SUSTAINABILITY from the ground up

2013 REPORT SUSTAINABILITY AT VORNADO: 2013 KEY METRICS

CHAIRMAN’S LETTER 3 VORNADO OWNS AND MANAGES ENERGY STAR GRI INDEX & SCORECARD 4 Partner of the Year FROM THE GROUND UP 5 2013 & 2014 A STRONG FOUNDATION 6 31.2 MILLION SF THE WORKPLACE 16 OF LEED CERTIFIED PROPERTIES A VIEW FROM THE TOP 20 PERFORMANCE & VERIFICATION 22

OUR PEOPLE 25 OUR RESULTS 26 OUR PARTNERSHIPS IBC Global Real Estate Sustainability Benchmark (GRESB) Green Star ranking OVER 20,000 TONS 42,000 MWh 2013 OF RECYCLED REDUCTION MATERIALS IN ENERGY

MORE THAN $5.35 MILLION NAREIT Leader in 350 GREEN INVESTED IN LEASES SIGNED ENERGY the Light award, EFFICIENCY 4th year in a row

B | SUSTAINABILITY FROM THE GROUND UP | 1 At Vornado, sustainability — for good reason — is a central element of our business strategy. Sustainability delivers concrete value to our shareholders, our tenants, and the communities where we operate. That, in turn, makes Vornado a stronger, more trusted,

and widely respected enterprise. STEVEN ROTH, CHAIRMAN & CEO, VORNADO REALTY TRUST In our industry, the infrastructure and operations that we put in place to make our buildings more sustainable provide a clear competitive advantage. So we view sustainability not only as the right thing to do but also the smart thing to do. Consequently, we’ve made a considerable effort to build a team of professionals that understands the large body of technical and process skills that’s required to We also work closely with local communities to curb our impact on make sustainability work. limited municipal resources. Our 6 megawatt cogeneration The effort has been well worth the investment. Vornado’s level of project at One Penn Plaza in , for example, has shown expertise with respect to all aspects of sustainability — from the way what’s possible to accomplish in terms of retrofitting a pre-existing we design, build, retrofit, and maintain our portfolio of buildings — building to limit its strain on a city’s electrical grid. Similarly, the is unmatched by any other company in our industry. With respect automated demand response technologies we’ve adopted further to gains in energy and resource efficiency, the results we’re seeing enable us to curtail our consumption when called upon by a utility. year-on-year have had a material impact on our operational costs. We’re also leading the way in efforts to make our buildings more And our success in applying sustainability in ways that deliver resilient to unpredictable events. Resiliency directly correlates to risk tangible health and cost benefits to our tenants pays off in real mitigation — a considerable value-added benefit for our tenants, dividends in terms of our occupancy and retention rates. employees, and shareholders. It’s important to keep in mind that when it comes to sustainability, Getting sustainability right is a tough but necessary undertaking. we’re not just focused on our high-value assets. To the contrary, we Fortunately, Vornado has the most knowledgeable and dedicated concentrate our efforts wherever we see the greatest opportunities sustainability professionals in the industry and an ongoing to substantially raise the sustainability profile of one of our holdings continuing education that keeps them at the top of their game. regardless of asset value. Accordingly, we regularly conduct energy They understand what’s happening in sustainability today — audits and retro-commissioning reports to identify inefficiencies and where it’s headed tomorrow. in our underperforming buildings. And our Energy Efficiency Sustainable buildings — from the ground up — are the future of Capital Fund is designed to finance projects that correct these this industry. In the coming years, expect Vornado to push the inefficiencies. As a result of that program, we get smarter about envelope for REITs everywhere in terms of new sustainability- our management protocols, we operate our buildings more related technologies and techniques. Exciting — and challenging — efficiently, and we lower our operating costs. times lay ahead. Stay tuned. AERIAL VIEW OF PENN PLAZA Best regards, DISTRICT, NEW YORK CITY

Steven Roth Chairman & CEO, Vornado Realty Trust

2 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 3 INTRODUCTION

GLOBAL REPORTING INITIATIVE (GRI) INDEX FROM THE GROUND UP The GRI has developed an internationally recognized framework for sustainability reporting. This report Our goal is simple — to make our buildings the best in contains Standard Disclosures from the GRI Sustainability Reporting Guidelines (G4). The following table the industry. indicates the location of, or direct response to, GRI and associated construction and real estate (CRE) Vornado has been committed to sustainability for a long time, as demon- sector-specific disclosures included in this report and other publicly available Vornado documents. strated by our numerous successes, impressive business results, and recognized industry leadership. In this report, you will read about our strategy for mitigating environmental risks and capitalizing on market INDICATOR NUMBER DESCRIPTION REFERENCE/RESPONSE opportunities through sustainability.

