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Sustainability Report 2020 Introduction
Contents
Introduction Social
About REA Group 3 Diversity and inclusion 30
2020 highlights 4 Workplace health, safety and wellbeing 33
CEO message 5 Talent development and management 34
Materiality assessment 6 Employee Engagement 38
Bushfires in Australia 8 Customer satisfaction 42
COVID-19 9 Community investment 45
Governance Environment
Ethics and integrity 11 Climate change 52
Risk management 15 Sustainability working group 53
Cyber security 19 Sustainable buildings 53
Innovation 22 Global Reporting Initiative
Responsible marketing 25 FY20 content index 54 Sustainable procurement 26 Limited Assurance Human rights and labour standards 27 Independent Limited Assurance Report 62
2 | REA Group Introduction
About REA Group
Headquartered in REA Group operates Australia’s leading franchise group, and Hometrack, a leading residential and commercial property provider of property data services. Richmond VIC, Australia, websites realestate.com.au and REA Group also holds a significant REA Group Ltd ACN realcommercial.com.au. It also operates shareholding in Move Inc., which primarily the leading website dedicated to share operates Realtor.com® in the United 068 349 066 (ASX:REA) property, Flatmates.com.au, and Spacely, States, 99.co, which operates property a short-term commercial and coworking portals 99.co, iProperty.com.sg and is a multinational digital property website. In Asia, REA Group Rumah123.com located in Singapore and advertising business owns a market-leading property portal Indonesia. In addition, the Group holds a in Malaysia (iproperty.com.my) and significant interest in Elara Technologies specialising in property prominent property portals in Hong Kong Pte Ltd, which operates Housing.com, (squarefoot.com.hk) and Thailand Proptiger.com and makaan.com in India. (thinkingofliving.com), as well as the www.rea-group.com Chinese site, myfun.com. REA Group owns Smartline, an Australian mortgage broking
3 | REA Group Introduction
2020 highlights
Customer satisfaction Environment
COVID-19 resulted in our teams quickly REA Group’s total quantified FY20 mobilising to deliver new product carbon footprint totalled 5,607 tonnes of innovations to help our customers and carbon dioxide equivalent. We have set the property industry adapt to the new science-based aligned targets to reduce rules. This included digital inspections, our footprint by 2030. In FY21, we will online auctions, inspection bookings and introduce a carbon emissions reduction COVID-19 property market insights to keep action plan and offset our emissions to the industry informed. become certified carbon neutral.
Data protection, privacy Innovation Ethics and integrity and cyber security In May 2020, we held our first entirely We published our first Voluntary Tax We increased investment in our Cyber virtual REAio (hackathon) due to COVID-19 Transparency report in FY20, providing Security team with new operational, and saw great national engagement, with a a summary of taxes paid, collected and engineering and advisory capability. product shipped that following weekend! remitted.
Diversity and inclusion Workplace health,
Of our people across Australia and Asia, safety and wellbeing 50.1% identify as female and 49.9% identify We provided our people with the option as male. Our Executive Leadership Team to take part in a number of health and also has 50:50 gender parity. wellbeing activities, including Month of Mindfulness, Mental Health Awareness Month, RU OK Day and a Resilience series.
Community investment Employee engagement
In FY20, the National Rapid Rehousing In FY20, our engagement scores in H1 Fund, established by Launch Housing and were 78% for Australia (participation 89%) REA Group in 2015, provided financial and 79% for Asia (participation 94%). In support to 686 women and children H2, we conducted a weekly ‘belief’ pulse at risk of homelessness, to establish or survey over 14 weeks with an average maintain safe, secure housing free of positive sentiment score of 92%. violence, across Australia.
4 | REA Group Introduction
CEO message
Welcome to our second Our people provide us with a competitive Housing, Orange Sky Australia and edge, and even when faced with the The Big Issue during FY20. Sustainability Report. challenges of FY20, we have made terrific On the environmental front, in FY20 we progress across the areas of Environment, calculated REA Group’s carbon footprint. Social and Governance (ESG). New When I reflect on the With this information, we have set ways of operating, combined with new science-based aligned targets to reduce last 12 months, the products, features and support measures our footprint and play our part in limiting were all successfully introduced to support overwhelming feeling global warming. We will also be offsetting our people, customers, consumers and our FY20 footprint to become certified I have is pride for the the communities in which we operate. carbon neutral. You can read more about way REA Group’s people Looking through the ESG lens, the key our carbon reduction commitments within to our success in FY20 was the ability the Environment section of this report. have successfully to effectively implement our continuity We’ve made improvements to our plans developed as part of our Business navigated a year Sustainability Report this year, which has Continuity and Resilience Framework, been prepared in accordance with the unlike any other, while to quickly move our people to work Global Reporting Initiative (GRI) Standards: remotely. We did so with the knowledge delivering ongoing Core option. In addition, we engaged that we could continue to run our critical independent professional services firm value to our customers, processes and serve our customers with KPMG to undertake Limited Assurance minimal interruption. consumers and over selected information within this shareholders A number of key highlights were delivered Report. KPMG’s assurance opinion is throughout the year, including the provided on page 62. expansion of our Cyber Security team, As we enter a new decade, we look progress towards our gender diversity forward to our increased focus on targets and the steps we’ve taken to ESG being a driving force behind minimise our environmental footprint. REA Group’s ongoing success. We Our focus on gender diversity is appreciate you taking the time to read unwavering, with 50.1% of our people our FY20 Sustainability Report and across Australia and Asia identifying welcome any feedback via our mailbox: as female, and 49.9% of our people [email protected] identifying as male. Our target to have 50:50 gender representation across REA Group’s Leadership Group (RLG) in Australia has been achieved.
We remain humbled by the work of our charity partners, who play a material role Owen Wilson in driving and advocating for scalable Chief Executive Officer solutions to end homelessness. We were proud to extend our financial and in-kind support of our charity partners Launch
5 | REA Group Introduction
Materiality assessment
In FY19, REA Group Materiality matrix undertook a materiality VERY HIGH Diversity & Ethics & Integrity assessment to establish Inclusion HIGH Data the most relevant areas Protection Human Innovation & Security Rights Community Partnerships of focus related to MODERATE Customer Satisfaction HS&W sustainability Employee Engagement Service Quality & Safety We reviewed the findings of the materiality Sustainable Procurement Responsible Talent assessment internally at the beginning of Marketing Development FY20 against the activity of our business over the last 12 months. From this, we Waste Water concluded that the top eight issues Public Policy Responsible remain the most relevant and in the right Use of Media order for our business to focus on.
Energy m ort n e to t e o er m ort n e The issues were determined as part Climate Change Adaptation of a review process undertaken by an GHG Emissions independent sustainability consultancy. LOW It included researching issues relevant to REA Group and benchmarking our sustainability performance against peers, competitors and leaders.
The issues were prioritised following internal and external issue surveys, interviews and workshops. The data rrent or otenti im t on ine ENVIRONMENT gathered was then analysed and SOCIAL consolidated to produce a prioritised GOVERNANCE list of material issues. The top eight issues identified for REA Group from the We plan to conduct our next materiality assessment in FY22 to ensure we are materiality assessment, and where you continuing to prioritise the most relevant areas of focus for REA Group in relation can find content on each, are featured to sustainability. in the following issues navigator.
6 | REA Group Introduction
Materiality assessment continued
Materiality assessment – top eight sustainability issues navigator
Ethics and integrity
Conducting all business activities in line with the highest ethical and Ethics and integrity, page 11 legal standards is central to the company’s purpose and values. Human rights and labour standards, page 27
Diversity and inclusion
Providing a fair and equitable workplace, free from discrimination. Diversity and inclusion, page 30
Data protection, privacy and cyber security
Safeguarding data and networks from corruption, loss and cyber Cyber security, page 19 attacks, and ensuring privacy of personal information. Privacy at REA Group, page 12
Health, safety and wellbeing
Preventing work-related injuries, illnesses and accidents in the Workplace health, safety and wellbeing, page 33 workplace, and promoting the wellbeing of our employees.
Product quality and safety
Setting and maintaining high standards of products and services, Cyber security, page 19 such as preventing cases of scams, fraudulent listings, mislabelling of properties and false advertising. Responsible marketing, page 25 Innovation, page 22
Employee engagement
Creating a culture and workplace where employees have a positive Employee engagement, page 38 attitude towards the organisation and its values.
Innovation
Investing in new ideas, solutions and innovations to create better Innovation, page 22 products and services.
Customer satisfaction
Meeting customers’ expectations through superior product and Customer satisfaction, page 42 service quality, as well as enhancing their user experience.
7 | REA Group Introduction
Bushfires in Australia
In 2019 and 2020, Our Flatmates.com.au platform, on 30 June 2020). This saw employee which connects people who need donations through our Matched Payroll bushfires spread accommodation with those who have Giving program matched dollar for across Australia with a spare room or vacant property, also dollar up to AUD $1,000 per employee, extended an offer to waive all fees for and up to a company cap of AUD $150k. devastating impacts those who opened their homes rent- Our employees embraced this opportunity, free for people seeking emergency with up to 27% of our people in Australia – including to our accommodation. More information is opting to donate this way, with donations available at: customers peaking in February 2020. In January 2020, we created a Bushfire REA Group’s Bushfire Crisis Support site Donations for charities responding to the Relief Support Package for impacted Through our Advantage Community Grant bushfires were also generated through customers to access when the time was program, we prioritised grant applications the Community Café between November right for them to do so. The package benefiting bushfire-impacted regions, 2019 and February 2020, as well as an included the following: to help them get back on their feet. In employee-driven painting and bake-sale. FY20, of the 96 agencies awarded a The bake-sale saw team members bring Re-upgrades, at no additional cost, grant throughout Australia, 54 agencies baked goods from home and another for properties that were within an nominated bushfire-affected causes. Read team member created water paintings of affected bushfire area, and where more about the Advantage program on Australian wildlife to sell, generating further the existing marketing campaign page 44. donations for the Australian Wildlife charity. needed to be extended. REA Group’s people were also eager to Together, REA Group and its people Refunds on paid advertising for help out and in February 2020, REA Group donated more than $200k to charities properties that were within an doubled the Matched Payroll Giving supporting communities and wildlife affected bushfire area, and which caps for employee and company for the impacted by the bushfires. needed to be taken off the market remainder of financial year (concluding due to fire damage.
For businesses that operated within affected bushfire areas, and which were experiencing significant impact to their operations, realestate.com.au or realcommercial.com.au $200k+ subscription fees (or other recurring Donated by REA Group product fees) were waived from 1 January to 31 March 2020. and employees to charities supporting bushfire- For businesses that operated within impacted communities affected bushfire areas, and which were experiencing negative impact to their operations, we provided extended payment plans for outstanding accounts.
8 | REA Group Introduction
COVID-19
The impacts of customers had access to the insights and learning required to run their businesses COVID-19 have been successfully. felt around the world Overall customer sentiment and feedback towards our efforts was extremely positive, During this time, REA Group focused on and we continue to deliver support in the health and safety of our employees, affected areas. their families and our local communities. Our customers and partners remain We’ve also shared information around front and centre in all our thinking as we financial assistance available to individuals continue to monitor and respond to the and businesses, as well as tips on working situation as it evolves. from home with kids.
In response to COVID-19, REA Group In addition, we provided a range of health delivered new product innovations to help and wellbeing initiatives, including access our customers and the property industry to uncapped personal leave to support adapt to the new rules including digital our people with their transition to working The focus of the Major Incident Response inspections, online auctions, inspection from home during the restricted periods. Team in January was on the continuity bookings and COVID-19 property market and safety of our lines of business based We have been able to manage the insights to keep the industry informed. in Asia. As the pandemic spread and business through the COVID-19 pandemic forced Australia into Stage 3 lockdown in Our focus was clear: via implementation of continuity March, we enacted the Crisis Management plans developed under our Business Team to forecast market impact and, To provide our customers with Continuity and Resilience Framework. 1 therefore, revenue impact to REA Group, ongoing flexible support measures Prior to the global pandemic, we had an take action to sure up liquidity and roll out understanding of our most important To launch new features and services a series of customer support packages 2 processes, and the plans required to for our customers. During the period to provide Australians with the ability continue the operation of those processes that remote working was extended, we to buy, sell and rent under multiple risk scenarios that included have focused on Workplace Health and a pandemic. To ensure property seekers were kept 3 Safety, specifically ergonomic and mental well informed with regular insights Testing these plans was an expectation health impacts, and we have continued into the property market under the Business Continuity and to adapt our customer support packages Resilience Framework, which enabled accordingly. We pivoted our entire sales teams to us to quickly move our people to work A more detailed overview of REA Group’s provide virtual customer support, deliver remotely, knowing that we could continue COVID-19 response can be read on flexible solutions ensure listings and to run our critical processes and serve page 16 of our FY20 Annual Report. campaigns were treated sensitively, and our customers with minimal interruption. provide relief measures for those going The framework has also provided the through financial hardship. guidelines by which we have run our Major Incident Response Team to manage our In addition, we shifted our education and COVID-19 response since January 2020. learning event series in both Australia and Asia to online, ensuring all of our
9 | REA Group Governance
Governance
Good governance is essential to protect and enhance the long-term performance and sustainability of our company. It also supports the interests of our shareholders, employees, customers, consumers and the broader community
10 | REA Group Governance
Ethics and integrity
Conducting all business Compliance risk When new people join REA Group, we share our digital Employee Handbook activities in line with the Doing business transparently and in a with them, which provides insight into way that promotes the highest levels of the following: highest ethical and legal business ethics and integrity is central to how we operate at REA Group. As part standards Values of the company’s approach to risk and REA Group’s most recent materiality assurance, we have a Compliance Risk assessment created a prioritised list of framework in place that spells out the Conducting ourselves professionally sustainability issues for REA Group and steps to be taken for ongoing assessment Ensuring everyone’s safety, ‘ethics and integrity’ was the number of our compliance risk for all of our wellbeing and inclusion one ‘issue’ identified. This section of our regulatory and legislative obligations. Sustainability Report outlines the programs, Our framework includes Anti-Bribery Using technology safely practices and policies REA Group has in and Corruption, Privacy, Competition and place to ensure ethics and integrity is at Consumer, Employment Act, Occupational Engaging with social media the forefront of everything we do. Health and Safety, Corporations Act, ASX listing requirements and Financial Services. Building a high-performance culture
Avoiding conflicts of interest
How to raise concerns
Our policies are reinforced with mandatory online training for all new people who join REA Group to create awareness and understanding, and foster a culture of respect, diversity and inclusion. Our Legal team also runs face-to-face refresher compliance training annually across the company. Additional compliance training has been rolled out in Asia to cover ‘Preventing Bribery and Corruption’, with ‘Workplace Safety and Violence’, ‘Competition, Antitrust and Fair Dealing’ and ‘Cybersecurity’ planned for roll out in FY21.
