RXR REALTY 2017 SUSTAINABILITY REPORT

Transcription

1 RXR REALTY 2017 SUSTAINABILITY REPORT

2 LEADING THE WAY 2 RXR REALTY 2017 SUSTAINABILITY REPORT

3 THE POWER OF LOCAL At RXR Realty ( RXR ), we take pride in our role as a leader in the New York City real estate industry. We recognize New York s distinct personality and rich history and we embrace the future of this dynamic region. For over 10 years, our driven team has called New York City home, and our commitment to the region has only strengthened in recent years. One of the ways we have demonstrated this commitment is through strong community engagement. RXR is a proud sponsor of the 9/11 Memorial Walk to Remember and the Long Island Marathon, and we collaborate with organizations such as Her Justice and Operation Backpack to support and assist all New Yorkers. RXR respects the heritage and historical responsibility of its landmark properties while creating 21 st -century workplaces for the most discerning businesses. As part of our broader commitment to the New York metropolitan region, we work hard to understand the impact that environmental issues have on residents in our communities. That is why we participate in local programs like the New York City Carbon Challenge and have created our own alliances, including the West Chelsea Energy Alliance. Through these activities, RXR is helping to pave the way for a healthier and more resilient New York City. Our dedicated team understands the history, diversity, culture, and character that make this region unique we embrace The Power of Local in all the work we do. At RXR, we don t just react to change, we create it. Frank Pusinelli Executive Vice President of Operations, Property Management & Construction 3 RXR REALTY 2017 SUSTAINABILITY REPORT

4 2016 HIGHLIGHTS We take our commitment to the environment seriously. In 2016, we reduced our Greenhouse Gas emissions by more than 9 percent from a 2015 baseline. RXR supports our local community with charity events throughout the year. In 2016, RXR donated more than ONE-HALF MILLION DOLLARS to local nonprofits and community events. In 2016, for the first time, RXR participated in the Global Real Estate Sustainability Benchmark (GRESB) which ranks organizations against their peers on environmental, social, and governance performance. RXR is proud to be a GRESB participant. Awards, Honors, and Certifications RXR s substantial commitment to environmental sustainability and implementing best practices in our building operations has resulted in various recognitions and certifications for the performance, operation, and build-out of our properties. These certifications and awards validate our hard work and inspire us to continually improve every building in our portfolio. The following is a list of awards and certifications earned in 2016 by RXR and its properties. ENERGY STAR 4LABELS More than 20% of the RXR portfolio is now LEED certified and another 600,000 square feet are expected to be certified in the coming years. BOMA Operating Building of the Year 32 Old Slip BOMA Regional Earth Award Starrett Lehigh BOMA Historical Building of the Year 620 Avenue of the Americas 4 RXR REALTY 2017 SUSTAINABILITY REPORT

5 ABOUT RXR REALTY RXR is a vertically integrated private real estate company with expertise in investment management, property management, development, design, construction, leasing, and financing. RXR s core growth strategy is focused on New York City and the surrounding tri-state area markets. Formed in 2007, RXR currently has 74 assets, 22.1 million square feet of real estate, under management. 1 All assets are located within 90 miles of the New York metropolitan area, where RXR leverages its local market knowledge. RXR Employee Statistics: % Female 11% 430 hours dedicated team members throughout the New York metropolitan region of employees in a collective bargaining agreement of sustainabilityspecific training 1. As of June RXR REALTY 2017 SUSTAINABILITY REPORT