STRATEGY AND ANALYSIS As a vertically integrated company, our policies — from green cleaning G4-1 CEO statement “Chairman’s Letter,” page 3 to energy efficiency — are implemented across our entire portfolio. This means that all our assets are operated and maintained to the same high ORGANIZATIONAL PROFILE standards, and, while we currently have more LEED certified space than G4-3 – G4-9, G4-13 Organizational profile details 2013 Vornado Annual Report any other property owner in the nation, we are striving to make all our Participation or in-depth membership in industry buildings LEED and ENERGY STAR eligible. G4-16 “Our Partnerships,” page 29 or community associations But we believe that the next frontier of sustainable real estate extends REPORT PROFILE beyond certifications and efficiency upgrades — which is why Vornado G4-28 Reporting period Calendar year 2013 is ensuring that our buildings are the best in the industry through a strong focus on technology, resiliency, and health. This creates lasting G4-29 Date of most recent report This is Vornado’s fourth sustainability report. value for our investors, our tenants, our employees, and our communities. G4-31 Contact for report information http://www.vno.com/contact-us We continue to set a high bar for ourselves (and, by extension, our G4-33 External assurance Data was third-party verified by Paladino & Company competitors) by making smart infrastructure improvements, investing GOVERNANCE in sustainable technologies, employing best practices for buildings Governance structure of the organization, http://www.vno.com/governance/overview operations, and establishing partnerships with our tenants and G4-34 including ESG decision making “Our People,” page 25 communities. Vornado’s dedicated sustainability team is committed to achieving our objectives by maintaining our focus on: ETHICS AND INTEGRITY Values, principles, standards, and norms of behavior • TECHNOLOGY. We research and implement infrastructure projects G4-56 http://www.vno.com/governance/conduct-and-ethics such as code of conduct or ethics and technologies that create a more robust portfolio, increase asset CATEGORY: ECONOMIC valuation, and improve our operational efficiency.

G4-EC1 Economic value 2013 Vornado Annual Report • RESILIENCY. We prioritize initiatives that allow us to reduce our operational costs and impacts and respond rapidly and intelligently to G4-EC2 Climate change risks 2013 Vornado Annual Report market, regulatory, and environmental risks and conditions. CATEGORY: ENVIRONMENT • HEALTH. We create buildings that support our tenants’ well-being CRE-2, G4-EN3, G4-EN5, to ensure that we attract top-tier, long-term clients. And we actively G4-EN6, G4-EN8, G4-EN15, Energy, water, GHG, and waste “Our Results,” pages 26-27 engage our tenants, community, and employees in our strategic G4-EN16, G4-EN18, sustainability efforts. G4-EN19, G4-EN23 Vornado has a proven track record of creating value through sustainability CATEGORY: PRODUCT RESPONSIBILITY leadership, and we are excited about the many success stories yet to “Sustainability at Vornado: 2013 Key Metrics,” IFC come. We invite you to read on to learn more about how Vornado has “The Workplace,” page 19 fully integrated sustainability into the fabric of our company’s assets, CRE-8 Awards, certifications, and labels “Performance & Verification,” pages 22-23 operations, and culture and how we will continue to maintain our http://www.vno.com/commitment-and-awards sustainable competitive advantage — from the ground up.

4 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 5 THE FOUNDATION OUR COGEN PLANT GENERATED MORE THAN 12.5 MILLION kWh OF ELECTRICITY AND 24,000 MLBS OF STEAM IN 2013, A STRONG FOUNDATION ENOUGH TO POWER 1,000 HOMES

