Vicinity Centres CCI Insight Report November 2018

LBG / New Zealand Annual Company Benchmarking Report 2018

2018 CCI Insight Report: Where to next? A message from the LBG Team

Thank you for participating in the LBG Australia & New Zealand benchmarking for 2018. Your company report, together with the results of the 2018 LBG benchmark contains valuable information that can be used in a variety of ways. The LBG methodology allows a company to form a reliable and holistic view of its community investment, from what is contributed, what happens and what changes as a result.

Companies are increasingly under pressure to justify expenditure and LBG data makes it easier to inform key stakeholders about your social investment. LBG data is easily customisable for each target audience and the integrity is verified using an internationally recognised framework, used by more than 220 of the world's leading companies.

The dashboard page of this report acts as a summary of your results for you to use when sharing your results internally as well as a source of pointers where you could evolve your current program.

This report details your corporate community investment contributions for 2018, benchmarked against companies from your sector and against the Australia & New Zealand member companies who have participated this year. Further comparisons can be made through the self-benchmarking feature of LBGOnline.

For the first time this year you will also have access to global LBG data to make further benchmarking comparisons with peers and competitors from around the world. Ask the team should you need help accessing this data.

Finally, in 2019 LBG will add two new routes to impact extending the LBG framework to include business innovation and social procurement.

We would like to thank you for your dedication and participation throughout this benchmarking process and we look forward to working with you in 2019.

Kind Regards, The LBG Team.

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

Vicinity Centres - CCI Insight Report Where to from here?

Vicinity Centres has contributed $2,173,712 made up of cash, volunteer time, in-kind goods or services and the management costs of running their programs. This investment in the community has resulted in the following outputs and impacts. (All $ figures are in AUD)

Employees Contribution as % of total Contribution as % of Contribution per Funds Leveraged Volunteering revenue pre-tax profit Employee

12.43% 0.16% 0.18% $1,850 $379k

Inputs Outputs Impacts What’s Contributed? What Happens? What Changes? Cash 979,649 147,703 Total Beneficiaries 222 positive change in Time 45,804 1,783 Supported Organisations behaviour/attitude In-kind 274,983 119 Employees involved 266 developed new skills or increased Management 873,276 Funds Leveraged $378,575 personal effectiveness Costs $1,809,265 Foregone Revenue 23 improved quality of life/wellbeing

Across the membership in FY17/18, we saw: Across the membership in FY17/18, we saw: Across the membership in FY17/18, we saw: • 15.3% of employees are volunteering in • Members continue to be a catalyst for driving • That increasing the use of LBG social impact company time funding of $77M from third parties such as methodology has assisted members to capture • 49% of members offer workplace giving customers, government or their own employees more output and impact data. programs with 88% of these companies • Estimated revenue foregone for community benefit • Of those who have captured impact data on matching donations to some extent. was $139.5M up by more than $38M from 2017. their programs, 92% have reported a • In-Kind contributions have increased to 26% • 7,167,312 people benefitted from the activities of development of ‘new skill or increased personal of spend – at its highest % on record. LBG members. effectiveness’ on the beneficiary.

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

Review of previous year LBG submission Our recommendations for 2019 and beyond

IN REVIEWING YOU MOTIVATION CONSIDER SETTING AND PUBLISCISING TARGETS • Charitable donation has decreased as a proportion of total spend • Consider a review of activities to adjust proportions to be more in line with • Community investment has increased as a proportion of total spend global averages – target <20% charitable donation, c60% community • Commercial initiative has decreased as a proportion of total spend investment, <20% commercial initiative • Continue to work on the downward trend of charitable donations and seek more longer term strategic partnerships (community investments)

IN REVIEWING YOUR KPIs FOR HOW MUCH YOU INVEST CONSIDER SETTING AND PUBLISCISING TARGETS

In comparison to the previous year Consider how to strengthen the business case for your business to publicly • % of contribution against revenue is broadly unchanged commit to targets and be more closely aligned to global averages as follows; • % of contribution against profit is higher • 1.0% of pre-tax profit (average contribution) • Contribution per employee is higher • 0.17% of turnover (average contribution) • In addition, consider reviewing your data collection processes and if your reported contribution is a true reflection of your total contribution - has anything significant been missed?

MANAGEMENT COSTS MANAGEMENT COSTS

• Staff Salaries $ Benefits • Consider reviewing all the management costs to see if anything is being • Operating Costs – includes payroll giving costs missed and not accurately reflected in your reporting • Publicity & Communications • Staff Salaries $ Benefits – is this inclusive of all staff time (including SMT) • Payroll Giving Program – non-reported that is spent on community activities? • Operating Costs – does this include all reasonable operating costs (e.g. cost of managing volunteers) associated with your entire programme? • Publicity & Communications –does this include all reasonable communications costs? • Payroll Giving Program – have you included fees paid to an intermediary (e.g Good2Give) to manage your program or included staff time if managed internally?