6 Our Commitments Environment: RXR recognizes climate change as a threat to our business and understands the impact that commercial real estate can have on the environment. In light of this recognition, RXR has committed to improving in the environmental performance of every asset. Employees: We understand that our dedicated and talented employees set us apart, and in return we are committed to ensuring a positive workplace experience for our entire team. Community: Community engagement is a priority at RXR and we are committed to enhancing the local communities in the places we operate. RXR employees, including executive team members, are very active as volunteers in a wide array of community activities and participants on local nonprofit boards. Our corporate budget includes significant allocations for community events and local charities. Vendors: We work closely with our vendors to procure environmentally responsible products and monitor vendor data to keep us on an environmentally conscious path. Our People RXR employs a dedicated team of approximately 450 people locally based in New York City. Our team has a proven track record and expertise in real estate operations and development, investment management, and corporate operations. We are led by an experienced management team composed of Chairman and CEO Scott Rechler; President and CFO Michael Maturo; Vice Chairman and General Counsel Jason Barnett; COO and Fund Manager Richard Conniff; and Co-COO and President, Construction & Development, Todd Rechler. Beyond their traditionally defined roles, many of our staff members provide leadership and guidance in various internal governance boards, such as the RXR Sustainability Committee. All employees are encouraged to act on RXR s 5 E s at all times: Entrepreneurial, Edge, Execution, Ethics, and Energy. Employee Benefits RXR offers a wide variety of employee benefits, many of which are available to eligible employees from their first day of employment. These benefits include a 401(k) plan health and dental benefits, and Flexible Spending Accounts. Benefit programs are offered to all employees. All employees are also offered jury duty and bereavement pay, worker s compensation insurance, paid time off, and paid holidays. RXR promotes the educational and professional development of our team and we encourage our employees to take ownership of their various roles within the organization. In 2016, our team received trainings on topics including the Urban Green Council GPRO, the Real Estate Board of New York s Sustainability Boot Camp, LEED Green Associate training courses, and Building Owners and Managers Association (BOMA) trainings on refrigerant management and VFD energy savings. 6 RXR REALTY 2017 SUSTAINABILITY REPORT

7 The Power of Local RXR is proud to operate in the New York metro area. Our team is entirely New York-based and understands the local market conditions and opportunities. We are committed to maintaining our position as a market leader in the city. Scott Rechler, Chairman and CEO 7 RXR REALTY 2017 SUSTAINABILITY REPORT

8 OUR APPROACH TO DEVELOPMENT RXR is a leader in the New York real estate market, and we take to heart the maxim of doing well by doing good. To this end, RXR is a strong proponent of pedestrian-friendly, transit-oriented developments that transform vacant or underutilized assets, such as surface parking lots, into thriving communities that generate economic activity and opportunity for all. As of 2016, RXR both on our own and in partnership with other firms has been designated as a master developer in four different municipalities and has secured major downtown development projects in Westchester and Connecticut. Our approach to all development projects has remained consistent, including an open and transparent process with a clear description of what RXR would deliver from beginning to end. Building successful partnerships with the local municipality and community has allowed RXR to make the region a more affordable and desirable place to live, work, and play, and is helping to make the region greener by encouraging infill and transit-oriented development. 8 RXR REALTY 2017 SUSTAINABILITY REPORT

9 Glen Cove Garvies Point Garvies Point, a former munitions manufacturing site, in Glen Cove, New York, was designated as a Superfund site by the United States Environmental Protection Agency in 1986 and later as a brownfield site by New York State. Since 1970, the site has sat vacant. In 2008, RXR was selected by the City of Glen Cove to transform this blighted site into a thriving live-work-play community. The project will also include a new ferry terminal for high-speed ferry service between Glen Cove and Manhattan, supplementing the current transit access to Manhattan provided by the three Long Island Railroad stations near the site. The project includes substantial infrastructure work that RXR will undertake on behalf of the city. This work will be financed through an innovative, PILOT-increment financing program. As of 2016, RXR had largely completed remediation of this site. Development costs: $1 billion Residences: 1,110 Commercial and retail space: 75,000 square feet Total property footprint: 56 acres Waterfront revitalization: 28 acres 9 RXR REALTY 2017 SUSTAINABILITY REPORT

10 New Rochelle In 2014, RXR was appointed by the City of New Rochelle as master developer. During 2015, and in partnership with the City Council, other senior city officials and important stakeholders throughout the community, RXR developed a downtown redevelopment plan in lower Westchester County. The plan is designed to create mixed-use development, affordable housing, and jobs for the community, all within easy walking distance of New Rochelle s train station (Westchester s busiest). The plan also incentivizes and encourages the creation of open space, new cultural facilities, and historical preservation. The plan was unanimously approved by New Rochelle s City Council at the end of In addition, RXR began construction in 2016 on a 280-unit rental project, containing 15,000 square feet of retail and a black box theater. Mixed-use development 11 million square feet Affordable workforce housing 550 units 10 RXR REALTY 2017 SUSTAINABILITY REPORT