We target retrofit projects that offer opportunities for enhanced operational control and significant reductions in energy consumption. Our sustainability capital investments include mechanical system upgrades, improved monitoring and measurement systems, and additional communications and control infrastructure so that we The foundation of our sustainability efforts is the tenants and investors through can actively manage what effective management of resources in our buildings. systems and infrastructure that we measure. allow continuous measurement, monitoring, and improvement In 2013, these projects totaled of our portfolio’s performance. roughly $5.35 million and had Vornado operates our buildings an average three-year payback. ENERGY EFFICIENCY sustainably and efficiently by A major milestone for Vornado CAPEX FUNDS SUPPORT establishing portfolio-wide best in 2013 was the integration practices in energy and EFFICIENCY AND of our sustainability CAPEX water conservation, carbon DEMAND RESPONSE efforts with automated reduction, resource and waste Vornado’s dedicated Energy demand response capabilities management, and ecologically Efficiency CAPEX Fund allows to “smart grid”-enable our sensitive procurement. us to strategically invest in buildings in the New York We implement solutions that building retrofits in order to market so they support the go beyond risk proofing. Our improve operating efficiency at public electric grid during goal is to create value for our properties across our portfolio. peak and critical periods.

PORTFOLIO OF 2013 CAPEX FUND INVESTMENT BY BUSINESS UNIT ($ 000s)

Projected payback:

New York & California 2,458 3.0 years

Washington, DC 1,845 2.5 years

Merchandise Mart 535 2.6 years Properties (MMPI) VIEW FROM INSIDE OUR 6.2 MW COGENERATION PLANT AT Retail 510 3.0 years ONE PENN PLAZA, NEW YORK CITY

6 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 7 ON-SITE GENERATION AND ELECTRIC VEHICLE CHARGING While we work to reduce the energy consumption and carbon footprint of our buildings, Vornado also continues to investigate opportunities for Our 900 kilowatt solar project backup power and onsite at Bergen Town Center in generation as a strategy to New Jersey generates enough reduce our carbon footprint electricity to supply common and improve power reliability area needs at the property. In in our buildings. 2013, the project produced nearly one million kilowatt hours Our 6.2 megawatt (MW) (kWh) of on-site, carbon-free cogeneration project at power for the building. One Penn Plaza in New York City continues to provide up to Vornado has installed and 60% of the building’s electricity commissioned 10 electric and up to 30% of the building’s vehicle charging stations across steam requirement, making it the greater Washington, DC one of the largest cogeneration metro area, including Arlington projects ever to be integrated County, Fairfax County into an existing New York City and downtown DC, where the office building. introduction of electric vehicle charging stations help to support the emerging electric vehicle market. 900 kW SOLAR PROJECT AT BERGEN TOWN CENTER IN PARAMUS, NJ 6.2 MW COGENERATION PLANT AT ONE PENN PLAZA, NEW YORK CITY We continue to investigate additional opportunities in our portfolio.

Our 6.2 megawatt cogeneration project at One Penn Plaza in New York City continues to In 2013, our 900 kW solar provide up to project produced 920,000 kWh of carbon-free electricity. % 60 of the building’s electricity. VORNADO-BRANDED ELECTRIC VEHICLES (CHEVY VOLTS) FOR USE BY OUR WASHINGTON, DC TEAM

8 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 9 Tracking energy in real time

In 2009, Vornado launched Since then, we have focused on ENERGY SAVINGS FROM LED LIGHTING RETROFIT AT OUR our proprietary Energy making the EIP a valuable tool CORPORATE HEADQUARTERS IN NEW YORK CITY Information Portal (EIP™) in for our building operators, our New York portfolio as a managers, and portfolio-level 35.0 31.1 tool to provide tenants with staff to evaluate building 30.0 real-time monitoring of their operations and new efficiency energy consumption. Collecting projects. We also use the EIP 25.0 pulse output readings from to monitor and verify that the 19.9 3,000 submeters across the projects we are implementing 20.0 portfolio, the EIP displays through our Energy Efficiency 15.0 consumption to tenants and CAPEX Fund generates the building operators in graph and savings we anticipate. As the Usage (kWh) 10.0 table format, enabling them to saying goes, you can’t manage see the success of their energy what you can’t measure. So we 5.0 reduction activity — and the have built a system that enables 0.0 associated cost savings — our operators and decision Mon. Tues. Wed. Thurs. Fri. Sat. Sun. on a real-time basis. makers, as well as our tenants, to do just that. Four-week average prior to install Week post install