11 | REA Group Governance
Ethics and integrity continued
Privacy at REA Group only stored securely, but also purged in accordance with our retention policies. Conflicts of interest At REA Group, we do our best to personalise the service that every person A key focus of REA Group in FY21 will be receives, so we are providing them with to improve our privacy practices to provide the most relevant property suggestions, users with further transparency and control articles and guides. We are only able over their personal information. We have to provide such a personalised service a dedicated consumer privacy working as a result of our ability to track certain group aimed at ensuring our privacy personal information of our users. This practices are considered best practice may include information that the user has and to ensure that REA Group will be disclosed to us about their demographic well placed to comply with: REA Group maintains a ‘Managing profile, but may also include information a) the proposed changes to the Conflicts of Interest’ Policy, which we have deduced about the user based Australian privacy laws that were applies to all REA Group directors, on their behavior on our website. first recommended by the Australian employees, contractors, consultants and visitors working for REA We understand that the information we Competition and Consumer Group. Directors are required on collect from our users is personal. We Commission (ACCC) in its Digital an ongoing basis to disclose to the aspire to be as transparent as possible in Platforms Inquiry Report in 2019 Board relevant personal interests our privacy policy as to what information b) Thailand’s new Personal Data and conflicts of interest that may we collect, how we use it and how we Protection Act, which is scheduled have an impact on their actual or disclose it. to be fully implemented in 2021. perceived independence. These Privacy by design is at the forefront of are recorded and reported to each REA Group introduced its first Privacy the minds of our developers and product board meeting. Policy in 2001, when the Privacy Act 1988 managers. The importance of handling (Cth) was extended to cover the private The Audit, Risk and Compliance personal information appropriately is sector. REA Group’s Privacy Policy (ARC) Committee supports the reiterated by our Privacy Officers and has evolved over almost 20 years, in Board with oversight on related is part of our mandatory on-boarding line with our data collection and usage party transactions. Where training for all new employees, our one- practices, to continually provide up-to- transactions with related parties hour mandatory annual legal training date and transparent information to our take place, REA Group complies for all employees in Australia, and our customers and consumers. In FY20, REA with the relevant provisions of the mandatory online compliance training Group introduced a Cookie Policy to Corporations Act. Transactions for all employees in REA Group Asia. We provide greater transparency about how it with related parties are disclosed conduct privacy impact assessments on uses cookies and similar technologies for in REA Group’s Annual Report on all new products and systems that handle website analytics and targeted advertising. A page 112. personal information, and we take care similar Privacy Policy and Cookie Policy also to ensure all personal information is not apply to our businesses in REA Group Asia.
Whistleblower policy
Our Whistleblower Policy and keep things confidential and protect the process provides a way to confidentially whistleblower. There are internal and and anonymously report any suspected external channels for making a report, instances of wrongdoing. This may include including through an independent third- illegal, unethical or inappropriate conduct. party whistleblower service, which can It is accessible to current and former be accessed online or by telephone. employees, contractors, suppliers and Whistleblowers are protected from external parties. victimisation, adverse action or The policy provides details of what a intimidation. Our Board, via the ARC wrongdoing is, how to make a report Committee, receives regular updates and the steps REA Group will take to on ‘whistleblower’ matters.
12 | REA Group Governance
Ethics and integrity continued
Tax transparency
As part of REA Group’s commitment to pay the right amount of tax and comply with all tax laws, we support the Board of Taxation’s Voluntary Tax Transparency Code (TTC).
In 2020, REA Group published its first voluntary Tax Transparency Report, providing a summary of the $276.4 million in taxes paid, collected and remitted by REA Group for FY19. The report provides disclosures under the Voluntary TTC, and is in addition to tax information that is reported to the Australian Taxation Office (ATO), Australian State Revenue Offices and foreign revenue authorities on a regular basis.
Our Voluntary Tax Transparency report includes information in relation to REA Group’s approach to tax governance, tax risk management and international-related party dealings. REA Group and its subsidiaries comply Group of 100 (G100) with all applicable tax laws and regulations. REA Group’s Chief Financial Officer (CFO), Janelle Hopkins, was named the first female chairman of the G100 in February 2020. The G100 is the peak body for Our Tax Governance policy reinforces CFOs and works to ensure Australia’s commercial and regulatory environment our objectives: is one that advances the interests of Australian businesses, as well as one that • We pay the legally correct amount encourages private and public enterprises to grow and compete in today’s highly of tax and do not knowingly partake competitive environment. in tax avoidance/fraud. • We assess tax effective positions Financial services support their goals – whether that’s the that are supportable, founded in suburban dream, a weekend getaway, a prevailing commercial rationale and Home loans play an important part in property empire or just something to call that do not damage our corporate bringing property dreams to life and their own. Our content and tools help reputation. REA Group’s Financial Services team is everyday Australians to understand their • We engage with regulators, tax committed to making this part of the options in the comfort and privacy of authorities, external advisers, and property journey easier. Whether it’s their home or office. We understand that industry groups the transition from renting to buying, our consumers have unique needs and in an ethical, upgrading, investing or refinancing to we’re all about options and choices. When transparent and a better deal, consumers need advice they’re ready to take the next step, we professional they can trust. Smartline and our banking can connect them directly to our banking manner. partner NAB, work together to provide the partner, or to a mortgage broker. Helping right information and service. consumers get financially ready is great for our vendors and agents too. Getting our By bringing the financial lens to property audience ready to make their next move listings we believe consumers can build increases the quality of conversations at their understanding and confidence. With each step of the process. this they can make the decisions that
13 | REA Group Governance
Ethics and integrity continued
Smartline
In February 2020, Smartline and Our Smartline team won Franchise of realestate.com.au brokers all came the Year for the 10th time in 11 years together under the one brand – Smartline in FY20. A number of our franchisees personal mortgage advisers. Processes, were recognised as finalists at various platforms and websites were all integrated industry awards events – the Better and accreditation for all our brokers was Business Summit, MFAA State Awards, gained under the new brand. Australian Broker Awards and Women in Finance Awards. Smartline is a financial member of the Mortgage and Finance Association of Smartline updated its responsible lending Australia (MFAA) and the Combined policy and procedures to align with the Industry Forum. Smartline holds a Credit ASIC Regulatory Guide RG209 Credit Licence that is issued by the Australian licensing: Responsible lending conduct. Securities and Investments Commission The new policy went live on 1 July 2020. (ASIC) and, as such, also falls under the Australian Financial Complaints Authority (AFCA) external dispute resolution scheme.
Responsible lending Hometrack Hometrack renewed all of its relationships with its major customers that were due Smartline has always placed customers After being acquired by REA in June 2018, for renewal in FY20, and added many at the heart of all interactions. Smartline’s Hometrack is now fully integrated into REA new services to its valuations platforms policies and procedures set out the across all areas and functions, including throughout the year. standards by which the team (Smartline data services, systems engineering, and its network of brokers) aims to conduct security, people and culture. The full Hometrack is being rebranded to themselves when dealing with customers. integration of Hometrack ensures the team a permanent new brand under the Smartline is committed to upholding has access to the up-to-date technologies REA Group umbrella of brands in FY21. industry standards of practice and services and ways of working. outlined by regulators, the MFAA and the Given the sensitive customer data that Banking Code of Practice. This requires Hometrack is trusted with, data protection Smartline, and its network of brokers, is critical for the sustainability of the to meet a standard of ethical behaviour, business. Hometrack is currently certified ensure responsible lending obligations are ISO 27001 and aligned with the National met and place the customer’s best interest Institute of Standards and Technology at the centre of every decision. (NIST) Cybersecurity Framework. The Part of Smartline’s responsible lending Hometrack team has strict policies approach is to ensure brokers offer around storage and purging of personally customers exceptional advice by providing identifiable information (PII) data, quality mortgage broking services. This is encryption of data (both in transit and at- about providing personal and proactive rest) and policies outlining access control communication to customers, as well as to the Hometrack systems. Hometrack giving consideration to the individual needs has in place data loss prevention of each customer. When a Smartline broker (DLP) solutions for the protection recommends a product to a customer, of customer data. they are required to ensure the product Hometrack has long-term recurring meets the customer’s individual needs, is revenues with its major bank customers. suitable and in the customers best interest.
14 | REA Group Governance
Risk management
Taking the right risks, To achieve this, REA Group follows on an annual basis. At REA Group, risk accepted standards and guidelines for appetite is defined as ‘the amount and at the right time, for managing risk. We are committed to type of risk that an organisation is willing the right return, while ensuring that a consistent and integrated to take in order to meet its strategic and approach to risk management is business objectives’. While risk appetite doing the right thing established and embedded across all is about the pursuit of risk, risk tolerance levels of the business. This is driven by is about what an organisation can cope The team at REA Group is driven by our REA Group’s Risk Management Framework with. REA articulates risk tolerances as ‘risk purpose to ‘change the way the world that is regularly reviewed and updated limits’. Risk appetite and an associated experiences property’, which encompasses to reflect best practice, industry and set of risk limits provide the business everything from product innovation to community standards. with a framework to make risk-based international investments. Having a clearly decisions – in the context of the type defined purpose provides REA Group Board of risks to accept, or not to accept and with opportunities to drive further value. the areas of the business that require Our Board reviews and approves the We believe effective risk management is immediate attention because operational REA Group Risk Management strategy that about taking the right risks, at the right performance is not in line with Board outlines how we manage and govern risk, time, for the right return, while doing the expectations. right thing. and the Risk Appetite Statement REA Group Board Charter
15 | REA Group Governance
Risk management continued
Board Audit, Risk & Compliance Committee on ati Once risk appetite is set by the Board, the tiv L o ea m ycle Tone d Board Audit, Risk & Compliance Committee lifec from e d ee t r n oy he s (ARCC) monitor that the performance of a pl to h s m p ip e E the organisation remains within those limits iv t n by receiving and reviewing management e B e c h n a reporting that is tabled regularly throughout I v s io d r u the year. If limits are breached or look a r a w l like being breached, the ARCC require e m R o
d management to take decisive action to e
l address the control environment in a timely Overall fashion and will receive updates on how risk culture actions are progressing. R
i s k e
t c r The ARCC will also approve the annual a n n a s n audit plan, ensuring it focuses on key p r a e t r v e o n areas of risk to the business, while also n G e c y m giving consideration to external events and n R o r themes. Audit reports are tabled at ARCC is i k ity v il n meetings following completion of each fr R sib e a isk on m a sp d audit. Regular risk reporting to the ARCC ppe re n e tite s and a w Role n includes the status of agreed management o io rk at actions to close any control gaps that nis rga audits identify. O
The ARCC requires a report to be tabled and considered following management In FY20, we executed a comprehensive review of the REA Group Risk Management Executive Risk Committee review of our Risk Management Policy (annually) and supporting frameworks We have a formal Executive Risk Strategy and Appetite, Operational Risk (biennially) to ensure industry and regulatory Committee in place to discuss, monitor Framework and Business Resilience standards and best practice are achieved as and decide on risk matters regularly. Framework, which was endorsed by our well as operational effectiveness. This includes the monitoring of our Board of Directors for implementation. In addition to the regular reporting that risk appetite settings that have been At the commencement of the financial is tabled at ARCC meetings throughout approved by the Board. This Committee year we review and update the risk appetite the year, the annual audit planning, risk consists of member of our Executive and internal audit plan, using historical management strategy and appetite setting Leadership Team (ELT), our Chief trends, industry insights and input from process and policy and framework reviews, Information Security Officer and our management teams via the ERC and ARCC. the Chair of the ARCC hosts a Board Risk Chief Risk Officer. We monitor and review continuously Day once every year where members of The agenda covers our Operational risk throughout the year and also adjust at any the Board spend a full day considering taxonomy (as defined in our Operational point with Board approval, which allows strategic risk and emerging risk themes to Risk Framework), Strategic Risk, Regulatory us the flexibility to adapt based on the formulate the REA Group Strategic Risk Risk, Compliance Risk, Credit Risk, Internal emerging risk landscape. Profile for the year ahead. Audits and any significant incidents or Per our Risk Framework, we also perform Further, the ARCC is kept informed of events related to these areas that may have ongoing assurance of our key controls changes in the cyber threat landscape, occurred. High-risk matters, are escalated across all operational and compliance risk security strategy and mitigations directly to the ARCC. types. This includes in-depth testing of key by the Chief Information Security Officer We also maintain a network of ‘Risk financial controls in line with Sarbanes- and through our Executive Risk Committee Champions’ within the business to help Oxley requirements, due to NewsCorp (ERC). with identification and management of being a US-based majority shareholder. our risk profiles, implementation of our REA Group Board ARCC Charter frameworks and embedding a risk culture.
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Risk management continued
Key risk exposures
Following are the key risk exposures that relate to the most important sustainability ‘issues’ identified in REA Group’s most recent materiality assessment. REA Group has identified these risks to have the potential to significantly impact our business and the table details how we manage these potential exposures. These are monitored and discussed regularly as part of the ERC and ARCC.
Key risk Response Materiality assessment – issue
Regulatory landscape
Increased regulation that increases the cost • Compliance Risk Framework updated and 1 Ethics and integrity of doing business, or makes some parts of implemented our business unprofitable or unacceptable • Regulatory and Government Committee in terms of risk established to review and action regulatory changes
Data
Issues with managing integrity and consistency • Implemented a data governance program to 3 Data protection, privacy and of our data, or failure to build services that support both: cyber security enable the production of those data assets - Data defence – minimising risk and ensuring 5 Product quality and safety integrity of data - Data offence – enabling data-driven decision-making and product development • Our data governance program will evolve existing data defence programs, such as our Privacy and Data Retention policies, but the focus will be on building our data offence to unlock new value
Customer
Disruption to our customers’ business models • Provide strong support for Agency Principals 8 Customer satisfaction would have implications for REA Group and Business Owners • Continuing to increase engagement with individual agents through tools
Misappropriation, misuse and malicious activity
Losses due to acts of a type intended to • See the Cyber Security section on page 19 3 Data protection, privacy and defraud, misappropriate property or circumvent cyber security regulations, the law or company policy 5 Product quality and safety
Key risk exposures continued over page
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Risk management continued
Key risk Response Materiality assessment – issue
Products, advice and business practices
Losses arising from an unintentional or negligent • User experience testing of new product 1 Ethics and integrity failure to meet a professional obligation concepts and market research including duty of care owed to customers, 5 Product quality and safety • Customer feedback channels and consumer consumers and/or the market and suitability satisfaction via Customer Satisfaction council, 8 Customer satisfaction requirements, or from the nature or design of surveys and Industry Leadership groups a product • Legal review in place for any marketing claims • Lender education and qualifications for our Financial Services business • Smartline Compliance Assurance Program
Execution and delivery
Losses arising from failed transactions • Defined product strategies and roadmaps 1 Ethics and integrity processing, process management, non-delivery • Cross functional squads and tribes aligned to of new/enhanced functionality 5 Product quality and safety product delivery • Credit/debtor management processes that 7 Innovation include credit checks on new customers, 8 Customer satisfaction delinquency management controls, hardship programs to responsibly help our customers through difficult times
People, employment practices and workplace safety
Inability to deliver against strategy due to • Dedicated talent acquisition team 1 Ethics and integrity ineffective talent management • REA Uuniversity learning program for 2 Diversity and inclusion Losses arising from acts that are inconsistent employees with employment, health or safety laws or • Workplace Health and Safety system and 4 Health, safety and wellbeing agreements, from payment of personal injury committee in place 6 Employee engagement claims or from diversity/discrimination events • Robust performance and remuneration framework reviewed by the Board of Directors annually • Annual engagement survey, supplemented by regular pulse surveys
Business disruption and system failure
Inability to execute core business processes due • Architect our technology for resilience 3 Data protection, privacy and to systems disruption/outage • Define operating levels and monitor for events cyber security that may impact those levels • Incident Management processes, training and post-incident reviews performed for lessons learned • IT Disaster recovery plans and testing in place
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Cyber security
Building cyber resilience In 2020 the Australian Government A revised Security Guide for highlighted concerns over advanced Property Managers at REA Group hacking targeting organisations across Targeted awareness for high-risk the country. users, highlighting risks associated REA Group’s most recent materiality with business email compromise assessment identified ‘data protection, REA Group has responded through its and fake invoice scams privacy and cyber security’ as one investment in the Cyber Security team over of the top prioritised sustainability the last 12 months by adding operational, Product security health checks to issues for REA Group. This section of engineering and advisory capability. bake security requirements into our Sustainability Report provides an Additionally, we have brought security new products overview of how REA Group is continually into our broader technology platform Hands-on developer training in enhancing and evolving its cyber security and cloud engineering group, providing secure development practices strategy and activity to benefit all our REA Group with a powerful lever to embed using Open Web Application stakeholders. security into the fabric of our technology Security Project (OWASP) top 10 building blocks. mitigations Risks arising from cyber threats is front The introduction of multi-factor of mind for REA Group. Cyber security Having a Cyber Security team that works authentication to enhance security continues to gain attention in both with product managers and technology for employees, customers and customer-facing and non-customer-facing teams to proactively monitor REA Group consumers, as well as additional teams across our business. systems for vulnerabilities helps us to security enhancements for our better mitigate malicious activity and Public awareness has been driven by new customer and consumer facing apps threats to our business. This year, we’ve legislation and the increasing frequency worked to increase employee and Digital risk management of publicity surrounding scams and fraud, customer risk-awareness through a series particularly resulting from email phishing Board level awareness of of initiatives, including the following: and prominent social media activity. cyber security issues
Strategy
Our cyber security strategy continues to be focused around five simple priorities:
1 Visibility of assets and threats
2 Prioritising good technology hygiene
3 Broad adoption of key security controls
4 Promotion of a risk-aware culture
5 Data protection
Our security program extends to assessing our business partners and supplier security posture.
