven projects such as our 3.4MW solar canopy, 8.2MW battery, and 80 EV charging station project in Westchester, NY, we have committed to offset the remaining fossil fuel emissions associated with our portfolio through accredited and impactful sources."

ESRT regularly invests in and implements measures to reduce the environmental impact of its portfolio and transparently publicly shares its industry-leading practices in energy efficiency, emissions reduction, healthy buildings, and indoor environmental quality.

"Our portfolio remains an attractive offering for tenants whom flight to quality means healthy, energy efficient buildings at an accessible price point," Malkin added. More information about ESRT's leadership in sustainability can be found online.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT) is a REIT that owns and manages office, retail and multifamily assets in Manhattan and the greater New York metropolitan area. ESRT owns the Empire State Building, the World's Most Famous Building, and Tripadvisor's 2022 Travelers' Choice Best of the Best Awards #1 attraction in the U.S. and #3 attraction in the world, the newly reimagined and iconic Empire State Building Observatory. The company is a leader in healthy buildings, energy efficiency, and indoor environmental quality and has the lowest greenhouse gas emissions per square foot of any publicly traded REIT portfolio in New York City. As of June 30, 2022, ESRT's portfolio is comprised of approximately 9.2 million rentable square feet of office space, 700,000 rentable square feet of retail space and 625 residential units across two multifamily properties. More information about Empire State Realty Trust can be found at esrtreit.com and by following ESRT on Facebook, Instagram, Twitter and LinkedIn. 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of words such as "assumes," "believes," "estimates," "expects," "intends," "plans," "projects" or the negative of these words or similar words or expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond ESRT's control and could materially affect actual results, performance or achievements. Such factors and risks include, without limitation, (i) the current public health crisis and economic disruption from the COVID-19 pandemic, (ii) a failure of conditions or performance regarding any event or transaction described above, (iii) environmental uncertainties and risks related to climate change, adverse weather conditions, rising sea levels and natural disasters; and (iv) accuracy of our methodologies and estimates regarding ESG metrics and goals, (v) tenant willingness and ability to collaborate in reporting ESG metrics and meeting ESG goals, (vi) impact of governmental regulation on our ESG efforts, (viii) and other risks and uncertainties described from time to time in ESRT's and ESROP's filings with the SEC, including those set forth in each of ESRT's and ESROP's Annual Report on Form 10-K for the year ended December 31, 2021 under the heading "Risk Factors." Except as may be required by law, ESRT and ESROP do not undertake a duty to update any forward-looking statement, whether as a result of new information, future events or otherwise. 

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SOURCE Empire State Realty Trust, Inc.

FAQ

What is Empire State Realty Trust's carbon neutrality achievement date?

Empire State Realty Trust announced its carbon neutrality achievement on September 22, 2022.

How much greenhouse gas emissions has ESRT reduced?

ESRT has reduced greenhouse gas emissions by 54% at the Empire State Building and 43% across its entire commercial portfolio.

What is the size of ESRT's commercial portfolio?

ESRT's commercial portfolio covers 9.9 million square feet.

What are ESRT's future emission reduction targets?

ESRT targets an 80% reduction in operational emissions by 2030 and aims to achieve net zero emissions by 2035.

How many acres of forest did ESRT preserve for carbon offsets?

ESRT has preserved 9,000 acres of biodiverse forest to fully offset its non-electric fossil fuel usage.