11 OUR COMMITMENT TO THE COMMUNITY RXR takes our commitment to the local community seriously, and maintains a continuous charitable presence in the New York region. Through year-round participation, coordination, and sponsorship of events at RXR buildings and elsewhere, RXR and our employees give back time and money to those in the community who need it most. Employees are encouraged to participate and volunteer at all the RXR-supported community events throughout the year. 104 coats collected 64 blood drive participants > $500,000 donated Operation Backpack works to provide every student living in a New York City shelter a new, full backpack. With the help of RXR, more than 15,000 homeless youth received new backpacks and school supplies in The 9/11 Memorial Run/ Walk and Community Day raises awareness for the National September 11 Memorial and Museum and encourages volunteerism in memory of 9/11 victims. RXR supports this initiative as a presenting sponsor. RXR supports the Long Island Marathon weekend, sponsoring the marathon itself and other community events during the weekend. Her Justice provides women in need with pro bono legal services from some of New York s top law firms. In 2016, RXR sponsored the Story by Story stair climb, an annual event to raise awareness and money for Her Justice. In addition to our corporate giving and volunteering efforts, individuals on RXR s Senior Management Team maintain volunteer posts at nonprofit and government agencies in the New York metro area. These included the Port Authority of New York and New Jersey, the National September 11 Memorial & Museum, the Long Island Association, the Downtown Alliance, the Long Island City Partnership, the Feinstein Institute for Medical Research, the Drum Major Institute, the American Technion Society, and the Tribeca Film Institute. 11 RXR REALTY 2017 SUSTAINABILITY REPORT

12 ENGAGING THE 21 ST -CENTURY TENANT At RXR, we recognize the changing needs of our tenants. Demand for unique and versatile office spaces are at an all-time high. As our tenants needs change, we work to align our buildings with the needs of the modern workforce. To this end, RXR is committed to creating a superior tenant experience at every property. To help tenants create inspiring spaces that match the excellency of their work, RXR has created a Tenant Fit Out Guide to provide a framework for designing and building more sustainable spaces. This fit out guide includes environmental and well-being strategies to increase water efficiency, improve indoor air quality, use more high-quality and sustainable materials, and reduce the amount of energy used. In addition, RXR supports LEED and WELL certifications of tenant spaces wherever possible. Tenant Statistics: 100% of tenants have access to bicycle storage Customized art, including sculpture, photography, and paintings is located throughout many of the RXR properties. More than 40 tenants participated in green education events led by RXR. 12 RXR REALTY 2017 SUSTAINABILITY REPORT

13 ENVIRONMENTAL SUSTAINABILITY As part of the 2017 reporting initiative, RXR has performed a comprehensive assessment of environmental metrics, including energy, water, waste, and greenhouse gas emissions. RXR is committed to honest and consistent disclosure of all environmental metrics to demonstrate year-over-year changes in energy, greenhouse gas, water, and waste performance.these metrics give us a snapshot of the environmental performance across our portfolio and will inform efficiency measures we implement in the coming years. Property managers in the New York City region make up RXR s Sustainability Committee, a group that meets regularly to review sustainability initiatives and review risks and opportunities related to issues of resiliency, energy efficiency, legislation, and tenant engagement. Reported metrics are based on 2015 and 2016 like-for-like New York City assets. This includes 11 owned or managed commercial properties in New York City totaling approximately 8.9 million square feet. Environmental Goals and Targets: RXR has set numerous goals and targets to reduce energy usage, increase indoor air quality, and create an overall better experience for tenants and employees. RXR has set a portfolio-wide goal of achieving an ENERGY STAR score of 75 or higher and earning the ENERGY STAR label at each property. To manage indoor air quality, RXR has implemented best practices in the following areas: green cleaning products, sustainable and low-emitting cleaning equipment, least toxic pesticides, and environmental tobacco smoke control. RXR is committed to achieving a 75% diversion rate in typical office waste across the portfolio and achieving a 100% diversion rate across the portfolio with e-waste, batteries, and mercury-containing waste. To reduce water usage at buildings, RXR is installing WaterSense-labeled or low-flow fixtures whenever possible. 13 RXR REALTY 2017 SUSTAINABILITY REPORT