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Cyber security continued
Multi-factor authentication
Project Locke: protecting our customers
We’re passionate about protecting our customers’ online experience with us. That’s why we’ve implemented risk-based, multi- factor authentication to prevent unauthorised access to personal information.
Over the last 12 months we’ve been Industry Standards Industry collaboration working across our businesses in Australia and Asia to bring the REA Group uses the NIST Cybersecurity REA Group’s cyber ecosystem latest authentication technology Framework, an internationally recognised extends broadly across industries, and to life – a capability we call Locke. approach to the implementation of collaboration with peers is a vital source Locke isn’t just about sending an controls to manage risks to our business, of threat intelligence, helping to inform SMS code, it is using a range of risk and we measure our maturity against our security strategy. This year, we factors to detect unusual behaviour this framework annually. The framework collaborated with a number of Australian in our online apps. Additionally, enables us to continually assess where to organisations to publish a guide to inform we’re able to use identities to create focus investment. businesses about real-world experiences more personalised experiences and influencing security outcomes. REA Group leverages external expertise issue challenges based on high-risk where appropriate to augment its security REA Group submitted a response to the activities. services, including conducting security government’s cyber security strategy We’ve added social sign-on to our testing, compromise assessments and update and the Chief Information Security experience and we are now able to independent reviews. Officer contributed to a focus group, leverage the security provided by providing feedback about concerns and leading platforms such as Facebook, Product security recommendations for future national AppleID and Google, removing the initiatives. health checks need to remember extra passwords.
We believe in building security into our REA Group’s Chief Information Security products and tech upfront, not bolting Officer sits on several executive advisory it on afterwards. Our Product Security boards for cyber security including Deakin Health Check (PSHC) is aligned to the NIST University, the Australian Information Cybersecurity Framework and enables Security Association, and is a CyRise product managers to self-assess their mentor – an accelerator for Australian initiatives for security risks. The PSHC cyber security start-ups. He is a co-founder builds story cards that teams embed into of the Security, Influence and Trust Group, their delivery roadmaps. This helps deliver a collaboration of leading organisations their products while meeting our policy committed to influencing and building requirements without the security team a cyber-aware culture across Australia. becoming a bottleneck. Our continuous delivery approach allows for frequent changes and assessments to occur throughout the software lifecycle.
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Cyber security continued
Digital risk management Responsible Disclosure Policy Anti-bot mitigation No-one likes scammers and neither do We value the work and effort of the Time’s up for bad robots we. This year we’ve taken down more security research community as it helps than 100 fake mobile apps impersonating make everyone safer online. As part of REA Group has teamed up with one REA Group on the Android platform. To do our vulnerability management strategy, of the world’s fastest growing anti- this, we’re using a combination of certificate we have published a policy that outlines bot mitigation companies, Kasada, transparency monitoring and phishing how researchers can disclose security to protect its digital assets from takedown services from a leading digital vulnerabilities to REA Group in a safe and malicious automation, unauthorised risk-management partner. This helps protect responsible way. While we do not offer scraping and brute force attacks. our customers and brand from abuse. rewards for disclosures, we’re happy to recognise the contributions of researchers Our partnership is designed to We have also implemented the Domain- in our hall of fame as a special thank you. support our data strategy and based Message Authentication, Reporting, prevent unwanted and unsolicited and Conformance (DMARC) policy for our Empowering our people to activities on our websites, so they outbound marketing campaigns, providing make good security decisions are healthy and available for our confidence that messages originate from, customers and audience. and are digitally signed by REA Group. This Equipping our teams to recognise and We believe that exposing our data complies with the requirements set out in respond to cyber risk is an important part should be on our terms and that the Request for Comments (RFC) standard. of our strategic priorities at REA Group. bad robots impose arbitrary costs This year we have embedded interactive on our business and expose us to training modules into a new learning unacceptable risks. platform to deliver training and education to all REA Group employees.
Training in FY20 has been focused on the Outlook and threat horizon following target audiences: At REA Group we don’t wait for incidents to occur before acting. Our security Developers – secure coding strategy anticipates and expects us to practices – leveraging OWASP face cyber-attacks. We practise for, Top 10 and experience these events, and we High-risk employees – tailored incorporate threat assessments looking training for executive assistants and forward by adjusting our responses. finance highlighting risks related to business email compromise and Looking forward we are assessing the fake invoicing scams longer-term security implications of All employees – security policy remote ways of working, and, the changes eLearn – aligned to the NIST we may need to make as a result of more Cybersecurity Framework designed people adopting this practice. Safer Internet Day 2020 to be a simple guide to security We note the recent government advice This year on Safer Internet Day 2020 accountabilities on nation state operations, as well as the REA Group took the opportunity Customers – an updated security changes in cyber threat (e.g. ransomware) to have a conversation with its guide for property managers, and use this to inform security investment. customers in Australia about available for download from our protecting their businesses online. Agent Marketing Centre We will continue to focus on anti- automation, phishing, reducing the Customers were encouraged to Tech community – the Tech complexity of technology environments and visit REA Group’s agent marketing Community at REA Group runs the rigour of good hygiene as key priorities. centre for security tips and tricks to monthly security-orientated check back regularly for updates. showcases and presentations Our strategy is designed on continual We added security messages to our for employees improvement, mitigating material risks and customer Self Service Portal and responding when incidents occur, while a statement message provided a recognising there are no silver bullets prompt for action. to security.
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Innovation
Investing in new ideas, Highlights and opportunities Rollout of our personalisation stack solutions and innovations Agent Match Creating a personalised experience that adapts to the needs of Australian to create better products REA Group continued to help prospective property seekers requires the best and services sellers evaluate agencies and agents within available technology. By combining what the market. This year we experimented we know about our consumers, we are ‘Innovation’ was identified as one of the with our ‘Agent Match’ service, enabling now able to develop an individual profile top sustainability issues from REA Group’s sellers to choose their preferred agents of every realestate.com.au user that is most recent materiality assessment. In and ensuring agents received immediate updated in real-time with our event-based this section, we provide an overview of notification of a prospective seller. We architecture. These profiles allow us to the role innovation has played in several made some changes to the way the reach our consumers via omni-channel of the key sustainability issues identified in Agent Match product worked and we communications in the channel that is most the materiality assessment, including ‘data received feedback from customers relevant for each consumer, presenting the protection, privacy and cyber security’ and who indicated there were opportunities next best actions that help navigate their ‘customer satisfaction’. We also provide an for improvement. We listened and, in individual property journey with ease. overview of the learning opportunities we response to the feedback, changed the benefited from through innovation in FY20. Agent Match product so that seller leads are more accessible to customers, while Our purpose is to change the way the world ensuring that consumers also have a great experiences property, and we can’t achieve experience. The changes we have made our purpose with a limited or constrained include removing the charge to customers set of ideas. That’s why innovation receiving the leads and we will continue to continues to sit at the heart of both our evolve the product. purpose and our future growth plans.
At REA Group, innovation is all about turning an idea into an offering that meets a genuine need of our customers and Pay On Sale consumers. Constant innovation is vital to adapting the realestate.com.au experiences Driven by COVID-19 and our desire to help our customers and consumers find their to keep up with consumer expectations way through the tough market conditions, REA released a series of measures aimed and to stay ahead of the competitive at reducing costs and providing customers with a variety of tools to give vendors curve. Through innovation, we keep our the confidence to bring properties to market. One of these was an innovative way position as the largest and most engaged for customers to delay full payment of the campaign until the point of sale, ensuring property audience in Australia and, that both real estate agents and vendors could manage the market uncertainty. therefore, we ensure REA Group continues to thrive.
Innovation begins in our teams. We have a long history of building diverse and inclusive teams because we fundamentally believe that diversity and inclusion are the engine room of innovation.
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Innovation continued
languages. This experience also allows users to search for property in close Data initiatives proximity to train stations and schools. In a short amount of time, the explore Over the last two years, REA Group experience has more than 10% uptake with has invested in building a common the majority of use coming from mobiles. data platform to be used across the company. This is built on top iOS app log out of Google’s BigQuery product and allows publishing of data to a single In November 2019 we released a version location, transforming data for use in of our iOS app that had an unplanned side REA Group’s products and business effect. Some users who were previously intelligence, and a framework for logged into their realestate.com.au powering data science models account were effectively logged out, with machine learning. In FY20, we and had to enter their email address and launched our REA Insights brand, password again. While this may seem like which leverages our audience data App releases a minor inconvenience, for us it was a and behavioural market intelligence really big deal – we have high standards Through automation and collaboration, to share the latest property market for the quality of our experiences and we have accelerated our iOS and Android insights with consumers, customers we’d let some of our consumers down. app release frequency from releasing once and the media. At REA Group, we have an ‘always on’ a month to releasing a new version of our approach to ensure we learn from every apps every week. Next we focused on incident like this. Our process is called the delay between accepting final code the Post Incident Review (PIR), which is changes and the fully tested app bundle where we get together to understand what arriving on a consumer’s device. We happened and why. We then identify as a focused on simplifying our ‘release train’ team what steps we’ll take to reduce the procedures such as regression testing and likelihood of the issue repeating. reduced the lag time from 10 business days to six days. Process innovations like these are part of the REA Group’s DNA and we’re always on the lookout for ways to move more quickly and efficiently.
Explore (Asia)
In FY20 the Consumer team released the ‘explore’ search experience to help consumers search for property in a new way. Our new explore feature allows users to perform a type-less search experience that you can perform by click or tap. This is extremely beneficial for people who need to perform searches in non-English
CIO50
In November 2019, REA Group’s CIO, Tom Varsavsky, was recognised as one of Australia’s most innovative tech leaders – coming in at number 13 out of 50 senior #13 tech executives across Australia as part of the CIO50 list, judged by CIO Australia. Out of 50 senior The list recognises top tech executives who are driving innovation and influencing rapid change across their organisations. Tom was recognised for his strategic tech executives leadership and supporting his team’s delivery of Locke, moving to Cloud-only, and for championing diversity in technology, as well as other innovative changes.
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Innovation continued
REAio House number filter A global pandemic couldn’t stop innovation at REA Group and it didn’t Importantly, our REAio events are accessible for our teams – wherever they’re stop our 36th REAio from going ahead based. Our Xi’an based team, which looks after MyFun and our Global Property either. REAio is a three-day event that Network (GPN), won awards in the last three REAios, mainly in the field of runs twice a year, where people from innovation. In FY20, the Xi’an REAio team won an award for developing the around the organisation form teams ability to filter property down by house number, and it was released in MyFun. to hack on an idea. The types of ideas MyFun, a China outbound portal, attracts consumers who like to buy property hacked include new products, efficiency with auspicious numbers for feng shui, so this was a great feature to go into improvements and community initiatives. production. The team backed up its win in the last REAio again in the field of innovation with the ability to search the map view by shape using your finger or Our REAio events provide our people mouse. The idea is being refined with the plan of getting it into production. with the opportunity to collaborate, innovate and learn, with our 36th REAio becoming our first entirely virtual REAio. Here’s how we did it: Dogs of REA Calendar
At REA Group, we are fortunate to be able to work with our furry friends in most Virtual pitch session with pre- of our offices. One of our new team members saw the happiness and generosity recorded videos allowed teams this was bringing to the office and suggested we make a calendar of our people’s to share their ideas across the dogs and sell it to raise money for a charity. The suggestion took off and a team company and recruit additional formed to bring it to life at the next REAio. The idea turned into a competition, team members with a website being developed to enable people to submit photos of their dogs, Zoom rooms and Slack Groups vote on their favourites and pre-order calendars. More than 80 submissions were set up to enable teams to were received, and the top 36 dogs voted on by our people got a spot in the collaborate continuously from calendar. The team completed the Dogs of REA calendars in time for Christmas their own homes 2019, selling 105 in total. Payment for the calendars was facilitated through our Matched Payroll Giving platform, which raised a total of $3,940 in combined Virtual marketplace – teams employee and matched donations for Pets of the Homeless. pre-recorded demonstrations of their hacks and were available in Zoom rooms for people to drop in an ask questions about what they had built
Online voting to allow employees to vote for their favourite hacks.
The event ran flawlessly with participant levels on par with previous events. There were also some benefits of a virtual REAio, such as increased participation from interstate and international employees. Our employees told us they really enjoyed having videos of pitches and the marketplace to view in their own time too.
