Corporate Responsibility and Sustainability Report 2008 1 About This Report

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Corporate Responsibility and Sustainability Report 2008 1 About This Report Corporate Responsibility and Sustainability Report 2008 1 July 2007 – 30 June 2008 message our highlights from CR&S and priorities welcome to our corporate committee responsibility and 04 06 sustainability report what makes understanding good our stakeholders governance 10 14 our commitment engaging in About us to our people the marketplace 3 Stockland is one of Australia’s leading 4 1 diversified property groups with total 2 assets of over $14.7 billion and operations in Australia and the United Kingdom. 18 30 We’re active in retail, office and industrial 6 7 property, as well as residential communities, apartments and retirement living. our commitment our commitment to building to the 5 At 30 June 2008 we had over $900 million communities environment assets under management in Australia and $2.3 billion of assets under management in the UK and continental Europe. We are a top 50 Australian Securities Exchange listed Company 42 48 (ASX: SGP) and have achieved 26 consecutive years of growth in operating earnings. Diversity by asset class and geography independent message from underpins our continued performance. assurance Stockland UK Our capability is strengthened by having a statement Where we are Managing ‘one company’ approach but with the strengths Director 1 Sydney, Australia 2 Melbourne, Australia of a diversified business. 3 Brisbane, Australia Our vision is to create a world class property 64 72 4 Perth, Australia group. We see that our purpose is to deliver 5 London, UK enduring value for our stakeholders through 6 Glasgow, UK innovative, customer-focussed property memberships, GRI index 7 Edinburgh, UK solutions. awards and ratings 74 76 Our business model Our responsibilities to our Our strategic themes: We are an owner, manager, developer One integrated platform ensures stakeholders shape our mission: • Optimise performance from existing and fund manager of assets: synergies, economies of scale • We recognise that our people are businesses • Owner – We own shopping centres, and knowledge transfer across our most important asset • Capital Partners to fund growth office buildings, industrial sites and our diverse and global portfolio. • We strive to exceed our customers’ and leverage our skills retirement villages. As a building owner, we have a substantial level of control over the expectations • Seek synergies from our scale environmental performance of these assets. • We aim to provide superior returns to our and diversification • Manager – We also manage shopping investors through outstanding performance • New complementary business initiatives centres, office buildings and industrial sites. • We respect our relationship with authorities • High performing people and culture. Typically, a property manager’s level of UK Retail and Government During the year, a number of structural control over the environmental performance • We create equitable, rewarding of assets is limited to influence. Nearly all laborati ol on changes have taken place responding Retirement C partnerships by being clear about assets we manage, however, are either Office to changing market conditions. Living Integrated our expectations and sharing innovation mixed-use owned by us or are placed in funds capability and knowledge Group Design and Delivery was launched managed by us, meaning that we have S s in early 2008 leading design and product greater ability to influence the performance ynergie • We aim to understand our role in the Apartments Industrial community – where we create places innovation across the organisation, with the of these assets. aim of achieving excellence in project design Residential for new and existing communities, and • Developer – We are developing over Communities in the community beyond, where we have and delivery, supporting the execution of 90 residential projects nationally, as well an impact. successful mixed-use projects. At the close as new and substantially refurbished of the year, the retail and office and industrial retail, office and industrial projects. As a businesses were consolidated into a single developer, we have significant capacity to group, Commercial Property. At the same shape environmental and social outcomes. time, our Capital Partners business was However, our ability to affect supply chain decentralised into our operating businesses to decisions can be limited as we rarely act more effectively leverage our property skills. as the principal contractor (builder). • Fund manager – We have $900 million in assets under management. Typically, the fund manager has some scope to influence social and environmental performance through directing the property Doing the right thing as a property owner, manager, developer manager. We are able to exercise a reasonable level of control as we typically and fund manager through the eyes of our stakeholders, is manage the assets in our property funds. about dealing with risk, seeking opportunities and creating long-term value for our investors. Stockland Corporate Responsibility and Sustainability Report 2008 1 about this report This report reflects our performance To identify our most material issues, shape during our financial year, 1 July 2007 the content of this report and support the – 30 June 2008 (FY08). assurance process, we appointed an employee editorial panel. We’ve also It explores how we see our responsibilities reviewed this report with our CR&S Board to our stakeholders and the environment, it Committee and the CR&S Employee sets out our Corporate Responsibility and Committee. Together with our 2008 Financial Sustainability (CR&S) Strategy, it looks at Report and our 2008 Shareholder Review, how we work with people within and beyond this report gives a full account of our our business, and finally we discuss how environmental, social, governance and we have responded to interests, risks and financial performance for the year. opportunities over this time. We highlight our achievements, as well as share our ongoing We have chosen to submit our report to and emerging challenges for our business. assurance again this year, applying the AA1000 Assurance Standard’s principles The report this year is being produced of materiality, responsiveness and in three forms: completeness. • CR&S Summary Review – distributed We have also reported against Global to investors Reporting Initiative (GRI) criteria, complying • CR&S Report – this detailed report with the GRI application level B+ (third party is available for download from checked). We have applied GRI criteria to www.stockland.com as a PDF document our Australian operations only. Our response • CR&S HTML – an interactive online to GRI criteria varies in response to our level version of our report to be available at of control as owner, manager, developer www.stockland.com and/or fund manager of assets. To best reflect our responsibilities in this This year, our report also includes our report, we have engaged our employees Retirement Living business – acquired in and a range of external stakeholders with early 2007. Stockland UK, also acquired in specific interests and expertise in each of early 2007 has reported separately at the the dimensions addressed by our close of this document. We propose to more CR&S strategy. fully integrate Stockland UK into our report next year and apply GRI criteria across our global operations. 2 Stockland Corporate Responsibility and Sustainability Report 2008 Environme our approach The nt ur Stakeholde O rs Suppliers and Partners Investors to corporate responsibility Our People Government Customers and sustainability Community We take the view that doing the right CR&S Board Committee Management The Committee is chaired by the GM thing as a property manager, owner and We recognise that a sustainable future for In order to integrate sustainability practices CR&S and current members include our developer, is about dealing with risk, seeking our business depends upon the sustainability into our business and provide leadership National Sustainability Managers as well opportunities and creating long-term value of the communities, economy, society and on CR&S matters, we have specialist as representatives working in Government for our investors. And it’s about balancing environment in which we operate. The sustainability managers across the organisation. Relations, Procurement, Health, Safety and purpose of the CR&S Board Committee is Environment, Compliance, Audit and Risk, the needs and interests of our stakeholders. These roles over the past year included: to assist the Board in overseeing Stockland’s Strategic Urban Planning and Stakeholder We define sustainable development in • General Manager (GM), CR&S commitment to operating its businesses Engagement. the widest sense, supporting the UN’s ethically, responsibly and in a sustainable way. • General Manager, Health, Safety Brundtland definition as ‘development and Environment (HSE) The Committee meets at least four times Areas of focus that meets the needs of the present annually. • National Sustainability Managers for Our CR&S Strategy is driven by our without compromising the ability of future the Retail, Residential and Office and relationships with our various stakeholders generations to meet their own needs.” 1 The following Directors were members of Industrial businesses. and our interaction with our environment. the Committee at the close of financial year: To bring our commitment to life, we have • Mr N Greiner (Chair) – Non-Executive a comprehensive CR&S Strategy, which CR&S Employee Committee Stockland
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