VORNADO’S TENANT SERVICE CENTER IN WASHINGTON, DC Building a smarter network The primary focus of our response automation. As we For instance, the Tenant first in the NY-ISO market to Energy Efficiency CAPEX Fund upgrade energy infrastructure Service Center (TSC) manages join the automated demand is to improve the infrastructure and controls in our buildings, a portfolio-scale demand response program. Overall, in our buildings and to reduce we also build the infrastructure response program that has the in 2013, our portfolio shed more Remote monitoring energy consumption. Related needed to support the electrical capacity to reduce portfolio- than 40 MW of load throughout and 24/7 service to these efforts, Vornado, over grid during critical periods wide energy demand by more the year to help stabilize the past few years, also has by automatically shedding than 3 MW. In 2013, our NY the grid. Vornado’s TSC in Washington, reduce energy costs by shifting in real time. The Vornado Tenant become a leader in demand electrical load in our buildings. portfolio became one of the DC is one of the largest and energy use and peak demand. Services System eliminates most sophisticated energy paper-based work orders and management and building The TSC also delivers allows tenants to easily initiate system control centers in the outstanding building services, and track their requests for VORNADO NEW YORK CITY US. The TSC not only monitors including a state-of-the-art service and maintenance. DEMAND RESPONSE PERFORMANCE and controls energy use in web-based Service Request DURING THIS WEEK: Vornado’s owned and managed initiation and tracking system properties but also manages that allows property managers, building energy use for time- building engineers, tenants, and New York City had a 5 record days of vendors to communicate record heat wave in demand response of-day energy pricing to July 2013 events called to stabilize the grid 23.2 MW OF REDUCTION

10 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 11 VORNADO’S ENERGY MANAGEMENT PLANNING CYCLE IMPLEMENT ACTION PLAN Aligning our guidelines with ENERGY STAR • Work with engineering teams to plan, budget, and implement projects Walking the talk • Ensure monitoring and verification are part of implementation Our corporate headquarters the building has seen year over at 888 Seventh Avenue in year reductions in its energy New York City is a prime consumption. As a result of example of our commitment these efforts, we have seen the to energy management and ENERGY STAR score of the efficiency. By investing in the building increase over 20 points, infrastructure and operations of from 53 in 2009 to 74 in 2013, the building, including through and we anticipate receiving both a major upgrade of the chiller an ENERGY STAR and LEED plant, implementation of new certification for the building in VFDs and motors, robust 2014/2015. MAKE COMMITMENT ASSESS PERFORMANCE CREATE ACTION PLAN training for building operators, & SET GOALS and investment in LED lighting, • Benchmark, review building performance and energy data

• Use audits and RCX reports EVALUATE PROGRESS to guide energy plan for each building • Using metering and data, evaluate project results • Share success stories with Vornado team for RECOGNIZE wider deployment ACHIEVEMENTS REASSESS • Award and reward programs in place to recognize operators and staff • Share success with investors, tenants, and employees through website and reports

OUR CORPORATE HEADQUARTERS AT 888 SEVENTH AVENUE, NEW YORK CITY

12 | FROM THE GROUND UP VORNADO REALTY TRUST | 13 THE VORNADO RECYCLING PROCESSES IN OFFICE BUILDINGS

STA RT ESTABLISH A PROGRAM The Mart recycles, big time

In 2013, the Merchandise • Diversion of 49 tons of Partners in the Merchandise COLLECTION Mart achieved a diversion rate compostable material through Mart’s recycling program include: EDUCATE TENANTS TO KEEP WET AND DRY WASTE SEPARATE of more than 83%, recycling a biweekly collection program • Republic Services TRAINING FOR CLEANING STAFF TO GATHER WASTE IN 6,500 tons of material. Programs with 10 food service-related • Collective Resource APPROPRIATE CONTAINERS at the Mart include recycling companies. • Fluorecycle of construction and demolition • Carpet recycling totaling • Kruse Carpet Recycling materials, batteries, light bulbs, more than 84 tons. • Rebuilding Exchange HAULING ballasts, electronics, compost, • Zero Landfill initiative • Zero Landfill WORK WITH HAULING COMPANIES TO carpeting, and single stream for UNDERSTAND OUR GOALS recycling over 10 tons • BMS desk-side and common areas. of used office supplies, • Delta Institute Here is part of what the designer product samples, Mart achieved in 2013: WEIGHING & SORTING and leftover paint. REQUIRE HAULING COMPANIES TO PROVIDE • Individually weighing material In 2014 we expect to achieve FOR WASTE STREAM DATA ON A REGULAR BASIS from office tenants and a minimum 50% consumables common areas, logging 30% recycling rate at the Mart. In of all consumable material. addition, we plan to distribute Diversion rate of 30%, with MAKE IMPROVEMENTS more than 3,000 desk-side the highest at 55%. REVIEW BUILDINGS-LEVEL WASTE waste receptacles and expand DATA AND MAKE IMPROVEMENTS the composting program. YEAR-OVER-YEAR

