Environment

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We promote sustainable and environmentally friendly practices in order to reduce energy use, decrease waste, increase recycling and lower water consumption in our daily operations.

Climate-Related Financial Disclosures

Annaly is committed to evaluating climate change risks and opportunities for our business and operations, taking into consideration the recommendations of the TCFD. For more information on the impact of climate change on our portfolio, see our Corporate Responsibility report.

Navigate to the 2023 Corporate Responsibility Report

Our Corporate Headquarters

Although our employee base contributes to a relatively small environmental footprint, we are nevertheless committed to promoting sustainable practices and reducing energy usage in our corporate operations.

Energy Audit

In 2018, we completed an energy audit, which found that our corporate office already incorporates energy reduction best practices. Following the audit, we implemented a number of additional enhancements, including replacing many of the disposable office kitchen items with reusable alternatives, applying a sleep-mode setting to television screens and enhancing the motion-sense light systems in individual offices and conference rooms.

Greenhouse Gas Emissions

Annaly is committed to developing a way to measure, track and report Scope 2 greenhouse gas emissions for our from our operations. Annaly does not have any meaningful Scope 1 GHG emissions as we do not generate energy on site or operate a transportation fleet and there were no instances of HVAC refrigerant leaks.

Our Employees

As part of our responsibility to operate a sustainable business, we encourage our employees to adopt environmentally-friendly habits. This year, we increased the number and visibility of recycling cans throughout our corporate headquarters to increase employee participation. Further, we continue to encourage all employees to participate in our commuter benefits program, in which a pre-tax benefit account is used to pay for public transit—including train, subway, light rail, bus and ferry - as part of our employees’ daily commute to work.⁽¹⁾

Our Commitment

We are committed to promoting sustainable practices, including encouraging employees to adopt environmentally-friendly practices and minimizing the environmental footprint of our operations

Sustainability Oversight

The Sustainability Leadership Team, which includes representatives from our Facilities, Legal and Corporate Responsibility and Government Relations teams is responsible for our environmental sustainability policy and its implementation. The Corporate Responsibility Committee of the Board of Directors is periodically updated on our environmental commitments and sustainability efforts.

Supplier Policy

We monitor the environmental and social programs, standards and performance metrics of our largest office product suppliers, and encourage them to comply with the environmental and social laws and regulations of the jurisdictions in which they operate. Our Vendor Management Team is responsible for the implementation of our Supplier policy and its oversight.

Components of Green Building in Annaly’s Corporate Office

Our corporate headquarters incorporates components of green building specified by the U.S. Environmental Protection Agency (“EPA”).

Energy Efficiency

Water Efficiency

Waste Reduction

Toxics Reduction

Indoor Air Quality Maintenance

Environmentally Preferable Building Materials and Specifications

Base Building of Our Corporate Headquarters

Annaly’s corporate headquarters is located in Midtown Manhattan with easy access to public transportation. The base building does not use any natural gas, diesel or fuel oil, and its tenants adhere to the Waste and Recycling Compliance set forth by New York City, including mandatory recycling of paper, cardboard and plastic, metal and glass.

LEED Gold Certification

In 2015, our headquarters building was awarded LEED Gold Certification by the U.S. Green Building Council, based on employee commuting habits, water efficiency, energy use, indoor and outdoor air quality and sustainability policies. Prior to that, the building was awarded LEED Silver Certified in 2009. Our Dallas office building has also been awarded the LEED Gold Certification.

ENERGY STAR®

Every year since 2014, our headquarters building has been awarded the Energy Star designation. This recognition from the U.S. EPA and U.S. Department of Energy indicates that the building is among the top 25% of facilities in the country for energy performance. Our Dallas office building has also been awarded the Energy Star designation.

WELL Health Safety Rating

Our New York City office building and our Dallas office building achieved a WELL Health Safety Rating for their facility operations and management in 2021 and 2023, respectively. Additionally, the Dallas office building has been UL Healthy Building verified since 2022.

New York City Carbon Challenge

Our headquarters building is participating in the New York City Carbon Challenge in an effort to reduce the base building's greenhouse gas emissions at least 30% by 2029 and support the New York City goal of reducing greenhouse gas emissions 80% by 2050.

Recent Improvements

During a recent construction project to improve the efficiency of our corporate office space, we made a number of improvements to enhance the sustainability of the space. In our kitchen area, we reduced the number of refrigerators and dishwashers by two units each, lowering our energy and water consumption. We also decreased our plastic consumption and waste recently by switching to a coffee machine that does not use plastic pods. These efforts illustrate acceptance of and commitment to sustainability considerations across the firm.

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Endnotes