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Responsible marketing
Setting clear policies Related party transactions Independent industry platforms and expectations on Where REA Group proposes to enter into use of media joint content and marketing agreements We use independent industry platforms, with its related parties (including News Pty such as Nielsen, to report on our REA Group’s Risk and Assurance team Ltd and its subsidiaries), all arrangements audience size and characteristics of our works closely with our Audience and are subject to prior review and sign off audience, allowing us to benchmark Marketing team to create a risk profile. by REA Group’s independent directors. against competitors. We also invest heavily This details a summary of risks and causes, This ensures that the arrangements in research annually, with more than the likelihood and consequence of them are on ‘arm’s length terms’. Business 10,000 customers and 17,000 consumers occurring and ensures risk controls are in as usual marketing activities such as reached each year through our research place to manage them. The partnership advertising, sharing or bundling of content programs. REA Group is a proud member between the two teams ensures best or sponsorship of events that involve of the Association for Data-Driven practice marketing activity, with all claims collaboration between REA Group and Marketing and Advertising (ADMA), which featured in marketing materials also its related parties, may be reviewed and ensures our teams stay up to date with reviewed by our Legal team. approved by REA Group’s CEO, CFO or the changing landscape of data, digital General Counsel and Company Secretary marketing and compliance. under delegated authority, if they meet the criterion of being on ‘arm’s length terms’.
Media advertising terms and conditions
All advertising from clients, media agencies and programmatic advertising must comply with REA Group’s Media Advertising Terms and Conditions, which are publicly available on realestate.com.au. REA Group does not accept advertising from all advertisers, such as those including explicit content and imagery, hate speech, weapons and gambling (lotteries are permitted). With regard to programmatic advertising, we maintain an Advertising Block List to ensure advertisers we do not accept advertising from are not featured.
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Sustainable procurement
Ensuring the selection, us choose value-aligned suppliers, this process is set up in collaboration with the information demonstrates that company relevant business lead and supplier. They management and values and community investment forms review agreed service level agreements payment of suppliers a key part of our decision-making process, (SLA) and key performance indicators and has the flow-on effect of encouraging (KPI) deliverables, business continuity is fair and transparent, more businesses to invest in these areas. impact, relationship health and more. The Procurement team manages a promoting local Our due diligence program preferred supplier list, which encourages consolidation of suppliers and enhances sourcing and supplier This program is triggered for all new economies of scale by continuing to suppliers and used as a tool to check in on diversity support suppliers that have been assessed existing suppliers. The assessment covers against our governance and sustainability risk of exposure of highly confidential Procurement mandate priorities. information, personal information, material Our Procurement team supports all financial risk, material reputational risk, Payment terms and contracts that have a value of $100,000 risk of infringing third party intellectual or more, and REA Group employees are property rights, and access to candidate or purchase orders expected to reach out to the Procurement employee records. Read more on page 27 REA Group’s payment terms are 30-days, team prior to committing to any suppliers in Human rights and labour standards. which encourages sustainable relationships or entering into commercial discussions. with our suppliers. We also have flexibility Self-serve procurement guidelines are Supplier governance to offer shorter payment terms to support available for contracts and supplier small and start-up businesses. Every effort engagements of less than $100,000 Our Procurement team has regular must be made to create Purchase Orders and procurement support is still available check-ins with our suppliers to encourage (POs) prior to suppliers starting work or if required. feedback, continuous improvement, to provide updates on our priorities for any goods being delivered. Contract approvals further alignment and to ensure our supply partners are continuing to improve their Prior to executing any supplier contracts, own ESG processes. For some strategic a contract approval form is completed and key suppliers a formal supplier governance approved by the Procurement, Finance, Risk and Assurance teams, in addition to the Business Lead and Legal team – prior Supplier code of conduct to the contract being reviewed and signed by an Executive Leadership Team member. We also require suppliers meet our Supplier Code of Conduct. This Code expects Our request for suppliers comply with all their laws in relation to proposal process workers’ rights and human rights, anti-bribery and anti-corruptions laws and other laws in relation to When conducting request for proposals business integrity, privacy, health and safety, and (RFP), we ask suppliers to share their environmental considerations. Suppliers must also company values, how they support the have adequate policies and procedures in place local community and how employees to monitor compliance with these laws. are celebrated. In addition to helping
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Human rights and labour standards
Respecting and Anti-corruption promoting human and compliance program labour rights within our As part of our commitment to continually improve how we do things at REA Group, workforce and supply we’ve consolidated our existing policies, chain and ensuring guidelines and processes into an Anti- Corruption Compliance Program. The no modern slavery new program further strengthens business integrity at REA Group with our customers is taking place and suppliers, and clearly sets out the governance structure. We have zero Modern slavery tolerance for bribery and corruption and REA Group’s Supplier Code of Conduct, aim to further embed REA Group’s values Anti-Corruption Compliance Program, and high standards of integrity and ethical Supplier Due Diligence measures and business practices. legal training are all part of the company’s The Anti-Corruption Compliance Program commitment to respecting and promoting was launched on 1 June 2020. This human and labour rights both within our program cuts across all lines of business workforce and supply chain. Importantly, including customers, suppliers and this is a way we can play a role in helping new merger and acquisition activities. end modern slavery within our sphere There are five parts to the framework of influence. of this program: REA Group’s Modern Slavery Statement will be published on the company’s corporate 1 Leadership and oversight REA Group completed a website prior to 31 March 2021. comprehensive internal audit 2 Risk assessment for underpayment of employees Legal training covered by modern awards in FY20, which revealed no instances of REA Group carried out a one-hour virtual 3 Control measures underpayment. A separate audit legal training seminar for employees of superannuation guarantee in Australia, which covered issues such Review, monitoring and 4 contributions with our outsourced as privacy compliance, anti-bribery and enforcement payroll provider revealed a minor corruption and whistleblower policies. In 5 Training and communication underpayment in FY20 to a small total, more than 900 employees attended number of employees. This error was one of the four training sessions. In Asia, The implementation of the program caused by REA Group’s outsourced we have a 91.5% completion rate for is timely given the increased risks payroll provider and has since been employees who have completed online of corruption and fraud outside of corrected. Impacted employees were compliance training across Thailand, REA Group in the wake of COVID 19. informed and the underpayment was China, Malaysia and Hong Kong. promptly remediated at the end of financial year.
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Human rights and labour standards continued
Supplier due diligence confidential information; systems holding subcontracting, environmental obligations, measures this information or the possibility of bribery and corruption, legal compliance suppliers exposing REA Group to material and ethics, privacy law compliance, cyber REA Group manages a digital supply financial risk (> AUD $2 million); material security and more. chain focused on the delivery of digital reputational risk; infringement of third In FY20, 35 due diligence questionnaires products ranging from applications to party IP rights; where the total value of were completed, with one vendor rejected our customers and consumers to digital an engagement exceeds AUD $250,000. based on the information uncovered in advertising. There are a significant number In these instances, REA Group requires the due diligence process. During the past of components in REA Group’s supply that the supplier complete a nine-page three financial years, 111 due diligence chain such as management of developers, due diligence questionnaire. Suppliers will questionnaires have been completed cloud services, IT infrastructure, advertising be asked to complete the questionnaire with four vendors rejected based on technologies, customer relationship either when they are initially onboarded or, their disclosures. management and product delivery. if it was not carried out at that time, during a subsequent contract renewal cycle. REA Group intends to strengthen due REA Group has identified several areas diligence measures in FY21 by adding to where key suppliers could expose the The questionnaire addresses matters the questionnaire an explicit question about business to material financial or non- relevant to our supply chain, including whether the supplier agrees to comply with financial risks. These include suppliers potential conflicts, affiliations with REA’s Supplier Code of Conduct. receiving access to personal or highly government or state-owned enterprise, In FY20, REA Group sent its Supplier Code of Conduct to all Australian suppliers it has commercial dealings of AUD $1,000 or more, and all REA Group Asia suppliers it has commercial dealings of AUD $20,000 or more. New suppliers are sent the Supplier Code of Conduct as part of supplier onboarding. There were no known breaches of REA Group’s Supplier Code of Conduct in FY20.
As a provider of digital advertising services and adjacent property and financial services, many of REA Group’s suppliers are suppliers of software or other professional services. These are predominantly sourced from within Australia or from other highly industrialised nations (for example, software vendors from the US and Europe). In FY21, REA Group will be assessing whether there are higher risk suppliers in REA Group’s supply chain (based on industry and geography), and may undertake targeted audits where appropriate (noting that travel and social distancing restrictions may mean onsite audits are not feasible).
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Social
Championing the needs of our stakeholders, participating positively in the communities we operate in, investing in our people, creating innovative customer solutions and consumer experiences
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Diversity and inclusion
Providing a fair and REA Group’s people across Australia and Asia equitable workplace, Country Female Male Total free from discrimination Australia 547 573 1,120
Providing a fair and equitable workplace China 10 1 11 free from discrimination is paramount at REA Group. Diversity and inclusion were Hong Kong 35 28 63 identified as one of the top sustainability Malaysia 128 125 253 ‘issues’ as part of our most recent materiality assessment. Thailand 21 11 32
Grand total 741 738 1,479
Percentage 50.1% 49.9% 100%
REA Group’s senior leaders across Australia and Asia
REA Group’s Leadership Group (RLG) includes the CEO, Executive Leadership Team (ELT), and direct reports of the ELT in addition to HR Business Partners and Commercial Managers.
Country Female Male Total
Australia 37 38 75
Asia 15 21 36
Grand total 52 59 111
Percentage 46.9% 53.2% 100%
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Diversity and inclusion continued
REA Group’s people investing in the professional development of mid-tier women identified as potential At REA Group, we have 1,479 employees future leaders. The program is designed across five countries, spanning Australia to enhance the leadership skills and 50:50 and Asia. This includes 1,120 employees in commercial acumen of women and those gender representation among Australia and 359 employees across China, who identify as non-binary working in senior leaders in Australia Hong Kong, Malaysia and Thailand. male-dominated industries. It is a bespoke program designed for REA Group. Out We have a great story to tell when it of seven women participating in the comes to gender diversity, with 50.1% program in 2019, four of them received of our people across Australia and Asia a promotion. 1,479 identifying as female and 49.9% of our people identifying as male. Women in Technology employees across Mentoring program Australia and Asia In FY20, of our senior leaders across Australia and Asia, 46.9% identify as female, This program was initially piloted with 53.2% identify as male and 0% identified as women in technology and later extended other. Of our senior leaders in Australia, we to everyone in tech, product and design have achieved our target of 50:50 gender communities (where traditionally female 50.1% representation. This was an improvement representation is low). The program of all employees identify on the FY19 gender representation among was designed to connect women in as female REA Group’s senior leaders in Australia, technology with those across REA Group which saw 45.2% of senior leaders as well as sharing learnings, providing identifying as female, 54.84% identifying support and fueling a culture of learning as male and 0% identifying as other. We and knowledge-sharing across REA. are working towards setting Global and The satisfaction rate of the Women in 46.9% Community diversity targets. Technology Mentoring program was 80%, which led for the program to be extended of our senior leaders across Australia Companies with more diverse teams to the entire tech, design and product and Asia identify as female perform better, and at REA Group we like communities (all genders). to be ahead of the curve when it comes to technology. For a company to be truly REA Group's tech community in innovative, we believe there has to be Springboard to tech Australia who identify as women an exchange of ideas through debate This program started in 2018 and was (%) among diverse groups. With the privilege of a diverse customer and consumer designed for women who are changing careers or returning to technology 30.2 base, we need to have an equally diverse roles after a career break. Many women 28.5 workforce if we want to build software that is inclusive. Here are some of the entering the program have previous programs we run to enhance diversity professional experience and we have, at REA Group: therefore, developed a flexible program with a maximum length of 18 months. 20.4 Grad program Find out more about it here:
In FY20, we achieved a 50:50 gender Springboard to Tech program split across our technology focused grad program. We do this to ensure a pipeline of women coming through the organisation from entry level onwards.
Accelerated leadership program
This was the third year of this program, which was established to help improve the representation of women in senior FY18 FY19 FY20 roles in technology at REA Group, by
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Diversity and inclusion continued
Diversity and Inclusion Guild Workplace Gender Our Diversity and Inclusion Guild was Equality Report formed in 2019. It comprises team Each year, in accordance with the members who volunteer from a wide Workplace Gender Equality Act 2012 (Cth) range of areas in the business including (WGEA), REA Group submits our Workplace varied levels in seniority, business unit, Gender Equality Report. We share our community and tenure. The Guild public report with all employees once focuses on generating a calendar of published. The intent of this is to help events that support various facets of Australian workplaces focus on promoting diversity and inclusion, builds awareness, and improving gender equality. provides education and aims to generate connection among a wide variety of REA The insights from this report are useful and employees. Events that have been run we appreciate the focus that compiling the include celebrations around faith-based WGEA report puts on our own practices. festivals, Unleashing the power of LGBTQ Women in the Workplace, a discussion on In addition to this mandatory reporting, LGBTQI+ Intersectionality and Friday night we also do additional analysis to compare social events. remuneration on a same job basis. Pre and post our Annual Remuneration Use of AI in recruitment practices Review cycle, we run our own analysis Leigh Tolliday, General Manager to identify whether there is any gender In early 2020, we piloted the use of an Data Services, with his daughters pay differential between people working AI company, known as Vervoe, in our Samantha (left) and Charlotte (right). in the same job and at the same career graduate recruitment practices. Vervoe is a level. This additional analysis allows us to machine learning and artificial intelligence- Leave options complete a more nuanced analysis that based skills assessment tool that enables is specific to REA Group’s structure and We have a number of different leave businesses to make hiring decisions based remuneration levels. options available to our people including on performance not bias. Personal/Carer’s Leave, Compassionate Parental leave Leave, Annual Leave, Purchased Annual Leave and Flexible working arrangements. REA Group proudly supports our people Due to COVID-19, we extended usage who are growing their families through of Personal/Carer’s Leave in Victoria to our Parental Leave policy. In our FY20 enable our people with flexibility to assist engagement survey in Australia, 87% with home schooling, childcare or their responded favourably to the question ‘REA general wellness. is supportive of parents in the workplace’. Details of our Parental Leave policy can In addition, we offer Domestic Violence be seen on our corporate website: Leave for any of our people subjected to domestic or family violence. This includes Supporting parents and families. supporting them with up to 20 days paid Our Parental Leave policy in Asia includes leave throughout their employment, plus a provision so unmarried people can an additional five days unpaid leave per 87% access parental leave. Each market in Asia year. This leave helps impacted team Agree ‘REA is supportive varies slightly in relation to the conditions members in making plans for their safety, of parents in the workplace’ and length of paid maternity leave, with relocating, attending court and accessing the minimum across all markets being police or medical services. three months paid leave. We also offer permanent male employees in Asia access to five days of paid Paternity Leave. Our 20 days teams in Asia can also access Marriage Leave/Wedding Leave, which ranges from Paid Domestic Violence Leave one to three consecutive days across throughout employment our markets.