OUR MERCHANDISE MART PROPERTY IN CHICAGO RECEIVED LEED EB GOLD RECERTIFICATION IN 2013

WASTE, RECYCLING, AND RESOURCE MANAGEMENT WATER MANAGEMENT Recycling is a team effort Our goal is to achieve at least Vornado continues to We are retrofitting the plumbing between Vornado, our a 75% landfill diversion rate demonstrate environmental fixtures across our portfolio Our portfolio specification contractors, and our tenants. for all our new development stewardship by monitoring and have a leak detection is for water and plumbing Water reduction success We are implementing a strategic construction projects and and improving our whole program in place to quickly fixtures that In 2013, Vornado’s building at waste management plan that at least 50% for all tenant portfolio’s water efficiency. We identify opportunities to 20 Broad Street won the EPA’s includes tenant and employee improvements. monitor water usage to identify conserve water. In 2013, Vornado’s portfolio MEET OR EXCEED National Buildings Competition education, incentive programs, anomalies and leaks before Vornado’s waste management LEED STANDARDS for its reduction in water strengthened contracts with they result in high consumption consultants carefully monitor diverted more than 20,000 between 2012 and 2013. This preferred waste management and expenses. waste and recycling data from achievement was a result of an providers, and enhanced tons of waste from landfill our vendors. Because we extensive water upgrade effort infrastructure. Collectively, all demand transparency, we are at this building, including the these elements have enabled through our recycling able to address performance replacement of 85 vintage us to establish market issues and establish a high level and reuse programs toilets with efficient modern leadership in waste reduction. of confidence that our recycling water closets. The building is managed effectively. reduced its water consumption by more than 17% year-over- year, for a total annual reduction in cost of $17,000.

14 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 15 THE WORKPLACE

THE WORKPLACE

Vornado’s tenants require the comfort, safety, and healthy environments that allow them to work efficiently and function at their best.

VORNADO’S LEED CI GOLD CERTIFIED HEADQUARTERS OFFICES IN WASHINGTON, DC USGBC’S LEED CI PLATINUM CERTIFIED HEADQUARTERS OFFICES AT VORNADO’S 2101 L STREET NW PROPERTY

Sustainability is about people. • Making sustainability Our commitment to green At Vornado, we’re focused on training a requirement for buildings ensures that our Vornado’s sustainability team building sustainability programs all our building operators tenants work in welcoming that help engage, inform, and and managers and healthy environments. has worked with more than benefit the people who drive That’s one of the primary • Offering sustainability 50 tenants to LEED certify our company — our investors, reasons we continue to education outreach and tenants, employees, and attract long-term tenants. opportunities for all our commercial interiors (CI) in local communities. Through our healthy buildings, employees and tenants education programs, and over three million SF of our To ensure that our workplaces • Working to inform our outreach, we continue to are welcoming environments, investors, tenants, and create the market’s most portfolio’s tenant space. we focus considerable employees about Vornado’s desirable places to work attention and effort on: sustainability programs and live. • Using green cleaning services and strategies at all properties Vornado owns and manages

16 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 17 TENANT SUSTAINABILITY MEETINGS GREEN CLEANING AND air quality (IAQ). Vornado’s INDOOR ENVIRONMENTAL subsidiary, Building Maintenance QUALITY Services (BMS), cleans and maintains our buildings to We strive to be at the forefront LEED green cleaning standards of creating the best possible using products and equipment indoor environment for our that meet recognized standards tenants. Our green cleaning such as Green Seal and program creates healthy EcoLogo. BMS also uses waste workplaces to ensure that liners made by the Revolution we can attract and retain Bag Company, a closed-loop the businessworld’s most recycling company that makes prestigious tenants. Vornado’s high-quality, EPA compliant green cleaning standards liners. Our liners use 65% post- combine best practices for consumer recycled plastics. resource management with use We also are proud that BMS of low environmental impact recently became a Green Seal products with a particular focus certified company. on occupant health and indoor BMS EMPLOYEE USING ENERGY-EFFICIENT SCRUBBER AT 1290 6TH AVENUE, NEW YORK CITY

More than

16,000 Purchased 62,000 cases of trees saved paper products — including VORNADO’S INTERACTIVE ENERGY STAR PUBLIC ANNOUNCEMENT ON LED DISPLAY 2 million pounds of SUSTAINABILITY WEBSITE IN PENN PLAZA, NEW YORK CITY recycled paper products, which represents more than 16,000 trees saved

