Sustainability Reporting at Stockland Our FY14 Sustainability Reporting Is an Assured Account of Our Sustainability Performance

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Sustainability Reporting at Stockland Our FY14 Sustainability Reporting Is an Assured Account of Our Sustainability Performance Reporting 1 Approach 1. Sustainability Reporting at Stockland Our FY14 sustainability reporting is an assured account of our sustainability performance. It includes detailed discussion of our material sustainability issues, as well as in-depth data sets and case studies. This is the ninth year that we have publicly reported our sustainability performance. The content covers our performance over the financial year 1 July 2013 to 30 June 2014 (FY14). It follows our FY13 sustainability reporting which was published online in September 2013. Sustainability reporting forms part of a larger suite of FY14 reports, including: Annual Review - focusing on strategy, corporate governance, and our financial, social and environmental performance. (Read more about Integrated Reporting) Shareholder Review - a concise version of the Annual Review sent to securityholders Financial Report - a detailed account of our financial performance and governance, in compliance with statutory reporting requirements. Property Portfolio - details on the assets within our portfolio. Integrated Reporting In FY14 we continued our involvement in the Business Pilot Program for integrated reporting, led by the International Integrated Reporting Committee (IIRC). The Annual Review 2014 is our third report that seeks to integrate reporting on the management of our financial, social and environmental performance. For Stockland integrated reporting is a journey toward more meaningful corporate reporting and will be a process of continuous improvement, one that will provide great benefit to both the organisation and our stakeholders. Our Annual Review 2013 received the award for Best Integrated Report at the Australasian Reporting Awards. We look forward to further developing our approach and the quality of our integrated report disclosure over the coming years. Stockland Sustainability Report Reporting 2 Approach 2. Changes in FY14 We have revised our approach to Sustainability Reporting this year. To support our online sustainability report, which will focus specifically on those issues of greatest relevance to our business during the reporting period, we are releasing our Disclosures on Management Approach (DMA) series, prepared in accordance with the Global Reporting Initiative’s G4 Guidelines. The DMA series is designed to complement our annual corporate reporting by providing a detailed overview of our approach to managing key sustainability issues of significance to our business, our industry and our stakeholders. The series will be reviewed annually with performance updates and progress against targets disclosed each year, as part of our sustainability reporting process. The purpose of this revised reporting approach is threefold: 1. To enhance the transparency and accountability of our corporate reporting by providing a detailed and assured account of our approach to managing the non-financial risks and issues of significant importance to our business and to our stakeholders. 2. To provide a source of reference for our employees, business partners and other key stakeholders with regard to our non-financial performance management systems, standards and processes. 3. To streamline our annual reporting process and enable us to focus more specifically on the risks and opportunities of greatest significance within that reporting period, whilst continuing to provide assurance to our stakeholders that non- financial risks and opportunities are being effectively managed. The topics addressed in the DMA series are: Governance 1. Governance and risk 2. Stakeholder engagement Supply Chain 3. Supply chain management 4. Materials Environment 5. Energy and emissions 6. Climate resilience 7. Biodiversity 8. Water management and quality 9. Waste People 10. Employee engagement 11. Human capital development 12. Diversity and inclusion 13. Health and safety 14. Human rights Communities 15. Community investment 16. Community development 17. Community connectivity Customers 18. Customer engagement 19. Customer safety and security 20. Asset ratings and certification Stockland Sustainability Report Reporting 3 Approach 3. Materiality Process We undertake a materiality process each year to identify and prioritise those sustainability issues of greatest significance to our stakeholders and our business, and to inform the content and focus of our annual reporting. A five part materiality test is completed in accordance with the AA1000 Assurance Standard and our process is independently assured each year to ensure we are reporting the most important information required by our stakeholders to make informed judgments, decisions and actions. The