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Workplace health, safety and wellbeing
Preventing work- We also hosted a virtual resilience series focused on sleep, productivity, mental Asia related injuries, illnesses strength, movement and nutrition. We also and accidents in the had a series of awareness-raising initiatives We run initiatives across Asia to and engagement opportunities during support the health and wellbeing of workplace promoting Mental Health Awareness Month and our employees. These include weekly R U OK Day. fruit days in all offices in Asia and the wellbeing of our Wellness Webinars for all employees. employees Health and safety committee The following market-specific initiatives were also offered: Health, safety and wellbeing was also one Our Health and Safety Committee in Malaysia of the top sustainability issues identified Australia meets every six weeks to discuss any health and safety issues from across as part of our most recent materiality Employee-organised and company- the business. The committee includes assessment. Maintaining a healthy and sponsored sporting club and corporate representatives from across the business safe work environment and the wellbeing partnership with the AIA Vitality including a member of our ELT who of our people is of utmost importance Program, including discounts and champions any issues needing to be at REA Group. incentives for employees when they reviewed by the ELT or Board. The ELT take part in wellness activities. We continue to support our people across and Board also receive a monthly report the areas of Physical, Emotional and on any incidents reported from a health Hong Kong Financial Health and you can read more and safety perspective. about some of these programs on our A healthy breakfast for all employees corporate website: Employee assistance program every Friday to promote healthy eating choices and energy levels – Flexibility, health and wellbeing We ensure all our employees are aware of also offered in Malaysia. support available through the Employee In our FY20 Employee Engagement survey Assistance Program (EAP) through regular Thailand in Australia, ‘REA cares about my health communication designed to increase and wellbeing’ scored 80% favourably. Monthly team activities to promote awareness of the program. Medical In our H2 FY20 pulse surveys undertaken health and wellbeing, such as insurance coverage is also provided as a result of COVID-19 virtual working, badminton and other exercise for all permanent employees in each targeted questions in relation to health programs. of our Asia markets. & wellbeing scored an average of 87%. To celebrate our passion for family, Lost time injury frequency rate health and wellbeing, we also invited our people to take part in our May Month of REA Group’s Lost Time Injury Frequency Mindfulness (Australia and Asia). In May, Rate (LTIFR), which is the represented rate we ran a month-long series of events to of injuries per one million hours worked encourage our employees to practise daily in FY20, was 0.00 in Australia and 0.00 for mindfulness and provided daily mindful Asia, making our global LTIFR 0.00. The actions to help. A number of these events FY20 target is an LTIFR of two or less. were extended beyond May and now make up a regular schedule of activity that our employees can access online.
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Talent development and management
Managing current and The structural changes also saw the In addition to the investment in 99.co, creation of 36 new roles, some of which REA Group continues to operate across future talent needs were suitable for individuals whose roles Asia, with 359 employees. Read more through attraction, had been made redundant to transition to. about REA Group’s operations in Asia on page 3 in About REA Group. retention, training Individuals who exited REA Group via redundancy were provided with Commitments and and development a minimum of four weeks to seek redeployment or source alternative career plans Organisational structure – roles within the business. They were All our employees participate in an annual Australia also provided with full EAP support performance approach that enables during the redeployment period and us to give our teams clear direction In August 2019, REA Group Australia’s post-employment, financial redundancy on deliverables, as well as feedback organisation structure evolved to align support above statutory guidelines on the impact of their performance. with the company strategy. Each part of for redundancy and notice period, In establishing our performance approach REA Group’s strategy is interconnected and comprehensive career transition we believe in four principles: and interdependent, and the new structure support from an external provider. reflects this. During the second half of FY20, in 1 Partnership The structure saw changes across all response to COVID-19-related business Where good performance management groups within REA Group’s Australian challenges, REA Group undertook a relies on the shared accountability of operation, with some teams merging, further review of its cost base, including both managers and team members and a reporting lines changing, as well as resourcing across Australia and Asia. This belief that the conversation and feedback opportunities for our people to change resulted in a further 10% reduction of roles is the most important part of the process. roles and step into leadership positions. (including vacancies) and contributed to the wider cost management program. 2 Impact In instances where an employee’s role was no longer part of the new structure, every Investment in 99 Group The importance of differentiating effort was made to work with that team on impact, not effort alone, and the member to identify other suitable roles On 28 February 2020, REA Group entered importance of manager capability in in the business. an arrangement with 99.co to establish a having difficult conversations when it Singapore-headquartered digital property comes to delineating on impact during As a result, 90 roles were removed marketplace, through the transfer of the review process. from our organisational structure. Of the existing Singapore and Indonesia these 90 roles, 74 were filled by current businesses of 99.co, iProperty.com.sg 3 Consistency employees at the time, with 16 roles and Rumah123.com. being vacant – which have since been Providing our teams with a global removed from our structure. Of these In exchange, the Group received a 27% framework that is clear, simple and 74 impacted roles, 15 individuals were shareholding in the company and it also straightforward to use, and that drives redeployed into new roles, 47 individuals has two Board seats on the 99 Group consistency in our ratings across teams. exited via redundancy and the remaining Board, occupied by REA Group Asia CEO 4 Behaviours 12 individuals are on delayed redundancy and Chief Strategy and Customer Product or delayed redeployment. Officer Henry Ruiz, as well as REA Group That ‘how’ the work gets accomplished is CFO Janelle Hopkins. as important as ‘what’ gets accomplished.
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To assist with consistency and to help Our values our managers have more challenging REA-U conversations, we changed the label of At REA Group our values are at the core our ratings to facilitate a more positive of our culture. It’s important we share a REA University, which launched in FY19, is interpretation of the midpoint by labelling common language about who we are and a competency-aligned learning framework this rating as ‘great job’. what’s important to us. A common set of built on the premise that learning is an values that guide what we do and how enabler to career growth through career A key part of our performance we do it. pathways and learning journeys. In FY20, framework is the development of career we launched a dedicated digital platform While our values are at the heart of who conversations that assist our people to to facilitate learning for all our people we are, we have taken even greater achieve in their role and career. We believe globally, while providing a decentralised steps this year to embed them into our the power of these conversations is in administration solution for all our schools. the way our managers connect with their Performance Reviews. This year we have people. We have been spending time given them a new weighting where they Our REA-U schools in Australia include: building the capability of our managers now serve as 50% of a team member’s • School of Self to have impactful conversations with end-of-year performance rating, with the their team members about their current other 50% on goals that were achieved. • School of Business experience at work and in their role, what This emphasis means there is a clear • School of Leadership motivates them, what’s hard and also message that how we do things is just • School of Tech what’s next. as important as what we do. • School of Sales Incentives and remuneration We continue to reward our employees outside of these reviews through our Real Some of the highlights from FY20 include review process Deal awards, where individuals can submit our School of Tech launching Colab and their own recommendations on where All non-sales permanent employees at Amazon Web Services (AWS) training, they are seeing our values show up. This REA Group participate in a short-term as well as tech-focused inductions for year we have seen both individuals and incentive plan. This annual incentive employees and managers. teams winning our monthly awards as they is based on a percentage of salary, demonstrate our values. We also saw our School of Sales launch with the incentive outcome based on virtually in 2020, with a series of webinars, a combination of equally weighted learning and connection opportunities individual and company components. specifically created for our Sales Our sales employees participate in a community. sales incentive plan that aligns their Coinciding with the new platform, we remuneration with results. We want extended the reach of REA University people to connect their own performance with our launch of three Schools in Asia to REA Group’s performance and be – School of Self, Business and Leadership thanked for the contributions they make and Tech. In March, in the midst of to REA Group. COVID-19, the School of Sales launched We also provide Length of Service Rewards . . virtually to our Australian sales teams. and an Employee Referral bonus, where FY20 also saw us continue our strategic we award people who have successfully partnership with RMIT Online where we referred a friend to work at REA Group provide industry-thought leadership to with a payment on their friend’s co-design a number of the Future Skills commencement. industry-led online short courses. Some of In our FY20 Employee Engagement survey, our team members also coach and mentor 81% of people scored favourably to the course students. question ‘I understand and value the In FY21, we plan to launch further benefits that are available to me’. schools across our Design and Product communities in Australia, in addition to launching the School of Tech in Asia.
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Reward and CEO Awards
Recognition Along with other individuals nominated by the ELT, any individual or team who Winners wins a monthly award goes into the yearly draw, where the ELT review and select the top 10 nominations they want to further recognise through the CEO Awards. These individuals and teams are recognised at the annual Global Kick Off (GKO), where individuals and teams are awarded a cash payment.
Faye Ong, Commercial Analyst (top) Andy Chen, Senior Developer – Mobile
The Real Deal awards
Recognising the contributions and achievements of our people is essential. We do this in a variety of ways, including our monthly peer nomination program recognising those who go ‘above and beyond’ – the Real Deal Awards. Nominations are reviewed by a committee that collectively decides who deserves the thanks and recognition for the month, with the number of these monthly awards uncapped. Winners receive a monetary award.
The Real Deal extends to our teams in Asia to recognise and reward team members who go over and above to demonstrate our values, with some slight variations on the Asia version of the program to align with the local markets.
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Leadership conference working and broadening their technical skill set. It provides a valuable opportunity Tech Kick Off (TKO) At REA we understand that one of the to learn on the job and to share skills in a single most important drivers of culture collaborative environment. The program Each year we run a TKO where is leadership. Therefore, we ensure that offers support through buddies and our Tech, User Experience (UX), our leadership community is aligned on mentors, while maintaining a structure that Design and Product communities both strategy and culture. Twice a year we sees our grads meeting their goals before come together to understand our run a leadership conference for our most entering into permanent placements. common strategies, celebrate our senior leaders where our objectives are successes and be inspired by what’s to connect on strategy, evolve our ways of Our FY20 grad intake participated in a ahead of us. TKO is also about working, build a courageous culture, invest 100% virtual assessment centre, using a sharing knowledge, learning new in our leadership capability and build peer machine learning and artificial intelligence skills and having some fun. In FY21, connection. An evolution of our leadership based skills assessment tool that allows our TKO will be extended to our culture has been to actively strengthen businesses to make hiring decisions based people in Asia. the leadership community outside of our on performance not bias. senior group and to be inclusive of all our people leaders. Town Halls We run a virtual People Leader Town Hall Grads on a monthly basis, where every leader at FY20 saw REA Group hire its eighth REA Group comes together for a forum. cohort of grads, welcoming 10 new We again focus on the full spectrum team members (50:50 gender split) into of leadership, whether it be learning the Developer stream from a pool of about what makes a great leader at REA, 428 applicants. In FY19, our seventh cohort to managing performance, emotional saw seven grads in the Developer stream resilience and leadership. There are early join the team from 372 applications. indicators that this investment is paying off. In recent Pulse surveys we are seeing Our grads go through a 12-month program differences in leadership sentiment at all of rotations, experiencing different areas of levels narrowing as we become more the business, learning new ways of aligned as one leadership cohort.
REA Group's FY18 grad cohort
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Employee Engagement
Creating a culture and Once a year we complete our annual across the business to participate engagement survey and use this as a in cross-functional, Engagement workplace where our mechanism to hear from our people about Solutioning Groups, with a number of people have a positive what we can do to improve, to benchmark their recommendations activated in FY20. ourselves against best practice companies We do this to create a culture of shared attitude towards REA and to track the impact of any actions accountability when it comes to creating taken since the previous survey. engaged employees. Results are also Group and our values reviewed at a Board level, as well as with Organisational actions are driven via our our HR Committee to ensure we are Having a continuous listening strategy Executive Leadership Team and supporting tracking progress year on year. to truly understand the experience of areas like People and Culture. In parallel to our people, reflect and to take action is these organisational actions, Group-based We also introduced Pulse surveys in fundamental to REA Group’s success. Our actions are driven by individual Executive 2020, as our people transitioned to virtual most recent materiality assessment also members and team-based actions are working, to provide regular opportunities identified ‘employee engagement’ as one of driven by individual managers. In FY20, for feedback and ensure we are supporting the key sustainability issues for REA Group. we also engaged a number of volunteers our people the best we can.
Pulse surveys
When COVID-19 hit and our people to help our leaders better understand how around leadership transitioned to virtual working in early their teams were feeling and help us to communication March 2020, we started to look at ways the quickly address areas that needed extra reduce. Employees teams could connect on a more regular prioritisation or support. shared that we had an basis with our senior leaders. This included opportunity to improve transparency in The initial survey provided positive weekly Town Halls for all employees with our communications around structural feedback on the way we have approached our CEO including question time, group changes. As a result, we have made a flexible working during this virtual working based Town Halls and monthly people commitment to share information on period, particularly around our support for manager sessions. Upon rolling out many the ‘why’ in decision-making, in addition people working from home with children. of these initiatives, we realised that we to the ‘what’ – which is often shared In this initial phase, the teams also told us weren’t able to truly recognise whether at a Town Hall level. We have made they valued the regular ELT engagement they were having the desired impact and, these commitments to provide greater and appreciated the opportunity to put therefore, decided to seek feedback via transparency and improve communication forward questions to the CEO and ELT. our two virtual working pulse surveys. of business decisions. As a result, we have continued to provide These surveys were run approximately these forums of engagement on a weekly As part of our weekly virtual Town Hall six weeks apart and were intended to basis and also committed to continuing engagement, we also took the opportunity give all employees the opportunity to this engagement once we return to the to track weekly sentiment by asking our provide any insights or feedback around office. employees to respond to one recurring their REA Group experience during this question over a 14-week period – ‘I believe Due to some tough organisational unprecedented time. The responses were REA Group is effectively managing the changes that were made between the first collated and shared organisationally and current challenges to secure our future,’ and second surveys, we saw this sentiment with individual people managers in order the average positive sentiment was 92%.