ALIGNMENT & ROUTES TO IMPACT CONSIDER REVIWING YOUR ROUTES TO IMPACT

Company Focus Areas • Is your CCI strategy and your company focus areas aligned with the issues • It is clear what the strategic intent and resulting output and impacts are of material to your stakeholders? one of your current company focus areas • Have you consulted stakeholders on the issues you should focus on that are • However, 40% is currently being attributed to ‘’other’’ of most concern to them? • Is there a clear, articulated strategic intent or purpose behind your CCI strategy and each of all your focus areas? • Have you considered your company strategic objectives and aligned the intent of your community activities to deliver on some or all of them?

Contributions to indigenous communities Align to Recondition Action Plan (RAP) • Currently your reported contribution to indigenous communities has not • If your company has a RAP does your CCI reporting align? been reported and is therefore lower than the reported average for Australian businesses

Geography Geography • Current geographical breakdown apparently reflects current business activity Are contributions made in defined geographic areas reflective of where your company does business and generates revenue?

Sustainable Development Goals 2015 – 2030. . Regarding your top 3 activities by Align to SDGs spend; • Consider a review of current activities and a deeper alignment to SDG priorities and targets • Alignment to SDGs is good • Alignment to SDG indicators is good • No output / impact data aligned to SDGs

Output & Impact Data since previous year Output & Impact Data • Leverage has increased • Review current data collection to ensure all relevant output and impact data • Foregone revenue has increased is being captured and reported. • Output data remains broadly unchanged • Consider building capacity of flagship community partners to report more • Impact data has increased effectively output and impact data • Consider developing key output and impact measures to report against for some or all of your flagships partnerships • Consider building an impact evaluation framework against which your whole program can ne measured and assessed

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

ADDITIONAL INSIGHTS AND RESOURCES SDGs Corporate Citizenship has available a range of webinars and research papers Corporate Citizenship is pleased to refer LBG members to additional resources exploring the progress by business globally in responding to the UN’s global to gain further insights and information to build your community program. sustainable development https://corporate-citizenship.com/insight-type/sdgs/

LBG Annual Review for Australia and New Zealand 2018 Sustainable Sponsorship: Creating lasting commercial and social impact Annually LBG combines the reported data from all reporting members from Explores the value that can be obtained by business of sustainable sponsorship Australia and New Zealand together. This is provided alongside LBG data dating https://corporate-citizenship.com/our-insights/sustainable-sponsorship/ back to 2006. www.lbg-online.net/review2018/ Additional LBG Services LBG: Third Generation LBG for Community - LBG produces a global review of LBG each year and LBG: Third Generation, the by becoming an LBG certified community partner your global annual review for 2018, is available here www.lbg-online.net/2018/10/lbg- partners will be better able to report data back to you. They will share the same annual-review-2018/ principles of corporate community investment and speak the same language. Together you will be better placed to make the most of your investments. Please Business Investment for Social Impact ask the LBG team for more information.

Describes the planned innovation to the LBG framework extending it during 2019 LBG + Impact to include business innovation and social procurement. – Tailored LBG social impact methodology workshop to link your company’s strategic objectives to the community investment strategy, clarify the Corporate Community Investment – four routes to impact strategic intent of a key partnership and agree the impact measures that will be tracked over time Our recent research has determined there are four routes to impact;

1. Issue ownership – businesses that are targeted in their focus can create LBG+ Data – Hand over the analysis of data, records and documentation to us more tangible and measurable outcomes for specific beneficiaries in and we’ll take care of your data entry reporting identified areas of interest 2. Consolidation of activities – business that strategically consolidate the LBG + Your Story – Tell your social impact story with this bespoke collective impact of an array of programmes create a focal point for their communications package that matches good content with the right channels to employees and a clear narrative with which to engage stakeholders share how your program is making a difference. 3. Collaboration for amplification – business can amplify the scope and Please ask the LBG team for more information regarding these additional services depth of their impact by working in partnership inside and outside their sector, creating more sustainable outcomes and a vibrant space for knowledge sharing and innovation 4. Integration across the business – businesses can innovate to deliver solutions that achieve both business and social outcomes together through new products and services or ways of doing business

You can read more https://corporate-citizenship.com/our-insights/corporate- community-investment-four-routes-to-impact/