process for FY14 is outlined here below. Identify Prioritise Disclose Research and engagement Workshop Disclosure Desktop research and extensive A Stakeholder Proxy Materiality Following the Materiality Workshop, a final stakeholder engagement was undertaken to Workshop was held with representatives list of material issues was generated to ascertain relevant issues and concerns as from across the business to: inform the content of our FY14 identified by: identify any additional relevant issues sustainability report. our peers of interest to our stakeholders, We aligned with GRI G4 guidelines to ensure structure and content of the online our stakeholders rank the issues of greatest company reports significance in FY14, and report prioritised disclosure of material sustainability issues, and supported our political and regulatory prioritise the issues based on their disclosure with the preparation and developments impact both on our performance and release of our DMA series which provides social and traditional on our stakeholders’ perceptions of information on all our key non-financial media our performance. issues, as per GRI specifications. The resultant list of issues informed our DMA series and served as a prompt and guidance for our Materiality Workshop. FY14 Material Issues Material issues identified Report section Demonstrating and Maintaining Industry Leadership Ensuring we are able to continuously drive sustainability performance improvements Risk and Opportunity Management Governance Actively focusing on sustainability opportunities and risks to maximise shared value Strong Stakeholder Relationships Maintaining strong relationships with our stakeholders to identify and deliver shared value Supplier Capacity and Resilience Ensuring our suppliers have the capacity and capability to meet our requirements Supply Chain Supplier Compliance Ensuring our suppliers are performing in accordance with our standards and objectives. Climate Resilience Adapting our portfolio to enhance performance and resilience in changing climatic conditions Environment Biodiversity Impact Working to enhance net biodiversity value across our developments Diversity and Inclusion Promoting a flexible, diverse and inclusive workplace People Attraction and Retention Attracting and retaining the right people to deliver on our strategic objectives Accessibility and connectivity Communities Providing physical and social infrastructure to promote the connectivity of our communities Customer Responsiveness Understanding and responding to our customers’ changing needs Customers Customer Perceptions of Safety and Security Delivering communities where residents and visitors feel safe at all times Stockland Sustainability Report Reporting 4 Approach 4. Global Reporting Initiative This year, the Global Reporting Initiative released a new standard for sustainability reporting - the GRI G4 Guidelines. As we transition to report in accordance with these new guidelines, there are some instances in this report where the information we disclose may vary slightly from previous years. The most notable difference is the application of materiality and identifying material aspects. We have endeavoured to keep our data as consistent and comparable as possible, however in some cases changes were inevitable and these have been clearly marked in the body of the report. The table below outlines the GRI Aspects that we identified as material given their alignment with the material issues identified through both our Sustainability Materiality Process and our Integrated Reporting Materiality Process. Where relevant, reference is also made to the external stakeholders* who affect, are affected by, or have a particular interest in, each aspect. Economic Environmental Labour Human Rights Society Product Responsibility Economic Materials (S,C) Employment Non-discrimination Local communities Customer health Performance (M) (M, Com, G, M) and safety (S, G, C, Energy (S,C,G) Labor/ management (G,I, S, M, C, Com) M, Com) relations Freedom of Anti-corruption Water (S, C, G, Indirect Economic association and (S,G,I,M) Product and service Com) Occupational Health Impacts (G, Com) collective bargaining labelling (S, G, C, and Safety (S,G) Public policy Biodiversity (S, G, (S, M) Com) Procurement (G, I) C, M) Training and Practices Security Practices Marketing Education Anti-competitive (S, Com) Emissions (S,G,I,M) (S, C, M) communications behavior (All) Diversity and equal (S,C,M) Effluents and waste Indigenous rights (S, opportunity (M) Compliance (G, I) (S,G, M, Com) M, Com) Customer privacy Equal remuneration Supplier (C, G, M) Land Degradation, for women and men Assessment for Contamination and Compliance (G) (M) Impacts on Society Remediation (S, Com) (CRESS) (S,G,C,M) Supplier Assessment for Grievance Products and Labour Practices (S) Mechanisms for Services (S,C) Impacts on Society
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