14 2016 Portfolio Environmental Highlights 340 Madison Despite a 44 percent increase in building occupancy, energy usage at 340 Madison has decreased by 2 percent. This improvement is due to millions of dollars of capital investments aimed at helping the building run at peak efficiency. Starrett Lehigh Building Starting in mid-2015 and continuing throughout 2016, the Starrett Lehigh Building has been replacing its windows all 5 miles of them with more efficient windows to help the property save energy. The project is expected to reduce energy needs by more than 11,000,000 kwh, saving the building nearly $500,000 in annual energy costs. 14 RXR REALTY 2017 SUSTAINABILITY REPORT

15 Sustainability Performance Energy Electricity, gas, fuel oil, and steam generate the total energy usage metric seen below. Energy use is based on reported values (tenant and base building) from 11 commercial office buildings in New York owned and/or operated for all of 2015 and VALUES IN KWH % CHANGE RXR Purchased Electricity 101,701, ,623, Tenant Purchased Electricity 50,551,700 56,737, TOTAL PURCHASED ELECTRICITY 152,252, ,360, Gas 22,398,908 21,109, Oil 8,930,487 8,103, Steam 33,257,235 29,538, TOTAL HEATING 64,586,629 58,751, TOTAL ENERGY 216,839, ,112, The reduction of 730,000 KWH OF ENERGY from 2015 to 2016 could power 59 homes for a year. 15 RXR REALTY 2017 SUSTAINABILITY REPORT

16 Sustainability Performance Greenhouse Gas Emissions Greenhouse gases are emitted by the daily business operations of all organizations and contribute to climate change. In the real estate sector, both direct and indirect emissions are generated. RXR considers climate change as a critical threat and is committed to reducing our impact on the environment. The below GHG inventory was performed by a third party, CodeGreen Solutions, in accordance with the widely accepted methodologies in the GHG Protocol and is based on site-specific data from 11 New York commercial office buildings owned and/or operated by RXR for all of 2015 and These calculations include all energy used at the buildings and are separated by base building and tenant usage. To convert raw data collected into carbon emissions, the GHG team applied industry standard emissions factors published by the GHG Protocol and DEFRA. VALUES IN METRIC TONS OF CO 2 e % CHANGE SCOPE 1 (Natural gas and fuel oil) 9,355 6, % SCOPE 2 (Base building electricity and district steam) 45,017 43, % SCOPE 3 (Tenant energy usage direct and sub-metered) 18,575 20, % TOTAL 72,946 70, % RXR s CO 2 e reductions in 2016 is the EQUIVALENT OF REMOVING 578 VEHICLES OFF THE ROAD for a year. 16 RXR REALTY 2017 SUSTAINABILITY REPORT

17 Sustainability Performance Water The below water usage is based on reported values by 11 commercial office buildings in New York owned and/or operated for all of 2015 and 2016 and represents total building water use (tenant and base building). RXR s commitment to the environment means reducing usage across all metrics, including water. In the coming years RXR will continue to implement a water management policy to create water usage goals for each building as well as a policy for installing low-flow and EPA WaterSense-labeled fixtures in all new buildings and renovation projects. VALUES IN KGAL % Change RXR REALTY PROPERTIES 174, , % Waste Recognizing the impact landfills have on the environment and human health, RXR actively works to reduce the amount of waste sent to landfills. The diversion rate, a metric showing the amount of waste not sent to a landfill, is an average from 11 New York buildings in 2016 as reported by waste haulers. AVERAGE DIVERSION RATE 2016 RXR REALTY PROPERTIES 63% Approximately 4,700 TONS OF WASTE was diverted from landfills in RXR REALTY 2017 SUSTAINABILITY REPORT

18 STAKEHOLDER ENGAGEMENT Stakeholders provide critical feedback on our sustainability programs and initiatives. In preparation for the development of RXR s second annual sustainability report, we ensured that all key stakeholder groups were represented. Our stakeholder engagement program is formalized through monthly meetings as well as informally through regular communication and outreach. Materiality Assessment RXR identifies stakeholders as all parties that may be affected by our day-to-day business operations. This list includes employees, tenants, local community, investors, and vendors. To ensure that the interests of all key stakeholder groups are covered in this report, RXR has completed a quantitative materiality assessment. In the assessment, RXR considered a long list of potentially material topics and ranked the Impact and Importance of each topic from the perspective of each stakeholder group. 18 RXR REALTY 2017 SUSTAINABILITY REPORT