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Employee Engagement survey In FY20, engagement scores were 78% for ‘Communication from executive leaders Australia (participation 89%) and 79% for Asia In REA is authentic and transparent’ REA Group’s annual Employee Engagement (participation 94%). The decrease in overall In the FY20 Employee Engagement survey survey invites employees to respond to engagement in Australia’s FY20 Employee we saw a year-on-year shift in sentiment questions relating to the following factors: Engagement survey result can largely around executive leader communication. be attributed to changes the business For the question ‘Communication from Engagement announced in August and activated in executive leaders at REA is authentic and September 2019, to evolve REA Group’s Organisational performance transparent’ our results went from 75% organisational structure to align with the positive sentiment to 57%. This inspired Executive leadership capability strategy (see ‘Organisational structure – a shift in the way our CEO and Executive Australia, page 34). Despite this timing, Leadership group capability team are communicating with the it was important to us to continue with business, particularly during the COVID-19 Your manager the survey and commit to understanding pandemic. employee sentiment while recognising Learning and career development our scores would most likely be impacted. Our CEO now runs weekly Town Halls Remuneration and benefits We believe that employee engagement is for all employees and, in addition to any about understanding employee sentiment, announcements, space is left for questions Diversity and inclusion celebrating where we’re doing well and each week so our people are able to Community and social engagement focusing on what more we can do to thrive. address any burning issues – confidentially or directly. These are followed up with Health and wellbeing ‘I am proud to work for REA’ summary messages to employees, and NB. Employees in Asia are also invited In Australia, we have consistently seen recordings of these sessions are provided to respond to questions on the factor: strong positive sentiment around on our intranet afterwards. We have also ‘Your role’ employee pride with ‘I am proud to work been checking in with our people to REA Group Australia for REA,’ with 93% positive sentiment in assess the impact of these changes to FY19 and 87% positive sentiment in our communication, via pulse survey, and In FY19, REA Group’s overall engagement FY20 Employee Engagement survey. This we have seen positive results around was at 87% for Australia (participation 92%) reflects a high level of brand and purpose employees’ feeling as though they are and 77% for Asia (participation 97%). affiliation by our employees. being kept informed in a timely manner. 78% Engagement score for Australia (participation 89%) 87% Agreed ‘I am proud to work for REA’ in Australia 79% Agreed or strongly agreed that ‘My manager communicates regularly and effectively with me’
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‘My manager communicates regularly Our Country Leaders in Asia have ‘The bonus structure fairly recognises my and effectively with me’ developed a practice of regular Town Halls efforts and achievements’ to celebrate milestone achievements of Our FY20 Employee Engagement survey In Asia, our FY20 Employee Engagement the teams against plans. The REA Group results have also honed our focus on survey found 54% positive sentiment to Asia CEO has also developed a cadence our people managers as a cohort this the question: ‘The bonus structure fairly of quarterly results announcements that financial year. Our results show that 79% recognises my efforts and achievements,’ are used to reinforce the linkage between of employees either agreed or strongly and in our FY19 Employee Engagement strategy and operational delivery of the agreed that ‘My manager communicates survey, the positive sentiment to this work. In 2019, we also introduced quarterly regularly and effectively with me’. While question was 42%, reflecting a positive road map sessions to ensure alignment this is by no means a low result, it told us year-on-year uplift of 12%. within product and technology against that 21% of our employees did not have our product delivery plans. In July 2019, we evolved REA Group regular and effective conversations with Asia’s Short Term Incentive (STI) plan, to their managers. ‘I would recommend REA Group Asia demonstrate the truly global nature of our as a great place to work’ Via our Moments that Matter project work, business, and make the company target an we set out to unpack what impactful In Asia, our FY20 Employee Engagement REA Group target that would apply to all conversations look like for our employees survey found 81% positive sentiment to the employees across REA Group. and the role managers play in ensuring question ‘I would recommend REA Group The annual incentive payment is calculated a rich experience for the employee and Asia as a great place to work’ and in our on the basis of 50% individual contribution REA Group overall. In using these insights FY19 Employee Engagement survey, the (with the potential of overachievement for gathered from the business we created a positive sentiment to this question was 75%, exceeding performance targets) and 50% set of five core Manager Competencies reflecting a positive year-on-year uplift of 6%. on the achievement of company results. that now serve to guide our managers in Other initiatives that have had an impact This was received positively by the Asia leading effectively at REA Group. We do on this factor include the new offices for team and we will measure the sentiment this to foster a culture in which employees each of our current country HQs reflecting of the team in the FY21 Employee will have regular, impactful conversations the personality of REA Group globally, but Engagement survey. with their managers. still recognising the local culture of each REA Group Asia market; the introduction of our flexible working policy in August 2019; as well as ‘I know how my work contributes to the investment in learning and development goals of REA Group Asia’ resources and programs. 81% In Asia, our FY20 Employee Engagement In addition, REA Group Asia’s Because We Agree ‘I would recommend survey found 88% positive sentiment to the Care Asia program is now in its second REA Group Asia as a great question ‘I know how my work contributes year. This provides employees with the place to work’ to the goals of REA Group Asia’ and in our opportunity to participate in volunteering FY19 Employee Engagement survey, the while still being paid and having donations positive sentiment to this question was to chosen charity partners matched 86%, reflecting a positive year-on-year by REA Group Asia. Our engagement uplift of 2%. survey showed strong sentiment in this space, with the result of the question: 54% One of the ways we continue to reinforce ‘I believe REA Group Asia Makes a positive Agree ‘the bonus structure the linkage between the objectives of contribution to our community,’ improving fairly recognises my efforts REA Group Asia and our teams, including from 68% in FY18 to 83% in FY20. and achievements’ the individuals who contribute to them, is through a cascaded strategy approach. In January 2020, we introduced a values- This means we start with REA Group specific rating scale to our performance strategy, which leads into REA Group framework in order to ensure the Asia Strategy, and that is shared with behaviours of our people were rated as all employees via the annual Strategy equally important as the performance of 88% Roadshows. Then it’s into market and their roles. In order to ensure we continue Agree ‘I know how my work function-based annual plans that focus to hire for cultural fit, we are in the process contributes to the goals of on the deliverables of the work. of formalising values-based interview REA Group Asia’ questions into our interview templates.
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Flex @ REA With 86% of our people in Australia Global communication responding favourably to the FY20 We know that being able to work flexibly is platform Employee Engagement question: ‘I feel important to our people. We recognise that genuinely supported to make use of my Our new global intranet, people have busy lives outside REA Group flexible work arrangements’, we know that The Garage, was launched in and we want to support them to live this the working flexibly forms an integral part of November 2019 and provides a best way they can. Everything we achieve at who we are, what we do and how we do it. one-stop shop for communication, REA, we achieve as one team. So, we strive stories and learnings for all our to create a culture that balances working Flex in Asia people across Australia and Asia. together with working flexibly. In September 2019, we introduced a The Garage delivers a personalised This has become even more important Flexible Working policy specific for our user experience that helps target with COVID-19 forcing people to work teams in Asia to enable them to access the right content with the right differently and predominantly from home. flexi-time and flexi-place arrangements, audience. To support the transition We are actively exploring what this means while still performing all key aspects of to our new intranet, we delivered for our approach to flexible working in the their role. face-to-face training across longer term. This enables team members to request Australia, Malaysia, Thailand and Our Flex @ REA policy sets the stage for longer term or recurring flexible working Indonesia, and virtual training for communicating our commitment to arrangements, either with flexi-start time Canberra, Adelaide, Hong Kong flexible working, with guiding principles or flexi-place. To support the new flexible and Singapore. We also provided for teams and individuals to decide what working arrangements for our people in on-demand courses through the flex works best for them. We give our Asia, we ran people manager workshops to REA University platform. people different options to work flexibly, help inform managers on how to support both in how they work, as well as where their team members with flexible working they work. Importantly, every conversation arrangements. about flexible working is okay.
Cultural and social celebrations
We celebrate many cultural and social occasions across REA Group, including faith-based festivals, International Women’s Day, Taste of REA to support Harmony Day and many more. We also hold Friday night Global Kick Off (GKO) social get-togethers every fortnight at our REA’s GKO is one of the most anticipated events on the REA calendar. We bring all Melbourne office (COVID-19 restrictions our Australia team, and some of our Asia team, together for one day to celebrate our permitting) for people to kickstart their achievements in the previous year and get on the same page for the year ahead. weekend with their colleagues and friends at REA Group. Each office location also It’s a day to connect with each other, be inspired and reflect on everything that makes holds an end-of-year celebration to REA great. Our theme for FY20 was ‘Unite’ which was focused on thinking with a one welcome the upcoming festive season, team mindset so our people, customers, consumers, shareholders and community giving people the chance to have some see us as the only place in the world for property. fun with their colleagues.
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Customer satisfaction
Meeting our customers’ In FY20, we recognised how important it was to understand more about the impact Support of not-for-profit expectations through of COVID-19 on our customers. This real estate agencies superior product and insight has been extremely useful in helping understand the things that matter REA Group proudly provides support service quality and to our customers and how we are able to to real estate agencies around continue to support them during these Australia that have been endorsed enhancing their user times. as a Deductible Gift Recipient (DGR) by the ATO, through the provision of experience In Asia, we ran customer sentiment a $0 subscription to realestate.com.au. research in FY20 across Malaysia, Our most recent materiality assessment Removing this cost for these DGR- Indonesia, Hong Kong and Singapore, identified ‘customer satisfaction’ as one endorsed agencies enables them to focusing on Agent customers. Pleasingly, of the top eight sustainability issues for reinvest the subscription cost back into we saw increases in satisfaction across REA Group to focus on. Our customers are supporting their local communities. our partners and we believe in the value most markets, largely driven by our they provide consumers. Our role is to help focus on customer support tools, data our customers succeed by creating world- and insights. class experiences and products that deliver results. Understanding our customers’ needs is key to driving innovative and effective products and services.
FY20 was the year of unprecedented challenges for our customers and communities, with COVID-19 challenging everyone across our Australian and Asian markets, as well as bushfires devastating customers around Australia.
Customer sentiment monitor
Running since 2014, the Customer Sentiment Monitor (CSM) is a survey of real estate agents and principals. It tells us how the market feels about REA Group and many aspects of the service we provide. The CSM helps us consistently track several key metrics including overall customer satisfaction, ROI, value for money, brand trust, positivity and advocacy. We continually adapt the CSM to ensure we are measuring the right things.
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Customer satisfaction continued
Complaints Management Customer touchpoints Our Complaints Management process We have several different is an integral part of how we improve touchpoints with our customers products and services, and the complaints to gather feedback, including process itself. As part of our commitment our face-to-face sales channels, to evolving this process, we have Customer Operations team, established a Customer Experience national events and forums, and Council that will champion the voice digital communication channels. of the customer, and drive awareness Other ways we measure customer within the organisation. In FY21, we will satisfaction and sentiment are see this evolve and provide key insights through our Customer Sentiment to drive customer experiences across Monitor and Customer Service the group including the launch of our Feedback Program (CSFP), which customer promise. provide insights across a number Customer care of areas including our products, Ignite and Pro services and account management. Our Customer Operations team supports Ignite (for Australia) and Pro (for Asia) is a customers and consumers across single self-service mobile-first platform. Australia, and all contacts to our Customer Ignite enables our customers to view the Care team are followed up with a performance of their live listings in real time Customer satisfaction survey. Performance in Australia. In FY20, we launched more targets are set, and our feedback survey is features to help our customers manage their monitored daily and reviewed weekly, to listings and campaigns including delivering drive improvements in satisfaction. In FY20, real-time and qualified private inspection our Customer Experience Teams in Hong request notifications to support customers Kong and Malaysia focused on improving through COVID-19 restrictions. In addition, onboarding, education and our speed we launched a popular feature ‘Also Viewed’, to service. which provides agents visibility of what Product development other properties were viewed by the same Customer Service audience viewing their listing. Looking Product feature input from our customers ahead to FY21, we will look at delivering Feedback Program is key to our design and development more features to help customers understand The CSFP is an always-on customer process. There are different ways in which where to focus their time and effort for the survey, focusing on the performance of we do this, including state-based focus most effective results. customers’ allocated Account Managers. groups, one-on-one feedback sessions, Pro, our platform in Asia, provides customers We use the results to provide training and and via National Forums. In FY21, we with one place to upload and manage their coaching to Sales teams highlighting the will be introducing our Customer listings in real time, view their campaign areas individual Account Managers do Advisory Board, a panel of customers performance, manage their profile and see well and areas where additional coaching who represent a cross section of our how the usage of what they’ve purchased is required. base. We’ll use insights generated from this panel to inform our customer value is progressing. In response to customer As we moved to an almost entirely virtual propositions and go-to-market strategies. requests, we also now provide the ability working environment during COVID-19, for agencies to distribute their listing and we used this to measure our performance upgrade allocations to their branches and to customers. Feedback to date has shown agents with full visibility of usage. In FY20, customers are no less satisfied with our iProperty PRO in Malaysia saw a significant Account Management through these improvement in customer experience with times, despite the change in working mobile prime, value-added packages, and styles and there is, for some, appetite to new data reporting to guide customers in move to a more virtual way of working their businesses. more permanently.
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Customer satisfaction continued
realestate.com.au positive change and ensure our AREAs 2019 Community award category winners Advantage program communities are primed for the future. – G.J.Gardner Homes, Shoalhaven NSW Through the Advantage Community Grant Our Advantage program supports our program, we prioritised grant applications network of real estate professionals with benefiting bushfire impacted regions, exclusive events, professional development to help them get back on their feet. opportunities, office technology support, REA Group’s customers all over Australia industry sponsorships and community have access to the Advantage Community grants. Our events portfolio consists of Grant program. In FY20, we saw thought leadership programs, education- 96 agencies awarded a grant, benefiting based series and an array of broad more than 80 different community hospitality and networking opportunities and charitable organisations around for customers nationally. the country, valued at AUD $120,000. The Community Grants program supports Read more about how the Advantage real estate agents who engage in their Community Grant program assisted local community groups, sporting communities impacted by the Australian organisations and other charitable bushfires on page 8. causes. Together, we can bring about Advantage Program
The Annual REA Excellence Awards (AREAs)
In 2019 REA Group held the 5th Annual REA Excellence Awards (AREAs), which were established to celebrate the success and achievements of our customers in the property and media industries. An exclusive event within the Australian market, the AREAs focus on recognising and celebrating the success of our customers PROP20 who support every aspect of the property journey. REA Group introduced Prop20 in FY20, on data and insights, tips to master their an industry event series delivering craft and material to set them and their Finalists are invited to attend realestate.com.au and realcommercial.com.au businesses up to be future ready. the Gala Dinner awards with customers the latest industry insights. They several colleagues enjoying the Overall the Prop20 events in Melbourne also provided an opportunity to learn about evening’s proceedings. There and Adelaide were a huge success with consumer trends, tips to master the craft are 21 accolades highlighting more than 1,500 attendees from multiple and how to position your business for industry excellence across segments of the market attending to hear future success. three categories, including: from a large variety of speakers talking Innovation, Service and Marketing, Initially created as a free conference all things property and how to position and Community. REA Group’s landing in Melbourne, Adelaide, Perth, themselves for future success. charity partners help to judge Brisbane and Sydney, with the onset of the Contribution to Community COVID-19, Prop20 quickly transitioned award, recognising companies and to a completely digital experience. The individuals supporting not-for- event provided property professionals with profit organisations and initiatives access to a jam-packed agenda focused in their local community.
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Community investment
Giving back to local Launch Housing Micah Projects in QLD, Ruah Community Services in WA, Justice Connect in Victoria, communities through Launch Housing and REA Group created a Women’s Safety Services in SA, Northern charity partnerships National Rapid Rehousing Fund in February Rivers Social Development Council in 2015 to support women and children at risk NSW, Anglicare in Tasmania and Dawn and programs of homelessness, to establish or maintain House in NT. safe, secure housing free of violence, across REA Group’s community partnerships are Australia. In FY20 the fund provided financial REA Group’s new employees also build all centred around our belief that everyone support to 686 women and children, new furniture for Launch Housing clients deserves a safe place to sleep every bringing the total number of people at the monthly corporate induction for night. We have chosen to partner with supported through this fund to 4,311. new team members. This initiative was organisations that have deep expertise and temporarily paused in February 2020 due experience on the issue of homelessness, The financial assistance from the National to COVID-19. so we can ensure our financial and in-kind Rapid Rehousing Fund supports a number REA Group also provides support to support is being channelled towards the of different needs. The top five include Launch Housing’s social enterprise real areas with the most need. the purchase of essential furniture and whitegoods, removal costs, rent in estate agency, HomeGround Realestate Our charity partners include Launch advance, rent in arrears and bond money. with free listings on realestate.com. Housing, Orange Sky Australia, The Big au. All profits made from HomeGround Issue and the International Committee The partner agencies around Australia Real Estate are reinvested back into the of the Red Cross. that help to broker the National Rapid community through Launch Housing. Rehousing Fund locally include:
Smartline’s community fund
Our Smartline team has been donating $10 from every loan they facilitate towards a community fund for the last 20 years. A team of Smartline community champions get together and divvy up the fund between the many charities the team proudly supports. Since starting this initiative, the team has donated more than $2.5m to charities around Australia. In FY20, Smartline’s Community Fund donated just shy of $150,000 to local charities nominated by the state charity committees. Find out more about Smartline’s commitment to charities and communities:
smartline.com.au
45 | REA Group Social
Community investment continued
Homelessness – the numbers and stories panel
In the lead up to Homelessness Week 2019, we hosted a panel discussion at REA Group’s GKO with representatives from our charity partners including Andrew D’Arcy from Launch Housing, Maryam Clarkson from Orange Sky Australia and Louise Gray from The Big Issue.