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

Contents

2018 CCI Insight Report: ...... 2 Where to next? ...... 2 A message from the LBG Team ...... 2 1. Analysing and comparing total contribution ...... 8 1a. Contribution as a percentage of pre-tax profit ...... 8 1b. Contribution as a percentage of total revenue ...... 8 1c. Contribution per full time employee ...... 8 2. How Vicinity Centres contributed ...... 9 2a. Contribution ...... 9 2b. Benchmarked ...... 9 3. Why Vicinity Centres contributed ...... 10 3a. Motivation ...... 10 3b. Benchmarked ...... 10 4. What Vicinity Centres supported ...... 11 4a. LBG subject focus areas ...... 11 4b. Benchmarked ...... 12 4c. Vicinity Centres company specific subject focus areas ...... 13 4d. Indigenous contribution ...... 13 5. Where Vicinity Centres contributed ...... 14 5a. Geographic spend ...... 14 6. Vicinity Centres management costs ...... 15 6a. Analysis of Vicinity Centres management costs ...... 15 6b. Management costs as a percentage of total contribution ...... 15 7. Leverage - facilitated third party contributions ...... 16 7a. Vicinity Centres leverage analysis ...... 16 8. Vicinity Centres employee involvement ...... 17 9. LBG Australia & New Zealand and Company headline performance ...... 18 10. The LBG Network ...... 19

1. Analysing and comparing total contribution

The three indicators represented below enable members to make a comparison of their total contribution against their sector and the reporting membership as a whole. The global average contribution is currently sitting at 1% of pre-tax profit, based on our most recent annual report. From next year, further insights will be provided in to global data.

1a. Contribution as a percentage of pre-tax profit

1b. Contribution as a percentage of total revenue

1c. Contribution per full time employee

2. How Vicinity Centres contributed

Breakdown of cash, time, in-kind & management costs. This breakdown of figures can be used to Inform management decisions about the future direction of community activity, to further understand how your community activity compares with peers and/or ‘best-in-class’ companies and to communicate results to key audiences.

2a. Contribution

2b. Benchmarked

Cash

Time

In-kind support

Management costs

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

3. Why Vicinity Centres contributed

Motivations matter. They are what drives a company’s CCI. The LBG Framework enables community activities to be classified according to three categories of motivation. This analysis provides an indication of the strategic nature of the community programme, shows the degree to which it is aligned with wider business goals and helps companies understand the extent to which they are driving their contributions OR are being driven by external demands and circumstances.

3a. Motivation

3b. Benchmarked

Charitable Donation

Community Investment

Commercial Initiative

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

4. What Vicinity Centres supported

The LBG model enables businesses to build up a picture of the issues that their community contributions tackle. These are broken up in to ‘LBG Subject Focus Areas’ and Vicinity Centres company specific focus areas.

The LBG Subject Focus Areas are broadly aligned to the main charitable purposes identified by national and international bodies such as the Australian and UK charities commissions and the US Internal Revenue Service.

4a. LBG subject focus areas

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

4b. Benchmarked

Education & Young People

Health

Economic Development

Environment

Arts & Culture

Social Welfare

Aid & Development / Emergency Relief

Other

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

4c. Vicinity Centres company specific subject focus areas

4d. Indigenous contribution

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

5. Where Vicinity Centres contributed

By collecting data from around its operations a business is able to build up a picture of the degree to which it invests in the different communities and locations in which it operates. This is particularly useful to assess the extent to which a company’s investment in the community reflects its geographic structure, i.e. is it investing in the areas in which it does business?

5a. Geographic spend

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

6. Vicinity Centres management costs

LBG Australia & New Zealand provides analysis of the management overheads associated with running a community investment program. Management cost categories include:

1. Staff salaries & benefits for corporate community investment staff 2. Operating expenses including overheads, research, evaluation and other CCI resources 3. Publicity and communications of community engagement including communications costs 4. Workplace giving programs costs

6a. Analysis of Vicinity Centres management costs

6b. Management costs as a percentage of total contribution

Number of staff dedicated to community investment

Vicinity Centres LBG member average 2.0 4.4

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

7. Leverage - facilitated third party contributions

Leverage is the capture of additional resources contributed to a community organization or activity that come from sources other than the company. Although these are in essence an additional input to the supported organization, they are reported on the output side of the Framework as they result from the company’s own contribution, encouragement or support. Leverage can be made up of cash, time or in-kind contributions.

7a. Vicinity Centres leverage analysis

Vicinity Centres Leverage total Value of leverage compared to Vicinity Centres's total contribution $378,575 17.4%

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

8. Vicinity Centres employee involvement

Employee involvement in a company’s CCI program is an effective engagement mechanism. Employees who feel the company they work for is socially responsible, and that the company values align with their personal values, are proven to be more engaged and have higher levels of job satisfaction.