OUTREACH, EDUCATION, generate building sustainability including provisions such as AND GREEN LEASING fact sheets, and host tenant energy submetering or energy More than outreach events. And to efficiency cost sharing. Our Our communications platform Revolution Bag liners use encourage our tenants, extensive outreach program allows us to engage and 65% post-consumer recycled contractors, and consultants includes hosting regular More than 350 165,000 educate a wide audience — plastic — by purchasing these to adhere to best practices, tenant education seminars, LBS of plastic recycled including investors and bags, BMS helped recycle we integrate sustainable performing occupant surveys, green leases More than brokers — about our numerous more than 165,000 lbs standards into our processes and promoting programs for sustainability achievements. of plastic and agreements — including recycling re-education. By We describe our sustainability green lease provisions. In 2013, sharing our enthusiasm and 50 work on our website, include BMS Green Clean Vornado, in partnership with our commitment, we are able to sustainability in our leasing Supervisors trained tenants, signed more than 350 extend our influence beyond our More than 50 BMS Green materials, recommend green green leases that align landlord buildings to encourage positive Clean Supervisors trained best practices to tenants and tenant financial incentives behavior in our communities. in GS-42 green cleaning through quarterly newsletters, to help reduce energy use by standards

18 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 19 THE TOP

What makes Vornado unique is our “view from the Vornado is a vertically integrated a wide range of projects and approach to sustainability, we top” — the commitment from the highest levels of real estate enterprise, with a standards that align with the make our own decisions about A VIEW FROM THE TOP significant presence in major needs of each regional market. what sustainability means to our organization to sustainability and efficiency. US markets. us — and that gives us the Regional best practices and Because of this commitment, we focus each day scope to think big and aim high. and each year on the continuous improvement in our With the ongoing support of experiences are leveraged senior level management, across the company so that portfolio. And because we are vertically integrated, Vornado’s sustainability team is we stay one step ahead of the we can control and implement the policies, able to execute and implement competition. Through our market processes, and programs that make our sustainability programs value-enhancing for our investors, tenants, and internal team members.

WHERE WE STAND We are committed each year to: COMMITMENT PLANNING INVESTMENT SKILLED VERIFICATION Investing in sustainability initiatives that We set goals and We develop projects Through our CAPEX PEOPLE We measure and commit to improving and strategies to and OPEX funds, We employ and train verify performance so enable us to attract and retain prestigious performance year- achieve our goals we make sustainable our teams to deploy successful projects and valuable tenants. over-year each year investments in these projects can be replicated our buildings and strategies Reviewing each property every year to identify opportunities to reduce operating expenses and increase resiliency.

20 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 21 Vornado uses internationally individually in order to select ENERGY STAR to using ENERGY STAR’s GRESB In 2013, Vornado ranked as recognized certification and the best strategies and We are an ENERGY STAR portfolio manager makes us Vornado is a participant in a GRESB Green Star, placing PERFORMANCE & reporting standards like LEED, certification program for Corporate Partner and a more resilient to regulatory GRESB, a benchmarking and in the 10 ten of 115 North ENERGY STAR, and GRESB to optimizing its performance. recipient of the ENERGY STAR changes and guarantees our reporting framework focused American major real estate VERIFICATION track, recognize, and report our Partner of the Year for 2013. compliance with recently on the real estate industry. holders and second among LEED sustainability achievements. More than 25 million square introduced energy benchmarking GRESB ranks companies on North American REITs. With more than 31 million feet of our office buildings have mandates in our primary both quantitative and qualitative We use the annual survey While we seek sustainability square feet (SF) of LEED been awarded the prestigious markets, including New York, metrics, from energy and results to improve our portfolio FEATURED PROPERTIES: opportunities that leverage space across the US, we are ENERGY STAR designation Washington, DC, and water consumption to policies performance in order to SAN FRANCISCO the scale and diversity of our the largest owners of LEED for the past five years. Our San Francisco. and management. enhance and protect 555 California St. portfolio, the depth and breadth certified property in New York 315 Montgomery St. long-standing commitment shareholder value. of our experience, and our City, Washington, DC metro CHICAGO operational expertise from area, and the US as a whole. We Merchandise Mart across our company, experience aim to meet the high standards