In addition to our charity partner representatives, our panel included people with a lived experience of homelessness, who had received support from our charity partners, including Annie (Launch Housing, Danni (The Big Issue) and John (Orange Sky).
Panelists shared their experiences REA Group supported Orange Sky’s first Orange Sky Australia working with people who were at risk national fundraiser, The Sudsy Challenge in of, or experiencing, homelessness, as REA Group has provided financial and in- FY20, raising more than $5,000 in support well as what it was like to experience kind support to Orange Sky Australia since of people who are homeless. REA Group homelessness for the first time over 2017. The mobile laundry and shower has signed up to participate in The Sudsy the age of 60. The role mental health services run by Orange Sky volunteers Challenge again in FY21. around Australia provide people who are plays in homelessness was discussed homeless with the opportunity to wash and the audience learned what it their clothes and have a hot shower. Orange Sky Australia was like to live in a car. Importantly, panelists shared some practical ways Our support of Orange Sky in FY20 and realestate.com.au people can help someone who is resulted in: customer golf event homeless and also corrected some common misconceptions. The realestate.com.au team hosted 19,200 kg of laundry a golf day with local customers on By providing opportunities for the Gold Coast to raise money for our people to learn more about Orange Sky Australia. The day raised homelessness, we hope to play a 960 safe warm showers more than $11k for Orange Sky, role in changing perceptions about which enabled 38 volunteer shifts, homelessness, so our people can 1,920 hours of conversation and provided Orange Sky friends play a role in creating positive change between Orange Sky volunteers with access to free laundry, warm around this issue. and people experiencing showers and genuine conversation. homelessness
800 Orange Sky volunteers supported
240 Orange Sky shifts supported
More than 4,000 people experiencing homelessness supported
46 | REA Group Social
International Committee The Women’s Subscription of the Red Cross (ICRC) Enterprise (WSE) and International Women’s Day
REA Group partnered with The Big Issue for International Women’s Day 2020, by hosting a ‘Big Shift’ in our Richmond headquarters. We had 10 WSE employees teach more than 100 REA Group employees how to pack REA Group Asia has provided financial copies of The Big Issue and send them support to the ICRC since 2017. In FY20, off to friends, family and stakeholders. the ICRC helped more than 34 million people access clean water, proper The REA Group team was also sanitary facilities and offered other fortunate enough to hear from The Big assistance for improving their living Issue Editor and a number of the WSE conditions. In the same period, the ICRC team who shared their stories. facilitated 1.4 million phone calls and 141,590 Red Cross messages between loved ones separated by conflict. ICRC team members visited 1,274 places of detention in order to secure decent treatment and conditions for more than a million detainees.
The Big Issue
REA Group has supported The Big Issue since 2014. Our subscription to 100 copies of The Big Issue each fortnight provides employment for vulnerable and disadvantaged women through the Women’s Subscription Enterprise.
Our CEO, Owen Wilson, also teamed up with Big Issue Vendor Phil for the second year running to support the CEO Selling campaign, an initiative that shines a light on homelessness and disadvantaged Big Issue Vendors who are working hard to change their lives. Phil now sells The Big Issue out the front of REA Group’s Richmond headquarters each fortnight.
100 copies of The Big Issue 47 | REA Group subscribed to each fortnight Social
Community investment continued
Because We Care – Australia
Our Because We Care program has been running since 2014, and provides our people with an opportunity to give back to local grassroots organisations and charities important to them. We do this through our Matched Payroll Giving, Employee Community Grants, Volunteer Bank and Community Café. You can find out more about each of these programs on our corporate website:
community engagement.
FY20: $252,546 (AUD) in combined employee and company matched donations
FY20: 43% of eligible employees are now signed up to the program
$747,005 (AUD) in combined employee and company-matched donations since the program began in 2014 147 days volunteered (FY20) (828 days since 2014) 1,119 hours volunteered (FY20) (6,292 hours since 2014)
FY20: 38 grants distributed
FY20 grant total: $37,575 (AUD)
311 grants distributed since 2014
$371,834 (AUD) grants distributed since 2014 $74,875 $266,974 Community Café donations Total Community Café donations (AUD) (FY20) since July 2017 (AUD)
The Community Café was temporarily closed in February 2020 due to COVID-19
48 | REA Group Social
Community investment continued
Employee Community Grants an Employee Community Grant to support Edmund Rice the programs they run. He was successful in applying for a $999 grant, which saw Community Services 19 rain suits and 21 pairs of gumboots Little tiny gumboots for tiny little feet. purchased for the centre. The gumboots That’s what the Edmund Rice Community and rain suits enabled the community Services team in Mt Atkinson needed centre to extend its outdoor programs, to support newly arrived migrant and playgroups and holiday programs, refugee families in the local community. promoting better mental and physical REA Group’s Melbourne-based health as well as the social benefits for the procurement specialist Phil Villani’s partner toddlers and families participating. works with the Mt Atkinson community centre, so he decided to apply for
Fundraising Movember
Melbourne-based Account Manager, Nick Leggatt, has participated in Movember as part of the REA Super Mo Bros team for the last few years by growing a moustache to help raise funds and awareness for Movember Australia, a charity that champions men’s health. Suicide is the single biggest killer of males under 45 in Australia, with six men taking their own life every day. Sadly, a few years ago Nick’s younger brother Matt was one of them. Nick remembers Matt as a quiet and kind young man – a father, a husband and only 26 years old. Nick’s family didn’t know that Matt was struggling with his mental health, so charities like Movember are vital in helping to raise awareness and start conversations that can help save lives. With donations from friends, family and colleagues, and with a large dose of help from REA’s Matched Giving and Community Café, Nick ended up raising $18,884 on his personal Movember fundraising page, which made him the sixth highest individual fundraiser in the country in 2019. The REA team Nick was a member of raised a total of $28,998, making the REA Super Mo Bros the top team in the Australian ‘tech’ category.
$28,998 Raised by Nick and the REA Super Mo Bros for Movember in 2019 49 | REA Group Social
Community investment continued
FY20 Because We Care Asia engagement and impacts
Our Because We Care Asia program launched in 2018, providing our people with the opportunity to give back to charities through Matched Giving and volunteering. Employees nominated and voted in one Matched Giving charity partner and three Volunteer charity partners in each country.
REA Group Asia donated to three charities leading the local response to supporting vulnerable people throughout COVID-19, including:
Hong Kong Red Cross – HK $13,625
Mercy Malaysia – RM7,613
UNICEF Thailand – THB$56,933
The Because We Care Asia program is driven by a network of Community Champions across Asia. The Community Champions meet monthly to share ideas to engage team members in Matched Giving and Volunteering.
HK Paws Foundation – HK$5,229
Hospis Malaysia – RM5,150
Thai Red Cross Society – THB6,000
Indonesia – ACT – IDR 2.180.700
14% of the team in Asia used their Volunteer leave
50 | REA Group Environment
Environment
Reducing our impact on the environment
51 | REA Group Environment
Climate change
At REA Group, we REA Group’s FY20 carbon footprint recognise that climate In FY20, we engaged an independent sustainability consultancy to map REA Group’s carbon change is a serious footprint. REA Group’s total quantified Scope 1, 2 and 3 emissions for FY20 were 5,607 tonnes of carbon dioxide equivalent (tCO2e), broken down as follows: global issue that will touch on almost all Scope 1 Scope 2 Scope 3 aspects of our society and economy
We’re a digital advertising business, speicialising in property. We recognise that carbon emissions from the property sector, including the construction and operation <0.1% 17% 83% of residential and commercial buildings, Direct emissions Indirect emissions Indirect emissions contribute to global carbon emissions. produced by fuel generated by the produced by REA electricity consumed Group but not owned For REA Group to deliver on our purpose burned by REA Group’s and purchased by REA or controlled by REA to change the way the world experiences back-up generator. Group at our offices. Group. For example: property, we need to account for climate Flights, base building change in our own operations, as well as electricity, natural consider the broader property sector’s gas usage and tenant share of global greenhouse gas emissions. electricity.
FY20 carbon footprint by source FY20 carbon footprint by scope -e 1,453 2 1,018 903 640 504 346 205 175 148 88 61 57 5.1 2.8 0.5 GHG emissions (tonnes CO Scope 1 0.5 0% Taxis Fuel Flights Hotels Waste Paper Water Fuel cards Franchises and fuel Data centre Scope 2 960.1 17% Base building Data centres electricity Sta commute Electricity use in o ce tenancies Upstream electricity Scope 3 4,441.2 83% (electricity and gas)
52 | REA Group Environment
Climate change continued
Climate Change Policy Carbon neutral Science-based REA Group’s carbon footprint, emission In FY21, REA Group will offset the aligned targets reduction programs and science-based company’s FY20 carbon footprint
Science Based Targets (SBTs) provide aligned targets have been published in of 5,607 tCO2e, to become certified guidance on how to limit dangerous our Climate Change Policy. It details our carbon neutral. climate change, in line with the understanding of the risks and impacts, goals of the Paris Agreement, how we are taking responsibility for our which is to limit global warming to own footprint, as well as how we plan to Sustainability working well-below 2°C above pre-industrial use our platforms to engage customers group levels and pursue efforts to limit and consumers to support them in making Following on from the success of warming to 1.5°C. sustainable changes, reduce their carbon emissions and save money. the environmentally focused ‘Bin REA Group is committing to the There Done That: Check it Before following science-based aligned REA Group’s Climate Change Policy you Wreck It’ REAio (hack day) team targets: was endorsed by REA Group’s CEO, in FY19, a number of employees Owen Wilson and REA Group’s Board. formed the Sustainability Working Group. The Group’s objective is to Climate Change Policy reduce waste in our offices and raise E-waste awareness among employees about 42% how we can be more sustainable in reduction in Scope 1 and 2 At REA Group, we define e-waste as our everyday lives. emissions by 2030 any item with a plug, battery or power cord that is no longer working or The team meets fortnightly and wanted, as well as cartridges. In FY20, has introduced ‘Trash Talk Tuesday’ a cross-functional team formed to where they share different ideas for benchmark the current practice relating employees to reduce their waste or dispose of waste more sustainably, to REA Group’s e-waste. Its purpose is to 25% either in the office or at home. identify opportunities to reduce e-waste reduction in Scope 3 and ensure it is recycled appropriately to emissions by 2030 The Sustainability Working Group reduce environmental contamination in ran a survey in FY20 for employee landfill. feedback about waste disposal, In FY21, we will be developing which has led to improvements in the a roadmap for achieving these E-waste policy Melbourne office’s recycling program, science-based aligned targets and such as introducing a soft plastics providing an update in our FY21 Sustainable buildings recycling bin into the mailroom. The Sustainability Report. REA Group provides data to CitySwitch, Group arranged for a guest speaker a program for commercial office tenants to talk with our team about how to around Australia to improve waste and COVID-19 be more sustainable in our homes. energy usage. They’ve also arranged for locks on With the impacts of COVID-19 on We are given an indicative rating from the coffee grounds bin to reduce REA Group’s GHG, we recognise the National Australian Build Environment contamination risks, before they’re REA Group’s FY20 carbon footprint is Rating System (NABERS), which is used to recycled through an external less than it would be in a non-COVID year. measure building efficiencies and identify organisation called Reground. Under business as usual circumstances, where improvements can be made. it is estimated that REA Group’s FY20 In FY21, the team is planning carbon footprint could be approximately REA Group also provides data to the to introduce recycling stations 21% greater than REA Group’s actual FY20 National Greenhouse and Energy in each office around Australia, carbon footprint, which is equivalent to Reporting Scheme (NGERS) through before expanding to our teams approximately 6,759 tonnes of carbon News Corp, to help inform government in Asia. The station will include dioxide equivalent (tCO2e). policy and meet Australia’s international bins for plastics, glass, paper, soft reporting obligations. plastic, batteries, light globes and toothbrushes.
53 | REA Group Global Reporting Initiative (GRI) FY20 content index
REA Group’s FY20 Sustainability Report covers the period from 1 July 2019 to 30 June 2020, and has been prepared in accordance with the GRI Standards: Core option. The GRI content index specifies each of the GRI Standards used and lists the location of all disclosures
GRI Standard Number Disclosure REA Group FY20 response and remarks Page number 102-01 Name of the organisation FY20 Sustainability Report: About REA Group Page 3 102-02 Activities, brands, products, FY20 Sustainability Report: About REA Group Page 3 and services 102-03 Location of headquarters FY20 Sustainability Report: About REA Group Page 3 102-04 Location of operations FY20 Sustainability Report: About REA Group Page 3 102-05 Ownership and legal form REA Group Ltd is a multinational digital advertising business specialising in property and listed on Australian Securities Exchange (ASX:REA)
REA Group Investor fact sheet – Business Description 102-06 Markets served FY20 Sustainability Report, About REA Group Page 3 102-07 Scale of the organisation Total number of employees: 1,479: Diversity and Inclusion Page 30 Total number of operations: About REA Group Page 3 FY20 Revenue: $820.3m
REA Group corporate website – ASX announcement, 7 August 2020
54 | REA Group GRI FY20 content index continued
GRI Standard Number Disclosure REA Group FY20 response and remarks Page number 102-08 Information on employees a) Total number of employees by employment contract, by gender and other workers Male Female Grand total Fixed term 13 34 47 Permanent 725 707 1,432 Grand total 738 741 1,479
b) Totally number of employees by employment contract, by region
Fixed term Permanent Grand total Australia 36 1,084 1,120 China 5 6 11 Hong Kong 0 63 63 Malaysia 6 247 253 Thailand 0 32 32 Grand total 47 1,432 1,479
c) Total number of employees by employment type, by gender
Full-time Part-time Grand total Female 651 90 741 Male 724 14 738 Grand total 1,375 104 1,479
d) Approximately 13% of the total individuals recorded in REA Group’s Human Resources Information System (HRIS) Workday are contingent workers who are not considered employees. Some of the contingent workers are specialist contractors who only perform small, but highly specialist tasks from time to time. Other are ThoughtWorks software developers.
e) No seasonal change.
f) The data is sourced from REA Group’s HRIS system using actual numbers at the end of the reporting period noted (31/06/2020). 102-09 Supply chain FY20 Sustainability Report: Supplier Due Diligence measures Page 28 102-10 Significant changes to the FY20 Sustainability Report: Organisational structure – Australia Page 34 organisation and its supply FY20 Sustainability Report: Investment in 99 Group Page 34 chain 102-11 Precautionary Principle or FY20 Sustainability Report: Risk Management Page 15 approach Corporate Governance Statement 2019 102-12 External initiatives REA Group has also voluntarily participated in the 2020 Corporate Sustainability Assessment (CSA), CDP 2020 and CitySwitch. We also provide data to News Corp for the National Greenhouse and Energy Reporting (NGER) Scheme and receive indicative ratings from the National Australian Built Environment Rating System (NABERS) to measure building efficiencies.
