Environmental Leadership

With 40% of all CO2 emissions attributed to the built environment,* our company is committed to the ongoing evaluation of strategies to reduce our building emissions .

Developing responsibly is not only good for the environment but also increases the marketability and overall value of our assets . The following are some of the benefits that have come from our firm’s environmental commitment .

Reduced Operating Costs: A building that operates efficiently and uses fewer resources can offer significant savings in total operating costs and immediate bottom-line results . Typically, the cost of utilities is as much as 20–30% of total operating costs . Lower operating costs and improved environmental performance are desirable both to ownership and to current and prospective tenants .

Enhanced Asset Value: When you reduce a property’s operating expenses or achieve higher rents as a result of sustainable building features, there is a positive impact on net operating income (NOI) . In addition, investors find increasing value from green certification programs such as LEED that can contribute to higher asset values at sale .

Competitive Advantages: Buildings with sustainable features and green initiatives distinguish themselves from other offerings in the market . These are features that tenants value for the positive impact on their own employees, such as increased productivity, reduced absenteeism, higher morale, and lower turnover .

Since the mid-1980s, our company has undertaken numerous capital improvement projects in our Core Holdings portfolio which have resulted in substantial increases in building efficiency . Today, we work with third-party energy management consultants to reduce our carbon footprint and impact on the environment and have posted Energy Star grades above the New York City average . All properties in our Core Holdings portfolio are LEED Certified .

Our efficiency retrofits and many of our new developments are designed and informed by LEED building standards and, thus, incorporate energy conservation measures such as LED lights and sensors, water fixture upgrades, additional insulation, and improved air sealing . A data-driven approach is also utilized to uncover further energy and water efficiency opportunities .

*IEA (2019), Global Status Report for Buildings and Construction 2019, IEA, Paris

1271 AVENUE OF THE AMERICAS New York, NY

DECARBONIZATION AT 1221 AND 1271 AVENUE OF THE AMERICAS

Rockefeller Group recognizes our company’s impact on the built environment . In 2021, Rockefeller Group committed to material decarbonization of our Core Holdings portfolio . The process of decarbonization reduces the intensity of one of the most common greenhouse gases (GHGs) found in the built environment, carbon dioxide . Decarbonization often takes the form of implementing carbon reduction measures (CRMs) such as reducing energy consumption and planning for the greening of the electrical utility grid . “Greening the Grid” refers to converting the electrical grid to renewable energy sources,1 including solar thermal or photovoltaic panels, geothermal heat pumps, and wind2 . This allows organizations to balance unavoidable carbon emissions with equivalent emission reductions using carbon-reducing projects . Because decarbonization drives reductions in CO2, this strategy is a key element in reducing these assets’ environmental impact .

In 2021, our Core Holdings portfolio underwent a decarbonization study with the following objectives:

• Identify carbon reduction measures that will assist in meeting

Rockefeller Group’s emissions reduction goals

• In alliance with the NYC Carbon Challenge, achieve 30% GHG emissions reductions by 2030

• Perform an ASHRAE Level II energy audit and conduct seasonal retro-commissioning of base building mechanical systems

1 https://www .centerforecotechnology .org/greening-the-grid-in-massachussetts/ 2 https://www .epa .gov/statelocalenergy/state-renewable-energy-resources

1271 AVENUE OF THE AMERICAS New York, NY In conducting the study, calculations were performed in accordance with New York City’s Local Law 97 (LL97), legislation passed in 2019 in alignment with the Climate Mobilization Act (CMA) . New York City’s Local Law 87 (LL87) and LL97 require the real estate industry to improve asset performance . LL87 specifically addresses the energy efficiency of large buildings by establishing requirements such as conducting energy audits, retro-commissioning, and submission of Energy Efficiency Reports every 10 years . 3 LL97 directly targets GHG emissions by defining an absolute limit on emissions based on a building’s use classifications and the amount of floor space dedicated to each classification .

4

Calculating and understanding Rockefeller Group’s carbon footprint at 1221 and 1271 Avenue of the Americas is an important step toward reducing its impact on the environment . In partnership with consultants, we have examined our carbon footprint to gauge areas for improvement and progress toward achieving our emission goals . From 2018 to 2019, 1221 Avenue of the Americas achieved a 5% reduction in carbon emissions . During that same time period, 1271 Avenue of the Americas was undergoing a significant renovation so relevant data is not available .

3 https://www1 .nyc .gov/html/gbee/html/plan/ll87_about .shtml 4 https://www .newyorkbuildingenergy .com/nyc_ll97 .html