WASHINGTON, DC has taught us that one size for overall building performance, METRO AREA does not fit all when it comes as established by the US Green 2345 Crystal Drive to buildings. Our policy is to Building Council’s LEED 2011 Crystal Drive examine each property certification program. washington, dc Skyline Tower 2101 L St. NW metro area 1299 Pennsylvania Ave. NW california NEW YORK 330 Madison Ave. new york city 770 1290 Ave. of the Americas One Penn Plaza 12.5 Two Penn Plaza 1.97 MILLION SF MILLION SF chicago of owned, managed, or of LEED certified properties, developed LEED certified 12.5 3 buildings properties, 40 buildings MILLION SF of LEED certified properties, 4.2 12 buildings MILLION SF

LEED Gold certified, largest LEED certified building in the US

22 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 23

OUR COMMITMENT 1 OUR PEOPLE Vornado recognizes that our people are critical to the Vornado’s corporate policy outlines our NEW DEVELOPMENT success of our sustainability efforts and programs. commitment to sustainable practices We are committed to building in these key areas. to LEED Gold standards or better For our full sustainability policy, please see for all new developments or redevelopments. “Our dedicated energy and includes two divisional directors our website at www.vno.com/sustainability Our sustainability program is that help them understand sustainability team, our expert headed by Sukanya Paciorek, of sustainability, one energy best practices for resource team of engineers, property Senior Vice President of and sustainability analyst, and conservation, environmentally 2 managers, and designers Corporate Sustainability, who five other Vornado employees preferable procurement, all are committed to lowering reports directly to Vornado’s who focus on energy and alternative transportation, EXISTING operating costs and improving Management Committee sustainability matters on a waste reduction, and IAQ. our buildings year-over-year.” regarding goals, strategy, and part-time basis. BUILDINGS In 2013, all Vornado building “We are committed to sustainability partnerships. Ms. Paciorek Sukanya Paciorek EDUCATION managers and operators because it is not only the right Our goal is to operate our heads our Corporate Senior Vice President, AND TRAINING completed at least one full thing to do as a good corporate buildings in a sustainable Sustainability Committee, Corporate Sustainability Vornado encourages all of day of sustainability training. citizen but because of the value 3 manner and certify our which meets once a month to Vornado Realty Trust its employees to engage in it brings to our investors, our buildings under the LEED discuss programs and share education and training programs tenants, and our employees.” CULTURE/OFFICE for Existing Buildings best practices. The team Certification Program. Joseph Macnow MANAGEMENT Executive Vice President, Finance We encourage sustainable thinking and Chief Administrative Officer approaches within our business and support Vornado Realty Trust employee education and training in this area.

4 5

STRATEGIC APPLICATION OF RELATIONSHIPS SUSTAINABLE PRACTICES We broaden the impact of our sustainable We are committed to reviewing, testing, and practices by integrating them in our partnerships implementing strategic new technologies and relationships with tenants, contractors, and innovative products that bring value to and consultants. our stakeholders.

DANIEL EGAN, NY DIRECTOR OF VORNADO WAS RECOGNIZED AS THE FIRST ENTITY TO COMPLETE IN 2013, VORNADO WAS NAMED ENERGY & SUSTAINABILITY, LEED VOLUME PROGRAM FOR EXISTING BUILDINGS CERTIFICATION. ENERGY STAR PARTNER OF AND GASTON SILVA, COO NY, THE GROUP WAS LED BY MITCHELL SCHEAR (SECOND FROM RIGHT), THE YEAR. DURING A COGEN TOUR AT PRESIDENT OF VORNADO’S WASHINGTON DIVISION. ONE PENN PLAZA.

24 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 25 OUR RESULTS* You’ve read about our commitment, our strategies, our programs, and our people. Here are our results. 2013 WASTE TOTAL: 31,000 TONS ENERGY CONSUMPTION (PORTFOLIO-WIDE) TECHNOLOGY

RECYCLED: 180,000 OVER Installed over 20,000 TONS MWh 160,000 Other Fuels $ 920,000 MWh kWh OF SOLAR ENERGY 5.35 150 125,000 produced at Bergen Town Center in 2013 — enough to power MILLION NEW MOTORS MWh 158,000 Natural Gas 100 American homes for a year MWh and variable frequency drives dedicated Energy Efficiency 10% CAPEX Fund Investment in 2013 63% in 2013 27% 885,000 MWh 830,000 Electricity MWh