REA Group receives a public annual ESG Rating from Morgan Stanley Capital International (MSCI) – REA Group LTD.
55 | REA Group GRI FY20 content index continued
GRI Standard Number Disclosure REA Group FY20 response and remarks Page number 102-13 Membership of associations REA Group contributes to supporting the prosperity of the real estate industry through our relationship with the Real Estate Institutes of New South Wales, Victoria, Queensland and Northern Territory, and Real Women in Real Estate.
Our commitment to responsible and sustainable business practices extends to our commitment to focus on increased tax transparency and the adoption of the Board of Taxation’s Voluntary Tax Transparency Code. We are a member of Federal Treasury’s Digital Tax Working Group and the Corporate Tax Association.
Our Smartline business is a member of the MFAA National Aggregators Forum, which helps to shape and influence the industry to improve customer outcomes. Its also a member of the MFAA’s Combined Industry Forum, which aims to drive better customer outcomes through improved governance and remuneration practices in mortgage broking.
REA Group is a proud member of the ADMA, which ensures our teams stay up to date with the changing landscape of data, digital marketing and compliance.
FY20 Sustainability Report – Community investment Page 45
REA Group corporate website – Community Engagement 102-14 Statement from senior FY20 Sustainability Report: CEO message Page 5 decision-maker 102-15 Key impacts, risks and FY20 Sustainability Report: Risk management Page 15 opportunities
102-16 Values, principles, standards Values: Corporate Governance Statement 2019 Page 3 and norms of behavior Principles, standards and norms of behaviour: Code of Conduct Page 1–6
102-17 Mechanisms for advice and REA Group Whistleblower Policy concerns about ethics
102-18 Governance structure Corporate Governance Statement 2019 Page 2
102-19 Delegating authority Corporate Governance Statement 2019 Page 2
102-20 Executive-level responsibility Corporate Governance Statement 2019 Page 2 for economic, environmental and social topics
102-21 Consulting stakeholders on Corporate Governance Statement 2019 Page 2 economic, environmental and social topics
102-22 Composition of the highest Corporate Governance Statement 2019: governance body and its Composition of highest governance body Page 2 committees Committees Page 6-7
102-23 Chair of the highest Corporate Governance Statement 2019: The Board Page 4 governance body
56 | REA Group GRI FY20 content index continued
GRI Standard Number Disclosure REA Group FY20 response and remarks Page number
102-24 Nominating and selecting the Corporate Governance Statement 2019: highest governance body 5.1, Board skills matrix Page 5 5.2 Succession planning Page 6 5.3 Director induction and appointment Page 6 5.4 Independence of Directors Page 6
102-25 Conflicts of interest REA Group Code of Conduct Page 4
102-26 Role of highest governance Corporate Governance Statement 2019: body in setting purpose, Values Page 3 values and strategy Roles and responsibilities of the Board Page 4 102-27 Collective knowledge of FY20 Annual Report, Director’s Report: Meetings of Directors Page 28 highest governance body Human Resources Committee Charter 2d, Social, environmental and ethical sustainability Page 3
102-28 Evaluating the highest Human Resources Committee Charter governance body’s Board composition, remuneration and performance Page 1–2 performance Remuneration-related matters and succession planning for senior executives Page 2
102-29 Identifying and managing Human Resources Committee Charter: economic, environmental Social, environmental and ethical sustainabilit Page 3 and social impacts Risk Management Policy: The Risk Management Framework Page 1–2
FY20 Sustainability Report: Materiality assessment Page 6
102-30 Effectiveness of risk Risk Management Policy: management processes Accountabilities Page 5
Audit, Risk and Compliance Committee Charter: Functions and Responsibilities Page 2–4 102-31 Review of economic, FY20 Annual Report: Director’s Report – Meetings of Directors Page 28 environmental and Audit, Risk and Compliance Committee meets quarterly to receive social topics an update on REA Group’s Strategic Risk Profile and meets annually to participate in a Risk Day
Human Resources Committee Charter: Social, environmental and ethical sustainability Page 3
102-32 Highest governance body’s Human Resources Committee Charter: role in sustainability reporting The Human Resources Committee and other Board members approve REA Group’s annual Sustainability Report, as outlined in d) Social, environmental and ethical sustainability Page 3
102-33 Communicating critical Risk Management Policy concerns Accountabilities Page 5
57 | REA Group GRI FY20 content index continued
GRI Standard Number Disclosure REA Group FY20 response and remarks Page number
102-35 Remuneration policies Human Resources Committee Charter Board composition, remuneration and performance Page 1 Remuneration-related matters and succession planning for senior executives Page 2
Corporate Governance Statement 2019: 7. Remuneration and evaluation of senior executives Page 8
FY20 REA Group Annual Report, Remuneration Report: 3. Executive remuneration philosophy and framework Page 42–55 5. Executive remuneration components Page 44–45 6. Non-Executive Director remuneration Page 49 7. Shareholdings of key management personnel and Board of Directors Page 55 102-36 Process for determining FY20 Annual Report: Remuneration Report Page 42–55 remuneration FY20 Sustainability Report: Workplace Gender Equality Report Page 32 Incentives and Remuneration Review Process Page 35 Page 2 Board Charter: Functions and responsibilities 102-37 Stakeholders’ involvement in FY20 Sustainability Report: Employee Engagement survey Page 39 remuneration 102-40 List of stakeholder groups • Shareholders • Employees • Customers • Consumers FY20 Sustainability Report:
• Associations, see GRI Standard Number 102-13, Membership of associations Page 56 • Suppliers, see Sustainable Procurement Page 26 • Charity partners, see Community investment Page 45 102-41 Collective bargaining REA Group does not have any employees on collective agreements bargaining agreements.
58 | REA Group GRI FY20 content index continued
GRI Standard Number Disclosure REA Group FY20 response and remarks Page number 102-42 Identifying and selecting REA Group’s stakeholders are defined as the key groups that: stakeholders • enable REA Group to run its business • purchase our products and services • use our products and services • benefit financially from our operations • contribute to the growth and development of the industries we deliver products and services to
REA Group’s Supplier Code of Conduct outlines what is required to be a supplier of REA Group and compliance with the Code.
FY20 Sustainability Report: Supplier Due Diligence measures outline how REA Group ensures its supply chain complies with the Supplier Code of Conduct Page 28 REA Group’s Media advertising terms and conditions outline advertisers and content we do not publish Page 25 102-43 Approach to stakeholder FY20 Sustainability Report: engagement Employee Engagement survey Page 39 Pulse surveys Page 38 Customer Satisfaction Page 42 Supplier Due Diligence Measures Page 28 Global Kick Off Page 41 Tech Kick Off Page 37 Leadership conference Page 37 Town Halls Page 37 Global Communications Platform Page 41
Investor and Analyst presentations
REA Group Investor Centre, ASX announcements
REA Group blog
realestate.com.au/news 102-44 Key topics and concerns FY20 Sustainability Report: raised Agent Match Page 22 iOS app log out Page 23 Employee Engagement Australia – ‘Communication from executive leaders In REA is authentic and transparent’ Page 39 Employee Engagement Asia – ‘The bonus structure fairly recognises my efforts and achievements’ Page 40 102-45 Entities included in the FY20 Annual Report, Financial Statements: consolidated financial Consolidated Income Statement Page 57 statements Consolidated Statement of Comprehensive Income Page 58 Consolidated Statement of Financial Position Page 59 Consolidated Statements of Changes in Equity Page 60 Consolidated Statement of Cash Flows Page 61 Notes to the Consolidated Financial Statements Page 62–119 102-46 Defining report content and FY20 Sustainability Report: topic Boundaries Materiality assessment Page 6
59 | REA Group GRI FY20 content index continued
GRI Standard Number Disclosure REA Group FY20 response and remarks Page number 102-47 List of material topics FY20 Sustainability Report: Materiality assessment Page 7 102-48 Restatements of information FY20 Sustainability Report: Materiality assessment Page 6 102-49 Changes in reporting FY20 Sustainability Report: Materiality assessment Page 6 102-50 Reporting period REA Group’s FY20 Sustainability Report covers the period from 1 July 2019–30 June 2020.
102-51 Date of most recent report REA Group’s FY19 Sustainability Report was published on 15 November 2019, covering the 1 July 2018 – 30 June 2019 period (FY19). 102-52 Reporting cycle REA Group’s Sustainability Report is published annually 102-53 Contact point for questions FY20 Sustainability Report: regarding the report CEO message Page 5 Feedback invitation Page 64 102-54 Claims of reporting in FY20 Sustainability Report: accordance with the GRI Global Reporting Initiative (GRI) FY20 content index Page 54 Standards 102-55 GRI content index FY20 Sustainability Report: Global Reporting Initiative (GRI) FY20 content index Page 54 102-56 External assurance FY20 Sustainability Report: KPMG limited assurance opinion Page 62 103-1 Explanation of the material FY20 Sustainability Report: topic and its boundary Materiality assessment Page 7 103-2 The management approach FY20 Sustainability Report: and its components Materiality assessment Page 6 Key risk exposures Page 17 103-3 Evaluation of the FY20 Sustainability Report: management approach KPMG limited assurance opinion Page 62 Employee Engagement Page 38 Customer satisfaction Page 42
REA Group closely reviews its annual MSCI ESG rating, addressing opportunities to evolve ESG activity and reporting in the following year’s Sustainability Report. REA Group’s 2020 MSCI ESG rating increased to a BBB. REA Group achieved a ‘Detailed’ level of ESG reporting from the Australian Council of Superannuation Investors (ACSI) in 2020, putting REA on par with the ACSI Media and Entertainment sector leader.
REA Group responded to the Carbon Disclosure Project (CDP) and SAM Corporate Sustainability Assessment (CSA) in 2020. The CDP and CSA ratings will be closely reviewed to identify opportunities to evolve current ESG activity and reporting. 403-01 Occupational health and REA Group has not implemented an occupational health and safety safety management system management system.
FY20 Sustainability Report: Workplace health, safety and wellbeing Page 33
60 | REA Group GRI FY20 content index continued
GRI Standard Number Disclosure REA Group FY20 response and remarks Page number 403-02 Hazard identification, risk FY20 Sustainability Report: assessment, and injury Workplace health, safety and wellbeing Page 33 investigation 403-03 Occupational health service FY20 Sustainability Report: Workplace health, safety and wellbeing Page 33 403-04 Worker participation, FY20 Sustainability Report: consultation and Workplace health, safety and wellbeing Page 33 communication on occupational health and safety 405-01 Diversity of governance FY20 Sustainability Report: bodies and employees Diversity and inclusion Page 30 405-02 Ratio of basic salary and Average base pay remuneration of women to Catagory F M Ratio men Executives $586,377 $616.838 0.95:1 Management Level $ 186,797 $191,124 0.97:1 Management Level (base salary & cash incentives) $199,599 $214.572 0.93:1 Non-Management Level $101,302 $113,834 0.89:1
418-01 Substantiated complaints a) i) Two complaints received from outside parties and substantiated by the concerning breaches of organisations. customer privacy and losses ii) No complaints from regulatory bodies. of customer data b) Two identified leaks, thefts or losses of customer data.
2.1. The incidents referenced above relate to matters that occurred in prior years, but were detected, investigated and resolved in FY20.
61 | REA Group Independent Limited Assurance Report to the Directors of REA Group Limited
Conclusion
Based on the evidence we obtained from the procedures performed, we are not aware of any material misstatements in the Information Subject to Assurance, which has been prepared by REA Group Ltd (REA Group) in accordance with the Global Reporting Initiative (GRI) Standards and basis of preparation disclosed in the REA Group’s Sustainability Report 2020 for the year ended 30 June 2020 (Sustainability Report 2020).
Information Subject to Assurance
Information Subject to Assurance as presented in the Sustainability Report 2020 and available on REA Group’s website at www.rea-group.com, includes:
Information Subject to Assurance Page/s Supplier due diligence measures 28 The following People data across Australia and Asia, including gender diversity of senior leadership: 30
• REA Group’s People across Australia and Asia • REA Group’s senior leaders across Australia and Asia Approach to stakeholder engagement and response results from the Employee Engagement Survey FY20 39 to 40 Cyber security disclosures 19 to 21
Criteria Used as the Basis of Reporting
The Information Subject to Assurance has been prepared in accordance with the GRI Standards and basis of preparation disclosed in the Sustainability Report 2020 (the criteria).
Basis for Conclusion
We conducted our work in accordance with the Australian Standard on Assurance Engagements ASAE 3000 Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (Standard). In accordance with the Standard we have:
• used our professional judgement to plan and perform the engagement to obtain limited assurance that we are not aware of any material misstatements in the Information Subject to Assurance, whether due to fraud or error; • considered relevant internal controls when designing our assurance procedures, however we do not express a conclusion on their effectiveness; and • ensured that the engagement team possess the appropriate knowledge, skills and professional competencies.
Summary of Procedures Performed
Our limited assurance conclusion is based on the evidence obtained from performing the following procedures:
• enquiries with relevant REA Group personnel to understand the internal controls, governance structure and reporting process of the Information Subject to Assurance; • reviews of relevant documentation including REA Group’s policies and management reporting to the REA Group Board; • analytical procedures over the Information Subject to Assurance; • walkthroughs and testing of the Information Subject to Assurance to source documentation on a sample basis; • evaluating the appropriateness of the criteria with respect to the Information Subject to Assurance; and • review of the Sustainability Report 2020 in its entirety to ensure it is consistent with our overall knowledge of assurance engagement.
©2020 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.
62 | REA Group Independent Limited Assurance Report to the Directors of REA Group Limited continued
How the Standard Defines Limited Assurance and Material Misstatement
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for a reasonable assurance engagement. Consequently the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.
Misstatements, including omissions, are considered material if, individually or in the aggregate, they could reasonably be expected to influence relevant decisions of the Directors of REA Group.
Use of this Assurance Report
This report has been prepared for the Directors of REA Group for the purpose of providing an assurance conclusion on the Information Subject to Assurance and may not be suitable for another purpose. We disclaim any assumption of responsibility for any reliance on this report, to any person other than the Directors of REA Group, or for any other purpose than that for which it was prepared.
Management’s responsibility Our Responsibility
Management are responsible for: Our responsibility is to perform a limited assurance engagement in relation to the Information Subject to Assurance and to issue an • determining that the criteria is appropriate to meet their needs assurance report that includes our conclusion. and the needs of other intended users; • preparing and presenting the Information Subject to Assurance in Our Independence and Quality Control accordance with the criteria; and We have complied with our independence and other relevant • establishing internal controls that enable the preparation and ethical requirements of the Code of Ethics for Professional presentation of the Information Subject to Assurance that is free Accountants (including Independence Standards) issued by the from material misstatement, whether due to fraud or error. Australian Professional and Ethical Standards Board, and complied with the applicable requirements of Australian Standard on Quality Control 1 to maintain a comprehensive system of quality control.
KPMG Julia Bilyanska Director Melbourne 12 October 2020
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