19 Impact The ability of the organization to contribute positively or negatively to the overall status of the topic. Importance The degree to which the metric is aligned with the company vision and purpose, and the extent to which stakeholders have shown concern for this topic. All topics were graphed according to their rankings on Impact and Importance. The topics that fell within the top 25 percent of this graph were considered material. These topics include energy consumption, intensity, and reduction; greenhouse gas emissions; waste diversion; and the impact on local communities. Although not all material topics are expressly addressed in this report, RXR is working toward ensuring that all material topics are addressed internally through policies, trainings, programs, and, if applicable, ongoing measurement and monitoring. Materiality Matrix Importance to Stakeholders LOW MEDIUM HIGH LOW MEDIUM Potential Impact HIGH 1. Materials, Packaging and Recycling 2. Energy Consumption 3. Water Consumption 4. Biodiversity 5. GHG Emissions 6. Waste Management 7. Certifications and Products Labeling 8. Regulatory Compliance 9. Transportation 10. Vendor and Supplier Responsibility 11. Employment and Benefits 12. Governance, Ethics and Transparency 13. Occupational and Tenant Health and Safety 14. Training and Education 15. Diversity 16. Community Engagement and Impact 17. Economic Performance 19 RXR REALTY 2017 SUSTAINABILITY REPORT

20 ABOUT THIS REPORT To ensure a complete and accurate performance inventory for the report, RXR Realty hired CodeGreen Solutions, a sustainability and energy efficiency consultancy, to manage the collection of data and the greenhouse gas calculation process. CodeGreen Solutions worked with the management and building staff at RXR Realty, as well as external consultants and service providers, to gather as accurate and complete information as possible for the report. This is the second annual report completed by RXR and the data in this report is based on the 2015 and 2016 calendar years, unless otherwise indicated. The first RXR sustainability report was completed in This report covers only the New York City commercial office buildings that were owned and/or operated by RXR for both 2015 and 2016 full calendar years, unless otherwise indicated. This sustainability report follows the GRI Core reporting framework, and contains Specific and Standard Disclosures from the GRI Sustainability Reporting Guidelines, as well as the Construction and Real Estate Sector Supplement (CRE). In developing this report, RXR Realty worked with sustainability consultant, CodeGreen Solutions, to report on aspects which we deem to be important to our stakeholders and to continued operational performance. The contact person for this report is Michael Aisner, Portfolio Property Manager at RXR Realty. 20 RXR REALTY 2017 SUSTAINABILITY REPORT

21 GRI Content Index This report is aligned with GRI Standards. The following content index is a requirement of all GRI report and indicates the location of each General Standard Disclosure and Specific Standard Disclosure included in this report. Disclosure Number Reference/ Location GRI 100: UNIVERSAL STANDARDS GRI 102: General Disclosures RXR Realty About RXR Realty New York, New York About RXR Realty About RXR Realty About RXR Realty About RXR Realty About RXR Realty Our Commitment to the Community/ Environmental Sustainability Our Commitment to the Community The Power of Local About RXR Realty About RXR Realty About this Report About RXR Realty About RXR Realty Stakeholder Engagement Stakeholder Engagement About RXR Realty Stakeholder Engagement Stakeholder Engagement Stakeholder Engagement About this Report Stakeholder Engagement About this Report About this Report About this Report About this Report About this Report GRI Context Index Disclosure Number Reference/ Location GRI 200: ECONOMIC STANDARDS GRI 202: Market Presence About RXR Realty GRI 203: Indirect Economic Impacts Our Commitment to the Community Our Commitment to the Community GRI 300: ENVIRONMENTAL STANDARDS GRI 302: Energy Environmental Sustainability Environmental Sustainability GRI 303: Water Environmental Sustainability GRI 305: Emissions Environmental Sustainability Environmental Sustainability Environmental Sustainability Environmental Sustainability GRI 306: Effluents and Waste Environmental Sustainability GRI 400: SOCIAL STANDARDS GRI 401: Employment About RXR Realty GRI 404: Training and Education About RXR Realty GRI 405: Diversity and Equal Opportunity About RXR Realty GRI 413: Local Communities Our Approach to Development/ Our Commitment to the Community GRI G4 SECTOR SUPPLEMENT: CONSTRUCTION AND REAL ESTATE G4 CRE Highlights 21 RXR REALTY 2017 SUSTAINABILITY REPORT

22 RXRREALTY.COM 2017 RXR Realty