RESILIENCY LANDFILL: INCINERATED: 8,000 TONS 3,000 TONS 42,000 25 40 MWh ENERGY REDUCTION MILLION SF MW OF DEMAND RESPONSE of ENERGY STAR in 2013 — a 4% reduction, equivalent to the energy consumed WATER CONSUMPTION 2013: certified properties in 2013 — equal to the by one high rise office tower in one year power generated by kgal 20 wind turbines 1,680,000 HEALTH

% GHG EMISSIONS 2013: % % 4 TONS 100 100 GHG REDUCTION of our owned and managed of our properties have SCOPE spaces use certified green preventative air and 1&2 CO e in 2013 — equivalent to the carbon absorbed 2 cleaning practices and products water testing 400,000 by 20,000 acres of trees 2012 TOTAL: 2013 TOTAL: 1,190,000 MWh 1,148,000 MWh *2013 performance data were third-party verified.

26 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 27 GLOSSARY OF TERMS OUR PARTNERSHIPS NATIONAL CO-GENERATION OR GRI™ PORTFOLIO MANAGER® • ENERGY STAR Partner COMBINED HEAT AND POWER Global Reporting Initiative — EPA’s online tool and (CHP) SYSTEM a widely used international measurement system for tracking • USGBC Corporate Member A power plant that generates standard for organizational portfolio-wide energy and water both electricity and heat sustainability reporting consumption and greenhouse • NAREIT Leader in the Light gas emissions Working group CO2E LEADER IN THE LIGHT Carbon dioxide equivalent NAREIT’s annual award REBNY® • The Real Estate Roundtable Sustainability EH&S honoring member companies Real Estate Board of New York — Policy Action Committee (Member) that demonstrate leadership a trade association that promotes Environmental health • GSA Green Building Advisory Committee and safety in sustainability and statewide real estate policies energy efficiency on behalf of its members • ICSC Property Efficiency Scorecard EIP™ ® Energy Information Portal — LEED REIT Steering Committee Leadership in Energy and Real Estate Investment Trust — Vornado’s web-based smart Environmental Design — a real estate company that owns • National Science Foundation/CUNY/ metering platform that the most commonly used and operates income-producing Sustainably Integrated Buildings and Sites provides real-time monitoring whole-building sustainability, properties and is publicly traded Center (Industrial Advisory Board) of base building and tenants’ standard, rating, and certification on major exchanges energy consumption • Department of Energy/National Institute of program and set of standards RETROFIT CHICAGO Building Sciences Commercial Workforce ENERGY EFFICIENCY in the US administered by the A city of Chicago initiative CAPEX FUND USGBC. In increasing order of Credentialing Council (Board of Direction) to promote energy efficiency Vornado’s designated achievement, building projects through education and capital expenditure fund may be rated as LEED Certified, city-wide programs for efficiency upgrade and Silver, Gold, or Platinum infrastructure projects TENANT SERVICE CENTER (TSC) LEED-EB: O&M® Vornado’s TSC is our 24/7 ENERGY STAR LEED for Existing Buildings: remote monitoring, energy REGIONAL US EPA program that Operations & Maintenance — management and building control promotes and facilitates a LEED standard for existing • REBNY Sustainability Committee resource efficiency among center in Washington, DC buildings, focusing on (Committee Co-chair) consumers and industry operational performance URBAN GREEN COUNCIL EPA improvements The New York chapter of the • Urban Green Council (Board) USGBC, advancing sustainable US Environmental LEED-NC® • New York City Building Resiliency Task building in the New York Protection Agency LEED for New Construction — urban area Force (Commercial Buildings Co-chair) GHG a LEED standard for new ® • Green Light New York (Board) Greenhouse gas construction projects, focusing USGBC on design and construction US Green Building Council — ® • Mayor’s Office of Long-Term Planning GRESB the leading national industry NAREIT® and Sustainability (New York City) Global Real Estate organization for sustainable National Association of Real Sustainability Benchmark – building. Operator of the Advisory Committee an international sustainability Estate Investment Trusts — LEED programs • Arlington County Community Energy performance measure of the premier national trade real estate portfolios association for REITs and Sustainability Task Force • Retrofit Chicago Creative Direction and Design: Odgis + Company | Photography: Eric Laignel

28 | SUSTAINABILITY FROM THE GROUND UP VORNADO REALTY TRUST | 29 vno.com/sustainability 30 | SUSTAINABILITY FROM THE GROUND UP