Making a workplace giving contribution

Actively volunteering during company time

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

9. LBG Australia & New Zealand headline performance

Headline performance, LBG AU & NZ 2018 AUD$ 2017 AUD$ 2016 AUD$ Total contributions reported $279,746,608 $225,161,065 $236,350,742 Contributions per employee $1,063 $892 $831 Total contributions as a percentage of pre-tax 0.72% 0.61% 0.56% profit Total contributions as a percentage of revenue 0.18% 0.14% 0.14% Average % of employees volunteering in paid 15.3% 13.6% 13.6% time Total leverage reported $77,303,352 $81,625,811 $71,200,000

Vicinity Centres community contribution snapshot

2018 community contribution 2018 AUD$ 2017 AUD$

Total community contribution 2,173,712.46 1,632,401.07

Total Revenue 1,335,300,000 982,700,000 Pre tax profit or EBITDA 1,218,700,000 1,583,600,000 Company FTE 1,175 1,154 FTE dedicated to CCI 2 2 Estimated % of data captured 100 100

Cash 979,649 622,047 Time 45,804 24,264 In-kind 274,983 136,763 Management Costs 873,276 849,327

Charitable Donations 211,367 142,745 Community Investment 786,938 186,643 Commercial Initiative 302,131 453,685

Leverage (facilitated third party 378,575 276,325 contributions)

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

10. The LBG Network

The LBG network represents companies from across many sectors and geographies. This is reflected in the composition of Steering Group members, who advise and counsel on developments and direction. Their involvement enshrines the view of the practitioner in the delivery of LBG’s objectives.

Consumer Goods Citi Bankstown Sports Tideway FirstGroup AkzoNobel Credit Suisse Clubs NSW Unite Students Airport Decorative Paints CUA Experian Vicinity Centres Gatwick Airport UK CYBG plc Foxtel Willmott Dixon Go Ahead Bacardi Deutsche Bank Liberty Global Heathrow Bettys & Taylors of First Abu Dhabi Europe Retail Community Fund Harrogate Bank Mingara Leisure ASDA London City Britvic HSBC Group Aldi UK & Ire Airport Coca-Cola Amatil Intesa San Paolo Pearson Boots Airport Coca-Cola Investec RELX Group Coles Corporation Ltd European Partners LV= John Lewis Coca-Cola Maybank Pharmaceutical Inditex Ltd Hellenic National Australia Abbott Jéronimo Martins Yarra Trams Diageo Bank Ltd AbbVie Partnership Heineken España Nationwide Astra Zeneca Kingfisher Utilities and Japan Tobacco Provident GSK Marks & Spencer Services JT International SA Financial Myer Anglian Water JTI UK Prudential Professional The Co- Operative AGL Philip Morris RBS Services Group Australia Post International RSA Accenture The Southern Co- Centrica Management S.A. Santander UK Generali operative Deutsche Post Reckitt Benckiser Schroders JLL DHL Group St James's Place KPMG Sports DP World Engineering & Standard PwC Carlton Football EDP Manufacturing Chartered Simplyhealth Club Endesa BAE Systems Standard Life Cricket Australia Galp Energia Gestamp Aberdeen Property Geelong Football Gas Natural Hitachi Europe Suncorp Abertis Club Fenosa Jaguar Land Rover Teachers Mutual Acciona Hawthorn Football Iberdrola Michelin Bank BAM Construct UK Club Jemena Rolls-Royce UBS Berkeley Group National Grid Siemens UniCredit British Land Technology Port of Milford Stora Enso Oyj Zurich Ferrovial ARM Haven GPT Group BT Port of Tyne Financial Legal and Hammerson Deutsche REE Services Insurance Howard de Telekom AG Royal Mail ANZ Freshfields Walden Nokia ScottishPower Arab African Bruckhaus Management Optus SGN International Bank Deringer Limited Singtel Suez Aviva GMHBA Intu Properties plc ST Southern Water AXA ISS UK Microelectronics Thames Water Banco Santander Linklaters Land Securities United Utilities Bank of Ireland Pty Ltd Travel and Woodside Energy Bankinter Media & OHL Hospitality Barclays Entertainment Payce Australian Rail BBVA Australian Turf Shaftesbury Track Corporation Club Airport Corporation

*Members did not participate in 2018 benchmarking

LBG Australia / New Zealand Annual Company Benchmarking Report 2018

Contact details

Celia Fowler – LBG Client Manager E: [email protected] T: +61 (0) 3 8639 0548 W: www.corporate-citizenship.com Twitter: @CCitizenship LinkedIn: https://www.linkedin.com/company/corporate-citizenship

Jennifer Saunders – Associate Director E: [email protected] T: +61 (0) 3 8639 0548 W: www.corporate-citizenship.com Twitter: @CCitizenship LinkedIn: https://www.linkedin.com/company/corporate-citizenship

Simon J. Robinson – Director E: [email protected] T: +61 (0) 3 8639 0548 W: www.corporate-citizenship.com Twitter: @CCitizenship LinkedIn: https://www.linkedin.com/company/corporate-citizenship