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RXR REALTY2017 SUSTAINABILITY REPORT

2 RXR REALTY | 2017 SUSTAINABILITY REPORT

LEADING THE WAY


THE POWER OF LOCALAt 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.

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

“RXR respects the heritage and historical responsibility of its landmark properties while creating 21st-century workplaces for the most discerning businesses.”


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 CertificationsRXR’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.

BOMA Operating Building of the Year

32 Old Slip BOMA Regional Earth Award

Starrett LehighBOMA Historical Building of the Year

620 Avenue of the Americas

More than 20% of the RXR portfol io is

now LEED certified and

another 600,000 square feet

are expected to be certified

in the coming years.

2016 HIGHLIGHTS

ENERGY STAR LABELS4


430 hours of sustainability- specific training

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:

40% Female450 dedicated team members throughout

the New York metropolitan region

11% of employees in a collective bargaining agreement

1. As of June 2017

ABOUT RXR REALTY


Our CommitmentsEnvironment: 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 PeopleRXR 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 BenefitsRXR 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.

The Power of LocalRXR 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



OUR APPROACH TO DEVELOPMENTRXR 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.


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

Glen Cove – Garvies Point


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

facil it ies, and historical preservation.

The plan was unanimously approved by New Rochelle’s City Council at the end of 2015. 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

New Rochelle


OUR COMMITMENT TO THE COMMUNITYRXR 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.

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 2016.

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.

104 coats collected

64 blood drive participants

> $500,000 donated


ENGAGING THE 21ST-CENTURY TENANTAt 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

More than 40 tenants participated in green education events led by RXR.

Customized art, including sculpture, photography, and paintings is located throughout many of the RXR properties.


ENVIRONMENTAL SUSTAINABILITYAs 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 install ing WaterSense-labeled or low-flow fixtures whenever possible.


2016 Portfolio Environmental Highlights340 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.


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 2016.

VALUES IN KWH 2015 2016 % CHANGE

RXR Purchased Electricity 101,701,160 100,623,150 -1.06

Tenant Purchased Electricity 50,551,700 56,737,524 12.24

TOTAL PURCHASED ELECTRICITY 152,252,859 157,360,674 3.35

Gas 22,398,908 21,109,225 -5.76

Oil 8,930,487 8,103,819 -9.26

Steam 33,257,235 29,538,594 -11.18

TOTAL HEATING 64,586,629 58,751,637 -9.03

TOTAL ENERGY 216,839,488 216,112,310 -0.34

The reduction of 730,000 KWH OF ENERGY from 2015 to 2016 could power 59 homes for a year.



Greenhouse Gas EmissionsGreenhouse 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 2016.

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 CO2e 2015 2016 % CHANGE

SCOPE 1 (Natural gas and fuel oil) 9,355 6,792 -27.40%

SCOPE 2 (Base building electricity and district steam) 45,017 43,094 -4.27%

SCOPE 3 (Tenant energy usage – direct and sub-metered) 18,575 20,405 9.86%

TOTAL 72,946 70,291 -3.64%

RXR’s CO2e reductions in 2016 is the

EQUIVALENT OF REMOVING 578 VEHICLES OFF THE ROAD for a year.



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.

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.

Approximately 4,700 TONS OF WASTE was diverted from landfills in 2016.

VALUES IN KGAL 2015 2016 % Change

RXR REALTY PROPERTIES 174,109 186,031 6.85%

AVERAGE DIVERSION RATE 2016

RXR REALTY PROPERTIES 63%


STAKEHOLDER ENGAGEMENTStakeholders 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 AssessmentRXR 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.


Impo

rtan

ce to

Sta

keho

lder

s

HIGHMEDIUM LOW

LOW

M

EDIU

M

HIG

H

13

1115

9

6 5

7

2

3

4

1

14

16

Materiality Matrix

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.

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

Potential Impact

1710

12

8


ABOUT THIS REPORTTo ensure a complete and accurate performance inventory for the report,

RXR Realty hired CodeGreen Solutions, a sustainabil ity and energy

eff iciency consultancy, to manage the col lection 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 2016. 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.


Disclosure Number

Reference/ Location

GRI 100: UNIVERSAL STANDARDSGRI 102: General Disclosures 2016

102-1 RXR Realty

102-2 About RXR Realty

102-3 New York, New York






102-12 Our Commitment to the Community/ Environmental Sustainability

102-13 Our Commitment to the Community

102-14 The Power of Local



102-21 About this Report



102-29 Stakeholder Engagement













102-55 GRI Context Index

GRI Content IndexThis 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 200: ECONOMIC STANDARDS GRI 202: Market Presence 2016


GRI 203: Indirect Economic Impacts 2016



GRI 300: ENVIRONMENTAL STANDARDS GRI 302: Energy 2016

302-1 Environmental Sustainability


GRI 303: Water 2016


GRI 305: Emissions 2016





GRI 306: Effluents and Waste 2016


GRI 400: SOCIAL STANDARDS GRI 401: Employment 2016


GRI 404: Training and Education 2016


GRI 405: Diversity and Equal Opportunity 2016


GRI 413: Local Communities 2016

413-1 Our Approach to Development/ Our Commitment to the Community

GRI G4 SECTOR SUPPLEMENT: CONSTRUCTION AND REAL ESTATE G4 CRE8 2016 Highlights

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